SME Advisor ME - September 2012

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Issue 82 SEPTEMBER 2012 WWW.SMEADVISOR.COM

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LEADER OF THE PACK

Thoughts and insights on key characteristics of influential and successful business leaders

Key strategies SMEs should incorporate into their export plans

eBay for ideas

We look at a new social networking website born out of the UAE

The zone of tomorrow

We give a breakdown of the benefits of KIZAD, the rapidly growing industrial zone in Abu Dhabi

PUBLICATION LICENSED BY IMPZ

Publisher Dominic De Sousa

When the going gets tough...

Group COO Nadeem Hood

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s September descents upon the region two things consistently kick into place; the weather begins to cool down but the pace of business begins to heat back up.

Quarter four is by far the most intense, schedule packed, and gruelling four months any SME can enter. There are the obvious pressures of hitting those predicted end-of-year profits, as well as ticking off that ever-growing check-list of yearly targets, financial or otherwise.

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

1013 Centre Road, New Castle County, Wilmington, Delaware, USA

And who are we to try and be the exception to that trend? As outlined in previous Editorials over the last few months, we are mounting an events bonanza over the coming months, the first of which will be a trade related conference on September 26 th, tailored to the SMEs registered with Ras Al Khaimah Free Trade Zone.

It is our first stop along the Success Series trail this year, with three more to follow thereafter.

Each month we will select a different emirate and target a free zone in that emirate, so that we can advise as many SMEs across the UAE. Details of October’s event will be online shortly and will also feature in the October issue of the magazine so keep your eyes peeled for that.

Contained within the magazine this month are features ranging from advice on how best to take your business across borders, to insights on best leadership practices. We also highlight the opportunities available in the private sector for the growing number of enthusiastic Emirati entrepreneurs and advice to how best to nurture and grow this advancement.

For those SMEs thinking of utilising metrics (or indeed those who already do) as a tool to measure and drive performance, we break down the misuses of metrics and how best to avoid incurring negatives impacts from such an instrument. In addition, SMEs considering public-private partnerships (PPPs) should check out our coverage on page 44 of the recent study from Booz & Company that investigates this mechanism as a key to growing the region’s infrastructure.

Finally, for those of you planning to attend GITEX 2012 in October, take a look over our preview of this year’s event on pages 50 – 54. Among the new additions set to make its mark this year is the SME Zone, which will underscore the importance of SMEs and strartups in shaping the region’s technology industry.

Remember, if you haven’t already done so, enter your nominations for the SME Advisor Stars of Business Awards 2012, which is taking place 28th November. Due to popular demand, I have extended the deadline so do be sure to get it to us on time. All the details are at www.smeadvisor.com/awards2012 Until next month....

Mike Byrne Senior Editor

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

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SME ADVISOR Middle East

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Contents Issue 82 September 2012

Trade

20 | Going global Dr. Ashraf Mahate of Dubai Exports outlines key strategies that SMEs should incorporate into their exporting plans.

24 | Banking on Brazil

20

Aparna Shivpuri Arya gives us a closer look at how the South American nation is fast becoming one of the closest trade partners with the MENA region.

BANKING FOR BUSINESS

28 | Entrepreneurship

We analyse how banks and government agencies are taking steps to enable a new generation of Emirati business owners.

MANAGEMENT

30 | Glowing leadership John Lincoln of du shares his thoughts and insights on key characteristics of influential business leaders.

34 | Metrics Elias Mazzawi of EMS MENA explains how the misuse of metrics can impact your business.

Going global Key strategies SMEs should incorporate into their export plans

EDITORIAL BOARD 08 | Introduction

We present the SME Advisor Editorial Board for 2012.

Shoptalk

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

SME about town

16 | Events

A round-up of the key events being attended

by SME leaders in the UAE.

CORPORATE LIFESTYLE

18 | Executive trends

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

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SME ADVISOR Middle East

ENTREPRENEURSHIP

38 | eBay for ideas

Joumana Saad speaks to Shabbir Adamji, Founder of GoMadInc.com, a new social media that aims to encourage entrepreneurial and innovative thinking.

LEGAL

40 | Ease and access Georges Daoud of Al Tamimi & Co. examines the benefits and opportunities for SMEs at Abu Dhabi’s Khalifa Industrial Zone Abu Dhabi (KIZAD).

INDUSTRY WATCH

44 | The promise of PPPs A recent study by Booz & Company identifies public-private partnerships as a key mechanism for developing the region’s infrastructure.

46 | Most livable cities Abu Dhabi, Dubai and Sharjah are named the top three Arab cities to live in, according to a Bayt.com survey.

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28

34

48 | Balancing act A new survey from Regus shows how fewer days commuting can bring big benefits to employers and staff alike.

GITEX

40

TECHNOLOGY FOR BUSINESS

56 | Tech news

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

Sign off

50 | Trade show time

62 | What’s next?

We bring you pre-coverage of GITEX Technology Week 2012, the region’s largest ICT-focused event.

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

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SME ADVISOR Middle East

September 2012

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EDITORIAL BOARD 2012

SME ADVISOR

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

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

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

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

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July 2012 SME ADVISOR Middle East September 2012 SME ADVISOR Middle East

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

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

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

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

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

Alexander Blass

John Lincoln

President and CEO, Alexander Blass International

Vice President, Enterprise Marketing, du

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

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

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

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

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

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

Ghada Audi

Abdulmuttalib Al Hashimi

Head Of Disputes Resolution, Fichte & Co

Founder and Managing Director, Next Level

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

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

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

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

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

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

SME ADVISOR Middle East July SME ADVISOR Middle East September

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shoptalk

SME 100 companies offered valuation services

UAE

DIFC Authority undergoes restructuring

T

he Board of Directors of the Dubai International Financial Centre Authority (DIFCA) recently announced changes to its structure and its senior management team responsible for the implementation of DIFC’s growth strategy. DIFCA’s mediumterm goal is to build on the centre’s successful performance to date and double its scale as a global financial hub. The Board has therefore decided to segregate its two core functions into two independent entities. The business development and legislation arm will remain named DIFC Authority, and will be responsible for developing DIFC’s international relations with the world’s other leading financial centres and further strengthen the Centre position globally; and DIFC Properties will manage the centre’s real estate portfolio and responsible for delivering DIFC’s Master Plan.

The reorganisation is effective immediately.

Jeff Singer will serve as CEO of DIFC Authority and Nabil Ramadhan will be Acting CEO of DIFC Properties. They report to the Board of Directors of DIFC Authority.

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Together they will implement DIFCA’s growth strategy to raise the number of DIFC’s membership which currently stands at 860 active companies, increase the number of people working at DIFC to an estimated 25,000 people, complete the remaining development of the 110 acre site, ensure the centre continues to be supported by efficient and reliable infrastructure, and continue to enhance DIFC’s international reputation as a global financial hub.

In making the announcement, HE Abdul Aziz Al Ghurair, Chairman of the Board of Directors of DIFC Authority, said: “For the last three years, Abdulla has worked diligently to ensure that DIFC continues to grow despite the global economic backdrop.

As an advisor to the board of DIFC Authority, we will be able to leverage his valuable experience at the centre. Going forward, our goal is ambitious but achievable. We plan to double DIFC’s scale in terms of the number of member companies and their employees. We also plan to develop the centre’s function and reputation as host to international capital markets.”

Dubai SME and SHUAA Capital, a provider of corporate finance advisory services in the UAE, have signed a Memorandum of Understanding (MoU) to offer valuation advisory services to a select number of Dubai SME 100 companies.

HH Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of SHUAA Capital, commented: “Access to capital remains a perennial challenge for many SMEs, including successful and well managed companies. In the current corporate environment, in which SMEs are facing enourmous challenges but also big disadvantages, our aim is to provide entrepreneurs with competent and applicable knowledge that will help them achieve future business success.”

According to data from Dubai SME, SMEs are around 95% of registered businesses in Dubai and contribute over 40% to Dubai’s GDP and account for 42% of employment, but represent only 4% of bank lending. For banks and financial institutions, SME financing involves important strategic decisions as it underpins the growth potential of the company, whatever its stage of development.

The SME 100 is a premier ranking of the 100 top performing SMEs in Dubai, launched by HH Sheikh Ahmed Bin Saeed Al Maktoum in March 2011 to identify promising SMEs and act as a platform and catalyst for them to become bigger, better and sustainable enterprises; eventually graduating them to large globally-oriented companies.

The ranked SMEs resemble an attractive investment pool for investors. The combined turn-over of the top 100 SMEs is estimated at AED 2.3 billion, their total assets worth AED 1.4 billion, and net profit standing at AED 220 million.

The top 100 SMEs also represent a combined workforce of 4,319 people.

The valuation advisory service will help these companies understand the underlying value of their businesses. Based on pre-defined corporate finance valuation methods and robust advice, it will help business owners and their management teams understand the drivers that define business value. The services will also identify gaps that require management’s attention and highlight important changes that businesses need to make in order to enhance access to capital from banks and other sources, such as equity and debt capital markets.

The services offered are designed to help SMEs understand better and improve their business and achieve their growth plans. The service will give SMEs the tools to institutionalise their companies and, ultimately, help them improve and grow.

L - R: Abdul Baset Al Janahi, CEO of Dubai SME and HH Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of SHUAA Capital, during the signing ceremony

UAE

Hawkamah and AUB chair announce partnership

Dr. Nasser Al Saidi, Executive Director of Hawkamah and Co-Chair of the MENA-OECD Working Group on Corporate Governance

H

awkamah, the Institute for Corporate Governance and the American University of Beirut’s Rami Makhzoumi Chair recently announced a partnership aimed at supporting the further development of good corporate governance practices in the region.

Under the terms of the Memorandum of Understanding (MoU), the two bodies will collaborate to raise awareness of corporate governance and will launch joint Hawkamah – Rami Makhzoumi Governance Seminar Series and workshops, the first one being the Chairman’s Forum session to take place on the 31st of October 2012. The collaboration

will also support research efforts into corporate governance in MENA highlighting regional case studies and success stories. The collaboration also includes a Hawkamah supported internship programme.

Fouad Makhzoumi, a founding member of the Chair said: “It is a great pleasure to start witnessing the achievements of the Rami Makhzoumi Chair in Corporate Governance. The partnership with Hawkamah makes us even more confident that the path taken by the programme so far and the set plans for the coming years will achieve the objectives that we targeted and which go beyond promoting the practice of sound governance across companies of the region, instituting the cornerstones and pushing adoption of family governance and succession planning forward, and creating a governance-oriented approach to business conduct.”

“This partnership is an exciting development to corporate governance in the region as it brings together the advocacy and industry expertise of Hawkamah and the academic rigor of the Rami Makhzoumi Chair on corporate governance at AUB,” said Dr. Nasser Saidi, Executive Director of Hawkamah, the Institute for Corporate Governance. “The combination of practical and applied research along with broad and deep understanding of

the challenges to good corporate governance practices in the region are the strengths of this partnership,” added Dr. Saidi.

Dr. Assem Safieddine, Director of AUB’s Corporate Governance programme said: “The Hawkamah and Rami Makhzoumi Chair at AUB partnership emerges to strongly complement the achievements and ongoing initiatives undertaken by AUB in particular to bring corporate governance research and practices in the region to a new level. Given their respective exposures to governance in the region, Hawkamah and AUB will ensure that the partnership establishes a solid bridge between much needed research on governance issues in the Middle East and the dissemination of best practices and research outcomes to those who will be in charge of implementation at all company levels; it will be a way to empower them with the knowledge to become champions of corporate governance.”

The Rami Makhzoumi Chair is devoted to promoting accountability and good corporate governance practices in the administration and operations of businesses. The Chair has a research and case studies development agenda that aims at highlighting the best practices in corporate governance demonstrated by companies in the Middle East region.

DED sees 17% rise in Q2 licences The total number of trade licences issued by the Dubai Department of Economic Department (DED) during the second quarter of 2012 reached 4,499, marking a 17% increase from the 3,859 licences issued over the same period in 2011.

More licences were issued in the commercial, professional, tourism and industrial categories reflecting a growing interest in investing and doing business in Dubai.

“The tourism sector accounted for the largest increase (51%) in business licences during the AprilJune 2012 period. Professional licences increased by 19% and commercial licences by 16% during the same period,” said Mohammed Shael Al Saadi, CEO of the Business Registration and Licensing (BRL) division at DED.

At the same time, commercial licences accounted for 73% of the total licences issued, followed by professional (25%).

The remaining two per cent was equally split between the industrial and tourism sectors.

Amended licences increased 11% in the second quarter.

DED’s total transactions relating to business registration and licensing reached 158,174 during the second quarter of 2012, an increase of 22% year on year. Reserved trade names increased 35% to 17,385 while initial approvals touched 8,068, an increase of 28%.

“The Intelaq licences for homebased businesses and professional activities grew three per cent year on year and the increase was up to 60% in the professional services category,” Al Saadi added.

Commercial licences under Intelaq dropped 17% but this was mainly due to recent rearrangements made in licence provisions, wherein Intelaq licences are handled by Dubai SME. The total number of commercial activities licensed in the second quarter was 12,236, with general trade leading the list of the top ten licensed activities (535 licences) followed by dyes & paints (433), both showing a four per cent increase.

Tiling of floors and walls (414); carpentry and flooring (408); sanitary extensions & wares (395); installation of air conditioning systems, ventilation and air purification (381); Installation of suspended ceilings and light partitions (368) and readymade garments (314) come next in the list.

The number of professional activities licensed reached 3,133 in the second quarter with residences & building cleaning services leading the list of the top ten licensed activities with 277 licences - an increase of nine per cent, followed by restaurants (133), sewing and embroidery.

SME ADVISOR Middle East

September 2012

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shoptalk UAE

SME winners reap Emirates rewards

T

he Dubai Chamber of Commerce and Industry has announced the winners from SME companies participating in the Emirates Business Rewards promotion on its website (www.dubaichamber.com). The joint reward programme came as part of Dubai Chamber’s strategy to support its members to explore untapped markets of the world alongside Emirates’ efforts to offer an exclusive benefit to its SME customers who book their corporate travel with the airline.

The participating companies that won 500,000 bonus air miles each are Wesley International Ltd, Bertoni Group LLC,

Optimum Building Materials LLC, Markwood Intertrade DMCC and Al Fahya Aluminium Factory LLC. Atiq Juma Nassib, Senior Director, Commercial Services Sector, Dubai Chamber, stated that the joint promotion with Emirates Airline shows the chamber’s commitment in offering value added service to its over 135,000 members which will directly help them in sourcing new products while building new business contacts globally.

He further stressed that the joint business reward programme with Emirates airline served the common goal of both organisations to cater to the needs of the business community while also promoting Dubai as a strategic business destination in the world. “The programme also came under Dubai Chamber’s new strategy to help its members explore high growth markets as well as enhance their competitiveness in the global business arena,” he said.

This latest programme follows a series of initiatives launched by Dubai Chamber, including a health insurance scheme for members as well as the provision of services by the Ministry of Foreign Affairs and Dubai Municipality at its head office, besides the organising of outbound trade missions to

promising global markets, like Ethiopia and Surat in India.

Badr Abbas, Vice President of Commercial Sales (UAE), Emirates Airline said: “With such a vast network of members our partnership with Dubai Chamber continues to be a very important tool in helping SMEs in the UAE to maximise their corporate travel benefits. Our Business Rewards programme provides this fast growing segment with a way to benefit from essential employee travel and we look forward to maintaining our working relationship, for the benefit of Dubai Chamber’s members and their employees.”

Since its launch in 2008, the programme has garnered a substantial number of SME members in the UAE. The programme offers SMEs, defined as an organisation with less than 80 staff, a unique way to interact with and be recognised

by Emirates for their loyalty towards the airline.

As part of its re-launch, the programme now has a new, streamlined look-and-feel to the website enabling easy booking and account management and the introduction of Business Rewards sites in French, German, Spanish, Italian, Chinese, Japanese, Korean and Portuguese, which make the programme accessible to the airline’s global SME clients.

Setup snapshot: Ras Al Khaimah Atlas Corporate Services Group has released its research findings conducted to review and establish emerging patterns in company formation. Its research finds that company formation activity of Ras Al Khaimah International Companies (RAK ICs) has doubled in the past six months, when comparing the period Q3/4 2011with Q1/2 2012. This makes it the company’s most popular structure for foreign companies looking for an offshore business presence linked to the UAE. Established in 2006 and regulated by the RAK Investment Authority, RAK ICs offer attractive features such as 100% foreign ownership, 100% repatriation of capital and profits and zero taxation. RAK also offers a strategic location as gateway between Asia, Africa and Europe, offering investors easy access to a range of established and emerging markets. Furthermore, RAK ICs can be incorporated in as little as 72 hours and are cost effective, requiring a minimum share capital of AED 1,000. The combination of these factors combined with the political stability of the UAE is believed to have contributed to their ongoing popularity; RAK ICs provide an ideal vehicle for international businesses wishing to take advantage of the favourable taxation environment in the UAE, but who do not wish to trade with companies within the UAE. RAK is located at the northern most tip of the UAE, and has a population of approximately 250,000, which is expected to grow to 400,000 by 2017. Rapid development of the Emirate, notably driven by the creation of the award-winning RAK FTZ (Free Trade Zone) in 2000 and ongoing expansion of the RAK International airport has contributed to the growth of a robust local

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and expatriate commercial hub. As the Emirate develops further and gains greater international visibility, appetite for RAK companies is predicted to grow further.

Paul Hymers, Finance Director of Atlas Corporate Services said: “RAK ICs have always been popular with our client base. However, we attribute this spike in formation to the growing credibility and awareness of the strength of Ras Al Khaimah as an international business hub, and the improved infrastructure both within the RAK (Free Trade Zone), and accessibility with the rest of the Emirates. We expect this figure to grow again for the period Q3/Q4 2012, and will continue to recommend RAK companies strongly to all our international business clients. We at Atlas Corporate Services feel that RAK represents the future of company incorporation in the UAE at this current time.”

shoptalk KSA

Growing Saudi Arabia’s tourism sector

BAHRAIN

Bahrain’s tourism outlook

T

he recent launch of the USD 40 million Holiday Inn Express Bahrain, the Kingdom’s first limited service hotel, is indicative of the growing opportunities in Bahrain for the travel and tourism sector over the coming decade.

The investment has been made by Dubai International Capital, the international private equity arm of Dubai Holding, through its majority owned vehicle Ishraq Gulf Real Estate Holding Company. Ishraq is an experienced developer and operator of Holiday Inn Express hotels across the GCC, focusing on price-conscious business and leisure travellers.

Located along the commercially important Exhibition Road, the 274 room hotel is close to Bahrain International Airport as well as the King Fahd Causeway, Bahrain Financial Harbour, key diplomatic facilities and shopping centres.

Maissan Jalal Al Maskati, Chairman of Ishraq Gulf Real Estate Holding and Managing Director of Dubai International Capital, said: “Bahrain has been and continues to be an attractive tourism and hospitality market. In fact, our decision to make such a substantial investment was driven by our long-term confidence in the market’s historically healthy occupancy levels and hotel rates, coupled by a sophisticated consumer base that demands a high quality limited service product. Further to the launch of four Holiday Inn Express hotels in Dubai, we are now delighted to be here and to have chosen Bahrain to launch our fifth and newest location. We look forward to building on this success and continuing to evaluate new investment opportunities in Bahrain in the future.”

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A recent research report published by the World Travel and Tourism Council forecasts that the direct contribution to GDP of travel and tourism is set to grow by 3.7% per annum between 2012 and 2022 to BHD 769.4 million (USD 2.04 billion). Coupled to this is the expected growth in employment within the sector, from approximately 27,500 jobs in 2011to 36,000 jobs in 2022.

In 2022, travel and tourism investment is expected to top BHD 326.1 million (USD 865 million) compared to BHD 205.5 million (USD 545 million) in 2011.

Such investment will play a key role in attracting the forecasted annual visitor figures to over eight million arrivals in 2022; in 2011 foreign tourist arrivals neared five million. Business travel spending in Bahrain is also forecast to rise to BHD 169.3 million (USD 449 million) in 2022.

Commenting on the future of the Bahrain tourism and investment in tourism, Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive of the Bahrain Economic Development Board (EDB), said: “It is very encouraging that the Holiday Inn Express has opened up in Bahrain and we welcome them to the Kingdom. This represents a significant investment and is an indication of the faith in the strong fundamentals and growth prospects of the Kingdom. This type of limited service hotel is a reflection of the increasingly cost conscious business and leisure traveller, and it is important that Bahrain is able to maintain a strong offering for the increasing number of people who travel to Bahrain for work and as a holiday destination.”

The tourism industry has accounted for 3.2% of Saudi Arabia’s total GDP in 2011, as well as 7.1% of non-oil GDP and 11.8% of private sector GDP, according to recent figures released by the Saudi Tourism Information and Research Centre (MAS). The total value of the tourism industry in 2011 was estimated to reach SAR 59.5 billion, increasing by 6.8% from SAR 55.7 billion in 2010, and is forecast to further increase in 2012 driven mainly by an expected 5.3% increase in inbound tourists reaching 18.42 million this year.

To support the sustained growth of the tourism sector, Saudi Arabia is expected to channel more investments for qualitative improvements and to further diversify the range of tourism products and services. Hospitality investments are particularly gaining momentum, especially in the key cities of Makkah and Madina. Investment companies such as Abdul Latif Jameel Real Estate Investment Co. (ALJREIC) are taking the lead in infusing fresh investments into the tourism industry, particularly in the hospitality sector to cater to the expanding needs of citizens, visitors and pilgrims. One of the key development initiatives being undertaken

by ALJREIC is the Jabal Al Kaaba project, which is expected to add more than 8,000 hotel rooms to the market over the next few years under the Anjum Hotels brand.

Yousef Abdul Latif Jameel, Chairman of Abdul Latif Jameel Real Estate Investment Co., said: “We are enthusiastic about the robust growth outlook of the tourism industry in Saudi Arabia, which registered a 6.8% increase to reach a value of SAR 59.5 billion in 2011. With the number of tourists in KSA rising each year, particularly during the pilgrimage seasons, the tourism industry is certainly on track to further increase its contribution to the national GDP.”

SME About Town

ADCB to sponsor 2012 Emirates Woman Awards

T

hrough its partnership with INSEAD Abu Dhabi, and with the creation of the ADCB Ambition Award, the bank once again reaffirms its commitment to supporting the ambitious goals of women in the United Arab Emirates (UAE).

Celebrating the success of women in the UAE, the Emirates Woman of the Year Awards celebrate women from all walks of life. From the ambitious woman looking to start her own business, to the women who have excelled in their fields, these awards are an annual reminder of the contribution women make to the development of their communities and their active contribution to the economy.

“At ADCB we understand what ambition means, we understand the hard work and determination it takes for women to go about starting their own businesses, take on leadership positions and work to improve their communities,” said Nadia Khalid Abdulrahman, Head

UAE observes Customer Service Week with conference

Customer Service Week 2011 featured a wide variety of customer service oriented companies, several of whom were rewarded for their efforts.

The UAE Customer Service Week 2012 will run at the same time that Customer Service Week is to be celebrated in the UK, US, Australia and Canada. The ultimate aim of the event is to drive an annual Customer Service Week in the UAE and help build a customer service community in the country, promoting customer service excellence across the region.

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SME ADVISOR Middle East

The four-day event will cover the key drivers needed to enhance the customer experience in the region and allow attendees to benchmark a variety of sectors (banking, finance, healthcare, retail, government, hospitality, utilities, airports, telecom and tourism) both regionally and internationally.

of Corporate Credit & Credit Operations, ADCB. She added: “It is with this in mind that we created the ADCB Ambition Award, in association with the Emirates Woman of the Year Awards, an award that celebrates and recognises the important role women play in the development of the UAE economy and indeed their effort to enrich their communities.”

Sophia Serin, Senior Editor of Emirates Woman magazine, commented on the association: “We are thrilled to have ADCB partnering with us again to uncover, recognise and honour the inspiring women that shape our nation.”

The nominations are now open for the ADCB Ambition Award in association with INSEAD. The Award calls for ambitious women with an entrepreneurial spirit and great business idea. The closing date for the ADCB Ambition Award has been set for 20th September. Further information and next steps for entry can be found at www.emirateswomanawards.com.

Candidates who enter have a chance of winning USD 10,000 from ADCB to go towards their business, business advisory support from ADCB with dedicated relationship management, a place on one of INSEAD’s entrepreneurial electives, which is part of the INSEAD Global Executive MBA, AED 2,000 worth of shopping vouchers from BurJuman and a year subscription to Emirates Woman. This year’s Emirates Woman of the Year Awards will take place on the 19th November, with over 350 VIPs attending the event.

Speakers at the event include, Robert Keay, Managing Director of Ethos Consultancy, who is organising the event; Philip Forrest, President of The International Customer Service Institute (ICSI); His Highness Lt. Gen. Sheikh Saif Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior; Belal El-Banna, Customer Service Director at Xerox Emirates, among others.

“With economical disruption fundamentally altering business reality, organisations and businesses are moving towards a new economic landscape.

And as this new fiscal and commercial reality emerges, the UAE must re-examine conventional wisdom about how to succeed. Customer and citizen-centered service quality has never been more fundamental,” says Robert Keay. By positioning excellence in customer service as a competitive differentiator and sustained value driver, businesses can intensify the customer experience, reinforce ongoing customer loyalty and

maintain healthy profitable growth.

“Customer Service Week is about bringing challenging topics to the surface and

discussing them. We’ve lined up local and international thought-leaders to present at the Customer Service Week conference and hold workshops,” Keay added.

UAE Customer Service Week 2012 will run from 30th September to 3rd October in Abu Dhabi.

Abu Dhabi to host regional SME forum

T

he 3rd Middle East SME Forum will bring forth industry leaders to share their successful experience and address the audience with the updated information, policies and SME supported ventures. Best practices in developing a thriving SME culture will be discussed by Alexandar Williams, Director: Strategy & Policy, Dubai SME. The topics will focus on inculcating and developing entrepreneurship qualities at an early age to understand and identify potential business ideas and cope with challenges that may intervene.

To boost SME development across the region, a joint collaboration of governing entities and the private sector is crucial, thus the need of institutionalising a dedicated government agency to champion SME development with a focused, executable SME development plan will also be addressed.

Dr. Adeeb Mahmoud Al Afeefi, Director of Foreign Trade and Export Support, Abu Dhabi Department of Economic Development, will explain how exports can contribute to a company’s and nation’s growth by addressing Exports & Re-Export Trade.

The forum will gather more than 150 participants comprising of entrepreneurs, commercial banks, government support institutions, equity firms and management consultants to highlight the awareness and significance of education, innovation and facilitating entrepreneurs with the platform to do business. Over 21 presentations will be enriched by six panel discussions during the two-day forum.

Presentations, discussions and case studies will touch SME ecosystem in the Middle East environment, challenges and opportunities towards business start ups and also best practices and successful stories in the region’s SME sector.

Ahsan Ali, Director, Credit & Operations, Khalifa Fund for Enterprise Development and Abdullah Al Jufaili, General Manager, SHARAKAH, Fund for Development of Youth Projects (SAOC), will discuss Access to Finance & Capital Management for SMEs. This panel discussion session is an open discussion where each panel member will stress on the challenges SMEs still face in securing credit finance to their business. A panel discussion on Ongoing Government & Private Sector Initiatives towards SME Development will brainstorm ideas on coaching, resource gathering and other

amenities required to ensure sustainability and profitability across all SMEs. This session will analyse the current SME situation in Middle East and evaluate methods of sustainability through profit generation in the future times.

Panellists include: Essam Disi, Senior Manager, Policy Formulation: Strategy & Policy Department at Dubai SME; Najla Al Midfa, Senior Manager, Entrepreneurship Development at Khalifa Fund

for Enterprise Development; and Fahad A. Al-Semari, Managing Director: Saudi Aramco Entrepreneurship Center Company (Wa’ed), Saudi Aramco.

For more information about Fleming Gulf, please visit http://www.fleminggulf.com/

UAE accelerator programme announced Innovation 360 has announced the launch of the i360accelerator programme targeting entrepreneurs in the UAE. The organisation’s founder is also the co-founder of Innovation Machine the event facilitator behind several regional Startup Weekend events. “Our goal with i360accelerator is to bridge the gap between innovative ideas and commercialisation in the Middle East. There are many creative people here with great ideas, but most ideas never launch because people don’t have early funding, they don’t know how to form a team, and they don’t have any experience in building or running a business. i360accelerator will help them overcome these obstacles, and turn their ideas into business ventures,” said Kamal Hassan, Founder and CEO of Innovation 360.

Hassan hopes to host several i360accelerator sessions per year, with the first session beginning in November in Dubai and additional sessions in 2013 for Abu Dhabi, Beirut and Amman. The theme of the November session will focus on “Digital Technologies for Customer Experience,” which received 38% of the vote during a recent online competition where people were invited to vote for the theme of the first accelerator session.

Other themes in the contest included Mobility and Healthcare (22% of the vote); Disruptive Social Change through Technologies (18%); Future Transportation and Logistics Technologies (12%); and Emission Trading Technologies (10%).

The inaugural session is scheduled to begin in November 2012. In addition to offering participants a creative place to meet and work, i360accelerator provides training on entrepreneurship and innovation, mentorship from regional business experts, and AED 70,000 in seed funding.

To apply for admission to i360accelerator, innovators, young entrepreneurs, researchers and others with a business idea must attend a one-day Innov-a-thon event and pitch their idea to the audience. The best ideas selected by the event attendees can be nominated for i360accelerator and will potentially win their share of a AED 3500 prize. Innov-a-thon events are scheduled for 8th September and 20th October in Dubai.

SME ADVISOR Middle East

September 2012

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CORPORATE LIFESTYLE

Green Ferrari

The new F12 Berlinetta delivers high performance for a naturally aspirated 12-cylinder engine in terms of both power and revs. It has a horsepower of 720, while its specific power output is 118 CV/I, a record for this kind of engine. Responsiveness and strong pick-up are assured by a maximum torque of 690 Nm, 80% of which is already on tap at 2500 rpm.

The model is also high on effiency, as its fuel consumption and emissions have been slashed by 30% to 15 l/100 km and 250 g.km of CO2. Aesthetically, the F12 Berlinetta appears shorter, lower and narrower than the previous V12 Coupe.

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

Haute watches

Custom luggage

Rimowa is now offering made to measure car luggage sets especially for BMW (5 series and 7 series), Audi (A6 and A8) as well as for Mercedes (E and S class).

Each of the exclusive sets is perfectly tailored to the standard empty car boot of these models. Just like a jigsaw puzzle, the famous aluminium cases with the grooves can be stowed in such a way that the volume of the car boot is used and filled out ideally.

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SME ADVISOR Middle East

Dolce & Gabbana has released its first men’s watch collection inspired by classic dress watches and high performance chronographs.

The Dolce&Gabbana haute horlogerie watches reflect the brand’s world-renowned aesthetics.

Elegant, refined and at times flamboyant, the watches have been designed by Domenico Dolce and Stefano Gabbana themselves. The movement on the other hand, is also in keeping with the brand’s research of the highest quality materials and know how, as they are engineered, constructed and assembled in Switzerland.

Pieces in the debut collection contain 18 carat gold casings and straps as well as cut gems such as diamonds, rubies, sapphires and emeralds.

High tech notetaking

The new Samsung GALAXY Note 10.1 comes equipped with intuitive features and capabilities, to elevate creativity and productivity, such as side-by-side multi-tasking with the device’s Multiscreen feature on a 10.1-inch large screen.

Users can use Multiscreen to browse the web on one half of the 10.1 inch display, and create detailed sketches or take notes on the other half using the accuracy and sensitivity of the S Pen. Samsung’s unique S Pen is optimised for the creation of personalised and expressive content in the most natural and intuitive way, including through a variety of S Note templates and productive tools; and Adobe’s premium creative application Photoshop Touch. Seamless multitasking, high-standard graphics, and blazingfast performance without any lag are essential features of the GALAXY Note 10.1. The device also includes a 5-megapixel main camera and a 1.9-megapixel front-facing camera.

Wellness companion

For health enthusiasts looking to track their performance, these new offerings from Body Media come with some very cool interative features.

The Body Monitoring Armband with Bluetooth wireless technology can communicate directly with a SmartPhone app to provide real-time, up-to-the minute streams of information. Users can view their dashboard and see realtime caloric burn and activity data to evaluate how they are tracking against daily goals. The LINK Armband puts valuable health information at the users’ fingertips for an added motivation to stay on-track. This gadget works with an online tool and free downloadable apps, and is slightly smaller than the other Armband products.

A cut above

This striking folding knife from William Henry features an inlay of the natural wood from a Horse Chestnut tree planted

by George Washington. The two precision cut citrine gemstones are set into 18 carat gold bexels on the button lock and the knife guard. The blade is forged in Damascus steel and coated in black tungsten carbide for superior wear resistance. Fittings and fasteners are custom fabricated from stainless steel and titanium.

Quality craftsmanship This unique leather case by Vaja has an exquisite top-stitch over the two tone accents and detailed craftship. The Agenda leather case (USD 220), designed for the new iPad, is a portfolio-style case with padded cover and hidden magnetic sleep-wake function. It opens horizontally, like a book, and features two landscape positionsl a low-angle for typing, and using the hidden magnetic stad for video viewing. The case also offers open access to all ports and controls. The case can be customised to over 32 colours.

SME ADVISOR Middle East

September 2012

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Trade

Dr. Ashraf Mahate of Dubai Exports outlines key strategies SMEs should incorporate into their export plans.

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SME ADVISOR Middle East

E

Dr. Ashraf Mahate Dubai Economic Department (DED)

xporting offers a company numerous benefits and opportunities. The massive restructuring of political boundaries, the opening of new consumer markets, historic trade agreements, abolition of quotas, and the World Trade Organisation (WTO) have created unprecedented opportunities for businesses to export. Any exporter stands a much greater chance of success if, as a first step, they start thinking about their objectives in terms of what to export, where to export, and how to export.

Lack of a definite set of goals or objectives will lead to dissipation of efforts in a wrong direction and a waste of resources. The objectives need to be realistic and should take into account the existing situation of the market and the exporter’s position in the market and competition.

The objectives should be neither too ambitious, nor too modest. The objectives should not be modified constantly if the same is not attained in the target period.

Efforts should be intensified and resources should be redirected effectively to attain an objective in time. The decision to export is only one part of the equation and successful exporting requires the SME to be aware of a number of aspects.

Export pricing

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A common mistake that exporters tend to make is that they convert their domestic price into the foreign currency. It is important to remember that foreign products compete with domestically produced goods and therefore price is an important consideration. This is more so the case where consumers are price sensitive.

Even though consumers may be willing to pay a premium for quality products, it may not be as large as the home country.

There is no fixed simple formula for successful export pricing. It differs from exporter to exporter depending upon the good or service in question and the level of customer loyalty that it can attract.

Therefore, the importance of accurate export pricing cannot be over-emphasised as any error in this area can lead to either losing foreign orders, or the possibility of making losses. Moreover, export pricing can be an important tool for promoting sales and competing in the international arena. The important factors that determine the foreign price of a good or service are cost, demand and competition.

In the case of cost, one needs to ensure that all costs, including those incurred in the foreign country, are incorporated into the final price. At the same time, the exporter needs to be aware that their product or service is competing with other products and services from all over the world. Therefore, the price has to be realistic while ensuring that the exporter receives an adequate return for conducting business in a foreign location.

There is no fixed simple formula for successful export pricing. It differs from exporter to exporter depending upon the good or service in question and the level of customer loyalty that it can attract.

Target market

One of the most important decisions that an exporter needs to make is to select the correct foreign market for their goods or services. Selecting the correct market can lead to immediate success; while an incorrect market can lead to substantial losses and also long-term damage to the company’s operations.

Therefore, appropriate foreign market selection is an important challenge for the exporter and cannot be left simply to subjective decision making. In order to select the correct foreign market, an exporter needs to go beyond personal preferences and intuition. The process of market selection requires the exporter to undergo three essential steps, the first being data collection, where the most recent information on potential export markets is obtained.

Secondly, the exporter needs to make appropriate comparisons between the different markets. Finally, an exporter needs to appreciate that they cannot enter every single market at the same time and needs to prioritise markets based on current resources and market potential.

Entry strategy

Firms seeking to export their products or services into foreign markets have a number of different types of agents and distributors.

Commissioned agents

They act as brokers, who link an exporter’s product with a foreign buyer. Usually, the agent does not fulfill the orders, but passes them to the exporter for acceptance. These agents can sometimes assist with export logistics such as packing, shipping and export documentation.

Export management companies (EMCs)

EMCs act as an exporter’s off-site export department, representing the exporter’s product to potential foreign buyers. The EMC searches for business on behalf of the export firm and takes care of all aspects of the export transaction.

Hiring an EMC is often a viable option for smaller exporters who lack the time and expertise to break into foreign markets on their own. An EMC provides a range of services from negotiating export contracts to providing after-sales services. Usually, EMCs operate on a commission basis, however, some take title to the products they sell and make a profit on the mark-up.

Export trading companies (ETCs)

ETCs perform many of the functions of EMCs. However, they tend to be demand-driven and transaction-oriented, acting as an agent between the buyer and seller. Most ETCs will take title to your goods for export and will pay your company directly.

This arrangement practically eliminates the risks associated with exporting. However, the exporter needs to make sure that appropriate checks are made regarding the ETC. More often than not, and ETC can be a good source of export opportunity.

Contract

A written contract helps to solve disputes that may arise during the execution of a business transaction ensuring that the rights and duties of the parties involved in the trade deal are safeguarded.

SME ADVISOR Middle East

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

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

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

Therefore, to guarantee the smooth running of the business transaction, it is necessary to draft the contract carefully by including comprehensive and precise terms and conditions on all important aspects of the trade deal.

The obligations arising out of a contract for the sale of goods might differ according to the law which will apply to the contract. For this reason, some internationally accepted contracts and forms have been prepared by the United Nations (UN) and the International Chamber of Commerce (ICC).

Selecting these forms, make it easier for the exporter to handle the contractual part of export and avoid conflicts

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

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

Hiring an EMC is often a viable option for smaller exporters who lack the time and expertise to break into foreign markets on their own. An EMC provides a range of services from negotiating export contracts to providing after-sales services.

of law that are always cumbersome. The International Chamber of Commerce (ICC) has developed standard terms of delivery (Incoterms 1990) which can be incorporated into contracts for the international sale of goods. Each Incoterm provides clear obligations for each party.

It must be said, however, that some countries will apply their own law. In this respect, the United Nations Commission for International Trade Law (UNCITRAL) has prepared a model law for international sale goods, which is known as the Vienna Sales Convention, which has been ratified by many countries. It is a very clear and simple instrument.

The convention will automatically apply if the buyer and the seller are nationals of countries which have ratified the

Packaging product factors

Fragility

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Susceptibility to moisture

SME ADVISOR Middle East

Chemical stability

Chemical reactions such as oxidation and corrosion

convention. It can also apply if the parties agree upon its application in the contract.

Cultural issues

One important issue that affects a firm’s performance in global markets is cultural differences between countries.

More formally, culture is defined as a comprehensive system of behaviour patterns that tend to be gradually absorbed, as opposed to being inherited.

These behaviour patterns differentiate members of a particular society to another. Such patterns can include a range of aspects such as customs, religion, language, material artifacts to those of a psychological nature like attitudes and feelings.

Of course, one would not expect a business owner or manager to be a master of all the culture across the globe.

Nevertheless, it is important to be aware of the key aspects of culture of a country that a company has selected to target as a potential export market. Globalisation and an increased level of tourism have opened up once closed countries thereby making people more aware of different cultures.

At the same time, the Internet and media have tended to reduce cultural differences. Even though cultural differences have been reduced, they nevertheless exist, and as a general rule exporters should respect the culture and traditions of the country with which they wish to do business with. The golden rule of business etiquette is to be open-minded, nonjudgmental and flexible.

Packaging

In general, packaging is described as the process of protecting products for distribution, storage, sale and use. Packaging plays a very important role in the customer buying process, and therefore, the design and art is imperative.

It is essential that for the packaging to be successful, both the technology and the design need to work well to adequately deal with the transport, warehousing, logistics, sale and end use. At the same time, one needs to bear in mind that packaging is also regulated because it comes into close contact with the final product.

Packaging protects and stores goods before, during and after shipment. When products are being packaged, their particular characteristics must be kept in mind. Different products need different types of treatment.

These are some of the key factors that are important for SMEs to succeed in the global marketplace. However, the most important factor for success is for SMEs to learn from their experiences.

Trade

Go Brazil!

With its diverse natural resources and quality of products, this emerging market is slowly becoming one of the MENA region’s closest trading partners.

B Aparna Shivpuri Arya CPI Business

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razil has the largest Arab community outside the Arab world, with approximately 12 million Arabs based in the country. Saudi Arabia, Egypt and the UAE were among the top exporters to Brazil in 2011.

Ten years ago Brazil was totally focused on the US and Europe but then it changed gradually and Brazil started showing interest in the Middle Eastern countries and started to promote ties and build trade relations.

Brazil has a very diversified range of exporting sectors, however more than half of the exports to the Arab region comprise of meat, sugar and iron ore.

SME ADVISOR Middle East

Trade between the Arab world and Brazil showed a surplus in favour of Brazil. Saudi Arabia has been the top destination for Brazilian exports so far. Brazil is UAE’s fourth largest trading partner. There are around 25 major Brazilian companies in the UAE. Brazil’s trade and tourism will be given a boost with the FIFA World Cup 2014 and the Olympics in 2016.

Exports from Brazil to the Arab region amounted to USD 15.5 billion in 2011, whereas the imports stood at USD 9.99 billion. Saudi Arabia is one of the major trading partners of Brazil in the region.

Sugar and meat were the top two products exported to the Arab region from Brazil, while minerals and

Trade Exports to the Arab region (2011) 5,000.00

30%

4,500.00 4,000.00 uSD Million

fertilizers topped the list of exports from the Arab region.

The food sector represents one of the major areas of international trade between the Arab region and Brazil.

Due to water shortage and a lack of arable land in the UAE and Qatar, these countries need to import almost 90% of their food requirements. Their dependence on food imports is expected to increase rapidly due to

23%

3,500.00 3,000.00

17%

2,500.00

14%

2,000.00

10%

1,500.00

Brazil: At a glance

5%

1,000.00 500.00

2nd

in orange production

(largest production of orange juice)

papaya production

bananas production

1

st

in soybean oil exports

Second largest producer of organic foods

2%

FATS & OIL

3% SEEDS, GRAINS

8% OTHERS

9% CEREAL

37% SUGAR

41% MEAT

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SME ADVISOR Middle East

Oman

Algeria

UAE

Source: Arab Brazil Chamber of Commerce

Largest producer and exporter of green coffee

Brazilian food exports to the Arab region

Source: Arab Brazil Chamber of Commerce

Other Arab countries

1 1st

st

World’s second largest producer of grains

Egypt

Third largest producer of fruits

Saudi Arabia

0.00

population growth, increased per capita income and a resulting increase in per capita consumption.

According to the Economist Intelligence Unit (EIU), the UAE’s food imports are expected to reach USD 5.5 billion in 2015, up from USD 3.6 billion in 2010. Qatar’s food imports are also expected to increase, reaching USD 2.1 billion in 2015, up from USD 1.3 billion in 2010. Such trends will provide synergy for bilateral trade, and Brazil will stand to benefit as it has the world’s largest livestock herd and is the largest exporter of beef.

There is also potential for Brazil to export in other areas such as machinery, cosmetics and jewellry. One main obstacle for Brazil, however, may be its size as local companies looking to expand there tend to focus only on the national market. Also, language can be a barrier, but that is gradually changing with the present generation being more interested in foreign languages.

Brazil has been very proactive in supporting The Brazilian Trade and Investment Promotion Agency (Apex-Brasil) which is responsible for attracting foreign direct investments to Brazil. The agency mainly focuses on oil and gas, aerospace industries, environmental solutions (renewable energy and solid waste treatment), semiconductor industries, tourismrelated real estate developments, bioscience and venture capital & private equity (VCPE) transactions.

Apex-Brasil also assists foreign investors throughout the entire investment process in Brazil.

With the Middle East being a key trade partner to Brazil, Apex-Brasil maintains a presence in the region with a Business Support Centre in Dubai, assisting Brazilian companies willing to do business with local buyers. The centre also serves as a reference for Arab investors willing to allocate resources in Brazil, especially in the aforementioned segments.

As part of highlighting the trade opportunities, Trade and Export Middle East, covered the Food Buyers Event which was organised by the Arab Brazil Chamber of Commerce in Sao Paulo in July.

PRESENTS

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AWARDS & SUMMIT 2012

Do you have what it takes?

28th November 2012

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

www.smeadvisor.com/awards2012

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BANKING FOR BUSINESS

Enabling the Emirati

entrepreneur Joumana Saad CPI Business

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September 2012

In an effort to extend its reach among UAE nationals, Abu Dhabi Commercial Bank (ADCB) is planning to market its wide range of finance solutions designed specifically around the business needs of this market.

SME ADVISOR Middle East

D

espite strong support from government agencies and the private sector, the UAE has yet to witness a large wave of Emiratis joining the entrepreneurship bandwagon.

The reasons for this are obvious, as the flexibility, stablity and benefits that the public sector provides outweigh other opportunities offered elsewhere in the business community. Another obstacle to encouraging entrepreneurship in this market has been the tendency of many in the local business community to avoid opportunities that could be subject to risk.

However, there is evidence that such attitudes are slowly changing. A report conducted by the Global Entrepreneurship Monitor noted that 8.4% of Emirati respondents reporting involvement in some sort of business startup activity in 2009 (that number is up from 4.9% in 2007). Another trend uncovered by the report was the uptick in business activity specifically among the Emirati youth, marking a 5% rise in 2009 compared to two years prior. Experts in this field have stressed the notion that the public sector will not be able to accommodate younger generations

Customised solutions

For those Emirati entrepreneurs who do decide to seize the opportunity to start their own businesses, the next step would mean finding the right bank that can meet their unique financing needs. An entrepreneur looking to secure a loan to start a trading company would have much different lending requirements than someone with plans to open up a sweets shop in a local shopping mall. One of the most important factors in attracting potential clients at any bank is understanding what their needs are through effective relationship management, and this will no doubt determine the client’s comfort level with the bank in the future.

ADCB is one financial player looking to tap into this customer base. The bank has created a range of products and services that cater specifically to UAE nationals, offering preferential rates and higher allocated loan amounts to this group. “ADCB understands the needs of the UAE nationals and also recognises the immense potential that remains to be tapped. With a rapidly growing population of young, educated Emiratis who are desirous of getting into business, it’s only appropriate that we focus on this community more effectively,” says Nilanjan Ray, Senior Vice President and Head of ADCB’s Business Banking Division. The challenge now will be to effectively garner this group’s interest and influence attitudes in the realm of customised financial solutions.

Added incentives

Among the biggest incentives on offer are the higher loan amounts allocated this customer base. With ADCB, UAE nationals can opt for Business Insta Loans upto AED 1.5 million for UAE nationals (regular offering to expats is around AED one million). Emirati business owners particularly in the construction sector can avail of numerous offerings including: • Special offering in heavy equipment product, finance for the purchase of equipment and vehicles (for UAE nationals with contracts in hand) • Commercial real estate loans for UAE nationals – for rental discounting, purchase of office property, construction finance for residential and commercial property and top up loans on loans given by bank’s finance department Nilanjan expects the bank’s construction loans to be among the most popular on offer, in addition to rental discounting, professional equipment and commercial vehicle loans. The challenge for the bank, he says, will be “to stay engaged and with Emirati nationals and have offers and products that meet the markets expectation.” In recent years, ADCB has focused on building alliances to expand its reach in this area. Last year, the bank announced a strategic partnership with the Khalifa Fund in which the bank began to offer loans to customers approved by the organisation. Under the joint partnership, the Khalifa Fund is able to leverage

the bank’s branch network and reach and ADCB is able to participate in this initiative whereby deserving Emirati businesses get access to much needed funds.

In addition, the bank has supported the Khalifa Fund by setting up six ADCB-Khalifa Fund Centres at its dedicated SME Centres in Abu Dhabi, Dubai, Sharjah and the Northern Emirates. Commenting on the partnership last year, Ahmed Khalil Al Mutawa, former CEO of Khalifa Fund said that this new channel of “indirect finance through guaranteeing finance loans shall relieve the pressure from the fund’s financial resources and shall provide an opportunity to diversify and extend the fund’s services to cover a broader segment of beneficiaries wishing to establish or expand their SMEs in the UAE.”

Nilanjan Ray ADCB

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of UAE nationals who will be looking for a job postgraduation. Government agencies have made Emirati entrepreneurship as well as Emiratisation key areas of focus in driving job growth in line with the Abu Dhabi’s Economic Vision 2030.

With a rapidly growing population of young, educated Emiratis who are desirous of getting into business, it’s only appropriate that we focus on this community more effectively.

Recently, the bank acted as the headline sponsor of the 3 rd Middle East SME Forum, held in Abu Dhabi in September 2012. During the event, ADCB executives addressed the evolving role of the relationship manager in the region’s financial markets, with clients increasingly looking for more services than before. Unlike in Western markets, some banks in this region have had to deal with the responsibility of providing a level of advice to their clients, opening up a new area of services that can be both effective yet challenging to execute.

Changing attitudes

Source: 2009 Global Entrepreneurship Monitor (GEM) report on UAE

SME ADVISOR Middle East

September 2012

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Management

Leader pack of the

John Lincoln of du, shares his thoughts and insights on key characteristics of influential and successful business leaders.

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September 2012

SME ADVISOR Middle East

I John Lincoln du

am often asked by people what leadership means to me. I have also often noticed that most small business owners and managers fail to see and internalise what leadership truly means.

Unfortunately, there is no single dimension or factor that you can attribute to someone’s leadership capabilities. Enough has been written on leadership and leadership styles, and there are many definitions in this category. However, I have observed some common leadership traits by leaders of very successful SMEs. In essence, these leaders often determine the positive or negative outcomes for their businesses that determine if their company sustains and grows and if their customers or employees are happy and satisfied.

Traits and attributes

Leadership is much more than style. It is a characteristic or quality that involves a totality of character, morality, motivation and many others. So, what are the dimensions, attributes and traits of a leader? Whether an SME owner or manager, a leader is someone who can conceptualise and visualise a future for his or her business. They must lead their people to a greater outcome than it otherwise would have been. They must also have the ability to steer and motivate a group of people to a common purpose.

To be a true leader, an executive must empower others and believe that it is this empowerment that is the key to their success. If they come up with an idea or a business that has passed his or her moral compass test, then they must be committed to the vision, idea or project with deep rooted confidence that is conveyed to everyone around them. Leadership in small business also means having the courage to take corrective action to improve your business even if this means resorting to cutbacks.

In addition to confidence a real leader must demonstrate something that may be defined as character. They must have the highest integrity of soul and purpose so that others are absolutely certain that whatever you, as the small business leader advocates, is what is best for the business. In the case of an SME, a leader should be the one who is able to convince others to join him or her on the journey. They must also have the ability to share their vision, purpose and passion with others so that others are willing to do remarkable things, things that they didn’t believe they could do.

Change agents

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SME owners and investors should be the agents for changing things that can be changed, of providing new thinking, new energy, to an existing situation that needs to be changed or improved. Leadership is exemplified by a set of series of behaviours. At the very core, is the belief that things will get better. A leader will have to use his or her pulpit as the owner to influence others to help. Having an excellent work ethic and a high level of

Leadership is much more than style. It is a characteristic or quality that involves a totality of character, morality, motivation and many others.

emotional intelligence are some characteristics that can help an executive inspire others to join them.

It is also important that SME owners and managers be practical. This means facing the reality of business, and not having pie in the sky dreams, while at the same time not being overly pessimistic. These individuals need to take the bull by the horns and deal with situations head on. They also should be connecting the dots in business and in life. Leadership also means taking concrete actions in your business and biting the bullet when you have to.

Foresight and energy

Leaders should possess a strengthened foresight in able to see the evolving and future needs and trends of the business. A small business owner or manager must do what is right for the business. It certainly is not an effort for recognition, glory and receipt of accolades.

They should be strong willed, but at the same time be intellectual and create a buzz or energy around them, that can motivate others.

Defining true leadership

I think true leadership is demonstrated by example. In addition, it is the creation and support of a structure that allows all members to contribute to the best of their ability. Further, my definition of leadership is that it is an opportunity for a person to assume a role in which they can interact with colleagues to achieve a certain end or goal. Leadership is the quality required of a leader to make that interaction occur in a meaningful way.

All the above dimensions, characteristics, attribute and behaviors could be summarised into three main categories or components. These are the three leadership components that matter. Each of these components is important. The weight of each of this component depends on the SME owner or manager’s role and level in an organisation.

Small business owners and SME investors and managers can apply the principles outlined in this chapter to determine the level of importance and weighting that they should give to each of the leadership components: 1) Strategy The first part about being a leader is being strategic.

You really need to have the big picture and know the trends and the competitive aspects of your industry.

You need to have a view as to where your industry is heading, the new technologies, the substitutes, and so forth.

2) Operational management Knowing the big picture alone is not good. You need to have an operational know-how of your business and your industry in general. You also need to be able to roll up your sleeves and get your hands dirty in the muddles and puddle of business. Most small business owners do this.

3) People leadership Last but not least, your people leadership is very important. It is the people in your business who are delivering the results for which we are all paid for or are making money through their efforts.

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

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

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

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

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

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

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

CHARACTERISTICS OF STRONG LEADERSHIP Confidence

Courage Character Decisive Visionary Motivational Strong work ethic

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It is an opportunity for a person to assume a role in which they can interact with colleagues to achieve a certain end or goal. Leadership is the quality required of a leader to make that interaction occur in a meaningful way.

It should be remembered that as one moves up the corporate ladder or when a business grows, and when responsibility increases (hopefully with your pay and perks along with it), the right weight of the strategy, operations and people leadership skill components are required. For example, a CEO of an established and growing SME will have to have the highest weight on his strategic skills, know-how and application. A general manager in the business, who manages a large number of people would probably require a heavy weight on his or her operational and people leadership skills.

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Persuasive Foresight Practical optimism Perceptive Respective Strong willed Intellectual

An SME owner just about starting his or her business will probably require equal application of each of the strategy, operational and people leadership components.

So remember, that leadership is not about being a great strategist, or knowing and doing the nuts and bolts of your business or about just being a good people manager. It is about having the right combination of all the three components at the right phase of your career or business life that matters.

In summary, SME owners must have the quality of leadership and the capability to influence the behavior of others to an intended direction. They may influence by rhetoric, logic, action and or personal example. In the end, it all boils down to: we should do this, follow me.

In other words, knowledge, wealth, position or power has nothing to do with leadership. Simply put, a leader is one who leads or guides. As Dwight Eisenhower said: “Leadership is the art of getting someone else to do something you want done because he wants to do it.”

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Management

Measuring your impact

Metrics are a common tool used by businesses to measure and drive perfromance.

Elias Mazzawi, Managing Director of EMS MENA, explains how misuses of metrics can impact your business.

T Elias Mazzawi EMS-MENA

he saying what gets measured gets managed usually holds true. However, using metrics to drive the performance of the business is only as good as are the metrics that are chosen and the way they are used in.

Metrics need to be set up properly. They need to measure the right things which mean that the processes they measure need to be set up right. The letter and spirit of the metric needs to be understood.

The reason why this is vitally important is that the things that get measured are usually the key things that have an impact on the business, such as customer perceptions. In the case of an SME, the impact is very fast, tangible and real.

Case study

For example, if a customer has a problem with a piece of technology, he or she would contact the supplier by phone to get it fixed. It is important to the customer that it gets fixed quickly. The impact in this situation is highly visible, so it’s reasonable to assume the business’ response will have an effect on future business.

If the customer contacts the helpdesk, that department should quickly find out if the problem is beyond their scope and pass it to technical. The first impact will be customer disappointment since the problem is not fixed at the first interaction. Technical now has 24 hours to respond to the

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helpdesk’s referral. Technical is usally very busy, so it will take at least 45 minutes of working time to resolve the customer’s problem. However this is not realistic, as this department usual deals with a backlog of work.

Technical then has a choice, but it is imperative that they respond within 24 hours. So, if the response is a request for more information, it will take just two minutes to meet the metric, regardless of whether the information is needed or not. In fact, it will be good performance against the metric, because the response can go out within 20 minutes rather than 24 hours.

The second impact occurs when the problem is not yet resolved and customer’s disappointment increases towards frustration. The helpdesk now has four hours to get back to the customer for that information. They start to make calls immediately, but it takes a couple of calls to reach the customer. The customer has to go and find the information asked for. He can’t get the information immediately because the information is at home and the customer is at the office.

The customer calls back with the information that evening.

The third impact can be measured when the customer’s issue is not yet resolved after three interactions while the helpdesk and the customer are doing work they don’t need to. This results in more costs, more efforts and less positive impact, but in good performance against metrics.

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Management About Elias Mazzawi is Managing Director of EMS-MENA. EMS (itself an SME based) works exclusively with mid-size enterprises in the Middle East, driving higher performance in operations, sales and strategy.

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For more information, please visit www.ems-mena.com.

The helpdesk would then pass the information to technical whose workload is now less pressured and they now have capacity to address the problem. They find the solution within the 24 hours they have, according to the metrics (the time to respond metric doesn’t change, even though this is a second referral). Technical passes the solution to the helpdesk to give it to the customer. Nobody checks whether the additional information was actually needed.

Performance has been well within the metrics and just one referral back to helpdesk for more information looks satisfactory to the people that review performance against metrics and wont be investigated further. The helpdesk now has four hours to contact the customer with the solution.

They call immediately, but the customer doesn’t answer the phone. They try again a couple of hours later, but the

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The EMS approach is distinctively tailored to the needs of mid-size enterprises. There is a focus on quick wins delivered through shor t, intense and highly focused project bursts of just a couple of weeks. This is suppor ted by light touch

Metrics need to be set up properly. They need to measure the right things which mean that the processes they measure need to be set up right. The letter and spirit of the metric needs to be understood.

customer is in a meeting and can’t discuss right now. They try again the following morning, but the customer doesn’t get to the phone in time.

The process states that the case should be closed after three outbound calls from the helpdesk to the customer. This rule has evolved because a number of cases seemed to stay open forever distorting the performance statistics. Presumably, in those cases, the customer had found the way to resolve, but had not told the helpdesk.

So, this case is closed. The customer calls in a few hours later and is told the case is closed and the process needs to be started over again. The fourth impact usually consists of frustration and all-around additional work, yet performance against the metrics that measure the process is still okay.

A piece of advice

These metrics are not fit for purpose. Looking at one metric at a time, each metric seems sensible. However, examining them from end-to-end, the metrics don’t deliver what they are supposed to.

The fragmented process with hand-offs between teams doesn’t help. Metrics that work rely on processes that work from an end to an end, not just piece by piece.

What gets measured gets managed, but gamed as well.

With a strong emphasis on metrics and process, some people will do some things that the letter of the metric allows (even encourages), but which are not consistent with the spirit. This results in making the workload heavier and does not help customer satisfaction.

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It is not a reasonable aspiration to get precisely the right metrics to drive the right actions all the time. Businesses are not machines and it’s more complicated than that.

However, it is reasonable to instill the right culture into the organisation to do the right thing, even in spite of the metrics.

Technical could have raised the issues of peaks and troughs in the workload. They could have raised a discussion about how these should be staffed, rather than burying the issue by sending back a spurious request for more information. In line with that, we can draw the following conclusions: • Organisations need mechanisms to encourage this kind of discussion in a balanced way • Organisations need mechanisms to identify these kinds of issues • Organisations need ways to encourage people to raise them Finding the right balance

By their very nature, process metrics should measure disaggregated elements of the overall process, either by bottom-up or piece-by-piece approaches. As presented in the case study, the disaggregated metrics that were implemented literally will not always deliver the top-down goal. Therefore, a balance needs to be introduced over some over-arching metrics like: How long does it take for a customer’s issue to be resolved? What does it cost? How is this varying over time and why?

The balance can be achieved by drilling down into randomly selected cases that can provide a lot of information and uncover situations in which metrics are not driving the right activity. There will always be these, but some of them can be addressed while some are simply not practical to resolve.

Working through cases publicly and involving the right case teams is crucial to evolve these metrics by recognising exceptional activity, encouraging issue resolution and opportunity.

Any sensible look at metrics design is not a once off fix.

It might be a once-off turbo-charge, but not a fix. The turbo-charge should be supported by on-going evolution of metrics and process design. A way to achieve this is to constantly sample check specific cases to see what activity the metrics are driving; constantly check with focus groups, composed of people doing the activity being measured, in order to constantly take the temperature of what’s happening and what can be done to tweak and improve; and finally constantly check the end-toend performance against key metrics like cost, customer satisfaction performance.

Remember, each of the metrics in the example above looked correct when evaluated in its own piecemeal context, but, in some situations, it would hinder customer satisfaction in some way.

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Entrepreneurship

eBay for

ideas

GoMadInc.com, a new social networking website born out of the UAE, aims to encourage entrepreneurship and innovative thinking.

W Joumana Saad CPI Business

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ith over two billion people using the Internet, there has never been a more exciting time for web entrepreneurs to try out new and innovative ideas. Countless platforms and applications have emerged that integrate social media with other aspects of people’s daily lives.

This has created a plugged-in culture where people are constantly interacting online, whether for work or leisure.

Shabbir Adamji is one entrpreneur who has started something that he hopes will allow people to make better use of all those hours spent online. GoMadInc.com, which launched out of the UAE in August 2012, combines a variety of features and targets a broad user base. Combine Facebook, LinkedIn and a philanthropic player like Kiva and add an innovative twist. That’s the general feel of this new website which aims to harness the elements of e-commerce, social networking and social responsibility

SME ADVISOR Middle East

and blend them together in a way that adds value to the average Internet user.

The name GoMad is an abbreviation for Go And Make A Difference and that is exactly what Adamji hopes to accomplish with this brainchild of an idea. “There have been some ideas in my mind for many years. One of those ideas was what can we do to bring global resources and ideas in one place. Right now you might have an idea and I have another but we are working in different directions. I want to channel them together and I always wondered how to do that. Another concept I thought of is what can I offer to the world that is as cheap as one dollar but it can add value back.”

One of the more interesting features of the website is its Ideas Portal, which allows entrepreneurs, or just the average user, the ability to post their idea, sell it on the site, or help develop or build onto other people’s ideas

audiences from one platform,” says Adamji. “If you’re going to be targeting only a group of professionals then you have a limited market there, and if you want to target specifically socially you can do that as well. So you have a much bigger and more dynamic audience than most social media platforms.”

Since it’s recent launch, GoMad has seen over 5,000 users join the website. Adamji says the website’s social and professional profile pages for members are currently receiving the most clicks, followed by the Ideas Platform and MyStore.

In an effort to gain a strong footing in the UAE, his focus for the time being will be to secure online advertising, and explore the use of both offline and online referral networks.

For Adamji, the biggest challenges in getting GoMad off the ground has been the need to maintain a clear and narrow focus in a very crowded marketplace.

Shabbir Adamji , Founder of GoMadInc.com, which launched out of the UAE in August 2012.

“

Our main focus is on individuals who can be entrepreneurs on this platform. Companies can sell their products and services on the site as well. With the Idea Portal, we give categories for different sectors like health, environment, and so on. It’s like a snowball effect; the ideas feed off of each other and it gets bigger and bigger.

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that have been posted. Another tool useful to SMEs and new businesses is the MyStore feature that allows users to advertise their products and services. Other users in their network can endorse their products or pages and become part of a referral system. “Our main focus is on individuals who can be entrepreneurs on this platform.

Companies can sell their products and services on the site as well. With the Ideas Portal, we give categories for different sectors like health, environment, and so on. It’s like a snowball effect; the ideas feed off of each other and it gets bigger and bigger,” says Adamji.

What differentiates the website from Facebook are two key features; its use of credits that are gained according to activity on the site, as well as its charitable focus. Credits can be used to make easy and quick donations to UN World Food Programme and the UAE Red Crescent, both of whom partnered with GoMad to give those who donate live updates on their contribution via ticker. Adamji and the GoMad team have set a goal of raising over USD seven billion for humanitarian organisations over the coming years.

With its dynamic set of channels, GoMad also aims to simplify the browsing experience for users who have become inundated with content, trying to navigate through the clutter of various social networking feeds.

When logged onto the website, it’s relatively easy to connect with friends, colleagues, professionals or clients seperately. Users can also accept someone’s connection request according to each category in order to better filter their content and information shared on the website. “Ultimately its up to businesses to determine what will work best for them on the website. The unique thing about GoMad is that businesses can target different

“One of our key challenges was selecting the very best concepts for the website’s design and functionality. With so many innovative and fantastic ideas coming out of the team throughout the development process, we had to keep coming back to the core vision of GoMadInc. com. Our primary vision was to add value to the social media user, as well as expanding the potential of social media as a social and professional networking.”

Looking ahead, Adamji has set big expectations for GoMad. He tells us that he is aiming for 500,000 users by the end of this year, and ten million by next August.

He also estimates 30% to 40% of the website’s user base to be organisations, made up of both SMEs and large enterprises. He was candid about eventually expanding his operations to the US, as he expects the platform to resonate with users in that market on a number of levels.

Adamji himself is a man of many passions who has spent his professional career in various types of business environments. He previously worked in the fields of marine engineering, research and development and construction, building his experience in India and Dubai. He says he’s always had a knack for coming up with business ideas and felt inspired by the concept of adding value through people’s interactions and connections. “Its more about to going back hundreds of years when in a village you had a real person being an entrepreneur service the needs of the village,” he says. “It was easy for them to sell because everyone knew them in that village. We are recreating that on the Internet using social media and that reach is not a village now but the whole planet.”

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Legal

The zone of tomorrow

Khalifa Industrial Zone Abu Dhabi (KIZAD) is a brand name used for the new industrial zone located in Al Taweela area, operating under Abu Dhabi Ports Company (ADPC).

K

IZAD is governed under Ministerial Resolution No. 88 of 2006 regarding the establishment of Abu Dhabi Ports Operating Company. In the said Ministerial Resolution, ADPC can own, operate and develop, all ports in the emirate of Abu Dhabi, and has the right to construct industrial cities and free zone areas.

Strategic advantages Georges Daoud Al Tamimi & Co.

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KIZAD is well positioned to give investors optimum access and reach to markets within the region and the world. Many factors influence the decision of where to locate a business, and KIZAD sets out to address the most critical of these; efficient access to markets, low operating costs and ease of doing business in a uniquely proactive way.

In keeping with Abu Dhabi’s 2030 vision to harness industrial diversification, KIZAD is located on a 417 square kilometre greenfield site selected as a prominent gateway to capture regional industrial development.

SME ADVISOR Middle East

The KIZAD site is located halfway between Abu Dhabi and Dubai, two major markets with existing business and industrial infrastructure and is in the proximity to three international airports: Abu Dhabi International Airport, Al Maktoum International Airport and Dubai International Airport.

It consists of Area A and Area B. Area A is divided into specific area plans to afford a myriad of industrial activities ranging from aluminium production, trading and logistics operations to healthcare equipment manufacturing.

Area B, although allocated for commercial and industrial uses, further supports the industrial development by providing support services and amenities such as workforce residential communities and retail.

KIZAD is dynamic and comprehensively designed for socio-economic sustainability thereby ensuring successful longevity.

About

KIZAD offers extensive infrastructure and multinational connectivity with roads, ports and rail networks that ensure easy accessibility to and from the industrial zone.

Ownership options

KIZAD will be the first industrial zone in the region which offers both free zone and non-free zone status. This model provides opportunities for both types of business to maximise the benefits of their customs schemes.

Kizad presents two types of regulations based on the type of industry: Companies established outside the free zone area are governed by the rules and regulations stipulated in the Commercial Companies Law (CCL) and the prevailing laws in the Emirate of Abu Dhabi.

Companies established within KIZAD are governed by the rules and regulations of the free zone authority – Abu Dhabi Free Zone Authority (ADFZA). As such, the industrial licenses will be issued by ADFZA. However, whether you chose the free zone or the nonfree zone, the whole of KIZAD is an investment zone meaning that non UAE nationals can have greater property rights than is normally possible including the right to take a Musataha.

Type of companies

There are two types of companies that can be established in KIZAD: free zone companies, regulated by Abu Dhabi Free Zone Authority (an LLC or FZCO), as well as non-free zone companies, as per the UAE Commercial Companies Law. The regulations for both types of companies are the same in terms of land registration, but the licensing body differs. Currently, industrial licences for non-free zone companies being established in KIZAD are issued

by ZonesCorp (Higher Corporation for Specialized Economic Zones), as they are the authority delegated by the Department of Economic Development (DED) to issue industrial licences.

On the other hand, industrial licences for free zone companies being established in KIZAD are issued by KIZAD/ADFZA. In the near future, the DED will establish an independent authority for issuing industrial licenses for both KIZAD and ZonesCorp.

One-stop-shop services

KIZAD is working to speed up the process of obtaining the necessary permits, licences, approvals and clearances by creating simple, streamlined administrative procedures for investors.

The zone has launched a comprehensive service that responds to the needs and expectations of both local and international businesses. From a single location, all

of entities in different practices such as trading, banking, health, shipping, manufacturing, information technology, contracting and engineering consultancy.

Al Tamimi & Co, originally established in 1989, is today one of the leading law firms in the Arabian Gulf region. It is one of the

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

For more information, visit www.tamimi.com

necessary information and services related to establishing businesses within the industrial zone will be delivered by a single point of contact who will be an industry specialist with the skills, knowledge and understanding to respond to investor’s requirements.

The services provided by KIZAD include fulfilling human resources and immigration requirements, utilities connections, waste management, logistics and facilities management. Also, every business in KIZAD will have a dedicated relationship manager based in the industrial zone.

Simplifying setup procedures

Finding the ideal location for investors is one of the priorities of KIZAD’s management team. KIZAD’s Business Services and Technical Services teams will work with investors to simplify set up from land leasing application process, plot allocation, the Preliminary Agreement through to the signing of the Musataha Agreement, which is a long-term property right (up to 50 years) agreement that is registered at the Abu Dhabi Land Registry department.

The first step is for applicants to fill out an Industrial Project Application (IPA) form for industrial projects or

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The services provided by KIZAD include fulfilling human resources and immigration requirements, utilities connections, waste management, logistics and facilities management. Also, every business in KIZAD will have a dedicated relationship manager based in the industrial zone.

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Georges is a qualified lawyer with expertise in the areas of corporate and commercial law and has a particular interest in the corporate restructuring scheme of major local and international companies seeking to enter the UAE market or to amend the existing structure

a Logistic Projects Application (LPA) form for logistics projects. These two forms differ according to the type of facility or operation the applicant plans to establish.

The forms contain the applicant company details; the project timelines and financials; land requirements and facilities details; project workforce and accommodation; operations and logistics and utilities and services.

Upon completion of the appropriate form, KIZAD’s Business Services and Technical Services team will review the application. It will then be sent to the Plot Allocation Committee, which assigns the most appropriate plot of land for the applicant’s business.

The next stage involves talks between the applicant and KIZAD before a final agreement on the venture being established in the industrial zone is reached.

The applicant may then opt for a Preliminary Agreement (PA), which is usually for a six months period, allowing time to complete any required conditions, including

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Legal

KIZAD is located on a 417 square kilometre greenfield site selected as a prominent gateway to capture regional industrial development.

approval for environmental soil testing; constitutive documents (company Memorandum of Association and registration); conceptual design approval; business plan; work description of the construction, before moving on to signing the final agreement.

When the PA is signed, an introductory meeting is conducted between the applicant and KIZAD’s customer

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Business owners that have completed all stages of the land leasing process are invited to sign a Musataha agreement. This is a long-term property right agreement that is capable of being registered at the Abu Dhabi Land Registry department in the name of the investor.

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services and the designated relationship manager. During this meeting, all application forms are handed over to the applicant, and all steps and requirements for registration are explained.

Thereafter, the applicant has a period of six months to achieve and obtain the aforementioned conditions. At this stage, the applicant can apply for a Preliminary Industrial Licence (PIL).

To help the applicant meet these conditions, KIZAD offers its customer service support and a relationship manager will be assigned for the applicant’s project to

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assist in obtaining all the necessary approvals and other requirements.

Business owners that have completed all stages of the land leasing process are invited to sign a Musataha agreement. This is a long-term property right agreement that is capable of being registered at the Abu Dhabi Land Registry department in the name of the investor.

Signing the agreement ensures the investors are able to legally own all assets developed on their plot of land within KIZAD while they reside in the industrial zone and guarantee tenure provided the business operates within the terms of its license. The terms of these agreements can be up to 50 years.

Once the Musataha agreement is signed, KIZAD will register the plot of land in the name of the applicant and will grant him access to it. All companies entering into the Musataha agreement are subject to KIZAD’s rules and regulations, which are in place to establish a safe, efficient and sustainable business environment. Once the Musataha agreement is signed, the applicant can commence the construction and mobilisation processes and can even start its operations.

On completion of the construction, the PIL obtained will be converted into a permanent industrial license.

KIZAD is a new entity on the Abu Dhabi industrial scene but one which will make a big impact. As can be seen, it sets up both a free zone and a non-free zone in an attempt to attract different types of businesses.

It is also organising itself with a view to making the establishment process as painless as possible. The types of companies that can be set up there are in line with other free zones in Abu Dhabi (for the free zone part).

Industry Watch

A regional look at PPPs A recent study by Booz & Company identifies public-private partnerships (PPPs) as a key mechanism for developing the region’s infrastructure.

I Quick facts

n the coming years, GCC nations are set to spend over half a trillion dollars on national development plans which aim to promote the growth of the private sector as well as significantly decrease the countries’ dependence on natural resources. In fact, much of this development expenditure will centre on infrastructure and key public services such as health and education. Building upon this premise, management consulting firm Booz & Company has found that one method of investing this money effectively is through the establishment of public private partnerships (PPPs). As collaborative mechanisms between the public and private sectors, PPPs have been successfully applied in myriad countries at all levels of development for over two decades. Indeed, by drawing in privatesector expertise and capital while adjusting the risk to the public purse, well-implemented PPPs can undoubtedly further advance the GCC’s national development agenda.

The case for PPPs

Source: Booz & Company

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When used in a rigorous and targeted manner, PPPs can ensure efficiency, speed, transparency, and economic impact in the delivery of services or vital infrastructure. In truth, the GCC countries’ particular economic profiles make PPPs an attractive transformation mechanism, helping governments better achieve their national development plans and introduce foreign capital into priority areas. An additional benefit is that, through this process, the state retains ultimate control over projects, thereby avoiding certain privatisation pitfalls.

Furthermore, GCC countries’ natural resource endowment makes PPPs a development option

rather than a fiscal necessity. “Thanks to trade surpluses and manageable public debt profiles, these nations have the relative luxury of selecting PPPs that will actively promote long-term economic development,” said Karim Aly, a Senior Associate with Booz & Company. “Today, the use of PPPs in the GCC is set to considerably increase with states such as Saudi Arabia, Kuwait, Qatar, and the UAE currently engaged in massive development programs which aim to change their economic structures.”

PPPs combine the public and private sectors in projects that the state needs but that private companies can best deliver. In fact, experience stemming from countries who have employed this mechanism shows that the public sector reaps the following benefits from PPPs: • Fiscal benefits: PPPs free public funds for other uses.

• Risk allocation: When properly vetted and structured, PPPs allocate risk to the party best suited to handle it.

• Economic benefits: PPP projects increase efficiency by accelerating the speed of delivery of services and improving service coverage and quality.

• Technological benefits: PPPs facilitate the transfer of technology and know-how from the private to the public sector.

• Social benefits: PPPs improve service coverage, quality and timeliness.

Developing a road map

Indeed, for GCC countries, the most important step in creating PPPs is the development of a multisector road map which connects this mechanism to national developments goals. “The GCC needs to use this rigorous methodology because it identifies where PPPs are most likely to succeed and helps their governments focus their limited specialised expertise in this area on high-impact projects,” said Aly. “Similarly, the road map will alert investors to the government’s objectives and allow them to mobilize for upcoming projects.” In actuality, the road map is a top-down analysis that breaks down the economy into sectors, points to projects suitable for PPPs within these sectors, and then filters them according to priorities, before finally plotting them on a schedule.

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© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Intel, the Intel logo, Intel Inside, the Intel Inside logo, Xeon and Xeon Inside are trademarks of Intel Corporation in the U.S. and other countries. Microsoft and Windows are trademarks of the Microsoft group of companies.

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Industry Watch

UAE tops regional cities survey Abu Dhabi, Dubai and Sharjah are named the top three Arab cities to live in, according to a Bayt.com survey. stating that the housing price situation is either bad or poor. Beirut and Algiers come in close behind with 74% and 73%, respectively.

Entrepreneurship factors

Key survey findings

T

he Top Cities of the Middle East survey, recently conducted by Bayt.com and YouGov, has identified the top cities in the Middle East in terms of several wideranging factors, from economic to environmental, that affect residents’ life.

According to the survey’s respondents, the top five cities in the Arab world to live in are, in order: Abu Dhabi, Dubai, Sharjah, Manama, and Muscat. The survey factored in economic factors, entrepreneurial factors, labour rights, environmental factors, everyday life, socio-cultural factors, and quality of life.

Economic factors

Sharjah Dubai

43% 40%

Cities in the UAE such as Sharjah (43%) and Dubai (40%) rate highly in terms of ease of starting up new businesses

70% 61%

Muscat Abu Dhabi

The city with the least perceived air pollution is Muscat according to 70% of the city’s residents, followed by Abu Dhabi (61%)

73% 70%

Dubai Abu Dhabi

Dubai was ranked the highest by the residents in terms of quality of life, with 73% ranking their lifestyle as either good or excellent, while Abu Dhabi’s residents ranked it second with 70%

Source: Bayt.com, YouGov

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Job availability across the region is considered to be average in most cities. Riyadh is considered to have the highest possibility of employment with 49% stating that the availability of jobs is either good or excellent. Doha comes second with 49%, followed by Jeddah (38%), Abu Dhabi (37%) and Dubai (34%).

The city considered to have the lowest employment opportunities is Beirut.

Doha is considered to have the most competitive salaries according to 44% of respondents, though Abu Dhabi follows closely behind with 41%. Other cities offering compensation that is considered to be high are Riyadh (40%), Dubai (38%) and Sharjah (30%). On the other end of the spectrum Damascus and Amman are considered to offer the lowest salaries, with 68% respondents for each voting bad or poor.

The most affordable housing can be found in Sharjah, with 47% of its residents claiming residential costs are good or excellent. This is followed by Manama with 44%, and Muscat with 34%, while Damascus comes in last with 76%

Would-be entrepreneurs of Sharjah (43%) and Dubai (40%) rate their cities highly in terms of ease of starting up new businesses. On the other end only 18% of those from Damascus state that it’s easy to start a new business in Damascus, making it one of the most challenging city.

Cities in the UAE are rated highly by their residents for their lack of bureaucracy in procedures and paperwork. Dubai receives the highest rating in this category with four out of ten respondents, followed closely by Abu Dhabi and Sharjah, each with 38%.

The survey shows that finding finances to start a new business is difficult in general across the region, though it is seen as being easy to find funding in Abu Dhabi, according to 40%. New businesses starting up in Damascus, Aleppo, Amman and Cairo will have the most difficulties securing financial support.

When it comes to new ideas and innovation, 56% of respondents state that Dubai is most receptive, followed by Sharjah (52%), while those cities most opposed to rocking the boat are Rabat, Amman (both with 48%), and Marrakech (43%) where reception of new ideas is bad/poor according to residents.

Overall quality of life

The residents of Dubai claim to have a high quality of life, with 73% ranking their lifestyle as either good or excellent, while Abu Dhabi’s residents ranked it second with 70%. People are most dissatisfied with the quality of life in Beirut and Damascus, though Algiers comes a close third.

When asked if they would like to move to another city, the highest positive response came from Algiers, with 77% looking to leave, followed by Casablanca with 73% and Tunis with 71%. The majority of residents across the region who expressed a desire to relocate would prefer to move to another city in a different region, except in the case of Abu Dhabi (where majority would prefer to move to a different city within UAE itself). Abu Dhabi also has the second lowest rate of residents wanting to relocate (43%), coming second to Dubai (33%), among those 52% would prefer to move to a different city within the UAE itself.

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Industry Watch

Best of both worlds A new survey shows how fewer commuting days can bring big benefits to employers and staff alike.

Progress towards work-life balance

O

ver half of employees in the Middle East (53%) are now free from the shackles of their desks reveals the latest survey commissioned by Regus, a provider of flexible workspaces. These professionals are free to work from locations other than their company’s main offices for half a week or more, helping them reduce the overall time spent commuting and giving them the freedom to choose work locations closer to home.

Businesses have increasingly been offering flexible working practices to workers as morale and health benefits become common knowledge, but this research confirms that 56% of employees would also work harder, benefiting the company, if they could reduce their commute.

The Regus research asked Middle East professionals how they would use the time gained through cutting their commute. Top activities selected were: spending more time with their partners or families (87%), spending

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time extending educational qualifications (69%) and spending more time exercising and getting fitter (64%).

This research also importantly reveals that if businesses were to extend flexible working practices for their staff, not only would employee health, morale and loyalty improve, but also overall productivity as staff would work more, confirming earlier Regus research revealing that globally 72% of companies had experienced increased productivity directly as a result of flexible working practices.

Joanne Bushell, VP for Middle East and Africa, Regus, said: “Although the number of professionals that are able to choose between different work locations is substantial, there is still significant progress to be made to help all workers benefit from more flexible conditions.

This is especially true when the win-win benefits of slashing commutes are analysed.”

The survey also found that more than half of professionals say they would devote at least some of the time saved on gruelling commutes to working more. “So the benefits of flexible working are twofold, on the one hand workers are more relaxed and healthy and on the other they are also more productive benefitting the business too,” added Bushell.

GITEX 2012

SMEs IN FOCUS

O

ver the past 32 years, GITEX Technology Week has consistently ramped up its scale and influence and is set to have an even greater international impact this year, further boosting the brand as one of the world’s largest and most influential Information and Communication Technology (ICT) events. Under the theme Where Technology Means Business, GITEX Technology Week 2012 runs from 14th to 18th October, 2012 at Dubai World Trade Centre. This year, over 80% of leading ICT brands will be present at GITEX, with C-level executives in attendance representing ICT budgets of

over USD 50 billion. “The Middle East and Africa region is evolving with breath-taking pace, and so too is GITEX Technology Week 2012. As the organisers of the region’s premier ICT event, it is our job to stay ahead of the curve and provide the right platform for the latest innovations to flourish and take root,” said Trixee Loh, Senior Vice President at Dubai World Trade Centre, which organises GITEX. New at GITEX

Among the new additions set to make a mark this year is the SME Zone, which underscores the importance of SMEs and startups in shaping the MEA’s technology industry – from

innovations to job creation.

Tailored to maximise return on investment, GITEX’s SME Zone is a lucrative conduit for SME ICT businesses from the Middle East, Africa and South Asia, to engage with a high concentration of influential investors.

Further indicative of GITEX’s vast global reach, is the introduction of an International Zone, a brand new platform dedicated to giving more than 40 specific country groups the chance to present their most innovative technology products and seek profitable cross-border sales and collaboration.

Africa in Focus is one of the most prominent new highlights at this year’s GITEX, serving to amplify the importance of the continent’s burgeoning economic potential.

GITEX 2011 saw a 20% increase in visitors from Africa, and there is a growing interest among technology companies in the continent to expand business across the borders and utilise GITEX as their platform for growth. The World Economic Forum notes that Africa is home to six of the world’s 10 fastest growing economies over the past decade, which increases the

potential for businesses in the Middle East to play important roles in shaping its digital future.

Excitement is also building around the Middle East co-location of the International Telecommunication Union (ITU) Telecom World 2012, a leading platform for high-level networking, strategic debate and knowledge-sharing for the global ICT community, which will take place for the first time in Dubai alongside GITEX. ITU Telecom World 2012 is organised by ITU, the United Nations specialised agency for ICTs. Enhanced networking

This year, all GITEX attendees will benefit from an enhanced version of ConneXions, an eventspecific virtual community inspired by the interface of social media applications. Users can browse profiles of visitors and exhibitors online, set appointments, manage personal diaries and create matches with the best potential clients, all before arriving at the show.

On-site, ConneXions kiosks and staff will assist visitors to find the right products, services and exhibitors for their business needs.

French connection

UBIFRANCE hosted 22 French companies exhibit during GITEX 2011.

UBIFRANCE, the French export-support agency, will present 25 companies at GITEX 2012, where they will showcase their innovative digital products on the French pavilion. The

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trade show is the digital industry’s biggest event in the EMEA region.

The French Pavilion will host the 25 French exhibitors in approximately 243 m² across set into the Business Solutions hall.

A wide range of products will be exhibited, including those relating to business IT, business communications and networks, ICT infrastructure, IT and telecoms accessories, Future Internet, consumables, open source, cards technologies, electrical protection systems, consulting, mobile content, HR IT solutions, electronic devices for taxi drivers, and more.

According to the European Information Technology Observatory (EITO), worldwide IT expenditure is experiencing substantial growth rates in emerging countries and should have risen by 4.3% in 2011, reaching EUR 963.4 billion. In Europe, France enjoyed a 3.4% increase in expenditure.

The EITO highlights the substantial upsurge by 4.2% in the French infrastructure software segment in 2011. This trend is expected to continue in 2012, with a forecasted 4.8% rise. The growth in this segment is primarily the result of rising sales in storage- and security-applications solutions, boosted by the proliferation of cloud computing offers.

Also according to the EITO, the worldwide IT market in 2012 will grow by 5.4%, exceeding EUR 1,000 billion in sales for the first time.

Some of the companies that will be on the French pavilion include: Bee Ware, e-Citiz, Evolis, Kurmi-Software, New Net 3D, Infosec, Mobiwire, Taztag, Office Gemini S.A.S, Cassiopae, Exceliance, Preactor, ATA/Gleike, KCEI, Vexpo, Preactor, Teclib, Mobibase, Andrexen, Excelom, Gess-IT, HR Access and ORSYP.

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GITEX 2012

POWER OF THE SHOPPER

This year, GITEX Shopper 2012 moves to Dubai World Trade Centre to accomodate demand for exhibiting space.

W

ith the UAE’s consumer electronics market expected to reach a record USD 3.8 billion this year, and an ever-growing demand for exhibition space at GITEX Shopper, organisers of the region’s largest consumer IT and electronics show have announced the relocation of the show this year to the Dubai World Trade Centre.

In addition to the new, ultra-convenient central location, GITEX Shopper will take place slightly earlier in the year, from 29th September through 6 th October.

Covering the cloud As increasing numbers of organisations across the Middle East and Africa (MEA) region prepare to embrace working without traditional infrastructural limitations, GITEX Technology Week 2012 is set to make its biggest impact on cloud computing to date.

Under the theme Business Innovation through Cloud Computing: From Hype to a MustHave Service Model, Cloud Confex is well-established as the largest and most influential conference and exhibition of its kind in the Middle East. It is on course to grow by 25% this year.

The conference will consolidate its reputation as the premier route to market via two days of intense conferencing and a fiveday exhibition graced by leading international players (last year 80%

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The event this year will include 25% more exhibitor space to accommodate surge in industry demand and more than 25,000 of the latest cutting-edge products and gadgets on the market. Ninety-five per cent of the floor space is already booked by some of the world’s top consumer IT and electronics brands, including industry giants Bose, Dell, Epson, Fujitsu, HP, HTC, Intel, Nintendo, Samsung, Sanford and Seagate.

Access to GITEX Shopper has never been easier thanks to the new Dubai World Trade Centre venue and its dedicated Metro station

of the top global cloud computing brands were present). The event’s ramp up in activity comes as high-growth companies and first-generation business-savvy chief information officers (CIOs) converge to drive wide-spread, cloud-driven change across multiple sectors.

Cloud Confex will have a five-day cloud exhibition and two-day cloud conference. The event features insights on pressing issues, keynotes led by cloud computing thought leaders, panel discussions and exclusive networking break-out sessions. Topics tackled will include the state of the cloud today, the next stages in its evolution, evolving market trends, dominant market player insight, privacy challenges and a spotlight on cloud computing technologies.

Also up for discussion is the transition from a traditional or virtualised data centre to a private cloud architecture, seamless

just metres from the door of the show. Ample parking is also available within easy proximity to the venue.

“GITEX Shopper has enjoyed extraordinary success from the show’s very first edition, and with its historic move to the Dubai World Trade Centre, anticipation is at an all-time high. Our exhibitors have almost without exception required increased exhibition space, and this move enables us to deliver that,” said Trixee Loh, Senior Vice President, Dubai World Trade Centre (DWTC), organiser of GITEX Shopper.

“We have also increased the number of hours that the show is open, in a bid tomeet the growing needs of the visitors, many of whom travel hours to attend GITEX Shopper. We are always looking for ways to increase value for all.”

Attracting hundreds of thousands of visitors every year, is expected to offer the biggest ever sales extravaganza, with exclusive show offers, bundled deals, exciting competitions and launches of the latest technology products.

Recognising the importance of GITEX Shopper, many world famous brands will be participating for the first time with their own dedicated stands, including LG, Nestle, Toshiba and Western Digital.

and automatic integration across cloud boundaries, how to improve business analytics performance using cloud-based environments, how to optimise the mix of hybrid clouds, cloud management business strategies, the ongoing cloud computing standards dilemma and how cloud service

brokers can act as the “glue” to bring together multiple services.

Further complementing the cutting-edge agenda is a series of vivid, regionally relevant case studies from companies like Gulf Air, demonstrating how the cloud is already exerting considerable influence in the MEA region.

PRESENTS

Best practice trade Date: 26th Septem be

r 2012 Venue: The Hilton, Ras Al Khaim ah

AGENDA 10:00 am to 11:00 am

Registration and networking (coffee and light refreshments)

11:00 am to 11:20 am

Welcome note

11:20 am to 11:50 am

Trade finance innovative solutions for SMEs Krishnakumar Duraiswamy, Head Trade Finance, ADCB

11:50 am to 12:20 pm

How to manage international customers John Lincoln, Vice President, Enterprise Marketing, du

12:20 pm to 12:35 pm

Coffee break

12:35 pm to 12:50 pm

Key employment issues in the UAE

(Followed by 10 mins Q&A)

1:00 pm to 1:15 pm (Followed by 10 mins Q&A)

1:25 pm to 1:40 pm (Followed by 10 mins Q&A)

Gordon Barr, Senior Associate, Employment, Al Tamimi & Co. Global logistics: Innovation in supply chain management Sanjay More, Barlow World Logistics The role of online communities to promote trade Amro Abu-Hmaidan, Communities Development Manager, Tejari

1:50 pm to 2:30 pm

One-to-one consultations

2:30 pm to 3:30 pm

Lunch

PRESENTING PARTNER

STRATEGIC PARTNERS

EXCLUSIVE TELECOM PARTNER

KNOWLEDGE PARTNER

BUSINESS COMMUNITY PARTNER

SUPPORTING MEDIA PARTNERS

PUBLISHER

GITEX 2012

GROWTH OF SAUDI PRESENCE

A

s the country with the largest telecommunications market in the GCC, Saudi Arabia is on course for phenomenal economic growth driven by rising demand for broadband Internet, smart devices, mobile financial services and sophisticated telecom services, as identified by the country’s leading telecom provider. Large emerging markets like Saudi Arabia are becoming the new global growth engines as their telecom industries drive economic growth, said leading industry experts in the run-up to GITEX 2012.

According to industry research experts RNCOS, overall IT spending in Saudi Arabia is set to hit USD 5.7 billion by the end of 2014, up from USD 3.5 billion in 2010. The country’s per capita IT expenditure is expected to amount to USD 200 by 2012. RNCOS also identified huge growth potential in SmartPhones, Internet Protocol Television (IPTV),

All eyes on Africa With GITEX having an Africa in Focus theme this year, MITSUMI IT Distribution says it is expecting an increase in the number of delegations from countries that have expressed interest like Algeria, Kenya, Libya, Cameroon, Ghana, Morocco, Nigeria, Tanzania, Ethiopia, Uganda and Tunisia among others. MITSUMI’s participation at GITEX 2012 is to ensure the company’s commitment to showcasing the rich opportunities available in Africa and to cement and further grow its reseller and vendor partner base.

As part of the Africa in Focus campaign, the GITEX team met representatives from Rwanda, South Sudan, Tanzania and Uganda. While in Nairobi, the team met officials from Kenya’s ICT Board, who have announced their goal to be among the top ten ICT hubs in the world.

Kenya’s national ICT Master Plan,

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an initiative by the Ministry of Information and Communication, aims to drive aggressive growth in the ICT sector by 2017, contributing 25% to the country’s GDP. MITSUMI IT Distribution has an early-mover advantage in Africa since the company was the first to establish a chain of in-country presence in these markets ranging from facilities like warehousing, stocking points and support service centres in 1996.

Jagat Shah, Chairman & CEO at MITSUMI IT Distribution said: “As part of GITEX’s Africa in Focus campaign, World Trade centre has concluded a series of successful GITEX roadshows in East, West and North Africa. Last year, we witnessed a huge increase in visitors from different part of Africa hence, MITSUMI Distribution has decided to participate this year.

We realise that GITEX is an excellent

WiMax, and security software markets, as well as rapid growth in 3G and broadband over the next few years. This potential is demonstrated by the country’s total mobile phone penetration rate of 198% during 2011 with scope to increase beyond 200%, according to a 2012 report by Saudi investment company Aljazira Capital.

“Countries with a healthy, competitive telecom environment have managed to attract high levels of foreign direct investment and Saudi Arabia is the largest telecoms market in the GCC, strongly positioned to benefit from the next wave of growth opportunities following a progressive liberalisation of the sector in recent years,” said Dr Khaled bin Abdulaziz Al Ghoneim, CEO of STC Group, a new exhibitor at GITEX this year.

Saudi Arabia is among the top 20 countries in the world driving growth in telecommunications, according to a white paper released this year by INSEAD Business School in partnership with telecoms, media, and technology advisory and investment firm Delta Partners.

These emerging markets are anticipated to drive nearly 75% of all incremental GDP growth until 2016, the white paper stated.

According to Aljazira Capital, the Saudi telecom sector is the largest in the Middle East, with over 56 million mobile subscribers and more than USD 20.5 billion in consolidated revenues. Increasing demand for web connectivity at home and via mobile is forecast to lead to a sustained period of revenue growth for the country’s largest telecoms operators, stated analysts at Shuaa Capital.

Now in its 32nd year, GITEX is introducing a host of new features which are expected to appeal to Saudi visitors at the world’s third-largest ICT exhibition and conference, with the number of Saudi exhibitors increasing each year. This year, exhibitor figures jumped by 25% with a 15% increase in exhibition space compared to 2011.

Among the Saudi ICT heavyweights at GITEX is Advanced Electronic Company, a regional leader in the field of modern electronics manufacturing, system integration and repair and maintenance services, as well as newcomer Al Elm Information Security, which focuses on secure e-business solutions.

platform to showcase MITSUMI’s Africa operations and consolidate partnerships. At GITEX 2012, our main message and thrust will be to increase partnerships thereby, propelling our PC & Components portfolio forward.”

Long ignored by foreign investors, African nations received about USD 80 billion of foreign direct investment in 2011, a 27% jump from the prior year. On a global basis, Africa now accounts for almost one-fourth of total FDI.

Ernst & Young projects that by 2015, money flowing to Africa will reach USD 150 billion, which will create 350,000 new jobs annually.

Shah emphasised that there are challenges, but we need to start having a different conversation about Africa where we always focus on the positive stories. For MITSUMI, the story of Africa is a story of progress, opportunities, growth and a story of political and economic vibrancy.”

GITEX 2011 saw a 20% increase in visitors from Africa, showing growing interest among technology companies in the continent.

Technology for business

Quick scan Canon Middle East, unveils the imageFORMULA DR-C130, a versatile and compact desktop scanner made for highquality document processing.

I

t is the latest addition to Canon’s imageFORMULA desktop scanner range, offering a user-friendly and reliable scanning experience, versatile software including seamless connectivity to the cloud, and productive scanning speeds of up to 30ppm/60ipm.

Hendrik Verbrugghe, Marketing Director at Canon Middle East, comments, “We see a growing need for decentralised document capture processing; especially in branch office locations and across departments and teams. Organisations in insurance, finance, healthcare, transportation or government sectors have a growing demand for compact, easy to use scanners to improve the way they digitally capture and share information.

The new imageFORMULA DR-C130 has been specifically designed for these busy and paper intensive environments.”

The new desktop scanner is extremely easy-to-use and comes with a full suite of powerful professional software enabling users to scan and process their documents more effectively. The bundled software includes CaptureOnTouch, CapturePerfect, eCopy PDF Pro Office, BizCard, PaperPort, OmniPage and Kofax VRS. Plugins for cloud based connectivity with Microsoft SharePoint, Evernote and Google Docs are also integrated, allowing users to instantly and seamlessly process documents to the

cloud and access them from anywhere around the world. The DR-C130 also allows the installation of runtime controls that support direct communication with the EMC Captiva Cloud Toolkit, allowing software developers to effortlessly create web based scanning applications for the device.

To ensure precise and accurate document capturing, the new DRC130 offers a variety of advanced image processing features, including auto colour detection, text orientation recognition, and ‘multistream’ processing that accommodates dual output workflows for increased efficiency and cost savings.

With its robust feeder mechanism, the DR-C130 ensures reliable batch scanning of mixed document types, including very thick documents such as embossed card or ID cards and long documents of up to three metres. The device comes with ultrasonic double feed detection that ensures all documents within a batch are processed. Its double feed release feature can save users valuable time when scanning, especially when feed errors resulting from, for example, scanning an envelope or a document with a sticky note attached are being detected. In these special cases users can quickly and conveniently ignore the double feed error and resume scanning by one click of a mouse.

Embracing the private cloud Dell says it will offer dedicated servers in its data centres and off-premises application and storage services for companies looking to establish private clouds.

Dell’s Cloud Dedicated program intends to reduce the stress of companies hosting servers locally by moving workloads off premises to Dell’s data centres. Dell will deliver infrastructure-asa-service (IaaS) offerings through the private cloud, which could reduce the costs involved in deploying servers and managing services locally.

The program helps companies move applications into the cloud, and the service levels can meet security and compliance requirements, Dell said. The service bundles storage and networking, and can handle large or small workloads. A number of managed service options are offered with the program.

Dell, which also sells servers to companies, has been expanding its cloud services offerings by opening data centres to host public, private and hybrid clouds. The company last year said it would pour USD one billion over three years to expand its cloud, services and data storage offerings, with part of the investment going toward opening data centres. Starting last year, the company has opened data centres in the U.S., Europe and Asia-Pacific.

Gartner earlier this month said spending for worldwide IT outsourcing services would reach USD 251.7 billion this year, with cloud computing services being the fastest growing segment. Gartner said spending on cloud services in 2012 is expected to total USD five billion, growing by grow 48.7% compared to 2011.

Dell has also acquired many companies over the last few years to expand cloud services. One of Dell’s earliest acquisitions was Boomi, which simplifies deployment and management of cloudbased applications alongside existing on-premises applications, and the company in 2011 acquired SecureWorks, which now is central to security services provided in the cloud.

Outside of the new private cloud offering, Dell in the coming weeks will make pre-configured public and hybrid cloud bundles available for online order. The pre-configured services are available depending on storage or workload capabilities, and users will also be able to pay an hourly rate for less predictable or workloads based on cyclical trends where cloud requirements could shoot up at any given time.

Source: IDG, CNMEonline.com

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Technology for business

Low-cost storage Amazon Web Services has announced the release of Glacier, a low-cost storage service that has been customised for data archiving and backup.

A

reas that are a good fit for Glacier include media archives, financial and healthcare records, raw genomic sequence data, long-term database backups, and information that has to be retained for regulatory compliance, it said.

Today, enterprises typically over-pay for data archiving, because of the upfront cost of an archiving solution, and also because many over-

provision to make sure they have enough capacity for data redundancy and unexpected growth, according to Amazon.

Storing data using Glacier costs from USD 0.01 per gigabyte per month.

Its existing Simple Storage Service (S3) in comparison costs from between USD 0.125 and USD 0.055 per gigabyte per month for standard storage. To get the lowest prices, data volumes above 5,000 terabyte are needed. Unlike S3, there is no free tier offered for Glacier.

The two storage services are complementary. Enterprises should use S3 if they need low latency or frequent access to their data, while Glacier is a better fit if low storage cost is paramount; data is rarely retrieved; and data retrieval times of several hours are okay, according to Amazon.

Also, to tie the two closer together, Amazon will introduce an option that allows users to move data between S3 and Glacier based on lifecycle policies in the coming months.

There is no limit to the amount of data users can store in Glacier, and they can also choose in which of Amazon’s regions the data is stored. To improve durability, data is synchronized across multiple facilities, Amazon said.

Data is stored in Glacier as archives, which can store up to 40TB. They can represent a single file or several files that are uploaded as a single archive. Archives can then be organised as vaults, the access to which can be controlled through Amazon’s Identity and Access Management (IAM) service, the company said.

Source: IDG, CNMEonline.com

Mobile control Sophos has announced the latest version of its mobile device management (MDM) solution, Sophos Mobile Control 2.5.

With an updated web-based administrative console and extensive new feature set, the latest version provides a simple way to bring BYOD into the enterprise quickly, safely and securely; all while reducing the reliance upon IT. According to the Cisco IBSG Horizons Study published in May of 2012, 95% of companies allow employee-owned devices in some shape or form, with 84% providing some level of support, and 36 % providing full support for these devices. And according to the June 2012 Forrester Research report, Charting the Rising Tide of Bring-Your-Own Technology, BYOT brings both issues and opportunities into an IT organisation — and info workers recognise that.

Thirty-five percent of respondents stated that their organisation would make them uninstall or stop using the unauthorised software they have installed. Given the tremendous momentum behind this trend, blocking or ignoring BYOT

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SME ADVISOR Middle East

will put an organisation at a distinct disadvantage, such as not being able to attract top talent or to collaborate and share documents easily with business partners outside corporate boundaries.

Increased control Sophos Mobile Control 2.5 has optimised workflows, so IT administrators can complete many common tasks in just one click. The new version also offers easy integration with existing IT infrastructure by supporting the use of directories, such as Active Directory, to automatically assign newly-registered devices to existing groups and apply the associated policies to them.

The enhanced interface includes detailed graphical reports to assist IT administrators in managing all aspects of mobile devices, offering them immediate insight into which devices require updating, and ensuring that all devices are secure.

Ensuring compliance It is increasingly difficult to manage employees’ mobile devices through selfservice portals because employees often are unable to access the internet. Sophos’ new mobile client interface includes a compliance tab, which provides the device’s compliance status, reasons for noncompliance and any actions the user needs to resolve the issue, thereby alleviating the need for IT help. The user can also access their current compliance status and a list of issues in the self-service portal.

Sophos Mobile Control 2.5 offers improved risk mitigation, such as allowing IT to remotely conduct a corporate wipe of a device if an employee leaves the company or remains non-compliant with security policies. The support for iOS-managed apps allows the company to tie their corporate or compulsory apps to their MDM solution and to push them to the employee device. These apps, as well as any associated data, can be deleted directly from the admin console.

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Technology for business

Management tools SAP’s Business All-in-One solution has been positioned by Gartner in the leaders quadrant of the Magic Quadrant for Single-Instance ERP for Product-Centric Midmarket Companies report.

T

he positioning is based on evaluation of enterprise resource planning (ERP) systems that support a single-instance strategy for multi entity midmarket and upper midmarket companies.

SAP Business All-in-One solutions are industry-specific ERP solutions available to midsize or quickly growing small companies.

They give an integrated view of the business and easily scale and adapt to meet changing needs.

The solutions help drive business growth, build and maintain operational excellence and optimise financial performance.

The software provides in-depth functionality for running the entire business efficiently and is designed to be affordable, with a predictable time to value. Currently more than 21,700 companies worldwide run SAP Business-All-inOne. Business-All-in-One is proving particularly popular in the Middle East and North Africa (MENA) region.

Formed in the UAE in 1976, house-ware and consumer goods wholesale and distributors Mansoor Ahmad Mohammad Co LLC is a recent convert to the SAP solution, which was implemented by SAP partner Procons4IT, and has placed it at the core of its expansion strategy.

“As a business grows, more and more pressure is put on existing systems to support the day-today operations. If these systems are inadequate, the skilled employees who have helped grow the business are swamped with time-consuming

administrative tasks,” said Nima Mansoor Faqihi, Managing Director, Mansoor Ahmad Mohammad.

“As a company that represents some major global brands, we were looking for an integrated solution to serve our current requirements and enable continuous growth. SAP has given us the visibility to run our operations better. We are now able to know the status of our orders, we have reduced overstocking and achieved better cash flow control.”

Flemingo International Ltd, a Dubaiheadquartered company that owns and operates travel retail shoppes and provides supplies to travel retail operators, also turned to SAP when it needed to take the company to the next level.

Implementing Business All-in-One with SAP partner NTT DATA, the company’s package includes Business Intelligence, Best Practices for Wholesale – (Distribution Industry) as well

as solutions across Finance, Supply Chain including Warehouse Management and Business Intelligence.

“Today, an SME like ours needs it all: a business solution that is flexible to meet the current and future needs while being affordable, quick and easy to implement, configure, maintain and provide the transparency into business information as the foundation for smart decisions,” said M. Shailesh, Head of Information Systems, JAFZA Business Unit, Flemingo International.

Companies positioned as leaders in Gartner’s report are described as “successfully transforming their products to become modeldriven applications to allow for high process and information flexibility, with tools for embedded analytics and UIs that allow for easy adoption by different types of users in the context of a usercentric ERP strategy. They also have compelling strategies for addressing the ongoing market changes related to emerging technologies, such as SOA, cloud, mobility and the integration of social technologies.”

Companies running SAP Business All-in-One can benefit from new opportunities to expand the functional scope of their implementation at determined costs. Designed for customers to go live within 12 weeks or less, rapid-deployment solutions offer customers a complete package of software and implementation services supported by content and enablement components for a fixed price and scope.

Flexible maintenance The Global Management System (GMS) launched by SonicWALL is a flexible solution specifically designed for SMEs, service providers and distributed enterprises.

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SME ADVISOR Middle East

Cost-effective solution

Active network monitoring

Through GMS, one can manage and monitor a series of internet security appliances at a central location. It also acts as a cost-effective global management tool that not only helps in reducing your workload, but also cuts the costs of managing security measures. SonicWALL GMS is an extension to SonicWALL’s previous easy-to-use management interface, which comprises a high quality security management tool for networks spread across different geographic regions.

SonicWALL GMS provides integrated security tools to administrators for the management of all security policies within a large-scale business enterprise or a service provider environment. The firewall settings and subscription services, including VPN, gateway anti-virus and content filtering, can be configured by administrators through a web-based interface.

Comprehensive security management tools enable administrators to identify, distribute and arrange an entire range of VPN and security policies on a global scale for various SonicWALL appliances. At the same time, managed VPN solutions allow for the definition, distribution, enforcement, deployment and monitoring of VPN policies for SonicWALL VPN gateways. The active network monitoring reduces maintenance costs and system downtime.

Moreover, real-time active monitoring of networks and systems enhances customer service. The network monitor includes device up or down status, application monitoring, VPN monitoring and statistics, uptime calculations, latency monitoring and security events for GMS activity management.

SIGN OFF

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

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Joumana Saad CPI Business

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September 2012

t’s shaping up to be a very eventful quarter in this part of the world, as a number of high-profile regional events will begin to descend on the UAE. The excitement around GITEX Technology Week 2012 is building up, as more and more companies from around the world announce their plans for the trade show which will descend on the Dubai World Trade Centre from 14th to 18th October.

One key theme of this year’s show will be 4G, or the next generation of advance telecom services. This trend is expected to spread rapidly throughout the GCC, with the UAE and Saudi Arabia leading the way. According to a recent study by Gartner, the sale of SmartPhones grew 58% in 2011, with units sold worldwide in 2011 reaching 272 million, accounting for 31% of all mobile device sales.

The third Annual Middle East SME Forum will also be a major event to include on your calendar. The forum, which will take place 17th to 18th September in Abu Dhabi, will bring forth industry leaders to share their successful experience and address the audience with the updated information, policies and SME supported ventures. Panel discussions will address corporate governance, access to finance, expansion strategies, among other topics. Representatives from Dubai SME, The Khalifa Fund, Abu Dhabi Commercial Bank and the IFC will participate in the sessions, along with

SME ADVISOR Middle East

established entrepreneurs from the SME community, who will share their success stories and best practices.

During the same time, the fifth annual People Challenge Middle East summit will also be held. The summit is a comprehensive human resources summit being organised to to helping organisations in the Middle East region develop and optimally harness their most valuable asset- their people. Over the years, the event has facilitated exchange of ideas, sharing of knowledge and best practices apart from being an invaluable opportunity for networking with the leaders in the HR industry. This event comes at a critical time for the HR industry as recruitment, job growth and satisfaction all remain major issues that those in the industry have been struggling with for some time.

Another major trend sweeping the region, is the growing interest in accelerator and seed fund programmes. Both SeedStartup and Innovation 360 have announced a series of events that will kick off in the UAE in September in which they will seek out entrepreneurs to compete in these programmes with funding, mentorship and, and prize money on the line. Accelerators have also picked up momentum in Lebanon, where the finance structure for startups is nothing short of challenging, as entrepreneurs struggle to build an eco-system amidst a volatile political and social landscape.

Seeqnce is one notable programme that is making a name for itself in

the country, hosting and funding a number of startups, many of them with impressive ideas that utilise crowdsourcing.

I recently sat down with Rudolf Jabre and Zoya Sakr, the founders of ra2ed.com and nawa3em.com, which are two relatively new niche lifestyle websites that tailor to Arabic speaking users. These websites are just two examples of how some media players are make headway in filling the Arabic e-content gap. When asked about their most successful strategies, they expressed that the belief that creating and devleoping websites with original and user-generated content tailored to their audiences’ interests made for a winning combination.

Addressing such a widespread need was the main focus of the most recent Arab Media Outlook, which was developed by Deloitte and published by the Dubai Press Club. The report highlighted the lack of engagement on the part of Arab media in connecting with their audiences, as these groups of individuals have mostly tuned out to traditional media and spend most of their time filtering through content on social media platforms. As more and more support is allocated to such programmes that empower such innovative startups aiming to fill market demands, I expect to see more content-driven websites to pop up in the region in the near future. The challenge for them will be to maintain their focus, as new trends surface and more opportunities align in their path.

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