SME Advisor Middle East - September 2014

Presenting partner

ISSUE 105 strategic SME partner

Peeta principle

How two brothers are changing the entrepreneur landscape

A world of opportunity Majid Al Marri on public/private sector partnership

Top performer

A meeting with productivity guru David Allen

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sme advisor ISSUE 105

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

Alexandar Mathew Williams Alexandar Mathew Williams is presently the Director of Strategy and Policy at Dubai SME, a government agency of the Department of Economic Development (DED) tasked with the development of Entrepreneurship and Small & Medium Enterprises (SMEs) in Dubai. He has logged more than 20 years’ experience in public policy and strategic programme development focusing on micro-economic, business and SME development.

Anas Halabi Anas is Managing Partner at Prediam Partners, an independent investment advisory firm, focused on real estate, hospitality and related ventures that he co-founded.

Prediam has successfully assisted in setting up, structuring and financing numerous regional and international projects and startups, including an innovative application for Muslim travelers, an aggregator website for tourists in the UAE, an income producing hospitality portfolio in Dubai and a boutique hotel development in Beirut.

Mona Tavassoli With over a decade of work experience, Mona Tavassoli is the Founder of Mom Souq (www.momsouq.com), an online community and bazaar for mothers residing in the UAE, through which mothers can network with each other, share advice and their experiences. As an extension, with the aim of continually providing support to working mothers in this region, Mona launched a new platform - Mompreneurs Middle East (www. mompreneurs.me).

Audrey Weir Audrey Weir is Global Head of Risk and Regulatory Strategy with AIG - currently the world’s 9th-largest insurer. Audrey brings to her role an in depth knowledge of risk and insurance earned over a 25 year career that spans the geographies of North America, Europe, and the Middle East.

Audrey has held key risk and insurance management positions with global players such as PricewaterhouseCoopers, Fujitsu, Transport for London, and Aon. She commands an expansive career which crosses a wide array of sectors including Construction, Energy, Real Estate/Commercial Property, Financial Services/ Institutions, Retail, Information Technology, and Transport. In addition to her corporate experience, Audrey spent six years as a University Lecturer, Careers Tutor, and Director of Studies in Risk Management.

Simon Hodges Simon has more than 30 years of experience working for international companies at Board level. He has spent over 10 years in the UAE and was previously Corporate Director of Administration of The Jumeirah Group, Senior Executive Officer of Dubai Holding Insurance Services LLC and Head of Governance for ADNEC. He also completed a two-year assignment as head of the health funding project for the Government of Dubai.

Since 2011 he has been mentoring business owners from Dubai to enable them to create and then manage effective organisations that support business growth.

Hazel Jackson Hazel has built an impressive reputation and successful multimillion dollar business

– biz-group FZ LLC- during the past 19 years based in Dubai. Nearly two decades ago, and with just US$700 in her pocket, Hazel founded biz-group, which she has developed from a small training company into an organisation of 42 professionals servicing the Middle East’s corporate training, team building and business strategy needs. Passionate about impacting performance, biz-group’s success is a testament to Hazel’s entrepreneurial spirit.

Kay Braganza A seasoned public relations professional and successful entrepreneur, with five years of experience in the industry and an extremely commendable portfolio, Kay Braganza decided to pursue her love PR and start up her own agency four years ago.

Here, she aims to cater to the demand of a flexible and a truly bespoke PR service, which strives to make a lasting difference to companies of all sizes. A recognized and respected expert in the PR world, her proficiency in the field speaks for itself, after working in it for nine years and having dealt with reputed clients such as Sony Gulf, Nokia, Mom Souq, and Clarion Events amongst many others.

Nadine Halabi Nadine Halabi has been the Coordinator of the Dubai Business Women Council since August 2011. Since then, she has been managing the overall operations of the exclusive Council, coordinating the high profile board members, its stakeholders and members in line with the values, visions and missions as set out by its President, Mrs. Raja Al Gurg. Prior to her joining the DBWC, she worked at an events management and PR agency in Bahrain, where she flourished in a senior role as Deputy General Manager.

‫ﻣﻌﺮض اﻟﻀﻴﺎﻓﺔ ‪Hospitality Show 2014‬‬ ‫ﻳﺴﺮ ﺑﻄﻮﻟﻪ دﺑﻲ اﻟﻌﺎﻟﻤﻴﺔ ﻟﻠﻀﻴﺎﻓﺔ‬ ‫ان ﺗﺪﻋﻮﻛﻢ ﻟﻠﻤﺸﺎرﻛﺔ ﻓﻲ‬

‫ﻣﻌﺮض اﻟﻀﻴﺎﻓﺔ ‪) 2014‬ﺗﺠﻬﻴﺰات واﻛﺴﺴﻮارات اﻟﻀﻴﺎﻓﺔ اﻟﻤﻨﺰﻟﻴﺔ(‬

‫ا¡ول ﻣﻦ ﻧﻮﻋﻪ ﻓﻲ اﻟﻤﻨﻄﻘﺔ واﻟﺬي ﺳﻴﻘﺎم ﻓﻲ ﻗﺎﻋﺎت اﻟﺸﻴﺦ ﺳﻌﻴﺪ ﺑﻤﺮﻛﺰ دﺑﻲ اﻟﺘﺠﺎري‬

‫اﻟﻌﺎﻟﻤﻲ ﻓﻲ اﻟﻔﺘﺮة ﻣﻦ ‪ 30‬أﻛﺘﻮﺑﺮ وﻟﻐﺎﻳﺔ ‪ 1‬ﻧﻮﻓﻤﺒﺮ ‪2014‬‬ ‫اﻧﻮاع اﻟﻤﻨﺘﺠﺎت اﻟﻤﻤﻜﻦ ﻣﺸﺎرﻛﺘﻬﺎ ﻓﻲ اﻟﻤﻌﺮض ‪:‬‬ ‫ أدوات اﻟﻤﺎﺋﺪة وأدوات اﻟﻀﻴﺎﻓﺔ واﻛﺴﺴﻮاراﺗﻬﺎ‬‫ ﻣﻌﺪات ﺗﺠﻴﻬﻴﺰ اﻟﻄﻌﺎم اﻟﻤﻨﺰﻟﻲ وﺣﻔﻈﻬﺎ‬‫ ﻣﻌﺪات ﺗﻘﺪﻳﻢ اﻟﺸﺎي واﻟﻘﻬﻮة‬‫ اﻛﺴﺴﻮارات اﻟﻀﻴﺎﻓﻪ واﻟﺪﻳﻜﻮر اﻟﻤﻨﺰﻟﻴﺔ‬‫ اﻟﻜﻴﻚ واﻟﺸﻮﻛﻮﻻﺗﻪ‬‫ اﻟﻤﻔﺎرش اﻟﺨﺎﺻﺔ ﻓﻲ اﻟﻄﺎوﻻت‬‫ اﻟﻌﻄﻮر اﻟﻌﺮﺑﻴﺔ واﻟﻌﻮد واﻛﺴﺴﻮاراﺗﻬﺎ‬‫‪ -‬ﻏﻴﺮﻫﺎ ﻣﻦ اﻟﻤﻨﺘﺠﺎت اﻟﻤﻤﺎﺛﻠﺔ‬

‫ﺗﺎﺑﻌﻮﻧﺎ ﻋﻠﻰ‪DWHCDubai :‬‬ ‫‪#DWHC‬‬

‫ﻟﻠﻤﺰﻳﺪ ﻣﻦ اﻟﻤﻌﻠﻮﻣﺎت ﻣﻦ داﺧﻞ اﻟﺪوﻟﺔ‪|800DWHC(3942) :‬ﻣﻦ ﺧﺎرج اﻟﺪوﻟﺔ‪:‬‬ ‫|‬

MANAGEMENT Dominic De Sousa Chairman Nadeem Hood Group CEO Georgina O’Hara Group COO EDITORIAL Group Director of Editorial Paul Godfrey paul.godfrey@cpimediagroup.com +971 4 440 9105 Group Managing Editor Melanie Mingas melanie.mingas@cpimediagroup.com +971 4 440 9152 Assistant Editor Rushika Bhatia rushika.bhatia@cpimediagroup.com +971 4 440 9115 Editorial Assistant Adelle Louise Geronimo adelle.geronimo@cpimediagroup.com +971 4 440 9160 ADVERTISING Publishing Director Rajashree Rammohan raj.ram@cpimediagroup.com +971 4 440 9131 Commercial Director - Business Division Chris Stevenson chris.stevenson@cpimediagroup.com +971 4 440 9138 Sales Manager Jason Bowman jason.bowman@cpimediagroup.com +971 4 440 9154 Media Sales Executive Emma Hughes emma.hughes@ cpimediagroup.com +971 4 440 9120 Event Sponsorship Manager Gill Fairclough gill.fairclough@ cpimediagroup.com +971 4 440 9120

FROM THE EDITOR Ready for life Beyond Borders?

Just a few years ago, it was often alleged that SMEs in the GCC were fated to be buyers of innovation - not primary innovators - and would always be coerced to work with pricing structures created in Europe and the USA. While the success of dedicated science parks such as Dubiotech and Masdar City seems to disprove the former, ask any business supplying regional SMEs about the greatest bargaining factor, and it always comes down to price. Similarly, the platform of criteria by which any form of Best Practice or quality performance is assessed is fundamentally based on European benchmarks such as the ISO, BSI and DIN standards. So, are SMEs here forever beholden to their western counterparts (or for that matter, to SMEs in the formidably competitive markets of SE Asia), or are times changing, with the day of the Gulf SME now being more than a hollow pipedream?

It’s to answer this question that we’ve created SME Beyond Borders - a powerhouse two-day conference (November 30 - December 1) that promises to be one of the largest SME events ever held in the region. It asks real, provocative questions about the ability of regional SMEs to compete on the worldwide stage, whether in terms of quality of product offer, market reach or sheer modernity. Is there such as thing as the East/West corridor, and if so, is it a one-way street?

Can you ever claim a genuine USP when a business in California or Singapore has been leading the technology in your sector for a decade? We’re bringing together top international business speakers, regional captains of industry and a number of leading local names - this is a glittering line-up - with a view to having the best and most rigorous, practical SME discussion of the year.

SME Beyond Borders also looks at how the international agenda can supercharge business growth in a way not possible a few years ago. For example, can you find a finance partner in the USA or Europe who is better-suited to your needs than a local one? Why be constrained by regional finance conventions when the international picture offers you a completely different opportunity? If that sounds appealing, how would you actually go about approaching an overseas provider? SME Beyond Borders tells you how.

As you can see, this is an event on a bigger, bolder scale than you’ve seen before in the SME marketplace. For a full event profile, see a preview on page 52. We believe you’ll discover a good deal that leaves you better-informed about the international SME scene - and better-equipped to maximise its myriad opportunities.

Enjoy this issue of SME Advisor!

DESIGN Head of Design Glenn Roxas Senior Graphic Designer Froilan Cosgafa IV

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STRATEGIC SME PARTNER

KNOWLEDGE PARTNER

Contents

The financial instruments brought together under the Global Markets name can invigorate your business and help provide the lifeblood to drive growth and revenue.

32

p26

“Be relevant, and always make sure that you listen to your audience and see what they want out of your business.”

- Peeta Planet p38

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

09 Editor’s Note Paul Godfrey invites you to 2014’s biggest SME occasion – SME Beyond Borders…

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

Ground level 14 Can you take the risk?

Different insurers are right for different kinds of business, and it pays to make a choice that complements your mutual strengths. Senior Editor Paul Godfrey investigates…

18 Entering emerging markets: strategies, risks and opportunities.

Assistant Editor Rushika Bhatia, explores emerging markets that are at the helm of economic development, trade and innovation.

sme advisor ISSUE 105

foremost mentors of the new approach: Majid Al Marri.

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34 Productivity principles with David Allen.

The bestselling author, veteran coach and management consultant shares top tips on effective workflow management.

38 Lights, Camera, Action!

In an exclusive interview with Peeta Planet, we discover the new ‘social travel’ template and the secret behind its growing popularity.

Education 42 Behind the scenes: what goes into creating a young successful entrepreneur?

We ask Dr. Shahin Bahrami, Professor of Entrepreneurship at American University in Dubai…

Workspace 44 CLOUD - OR BLUE SKY THINKING? Understanding the potential risks, costs and opportunities...

44 22 If the face fits…guidelines for evaluating job applications We review the signposts…

Business Banking 26 Outside the box - re-imagine your business with the power of Global Markets.

We speak to experts at National Bank of Abu Dhabi (NBAD).

SME Out and About 30 Taste Testing.

An exclusive preview of the Dubai World Hospitality Championship 2014.

Movers & Shakers 32 Public/Private sector partnership – the key to unleashing future success.

SME Advisor speaks to one of the

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48 The Flexible Workplace Advantage.

Kory Thompson, Country Manger – UAE, on how Regus can give your business the winning edge.

The next level 52 SME Beyond Borders – Global models for success.

We unveil the first-ever occasion assessing the impact of international trends on the local SME scene.

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

Tech Trends 84 Maximise business ‘on-the-go’ with these handy apps.

Data and Decision making

C F O - t o d a y ’ s THE CFO IN THE C-SUI H T TE WI

46%

:

CIO

p

pa

hi

rt

rs

ne

ne

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rt

hi

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w

O

ith

CF

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Profits?

CSO

Strategic planning?

:

ith

CF O

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pa

ip

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h rs

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rs h

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ip

pa

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ith

O CF

39%

25%

Innovation?

COO

:

CF

ith

O

w

24% CPO

b u

20%

Risk?

CHRO

Collaborative Influence CEO 78% CFO 65% Others 24%

Most influential after the CEO

SOURCES: EY’s CFO and beyond – The possibilities and pathways outside finance | IBM’s Pushing the frontiers | EY’s CFO Capital Confidence Barometer | Accenture’s The CFO as an architect of business value

12

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Data and Decision making

s i n e s s

L EADE R

The role of the CFO

73%

see lowering costs & increasing productivity as a priority

61%

are partnering effectively with other enterprise functions

79%

60%

are providing insightful analytics to the company

2/3

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

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

Predictions for the future

29%

of CFOs say increased global political instability is their top risk

73%

are lowering costs and increasing productivity

35%

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

61%

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

28%

see slower growth in emerging markets as a key economic risk

44%

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

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

Carol Tomé, Home Depot

Karen Hoguet, Macy’s

Stacy Smith, Intel

Paul Clancy, Biogen Idec

Leading CFOs in the Middle East

Adel Al Wahedi, Abu Dhabi Ports Company

Khaled El Chidiac Majid Al Futtaim Ventures

Accenture’s Charting the path to growth | IBM’s The New Value Integrator – Insights from the Global Chief Financial Officer Study | EY’s The DNA of the CFO – A study of what makes a chief financial officer 2010

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GROUND LEVEL

Can you take the risk?

As anyone who’s had to make an insurance claim will tell you, there’s much, much more to insurance than simply finding a provider with a famous name. Different insurers are right for different kinds of business, and it pays to make a choice that complements your mutual strengths. Senior Editor Paul Godfrey - a former insurance professional investigates the advantages, pitfalls and potentials‌

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GROUND LEVEL

Insurance is far from being an ‘afterthought’ - it’s actually part of the core strategic planning of how you run, build and direct your business.

There is a common misunderstanding about why a business needs insurance.

You might suppose that the objective is to ensure that you have a payout if and when the building catches fire, or a delivery driver crashes the car. Yet actually this is a misunderstanding of the wider role of insurance, which is in reality a financial and business management tool, not simply a safety net when the going gets tough. The key objectives of insurance are: • To quantify risk and identify and isolate the cost of risk on the balance sheet.

• To minimize risk in three ways: 1. Provide a safe environment for the directors, staff and customers 2. Lessen the financial cost of incidents and accidents 3. Create a platform for the smooth continuation of business if a disaster should occur • To enhance the likelihood of other business relationships being successful, in the knowledge that the majority of your exposures are taken care of.

All of which means that insurance is far from being an ‘afterthought’ - it’s actually part of the core strategic planning of how you run, build and direct your business.

Yet the price a business has to pay for this understanding is the knowledge that, because insurance is so critical to your values and objectives, not every insurer will be aligned with the way you want to work. Insurance isn’t just about price or availability: it’s also about whether an insurer fits your business’ unique culture and style of working. If it isn’t, you might find that the vital risk dialogue becomes much harder work than you’d ever expected it to be.

What’s your appetite for risk?

The first thing to understand is that while you work with an insurer to minimize risk, every form of business activity involves one kind of risk or another, and if you stop all risk, you will also stifle the vast majority of business. Different levels of risk are appropriate for different types of business: for example, the kind of risks that a Wall Street brokerage will entertain during a leveraged buyout are vastly

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different from those seen as appropriate for a community health centre. Yet even the health centre will introduce new technologies and materials which it hasn’t used before in order to enhance the customer experience and increase business. In other words, the risk appetite reflects the level of risk that an organisation is prepared to accept, before action is thought necessary to reduce it. It represents a balance between the potential benefits of innovation and the threats that change will inevitably bring.

The point is that the kind of insurance you buy should reflect this ‘appetite’ for risk, as deemed compatible with your business and its aspirations. It should give your business a long enough leash to experience good, productive risk, because if it doesn’t, you’re wasting money on cover you don’t need.

A classic example of this is the case of Trade Credit Insurance (TCI), where, instead of protecting all your receivables after, say, 140 days non-payment, you decide that your organisation has the ability to chase the majority of debts successfully, and you only need cover for invoices above, eg, US$60,000.

Similarly, you’re more likely to entertain having a high risk threshold when developing an innovative project (e.g. early development of a creative computer programme), where you’re able to accept short term failure if it paves the way to longer term success.

Test your taste for risk!

Which one of the following terms best defines your organisation’s appetite for risk? Each answer will actually determine the type and style of insurer you should be working with.

Is your business Risk Averse - Avoidance of risk and uncertainty is a key organisation objective.

Risk Minimal - Preference for ultra-safe options that are low risk and only have a potential for limited reward.

Risk Cautious - Preference for safe options that have a low degree of risk and may only have limited potential for reward.

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GROUND LEVEL

Risk Open - Willing to consider all potential options and choose the one most likely to result in successful delivery, while also providing an acceptable level of reward and value for money.

Risk Hungry - Eager to be innovative and to choose options offering potentially higher business rewards, despite greater inherent risk.

The point is, when you define what style of business you are, your SME can arrive at an appropriate balance between uncontrolled innovation and excessive caution. There’s another benefit, too: defining the risk appetite can guide people on the level of risk permitted and encourage consistency of approach and working practices right across the business, from sales and marketing to R&D, finance and the media team. Not of course - forgetting the sheer cost element: a defined, acceptable level of risk also means that resources aren’t spent on further reducing risks that are already at an acceptable level.

All of this risk evaluation will impact the style of insurer you are best-suited to work with. Typically, if you have a higher appetite for risk, you will want to work with a global provider well-used to coming up with tailored solutions - a company that recognizes your business doesn’t work according to a ‘plain vanilla’ formula.

Alternatively, if you are more risk-averse, the majority of local providers will be wellplaced to understand your requirements, and may also have a good in-depth understanding of your industry sector.

Knowing your risks and exposures According to the UK’s Federation of Small Businesses - the largest SME organisation in the world, with more than 230,000 active members - the single largest cause of workplace accidents is a lack of awareness of what the risks actually are.

In their 2012 report titled ‘Cost factors driving and constraining business: what directors say’, the following comment spells out a challenging warning: “About 43 per cent of businesses who had suffered losses said that they had never thought of such an accident ever happening; there was no possibility

16

of prevention because there was no cognizance of the risk.”

What are the key risks for which your business needs insurance? Have you stopped to think what they might be? Unless you know the answer, not only might an accident prove to be a costly awakening, but you won’t be able to identify the insurers best-matched to delivering your requirements. The prevalence of warehouse fires in the northern emirates, for example, suggests that even relatively large warehousing facilities had never considered the perils of putting kitchens - often fuelled by LPG gas - adjacent to a paper storage plant, or thought about putting non-smoking signage in prominent locations next to shelving holding 55,000 cans of cellulose paint.

Compile a ‘Risk Register’ Stop to list the kinds of risk you face according to the style of business you run. If these are generally propertybased, the majority of insurers will be able to approximate and handle your risk. If they are more personnel-based or connected with intellectual property and the danger of online fraud or security breach, you may need to source an international specialist.

Is your business: Predominantly an online trader?

• Your office base may be minimal, so there is less emphasis on property cover as such.

• You may need to insure considerable levels of computer equipment - PCs, server, etc. - against theft.

• You will also need Intellectual Property (IP) cover and anti-fraud cover.

• Implement a full online disaster recovery plan.

• Note: it’s extremely important to install hacker-prevention software to prevent security breaches which may endanger your credibility for customers and public alike.

Predominantly a trading business moving physical commodities?

• First and foremost, you need to carry

• •

•

•

out a detailed risk audit of your warehousing facilities. Source an insurer who will provide you with a technical risk manager, willing to ‘walk’ the premises with you and devise a strong risk checklist.

Implement a full disaster recovery plan.

Protect receivables with Trade Credit Insurance and other relevant financial instruments. Your book of receivables can account for up to 40 per cent of the value of your business, and protecting payments due is a powerful way to ensure cashflow when you need it most.

Your insurer should provide engineering professionals able to examine and audit the condition of all powered equipment.

Ensure proper health and safety signage is in place and provide structured health and safety training courses.

Predominantly an office environment?

• Purchase the full raft of property insurances including packages covering the theft of personal belongings, accidents affecting personnel, fire and flood damage and third-party liability.

• Protect all cash offices with comprehensive security techniques.

• Insure the range of computer and IT equipment held on-site, including staff laptops, and provide a lockable storage facility.

The message to all SME owners and directors is ‘know your risk - and source the right risk specialist with answers tailored to your needs.’ The exposures faced, for example, by a cement exporter in Al Hamriya free zone and a marketing business in Downtown are intrinsically far removed from one another - and so are the style of insurers who feel comfortable covering the risks.

For an online version, please visit: www.smeadvisor.com/2014/10/can-youtake-the-risk/

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GROUND LEVEL

Entering emerging markets strategies, risks and opportunities

Assistant Editor Rushika Bhatia, explores emerging markets from Brazil to Dubai to China, that are at the helm of economic development, trade and innovation, and highlights what their rising popularity means for the growth of your business…

(1) Source here: Accenture Research, “Gearing up for Growth – Five imperatives for success in emerging markets, 2011, Henry Egan and Armen Ovanessoff

18

Latest insights from PwC’s 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future. What is making emerging markets such a pressing priority for C-suite executives? Why are emerging markets increasingly grabbing headlines?

Emerging markets are large, fast-growing and ambitious markets best known for being the growth engines of today’s global economy.

Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth – a clear indication of the wealth of opportunity they present.

Understanding emerging markets Based on estimates by International Monetary Fund, emerging economies are expected to grow two to three times faster in comparison to developed nations. Explaining this fast-growth and the rise of these emerging markets, an article on Forbes.com explains, “During the US housing crash and resulting credit

Source: http://shuwenzou.files.wordpress.com/2012/11/cartoonemerging-markets-china-elcamedia-and-gap1.jpg

TOP TEN MARKETS Ease of Doing Business

RANK

55

PANAMA Projected annual GDP growth, 2014 & 2015,

6.7%

Ease of Doing Business

RANK

42

PERU Projected annual GDP growth, 2014 & 2015,

5.5%

crisis of 2008, world markets were saved from a total disaster thanks to the big emerging markets – mainly Brazil, India and China. The global credit crisis was one of the longest, deepest, and most painful in history.

It toppled Wall Street icons like Lehman Bros, required government bailouts of bulge bracket banks, and shocked the global economy with a deep economic recession and even a deeper crisis of confidence. Its most important legacy, though, may be one that has yet to fully

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GROUND LEVEL

Ease of Doing Business

RANK

Ease of Doing Business

RANK

24

45

Ease of Doing Business

RANK

POLAND Projected annual GDP growth, 2014 & 2015,

LATVIA

CHINA

3.2%

Projected annual GDP growth, 2014 & 2015,

96

Projected annual GDP growth, 2014 & 2015,

7.4%

4.1%

Ease of Doing Business

RANK

7

SOUTH KOREA Projected annual GDP growth, 2014 & 2015,

3.5% Ease of Doing Business

RANK

75

Ease of Doing Business

CZECH REP.

18

RANK

Projected annual GDP growth, 2014 & 2015,

2.1% Ease of Doing Business

RANK

THAILAND Ease of Doing Business

34

RANK

6

CHILE

MALAYSIA

Projected annual GDP growth, 2014 & 2015,

Projected annual GDP growth, 2014 & 2015,

4.3%

5.0%

Projected annual GDP growth, 2014 & 2015,

4.5%

Source: http://www.bloomberg.com/news/2014-01-29/qatar-china-top-ranking-of-frontier-and-emerging-markets.html

unfold: the crisis revealed a new world order in terms of economic and market dynamics. Emerging markets economies finally arrived as powerful, essential, and permanent contributors to global economic growth and sustainability.�

Bloomberg.com recently ranked the top emerging markets based on their performance on 19 economic, financial, political and social indicators. In order of ranking, the top ten markets were:

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1.

2.

3.

4.

5.

CHINA

SOUTH KOREA

MALAYSIA

CHILE

THAILAND

6.

7.

8.

9.

10.

PANAMA

PERU

LATVIA

POLAND

CZECH REP.

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GROUND LEVEL

Emerging markets for SMEs • SMEs can enter these markets as they are ideal to innovate new products and test new business models.

• Barriers to entry are also significantly low.

• SMEs are young, agile and nimble by nature, and this allows them to easily adapt to new market conditions.

Making an entry If your business is looking to enter any of these emerging markests, it’s worth considering the following checklist: 1. Assess your readiness: The biggest mistake you can make is to enter a market without proper evaluation of your business. Don’t do it just because everyone else is! Like every other major business decision, ensure to speak to your Board of Directors, partners, investors, stakeholders and most importantly your CFO and certified accountants! Make a business plan enlisting your objectives, goals, investment strategy, potential risks, etc.

2. Research, research, research: Do your homework. Treat emerging markets as any other international expansion venture and do thorough research on the new market – who are the competitors, what is the price point for your product, what are the customer demographics, what kind of infrastructure do you need for the manufacturing, production or distribution of your product and so on.

3. Understand the legal framework: Emerging markets might not have rules and regulations as clearly spelt out as your home country. Invest some time and money in understanding how business procedures work. A very obvious area of focus for UAEbased companies is tax. Since UAE is a tax-free economy, companies aren’t exposed to tax accounting and other legislation surrounding this. Another area to consider is corruption – emerging markets are notorious for high corruption, red-tape and bureaucracy.

Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand.

Invest in local talent: Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs.

But, more significantly, gives you skilled talent to work in these unique environments. This also works in 4.

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favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees. For instance, employees based in China might want high remuneration and low healthcare benefits, while in India it may be quite the reverse. Recruiting local talent will also have a trickledown effect – your employees will easily be able to cater to the local customer needs, without the need for intense training.

5. Supply chain: 44 per cent consider accessing the right supply chain capabilities extremely or very challenging in emerging markets, according to Deloitte’s Globalization Survey. Make sure that you know who you are suppliers will be, what the production costs will be like, will their production procedures fit to your time constraints, will the final product match your level of quality and so on.

6. Cater to local market demands: This is one of the most important aspects of all – failing to adapt to the needs and expectations of the local customers is surely a recipe for failure.

Time and again, companies haven’t been able to create a customised offer and have had to exit these markets with huge losses. A success story, however, is that of the Haier Group.

Haier famously introduced washing machines to especially suit the water pressure levels in the households of India – an emerging market strategy that worked very well in their favour and helped them become leaders in that sector. Another great example is that of Coca-Cola, as explained in an online article on blogs.reuters. com by Matt Reilly: “In Brazil, CocaCola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional CocaCola products as well as fruit juices tailored to local tastes.”

Local currency: This is a complex, yet critical, area to consider when entering a new market. Ask yourself 7.

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GROUND LEVEL

Are you focusing all your resources on doing business in the emerging market at the cost of losing profits in your home market?

questions such as – What is the local currency rate? How does it compare to the currency in your home country? Is the country import-led or export-led and what impact can this have on the global value of the currency? Remember that fluctuations in currency rates can hugely effect your overall investment, and thereby the return on investment.

8. Build partnerships: When entering an unknown territory, it is quite useful to have the backing and support of peers, who can help you in case of unforeseen challenges. This is the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets. Many companies piggyback on their clients who are entering these markets. For instance, if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China, you can use their resources and expertise to explore opportunities in these countries.

Remember to consider these steps every time you enter a new market as every market has its unique needs.

One strategy doesn’t fit all!

Surviving fierce market conditions While the massive opportunity that lies within emerging markets paints a pretty picture, businesses need to be wary of bottlenecks such as corruption, volatility, gaps in laws and regulations, and strong competition. There have

Consider the risks!

48%

of companies believed they had invested more resources in emerging markets than was required

24%

entered a market without fully assessing the ability of the supply chain to support the expansion

Source: Emerging markets expansion and the supply chain, Economist Intelligence Unit survey conducted on behalf of EY, September 2010.

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been several high-profile cases of multinational companies withdrawing from emerging markets owing to immense corruption pressures.

There is also a high percentage of inherent risks in these markets due to which many companies don’t succeed in their first attempt. It is important to take your time when adapting to these markets and fully understand the business dynamics. Following recent case studies and going over the lessons learnt by multinational companies, who have made an entry into these markets, consider the below: • Is your company’s head-office – and senior management – located in your home country without any C-level representation in the new emerging market?

• Are you focusing all your resources on doing business in the emerging market at the cost of losing profits in your home market?

• Have you researched local competitors in these markets, who may already have a strong withstanding and proven models of success?

• Are you using the same ‘entry approach’ and business model across different emerging markets?

If your answer to one or more of these questions is yes, it may be time to re-evaluate your presence in these markets and map out a different strategy.

Finally, remember that no matter what the outcome of your entry within these markets might be, your business is sure to ‘emerge’ out of this stronger, tougher and – of course – ready for a new challenge!

20%

entered with the wrong pricing model and an inappropriate operating model For an online version, please visit: www.smeadvisor.com/2014/10/enteringemerging-markets/

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GROUND LEVEL

If the face fits...

Guidelines for evaluating job applications Every job application tells a story - but is it the right story for your business? Does a superficially strong CV disguise a world of problems? Will the numbers hide the fact that there’s no affinity with the values at the company’s core? Senior Editor Paul Godfrey reviews the signposts that separate the stars from the also-rans…

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GROUND LEVEL

“It pays to be very specific about what you’re looking for.

Someone who’s never handled big budgets won’t be an ideal choice to look after a seven-figure account.

Someone who never keeps a job more than two years won’t be the best person to evolve and build a new department” – Singapore Institute of Personnel Management

So you’ve received what looks like a perfectly competent CV. How do you evaluate if this really is the best person for the job, even before you meet him or her? According to the Singapore Institute of Personnel Management, which has more than 160,000 SMEs as accredited members, there are actually four key steps that you need to follow before you do anything else, or make any irrevocable decisions. These are • Phone the candidate and have a general chat about what fired their interest in the position. This will tell you about the person’s fluency in the chosen language you need. It indicates their ability to bond and communicate, and will most definitely tell you if he or she can perform a telephonebased role. This also ensures that you don’t go on to waste valuable time with a face-to-face interview

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that regrettably, leads nowhere.

• Check how long the candidate has spent at each job. Typically, early in our careers we may only spend a year or two at each company.

But if you are looking for an experienced manager, you should only ever select someone who has been (at least once or twice) in a position for more than five years. How else would he or she ever have learned how to manage change or evolve a department?

• Is the CV well-written, or is it full of grammatical and spelling errors? If so, these will be transferred into your company’s own output and literature.

• Notice if there are any mysterious gaps in the CV. These might not be a bad thing: perhaps there was a redundancy due to the financial crisis, or the applicant took a sixmonth adventure break. To find out, why not give the candidate a call?

• If academic qualifications are important to you, check that the colleges attended have offered degrees or diplomas with a universally-standardised syllabus. For example, a college offering an MBA degree might have a world-class status, or be offering a course that is actually of a standard below degree level.

You simply won’t know. Since there is no universal benchmark for MBAs, don’t expect that the person you choose will have graduated understanding Michael Porter’s economics…

• Ask how effective the CV is in communicating the individual’s skillsets and achievements. That person will be no more or less successful at communicating the USPs of your business.

Values count It’s relatively common to find that someone who shone at interview, and who had an excellent CV (and even exceptional references) seems out of kilter with the way

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GROUND LEVEL

It’s relatively common to find that someone who shone at interview, and who had an excellent CV (and even exceptional references) seems out of kilter with the way the company works.

the company works. Perhaps they don’t seem very willing to stay late; or won’t go the ‘extra mile’ for a client; or even (and this can matter too!) doesn’t want to work out in the nearby gym with colleagues after hours. Very often, this can be because you chose a candidate for objective reasons - right experience, right qualifications, etc, - but didn’t undertake any tests to see how the person actually fitted in with your business’ culture and way of working. There are many different psychometric tests available for evaluating attitudes and values, but you can also do the following • Ask the candidate a range of qualitative questions at interview, eg, ‘what would you do if…?’

• Invite the candidate to an informal evening gathering, and see how he/she ‘fits in’ with established team members.

• Offer the candidate the chance to ‘ghost work’ in a department for a day, as a trial run for the actual job.

In most cases, the ability to reflect and align with the company’s values is almost as important as the actual ability to perform the technical elements of the job itself. It’s well worth investing time and a little effort in establishing the candidate’s working values - remember the old saying: ‘act in haste, repent at leisure’.

Pre-interview and interview If you select the candidate for interview, it’s a good idea to ask him or her to undergo an informal challenge - like preparing a review of your web site or asking specific questions about how to enter a new market. This can then form the starting-point of the interview itself.

Also, the willingness with which the candidate undertakes this challenge is a great indicator of his or her ability to work under pressure.

With the interview session, watch if the candidate arrives slightly early -

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always a good sign - and is dressed in a way commensurate (at least to a certain extent) with your company dress code. Notice whether the candidate • Has good personal hygiene?

• Can answer your questions fluently and calmly?

• Asks sensible and practical questions of their own?

• Has the manner and personality of someone you would like to work with - whether or not they have all the right qualifications?

Classic ‘red flags’ at an interview include over-confidence, too much emphasis on the salary package, a tendency to argue with or talk over the interviewer, excessive emphasis on holiday timings and lack of information and ‘prepping’ about your company and its trading activities. If these traits appear early on, end the interview in a friendly, polite way after 15 minutes or so: there is no point in creating the false impression that this may be a good opportunity for the candidate when it definitely won’t be. Far better to spend time with a strong applicant who may be exactly the catalyst to empower your business to unprecedented success.

For an online version, please visit: www.smeadvisor.com/2014/10/if-theface-fits/

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BUSINESS BANKING

Outside the box re-imagine your business with the power of Global Markets

Even successful SMEs often fail to capitalize on the raft of financial instruments specially-designed to maximize cash resources, stabilize interest rate risk and turn international transactions into a powerful source of competitive edge. Senior Editor Paul Godfrey spoke to National Bank of Abu Dhabi (NBAD) about the addedvalue of Global Markets transactions‌

26

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BUSINESS BANKING

Step back for just one second and take stock of your business. Are you taking a good many inherent risks in terms of your currency dealings or interest rate exposure? Are you wasting the advantages of being a predominantly cash-rich business by failing to capitalize on the advantages that cash collateral could bring? Are you continually importing commodities but at the mercy of price fluctuations that could wreak havoc with your margins - and which you could effectively be hedging against?

If you answered ‘yes’ to some or all of the above, you’re not alone: these are all endemic challenges of the SME sector, especially for companies who have successfully built a strong trading portfolio, or are looking for ways to leverage growth and take the quantum leap to being an Enterpriselevel, ‘middle market’ business.

The fact is, there are very specific solutions to each of these scenarios - and you will typically find them packaged together under the umbrella term ‘Global Markets’. The financial instruments brought together under the Global Markets name can invigorate your business and help provide the lifeblood to drive growth and revenue.

But are you taking advantage of the opportunity?

SME Advisor spoke to a leading NBAD Global Markets practitioner, who commented: “Global markets services can be very ‘plain vanilla’ in nature or at the level of complex derivatives. The factor they all have in common is that they ensure your business is effectively managing working capital at any one time and squeezing extra value from its day-today activities. Global Markets services can include • Foreign exchange (FX) • Commodities • Interest Rates • Structured Investments, including Asset Management; Liquidity Fund, Fixed Income • Futures and Options

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While these may seem to be financial instruments more within the territory of a larger, more sophisticated business, the reality is that Global Markets services can be of value to just about every size of operation.

You could be an SME within almost any sector of the economy and find that effective use of services from the Global Markets platform can nourish and stabilize key aspects of the business. In fact, I would go as far as to say that all our commercial banking clients are potentially able to reap the benefits. These can include addressing the inherent risks in currency and cross-border financial transactions, optimizing income on surplus funds or even minimizing risk in vulnerable operational areas, to name but a few.

“You will also find powerful hedging tools that provide an extremely useful cushion against variations in interest rates - the kind of financial instrument that’s often overlooked, but which can protect against potentially catastrophic turnarounds and fluctuations.”

The financial instruments brought together under the Global Markets name can invigorate your business and help provide the lifeblood to drive growth and revenue.

Global Markets and your SME The following are three instances of where Global Markets services can be relevant and helpful catalysts for your business: • Many SME owners are in need of working capital facilities - yet they are exposed to the volatility of market indexing. Hedging mechanisms, providing a valuable comfort buffer, are something well worth considering.

• A growing and well-managed SME can be in a situation where, despite limited size, is relatively cash rich. It may be in a situation where it can afford to put up cash collateral - opening up longer-term market structures, which in turn bring better value.

NBAD have actually made this scenario the topic of a customerfacing campaign, called ‘Enhance yield on your cash’ - introducing

27

BUSINESS BANKING

Global markets provisions add a valuable extra dimension to the back office capability of your business.

opportunities that bring a better return than that available from conventional channels.

• A large number of SMEs in the UAE are importing substantial volumes of materials from overseas, but not hedging against pricing variation. Ironing out these likely fluctuations is a basic area of protection that helps support the absolute ‘bread and butter’ of the business.

Close-up on the benefits While the majority of SMEs stand to benefit from an element of the Global Markets mix, there is no doubt that your business will be especially well-suited to these kind of services if you are: • Building a branch network and set on pan-GCC expansion • Regularly dealing with a considerable volume of currency transactions - typically, more than one currency • Preparing for a ‘landmark’ transition - eg, an IPO, merger or acquisition • An importer or re-exporter subject to potentially volatile pricing variations on imported materials • Wanting a buffer against interest rate fluctuation on index-linked loans In terms of how specific Global Markets products work, it’s worth keeping in mind the following advantages:

business, bringing together a raft of specialists. The objective is to provide a stream of cost-effective financing to optimize your business’ cash flow.

Interest rate risk Managed by instruments such as Swaps, FRAs, Options, and other money market related instruments, ranging from basic to more complex structures.

Typical instruments here will include: • Government bonds • Semi-government bonds • Repurchase agreements • Corporate bonds These can be selected so as to provide a balance of income and risk commensurate with medium and longer-term company expectations.

An extra dimension Global markets provisions add a valuable extra dimension to the back office capability of your business. In many cases, they will not only help you build a competitive edge, but will give the business the buoyancy to navigate harsh economic climates and emerge as strong and stable over an extended period. For an SME with a level of cash reserves and a moderate appetite for risk, they will rapidly become an indispensable and organic part of how you drive the business to the next level of profitable growth.

FX Convenient and secure, services here will typically provide real-time FX trading for more than 30 currencies, with same day settlement. You can benefit from strategic solutions across time zones; for a business working across borders, this means substantial competitive edge and accrued financial advantage.

Commodities A service of this kind can help you achieve critical growth in your

28

For an online version, please visit: www.smeadvisor.com/2014/10/outsidethe-box/

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The largest business awards in the GCC 30th November, Dubai

Stars of Business has become an iconic awards brand like no other in the region. It recognizes the very best SMEs across 26 business categories.

It’s universally respected as scientifically assessed and unimpeachably judged.

327,000 SMEs across the UAE $234 billion estimated total revenue of the SME sector 4,974 Awards entries in 2013 1,856 Individual company applicants

nominate now at www.starsofbusinessawards.com

Presenting Partner

Strategic SME Partner

Gold Sponsor

Gold Sponsor

Supporting Partner

Knowledge Partner

Official Publication

Organiser/Publisher

OUT AND ABOUT

Taste testing

The Dubai World Hospitality Championship 2014 will take place from 30th October to 1st November at the Dubai World Trade Centre with an International Competition, an Emirati Competition, a Hospitality Sector Competition and a GCC Products Competition.

A series of UAE-wide preliminary workshops has taken place for the final qualification of contestants participating in the second cycle of DWHC that will take place on October 30th. More than 1,600 Emirati contestants took part, hoping to gain a place in one of the various competitions of DWHC, a now annual event which aims to position the UAE as an international center of excellence and creativity.

The Emirati Competition is seen of particular importance as part of DWHC as it has been specifically developed to showcase and celebrate genuine Emirati hospitality and authentic cuisine in a bid to promote local hospitality worldwide - a leading initiative for promoting the UAE’s identity and heritage. Local amateur chefs who compete for top places in four different categories are set to showcase their best skills and talents in the preparation of Emirati dishes based on traditional recipes handed down from generation to generation.

30

In each category, contestants will face various challenges to determine their ability to meet criteria such as set timings, quality and traditional taste.

The series of workshops began at the Novotel in Fujairah and was attended

by HE Ahmed Bin Hareb Al Falahi, President of DWHC, Ahmed Al Sharif, Vice President of DWHC, Ali Mubarak Bin Abbad Al Abdooli, General Manager and other senior officials from DWHC. Bin Hareb reiterated the importance of using only Emirati ingredients to maintain the authenticity and traditional taste of local cuisine.

The second stage of the workshops was held in the Emirate of Sharjah at the headquarters of the Women Union Association in Sharjah and the third workshops were held in Abu Dhabi.

Ahmed bin Hareb explained that the Abu Dhabi Workshop was a very important phase given the wide participation of locals and predicted that local representatives would perform strongly and pose major challenges to other participants.

Abu Dhabi is clearly participating with high potential and promising efficiencies in the second cycle of the championship to continuously improve on its performance since last year’s championship. We are honoured by the

limitless support of local government which will definitely put the name of the UAE on the map of global hospitality.

An Umm Al Quwain workshop was also held in collaboration with Umm Al Quwain Charity Association and the Women‚ Society in Umm Al Quwain. According to Hessa Sohail, Director of the Umm Al Quwain Charity Association, “Given the huge turnout during the preliminary workshop, we expect the participants of Umm Al Quwain to perform very well and achieve honourable results, especially since they have a high level of skill and proficiency in the art of Emirati cooking.

And the Ras Al Khaimah workshop witnessed a large turnout of participants for the Emirati competition organised in co-operation with the Women‚ Association. The participating teams showed their skills in the preparation of traditional Emirati cuisine, including sweets, in addition to other aspects such as home innovations.

For an online version, please visit: www.smeadvisor.com/2014/10/tastetesting/

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19 - 20 NOVEMBER 2014

ENDORSED BY

MEYDAN HOTEL, DUBAI, UAE

OFFICIAL HOST

OFFICIAL COMMUNICATIONS PARTNER

WOMENOMICS the next emerging market TAKE PART in making change happen UNITE with business and through leaders from across the globe PARTICIPATE to the expansion of a modern and inclusive economy

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MOVERS & SHAKERS

Public/Private sector partnership the key to unleashing future success

Building firm commercial links between large public entities and the SME space is the kind of initiative that supercharged Angela Merkel’s Germany and the ‘tiger’ economies of Singapore and Taiwan. Yet now, we’re due to see a similar programme of immensely valuable links here in Dubai - and we’re privileged to speak to one of the foremost mentors of the new approach: Majid Al Marri.

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MOVERS & SHAKERS

Dubai is a city that makes headlines on a global scale and on a regular basis. Now, building on its achievements to date, the emirate’s leaders are poised to execute its next phase: and it’s no exaggeration to say that the plans released to date have been phenomenally ambitious.

In achieving that ambition - which will largely be pegged on burgeoning sectors like infrastructure, development, tourism and hospitality, as regulated and licenced

by DTCM - one message will stand out above all others. We’re delighted that it can be showcased here in the pages of SME Advisor.

Speaking exclusively to SME Advisor about his roles at DTCM and Za’abeel Palace Hospitality, Majid Al Marri reveals the key to Dubai’s next wave of success will lie in strengthening partnerships between – • The public and private sector • The UAE’s other emirates • Key GCC cities • The leadership and the media.

Ushering in an age of public/private sector collaboration - which can be the dawning of an ambitious and promising new era for SMEs - Al Marri says: “We have to work hand in hand to become and to remain on the top 10 list of global destinations.

“This is about my passion for public/private sector unity. I want to create a stronger and more transparent relationship with the key stakeholders in Dubai’s growth, to show the world what we have.”

“Sectors like hospitality, development, infrastructure are everywhere: at home, in the airport, in the hotels and restaurants. This is our culture and this is a unique brand intrinsic to Dubai. We have to take that message everywhere.”

Roadmap for success Dubai already enjoys robust demand from leisure and corporate visitors, but will need to expand its focus in order to reach the visitor targets set.

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In achieving the vision of His Highness Mohammed bin Rashid Al Maktoum, Al Marri will continue to lead teams across DTCM and Za’abeel Palace Hospitality with two primary aims: to increase the number of families visiting the emirate and nurture more airline partnerships, following the success of the recent Emirates and Qantas alliance.

Broadening the scope, Al Marri will also use his extensive experience of regulations, licensing and international travel, as well as an education at London Business School, to boost Dubai’s profile on the global stage.

“Looking at what Dubai has achieved already, the world knows that when we announce something we are promising it and it will happen.

“We know from the numbers that the visitor arrivals will continue to increase, the number of projects and hotels will increase. Everywhere we are putting hands together to show that we are reaching our goal,” he adds, echoing that hospitality isn’t just his job but a lifelong passion.

He continues: “As an Emirati I want all the best things to be in my home and I also want this for all the other Emiratis, the residents and visitor: I want to bring those things here for them.”

Working directly with magazines like SME Advisor and sister publication Hospitality Business Middle East, Al Marri will use his industry contacts to bring together an advisory board of the key personalities from Dubai’s hospitality industry, to share their observations on the progress of the industry and its most influential trends. This will be further expanded with a series of professional associations, dedicated to putting key industry professionals face to face with each other.

He elaborates: “This strategic partnership will allow us to bridge the gap between the public and

Dubai already enjoys robust demand from leisure and corporate visitors, but will need to expand its focus in order to reach the visitor targets set.

private sector and will give strength to the industry and that’s what I am aiming to give back to Dubai.”

This promises to be a powerful new era of partnership, where not only Majid’s significant new initiatives, but keynote events such as the winning of Expo 2020 and the construction of the world’s largest air terminal are translated into practical working protocols that SMEs can use to approach, tender and profitably liaise with the enterprise sector: and that has to be good news for tens of thousands of ambitious entrepreneurs across the length and breadth of the UAE.

For an online version, please visit: www.smeadvisor.com/2014/10/ publicprivate-sector-partnership/

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MOVERS & SHAKERS

Productivity principles with david allen

FOR THE MOST PART, AN SME OWNER IS CAUGHT UP IN THE WORLD OF BUSINESS SET-UP, GENERATING REVENUE, MANAGING EMPLOYEES AND BUILDING STRONG COMPANY INFRASTRUCTURE. WHEN CAN YOU THEN ACTUALLY GET THINGS DONE? WHAT CAN YOU DO TO BOOST PRODUCTIVITY AND MASTER YOUR WORKFLOW? WE MET THE MAN WITH ALL THE ANSWERS – WORLD-RENOWNED BUSINESS COACH DAVID ALLEN.

Tell us about your bestseller – Getting Things Done (GTD)?

to you, review and reflect upon it in relation to the whole, and then engage your resources with intuitive trust.

Five steps to boost productivity

1 Capture 2 Clarify 3 Organise 4 Reflect 5 Engage

Collect what has your attention

After twenty years of researching, developing, and implementing a methodology for achieving stress-free productivity, based upon thousands of hours spent desk-side with some of the best, brightest, and busiest people in the world, I decided to write the manual for it. That’s what Getting Things Done is.

Could you tell us more about your five phases of mastering workflow?

In order to get any situation under control so you can focus, you will utilise these five steps. Whether you’re managing your kitchen or your company, you will need to collect and capture what has your attention, clarify what (if anything) to do about it, organise it according to what it means

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As a business owner, how can you transfer efficient workflow management skills to your employees? In other words, how can you integrate it within the company’s business values?

It’s very difficult to legislate processes for individuals – you can really only hold them accountable to their results. But if you are managing your own commitments and intersections with them, with integrity and rigour, it will automatically force them to “step up to the plate” in their own behaviours in order to meet your standards. If you request their complete list of their company projects, and they can’t produce it, that’s a sign they’re not in control.

If they make a commitment to

Process what it means

Put it where it belongs

Review frequently

Simply do

Source: http://gettingthingsdone.com/fivesteps/

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MOVERS & SHAKERS

Effective choices are generated by efficiency on a higher level.

David Allen

www.smeadvisorme.com

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MOVERS & SHAKERS

Constantly ask yourself: where am I going? What’s important and rewarding to me?

Is this information supporting that? Park whatever you find potentially meaningful somewhere that is easy to access when needed.

you that they haven’t kept, that’s data about their performance. GTD is simply about good operational business practices.

With all these planning and organising activities, is there a risk of losing spontaneity – a key trait of a true entrepreneur?

The reason for these best practices is to optimise freedom, creativity and spontaneity. Without them, those are greatly subverted.

How does one maintain a fair balance between the times spent planning/organising and actually getting things done?

You simply need to spend just the amount of time you need to, to trust that what you are getting done is the right thing to be getting done, in the moment. It takes as long as it takes to get to that point. Why would you do anything less?

How can one apply your core productivity and workflow principles in today’s technologically driven environment?

The principles and their techniques are system-independent. Whether you have meaningful input from the Internet, your smartphone, or a conversation in the hall, you must engage with it equally. Technology has simply increased the flow of input and ease of distraction in your world.

There is a lot of talk about how connected we’ve become and 36

how connectivity is driving tremendous business growth.

In reality, however, does connectivity come with its fair share of downsides?

Connectivity is obviously a twoedged sword. We can have intimate, productive, and creative interaction instantly with someone on the other side of the world (how cool is that?!) and we can as easily be distracted and seduced into those engagements, when they may not be the best use of our attention and resources. Don’t shoot the medium.

It’s all simply bringing attention to your clarity of direction and priorities, or lack thereof.

Could you share a few quick tips with our readers to instantly boost productivity?

Write everything down that has your attention. Decide the very next actions required to get closure on all of them. Any next actions that require less than two minutes, do instantly. Park reminders of everything else somewhere that you’ll see when you can do something about them.

We are currently facing a massive information overload. What are some basic principles you could suggest to mentally organise such large amounts of data?

Constantly ask yourself: where am I going? What’s important and rewarding to me? Is this information supporting that? Park whatever you find potentially meaningful somewhere that is easy to access when needed.

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MOVERS & SHAKERS

Being an entrepreneur is a 24/7 job. How do you ensure that you have an adequate work-life balance?

Pay attention to what has your attention—about anything. Your health, relationships, career, finances, etc. Notice when something might be “off” and make good decisions about what you need to do to get it back “on” again.

Does your work teach people to be efficient or effective?

In essence they are the same thing.

Effective choices are generated by efficiency on a higher level. If you want to implement strategy most effectively, it demands utilising your resources optimally, which is efficiency.

Does motivation actually improve quality of work, or purely quantity?

Depends on the focus of the motivation. You can be motivated to work harder, and you can be motivated to work smarter.

What is your favourite productivity mantra that you implement in your day-to-day life?

Using my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas, and soon afterwards clearing all of them out by deciding what to do about them, if anything.

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David Allen in Dubai!

Right Selection is bringing David Allen, bestselling author, veteran coach and management consultant, to Dubai on October 29, 2014. At his seminar, David will speak about how you can achieve the above along with managing the workflow, making clear decisions, learning about prioritization and will help create a Getting Things Done system.

Your books, seminars and other work inspires many individuals and businesses. Who is your personal inspiration or role model?

I have many, about many different aspects of my life. The only person, though, that I ultimately trust as my best guide is my higher self, which I try to access as frequently and clearly as I can.

Finally, what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and business?

Capture what has your attention; clarify what you need to do about it to get it off your mind; organise the inventory of all your commitments, at all levels; review and reflect on all of that regularly; relax, and trust your inner wisdom to engage with the most appropriate thing, in the moment.

For an online version, please visit: www.smeadvisor.com/2014/10/ productivity-principles-with-david-allen/

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MOVERS & SHAKERS

Lights, camera, action!

Through the pages of SME Advisor, we’ve often talked about social media and offered strategies to maximize its positive impact on your business.

For the first time, however, we showcase a business that has been leading a media revolution with its refreshing, yet powerful, ‘social travel’ template.

Emirati brothers Mohamed and Peyman Parham Al Awadhi take us behind the scenes and tell us how Peeta Planet is going places…

Peeta Planet

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MOVERS & SHAKERS

What attracted you to become entrepreneurs and start your own business? Was this something you had always wanted to do?

We have both worked in the corporate world for several years and did our part. We always dreamt of owning our own business and being our own bosses, we’re big foodies too! So that’s when we decided it’s time to embark a new challenge. This is really how everything started.

Tell us a little about Peeta Planet.

What was your inspiration behind Peeta Planet? How did this come about?

Peeta Planet is a “social TV” travel show. We don’t go to the tourist attractions and we don’t use guidebooks; instead we opt for a more authentic experience, exploring and encouraging social travel; discovering cities through the lens and know-how of the locals. Wherever we travel, we make an effort to get to know the young, inspiring, local innovators and change makers, who are shaping their cities through their work – whether through art, music, technology, food or philanthropy. These proactive individuals and groups allow us to experience the cities through their eyes.

Initially, Peeta Planet started off as a social experiment. We were planning a vacation to Sri Lanka, and after building a large and loyal following from our gourmet shawerma restaurant – Wild Peeta – we took to social media and asked our followers to plan our trip! We depended on our followers to book our hotels, recommend our food, sightseeing, activities everything!

All the while live-tweeting with us on our journey using the hashtag #PeetaPlanet.

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Something clicked for us then: This was not just social media—it was social travel, a revolutionary idea back then.

We saw a business opportunity, and a great experience and went forward with the idea.

Who is the target audience of your TV show?

Our audience consists of passionate people, who believe in the value of cross-cultural collaboration and dialogue; travelers, who are endlessly curious about the world; and change makers, interested in great ideas that are applicable on an international scale.

So far, our primary viewership has been based in the GCC and the Middle East but thanks to the power of the internet and social media, we’re gaining popularity in other markets as well including Eastern and Southern Africa, Latin America and Australia.

While having a TV show seems – and is – quite glamorous, at the end of the day you are very much entrepreneurs running your own small business. How do you balance these two sides of your life?

Between the two of us, we manage most of the day-to-day running of Peeta Planet, with Mohamed overseeing the creative and contentrelated aspects and Peyman overseeing more of the business, administrative and logistical functions.

We are so lucky to have such an amazing team behind us, we are really one big family. We’ve travelled together, eaten together, taken on new adventures and experienced new things together. We don’t know what we’d do without them!

Be relevant, and always make sure that you listen to your audience and see what they want out of your business.

Do you plan to grow your TV show with the same business template as your retail business?

Over the next few years we’re hoping to bring Peeta Planet to television networks and screens across the world, and spread the Power of the Peeta further. We plan to increase our Arabic language integration as well, and add new features to the show and brand that will help keep it fresh, and up the game in terms of engagement and interaction.

Your company is a classic example of using social media to leverage business growth. Can you share a few secrets behind your social media strategy?

We strongly believe that the secret really lies in ‘Engagement’. We engage our followers in everything we do, we make them part of our decisions and through that, we have become one big ‘tribe’.

People don’t want to keep hearing what you are saying all the time, this is not what social media is about. Social Media is all about give and take; you share, communicate and engage, this is how the story keeps going.

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MOVERS & SHAKERS

We currently have about one million followers across social media platforms with more than ten million online impressions since the show’s inception.

Our audiences increased by more than 500 per cent over the past year with many other pages tripling or doubling in followers, and we believe the numbers will keep growing. So I guess we’re doing something right!

Working closely with social media, and technology in general, can have its fair share of challenges as well.

For instance, bandit messaging or unhappy customers and so on. How do you deal with such situations?

Being a social media driven show, we rely on our followers engagement so when we get any negative comments or feedback, we adapt a more personal approach. We take all our followers comments and opinions and try to understand why they are negative and then turn them into positive. Like we said, it’s all about engagement. It is worse to ignore or delete negative comments, than embrace them and deal with them and try to turn things around.

During your extensive travel, do you find yourself learning different things that you eventually implement within your business to improve it?

Every day on the road is a new adventure, so to list the things we’ve learned would be bit difficult!

However, we noticed the one thing that was common with everyone we’ve met would have to be passion.

These people are so passionate about what they do. We tell the stories of amazing young innovators and how they’ve beaten the odds to achieve great things with limited resources.

So we try to always stay passionate with what we do.

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You’ve recently announced a partnership with DTCM. Tell us a little about this initiative.

We are currently filming #MyDubaiTrip, where we partnered up with Dubai’s Department of Tourism and Commerce Marketing (DTCM), to produce a 12-episode travel series for the Emirate of Dubai and conduct the world’s largest tourism campaign bringing the top Instagramers from around the world to experience thoughtfully curated itineraries created by some of Dubai’s leading social media personalities.

What are some other exciting plans in the pipeline? What can your viewers and followers expect in the months to come?

We are partnering up with Instagram on a very exciting project. We will organise something called an Instameet, celebrating Instagram’s 4th anniversary. So basically, an Instameet is an event where people gather in a pre-determined place, at a set time, to take photos then upload them to Instagram; it also a time and place for them to meet and mingle with other serious instagrammers in their community. We also always have exciting projects ahead, so stay tuned!

As entrepreneurs, what were the biggest challenges you faced during your initial stages?

We wouldn’t call it a challenge, but the most vital thing for us was building and sustaining a fully organic community.

Creating a strong and loyal following is the key to our business.

What is some advice you would give to aspiring entrepreneurs looking to start their own business?

Be passionate, trust in what you are doing and trust in the process. Starting your own business is never an easy and smooth thing, but it is part of the process and you should enjoy every moment of it. Be present; be present with all things new and don’t be afraid to embrace them. Be relevant, and always make sure that you listen to your audience and see what they want out of your business.

You were recently seen at the Clinton Global Initiative (CGI). What was the experience like?

It was so surreal, we still don’t know how this happened! We hosted what was considered to be the most important panel in the conference. We had Matt Damon and Gary White on our panel, former President Clinton opening the session and President Obama giving the closing remarks. It doesn’t get better than this!

It has been such an amazing experience, just being part of this event and having the opportunity to share our story, and those of others who are doing their part within their communities – truly fulfilling. We met some of the most interesting and important people in the US and from around the world. We definitely feel blessed to have been part of CGI this year, and we’d love to participate again in the future.

For an online version, please visit: www.smeadvisor.com/2014/10/lightscamera-action/

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EDUCATION

Behind the scenes

what goes into creating a young successful entrepreneur In our previous issue, we featured five young entrepreneurs, who have not only dreamed of setting up their own businesses but have actually turned these dreams to reality. An underlying sentiment that was echoed by each one of these entrepreneurs was that they couldn’t have gotten to where they are now without their mentors at the American University in Dubai (AUD).

So we decided to go behind the scenes and take a look at the educators’ point of view. We present to you an insightful interview with Dr. Shahin Bahrami, Professor of Entrepreneurship at AUD.

Dr. Shahin Bahrami, Professor of Entrepreneurship at AUD

Education is a critical part of an individual’s formative years. Whether you had a formal education or a vocational one, what you learn and who you learn it from becomes a big and important piece of how you will bring yourself up in the future.

AUD is continuously committed to encouraging and fostering innovation and entrepreneurship throughout its student body. Furthermore, it firmly believes that its role as an educational institution is important in supporting each individual’s goals. To this end, the university places emphasis on the educational, professional and personal growth of each student. We asked Dr. Shahin on how they fulfil these roles as educators…

Many people would say that entrepreneurs are born, not made.

Do you believe management education can take the place of ‘DNA’ and spur anyone on to better entrepreneurial performance?

While there are some people who are naturally apt in certain areas

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of entrepreneurship, such as spotting opportunities, the process of entrepreneurship as a whole is considered to be an educational process. According to research, whether one becomes an entrepreneur or not is a function of environment, life experiences, and personal choices.

So the answer to your question is a definite yes – in this case management education can take the place of “DNA”.

Do you teach entrepreneurism as a course in itself, or in relation to other business studies?

Entrepreneurship is a course in itself, however, we bring in concepts from other areas of management. The reason is that an entrepreneurial venture or any start-up has to be managed properly in order for it to succeed as a business entity. That is why a number of management concepts have to be integrated into the course in order to present the students a holistic view of how to become a successful entrepreneur.

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EDUCATION

Typically, SMEs in the GCC have been buyers of innovation, not the primary innovators. Do you see this trend starting to change?

At this point I can only make a prediction based on the trends that I have been observing over the last several years. There seems to be a heightened emphasis on, as well as awareness of the entrepreneurial process and its benefits to the economy and the society in general. One could cautiously draw the conclusion that in time this emphasis and awareness may lead to actually promoting innovation within the business community in this region.

Do you see many alumni go on to become successful entrepreneurs?

Why do you think others remain ‘blocked’ and don’t?

Yes, I have seen our alumni going on to opening their own businesses, and some have been quite successful. Some have remained blocked, as you say, because of a lack of funds. As professors, we endeavour to give our students the best entrepreneurship education and we try to equip them with the right tools; however some remain “blocked” because of a lack of motivation usually brought on by fear to take on the challenge of opening their own business.

When alumni go into the business world, do you see a pattern in terms of the kind of sector they go into?

It is a bit early to come up with concrete patterns right now, but generally I have seen female entrepreneurs to be more attracted to fashion-related businesses, while male entrepreneurs seem to be drawn to food-related ventures. These patterns may be shifting, and more research needs to be done.

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Do you feel that the SME sector in the region is destined to be led by the trends and pricing structures set by SMEs in the world’s dominant economies?

I believe the high degree of globalisation at the present as well as the increasing prevalence of online shopping may force the SMEs in the region to adopt the pricing structures of the world’s largest economies. Shoppers today have easy access to prices of commodities in other countries due to ever increasing popularity and ease of use of online shopping.

The American University in Dubai offers a wide range of entrepreneurship related courses both in the undergraduate and graduate level. The Bachelor of Business Administration and Master of Business Administration programmes aims to provide students with the right management knowledge, skills and abilities and enhance their leadership capabilities for future growth. These programmes include:

Undergraduate level BUSI 301 | BUSINESS RESEARCH MGMT 301 | PRINCIPLES OF MANAGEMENT MGMT 431 | LEADERSHIP MGMT 441 | ENTREPRENEURSHIP MGMT 461 | MANAGING CHANGE AND INNOVATION MKTG 361 | MARKETING RESEARCH

What signals do you look for in students that tell you this person might be a future business leader or success story?

Graduate level MGMT 601 MANAGING ORGANISATIONS AND LEADING PEOPLE MGMT 621 | LEADERSHIP

These would be students who show a sincere interest, enthusiasm and motivation in learning entrepreneurship concepts.

time before we will see ‘techno-SMEs’ flourishing here. The speed of innovation is so high in countries like the US or Singapore that competing with them will be tough if not impractical at the moment. But that does not mean that we would have to wait for a very long time for techno-SMEs to appear here.

I believe the ever-changing landscape of technology may shift in a way that will actually create opportunities in this region for the techno-SMEs to emerge.

To what extent do you teach students about the practicalities of business start-up and the challenging quest for funding?

I am happy to say that these topics are covered in detail not only in lectures and their corresponding exams, but also in case studies, as well as in a business plan that the students are required to submit as the course project.

Do you think we will start to see the rise of the ‘techno-SME’ here, in the way that happened in Singapore and the USA? I can only answer based on assumptions driven by the existing trends. My expectations are that it will take some

What percentage of students are so motivated by their courses that they typically start microbusinesses while they are still studying?

So far I have seen a small percentage but I find it encouraging because I feel we are building the road to becoming entrepreneurial one step at a time.

For an online version, please visit: www.smeadvisor.com/2014/10/behindthe-scenes/

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WORKSPACE

CLOUD - or blue sky thinking?

Cloud computing is offering the world a number of advantages which are streamlining business practices. By helping to cut costs and centralise a company’s data, more and more enterprises are turning to the service. Despite the advance of the trend however, a range of quirks and gaps in the cloud are worth understanding before jumping aboard.

Sajeev K. Perunnelly, Division Manager, Alpha Data

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The principles of accounting haven’t altered much over the past 500 years. Over the last few decades however, the needs of businesses have changed dramatically. The explosion of information requirements, the changing global economic landscape, the evolving regulatory and competitive environment, and the rapid adoption of the internet and mobile technologies has led to a

need for smarter and faster systems to keep pace with the times. As a result the floodgates for ERP finance and accounting systems have been opened to meet the demand.

Cloud-based financial management architecture enables businesses to address current challenges with precision. This virtual advent provides on-premises accounting systems at its core while also offering improved

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WORKSPACE

Cloud-based financial management architecture enables businesses to address current challenges with precision.

payback periods when compared to traditional on-premises delivery options,” says Sajeev K. Perunnelly, Division Manager at Alpha Data.

“Government and public sector customers are compelled to move towards a government initiated community cloud model while small and medium business will greatly gravitate towards public cloud offerings of local and internationally prominent players. Banking and telecom sector enterprises are large enough to build their own private cloud infrastructure.”

business insight, increased agility, and the strengthening of internal controls.

The finance department has a particular responsibility which include the funding of departmental budgets, the investment of a company’s capital, and the adherence to strict compliance rules. And since finance often has the final say on major IT investments, it stands to

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reason that finance decision makers should additionally have a grasp on evaluating the benefits of cloud computing.

“Based on many recent analyst reports, a cloud computing model helps customers save up to 50 to 67 per cent in the life cycle costs of computer equipment and infrastructure. It also delivers greater investment returns and shorter

Configuring the cloud Cloud computing is evolving at a rapid rate and with good reason.

Companies of all shapes and sizes are adapting to this new technology due to a number of reasons.

With economic instability and reductions in capital expenditure (CAPEX) budgets, SMEs are keen to trade owned IT costs for solutions that can be logged as operating expenditures (OPEX). With cloud computing, instead of making a large up-front investment in IT infrastructure, staff, and resources, customers rent computer capacity, saving the CAPEX budget for revenue-generating efforts. Cloud offerings such as Oracle Cloud Services, for example, offer a

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WORKSPACE

When enterprise is managed by a cloud service, it is faster to implement and easier to change. This helps companies go about their business more quickly and reduces long-term costs.

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manageable operating cost that can be scaled up or down based on need.

Cloud computing reduces the cost of hiring, training, and managing IT staff. Managers are also able to reduce their spending on tech solutions. In the end, this means managers spend less time working on IT and more time thinking about the business.

When enterprise IT is managed by a cloud service, it is faster to implement and easier to change.

This helps companies go about their business more quickly and reduces long-term costs.

Despite the vast number of advantages, there are a few pitfalls which may impact those relying too heavily on the cloud. Security is the biggest concern due to a company essentially giving away private data and information in order to participate. Privacy concerns exist hand in hand with companies having their security exposed in the cloud.

A large scale dose of trust must exist due to users needing to believe that their cloud service vendors will protect their data from unauthorised users.

Another major disadvantage is the implicit dependency on the provider which companies must rely upon. It is difficult, and sometimes impossible, to migrate from a provider once you have used its service. If you wish to switch to a different provider, it can be incredibly cumbersome to transfer huge data from the old provider to the new one.

The entire setup is dependent on internet access, thus any network or connectivity problems present will render the setup useless. All systems may face dysfunctional behavior from time to time. Outage and downtime is existent within even the finest of cloud service providers.

Since the applications and services run on remote, third-party virtual environments, companies and users have limited control over the function and execution of the hardware and software. Moreover, since remote

software is being used, it usually lacks the features of an application running locally.

The Cloud in the UAE Many CIOs in the country are seeking cloud based solutions to provide the performance, scalability and accessibility demand, which has led to increased awareness of the opportunities offered by cloud computing. “Customers in the UAE have realised that the change to the cloud is inevitable. The question today is not whether to change or not, but how soon,� poses Perunnelly. “Infrastructure as a service (IaaS) has been very popular among customers who are in the initial stages of consuming public cloud solutions.

Microsoft has been successful to a large extent in positioning their cloud solutions such as Office 365, Microsoft online services and Azure, in the top bracket. In software, early adopters such as salesforce.com have

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WORKSPACE

Many organisations in the UAE now want to take advantage of the major cloud benefits like quick deployment of IT resources, shared resource usage, and the ability to monitor usage. According to the research firm International Data Corporation (IDC) total spending on cloud delivery in the UAE is expected to record an increase of 33.6 per cent year on year. IDC states that growth is happening in the private cloud, but expects public cloud to catch up in the near future as more and more global providers begin to push their offerings aggressively in the region.

Only a handful of organisations in the UAE have gone the full distance in terms of converting these highly virtualised environments to full-fledged private cloud deployments.

made good inroads into customers’ cloud strategy. Many additional organisations will start evaluating and considering software as a service in the areas of CRM, HRMS, incentives and compensation applications, big data and analytics, etc.”

“The UAE has been at the forefront of Business Analytics and big data adoption in the Middle East with over 40 per cent of CIOs in the country planning investments in these sectors.

With ever increasing demands and expectations of customers and citizens, big data and analytics will be the key to success in the areas of government services and population statistics, health care, retail, banking and telecom.”

“High competition, dramatic increase in claim events and eroding underwriting profits have forced many demanding industries like health care insurance providers to follow alternative approaches to conventional methods of delivering IT services to their internal as well as external customers,” he says.

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Switching to the cloud The very idea of another system overhaul can terrify an IT or finance manager. But ultimately, this transition is easier and more cost-effective than continuing to operate an obsolete ERP system whose annual maintenance cost runs from 20 per cent to 25 per cent of the original system cost. Because cloud services are typically sold on a subscription/contract basis, spending is redirected from capital acquisition to pay-as-you-go operations.

Organisations should look for the right opportunity to change their financial management systems to cloud-based systems. They should seriously consider switching to the cloud if they have a pending ERP upgrade, a change in company leadership or strategy, a merger or acquisition, or any changes that require an accounting reformat, new regulatory requirements, or a need for improved governance.

For an online version, please visit: www.smeadvisor.com/2014/10/cloud-orblue-sky-thinking/

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WORKSPACE

The flexible workplace advantage While the recent global digitization revolution has presented opportunities for trans-national reach, it has also created a fiercely competitive market, where businesses are forced to compete on an international level. This means, as a business owner, you now have to look for innovative ways to enrich customer proposition, decrease costs, increase efficiency and mobilise your workforce.

SME Advisor explores the changing landscape, and asks Kory Thompson, Country Manager – UAE, Regus, how the global workplace provider can give your business a winning edge…

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Walking into the Regus Downtown offices, located in the heart of Dubai, it’s hard to ignore the fullyfurnished, plush individual offices, the courteous and professional staff, the intricate details integrated into each area (the lobby, for instance, has ‘think-pods’ for private breakout sessions), and the generous hospitality of the support service team.

But, there’s more to this than ‘learning by example’. The flexible workplace and serviced office experience is surely much more than just a prime location and a beautiful space, as we discovered in a candid chat with Kory Thompson, Country Manager – UAE, Regus.

Working in a serviced office “Location, flexibility and cost-control

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WORKSPACE

there is the option to upgrade or downsize your office space according to the unique requirements of your business.

Right from the outset, we realised that in order to succeed in this industry sector, we needed to put our customers first.”

What packages do you offer to SMEs in the region? “Our packages for SMEs include the following – • Business Package • Serviced Offices • Meeting Rooms • Video Conferencing • Businessworld

are three major advantages that, as the global workplace provider, we offer to a business. Today, one of the major challenges – and cost factors – associated with starting a new business is looking for a suitable office space with reasonable rent levels. By providing SMEs with office space that is customised to their needs, at a low cost, we have taken one of the biggest hurdles out of their

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way, allowing them to concentrate on developing their business,” explains Kory Thompson, Country Manager – UAE, Regus.

“We put a lot of thought and consideration into creating solutions for our SME customers, giving them what they truly need. We foresee every client requirement and ensure that we offer them everything they expect to see in their office space.

Each package has a different USP and can be customised according to your size, digital, financial and location requirements.”

What do you think makes serviced offices suitable for SMEs? “There are several reasons such as – • High-speed internet connectivity • Dedicated staff to answer your calls when you are busy or away • Access to state-of-the-art technology • Trained reception staff to warmly greet your customers and business partners on arrival • Flexible payment models These are some of the prime advantages of working with the leader in flexible workplaces.”

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WORKSPACE

One of our most attractive mobile working solutions is the Businessworld package which gives you access to a range of exclusive Regus Business Lounges.

Your partner in local and global expansion With the international symposium Expo 2020 on the horizon, businesses in the UAE are increasingly looking to extend their global reach and maximise opportunities in fastgrowing and emerging markets.

Resonating this sentiment, PwC’s 17th Annual Global CEO Survey found that 14 per cent of CEOs believe that their main opportunity for growth lies in new geographic markets. As a business owner, being restricted to one local jurisdiction is no longer an option.

What can Regus do to help your business achieve its global ambitions? “Let me explain with an example. A lot of our customers are businesses operating across different markets, but they often don’t have sufficient resources to be physically available in every country. For such clients, we offer the Regus Business Package, which gives them the facility to use a business mailing address from over 2000 locations worldwide.

As part of the Package, they can also choose to have their calls answered on a local number, with the option to redirect any important calls to their personal telephone.”

“We acknowledge the fact that as businesses grow, they have

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changing needs. This is the very reason why we offer packages tailored to companies at every stage of growth. Our range of products, as I mentioned previously, includes Serviced offices, Business Packages, Meeting Rooms, Video Conferencing, Businessworld and Third Place locations. As you can see from the raft of services we offer, there is something for businesses of all sizes, across all industry verticals and operating within any geographical market.

“Additionally, there is the option to upgrade or downsize your office space according to the unique requirements of your business. In fact, even locally, your business has the flexibility to move as it needs to. So, if you have signed a major contract with a client in Abu Dhabi and need to urgently shift your base there, we can move you within a reasonably short period of time.”

Does this flexibility also extend to costs and payments? “Yes, an evolving business goes hand-inhand with evolving budgets. Hence, we offer flexible payment options to our customers, including a monthly payment plan. Our customers only pay for what they need and when they need it. Would you believe the

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WORKSPACE

entry level package is actually less than AED 100 per month?! More about this in a second…”

Doing business ‘on-the-go’ Further fuelling business growth in new global markets is the recent digital revolution, where companies have access to critical sales, profits and employee productivity data ‘on-the-go’. In fact, a Regus survey reported that 66 per cent believe that offering flexible working makes employees more loyal. What can Regus do to facilitate mobility and flexible working within my business?

“Using the Regus mobile app, currently available to iPhone users, you can book a meeting room or day office, locate the nearest Regus Centre using GPS and share details of Regus locations with business partners and other stakeholders. For instance, if you have a business meeting scheduled in Tokyo tomorrow, you can book a board room overnight, subject to availability.

“Of course, our packages also give you access to any of our 2,000 locations. If you are in a sales meeting and need to rush back to your office to print out a contract, you can come into the Regus branch nearest to you and work out of there, saving you crucial travel time.

Kory adds: “One of our most attractive mobile working solutions is the Businessworld package which gives you access to a range of exclusive Regus Business Lounges.

With high-speed Wi-Fi connectivity, print/scan/fax facilities and unlimited coffee/tea service, these Lounges allow you to get work done even when you are ‘on-thego’, without wasting time or money on coffee shops. This package is particularly suitable for businesses who have a mobile workforce and would like to boost productivity of employees working remotely. At a starting rate of AED 89 per month, this is a practical, affordable and useful solution.”

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The power of a network As an SME with limited resources, building a network of trusted partners is as important as creating a valued customer base.

Will Regus give me access to its worldwide network of 1.8 million members? “Most certainly. We have an interactive business portal called MyRegus which connects all our clients across the globe.

We currently have 2000 locations over 104 countries, which means that as a client, you can instantly extend your reach to anywhere in the world.

“Locally, we organise several events throughout the year for our clients across all seven centres in Dubai. These events are usually fantastic networking opportunities and allow for great client interaction.”

The Regus edge With several reputed serviced office providers in the region and countless up and coming names, how does Regus differentiate itself – especially within the SME space?

“Our key differentiator is the unrivalled network we’ve created, which brings with it cost effectiveness, flexible working and productivity,” says Kory.

He further adds that at Regus, they like to ‘play to their strengths’, which means that they don’t promise additional facilities such as visa or licensing, because these are out of the realm of a serviced office provider. They do what they are best at doing – and that is perhaps what makes them the global leader in flexible workspaces!

Kory Thompson is Country Manager – United Arab Emirates for Regus. Kory is responsible for managing Regus operations and developing its network in the UAE in order to match the rising demand for flexible workplaces. Prior to joining Regus in January 2013, Kory was Managing Director EMEA and Indian Ocean for Mandara Spa – the world’s leading hotel and resort spa management company.

Prior to that Kory spent over 14 years in the hotel industry, as a consultant with a prominent Hospitality Consultancy in the Middle East and earlier in Hotel General Manager roles in Canada and London, UK.

For an online version, please visit: www.smeadvisor.com/2014/10/theflexible-workplace-advantage/

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THE NEXT LEVEL

IT’S A GATHERING THAT WILL MAKE BUSINESS HISTORY IN THE UAE. IT’S THE FIRST EVENT IN THE REGION THAT WILL TRULY CELEBRATE THE GLOBAL SME SECTOR - THE VIBRANT THREAD EMPOWERING COMMERCE AROUND THE WORLD. IT’S THE FIRST-EVER OCCASION ASSESSING THE IMPACT OF INTERNATIONAL TRENDS ON THE LOCAL SME SCENE - LOOKING AT WHETHER COMPANIES IN THE GCC CAN BE WORLD-CLASS INNOVATORS OR WHETHER THEY ARE DESTINED TO BE FOLLOWERS, ENTRENCHED IN THEIR OWN LOCAL TRADITIONS AND HABITS. IT’S NONE OTHER THAN SME BEYOND BORDERS.

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The SME sector is the powerhouse of global business. From the street cafes of Bangkok to the boutique hotels of Copacabana Beach. From the biotech businesses of Singapore to the car showrooms of Los Angeles.

It’s the sector richest in innovation Forbes magazine says 81 per cent of all innovations start with SMEs. Not to mention the volatile growth that’s speeding the world’s recovery from financial crisis.

SMEs are the hub of business across the world - the bedrock and foundation of economies like Italy, Morocco, South Korea and Japan. They’re a global network that’s setting new performance standards and leaving their big-brother Enterprise cousins in the shade.

No wonder that SMEs are the foundation stones of the East/West corridor. They’re the gatekeepers of the commercial superhighway that’s shaping the world and cross-fertilizing a new business culture like never before.

SME Beyond Borders totally captures this global agenda. It assesses the trends and crystallizes the topics that business owners need to know and it relates these to the local level, asking the questions the really matter.

It’s a world-class conference and awards programme. Glittering, unique, spectacular - SME Beyond Borders travels the length and breadth of the East/West corridor.

The heart and soul of the SME universe At the epicentre of the far-reaching, worldwide SME network is a jewellike hub - a uniquely-connected environment, closer to the SME dream than any other. A place that is distinguished by its centuries-old trade routes; a place that is the admiration and talk of the world; a place where SMEs can be hi-tech, online thinktanks or traditional one-stop shops and where the SME support network is second to none.

That place is the UAE. It is home to more than 500 celebrated training programmes for entrepreneurship and leadership skills, and where the very concept of the entrepreneur is part of the nation’s DNA. Where you’ll find nearly 100 government grants and incentive programmes, more than 100,000 SMEs and total commitment to making SMEs the core of the nation’s success. It’s also home to the majestic, inspirational venue that is the Madinat Arena - a venue with technical and logistical attributes second to none and a powerful, inviting home for SME Beyond Borders.

Themes that supercharge change in the SME sector For two days, November 30 - December 1, SME Beyond Borders provides a world-class SME spectacle: a dramatic forum for ground-breaking content, advice and discussion. At its core, SME Beyond Borders focusses on the themes that are critical for SMEs today. Each theme will have its own cluster of world-class speakers (criteria: an international reputation and a track record of ground-breaking publications).

Every theme follows the model of – • Cluster of VVIP presentations • Head-to-head session with VVIPs led

by Moderator • Panel discussion with fresh speaker line-up, combining local SME champions with prime movers of international business.

www.smeadvisor.com

WILL YOU GO BEYOND BORDERS? It’S NOW OR NEvER. Nov.30 - Dec.1, Dubai SME Beyond Borders makes business history in the UAE. It’s the first-ever occasion assessing the impact of international trends on the local SME scene - looking at whether companies in the GCC can be world-class innovators or whether they are destined to be followers, buying-in innovation at a price they can’t control.

You’ll find out about the ‘East/West Corridor’: how all SME business is now interconnected around the world and that regional SMEs are in effect competing in challenging global markets.

We’ve brought together top-name, global VIPs, regional champions and local captains of industry.

To debate key themes like: • How to be competitive in a global market and ensure you’ve got the data and intelligence you need • Finance beyond borders – getting the solutions you need by thinking international • Customer loyalty and how you create it In the spectacular setting of the Madinat Arena, Dubai, this is an occasion like no other - focusing the eyes and ears of the region.

Register as a delegate now - and discover life Beyond Borders.

register at www.smebeyondborders.com

Presenting Partner

Strategic SME Partner

Gold Sponsor

Gold Sponsor

Supporting Partner

Knowledge Partner

Official Publication

Organiser/Publisher

THE NEXT LEVEL

Themes for Day One - International trends and the dynamics of local markets • SMEs in the global economy - and why there is no level playing field The global economic picture has never been so full of uncertainty and geopolitical strife. The leading economic superpowers increasingly press for higher standards (sustainability, governance, transparency of pricing, etc.) - but is this leading to a ‘two-tier’ SME world, where the elite nations are leaving the majority of SMEs behind?

• The social media explosion and the new global branding standard Worldwide, SMEs cannot afford not to take part in the social media phenomenon - but the reality is that, over and above reaching a target audience - social media is allimportant in building a brand. How can SMEs best understand the new role and stand out in the ferocious competition of the global branding maze?

• Finance beyond borders - sourcing an international solution With the worldwide web opening up a global presence, SMEs have an incredible opportunity to source the best finance opportunities from lenders across the globe - no longer restricted to local providers whose attitudes may not suit their business paradigm. Market intelligence and customer service via the online paradigm. How best to go about this quest? This session introduces the techniques and the strategies from those who know.

Themes for Day Two - Making local SMEs the drivers of change • The ‘East/West Corridor’: opportunity or reaffirming the status quo?’

As East meets West in a global SME paradigm, can Asian SMEs be at the forefront of change - or are they destined to be buyers of other people’s innovation, and suppliers

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forever competing on price? Are we likely to see the rise of a global-style SME commanding solid margins, financial audit and Best Practice?

• The customer: service, sustainability and loyalty As the management guru Tom Peters remarked, all that truly matters is the customer. This theme explores the spectrum of strategies for distinguishing an SME’s customer service offer and facilitating repeat business, whether in person or online. It reviews the latest developments in loyalty programmes and assesses whether there is a service dichotomy between international practice and the GCC. • The NBAD-Moody’s Banking Masterclass This is a hands-on workshop dedicated to informing SMEs how to get the best from their various banking relationships. It takes the shape of an expert workshop, with head-to-head sessions and customized expert feedback.

Whether an SME needs to know how to apply for finance, trade credit arrangements, factoring or global markets services, this masterclass explains simply and clearly how best to proceed.

• Launching ‘Achieve’ The official announcement of an inspiring new magazine, dedicated to women’s entrepreneurship and business empowerment in issues the region. The session is hosted by leading women entrepreneurs whose pioneering achievements inspired the new ground-breaking new title.

• A unique educational platform Tomorrow’s Entrepreneur The event then features a powerful initiative, pioneered by SME Advisor magazine, reviewing the groundbreaking work of local colleges, universities and schools in building an entrepreneurship infrastructure in the region. The best educational

initiative is then honoured with the presentation of a completely new industry award - Tomorrow’s Entrepreneur. A powerful accolade endorsed by the Khalifa Fund and Dubai SME. SME Beyond Borders - focusing the eyes and ears of the region Any event is only as strong as the coverage it receives - as strong as the media legacy and imprint it creates for its key stakeholders. From the outset, an exceptionally comprehensive media strategy and platform has been an organic part of the SME Beyond Borders concept. This is designed to maximise event exposure across the full spectrum of through-the-line media.

SME Beyond Borders has a media strategy which includes: • Full videography and pre-formatting for broadcast media.

• Dedicated event microsite and presence on main SME Advisor website • Exceptional commitment to social media - both in terms of pre-event build-up, messaging and on-the-day trending initiatives.

• Full editorial coverage - both preevent and post-event - in SME Advisor magazine.

• A programme of e-blasts across the full CPI Media Group Business Database.

• A raft of more than 20 separate, targeted promotions for the Stars of Business Awards.

The reality is that for SME Beyond Borders, the planning, execution and delivery of media exposure is a core, fundamental part of the event itself - a foremost priority for the dedicated event teams. The overall objective is to ensure that SME Beyond Borders is quite simply the highest-profile business event in the GCC.

For an online version, please visit: www.smeadvisor.com/2014/10/sme-beyondborders-global-models-for-success/

www.smeadvisor.com

presents

BUSINESS INTELLIGENCE FOR INTERNATIONAL TRADE www.tradeandexportme.com

Contents

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

Finance 60 Plastic fantastic Marcello Baricordi, Visa’s General Manager for the UAE and Global Accounts Lead MENA, tells Rushika Bhatia about Visa’s attractive SME offer…

Trade & growth 64 The Business of food Italfood owner Laura Clerici and Sales Manager Vineet Varma share the day-to-day realities of SME life.

In order to be relevant SMEs need to constantly be aware of market developments such as technological changes, socioeconomic factors and the like. p68

TRADE AND EXPORT MIDDLE EAST

68

72

64

Strategy 68 Keeping your SMEs relevant Dr. Ashraf Mahate, Head of Exports Market Intelligence, Dubai Exports, on how SMEs can diversify their offerings and reinvent their business.

VIP interview 72 On the move with RSA Logistics Abhishek Ajay Shah, Director of Operations & Business Development, RSA Logistics, shares key insights on the company’s growth agenda and trends that are shaping this prolific logistics sector…

Event preview 76 Attend the 10th World Islamic Economic Forum Demonstrating a greater commitment towards becoming the Capital of Islamic Economy, Dubai is set to host

Foreign non-GCC investors are only allowed to invest in the Tadawul indirectly through mutual funds, corporate portfolios and swap arrangements. p80

one of the largest gathering in the Islamic Economic scene. We give you a preview of this landmark event.

78 A meeting with the trade titans We present a premier occasion that will see a gathering of highlevel and influential leaders from the global trade scene – Global Trade Development Week EMEA 2014.

Legal 80 Opening up the Saudi stock exchange Acknowledged experts Abdulaziz Al-Bosaily, Partner, Al Bosaily Law Offices, and Saud Alarifi, Senior Associate, Clyde & Co., take a closer look at the current status of the stock exchange and the decision’s potential ramifications.

TRADE and export middle east

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

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

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

Khalil Saqer Bin Gharib Corporate Communications Director, Dubai Customs

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

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

Peter Fort CEO, Ras Al Khaimah Free Trade Zone

For more information, please visit www.tradeandexportme.com

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www.tradeandexportme.com

finance

Plastic fantastic: how a global payment solutions provider can help your SME

We’ve often argued that cash is the ultimate SME dream and have offered advice on a myriad of ways to liberate your business cash flow. In the following feature, however, we present to you a fresh perspective on managing cash flow, controlling your business spending, increasing revenues and improving cost-efficiency. Marcello Baricordi, Visa’s General Manager for the UAE and Global Accounts Lead MENA, tells Rushika Bhatia about Visa’s attractive SME offer…

Marcello Baricordi, Visa’s General Manager for the UAE and Global Accounts Lead MENA

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Businesses often argue that cash is king. How do you think a global payment solutions provider steps in and makes a difference?

From our experience in working with small businesses around the world, we know that they have similar issues of growing their business, managing cash flow and meeting monthly expenses. Cash flow management is critical for any company to survive and electronic payments can improve cash management. Electronic payments can help improve areas such as managing payments, create efficient payment collections process, ease moving of funds and reduce administrative process.

A vast majority of small businesses today accept debit and credit cards. What are top reasons you attribute to this trend? Do you have key statistics on the uptake of POS systems within the SME retail industry?

While cards are the generally accepted form of payment for everyday spends, retail and hospitality, a vast majority of small businesses today, trade with non-card payments. This trend is due to the dependence on cash and the perceived convenience that cash offers. There is significant value in terms of doing away with cash and Visa has been working closely with its member banks to tap this largely non-carded segment and get them to commence card acceptance.

How can global payment solutions provider – such as yourselves – help an SME in its quest for international expansion and growth?

For SMEs, networks and relationships are that much more vital to their success. In 2011, the World Travel & Tourism Council released their findings in a paper, Business Travel: A Catalyst for Economic Performance, indicating that the majority of executive respondents believe business travel to be essential in increasing sales (75 per cent) and developing supplier partnerships (70 per cent).

Business travellers also estimated that 50 per cent of prospects became customers when an in-person meeting took place, compared to only 31 per cent when meetings were not conducted face-to-face.

This is unsurprising, as culturally, this is how business relationships are made and strengthened in this region. It is clear that small businesses need to travel to achieve their growth ambitions. As a global company with a local presence, Visa believes it is essential to make travel as safe, efficient, and relevant as possible.

Creating a bespoke travel experience for SMEs can be a trigger for economic growth. Visa has worked with local and international financial institutions to create products enabling efficiency and safety. Depending on their needs, SMEs can choose from a suite of features, including cards that come with travel insurance and even cards that provide immigration services.

Do you have any solutions that help ease the accounts receivables process?

Accepting card-based electronic solutions offers small businesses many benefits. For instance, credit and debit cards are widely used all over the world; enable faster receipt of funds which improves cash flow, enhances working capital; creates convenience; reduces risk and processing time i.e. no hassles associated with wire transfers or letters of credit etc. A rising trend that we are seeing is being driven by innovation in the mobile space. The

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FINANCE

SME needs

Business travel to achieve their growth ambitions:

75%

believe it’s essential in increasing sales

70%

believe it’s essential in developing supplier partnerships

50% Source: Business Travel: A Catalyst for Economic Performance

evolution of smartphones & tablets to be used as mobile terminals to accept cards is a convenient & cost effective way to receive payments & manage receivables. Smartphones or tablets makes card acceptance portable and therefore easy to use.

What kind of data protection measures are in place today to ensure complete confidentiality of business information?

Visa has developed numerous resources including best practice guides, webinars and a website dedicated to consumer and small business security with simple, cost effective, easy-to-understand steps small business owners can take to greatly improve their security. Data security is fundamental to securing payments and maintaining customer trust. The best advice for small businesses is: be proactive. Don’t wait until you have had a breach or lost

www.tradeandexportme.com

valuable data to take stock of your company’s data security practices.

Make security a priority and start by taking common sense measures to make your cyber security as strong as the padlock you put on your store’s front door.

Additional resources for small businesses: • Tips and Tools for Small Merchant Businesses: •Tips and Tools for E-Commerce Businesses: http://usa. visa.com/download/merchants/datasecurity-ecommerce-small-merchanttips.pdf

What happens in case of a cyberattack? What kind of remedial measures can businesses take?

We know that hackers are opportunistic—they change tactics to find points of weakness and exploit vulnerabilities. Today’s criminals look for weaknesses across a company’s

of prospects became customers when a faceto-face meeting was conducted

system—in both payment areas and non-payment areas. For example, a hacker may gain access to a company’s non-payment area, then inject malware into the system to gain access to the payment area. This tactic highlights the impact that security issues outside the payment space can have on the payment side. It also reminds us that basic risk management practices such as using strong passwords and optimizing tools to detect malware are important across a company’s system. Once criminals get the data, they follow one of two strategies.

They use the data for fraudulent use, like the ATM cash outs. They have a strong network of criminals, and are global and geographically distributed.

Alternately they sell stolen credentials to other criminals.

To maintain confidence of system users, Visa and other stakeholders have made enormous investments in data security and fraud prevention. To ensure we protect Visa cardholders, we employ multiple layers of security that work together to help us manage

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finance

Consider using encryption or tokenization to help secure payment data and minimize its value to data thieves.

fraud. From anti-counterfeit features, to network-based fraud detection, to data security standards to help keep sensitive information secure. At Visa, we describe our approach as a “Layered Defence.” We employ multiple, interconnected strategies that work together to create a strong defence.

Keeping fraud rates at all-time lows at that scale is no small feat. What we’ve learned and applied over the years is that there is no single approach to security – there are many.

If a business accepts payment cards, it is important to have security steps in place to ensure their customers’ information is safe.

Their respective bank or payment services processor can help them prevent fraud. In addition there are free resources and general security tips available to learn how to keep sensitive information—beyond payment information—safe. Below are some quick tips that can help: Know the Who, What, Where of Your Sensitive Data Make a list of the type of customer and card information you collect and store—names, addresses, identification information, payment card numbers, bank account details and social security numbers. It’s not only card numbers criminals want; they’re looking for all types of personal information, especially if it helps them commit identity fraud.

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Ask yourself, where do you keep this information and how is it protected?

Determine who has access to this data and if they need to have access.

If You Don’t Need It, Don’t Keep It Once you know what information you collect and store, evaluate whether you really need to keep it.

Businesses may not realize they’re keeping unnecessary data until they conduct an audit. Removing and destroying sensitive data from storage makes it harder for criminals to steal it. Work with your bank or payment processor if you are unsure what data to keep or delete and ask if they have any rules governing data storage that you should be aware of.

If you’ve been using card numbers for purposes other than payment transactions, such as a customer loyalty programme, ask your merchant processor if you can use tokenization instead. Tokenization is a new technology that replaces card numbers with an alternate number that can’t be used for fraud When You Choose Tools or Services, Make sure they’re secure The payments industry maintains lists of hardware and software providers that have been validated against industry security requirements.

Visa also maintains a list of service providers that have been validated against industry security requirements.

If you outsource your payment application and/or network installation and maintenance, have a conversation with your third-party integrator or reseller about security and ask if the payment software installed is compliant with the latest version of the Payment Application Data Security Standard (PA-DSS).

Isolate payment systems from other, less secure programmes, especially those connected to the Internet. For example, don’t use the same computer or point of sale system to process payments and surf the Internet.

If you use a computer at your business to handle cardholder data or facilitate payment card transactions, make sure you install an anti-virus programme and update it regularly. If your business has an outward-facing Internet protocol address (these are Internet-facing entry points to your network), it also is essential to implement a firewall and conduct quarterly vulnerability scans.

Control or limit access to payment systems to only employees who need access.

Make sure you implement remote access applications securely or eliminate remote access if you don’t need it so that criminals cannot infiltrate your system from the Internet.

Take Advantage of Security Tools and Resources Work with your bank or processor and ask about the anti-fraud measures, tools and services you can use to ensure criminals cannot use stolen card information at your business.

Consider using encryption or tokenization to help secure payment data and minimize its value to data thieves.

For e-commerce retailers:

We recommend that retailers verify the CVV2 code. A CVV2 is the three digit number on the signature panel that can help verify that the customer has physical possession of the card and not just the account number.

For an additional layer of security, retailers can use services such as Verified by Visa, which prompt the cardholder to enter a personal password confirming their identity.

For brick and mortar retailers:

Retailers should swipe the card and get an electronic authorization for the transaction

Retailers may also want to consider upgrading their payment terminals to accept EMV chip technology.

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FINANCE

EMV chip technology introduces unique dynamic values for each transaction, making account data less attractive to steal.

When working with a merchant (in this case an SME), do you evaluate and discuss key risks and put together a risk management template?

Visa collaborates with the broader payment community on innovative data security technologies and fraud prevention strategies to keep payments safe. No entity can protect the system by itself. That’s why we work to foster an environment of partnership, engagement and accountability across the industry. We work handin-hand with the broader payments community – from cardholders to merchants, financial institutions to service providers, regulators to law enforcement. Our collective success maintaining trust and confidence of consumers depends on our ability to work together, share information and coordinate our defences.

Risk considerations would be similar, regardless of the size of a retailer. Visa has updated content on its webpages, security conferences and webinars which is targeted at merchants of all sizes. Visa provides acquirers and merchants alike an exhaustive list of information, whether it be best practices, guides, education, data security, encryption or risk tools and solutions.

As a small business in the trading sector, what are the costs associated with setting up a payment solution?

As mentioned above, merchant relationships are owned by acquiring banks. A small business wishing to set up a Payment Solution for its business,

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needs to factor in the bank charges, which are usually structured as an upfront deposit, equipment rental and transaction based fees. Exact costs differ by type of service required and acquiring bank chosen.

Do you offer any customised solutions to suit an SME’s individual needs?

For payment solutions providers such as Visa, who have strong local ties to businesses in the region while also capable of offering global solutions and platforms, providing targeted and relevant access is the next step to helping local SMEs achieve their goals. Our commercial payment solutions – such as the Visa Business card – are designed to meet the needs of small businesses.

The Visa Business card is an easy way to separate company and personal expenses, manage business and travel spending, and simplify bookkeeping. Many business commercial card programmes also offer discounts and deals, which are not normally available to personal credit card cardholders, to help businesses save on essentials. For instance, Visa Commercial Offers features a wide range of business products and services from established merchants to help cardholders achieve costs savings. These programmes include discounts on business travel and accommodation, support services such as courier and office supplies as well as other professional products and services designed for SMEs. We are committed to creating commercial products and solutions that enable entrepreneurship and SMEs to prosper – through our commercial payment solutions like the Visa Business card and Visa Commercial Offers.

How do you see the benefits of company credit cards in terms of managing staff expenses and evaluating individual staff behaviour?

Managing outgoings on a business card allows small businesses greater control of business spending - you can track expenses by category; issue cards to key employee; set spending limits; and better manage your company’s cash flow. To further aid small businesses, Visa is introducing two new platforms: Visa IntelliLink for Small Business, which allows businesses to track and manage their expenses more efficiently, and Visa Payment Controls, which allows business owners to customise how, when and where their Visa Business Card and their employees’ Visa Business cards can be used by setting rules based on merchant categories and various other criteria.

Do you believe that ‘cleared funds’ have advantages that even cash doesn’t have?

Access to funds whenever and wherever you need it gives businesses more malleability to scale up, increases revenue and cost efficiency. With a Visa Business Debit Card, businesses can conveniently access their funds from their checking account. On the other hand, Visa Business Credit Card allows businesses to take control of purchasing convenience with generous available credit. What’s better is that our commercial cards can be used anywhere that accepts Visa - that’s tens of millions of merchants worldwide.

For an online version, please visit: www.tradeandexportme.com/2014/10/ plastic-fantastic/

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TRADE & GROWTH

The Business of Food

Set up in the prestigious RAK Free Trade Zone, Italfood is committed to creating fresh, healthy and high quality cheese.

With its simple, practical and traditional approach, the company has become one of the leading names in its sector.

In the following feature, we speak to Italfood’s owner Laura Clerici and Sales Manager Vineet Varma, who share the day-to-day realities of SME life.

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www.tradeandexportme.com

TRADE & GROWTH

How did Italfood come about?

Italfood was first founded in 1955 as Casearia Romano in the beautiful town of Lettere which is located in the southern part of the Gulf of Naples, Italy. The company has a rich history in supplying Fresh Mozzarella cheese in Italy for more than 50 years. The new generation of our artisan cheese makers built a new technologically advanced company in Gragnano and Milan and recently relocated to the UAE. So in the year 2010 Italfood FZC was born in the UAE, with a vision of providing our valued clients with high quality products and excellent service. Italfood has invested the main part of its capital in Italian high technology machines, in order to provide our clients the real Italian mozzarella cheese using milk from UAE milk farms.

Our goal is to produce cheese according to Italian culture and technology, using fresh local milk to provide clients with healthy and high quality cheeses without any preservatives. Our production takes place every day in order to dispatch the products to the market within 48 hours only. This makes our cheese Healthy and tasty and it gives us an edge over our competitors.

In few years Italfood FZC has increased its client base offering its products and services to the most important five stars hotels and restaurants in Dubai, Abu Dhabi and all GCC areas. Further to restaurants, the Company created a special line of products for retailers.

The second step will be to export across all the Middle East, in order to fulfil our production capacity.

Which sectors are you catering to and what can you say is your USP? www.tradeandexportme.com

Our USP is our passion to create Italian Mozzarella cheese using only the fresh ingredients without any preservatives.

We deliver our freshly made Italian cheese to renowned 5-star hotel groups, pizza chains, café’s & restaurants all over UAE on a daily basis. You can also find our range of products at your nearest Spinney’s and Geant hypermarkets.

Our USP is our passion to create Italian Mozzarella cheese using only the fresh ingredients without any preservatives, our commitment and our service.

Given the weather conditions in the Middle East where it is summer for most of the year, how do you go about the manufacturing and distribution process of your products? And what other challenges are you facing?

Italfood is an ISO 22000 certified company and we follow the most stringent food production and delivery standards. We have temperature controlled vehicles which deliver our products right at our customer’s doorstep. So right from the time when the raw materials arrive at our factory till the time our cheese is delivered to our customers, the cold chain is never broken.

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TRADE & GROWTH

How do you think can the food trading industry benefit from the upcoming Expo 2020 in Dubai?

OVER

300

We see great potential and are confident that the Expo 2020 would bring in a significant number of brands as well as customers from all parts of the world to the UAE. The food trading industry as well as the food manufacturing industry will greatly benefit and we hope to see a substantial increase in revenues.

food recalls are reported every year resulting in

325,000

hospitalizations

75M food-borne illnesses

5,000 deaths

HUGE EMPHASIS ON FOOD SAFETY Source: Food-Related Illness and Death in the United States, Centers for Disease Control and Prevention, Volume 5, Number 5, October 1999

DID YOU KNOW?

UAE

KSA

3.1% cagr

second largest food producer in GCC, accounting for 12.1% of the total production

largest producer of dairy products in the region, followed by the UAE and Oman

forecasted growth in food cosumption in GCC for the period of 2012-2017

Source: GCC Food Industry by Alpen Capital

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Are you looking at expanding your operations to markets outside the UAE? The Business opportunities in the UAE and the regional markets are of huge proportions.

The UAE spans more than 83,600 sq. km (32,270 sq. miles) and is located in Western Asia on the Arabian Peninsula in the Arabian Gulf. With its strategic location between Europe and the Far East, the UAE is the obvious choice of location for multinational companies wishing to tap the lucrative Middle East, sub-Continental and African markets, with their combined population of 1.4 billion people.

Dubai with a GDP growth of over 16.7 per cent per annum has become fastest growing economies in the world. In fact, during the past decade, Dubai’s growth was the fastest.

The UAE is one of the world’s wealthiest countries. The third-largest proven oil reserves in the world.

The fourth-largest gas reserves in the world. And these reserves will continue to provide energy for the UAE for more than 150 years.

The import/re-export ratio makes the UAE the third most important reexport centre in the world after Hong

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TRADE & GROWTH

Currently, we are exporting our products all over GCC. Looking at the current demand of our products, in the coming few years we might set up another manufacturing unit in Qatar or Saudi Arabia.

Why did you decide to set up your business in RAK Free Trade Zone (RAK FTZ)?

One of the main reasons that brought us to build our business inside the RAK FTZ was the possibility of having total percentage of ownership and a trustable “business partner� like the free zone authority.

Kong and Singapore. Dubai Ports are already the principal gateways of re-export and redistribution, along with channels in Kuwait, Jordan and Oman. World container port traffic is predicted to increase by 74 per cent to 92 per cent by 2010 and the container terminals in the Middle East and Indian Subcontinent will be areas of undercapacity, considering the predicted growth figures.

Currently, we are exporting our products all over GCC. Looking at the current demand of our products, in the coming few years we might set up another manufacturing unit in Qatar or Saudi Arabia.

How do you see your company in the next two to three years?

Italfood is a very dynamic company, always looking for new challenges. Innovation, research and development are the most important parts of our strategy.

In the next two to three years we see ourselves developing more product lines. We will have more market presence in retail as well as the foodservice channels here in the UAE and we will certainly have a dedicated export division for markets of the Indian Sub-continent.

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How has RAK FTZ Authority assisted you in setting up and promoting your company?

The RAK FTZ Authority assisted us in developing our project even though our business is really not common, since dealing with fresh food industry has been a challenge for both. At the beginning lots of services and standard procedures had been discussed and customized in order to allow our company to establish and develop its business.

What according to you are significant bottlenecks in the food trade sector?

In our specific field you cannot develop the business without a deep knowledge of cheese processing and manufacturing procedures. The flexibility and the customization of the product and process are the key of success.

For an online version, please visit: www.tradeandexportme.com/2014/10/thebusiness-of-food/

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Strategy

Keeping your SMEs relevant AS THE FAMOUS SAYING GOES: THE ONLY THING THAT IS CONSTANT IS CHANGE, AND THIS PROVES TO BE TRUE EVEN FOR SMEs. WITH THE ADVENT OF THE DIGITAL AGE EVERYTHING AND EVERYONE MOVES AT A FAST PACE AND IT’S VERY HARD TO KEEP YOUR COMPANY RELEVANT. IN THE FOLLOWING FEATURE, DR. ASHRAF MAHATE, HEAD OF EXPORTS MARKET INTELLIGENCE, DUBAI EXPORTS, HIGHLIGHTS HOW SMEs CAN DIVERSIFY THEIR OFFERINGS AND REINVENT THEIR BUSINESS.

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Why do some business survive while others go out of business or are taken-over?

This question has been extensively studied by academics and business practitioners. The terminology of their findings may differ, but all studies point to the same answer – an organisation needs to stay relevant to the buyer.

It does not matter whether the buyer is another business or the end user.

Relevance is not just about the product or service required by the customer, it also points to the price, delivery channels, service levels

and so on. It is not only important for the survival of an SME, it is also an essential factor for its growth towards the next stage of development. In fact, firms that are continuously relevant in the views of their customers are more likely to grow faster and become high performers. The only way firms can maintain relevance is through continuously reinventing themselves.

Even when sales are high, profits are surging and the future looks bright and beautiful, an SME should innovate and regularly

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Strategy

A textbook example is Netflix which has radically changed the manner in which people rented movies.

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reinvent itself to keep its relevance in the market. As a matter of fact, if a business is doing well that’s the time when it should reassess its performance so that the ‘rot of compliancy’ does not set it. When sales and profits are high companies tend to feel that the good times will last forever and forget that their success was due to meeting customer needs. Business owners should bear in mind that customer needs are not static and evolve with a whole host of factors. Corporate history is filled with well-known examples of companies that became

complacent and in the process did not continue to meet the changing needs of their customers. A textbook example is Netflix which has radically changed the manner in which people rented movies and in the process took away business from Blockbuster which until then was the industry leader. At the turn of the millennium Netflix was a small company with a market valuation of US$ 50 million who was able to meet the needs of its customers. In response to the threat from Netflix, Blockbuster made a few cosmetic changes to its business model but

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Strategy

In order to be relevant SMEs need to constantly be aware of market developments such as technological changes, socio-economic factors and the like.

kept its old store format. Today, Blockbuster is merely a memory in the corporate scene and Netflix is now a company with a market capitalisation of over US$ 27 billion.

In order to be relevant SMEs need to constantly be aware of market developments such as technological changes, socio-economic factors and the likes. They also need to be able to track competitors both small and large so as to better understand how the industry is changing.

Moreover an understanding of industry dynamics is not the only important factor that an SME should remember but also the ability to be distinctive especially in a crowded marketplace. This may mean that an organisation should enhance their capabilities so as to drive the business forward. Most SMEs are resource constrained even when sales and profits are high but nevertheless they need to ensure that they have a dedicated team or even a person that is able to benchmark the company with industry players. In the process the SME should be able to identify the leading edge changes that will shape the industry. The important aspect about leading edge factors is that their development starts many years prior to implementation. Therefore, a company needs to plan ahead and formulate change strategies even before the change is required so that it has the necessary systems and processes in place to make the transition. This invariably means that an SME needs to have a parallel strategy process to deal with the short term issues and a longer-term one that helps it make a transition to the next level of relevance.

Taking the next steps…

Once an SME has decided that it wants to be continuously relevant to its customers what can it do in addition to regular benchmarking, market scanning and trying to understand the market dynamics? Here are some points to remember as you move towards reinventing your business:

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FIRST

An SME needs to move out of its comfort zone and do whatever is needed to maximise value creation while keeping to the core values. Of course this could be risky and sometimes a little scary but then the old rule of “no risk no reward” prevails. In many respects it is easier for an SME owner to go beyond their comfort zone because unlike an employee they cannot simply say that, “that’s not my job.” For an SME owner everything is their job and in the process of owning and running their business they will have acquired new skills and opportunities which can be exploited with the same passion as their existing business.

SECOND

The SME needs to fully understand what the customer will want and how to deliver this and in the process rethink their customer base. This will require re-examining every aspect of the business from the product or service to the delivery channels. Take Snappy Snaps as an example, it started primarily as a photographic development laboratory. When digital photography became popular it has changed its products to service the needs of commercial, interior and personalised printing services to cater to professional photographers, businesses and individual consumer needs. Now the company offers a wide range of services from developing photographs to photograph restoration. In doing so it has reached out to a new market segment and has utilised new and more relevant delivery channels.

The reinvention has been successful because the company was able to understand what the customers wanted and its product profile was able to adapt to meet these needs.

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Strategy

THIRD

Before any change is implemented a company needs to develop a well-researched and thought-out plan. An SME needs to remember that change involves an element of risk and therefore through careful planning this can be reduced but never eliminated. More importantly, a clear vision and an effective planning process will lead to a business plan which can be a guide to the success of the business transformation. A business plan for reinventing your business in many ways is like developing one for a new business. This means that the SME will have to start from scratch without any of the ‘hangups’ from the previous business model. In doing so the company can objectively look at its processes and procedures and see how it can be revised to make them more efficient and business friendly. Essentially a business plan allows the SME to cost the change and understand the financial implications of what it will take to beat the competition. It will also enable the SME to measure its performance with prior expectations to ensure that it is on the right track.

FOURTH

Timing is of critical importance and some organisations are fortunate enough because they can operate the new business alongside the old one. This means that they have enough time and resources to test the new business model and ensure effectiveness and make necessary adjustments. SMEs that do not have this luxury obviously need to test pilot their new business model through industry focus group meetings or other similar methods. Whether an SME can run parallel business model or not there will come a time when it needs to make a complete switch to the new business. However, letting go of the old business model requires them to develop an exit strategy.

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The importance of an exit strategy is to ensure that prior liabilities and relationships are taken care of properly and with honesty and transparency. At the same time the switch to the new business model will require the SME to train existing as well as new staff, negotiate with new vendors, build new partnerships, and so on.

FIFTH

An effective communication strategy is of utter importance. An SME needs to effectively relay the message of their transformation to their existing as well as new target market. In developing the new business model the SME will have created unique selling propositions that are better than its competitors and leverage this to a more value enhancing market.

They would have to invest time and money in implementing a communication strategy. To date, social media is a huge part of most companies’ marketing plan and it has dramatically transformed the manner in which SMEs reach out to their audience. Social media channels allow SMEs to quickly and easily get their message across to their customers anywhere around the globe in an innovative and effective manner with minimal costs. Reinventing and being relevant also implies that an SME should use communication channels that best reach their target audience.

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

He read Economics at University College London, followed by a Masters in International Economics and Banking at the University of Wales in Cardiff. Dr. Mahate is a professional educator and received his training at the Institute of Education (University of London).

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

Being relevant as important today as it has always been. Being relevant implies that the company needs to be ahead of the game and understand the direction that the industry is heading towards and is ready for change.

For an online version, please visit: www.tradeandexportme.com/2014/10/ keeping-your-smes-relevant/

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VIP interview

On the move with RSA Logistics What started out as a family-owned business in 2007 is now one of the leading names in the logistics industry. We met the man at the forefront of this fast-paced success – Abhishek Ajay Shah, Director of Operations & Business Development, RSA Logistics. In an exclusive interview with Trade and Export Middle East, he shares key insights on the company’s growth agenda and trends that are shaping this prolific sector…

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Tell us about your company’s extensive raft of services. What differentiates you from other competitors in the market?

We provide Third Party Logistics services, it’s as simply defined as that.

There are two primary reasons why we stand out and have enjoyed tremendous success in the industry so far. First is technology; we’ve invested in technology – not just in back-end operational support systems but also in customerfacing solutions. We’ve created portals for our customers to get information on time, whenever they want it, however they want it. We’ve also created mobile apps to enhance transparency and benefit our customers, so that they are fully up-to-date.

As a company, we are still very young, agile and nimble. This allows us to easily adapt to the needs of our customers. This is exactly what we have done in the case of technology.

We have created tailor-made solutions.

The second aspect is specialised training for our staff. As an SME, it

is crucial to take care of the bottom line, we have to be profitable to continue our growth. But, without enhancing the team’s skillsets and providing them with suitable tools to work with, it is impossible for the company to move in the right direction. We also invest heavily in health and safety training – we’ve embedded it into our culture.

Additionally, we look at our staff’s career development by providing regular educational and training programmes across the different industry areas.

Do you provide an end-to-end service to your customers?

Our objective has always been to create a one-stop-shop solution for our customers. It’s not always possible as there are certain restrictions that come into play. However, we try to achieve this as much as we can. We are happy to offer our support whether it is supply chain management or end-to-end visibility,

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VIP interview

or working with partners our 0clients require us to, so whatever it takes for them to get the visibility they need.

How has being based in Dubai World Central (DWC) facilitated the growth of your business?

We initially heard about DWC in 2005, when it was launched as the first multimodal logistics platform in the region.

Multi-modal means that there is a meeting point between road, sea and air cargo. For any trade entity or logistics solution provider, it is very exciting to have such levels of accessibility.

We signed our first lease in 2007 and became the first company to begin operations in March, 2009. The attraction was always that this was going to be home to the world’s largest airport.

When you build such a large airport, you have to build a city around it and this brings in the need for infrastructure and invariably the need for logistics.

From a logistics point of view, converting sea cargo to air cargo has

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Abhishek Ajay Shah, Director of Operations & Business Development, RSA Logistics

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VIP interview

With the launch of the new airport, the turnaround time from sea cargo to air cargo can be as short as eight hours.

always been a big market for this region as storage and labour costs are slightly cheaper here than in the Europe – and that is what really developed in the early 2000s. Manufacturing was done in the Far East, then brought and stored in Dubai, deconsolidated and value added and then air-freighted out to Europe, for example. But, since Dubai International airport was about 40-45kms away, it still had an 18-hour turnaround time.

With the launch of the new airport, the turnaround time from sea cargo to air cargo can be as short as eight hours. These are the kind of benefits that we enjoy being based in Dubai World Central.

This was of course a big move for a family-owned business. How did you make the decision?

We were the first to open in 2009 and it was a big step for a family business like us – we did suffer significantly for the first 18 months due to the downturn.

However, we’ve worked alongside DWC as they’ve built customs gates, drafted the regulations and policies and so on. We received a lot of support from the authorities, which made the entire process a whole lot easier.

What are some immediate benefits you’ve enjoyed with the opening of the new airport? Do you find that regional and global markets are more accessible with the new airport?

We’ve developed some new trade links.

The time factor has improved – it takes lesser time. The fact that there are two airports means that there are more planes, more routes and it signifies that Dubai has a wider reach to the rest of the world.

How do you see the Expo 2020 impacting the logistics industry?

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History shows that the Expo has always played a critical role in the economic growth of a country. The amount of investment that has been committed to the Expo is very sizable.

There are a lot of construction projects in the pipeline providing opportunities for everyone around, including the logistics sector. The Expo gives a large opportunity to grow our business.

Currently, however, nothing has really broken ground; I believe everyone is in the planning stages and it will take some time before see benefits from the Expo we fully materialise.

Do you see the Expo bringing in an influx of smaller businesses that might compete for the market share?

I think this has already started happening. We see a lot of businesses working here, who have come in to survey the market and begin their research. We’ve experienced some steep growth this year and we will see gradual growth from now on.

What are some key challenges you’ve faced in this sector?

One of the biggest challenge we’ve faced in the recent past is the increased cost of operations. For instance, we try and provide accommodation for our blue collar workers and rents have just sky-rocketed following the Expo 2020 announcement. There have been tremendous hikes, which our company has no choice but to absorb. Whereas, in reality, the opportunities to benefit from the Expo aren’t really here yet, at this point of time. However, the cost impact has already been created today.

Being at the helm of a fastgrowing organisation, what do you see as your biggest challenge

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VIP interview

I’m pleased to say that we have indeed signed a joint venture agreement with the TALKE Group, which will provide a highly specialised chemical warehousing facility in Dubai.

in terms of managing and leading business development?

Quality control is a major challenge, given that we have set the bar very high with our customers. Another area that requires special attention is idea execution – very often you might stumble across a brilliant idea but actually putting it into action demands a lot of time and effort.

You’ve recently entered into a joint venture agreement with the German chemical logistics specialist ALFRED TALKE Logistic Services. Tell us a little about that.

I’m pleased to say that we have indeed signed a joint venture agreement with the TALKE Group, which will provide a highly specialised chemical warehousing facility in Dubai. The services offered primarily include high quality, responsible and sustainable storage solutions for Hazardous and non-Hazardous chemicals.

We are obviously moving into a new era of technology. How have you implemented this within your business to improve your offer to the customers?

We offer several technological solutions to our customers – all stemming from our Warehouse Management System (WMS).

Anything that goes in or out of our facilities is monitored by our WMS. This is at the core of our technological solutions.

We’ve noticed that a lot of our customers request reports and want access to their transaction history. For instance, they want to know which products are expiring in the next three months so that they can push their sales teams to sell those.

As a result, we decided to create a web portal in-house, which acts as a

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window between our customers and us. People can request new products, access inbound transaction history, enjoy automatic paperwork and invoicing, import documents, check proof of delivery and so on.

Another portal that is in its Beta version is dedicated for images. In logistics, there is a set procedure where you have to click pictures of the containers – closed and open. Previously, it was a very cumbersome process. To ease the process, we have introduced a new mobile app, using which our staff can click and upload pictures directly on their handheld devices. These are technology innovations that are not only helping our team but also our customers by improving their overall experience.

Finally, the third area we are working on is reporting. We have tried to create reports for our customers in different formats enabling them to keep track of their products. These can be sent on demand or weekly, and include details such as transaction history, batch numbers, expiry dates on products that have a shelf life, etc. Essentially, we are an extension of our customer’s own inventory management team.

How do you see the company moving forward in the next couple of years?

Our biggest strength, as a company, has been to create assets across different industry verticals such as automotive, building materials, chemicals and food.

We have specifically built facilities for these different verticals. Our growth strategy is continued towards investing in these assets and will be CAPEX heavy –investing in trucks or frozen food for example. Plus, in Kenya, we are currently building facilities for FMCG cargo.

For an online version, please visit: www.tradeandexportme.com/2014/10/onthe-move-with-rsa-logistics/

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Event preview

Attend the th 10 World Islamic Economic Forum DUBAI WILL HOST THE 10TH WORLD ISLAMIC ECONOMIC FORUM (WIEF) AT THE MADINAT JUMEIRAH CONFERENCE CENTRE FROM OCTOBER 28 TO 30, 2014. ORGANISED UNDER THE THEME, ‘INNOVATIVE PARTNERSHIPS FOR ECONOMIC GROWTH’, THE FORUM HOPES TO ATTRACT MORE THAN 2,500 PARTICIPANTS FROM 140 COUNTRIES.

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The 10th World Islamic Economic Forum (10th WIEF) will be convened in Dubai, United Arab Emirates – a cosmopolitan metropolis that has grown steadily to become a global city and a business and cultural hub of the Middle East and the Gulf region.

The 10th WIEF is a high level platform for leading global government leaders, captains of industries, academic scholars, regional experts, professionals, corporate managers, policy makers, innovators, business leaders and investors to network and

discuss opportunities for business partnerships in the Muslim world.

The Forum will address a myriad of current economic and business related issues with the objective of generating innovative and creative solutions to transform the global economy and promoting business collaborations.

The Forum is expected to attract more than 2,500 participants from all around the world. It is in collaboration between the WIEF Foundation, Dubai Chamber of Commerce & Industry and Dubai Capital of Islamic Economy and

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Event preview

will be held at the Madinat Jumeirah Conference Centre Dubai on October 28 to 30, 2014, with an arching theme ‘Innovative Partnerships for Economic Growth’ which seeks to position Dubai as a leader of global halal industries.

The WIEF is the largest international gathering of heads of government, economic experts and stakeholders to share experiences and knowledge about Islamic economy since its launch in 2004. The event will offer a global platform to form

innovative partnerships based on the seven pillars of the Dubai Capital of Islamic Economy initiative launched in 2013: Islamic finance, Halal food industry, Halal tourism, Islamic digital economy, Capital of Islamic art and design, Centre for Islamic economy standards and certification, and International centre for Islamic information and education.

For an online version, please visit: www.tradeandexportme.com/2014/10/attendthe-10th-world-islamic-economic-forum/

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SPECIAL ATTRACTION: Marketplace of Creative Arts (MOCAfest)

The power of creative industries to enable economic empowerment and social enterprise will be highlighted by Dubai as it hosts the seventh edition of Marketplace of Creative Arts (MOCAfest), the arts and culture festival of the World Islamic Economic Forum (WIEF), from October 28 to 30, 2014, at the Madinat Jumeirah. As a prelude to the event, MOCAfellows, its Artist residency programme for 15 selected emerging talents, will also be held from October 24 to 26.

With the 10th WIEF offering a major opportunity to form innovative partnerships based on the Dubai Capital of Islamic Economy initiative, the two events are of considerable significance, especially since Islamic art and design is a key pillar in the Dubai Capital of Islamic Economy initiative.

A platform for a wide range of arts, from music, cinema, visual arts, literature, poetry, dance and many more, MOCAfest hopes to achieve its tagline, ‘Bridging Business to the Arts’, in bringing together the creative and business world, providing them an opportunity to learn from one another.

Featuring calligraphy, photography, graphic design, fashion, live installation, film festivals, music and poetry recitations, visual arts exhibitions and workshops, MOCAfest will also put the spotlight on the arts and culture of the Gulf region. Transcending the realm of a performance festival, it will host networking sessions, masterclasses and artistic collaborations to explore the potential of the creative industries to drive socio-economic growth.

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Event preview

A meeting with the trade titans Is your company part of the trading sector? Are you looking to extend your reach to global markets? Do you want to rub shoulders with the who’s who of the region’s business VIPs? Attend the Global Trade Development Week 2014 and take your business to the next level!

The largest international trade event for business and government leaders, Global Trade Development Week EMEA 2014, is all set to be held in Dubai from October 27 – 29 at the prestigious Emirates Towers.

The event will attract a gathering of influential business and government leaders, entrepreneurs and academics from over 70 countries.

Global Trade Development week will feature over 120 speakers, panellists and workshop leaders. The event will open with a Ministers and Trade Leaders VIP plenary, followed by four concurrent summits that cover ‘Global Free Trade and Special Economic Zones’, ‘Trade Finance and Industrial Development’, ‘Corporate Real Estate Leaders’ and ‘Global Customs and Trade Facilitation’. The trade exhibition runs alongside the summits and includes leading governments, banking,

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commerce, economic zones, ports, customs, technologies suppliers & consultancies.

“It is time to set a new course for the global economy. The UAE looks forward to hosting a full programme of events that tackle today’s most challenging trade and development issues. The UAE is honoured with the presence of such high-level individuals who are experts in their fields,” said His Excellency Sultan bin Saeed Al Mansoori, UAE Minister of Economy.

Speaking on the importance of the location of the event, HE Al Mansoori explained, “Global Trade and Development Week comes at a special time to Dubai, where the nation is rapidly developing across all sectors, as to prepare for the hosting of EXPO 2020.”

Global Trade Development Week EMEA brings together over 600 high-level delegates from the areas of trade, development, economic zones, trade finance, industrial development, real estate, global customs and trade facilitation; with representatives from across Africa, Americas, Asia Pacific, Europe and the Middle East.

Andrew Keable, Managing Partner and Founder of the KW Group, the organiser of the event, said: “Dynamic trade development plays a critical role for economic growth and accordingly each nation sets ambitious goals, yet there is limited opportunity for trade leaders to meet and collaborate outside

their various sectors. Global Trade Development Week addresses this challenge providing an essential platform to link business and government leaders from across key sectors to exchange ideas, experiences and to seek solutions to drive forward global trade.”

For full details of the programme, exhibition, workshops, site tours and networking receptions, please visit the event website at www.kwglobaltrade.com.

Global Trade Development Week - Quick summary The EMEA Edition is hosted in Dubai under the Patronage of His Excellency Al Mansoori, Minister of Economy. The event will feature 600 G&C Level Trade Facilitation, finance & development leaders, 70+ nations and 120 speakers.

With two international editions each year in APAC & EMEA, The Global Trade Development Week programme of events gathers government and private sector trade leaders across trade facilitation, customs, development, finance and investment. The ambitious programme of events includes a Ministers and Trade Leaders Plenary, four major trade summits, site tours, networking receptions and trade exhibition.

For an online version, please visit: www.tradeandexportme.com/2014/10/ameeting-with-the-trade-titans/

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LEGAL

Opening up the Saudi stock exchange The recent decision by the Council of Ministers to open up the Saudi stock exchange (the Tadawul) to certain nonGCC investors can have a profound impact on regional trade and greatly diversify market holdings.

Here, two acknowledged experts, Abdulaziz AlBosaily, Partner, Al Bosaily Law Offices, and Saud Alarifi, Senior Associate, Clyde & Co., take a closer look at the current status of the stock exchange and the decision’s potential ramifications.

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LEGAL

Many non-GCC foreign investors have been waiting eagerly for more access to the region’s biggest and most liquid market - and the long-awaited move could finally come to pass. The Saudi Arabian Council of Ministers in its meeting held on 24 of Ramadan 1435H (corresponding to 21 July 2014) passed a decision which paves the way for the Capital Market Authority (the CMA) to open the Tadawul to certain investors, at a time it sees fit and pursuant to the regulations to be issued by the CMA. The Chairman of the CMA issued a statement commenting on the Council of Ministers decision. According to this, the CMA, once the statutory procedures are completed, will work on the publication of draft rules for qualified foreign financial institutions’ investment in listed shares, to enable concerned and interested parties to provide their comments and observations on these rules for a period of 90 days after publication.

The CMA will review all comments and observations by the end of this year and will assess the readiness of Tadawul for such a move. In addition, the CMA will coordinate with the relevant government parties prior to the adoption of rules. Based on the above, the market will be opening up during the first half of 2015 for qualified foreign financial institutions wishing to invest in companies listed on the Tadawul.

At present, the Tadawul trade is largely dominated by local retail investors who account for around 90 per cent of volumes traded while foreign investors represent just less than five per cent of the total. For the month of July 2014 the value of shares traded by Saudi investors was SAR 114.41 billion (93.20 per cent) for buying, and SAR 117.11 billion (95.41 per cent) for selling. The value of shares traded by investors from other GCC member states was SAR 3.10 billion (2.53 per cent) for buying, and SAR 2.13 billion (1.74 per cent) for selling. By contrast, the value of shares traded during the same period by foreign investors

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LEGAL

Foreign non-GCC investors are only allowed to invest on the Tadawul indirectly through mutual funds, corporate portfolios and swap arrangements. was a mere SAR 5.24 billion (4.27 per cent) for buying, and SAR 3.51 billion (2.86 per cent) for selling.

Foreign non-GCC investors are only allowed to invest on the Tadawul indirectly through mutual funds, corporate portfolios and swap arrangements. Such arrangements put licensed local firms in position to trade on the market on behalf of a foreign client however such arrangements have proven to be a relatively expensive and inconvenient option. Swap arrangements were first introduced by the CMA in September 2008 which back then was widely seen by financial institutions as a first step towards opening the Saudi market to foreign investors.

The CMA will issue a set of draft rules this month and given that the CMA is understood to be a conservative regulator, it is expected to adopt rules similar to other major emerging economies that have opened up their financial markets. Given that the CMA’s policy is to attract long-term investors rather than short-term speculators, the CMA is expected to link eligibility of the qualified foreign financial institutions to factors such as the value of assets under its management, the value of its investment in the market and the number of years they have been in business. It is likely that there will also be ceilings for foreign ownership of Saudi Arabian companies.

Unlike other Middle Eastern markets such as United Arab Emirates

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and Qatar, Tadawul is not on the MSCI Emerging Markets index as yet, however the opening up of the Tadawul to qualified foreign financial institutions certainly would increase the likelihood of Saudi Arabia’s Tadawul being included in the MSCI Emerging Markets index in the near future.

Tadawul’s total equity market capitalization at the end of July 2014 reached SAR 2,100.25 billion (USD 560.06 billion) making it the Arab world’s biggest market and therefore the opening of Tadawul to qualified foreign financial institutions is one of the most keenly awaited economic reforms from the world’s top oil exporter.

Further information If you would like further information on any issue raised in this update please contact: Abdulaziz Al-Bosaily, Partner E: abdulaziz@albosailylawoffice.com Saud Alarifi, Senior Associate E: saud.alarifi@clydeco.com Clyde & Co accepts no responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in this summary.

For an online version, please visit: www.tradeandexportme.com/2014/10/ opening-up-the-saudi-stock-exchange/

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seabury report

THE NEW GATEWAY TO THE GULF

TECH TRENDS

Maximise business ‘on-the-go’ with these handy apps

iPad special

Rushika Bhatia ,s view...

Air Display Using this app, you can connect your iPad to your computer and use it as an additional screen. While working on an important presentation or sales proposal, you can extend or mirror your computer screen on your iPad. This app is compatible with both Mac and Windows computers.

Note that to use this feature, you have to install Air Display on your iPad and a separate free app on your computer. The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync.

For Mac users, the app allows you to connect to up to four screens – all at the same time!

Apart from the ability to convert your iPad into a wireless display, what’s also attractive about this app is that it allows you to control your computer wirelessly using your iPad.

Price: AED 36.99

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www.smeadvisor.com

TECH TRENDS

Square Register This fantastic application can serve as a mobile point of sale for your business. So, what it does, in reality, is that it allows you to accept credit card payments – including Visa, MasterCard, Discover and American Express. A transaction fee of 2.75% is charged for every time you swipe a card.

The sale amount is transferred to your account within two working days.

Once you download the app, you can sign up and register for a unique card reader solution called the ‘Square Reader’ (this is free). Square Reader encrypts all card details and ensures that the transaction is secure. Once you receive your Square Reader, you can connect it to your device and you are all set!

The application also offers added features such as transaction history, connecting to a receipt printer, creating employee logins and so on.

Price: Free

DocuSign Have you ever been in a situation where your employees need you to urgently sign a contract but aren’t able to physically reach to you in time?

DocuSign solves this problem with its easy-to-use eSignature feature. In three easy steps, you can sign important documents and securely send them to your intended recipient.

First, you have to import the document to your device – this could be from Dropbox, Google Drive or from other select applications. Then, place your signature or any other important legal information you need to include such as initials. Once you have finished working on the document, send it back via e-mail or other notable applications.

What’s particularly great about DocuSign is the great emphasis it puts on security – so that users don’t have to worry about getting into any legal trouble.

Use DocuSign and never miss a deadline again!

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Price: Free for the basic version.

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TECH TRENDS

mPay An initiative by the Dubai eGovernment Department, mPay is a simple application that allows you to make important payments. Once you’ve signed up and entered your payment details, you are good to go!

You can pay your Dubai Electricity and Water Authority (DEWA) bills, Etisalat utility bills, Dubai Police fines, Recharge SALIK and much more.

A handy feature is its ‘auto-recharge’ option using which you can set automatic payments.

Price: Free

What’s hot?

Samsung Unveils Galaxy Note Edge

For an online version, please visit: www.smeadvisor.com/2014/10/maximisebusiness-on-the-go/

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Samsung Galaxy Note Edge Product Specifications Network

2.5G (GSM/ GPRS/ EDGE): 850 / 900 / 1800 / 1900 MHz 3G (HSPA + 42Mbps): 850 / 900 / 1900 / 2100 MHz 4G (LTE Cat 4 150/50Mbps) or 4G(LTE Cat 6 300/50Mbps) *May differ by country and carrier.

AP

2.7 GHz Quad-Core Processor

Display

5.6 inch (141.9mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)

OS

Android 4.4 (KitKat)

Camera

Rear Facing: 16 Mega pixel Auto Focus camera with Smart OIS Front Facing: 3.7 Mega pixel camera with f1.9 Rear Facing Camera: HDR (Rich tone), Selective Focus, Rear-cam Selfie, Beauty face, Virtual Tour Shot, Shot&More, Dual Camera Front Facing Camera: Selfie, Wide Selfie

Video

Codec: H.264, MPEG-4, H.263, VC-1, WMV7, WMV8, Sorenson Spark, MP43, VP8, Recording & Playback: up to UHD

Audio

Codec: MP3, AAC/AAC+/eAAC+, WMA, AMR-NB/WB, Vorbis, FLAC(*) (*) Ultra High Quality Audio (~192KHz, 24 bit) support

Additional Features

Multi Window Ultra Power Saving Mode Voice Recorder (Normal Mode, Interview Mode, Meeting Mode, Voice Memo) Download Booster S Health 3.5 Dynamic Lock Screen Briefing Edge screen UX : Revolving Interaction, Immersive apps(Camera, Video, S Note), Ticker board, Express me, Quick Tools, Night Clock, etc

Google Mobile Services

Chrome, Drive, Photos, Gmail, Google, Google+, Google Settings, Hangouts, Maps, Play Books, Play Games, Play Newsstand, Play Movie & TV, Play Music, Play Store, Voice Search, YouTube

Connectivity

WiFi 802.11 a/b/g/n/ac (HT80) MIMO PCIe GPS / GLONASS / Beidou NFC, Bluetooth® v 4.1 (BLE, ANT+) IR LED (Remote Control), USB2.0, MHL 3.0

Sensor

Gesture, Accelerometer, Geo-magnetic, Gyroscope, RGB, IR-LED Proximity, Barometer, Hall Sensor, Finger Scanner, UV, Heart Rate Monitoring, SpO2 (Dependent on market)

Memory

32/ 64 GB Internal memory + microSD slot (up to 128GB) 3GB RAM

Dimension

151.3 x 82.4 x 8.3mm, 174g

Battery

Standard battery, Li-ion 3,000 mAh, Fast Charging (Adaptive Fast Charging & QC2.0)

* The availability of service may differ by country. * All functionality, features, specifications, and other product information provided in this document including, but not limited to, the benefits, design, pricing, components, performance, availability, and capabilities of the product are subject to change without notice or obligation.

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TECH TRENDS

TO

SET UP YOUR BUSINESS IN THE UNITED ARAB EMIRATES

FLEXI

OFFICES

WAREHOUSES

?

INDUSTRIAL LAND

RAK FREE TRADE ZONE PROVIDES

BUSINESS SET-UP SOLUTIONS

STARTING FROM AED 15,000 (USD 4,000) Quick and easy company set-up Less than an hour drive from Dubai Complete, cost-effective packages including licences and facilities

100% foreign ownership Zero income and corporate taxes Eligibility for UAE Residence Visa

RAK Free Trade Zone Authority - Government of Ras Al Khaimah UAE (Ras Al Khaimah) Tel: +971 7 2041111, (Dubai) Tel: +971 4 7041875, (Abu Dhabi) Tel: +971 2 6994888 Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)

Call +971 7 204 1111 Visit www.rakftz.com Join www.smeadvisor.com

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