SME Advisor Middle East - February 2015 by SME Advisor Middle East

Presenting partner

ISSUE 108

Listen and learn

London Business School on Mentorship

A stitch in time…

The art of budgeting

IN THE

ZONE

Benefit from GLOBAL trends

Economics An exclusive meeting with HE Hani Al Hamli, SecretaryGeneral, DEC

Roam if you want to.. Now data roaming needn’t break the bank

SME FINANCE: WE MAKE IT EASY FOR YOU At Souqalmal.com, we understand the challenges you face with banks when it comes to opening a business account, applying for a business credit card or getting business finance. That’s why we’ve built a section just for your financial needs, where you can compare all the available banking products for SMEs in the UAE. You can also find guides, news and guest pieces by SME experts, all written to help you to make the best decision. We are constantly working on adding special business offers for Souqalmal.com Business Club members. Currently, Souqalmal.com Business owners benefit from special offers

with Aramex and Careem. We will update you as new partners come on board. Aramex: • Save up to 50 percent on all domestic deliveries with Aramex for six months. Careem: • Get up to AED 1,500 credit to spend on your Careem business account. • Get a free first ride for each of your employees, worth up to AED 50. Visit www.souqalmal.com/sme to find out more, and register at Souqalmal.com Business Club to benefit from special business offers.

sme advisor ISSUE 108

EDITORIAL COMMITTEE SME Advisor is delighted to announce that during 2015 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:

Avishesha (Avi) Bhojani Avishesha (Avi) Bhojani is the CEO of Bates PanGulf (BPG) Group. At the helm of the BPG Group since 1991, he is responsible for consolidating the Group’s interests across advertising, public advocacy, public relations, design, activation, media asset management and digital verticals, in the Middle East and North Africa region. He is also instrumental in the conceptualisation and execution of a number of strategic retail initiatives ins Dubai such as Dubai Shopping Festival and Dubai Summer Surprises. Professor Val Lindsay, MSc (Otago), MBA (Victoria), PhD (Warwick) Dr. Val Lindsay is a Professor in Strategy and International Business, and Dean of the Faculty of Business at the University of Wollongong in Dubai (UOWD). She has a keen interest in teaching and research in the areas of international strategy, exporting, services internationalization, entrepreneurship, small and medium-sized enterprises, networks and clusters, and economic development. Essa Al Zaabi Essa Ali bin Salem Al-Zaabi is the Senior Vice President - Support Services at Dubai Chamber of Commerce & Industry, and the director of the Dubai Chamber initiative, Tejar Dubai. He is a proven UAE leader and business entrepreneur, with the ability to rapidly mobilize teams to achieve organisational change and integration. A self-motivated team-builder and corporateperformance driver, he has held a number of key positions throughout his career that has reflected his passion and commitment to the development of UAE nationals as business professionals, young entrepreneurs and future leaders. Previously he has worked with the National Human Resource Development and Employment Authority, as the Director of Tanmia – Dubai Office, then became

the Vice President of Human Capital at the Dubai World Trade Centre, and later on the Deputy General Manager of the Emirates Institute for Banking and Financial Studies. His Excellency Abdullah Saeed Al Darmaki His Excellency Abdullah Saeed Al Darmaki is the Chief Executive Officer of the Khalifa Fund for Enterprise Development, a government entity that spearheads the support and development of Small & Medium enterprises in the UAE. His role is integral to the strategic planning and management of the organisation in alignment with the Executive Council’s objectives. With Over 17 years of experience in Oil & Gas, Petrochemicals and Manufacturing industries, and a background in Sales & Marketing, he has held a number of leadership positions with governmental and private organisations in the United Arab Emirates. Mohan Valrani Mohan Valrani – 74, came to Dubai in the year 1966 and has been staying in Dubai for last 48 years. Mohan Valrani is the Senior Vice Chairman & Managing Director of Al Shirawi Group of Companies, which is a large conglomerate in the United Arab Emirates and one of the largest in the Arabian Gulf, with headquarters in Dubai (UAE).Apart, from his business activities, he is also deeply involved in social activities. He is the founder - Chairman of the India Club and on the Board of Trustees of The Indian High School and has been as instrumental in contributing to the success of these institutions. Roberto Mancone Roberto Mancone is the Global Head of Business Products for SMEs and MidCorporate for PFB Germany, PBC Int’l and Postbank. He is Chairman of the Global Credit Product, Deposit and Payments Executive

Committee of the Private and Business Clients Division of Deutsche Bank. He is Board Member of the Advisory Board of Deutsche Auskunftei Service GmbH, Chairman of Business Advisory Council of EFMA, member of ECGI (European Corporate Governance Institute) and Member of the Advisory Board of BAA, the Alumni Association of Bocconi University and SDABocconi. Yogesh Mehta Yogesh Mehta is the Managing Director of Petrochem Middle East. He graduated with a Bachelor of Science in Chemistry from National College Bandra in Mumbai, India. Over time he opened his own chemical trading business, which enjoyed fair success. He then relocated to Dubai in 1990 and within five years, he managed to establish a business by opening a state-of-the-art storage terminal for bulk and drum chemicals. Driven by passion and a need to succeed, he established Petrochem Middle East in 1995 with friend and business partner David Lubbock. Petrochem Middle East has since grown from strength-to-strength to become one of the largest independent petrochemical distributors in the Middle East. A self-made billionaire, His greatest attributes are mentoring and leading by example. Sultan Sobhi Batterjee Sultan Sobhi Batterjee is the owner and CEO of IHCC, the leading Hospital Construction Company in the Middle East and Africa, and Founder and President of Lifestyle Developers Ltd. He is a member of several social and economic associations including the Young Arab Leaders Society in Dubai, the young entrepreneurs committee Jeddah Chamber of Commerce and he is also a Board Member of the (EO) Entrepreneurs’ Organisation in the USA. He also holds a number of academic honours including a Bachelor’s Degree in International Finance and Accounting from the Regent’s Business School in London and a Masters in Entrepreneurship from the Entrepreneurs’ Organisation/MIT and Strategic Diploma from Oxford among others.

THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS.

The new ECOSYS M3560idn series will astound you. With their print speeds of up to 60 pages per minute, they are among the most productive A4 b/w multifunctionals on the market. We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components. The result? Not only less waste and lower maintenance costs, but also less hassle for you and all your colleagues. You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERAâ&#x20AC;&#x2122;s open solution platform HyPASâ&#x201E;˘, as it allows you to tailor the device to your needs. So yes, we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you!

For more information please contact:

KYOCERA Document Solutions Middle East | P.B. Box 500817, Dubai, U.A.E | Tel: +9714 4330 412 | Fax : +9714 4231 944 KYOCERA Document Solutions Europe B.V. - www.kyoceradocumentsolutions.eu

KYOCERA Document Solutions Inc. - www.kyoceradocumentsolutions.com

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 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 Director of Sales Ankit Shukla ankit.shukla@cpimediagroup.com +971 4 440 9111 Media Sales Executive Emma Hughes emma.hughes@ cpimediagroup.com +971 4 440 9120

FROM THE EDITOR If being an entrepreneur is in your genes… We all tend to use the phrase ‘it’s in my genes’ as a synonym for saying that we really feel change is futile. Some businesses are like that: they continue much as they always have - either for good or bad - and never reach for the brake or the accelerator. Even hardened business pundits tend to say: ‘it’s in the company’s DNA’. Yet perhaps there’s a better way to use the example of DNA. In this issue of SME Advisor, we feature an interview with Her Excellency Dr. Maryam Matar, Chairman of the UAE Genetic Diseases Association and voted year on year as one of the 100 Most Powerful Arab Women. In her ground-breaking work as geneticist, she has pioneered the field of ‘epigenetics’. This studies how, far from being carved in stone and set forever, our genetic code is effectively governed by a set of triggers, activated by different life experiences and bringing certain parts of the code to the fore, while suppressing others. So indeed, we’re not slaves to our genes, but rather, triggering and modelling our own influences. Let’s apply this to the business model. In other words, the events (the ‘triggers’) that impacted our business in 2014 can now take effect in terms of different and better ways of working - we’re not forever stuck having to do the same things. Indeed, the events, activities and opportunities of 2014 can now bear fruit in 2015, with the business’ DNA now enriched and effectively reprogrammed. What’s more - again following the example of epigenetics - that DNA will serve as the bigger, better blueprint that will describe, inform and construct every way in which the business conducts its full spectrum of activities. This is especially relevant in terms of operations such as building a branch network, overseas expansion and M&A activity - the hallmark of the DNA can now reflect the lessons learned in the recent past - be they good or bad. Best of luck with the new territories - commercial or geographical - that the DNA footprint takes you to during 2015. Enjoy this issue of SME Advisor!

Event Sponsorship Manager Gill Fairclough gill.fairclough@ cpimediagroup.com +971 4 440 9120 DESIGN Head of Design Glenn Roxas

Paul Godfrey Senior Editor

Senior Graphic Designer Froilan Cosgafa IV Neha Kalvani Photographer Anas Cherur Production Manager James Tharian Data Manager Rajeesh Melath

Rushika Bhatia Editor

Printed by Al Ghurair Printing & Publishing LLC

Talk to us: Head Office PO Box 13700, Dubai, UAE Tel: +971 (0) 4 440 9100 Fax: +971 (0) 4 447 2409

E-mail: paul.godfrey@cpimediagroup.com Facebook: www.facebook.com/SMEadvisor

PRESENTING PARTNER

© Copyright 2014 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

Twitter: @SMEadvisorME LinkedIn group: www.tinyurl.com/smeadvisorme

KNOWLEDGE PARTNER

Contents

“Trading overseas or with other GCC countries is one channel of improving quality of products and services, and a test for competition and growth.”

p36

ON THE FRONT COVER

07 Editorial Committee SME personalities bringing industry-leading expertise across the publication and its raft of prestigious events. 09 Editor’s Note Paul Godfrey on the ‘DNA of Entrepreneurship’. 12 Editorial calendar We highlight hot topics that will form the basis of our SME discussions in 2015. Don’t miss it! 14 Data and decision making Our infographic section showcases key trends shaping the SME marketplace. Ground level 16 Resource management – ten steps to get your business in order How to ensure efficient use of your vital business resources? We offer simple guidance… 20 Back to basics: budgeting and your SME Crucial action points to follow while preparing budgets in 2015. 24 Millennials in the workplace Is your business ready? Savio Tovar, Director of Technical Operations, Avaya Global Growth Markets, assesses the changing landscape and shares key insights…

sme advisor ISSUE 108

Business Banking 28 Braking hard or full steam ahead? The red lights and green flags for SMEs to watch in 2015… Business Innovation 32 Roaming made easy A simple solution to a classic business challenge... Movers & Shakers 36 Man with a vision: HE Hani Al Hamli Our special interview with Dubai Economic Council’s much-honoured Secretary General… 40 Economic outlook in 2015 An exclusive chat with Abdul Baset Al Janahi. The CEO of Dubai SME discusses top trends, opportunities and challenges. Entrepreneurship 44 Mentorship: What can it do for your business? Jane Khedair, Head of Entrepreneurship, Career Services, London Business School, offers top advice. 48 A very different entrepreneur Her Excellency Dr. Maryam Matar, Founder and Chaiman of the UAE Genetic Diseases Association, speaks exclusively to SME Advisor…

54 Operation start-up Michelle Joseph, COO, AstroLabs, on the initiative and its unique proposition. The Next Level 58 The sweet smell of success Rasha Al Danhani of PappaRoti shares her formula for fast-paced growth and expansion. Trade and Export ME 61 We present our comprehensive section, Trade and Export ME A practical, informative and incisive guide for the trading community in the region. Tech Trends 84 Hot apps of the month.

EDITORIAL CALENDAR

• Interview with Abu Dhabi Investment Council • Interview with twofour54 • Abu Dhabi 2030 vision

January

February

• Public-private sector partnerships (PPPs) • Setting employee KPIs for the New Year • Building a branch network

June • Leadership strategies • Business health check • Role of the social media

May • GCC – import and export procedures • Dubai Economic Council – interface with the SME community • Country focus – Egypt

September October • Professional qualifications and their role in your business • Transforming customer experience • Digital Media to improve consumer proposition

• Office accommodation in Dubai World Central (DWC) • Dubai Plan 2021 – opportunities for SMEs • Infrastructure trade opportunities

www.smeadvisorm.com

EDITORIAL CALENDAR

March

• Risk management • Banking and treasury management • Role of the IPO

• Incubation and accelerator roundup • Etihad Rail – spotlight on contractor opportunities • Oman – tomorrow’s opportunity

2015

April

July • Sustainable technology • Halal tourism and your SME • Profile of Jordan’s Aqaba Free Zone

August • Asset and finance management – building your investment portfolio • Performance management and employee remuneration • Planning profitability for Q4

November • SME Beyond Borders • Successful supply chain management • Key person insurance

December • Review of legal changes affecting SMEs • Expo 2020 partnership opportunities for 2016 • Profile of GCC’s Top 20 free zones

www.smeadvisor.com

Data and Decision making

BYOD 2017

By this year, half of the global employers will require their employees to supply their own device for work purposes

Understanding the global landscape

85%

of organisations allow employees to bring their own devices to work

40%

of business say BYOD is the main concern when developing and managing smartphone/tablet apps and devices

2016

By this year, worldwide shipments of smartphones will reach 480 million – with 65% being used in BYOD environments

What’s in it for an SME? Enjoy significant cost savings with BYOD in areas such as: + Hardware costs + Support costs + Telecom costs

SOURCES: The Definitive Guide to BYOD by Aruba Networks; IDG Research Services; IDC; Gartner; SANS Institute Research Survey; Forrester – Prepare for connected enterprise; Aruba Networks – BYOD in EMEA; Global Corporate IT Security Risks 2013 survey by B2B International and Kaspersky Lab.

38%

of companies expect to stop providing devices to workers by 2016

53%

of information workers use their personal devices for work

50+%

of organisations rely on their users to protect personally owned devices

www.smeadvisor.com

Data and Decision making

22%

of organisations in EMEA have more than 1 out of every 4 employees bringing their own device

69%

70%

say their organisations allow some form of BYOD

believe ensuring a secure connection is the main barrier to full adoption of BYOD

Regional trends â&#x20AC;&#x201C; opportunities and challenges

45%

are held back by how to enforce access rights based on user, device and application type

35%

of organisations need to improve coverage and capacity of their wireless network to support BYOD initiatives

67%

companies expressed concern regarding the growing BYOD trend and its potential threats

30%

53%

10%

48%

33%

19%

plan to prohibit the number and types of devices used

say that their companies have suffered serious leaks of confidential data

of companies use mobile device management solutions

www.smeadvisor.com

of organisations plan to increase investment in wireless to meet mobility demands of employees

of companies are using antivirus solutions to integrate, protect and manage mobile devices on the corporate network

plan to encourage the use of personal smartphones and tablets at work

GROUND LEVEL

Resource management ten steps to get your business in order

A major challenge that SMEs are continually faced with is lack of sufficient resources. With very limited options, how do you run your business effectively – and more importantly – profitably? Does every department within your business have the resources it needs to achieve its targets in 2015? Is your business able to adapt quickly to fast-paced, competitive markets with resources at hand? Or, is improper allocation of resources causing lack of agility? Considering the following steps can help you find solutions to these questions and master the art of resource management… 16

What is resource management? Resource management is effective use of your key resources, which can be primarily categorised as money, materials, manpower and machines. Business owners need to ensure that the right number of resources are available at the right time in the right department of the organisation. Businessdictionary.com defines resource management as “the process of using a company’s resources in the most efficient way possible. These resources can include tangible resources such as goods and equipment, financial resources, and labour resources such as employees. Resource management

can include ideas such as making sure one has enough physical resources for one’s business, but not an overabundance so that products won’t get used, or making sure that people are assigned to tasks that will keep them busy and not have too much downtime.” As a whole, resource management has several elements that need to be undertaken such as resource planning, allocation and scheduling. Even though the entire process is time consuming and can be very complex, considering the following basic pointers can simplify procedures and save a lot of valuable time.

www.smeadvisor.com

GROUND LEVEL

Mastering resource management – what you need to know STEP

Understand the allocation process

Where do you start and what do you do? Although there are several ways of going about the process, the four-step procedure, described in an article on McKinsey.com – How to put your money where your strategy is, is a great way to begin. It explains: “In reality, allocation comprises four fundamental activities: seeding, nurturing, pruning, and harvesting. Seeding is entering new business areas, whether through an acquisition or an organic start-up investment. Nurturing involves building up an existing business

through follow-on investments, including bolt-on acquisitions. Pruning takes resources away from an existing business, either by giving some of its annual capital allocation to others or by putting a portion of the business up for sale. Finally, harvesting is selling whole businesses that no longer fit a company’s portfolio or undertaking equity spin-offs.” These four steps enable you to analyse your business processes in detail and decide what direction your company is going in. More importantly, they give you the chance to align all the activities for the year with the overall objectives of your business.

Resource allocation: Four fundamental steps

Nurturing

ERP systems are extremely valuable when it comes to managing both internal and external resources and ensuring their productive use.

www.smeadvisor.com

Seeding

Pruning

Harvesting

GROUND LEVEL

STEP

Take into consideration your organisational structure

Depending on the way your company is structured, allocation of resources can – and should – be done differently. For instance, if you are a hierarchal organisation, most of the decisions will be centralised. This means that resources will be allocated centrally and then communicated to the different business functions. On the other hand, if you work in a matrix-type organisation, where all the decisions are made by the individual departments, resources are allocated at the discretion of heads of that department. Each resource is unique to the activities of that department. In case of the latter, encourage your managers to make allocations based on the skills, capacities and specific expertise of the employees within their department. STEP

Implement an ERP system

ERP systems are extremely valuable when it comes to managing both internal and external resources and ensuring their productive use. Every business should implement an ERP system at a very early stage in order to ensure that there is a systematic and uninterrupted flow of data between different departments. For businesses that aren’t able to bear the cost of sophisticated ERP software, using simple spreadsheets or office applications can do the trick! STEP

Create a resource productivity chart

A resource productivity chart is a useful tool that, as the name suggests, allows you to ascertain the productivity of your current resources. Typically, this chart

compares the amount the company has invested towards resources i.e. resource spending to its value creation. So, how much value is each resource adding to the business function? In larger companies, over 100 business functions are analysed before resource allocation decisions are made. Mapping out a chart of this kind helps you see the bigger picture and make serious decisions such as: what business functions would perform better with more resources and what resources would suffer as a result of lesser resources? This approach is particularly useful when you need to trade off resources from on division to another; it gives you a tangible document to support your decision and avoid any

encourage your managers to make allocations based on the skills, capacities and specific expertise of the employees within their department.

www.smeadvisor.com

GROUND LEVEL

STEP

USE RESOURCE MAPPING AS A SUPPORT MECHANISM

business-unit level. This detailed transparency is typically required to change the allocation of resources in organisations that have powerful divisional leaders.”

Communicate with your CFO

Be prepared for unforeseen circumstances

This is something that might seem quite obvious, yet many SMEs fail to keep open lines of communications with their finance team. Involving the CFO in this process is absolutely necessary. After all, CFOs are trained in cost allocation and will be able to help with these strategic decision making processes. As trained finance professionals, they have the vision to foresee any obstacles that might hinder the company and can suggest ways to go around them. STEP

Another McKinsey article called Avoiding the quicksand: Ten techniques for more agile corporate

resource allocation explains: “Some companies now choose to allocate resources at the level of literally hundreds of product and market “cells,” such as product or geographic categories. While that’s too detailed for others, the key, in any case, is to go beyond the big divisions and develop a map that’s granular enough to see where resources are currently deployed. Make sure it goes beyond capital spending, to include marketing expenditures, R&D funds, and top talent. Such maps—which one company we know brings to life on a tablet app highlighting resource requirements, returns, and growth options—give corporate decision makers the visibility they need for trade-offs between activities and initiatives a level or two below the

STEP

potential conflicts with departmental managers. In addition, these charts will further assist in setting KPIs, increments and salary packages for employees, as they give a clear idea of what each department needs to add in terms of value and what kind of incentives they deserve to get. Something to be wary of, however, is that decisions should be made keeping in mind the objectives of the overall organisation i.e. at a macro level rather than decisions benefiting individual departments.

As is the case with any business planning document, do keep room for some flexibility. Ensure that your strategy is fairly adaptable to any changes that might arise as a result of internal or external factors. In fact, it might also be worth having two options as alternatives for worst-case scenarios (something that your CFO will strongly suggest!). Preparing yourself for dire situations from the start saves you from making hasty decisions when you are in the middle of a crisis.

www.smeadvisor.com/2015/01/ resource-management-get-yourbusiness-in-order/

www.smeadvisor.com

GROUND LEVEL

BACK TO BASICS

Budgeting AND YOUR SME Budgets are fantastic tools that not only help keep your company finances in control, but also allow you to manage the overall performance of your business. If not prepared properly, however, they can cause a huge setback to your business – sometimes even leading to complete shutdown! The following feature outlines crucial action points and highlights key factors to bear in mind… The definition of a budget, according to CIMA’s Official Terminology of Management Accounting, is “a quantitative statement for a defined period of time, which may include planned revenues, assets, liabilities and cash flows. A budget provides a focus for the organisation, aids the coordination of activities and facilitates control”. What’s fantastic about this description is that it encapsulates the three primary components of a budget: • Revenues: To create a sales or revenue forecast, using the previous year’s figures can be a good way to start. Be wary of replicating exactly last year’s numbers – it is important to factor in any changes that the business might

have undergone over the year. Also, it is crucial to ensure that the sales budget is realistic – setting out unrealistic targets can be detrimental in the long run. • Costs: Typically, this is a combination of fixed costs and variable costs. Again, reviewing costs from the previous year can be a basis on which you plan the current year’s budgets. • Cash flow: Any budget usually includes the company’s projected cash flow – this is the expected cash position of the business. It is a good idea to create the projections for every month – this way you always know where your business is going wrong and what needs to be fixed. It also encourages regular reviews of the position of the business.

www.smeadvisor.com

GROUND LEVEL

Key steps in preparing your financial budgets

Implement a budgeting software

Consult your CFO

In today’s technology-driven world, it would be pointless not to take advantage of the sophisticated software available – this not only makes things easier but also significantly reduces the scope for human error. A few popular options include: Budgetpulse; Buxfer; and Moneystrands. While some of these budgeting programmes offer simple account tracking features, the others are more advanced and help in spending decisions, identify areas of wastage and enable real-time financial management.

It is imperative to involve your CFO, or to outsource a certified accountant or financial advisor for the budgeting process. These professionals are able to identify problem areas and ensure that your budget is prepared for any unforeseen circumstances.

Once the budgets have been prepared, don’t forget to review them periodically and adjust them according to the changing needs of your business.

www.smeadvisor.com

Identify your budgeting time period

Monitor your cash flow

Ask yourself the following questions – what time period is the budget being prepared for? Does it need to be divided according to the yearly activity of the business? When does it need to be revised next?

A cash budget is quite straightforward to prepare; it’s a summary of the company’s future cash payments and cash receipts, in a timely fashion. The difference of the cash receipts and cash payments allows the business to ascertain its ‘surplus’ or ‘deficit’. This information helps you to plan ahead depending on the company’s cash balance or position.

For instance, if your cash budget reflects a deficit, you can seek help in the form of an overdraft from your financial institution. It also helps in the financial management process addressing issues such as what kind of credit terms can you offer to your customers, or, on the flip side, what kind of credit terms are most suitable for your company when arranging supplier payments. Cash flow shouldn’t be confused with profit. A classic example is that of depreciation, which does affect the income of the business but doesn’t appear on the cash budget. Careful consideration should be put into putting together the cash budget, keeping in mind only cash receivables and payables. Moreover, cash budget should also be revisited every few months to address market fluctuations, economic situations, and other possible financial constraints.

Revisit your budget often

Appoint a budget committee

SMEs are agile and fast-moving in nature and are going through constant changes. Once the budgets have been prepared, don’t forget to review them periodically and adjust them according to the changing needs of your business. In case of a rough financial period, trim down unnecessary costs to liberate your cash flow.

Common practice within businesses is to create a dedicated team for budget preparation, often referred to as the ‘budget committee’. A budget committee is usually tasked with overseeing the preparation of the budgets, which means they don’t necessarily prepare the budgets themselves. They set the basic rules in place and coordinate the overall process.

GROUND LEVEL

Identify the Principal budget factor

Understand the master budget

An online article on managerialaccounting.blogspot.ae explains, “The principal budget factor is the factor that limits the activities of functional budgets of the organisation. The early identification of this factor is important in the budgetary planning process because it indicates which budget should be prepared first.”

Companies can create budgets for specific business units, departments, or the entire organisation – depending on the goals of the budget. The master budget is the combined budget for the company, comprising all other subsidiary budgets. A complete master budget typically includes a budgeted income statement, a budgeted cash flow and a budgeted statement of financial position.

Create a budget manual

The preparation of the budget manual is another key step in budgeting. A budget manual is a written document providing all the guidelines and necessary instructions for those involved in the budget making process. A key element of the budget manual is an organisational chart outlining the management hierarchy within the business, thus helping with the efficient division of labour and responsibility. This document also highlights other crucial areas such as budget timelines and key assumptions made while preparing the budget.

The role of the sales AND PRODUCTION BUDGETS

Prepared by sales managers, the sales budget is one of the most important budgets your company will need. It is simply the estimated amount of sales the business hopes to achieve in the budgeted time period.

A typical business planning cycle

Work out your opportunities and threats

Review your current performance against last year/ current year targets

Budgets play a crucial role in:

Measurement of employee performance

Analyse your successes and failures during the previous year Look at your key objectives for the coming year and change or re-establish your longer-term planning

Appraisal of staff Minimisation of wastage Maximisation of efficiency

Identify and refine the resource implications of your review and build a budget

Review it regularly

Conclude the plan

The production budget comes in after the sales budget. It highlights the estimated volume of production for the given period of time. The production budget closely ties in with the sales budget as it ascertains how much needs to be produced in order to meet the budgeted sales amounts. It’s also a source of fundamental information like material and labour usage, which is ultimately required in the formulation of supporting departmental budgets.

Define the new financial year’s profitand-loss and balancesheet targets

For an online version, please visit: www.smeadvisor.com/2015/01/backto-basics/

www.smeadvisor.com

GROUND LEVEL

Millennials in the workplace is your business ready?

Millennials, as the youngest professional generation, form an integral part of our business workforce today. Yet, many business owners fail to fully understand their aspirations, working styles and career expectations – often at their own peril. In the following feature, Savio Tovar, Director of Technical Operations, Avaya Global Growth Markets, assesses the changing landscape and shares key insights…

Savio Tovar, Director of Technical Operations, Avaya Global Growth Markets

Key characteristics of millennials • Tech-savvy • Innovative • Flexible • Adaptive

Quick fact! Take a look at your desk. At first glance it may not seem too different to what it looked like 15 or even 20 years ago. You probably have a computer of some sort, a desk phone and a notepad and pen – all items you would have had in the mid-nineties. But look more closely: somewhere on your desk is probably your mobile phone, and the chances are it’s a smartphone. The ubiquity of the smartphone is almost symbolic of the revolutionary change we are going through. Communications are everywhere. We are constantly inundated with messages, tweets and status updates pretty much wherever we go – something that was only just beginning 15 or even 10 years ago. Before then, people didn’t ‘google’ everything, nor did they arrange their social lives on Facebook. In fact ‘google’ didn’t officially become a verb until 2006; just seven years ago. That’s how

fast things have been moving. The point is the millennials – the single largest demographic ever (1980 to 2000) – will soon be marching on the business world in even greater quantities. In fact, they’ll make up 75 per cent of the workforce in less than 10 years. And this is a 75 per cent that is wired differently – not only have they never known a world without the internet, they also don’t remember a world that isn’t instant and collaborative. Owing to their always-connected lifestyle, they expect immediate answers and constant engagement. These millennials will have a profound impact on the way businesses operate. While young, connected, techsavvy types bring many benefits to the workplace and are expected to revolutionise the way we work, it’s worth considering whether we are ready for this wave of change?

www.smeadvisor.com

GROUND LEVEL

Constant bombardment from a range of media, for example, is entertaining, but it’s not always productive. Today, employees have to wade through gigabytes of information day in, day out, just to get their jobs done – from e-mails, RSS feeds, twitter, Facebook and other sources. In fact, many people I speak to feel that they are losing control of information they themselves have subscribed to. Sadly, much of this is down to the fact that typical working environments weren’t built to cater for this mass influx of information: they aren’t set up to deliver instant answers; they don’t encourage or enable collaboration and the technology isn’t capable of delivering the experience we’re used to getting at home. As time marches on, businesses that continue to rely on their current systems will find they are swimming against the tide and sooner or later they will go under.

www.smeadvisor.com

Preparing for change Organisations need to help their employees find a way to make this range of media work for them. There are several ways. For example, I am part of several virtual teams and, using tools like communications groups and favourites, I can define and organise them within my social media outlets. This means that messages pop up differently for each team or group and indeed for subgroups within the group, and I’m able to handle each of them differently depending on how involved I am. As a result, I’ve been able to reduce the time I spend reading the flood of e-mail communications each day. Another good example is the way people use Instant Messaging (IM) to ask and answer shorter questions, cutting the daily e-mail flood considerably. The point is, if we’re going to give people the tools to collaborate, we have to give them the power to be able to use them productively. Organisations need to create effective and engaging working environments for employees, and technology can really help here. For example, I use a tool that allows me to decide how – i.e. via which media – people are able to contact me, yet every message, regardless of the format it comes in, ends up in a single, centralised inbox. I can also choose how I want to access those messages – as text or speech. When I say messages, I mean video, speech, IM and chat, e-mails, Twitter and SMS. These sorts of tools are opening up huge communication channels to time-pressured employees. Are you in control? In the end, what it all boils down to is business control of social and other media. For many employees the word ‘control’ makes them very wary and I can understand why. But in this case ‘control’ is about allowing employees to get a better handle on the deluge of information they are confronted with, giving power back to the people if you will. And for a generation of independent, connected, young millenials, my guess is this should go down well!

Working with millennials - top tips! Be prepared to provide constant coaching and feedback. Millennials have spent a lifetime getting regular, near-instantaneous feedback. Whether it’s a lightning-quick response to a text message or school tests that are computer-graded and posted to an Internet gradebook within an hour or two, this is how this generation has been conditioned to live, work and play. The good news is that while feedback needs to be continual, it doesn’t have to be involved or formal: the aforementioned text, e-mail, or two-minute conversation can do the trick.

Appreciate that Millennials see work as a means to an end — but not the end. Millennials largely are children of boomers and have witnessed, up close and personal, the devastation of layoffs, underemployment and eroding pay and benefits for their parents. They can be motivated to work hard, but are more likely to reject the 60-hour weeks their parents put in.

Illustrate the power of spending more time with people than with electronic devices. Millennials are technologically savvy — and proud of it. But numerous studies have found them wanting in the “soft skills” necessary for long-term career success: integrity, professionalism and the ability to interact effectively with superiors, colleagues, clients and customers. None of those skills can be learned with eyes glued to a smartphone. Source: http://www.huffingtonpost.com/ - by Stephanie Nora White and Tom Tischhauser

www.smeadvisor.com/2015/01/ millennials-in-the-workplace/

GROUND LEVEL

Understanding millennials

THE WORLD OF MILLENNIALS - DATA CRUNCH 75%

75%

Millennials in the global workforce by year 2025

73%

of millennials believe that businesses are focused on their own agenda rather than the society

6/10

millennials said a sense of purpose is part of the reason they choose to work for their current employer

of millennials believe that businesses are having a positive impact

84%

of millennials put greater emphasis on making a positive difference in the world over workplace recognition

Working with millennials

65%

41%

believe that rigid hierarchies and outdated management styles failed to get the most out of younger recruits

of those questioned said they would rather communicate electronically than face-to-face or over the telephone

77%

believe that flexible working hours would make them more productive at work

52%

millenials have top priority for career progression, followed by 44% for competitive salaries

71%

expect and want to do an overseas assignment during their career

www.smeadvisor.com

GROUND LEVEL

The role of technology

59%

say that an employer’s provision of state-of-the art technology is important to them when considering a job

46%

think their manager don’t always understand the way they use technology in their work

78%

89%

said that access to the technology they like to use makes them more effective at work

regularly check work e-mail after work hours

Innovation – a key driver

78%

62%

of millennials believe that innovation is essential for business growth

95%

say it is acceptable for business to make a profit from an innovation that ‘benefits society’

60%

believe that they work for an innovative business

www.smeadvisor.com

of millennials would describe themselves as innovative

66%

2/3

of millennials say innovation is a key ingredient in making an organisation an employer of choice

work in organisations that actively encourage/reward its people for innovative ideas

26%

believe that their own organisation’s leadership encourages idea generation and sharing regardless of seniority

BUSINESS BANKING

Braking hard or full steam ahead? The red lights and green flags for SMEs to watch in 2015… Is it really going to be a case of ‘all change’ in 2015? With factors like the collapsing oil price, new working templates like public/private partnerships and almosthere technologies such as the ‘internet of things’, the average SME is faced with a dramatic roller-coaster of possibilities. What’s more, how do these new horizons shift the ways in which SMEs can work with traditional financial partners, or alter the banks’ perception of what’s appropriate and when? Senior Editor Paul Godfrey investigates

www.smeadvisor.com

BUSINESS BANKING

Immediately before the financial crisis, the world was an inherently simpler place. It was underpinned by the two key beliefs that both worked to the benefit of the mid-size SME. Firstly, we all knew categorically, of course, that you could buffer investment risk via a good-quality hedge fund and a suitably diversified portfolio; and secondly, that an oil price of around US$95 a barrel was a given - with this latter factor massively contributing to the growth of many middle eastern economies. Now, however, we know - ahem - that the ‘best’ hedge funds were often based on flawed algorithms and that with the oil price effectively halved, only about three of the mighty fossil fuel economies of the GCC can be profitable at all. What’s more, where once we knew categorically that the USA was a slowly declining economy, it’s reemerged to true world dominance and can again set daunting benchmarks that are in part led by extraordinary generation of techno-SMEs (surely the best in the world?). What does the still-tumbling oil price presage for SMEs in the region here in 2015? A series of Gulf News articles, for example, have made the point that SMEs in Dubai are likely to be worse hit than those in Abu Dhabi, not because the emirate has less oil production, but because of the importance of tourists and investors (especially from oil producing countries) to Dubai. The logic is simple: as their own economies feel the pinch from unprofitable oil production, they have less money to come here. Note, though, that in terms of home-grown economic phenomena, capital expenditure by fossil fuel businesses in Abu Dhabi may slow, affecting the SME base that is inevitably depending on it further down the food chain. Plus, low oil prices are impacting the budgets of GCC countries, which in turn will tend to put the brakes on imports from Dubai - not to mention tourist levels as well. Capital inflows have also tended to slow, commensurate with the slight fall in the property market.

www.smeadvisor.com

BUSINESS BANKING

The Abu Dhabi Economic Vision 2030 emphasizes the role of public/ private sector liaison, with special opportunities in areas such as infrastructure, financial services support, IT and professional services.

Notwithstanding, the fact remains that the UAE - along with KSA and Kuwait - remains one of only three producers in the region able to be profitable at current oil price levels (Kuwait is especially strong in this respect, achieving profitability from only US$37 per barrel) and this bodes well for a reasonably buoyant background climate. The Infrastructure advantage Just as the celebrated Expo 2020 win put the spotlight on the forthcoming raft of infrastructure development – classic good news for SMEs – there is also no doubt that Infrastructure spending in Dubai is accelerating. The Contracting business has received a large boost thanks largely to property projects being announced by government-owned entities. What’s more, most pundits estimate that it’s here in Qs 1 and 2 that the impact on the economy will now start to be felt strongly. Terrific news for SMEs, since this is a sector supported by a massive SME substrata. The bigger news, though, is that more and more initiatives are starting to come to fruition as part of the Abu Dhabi Economic Vision 2030. This is the most comprehensive and far-reaching economic plan in the GCC - and it’s rich with opportunities for SMEs. But the question remains as to whether businesses know how to benefit and whether they truly understand the style and scale of opportunities on offer. The Abu Dhabi Economic Vision 2030 emphasizes the role of public/ private sector liaison, with special opportunities in areas such as infrastructure, financial services support, IT and professional services. It also celebrates the role of the entrepreneur, seeing the SME as a critical component in the evolving mix and the catalyst towards a self-funding development model. More and more of this activity is progressively set to come to light, especially given that a number of 2030-themed conferences and events are planned in the months to come,

all aiming celebrate the infrastructure message and what it entails. The ‘work smarter’ challenge According to the research firm Gartner, there will be 26 billion devices on the Internet of Things (IoT) by 2020 - and the first critical quantum leap begins in 2015 with the increasing readiness of technology in sectors such as construction, manufacturing and warehousing. Here, completely new ‘intelligent’ interaction between the key machine, stock and delivery components (note: not between the operators of these items but between the working elements themselves) can make dramatic changes in levels of profitability and productivity. Will your business be up to speed with the changes? Don’t think for a second that this is technology reserved for larger Enterprise-level firms and MNCs - a vast layer of SMEs service the key sectors where IoT is set to be biggest. Example: you agree with an insurer that the ladders in your storage facility can be fitted with IoT data sensors, monitoring safety, load tolerances and usage. Result? A 35 per cent saving in insurance premiums Adapting to - and working wisely with - IoT technology is a ‘must do’ fundamental for SMEs in 2015. So is the need to come to terms with increasingly flexible patterns of working: with factors such as collaborative mobile software and Cloud computing, there really are no limitations on where any member of staff needs to be based. Yet this approach will only work if you are able to leverage full mobility by having a range of devices at the disposal of staff and replicable data across the majority of screens; and remember, there are really only two benefits from this style of flexible working • Firstly, it can be a great tool for staff motivation, saving personnel who live a long way from the office the daily chore of a long commute - BUT if you don’t have data replicability or work with Cloud technology, you’re inviting a potential nightmare of

www.smeadvisor.com

BUSINESS BANKING

Changing technology requires SMEs to consider seriously whether here, in 2015, the business has reached a ‘tipping point’: will SME owners now seize the chance to alter the basic deployment of human resources or continue to buy-in to new technology in a way that simply augments the existing working structures?

www.smeadvisor.com

logistical co-ordination. • If staff don’t require regular desk space, you could actually have a smaller office, with all the cost savings that implies. But are you really going to be able to free up enough staff from their commute to make that much difference to the physical space you need? Changing technology requires SMEs to consider seriously whether here, in 2015, the business has reached a ‘tipping point’: will SME owners now seize the chance to alter the basic deployment of human resources or continue to buy-in to new technology in a way that simply augments the existing working structures? PPPs - will you win the ‘beauty parade’? Public Private Partnerships (PPPs) figure largely in the World Economic Forum’s Global Competitiveness Report 2014-2015, where they are identified as important agents of change both for SMEs and for society at large. Indeed, they will play their part locally in 2015 as we see more elements of initiatives such as Expo 2020 and the Abu Dhabi Economic Vision 2030 click into place. Yet the experience of nations such as Qatar and Bahrain - both relatively advanced in the PPP sphere - suggests that if SMEs are to benefit, first they have to ‘win the beauty parade’. Either they will have to be good enough to win competitive tenders, or will need a strong track record that positions them as the natural provider of choice. This requires the SME to be exceptionally professional in areas such as – • Risk Management - the critical factor. No major public entity will enter into partnership with a business whose working practices endanger lives or reputation • Corporate Governance - while the UAE Companies Act 2013 does not require SMEs to be responsible for a Governance agenda, the presence of strong in-house quality controls and a code of pristine ethical conduct are fundamentals in securing PPP link-ups.

• Audited Accounts - a business without audited accounts simply isn’t taking itself and its responsibilities and opportunities seriously. So how can a potential public sector partner? A strong presentation across these key ‘hotspots’ will be the starting point for any serious contenders for the prizes of PPP. The banking view What are the views of a major financial entity - seen as strongly aligned with the SME sector - about the implications that these trends and constraints have for SMEs in the local market? SME Advisor spoke to a leading practitioner at National Bank of Abu Dhabi, who commented: “One of the factors often overlooked about the impact of a low oil price is that it discourages overseas expansion into those nations feeling the impact of falling revenues. Their markets are not well-placed to benefit or entertain the aspirations of new entrants. This means an emphasis on a more local style of growth, building the strength of the branch network in the home market. So it is likely that mature and successful SMEs with a good trading history will be looking for secondary or tertiary finance to fuel that development. Also, while the market is performing well, it’s a good time to diversify the business, spreading exposure and future risk and capitalising on fresh local opportunities. “At the same time, focus on building a solid structure for the business, by introducing a realistic Succession plan and bringing in financial incentives and ‘key man’ protection packages - all of which will serve you in good stead when the time is right for broader expansion. If you already have overseas interests, now’s the time to prune costs, making them work hard and really crank up profitability. So, for example, closely assess the FX chain and, if your level of transaction is big enough, look for some effective solutions to hedge your risk.” For an online version, please visit: www.smeadvisor.com/2015/01/brakinghard-or-full-steam-ahead/

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 Quick and Easy Company Set-Up Less than an Hour Drive from Dubai Complete, Cost-Effective Packages Including Licences and Facilities

100% Foreign Ownership No Taxation 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

/ rakftz

BUSINESS INNOVATION

Roaming made easy: a simple solution to a classic business challenge… Even in today’s business culture, where the smart mobile device is king, roaming often implies high data costs and uncertainty when it comes to overseas operators. Now at last there’s a solution that’s affordable, flexible and relevant to your day-to-day business needs. SME Advisor spoke to Etisalat about a product that means ‘no bill shocks’!

www.smeadvisor.com

BUSINESS INNOVATION

Business Traveller Packs mean you can make substantial savings over your normal data roaming costs, and to reap the benefits, business travellers only need buy a simple package that’s specifically designed to their needs.

Every business traveller knows the story only too well: you desperately need access to data while you’re overseas but feel you’ve got no real choice other than to switch it off and opt for ‘e-mail only’. Costs are high and prohibitive, and perhaps you’ll have no accurate idea of the expense until it’s too late. Of course, you could stock up on foreign provider SIM cards - but do you really want the hassle of switching them around at the airport, delays in activation and services that don’t come up to your usual standards? Etisalat told SME Advisor that they’ve now pioneered a good, practical solution - one that gives business travelers completely smooth data roaming and gives you the resources (when you need them) to help grow your business. The Business Traveller Packs offer worldwide connectivity 24/7. They facilitate data connectivity for e-mail and internet services directly from Etisalat without any barrier. What’s more, the service is available across 105 countries and 248 operators - so you’re certain not to be stuck without data access as and when you need it! Business Traveller Packs mean you can make substantial savings over your normal data roaming costs, and to reap the benefits, business travellers only need buy a simple package that’s specifically designed to their needs. Plus, in terms of cost, you enjoy a significantly lower entry level that enables large savings. What kind of traveller are you? One of the traditional problems with data roaming is that it meant continually switching the service on and off and notifying the operator in advance as to where you’d be travelling and when. With the Business Traveller Packs, you can choose whether you want a 30 day-only package (ideal if you’re making a single trip or destination-hopping intensively to break new markets), or want a want a set-up that’s geared more to long-term business travel - in which case, you’d

choose the monthly recurring pack, which is great for frequent business travellers. You can also choose the pack that best suits your travel needs, opting for either • E-mail and social media • Full access The key point with the packs is flexibility: now you can have access to data as and when you need it you’re not bound by the limitations of operators and the risk of unexpectedly high bills. Also, because this is a package designed to meet business needs, you can also connect to call centres, commercial business centres, and so on. A senior representative of Etisalat commented: “We are now focusing on the customer’s experience - creating services with a high level of flexibility, which are simple, relevant and work with you as valuable tools for helping you grow your business. We want our business customers to know that we’re very much aligned with their needs, and the products we are offering provide features designed to empower commercial goals, as well as give top value. Previously, you bought mobile services because you had to, but we want to transform that experience into a really engaging and productive part of the way you plan and manage your company. The Business Traveller Packs are a great example.” As a business owner or manager, there is also a customised version of the pack - a pooled data package - which allows you to control and monitor data roaming use amongst your team. This will help you manage their rising costs with multiple numbers through a shared and consolidated approach.

For an online version, please visit: www.smeadvisor.com/2015/01/roamingmade-easy/

www.smeadvisor.com

MOVERS & shakers

MAN WITH A VISION: HE HANI AL HAMLI An exclusive interview with the Secretary General of Dubai Economic Council. 36

His Excellency Hani Al Hamli, Secretary General of Dubai Economic Council

www.smeadvisor.com

MOVERS & shakers

How do you see the contribution of SMEs to building Dubai’s economy over the last decade?

Do you believe we will see the rise of the ‘techno SME’ here in the region, in the same way as in Singapore or California?

The SME sector represents an important segment of Dubai’s development strategy over the last decade. Today, it forms 95 per cent of all firms registered in the Emirate, 42 per cent of the labour force and 40 per cent of GDP.

The UAE Government declared that 2015 is the year for innovation. This declaration and the establishment of techno park and innovation centre in Dubai set the stage for a rising trend for techno SME in Dubai. However, my expectation is that it will take some time before we will see ‘techno SMEs’ flourishing here. This trend needs to be supported and nourished by research and development (R&D). Techno SMEs in Dubai/UAE will appear as a result of determination and changing technology. In fact, ‘Majid Bin Mohammed Innovation Centre in5’ has been launched in Dubai to promote entrepreneurship and technology innovation in the UAE. The Centre is located at Dubai Internet City (DIC), one of the largest information and communications technology (ICT) free zones in the region. It will focus on the five key objectives of accelerating the development of new start-ups, fostering entrepreneurships, driving technology innovation, contributing to shaping an ICT ecosystem and, most importantly, promoting Dubai as an ideal location for tech start-ups.

What further aspects of diversification do you feel are necessary in refining the current economic mix? The current economic mix shows that the following six sectors, namely: wholesale, retail trade and repairing services; manufacturing; construction; real estate; transport, storage and communication; and the financial corporations contributed close to 90 per cent of GDP in 2013. These sectors are labour intensive ones. The wholesale, retail trade and repairing services sector alone contributed a little more than 29 per cent to GDP, while the manufacturing sector contributed only 13.7 per cent. The current economic structure will be diversified away from low skilled and unskilled labour intensive activities to high tech, high skilled labour activities as the Dubai economy is transformed into knowledge and innovation-based economy. This transformation is a target for the Dubai Plan 2021.

www.smeadvisor.com

Trading overseas or with other GCC countries is one channel for improving quality of products and services, and a test for competition and growth.

How important do you believe it is for an SME in the UAE to trade overseas, or with other GCC nations? Trading overseas or with other GCC countries is one channel of improving quality of products and services, and a test for competition and growth. However, the SMEs could expand their activities once the barriers to free trade 37

MOVERS & shakers

It is most important for an SME entrepreneur to identify the main factors that restrict expansion and growth.

and services are removed. In this regard, the Chambers of Commerce and Industry in Dubai and UAE, the Federation of Chambers in GCC countries in collaboration with the relevant authorities could play an important role by highlighting the different issues that still hinder trade development.

What areas of management education do you believe it is most important for an SME entrepreneur to understand? It is most important for an SME entrepreneur to identify the main factors that restrict his expansion and growth in his industry. Experience shows that SME entrepreneurs fail because they face challenges such as: lack of management skills, experience and know-how; not keeping complete and accurate records; poor marketing; weak financial control; lack of strategic planning and inadequate financing. In view of the mentioned barriers to the growth of SMEs entrepreneurs, it is important that education should focus on mitigating these factors.

Do you believe that Dubai can play a leading role in defining the terms and ambitions of the new â&#x20AC;&#x2DC;West-East Corridorâ&#x20AC;&#x2122; of emerging global markets? Dubai is well placed to play such a role being one of the most competitive economies in the region.

Do you think that we will see a greater volume of IPO activity in 2015?

It is expected that the IPO activity would continue with the same pace as in 2014 despite the non-favourable international environment. A number of factors are currently combining to drive such expectation, such as low interest rates and the consumer spending, in addition to the newly-announced Dubaiâ&#x20AC;&#x2122;s public budget 2015 which shows nine per cent increase in expenditures relative to 2014 which account 41 billion dirhams.

Will Expo 2020 prove to be a powerful factor in encouraging public/private sector liaison between businesses in the region? I think it has a high likelihood as Expo 2020 will be an appointment for all stakeholders to take part. The public/ private sector liaison between businesses in the region is rather seen as an opportunity to find another orientation within a participative development model especially if the obstacles that would prevent such liaison are removed.

Most vitally of all, how do SMEs fit into the Dubai Plan 2021? SMEs occupy a central place in Dubai Plan 2021, especially this ambitious plan aims to bring Dubai to the smart side of life and found the base for a knowledge-based economy. The SMEs play a critical role in that respect. It is well established that SME contributes significantly to the employment, redistribution of income and wealth, as well as bringing technology and robust innovation and entrepreneurship.

For an online version, please visit: www.smeadvisor.com/2015/01/man-witha-vision/

www.smeadvisor.com

MOVERS & shakers

Economic outlook in 2015: An exclusive chat with Abdul Baset Al Janahi

SMEs in this region are at the helm of economic development, trade and innovation. As we step into 2015, what are some crucial areas that will impact their growth and what are prime challenges that they should to be wary of? In an exclusive interview with SME Advisor, Abdul Baset Al Janahi, CEO, Dubai SME â&#x20AC;&#x201C; an agency of the Department of Economic Development in Dubai, discusses key issues facing the SME sector from emerging markets and oil prices to local trade and expansion opportunities.

www.smeadvisor.com

MOVERS & shakers

There has been a slowdown in the growth of emerging economies. What do you attribute as the main reasons for this? How will this impact the global economy? What is happening around us is normal and it’s a fact that we can’t expect high growth to continue for good. There is growing acceptance of a ‘new normal’ and leading economies are looking at innovative strategies to sustain growth instead of ambitious double-digit growth targets. We expect to see more innovation-led growth in the coming years and SMEs – which are flexible and innovative by nature - will have a lead role to play in this phase.

Abdul Baset Al Janahi, CEO, Dubai SME

What would you say were the key highlights of 2014? Looking at the sentiments of the SME sector in Dubai, we can say that the year has been good for most SMEs. SMEs maintained positive outlook for sales volume, employment and profits throughout the year. SME growth prospects in the UAE gave a shot in the arm with the Federal Law No. 2 of 2014 establishing a dedicated SME Council and making it mandatory for federal authorities and ministries to allocate at least 10 per cent of their procurement budget for SMEs. On the other hand, there are still concerns regarding competition from local and international players, in addition to the rising cost of operations, led by high rents.

www.smeadvisor.com

What is your view on the change in oil prices? How you see this impacting businesses in this region? I believe oil prices cooling down is healthy, particularly for re-adjusting policies and expectations at the macro level. In the short term, businesses shouldn’t be impacted but if the low oil prices continue for more than two years, impact on the businesses will be significant. On the other hand, lower oil prices might be good for SMEs. While SMEs prosper during times of robust economic growth they are also known to remain the bedrock of economic stability during a downturn. Small and agile as they are, SMEs are more resilient and can adapt to changes much faster compared with larger enterprises. On the government side, we have already seen a strong commitment to SMEs and entrepreneurs. The emphasis on innovation in policies and in the overall economic environment is enough reason for optimism.

MOVERS & shakers

What are factors that will contribute to economic growth in 2015?

Finally, what advice would you like to give to SMEs for business in the year 2015?

Innovation is the keyword for any business looking to the future. The Global Competitiveness Report 201415 by the World Economic Forum emphasizes innovation and skills as the key drivers of economic growth. Competitive business locations, which provide the right mix of efficient operations, proximity to major consumer markets and enabling policies will lead the charge in 2015.

Be aggressive. The SME sector is extremely competitive and it is important to stand out from the rest. Secondly, innovate in everything, from products and services to business models and partnerships.

For businesses looking to expand overseas, what are prime high-potential markets? Africa and Latin America have remained bright spots even amidst the current fluctuations in global economy. The World Bank says rising investment in natural resources and infrastructure along with strong household spending will boost economic performance in leading African markets in 2015. Latin American economies are now expanding their traditional economic partnerships to new markets and during the last few years many of them have established their presence in Dubai for a wider coverage of the Middle East, Africa and South Asia.

What sectors are particularly attractive in 2015? As the leading economic sectors in Dubai tourism and trade continue to offer the brightest prospects for local SMEs. Dubai’s focus on industrial infrastructure and output will also offer new opportunities for the growing number of SMEs engaged in industrial design. 42

www.smeadvisor.com/2015/01/2015outlook-exclusive-chat-with-abdulbaset-al-janahi/

Middle East and North Africa Top 10 The Global Competitiveness Index 2014 - 2015

Global rank*

United Arab Emirates

Qatar

Saudi Arabia

Israel

Kuwait

Bahrain

Oman

Jordan

Morocco

Algeria

Source: The Global Competitiveness Report 2014 - 2015 Note: *2014 - 2015 rank out of 144 economies

An excerpt from World Economic Forum’s Global Competitiveness Report 2014-2015 “The United Arab Emirates takes the lead in the region, moving up to 12th position this year. Overall, the country’s competitiveness reflects the high quality of its infrastructure, where it ranks an excellent third, as well as its highly efficient goods markets (third). A strong macroeconomic environment (fifth) and some positive aspects of the country’s institutions – such as strong public trust in politicians (third) and high government efficiency (fifth) – round out the list of competitive advantages. Going forward, putting the country on a more stable development path will require further investment to boost health and educational outcome (38th on the health and primary education pillar). Raising the bar with respect to education will require not only measures to improve the quality of teaching and the relevance of curricula, but also measures to provide stronger incentives for the population to attend schools at the primary and secondary levels. Last but not least, further promoting the use of ICTs and a stronger focus on R&D and business innovation will be necessary to diversify the economy and ensure that economic growth is sustainable going into the future.”

www.smeadvisor.com

THE PRESTIGIOUS ASIA AND THE PACIFIC ENTREPRENEURSHIP AWARDS (APEA) IS A WORLD-CLASS AWARDS RECOGNIZING AND HONORING BUSINESS LEADERS WHO HAVE SHOWN OUTSTANDING PERFORMANCE AND TENACITY IN DEVELOPING SUCCESSFUL BUSINESSES WITHIN THE REGION. emirates@enterpriseasia.org W W W.E N T E R P R I S E AS I A .O R G

ENTREPRENEURSHIP

Mentorship what can it do for your business?

www.smeadvisor.com

ENTREPRENEURSHIP

In the business world, we talk at length of the crucial role played by professional and vocational skills in creating and shaping an entrepreneur. However, what we very often forget is the significant ‘human element’ – the ‘X factor’ that a mentor can bring into the equation. How can entrepreneurs use such a relationship to fuel personal development and achieve business goals? More importantly, does this approach really work? Jane Khedair, Head of Entrepreneurship, Career Services, London Business School, speaks to SME Advisor…

www.smeadvisor.com

ENTREPRENEURSHIP

Mentors serve as a confidential sounding board for entrepreneurs, providing them with the opportunity to discuss and test out new ideas and approaches with fresh eyes. Jane Khedair, Head of Entrepreneurship, Career Services, London Business School

What makes mentorship so attractive and why is it important? Mentorship provides entrepreneurs with the opportunity to build a relationship with someone who can provide independent support from an outside perspective. It allows access to sector or discipline expertise which may be lacking within the start-up team. Mentors can also share their business or industry contacts with the new entrepreneurs, helping them build a network of connections that can go on to become not only business facilitators but in some cases potential clients. Mentors serve as a confidential sounding board for entrepreneurs, providing them with the opportunity to discuss and test out new ideas and approaches with fresh eyes. Mentorship is particularly attractive for entrepreneurs who are working alone to set up a new business venture as it helps relieve feelings of isolation.

What are prime advantages of having a mentor? Other than the benefits I have detailed above, a mentor keeps the entrepreneur on track with deadlines and on schedule to achieve business milestones as planned. By holding entrepreneurs accountable for the goals they set for the business, mentors help establish key objectives and then oblige the entrepreneur to deliver against these targets.

Are there any challenges to be wary of? The only potential conflict of interest that could occur is if a mentor was working in the same overall industry and essentially competing with the entrepreneur for market share. Issues can also occur if the

mentor is simultaneously mentoring an industry rival. For instance, an aspiring entrepreneur looking to start a restaurant chooses a seasoned restaurant owner as a mentor or one mentor might be guiding two or more entrepreneurs looking to establish similar business ventures. Mentors can use a Chinese wall approach in such situations. By restricting the flow of sensitive information between competing businesses, mentors can advise entrepreneurs in the same industry without adversely affecting the interest of any one venture.

At what stage can an entrepreneur look at working with a mentor? For instance, can established SMEs continue to work with mentors to accelerate growth within different areas of their business? Entrepreneurs can seek the advice of mentors at any stage of the business â&#x20AC;&#x201C; from the pre-start and planning phase when they can help think through the initial business idea and suggest ways to generate start-up capital and all the way through growth. Even once the venture is established and running, entrepreneurs can bounce new ideas and concerns off a trusted mentor so that the right decisions can be made more quickly.

Tell us a little about London Business Schoolâ&#x20AC;&#x2122;s Entrepreneurship Mentor in Residence programme. London Business School augments its support for entrepreneurs through a network of both alumni and external entrepreneurs who, as mentors, offer advice and support to students and alumni starting their own business as well as providing advice to start-up businesses in the Schoolâ&#x20AC;&#x2122;s Business Incubator Programme.

www.smeadvisor.com

ENTREPRENEURSHIP

The School’s ‘Entrepreneur Mentor in Residence’ (EMiR) programme provides students and alumni with the opportunity to interact with select serial entrepreneurs in office hours held throughout the year. The entrepreneurs serve as independent advisors to students and alumni seeking to start their own business, and to support teaching of entrepreneurship. Currently, the School has a total of 15 EMiRs in London, from a wide range of sectors and disciplines. Mentors advise students and alumni on issues related to their entrepreneurship classes and on starting new business ventures. Ultimately they share their expertise to support student and alumni entrepreneurs succeed. Following the programme’s success in London, the School has recently launched EMiR at London Business School’s Dubai Centre at the DIFC, giving entrepreneurial students and alumni access to year-round mentorship from four successful business personalities in the region.

How does this initiative help aspiring entrepreneurs in setting up their business? The EMiR programme allows students and alumni to quickly get in touch with external mentors and resources. The programme also lets aspiring entrepreneurs develop a long-term and valuable relationship with a key mentor or team of mentors. London Business School students and alumni interested in exploring the entrepreneurial world have direct access to experienced mentors up to twice a month for one-on-one consultations. Entrepreneurs receive first-hand guidance and advice from someone who has the experience and insights aspiring entrepreneurs need, especially in those first few, daunting months.

www.smeadvisor.com

What are key areas of personal development that mentors focus on as part of this programme?

The needs of every entrepreneur vary in each instance. However, an experienced mentor will typically help entrepreneurs develop their strengths and potential, whilst also identify their changing needs, values and aspirations.

Is there any scientific research that goes to show that mentorship can lead to a higher rate of success?

A coach is usually a generalist with a business-minded approach while mentors are usually specialists with experience and detailed understanding about a particular industry – usually the same or similar to the business sector the new venture is set up in.

As an entrepreneur or earlystage business, what are key factors to look for in a potential mentor?

Mentorship is often confused with coaching. How are these two different?

Effective mentors have several common traits, such as the ability to listen and advise on any issues or problems entrepreneurs face in establishing and running the venture. Mentors should also have expert-level experience in running a business, even if it is not in the same sector as the entrepreneur – although that is certainly a plus. A trusted adviser who has an understanding of the particular challenges a venture can face in the industry provides entrepreneurs with a significant competitive advantage in the market. Mentors should be reliable. They should have the time and commitment to answer the entrepreneur’s calls and e-mails and provide quick guidance and support on urgent issues. Lastly, personal trust is a crucial element in a mentor-mentee relationship as it facilitates the open flow of questions, advice, knowledgesharing and discussion.

Mentoring, in the entrepreneurial context, is about forming trusted, long-term relationships whereas coaching is more about tasksetting and usually shorter term. The two activities play different roles in supporting entrepreneurs and run in parallel with each other.

www.smeadvisor.com/2015/01/ mentorship-what-can-it-do-for-yourbusiness/

While there has been no conclusive, scientific research to prove that mentorship is directly correlated with the success of a start-up, entrepreneurs at London Business School consistently report the benefits. The success of London Business School’s Entrepreneur Mentor in Residence programme indicates that mentorship is certainly beneficial. This is the reason why we have now launched the EMiR programme in the UAE, where entrepreneurship is a key focus of the business environment.

ENTREPRENEURSHIP

Her Excellency Dr. Maryam Matar, Founder and Chaiman of the UAE Genetic Diseases Association, and previously Founder and Director-General of the Community Development Authority

ENTREPRENEURSHIP

A very different entrepreneur Business publications all too often overlook the fact that the medicine and healthcare sectors are among the very greatest areas of true entrepreneurship - and the UAE is home to one of the Arab worldâ&#x20AC;&#x2122;s most prodigious and honoured medical innovators, Her Excellency Dr. Maryam Matar. Listed as one of the 100 Most Powerful Arab Women, she is Founder and Chaiman of the UAE Genetic Diseases Association, and was previously Founder and DirectorGeneral of the Community Development Authority. Here, she speaks exclusively to Senior Editor Paul Godfrey

ENTREPRENEURSHIP

Tolerance and understanding of the people you are dealing with is the first step in communicating and building success.

Your Excellency, we think of Emirati women entrepreneurs coming from Dubai, Abu Dhabi, Sharjah - but what about the other emirates? Are there cultural obstacles?

succeeds as an entrepreneur, she can do so within a strong framework of Islamic and local values.”

Your own background is fascinating. Do you think it can be an inspiration for other Emirati women?

“You know, traditionally, the majority of Government ministers actually come from the northern emirates. Yet it’s easy to understand why there might be this emphasis on the likes of Dubai and Abu Dhabi, because of course, there’s much more chance of being recognized there, with the highly developed business infrastructure. Importantly, this also gives you the ‘wish’ to make a name for yourself and make an impact on a broader stage. So it’ not really the case that there are cultural obstacles, but rather that entrepreneurs are more likely to emerge in an environment where they have their interest stimulated. “Yet it also works in a different way, too: I would add that in emirates like Dubai and Abu Dhabi, there is a demand for something that people feel familiar with, and the large expatriate communities won’t necessarily find it easier to relate to local entrepreneurs. So if you aspire to a successful career there, you will have to pay attention to your ability to communicate and network across communities.”

“Yes, I do think it can be an inspiration for them, but not for the reasons you might think. Although I overcame the fact that I wasn’t from an affluent background, I won’t say that was because I was in some way naturally gifted, or had more of this, or more of that. It was because I learned how to relate to people and communicate, understanding their point of view, their needs and their interests. For example, I always make sure that I’m very hands-on and knowledgeable about my subjects before I comment. I won’t rush in on the basis of an assumption, or because of what I’ve heard from someone else. This approach is always important for me, and I hope it’s the aspect that can be a powerful motivation for other Emirati women. Tolerance and understanding of the people you are dealing with is the first step in communicating and building success.”

You’ve said several times that Emirati men can suffer from a number of genetic challenges. Is this why Emirati women are increasingly the powerhouse of entrepreneurship?

About 67 percent of all Emirati students studying business and management are women. Does this reflect mere population slant or are there other reasons for female dominance?

“The role of Emirati women is a simple result of what was built by our leaders. Women are empowered by the right skills. With an Emirati woman, the whole community works together to support her - and if the woman

“This statistic is true, but I find it a little bit scary! You need a fair share of both genders for business and development. Also, let’s not look at quantity, but rather, let’s focus on quality. It’s very important to

www.smeadvisor.com

ENTREPRENEURSHIP

remember this, especially if we want to ensure we can build the right educational platform for the nation to perform well, and set new benchmarks in challenging areas such as medicine and science.”

In your opinion, how should a woman overcome family or community challenges to her taking on a business role? “Now, this is much easier than you might think! It’s not difficult to overcome opposition to starting a business - you have to understand the boundaries. So, analyse the way that your community works and the values it has: how can your business and your opportunity best align with them? You also have to do things one step at a time, always looking to build support both from your community and the business sector you are entering. There may come a time when you just have to take a leap and do it anyway - but by then, you’ll have built up a lot of awareness that you understand the community and its expectations and your way of working will have influenced many people closest to you.”

As a leading scientist, are your interests purely in the areas of research and community medicine, or will we see you one day head up a variety of commercial organisations? “Actually, I’ve already become a business entrepreneur - eg, I go and give my services to business on a consultancy basis, and this is proving to be a powerful and rapidly-growing second career. I want to mention here, though, that the strategy of how you go about doing this is very important. When I work with these companies and help them get

www.smeadvisor.com

ENTREPRENEURSHIP

Creating the right infrastructure platform will help ensure a level playing field and the availability of key aspects such a funding, IT, access to good staff resources and the right environment to settle and grow your business in.

good results, I don’t steal all the glory for myself; instead, I make sure that others are in the limelight - and I will then get indirect credit. Use this strategy and it will make you indispensable, because everyone benefits as a result of your involvement. Also, I believe that as you build a business, create it from the perspective of Sustainability. Too often, when we talk about entrepreneurs, we talk about doing things quickly, or in a dramatic way - but that’s wasted unless what you’re doing is sustainable.”

What do you think of the infrastructure and support mechanisms that young entrepreneurs can enjoy when setting up a business in the UAE?

“I believe the support is fair, but more needs to be done. This is especially true at the level of governance. Start-up businesses and entrepreneurs cannot thrive without the right infrastructure. A key part of the role of Government in its dealings with business is making sure that this infrastructure is consistent and conducive to growing your SME. I learned a lot from my extensive journeys around the region, and I saw first-hand just how vital this aspect really is. Creating the right infrastructure platform will help ensure a level playing field and the availability of key aspects such a funding, IT, access to good staff resources and the right environment to settle and grow your business in.”

www.smeadvisor.com

ENTREPRENEURSHIP

Which one of your many awards do you feel best reflects your role as Emirati woman entrepreneur and ambassador? “I value them all hugely but there’s no doubt that the one I treasure most is the Humanitarian Award I received at the Emirates Woman ‘Woman of the Year’ Awards in 2014. This meant a huge amount to me, especially since the work I do with children and underprivileged communities is closest to my heart. In fact, back in 2012, the Arab League Scientific and Humanitarian Development Program had made me Ambassador of Goodwill for Women and Children in the Arab World – another huge honour.”

You have to do a risk audit on all the factors that can go wrong, and then take proactive action, knowing the worst possible scenario.

What is your greatest ambition - and when will you make it come true?

You are very widely travelled: what lessons do the SME and start-up sectors in other countries have for the local scene here in the GCC? “Actually, I feel that what makes the UAE such a successful model is that we take on board the best examples from other environments. In reality, what makes our leaders themselves so different is the fact that they are good listeners. For example, the clear process of decision-making that took the UAE away from its established fossil fuel model to having one of the world’s best diversified economies is a classic example of being able to observe and follow the successes of states that were the economic pioneers.”

www.smeadvisor.com

“Well, I hate to admit it, but when I was really young I already had a personal plan set for 2050! All of the dreams I had have come true and many of them in ways I couldn’t possibly have imagined! I don’t just believe the sky’s the limit - I believe the UNIVERSE is the limit! “My mission is huge - but what gives me such an optimistic attitude is that I really believe in the role of risk assessment. You have to do a risk audit on all the factors that can go wrong, and then take proactive action, knowing the worst possible scenario. This is why you will rarely see me panicking my motto is that if you put some realism into your strategy, you’ll be able to do your best day to day and that path to the universe will keep open for you!”

www.smeadvisor. com/2015/01/a-very-differententrepreneur/

ENTREPRENEURSHIP

Operation Start-up

AstroLabs and its unique proposition With hands-on training workshops, a buzzing entrepreneurial community and continuous mentorship support, AstroLabs is a onestop-solution for start-ups giving them the grounded, practical guidance they really need. SME Advisor caught up with Michelle Joseph, COO, AstroLabs, to find out moreâ&#x20AC;Ś

www.smeadvisor.com

ENTREPRENEURSHIP

Tell us about AstroLabs. How did it come about? AstroLabs was launched by Muhammed Mekki and Louis Lebbos, originally co-founders of one of the largest e-commerce sites in the MENA region, Namshi. com. They wanted to build from their own experience and create a platform for enabling other tech start-ups to tackle their biggest scaling challenges. Over the past two years, AstroLabs partnered with Google for Entrepreneurs (GFE) to deliver hands-on ‘Scaling Online Start-ups (SOS)’ workshops to founders of over 120 companies across the UAE, Jordan, Saudi Arabia, Egypt, and Lebanon. We’re now launching our first physical space, AstroLabs Dubai, and building out our AstroLabs Academy programming to maximise impact across the startup ecosystem.

Two crucial elements come under the AstroLabs umbrella – AstroLabs Communities and AstroLabs Academy. What does each offer to entrepreneurs and SMEs? These elements are aimed at offering tangible and comprehensive support across the entire lifecycle of a start-up. AstroLabs Dubai will be the first of our AstroLabs Communities and also the first Google Tech Hub in MENA, helping entrepreneurs set up their companies in an innovative and supportive environment. AstroLabs Academy hosts our regular SOS programmes and delivers course content tailored for digital businesses, helping start-ups develop the talent and skills they need to scale.

www.smeadvisor.com

ENTREPRENEURSHIP

We’re really building a community, which means the support extends well after a start-up graduates from our SOS programme, takes one of our classes, or grows out of our coworking space.

How do you think AstroLabs differentiates itself from other accelerators and incubators in the region? We’re not a traditional incubator or accelerator in the sense that we do not take any equity from our start-ups, but we’re still providing workspace, learning content, a start-up community and mentorship support. Again, AstroLabs was created to fill the gaps we’ve seen in ecosystem, so everything we do is meant to meet the real and practical needs of tech start-ups. We worked with our GFE partners around the world and designed

AstroLabs Dubai to be the best workspace for tech entrepreneurs, incorporating new features like a mobile device development lab and a “coding cave” for programmers. The space will also be home to AstroLabs Academy, so start-ups can develop skills that are directly applicable to their businesses through classes in digital marketing, web and mobile analytics, UX/ UI design, and programming. Beyond that, our start-ups have the opportunity to get plugged into Google’s global network of co-working spaces and subject matter experts. We’ve sent five start-ups to Silicon Valley through our partner programme, Blackbox Connect, and we’re excited to nominate two more for the inaugural female founders’ edition this spring.

www.smeadvisor.com

ENTREPRENEURSHIP

have gone on to raise over $50 million, and we already have several investors on board who want to be engaged with our incoming AstroLabs Dubai start-ups.

How can a start-up join AstroLabs Dubai? Are there entry criteria? Admission is application-based, and we also interview every start-up to make sure we’re selecting a collaborative group of the most innovative technology-driven start-ups. We want to bring together entrepreneurs that are going to make things happen—the ones that have real potential to scale their businesses and have major impact on the region and beyond.

You’ve recently partnered with Dubai FDI. What will this initiative undertake? By partnering with Dubai FDI, we are able to reach a global audience of technology companies. We are working together to attract high potential startups to Dubai and then support them to scale in this market. Dubai FDI is also helping connect AstroLabs start-ups to the investment capital they need to grow.

What kind of financial support does AstroLabs Dubai offer to these start-ups? By partnering with the DMCC Free Zone, we’re able to waive all of the upfront costs associated with company set up and licensing. We’re removing one of the major financial barriers for entrepreneurs, making it very easy for local start-ups to get registered and for global start-ups to launch in Dubai and expand throughout the region. In terms of fundraising support, we have a strong network of VC partners. Start-ups from our past programs

www.smeadvisor.com

What’s the top challenge that entrepreneurs face when accessing finance today? Is there a provision for helping a business get financing from investors – or at least advice on the right kind of financial source? Investment capital available to startups has been steadily growing in the MENA region, with several of the major VCs closing new funds and looking for great entrepreneurs to support. As AstroLabs, we are connecting these high potential start-ups with investors to enable their expansion.

After the start-ups graduate from the programme, what kind of support can they continue to access? We’re really building a community, which means the support extends well after a start-up graduates from our SOS programme, takes one of our classes, or grows out of our co-working space. We keep in touch with all of our alumni on a regular basis and have supported them on everything from fundraising to sourcing new talent. Beyond that, we frequently see entrepreneurs and mentors from our past programmes collaborating; it’s a powerful and global network.

What new initiatives can entrepreneurs and start-ups expect to see from AstroLabs in the near future? Are there any exciting developments lined up? We actually just announced the beta launch of our new AstroLabs Jobs portal last week, which we’re very excited about. Securing great talent is still one of the major obstacles to growing a successful start-up, so we’ve built a platform that’s designed to connect high calibre start-ups with high quality people. Some amazing companies like Careem, Glambox, and Souqalmal.com have already signed up and started receiving applications, so we see a lot of potential here.

For an online version, please visit: www.tradeandexportme.com/2015/01/ operation-start-up/

THE NEXT LEVEL

The sweet smell of success When Rasha Al Danhani launched PappaRoti, she took the business world by storm. Not only did she successfully carve her niche in the region, she set quality benchmarks that soon became industry norms. Grabbing a glut of business awards last year, Rasha is at the helm of entrepreneurial success. But, will she stop here? In an exclusive interview with SME Advisor, the exemplary role model shares her vision for 2015…

Tell us a little about yourself. What inspired you to start your own business? Were you always inclined to become an entrepreneur?

How are you using good customer service to differentiate your business from others in the market?

I am a proud Emirati mother and entrepreneur, I have experience in banking, real estate and property management. I always wanted to have my own business and bring original and creative ideas that have an impact on our society and therefore I have started my own companies Al Rasha Investments, Brandnoise and PappaRoti. The PappaRoti business project all started when I was visiting Malaysia. I tasted the delicious buns and I immediately fell in love with the taste and decided to create the café concept around it. I did very thorough research to understand the process to set it up. I spent time studying the brand, the concept and had a hands-on approach to establish it and of course I had passion which was my biggest motivation.

PappaRoti customers are welcomed and served by a highly professional and well trained team of hostesses and waitresses. Interaction with customers to identify their preferences and tastes is key, especially in such a cosmopolitan country as the UAE. Once the brand image was established and customers positively embraced the “Bun” originating from Malaysia, we had new introductions in our menu in order to cater to the demands of the clients from various nationalities and backgrounds. We are always trying to find innovative ways to interact with and please our customers. We had new bun toppings introduced to the menu including Arabic coffee, fresh juices, a healthy menu and various sandwiches, salads and desserts, which have been very positively welcomed by our customers.

The competition in the F&B industry within this region is immense. How difficult was it to find or create your very own niche? It was challenging at first to bring the PappaRoti franchise because it was a new food concept and we had to go through several stages to get it approved by the relevant authorities and secure the rights to import it. However, I was very confident about the quality of the buns and the PappaRoti concept. I wasn’t wrong as it has shown tremendous success and popularity among people thanks to the unique and authentic taste of the coffee caramelized-coated buns and the topnotch quality of beverages that we serve, in a stylish and comfortable ambiance.

How is running a franchising business different? Does it pose additional challenges? It is quite different and involves several stages. Expanding operations overseas and being compliant with the different rules and regulations that often vary tremendously from one country to another even in the same region is quite challenging. Also, operating in the food service/ café industry requires compliance with some very strict rules and regulations that are usually imposed by governments. You always need to do a professional study of the market and need to have a clear

www.smeadvisor.com

the next level

understanding of the rules and regulations in each country while at the same time tying it up with regional/international partners who have the right expertise. You must also always have a strong knowledge of the local markets and logistics to facilitate the operations and secure high quality of service.

Maintaining quality standards across your range of stores is a primary goal. How do you manage this? PappaRoti is a unique snack and cafĂŠ concept that has shown remarkable success and popularity among people thanks to the quality and the memorable taste of our buns and the beverages that we serve. People love the buns and are always expressing their positive feedback. The additions we made to the menu were also very well received as we are catering to customers who are visiting PappaRoti CafĂŠs more and more not only to socialise over a quick drink and a delicious bun but to stay for longer periods to relax, read and work and enjoy a wide variety of selections.

2014 has been a fantastic year for you with several prestigious Awards and honours coming your way. What would you attribute this success to?

Rasha Al Danhani

My family, colleagues, friends and employees. They are all behind my success. Thanks to them I always have strength and dedication to advance in my enterprise. I am also a proud Emirati, and consider myself lucky to be living in a country that supports women initiatives and believes in their capacities.

THE NEXT LEVEL

One of the most important things for entrepreneurs is to choose a business that is innovative and that they are passionate about.

What do you hope to do differently in 2015? I wish to continue this rewarding journey and keep growing my business while also continuing to support my community.

Where do you see your business in the next five years? I hold the franchise licensing rights for PappaRoti in the GCC, Middle East, CIS, North Africa, India, Paris, Switzerland and Brazil. We are planning to have at least one branch in each of the countries where we have the franchise rights.

If you were to describe your entrepreneurial journey so far in one sentence, what would it be? It has been an incredibly rewarding and passionate journey.

What is your personal leadership mantra? I believe that a positive attitude and strong beliefs create a positive atmosphere that enables you to push forward. I also like to adopt a hands-on approach where I lead by example by empowering myself and training myself first. It is very important for me to instill confidence and trust in the employees around me.

Youâ&#x20AC;&#x2122;ve become a role model to several women looking to open their own businesses â&#x20AC;&#x201C; what are three top tips you would like to share with them?

I would like to encourage all women and especially Emiratis who have the passion to become entrepreneurs, to strive and work hard because with sincere dedication and hard work anything is achievable. One of the most important things for entrepreneurs is to choose a business that is innovative and that they are passionate about, moreover, it is equally important to understand your business inside out and be an open-minded leader.

What advice would you give to aspiring business owners in the region? I would repeat all of the above, passion, dedication, innovation, but also add, that in order to establish a successful business, entrepreneurs have to introduce a new concept or idea that differentiates them from other businesses in the market, conduct a professional study of the market, know it inside-out of their business and adopt a hands-on approach.

www.smeadvisor.com/2015/01/the-sweetsmell-of-success/

www.smeadvisor.com

presents

BUSINESS INTELLIGENCE FOR INTERNATIONAL TRADE www.tradeandexportme.com

Contents

64 ADVISORY BOARD Key personalities sharing their expertise to ensure that we bring you the latest trends and issues in the field of trade. Hospitality & Tourism 66 Untapped opportunity â&#x20AC;&#x201C; medical tourism We give you a lowdown on medical tourism and the initiatives in the pipeline. Country Focus 70 Hidden Champions, German SMEs Dr. Dalia Abu Samra-Rohte, Deputy CEO, German-Emirati Joint Council (AHK) and Director of AHK Abu Dhabi Office, gives us an overview of the German SME sceneâ&#x20AC;Ś

The DHA has collaborated with the General Directorate of Residency and Foreigners Affairs (GDFRA) to implement a new rule that will allow overseas patients who wish to seek treatment in Dubai avail visa packages. p66

TRADE AND EXPORT MIDDLE EAST

SMEs looking to obtain low cost or even free information on foreign markets should first contact the export promotion agency. p72

Strategy 72 Removing export inertia Dr. Ashraf Mahate, Head of Market Intelligence, Dubai Exports, shares top insights on how exporting SMEs can deal with psychological barriers. VIP Interview 76 The gateway to the Gulf Edwin Lammers, Executive Commercial Manager, speaks to Trade and Export ME about SOHAR Ports and Freezoneâ&#x20AC;&#x2122;s growth strategy and the opportunities that this world-class entity offers. Legal 80 The UAE Competition Law Justine Reeves and Rebecca Hilton, legal experts from Clyde & Co. offer a comprehensive outline of the scope of the new law and how it can affect your business.

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

www.tradeandexportme.com

Put your business in Dubai’s most prestigious location

Now available in Downtown Regus offices are ready-to-work and with no set-up costs or long term contracts offering you total flexibility. • Fully equipped, just walk in and start work • Pay only for the space you use • Terms to suit any size of business • World class IT and telecoms • The flexibility to change location at any time • 10 locations across Dubai and 2000 worldwide

Our business centres in Dubai give you all this and more Call now and book a free tour

800 73487 regus.ae

TRADE & GROWTH

Untapped opportunity Medical Tourism

Dubai’s vision to attract around 20 million visitors by 2020 coupled with its growing healthcare infrastructure has created a whole new sector of opportunities – Medical Tourism. What is the ‘X factor’ making this an attractive segment and how can your SME maximise the benefits of this lucrative sector? SME Advisor investigates…

The UAE, over the past 43 years, has built a reputation as an economic powerhouse. Rich oil and gas reserves may have paved the way for the wealth and development of the nation, but its leaders’ undeniable ambition for further growth led to the ground-breaking diversification of its economy. With the country’s GDP now exceeding USD 1 trillion as compared to USD 1.8 billion in 1971, a rate of growth that exceeded even that of Singapore, it is clear that the UAE has really come a very long way. The impressive progress within the nation occurred in what seems to be just a short period of time, owing it all to the extraordinary efforts and dedication of its people,

www.tradeandexportme.com

TRADE & GROWTH

The spread of luxurious chain of hotels throughout the country have also been among the main contributors to the development of tourism.

www.tradeandexportme.com

which has been the key driving force behind the landmark achievements that transformed the UAE into the second largest economy in the Arab world. A premier destination According to World Economic Forumâ&#x20AC;&#x2122;s Global Travel and Tourism Competitiveness report of 2013, the UAE leads the MENA region in attracting tourists, and ranks as the 28th most attractive destination worldwide. Despite having limited natural tourist attractions, it has created a rich cultural resource base, and has built a reputation as a preeminent business and leisure hub. Highlighting the bright future ahead for the tourism sector in the UAE,

a report by the Dubai Chamber of Commerce and Industry stated that in the long-term, the growth in the nationâ&#x20AC;&#x2122;s tourism industry will grow at 6.5 per cent per annum between 20112021, with visitors primarily coming in from neighbouring Middle Eastern countries, Europe and Asia. Sentiments reflected in the report prove how vibrant this sector is. Industry experts in the region cited that capital investments in this industry are expected to rise annually by an average of 4.1 per cent to reach AED 143 million by 2023. The spread of luxurious chain of hotels throughout the country have also been among the main contributors to the development of tourism.

TRADE & GROWTH

the DHA has collaborated with the General Directorate of Residency and Foreigners Affairs (GDFRA) to implement a new rule that will allow overseas patients who wish to seek treatment in Dubai OBTAIN SPECIALIST visa packages.

The rise of medical tourism A report by Transparency Market Research released in 2014 indicated that global medical tourism market was valued at USD 10.5 billion in 2012, and is expected to reach USD 32.5 billion by 2019, growing at a CAGR of 17.9 per cent from 2013 to

2019, which does emphasise the great growth potential of the sector. According to the UAEâ&#x20AC;&#x2122;s National Council of Tourism and Antiquities, the country will be an ideal destination for patients seeking treatment abroad, as it offers internationally recognised facilities

Spotlight on the statistics

Projected growth Medical tourists

107,000

170,000

500,000

Revenue

AED 652 M

AED 1.5 B

AED 2.6 B

USD 1.6 bn

yearly profits generated in the medical tourism market

10-15%

Increase in the number of medical tourists in Dubai each year estimated by Dubai Health Authority

8.7%

Total health sector revenue of Dubai from medical tourists

www.tradeandexportme.com

TRADE & GROWTH

and competitive costs. In addition to routine operations and cosmetic procedures, the UAE also hosts specialised centres for oncology, genetic disorders and diabetes and new facilities for rehabilitation, pediatrics and integrated medicine. So, how is the UAE harnessing the potential opportunities in this attractive segment? In 2011, the Dubai Healthcare City recorded a sharp growth in the segment, with 15 per cent of patients received were medical tourists. Recognising the promising growth of this sector, plans have been formulated to develop and promote Dubai as a world-class hub for medical tourism as a part of the Dubai Health Sector Strategy 2013-2025 launched by the Dubai Health Authority (DHA). Under the objectives of the strategy, Dubai plans to attract 500,000 medical tourists a year

and boost the economy by up to AED 2.6 billion over the next five years, targeting travellers from Russia, GCC, CIS countries and South Asia. The medical tourism strategy identifies medical areas such as orthopaedic and sports medicine, plastic surgery, ophthalmology, dental procedures, dermatology and skin care, as part of its offering. Furthermore, the DHA has collaborated with the General Directorate of Residency and Foreigners Affairs (GDFRA) to implement a new rule that will allow overseas patients who wish to seek treatment in Dubai obtain specialist visa packages. Although this type of entry permit in to the UAE has already been in place since 2008, under the Strategy 2013-2025, this will be extended to specialised clinics and wellness centres.

Essa Al Maidoor, DirectorGeneral, DHA, said: “Dubai is the world’s leading destination for tourism and leisure and since it offers excellent health-care facilities, medical tourism is an extension of the hospitality that Dubai is synonymous with. Ensuring that all players work hand-in-hand with us and are aligned with the overall medical tourism strategy will ensure smooth functioning of a dynastic health sector and will benefit both medical tourists as well as the health-care providers.” Additionally, the DHA plans to build 22 hospitals including 18 private and public hospitals in the next few years to support the high volumes of medical tourists. www.tradeandexportme.com/2015/01/ medical-tourism-evolving-landscapeuntapped-opportunities/

Expert’s Corner

Industry trends and prospects -as identified by Euromonitor International • In line with medical tourism in other world locations, a special emphasis will be placed on certain disciplines of medicine, such as cosmetic surgery, general check-ups, dermatology, and dental procedures that are traditionally favoured by health and wellness tourists. • Special attention is also being paid to lifestyle diseases, such as obesityrelated illnesses that are prevalent in the region. Thus, the focus is not only to attract visitors from far afield locations, such as the newly emerging market countries, but also customers from neighbouring countries and local residents. • Medical tourism accounts for the overwhelming majority of activity in terms of value sales within the health and wellness tourism

www.tradeandexportme.com

category, and makes up an 84% share of the category in terms of value sales. • The largest numbers of customers have come from neighbouring countries that have yet to develop the same standard of sophistication in terms of healthcare facilities; with the most popular treatments sought by these medical tourists to the country being IVF/infertility, cosmetic and dental care treatments. • Overall, the UAE is proving to be an attractive location for medical tourism because of its competitive prices (relative to Western countries), English and multi-lingual speaking staff and the ability to quickly access treatments without long waiting periods • The UAE benefits from being located at the cross roads of three

continents, and thus from being a prime location from which to continue to attract medical tourists to the country. • Having heavily invested in developing a state of the art medical infrastructure and on the attainment of internationally recognised levels of accreditation for its medical facilities, the country can now boast of offering levels of medical services similar to those available in first world economies. • Finally, having extensively invested in its tourism infrastructure, the UAE is able to offer medical tourists premium, luxury accommodation and infrastructure relative to most other locations. • Dubai Healthcare City (DHCC) is the leading hub for medical tourism in the UAE with some 120 medical facilities.

COUNTRY FOCUS

Hidden Champions German SMEs

Germany arguably has one of the most successful SME sectors. In fact, German SMEs are often referred to as “Hidden Champions”. In the following feature, Dr. Dalia Abu Samra-Rohte, Deputy CEO, German Emirati Joint Council (AHK) and Director of AHK Abu Dhabi office, gives us an overview of the German SME scene...

Just to name a few success factors which have been published by the German Federal Ministry of Economic Affairs and Energy: In Germany SMEs contribute 52 per cent to the German economy. They are posing 39 per cent of the total turnover by all German firms with an absolute turnover of two trillion Euro, excluding the turnover of foreign subsidiaries. In comparison to that, the turnover of 30 DAX-listed (German stock exchange) companies amounted to 1.19 trillion Euro, including foreign subsidiaries. The positive impact of German SMEs on the German economy is also reflected in the employment statistic. They provide majority of jobs and contribute to maintain a low unemployment rate especially among young people. The relatively low youth employment is due to the strong vocational training, offered throughout

different industries. This goes hand in hand with the dynamic SME structure. Vocational training is key to secure a highly qualified workforce and is a stepping stone to an academic career. It enables young people to get practice and work combined with a theoretical training. Overlooked by the local German Chambers of Industry and Commerce (IHKs), specialised vocational trainers are delivering qualified training. They are instructors and skilled workers at the same time and receive continuous training and qualifications to provide efficient and highly professional competence. Another important factor for the success of German SMEs is innovation. Compared to other European countries 54 per cent of the German so called “Mittelstand” companies brought a product or process innovation to the market between 2008 and 2010. They

www.tradeandexportme.com

COUNTRY FOCUS

continuously invest in research and development. Their flexibility has managed to grow through the financial crisis. Contrary to a number of countries, German SMEs are world market leaders. The German government offers a number of instruments to support export and internationalization for SME companies. One of the instruments for export promotion are the German Chambers Abroad (AHK), supporting German companies in entering the market. With offices in 90 countries, AHK is also present in the UAE with the German-Emirati Joint Council for Industry and Commerce in Dubai and Abu Dhabi. They are cooperating in several export promotion programmes targeted toward the export of SMEs, offered by the German government. These focus on special industries like

www.tradeandexportme.com

renewable energy, agriculture, food or health. With the support of the AHKs German SMEs have the opportunity to get the first orientation in a foreign market and support in order to overcome the first obstacles. According to a study done by Deloitte in 2012, every second German SME exports to the Middle East. Today we witness a number of German SMEs in the Middle East. While they have not (yet) considered the Middle East as a production hub a number of them have representative or sales offices and utilize the Middle East and Gulf Region as a profitable export market. Just to name a few, one encounters in the daily life: Würth Group was founded in 1945, producing fastening and assembly material trade. Today, the group counts about 65,000 employees and a turnover of around 10 billion Euro. As they work with trading agents in the UAE you can find them today in numerous situations in life. Another German SME Vossloh has positioned itself very successfully within the rail infrastructure projects in the UAE, winning the tender for the fastening systems. Diehl, a Bavarian family owned company, located in Nürnberg, specialising in cabin equipment, has also managed to gain market shares in the UAE. One is more at ease with a more luxury product like Mühldorfer Betten. A family owned business in the third generation, managed by two sisters, selling high quality bedding and delivering all 5 Star Hotels all over the world. The company enjoys a success story in the UAE with their high quality feather beds. Last but not least the German food sector has numerous internationally active SMEs. Only to mention two, Haribo GmBH, with its sweets “Gummibärchen” are an established brand worldwide. The family owned company was founded in 1920 and has today about 6,000 employees. Dallmayr coffee is also known as a successful coffeehouse which has a well-established distribution network all over the UAE.

The German government offers a number of instruments to support export and internationalization for SME companies.

For an online version, please visit: www.tradeandexportme.com/2015/01/ hidden-champions/

Strategy

Removing the export inertia Why do psychological barriers hinder SMEs from exporting? Exporting can be a key step towards taking your business to the next level. However, in doing so, most SMEs face several hurdles when penetrating other markets, either physical, financial, political or legal. More often than not exporting SMEs also face intangible barriers such as the behaviour and way of thinking of the decision-makers in the company. In the following article, Dr. Ashraf Mahate, Head of Export Market Intelligence, Dubai Exports, shares top insights on how to address these issues...

www.tradeandexportme.com

Strategy

Various studies have shown that the real export barriers are the psychological or behavioural attitudes of the owner or manager.

Exporting is a difficult enough a task and more so the case for SMEs with their limited resources. Therefore, it’s not surprising to see that in most countries only a small proportion of SMEs actually earn any revenue from exporting activities. In Dubai where SMEs account for 98.5 per cent of all firms but less than 10 per cent earn any form of export revenues. Most export sales by SMEs are modest in terms of scale with 38 per cent of exporters of goods (as opposed to service providers) generating less than AED 100,000 in export sales per annum. Furthermore, 68 per cent of the firms that export earn less than AED One million worth of exports per annum and altogether these firms account for less than one per cent of total exports and re-exports by value. Statistics show that a little less than 1,200 firms export more than AED10 million worth of

www.tradeandexportme.com

products a year, yet they account for over 80 per cent of exports and reexports from the emirate. With such a low level of export activity by SMEs leads to the natural question which is why are they not exporting? The importance of this question is underpinned by the fact that exports allow firms to enhance their competitiveness, provide opportunities for growth and innovation as well as technology transfer, diversify their revenue base, benefit from economies of scale and of course increase profits. Essentially, there are two main reasons as to why SMEs do not tend to export namely internal and external barriers. The internal barriers tend to refer to those which relate to the firm and typical examples include: an inability to identify foreign business opportunities, limited information to locate and analyse markets, being unable to contact overseas customers, having difficulty in matching competitors’ prices, shortage of working capital to finance export and so on. On the other hand external impediments are those outside the immediate control of the firm and tend to include the level of export procedures and documentation, tariffs, non-tariff barriers, protection etc. The internal and external export barriers themselves are not sufficient to impede any overseas activity. Various studies have shown that the real export barriers are the psychological or behavioural attitudes of the owner or manager. Unfortunately, due to the control of the owner on the strategy and operations of the firm and lack of specialist managerial resources tend to be more prevalent within SMEs. A typical example of such psychological barriers is whereby the owner or manager is not interested in exporting and hence the internal and external barriers are perceived to be significant and little value is seen in overseas earnings. Where the owner or manager is interested in exporting but not actually exporting one has the opposite effect and barriers are not regarded as challenging. However, these firms

do not enter the export arena because they perceive lack of information to be a huge problem. Owners or managers with some level of export experience tend to exhibit least level of perceived barriers towards exporting. These firms believe that exporting challenges or hurdles can be overcome and tend to have a positive attitude towards overseas sales. This implies that two SMEs operating with similar internal and external export barriers will not necessarily perceive these barriers to impact their businesses the same way. In the case of the service sector the owner’s or manager’s perception has a far more important impact on export behaviour. The main reason for this is that in the service sector the protection of intellectual property is a key concern and can determine the long term survival of the firm. This is more so the case for SMEs who may have possibly one or at best a few intangible assets. Of course it is relatively easy to obtain some form of intellectual property protection through patents or copyrights. However, in foreign markets the main fear is the difficulty to prove violations to intellectual property. Therefore, the owner or manager perceives a higher risk in exporting to countries where a firm’s intellectual property is vulnerable to imitation. Even if laws exist to protect intellectual property the legal system in the country may be so difficult that it makes any form of legal action useless. Therefore, this argument suggests that the absence of a proper regulatory environment or a deficient legal system discourages the owner or manager from exporting services. The reality of the situation is that the risks of exporting in the service sector are no more than those in the manufacturing sector. Again, surveys of owners and managers show exporting SMEs from the service sector perceive fewer risks in exporting than non-exporting SMEs. It’s fairly conclusive that in both the manufacturing and service sectors exporting firms who may experience identical barriers or risks perceive

Strategy

SMEs looking to obtain low cost or even free information on foreign markets should first contact the export promotion agency.

them to be less of a challenge than non-exporting firms. This leads us to conclude that exporting is simply an issue of mind over matter. More importantly, the starting point to exporting is for the SME to overcome their initial fear or inertia towards overseas activity. There are a number of ways in which SMEs can start the process of dealing with their initial export fears. In the world of exporting â&#x20AC;&#x153;information is kingâ&#x20AC;&#x2122; which implies that SMEs need to collect and analyse data on their key target countries. This allows them to have a better understanding of the market environment of their target country and the possible hurdles that they may face. However, with the appropriate information the SME can develop a suitable strategy as well as develop a contingency plan. One has to appreciate that things do go wrong and contingency planning is very important. This is more so the case for less developed countries but can also be equally important for major countries. A case in point is that the recent volcanic ash stopped all flights to Europe and exporters had to find new means of sending their air cargo to the region. In reality information can be very expensive however SMEs looking to obtain low cost or even free information

on foreign markets should first contact the export promotion agency. In Dubai the source for such information is the Dubai Exports who provide a host of information based services to local firms. There is nothing like a visit to the target country to obtain a first-hand understanding of the consumer as well as government attitudes towards imports. More importantly, a foreign market visit allows the SME itself to make up its own mind regarding the potential hurdles and how it can best deal with them. Of course such foreign market visits also increase the international orientation of owners or managers. In other words the SME may not necessary export to the country where he conducts the first foreign market visit but it allows him to understand the overseas market and compare his experiences with future visits to other countries. A number of surveys show that a greater international orientation of SMEs makes them more likely to carry out exporting activities. Export promotion agencies such as the Dubai Export Development Corporation also conduct foreign market visits and trade missions whereby firms can meet both private sector counterparts as well as government officials. These foreign market visits allow SMEs to meet with

www.tradeandexportme.com

Strategy

Research and foreign markets are very important change agents as far as owner or manager perceptions are concerned.

www.tradeandexportme.com

organisations and individuals who they would not normally have access to due to their size or the cost or arranging such meetings. In many cases these foreign market visits are also coupled with a B2B programme whereby firms can connect with potential buyers, agents or distributors. Research and foreign markets are very important change agents as far as owner or manager perceptions are concerned. However, SMEs face the real problem of not being paid once they deliver the good or service. It is very rare for an exporter to be paid in advance and the normal manner is for payment to be made after delivery. Of course this has the risk that the importer may not pay the exporter once delivery has been made. The normal manner to deal with this problem is to ask the importer to open a letter of credit. However, this may be expensive and in some markets not sufficient. An alternative method of ensuring that SMEs obtain their payment is to acquire export credit insurance. This means that exporters can receive the payment due to them in the event that an importer defaults. Of course there is a small premium that needs to be paid and usually this can be incorporated in the price that is charged to the client. In the UAE this type of insurance is offered by the Export Credit Insurance Company of the Emirates which is a government entity. Once SMEs have conducted or acquired the necessary research, carried out a foreign market visit and ensured that they will be paid then there is no reason for them not to get on their bike and carry out export activities. Of course, like anybody who has learnt to ride a bike knows that the process is not complete without a fall or two and perhaps a scratch. Once one has learnt to ride a bike the skills are never forgotten and no bike however large ever becomes a challenge.

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.

VIP INTERVIEW

The gateway to the Gulf

Costs, infrastructure, ease of doing business and location are among the crucial factors exporters need to keep in mind when looking at setting up base in a port or freezone. Situated outside the Strait of Hormuz, offering premier solutions and one of the fastest growing business hotspots in the region, SOHAR Ports and Freezone (SOHAR) just ticks all the right boxes. Edwin Lammers, Executive Commercial Manager, shares the world-class entity’s growth strategies and opportunities...

Can you please give us a brief background about SOHAR Port/ Freezone (SOHAR)?

How has the year 2014 been for SOHAR? Are there any industries within you portfolio that did better than others?

SOHAR Port and Freezone is a deep sea port and free zone in the Middle East, situated in the Sultanate of Oman around 200 kilometres northwest of its capital Muscat. With current investments exceeding $15 billion, it is one of the world’s largest port and free zone developments and provides unequalled access to booming Gulf economies while avoiding the additional costs of passing through the Strait of Hormuz.

The year 2014 was extremely successful and was full of historic milestones for SOHAR and Oman. Container terminal operations were relocated and expanded as part of a US$130 million project to increase capacities to 1.5 million TEU at SOHAR. The first ever 10,000 TEU vessel to call at the port was welcomed in May, and a few months later in August, all commercial traffic was shifted from Muscat after 40 years of having served as the nation’s sea trade centre. This

www.tradeandexportme.com

VIP INTERVIEW

year therefore marks the start of a new chapter in Oman’s long and industrious maritime history, and we are delighted to have welcomed 2,000 ships in a calendar year in 2014 – also a first since SOHAR was established as a joint venture between the Government of the Sultanate of Oman and Port of Rotterdam in 2002. This is remarkable given ten years ago we had just 42 ships. Cargo volumes have increased significantly across all types, with exceptionally strong growth in dry bulk cargo, and with a full year of consolidated container traffic ahead and scheduled ships bringing 1.2 million TEU in capacity, 2015 promises to be even better for SOHAR.

How important is trade for Oman? How much does it contribute to the GDP?

Technology, and especially automation, is an important feature of any modern port and freezone.

www.tradeandexportme.com

Trade is as important for Oman as it is for any other country in a global economy. Like many countries in the world, China is one of the largest markets for Oman. In the first half of 2011, bilateral trade reached US$6 billion and in just three years this has grown to US$23billion, making Oman China’s fourth largest trading partner in the Middle East. According to economic figures Oman’s economy also benefits from a US$2.5 billion surplus with Japan. This surplus includes imports from Japan of US$3.13 billion, which are offset by exports of US$5.63 billion. And, while oil, gas, aluminium, and fishing produce make up most exports, the fact that SOHAR has signed deals that will increase auto throughput to 200,000 annually bodes well for the development of new revenue streams. Toyota, Daihatsu, and Nissan among already among the global manufacturers that are handled at the port through agreements with national businesses houses.

How do you ensure that the port infrastructure keeps up with the global trade standards?

Technology, and especially automation, is an important feature of any modern port and freezone. It is also something that requires integration with physical infrastructure and is something we strive to maintain at SOHAR. Last year, for example, we announced an agreement with Belgian software developer Phaeros to replace our systems with the latest electronic port management and invoicing application software: ‘Harbour View Plus’ and ‘BillSys’. Harbour View Plus will link to automatic identification systems, while BillSys will also streamline invoicing at the cargo terminals, where billing is considered one of the more difficult processes in the industry due to the complexity of contracts, number of different charges, and availability of data. This year there are also plans to install several new features aimed at further increasing efficiency and productivity.

How are you building connectivity with other major ports in the GCC?

SOHAR has built connections with other ports in the region via sea, air, and road links that are continuing to expand at a rapid pace. Most recently, Sohar Airport opened at the end of last year and brings with it 50,000 tonnes of air freight cargo capacity. At the same time, end-to-end operations in the haulage industry carry on average more than 90 percent of goods in value, with 80 percent of inland freight volumes still moved by road. However, while our vision is to serve the GCC region as its port of choice,

VIP INTERVIEW

Public-private partnerships like SOHAR are an excellent way of bringing together the vision of the worlds’ leaders with the entrepreneurial nous and business acumen of the private sector. In this sense you get the best of both worlds, and according to the World Bank these types of partnership are increasingly popular in delivering infrastructure and other essential public services. This is because they offers benefits in terms combining risk transfer with the incentives of the private sector, and in many cases are thought of as providing value for money and healthy competition. This is what we seek to emulate at SOHAR, and with US$15 billion in investment we have certainly added value to the economy and will continue to develop strategies that complement Oman’s vision of diversifying its economy away from oil to sustain a modern and prosperous nation. Edwin Lammers, Executive Commercial Manager, SOHAR Ports and Freezone

we also have one eye on our role at the centre of trade routes between East and West through a global network that is being led by Port of Rotterdam. The most recent addition to this network is Porto Central in Brazil, which will mirror many of the industries at SOHAR and will create synergies between Latin America and growth we have seen in the Far East.

According to you, how important are public and private sector partnerships? On your side, how do you ensure that your strategies are aligned with the vision of the Omani government?

The much anticipated GCC railway network is expected to further boost cross border trade among the gulf nations. In your opinion, how vital is this project in developing the trade sector of Oman and more specifically how important is it for the growth of SOHAR? Rail is one of the reasons why Oman’s logistics network is projected to grow beyond US$12 billion by 2017, and with US$250 billion allocated for the construction of 67,000 kilometres of railway lines the Gulf Railway will play a major role in turning forecasts into reality. A rail terminal at SOHAR is also central to our own plans of becoming a regional hub for global trade. As this network grows, the value created by transporting cargo by rail

will grow further. At the same time, rail links have the additional benefit of increasing efficiency and reliability, improving road traffic management, increasing transit volumes and cutting costs, and reducing the pressure on the environment.

How is SOHAR different from other free zones? What would you say is your USP? Our partnership with Port of Rotterdam is our USP. When the partnership was created Port of Rotterdam was the world’s busiest port and even now still ranks in the top 10 around the world. The 600 years of logistical and maritime experience on offer through this agreement is unrivalled in the region, and is behind the transfer of knowledge vital for sustaining double-digit growth over the past 12 years. With support from the Omani government, the onestop-shop that makes it easier for businesses to set up in SOHAR and many of the incentives that have been established have been influenced and guided by our colleagues in Holland – 100% foreign ownership, up to a 25 year tax holiday, and access to Free Trade Agreements with the US and Singapore are prime examples. On top of this, SOHAR offers an abundance of competitive land and energy rates, natural resources, and a young workforce that is eager to contribute to Oman’s success.

How important are SMEs for SOHAR and what percentage do they occupy in your portfolio? What kind of incentives do you offer for businesses looking into setting up in SOHAR?

www.tradeandexportme.com

VIP INTERVIEW

From global manufactures and major shipping lines to family-run companies, SOHAR has established itself as the place to be for businesses of all shapes and sizes. SMEs are vital to our vision of a balanced portfolio and are given all of the tools they need to succeed from the outset. In addition to the incentives already mentioned, we require low levels of core capital as a prerequisite for trading – an important consideration for any aspiring start-up or SME. At the larger end of the scale, multinational tenants make up around 20 percent of our portfolio and include Al Taman Indsil, Harsco, Dunes Industries, Brazilian iron ore giant Vale, and Indian steel manufacturer, Jindal Shadeed. A growing number of companies are operating at the larger end of the scale on the Freezone too, generally from 11 hectares (110,000 sq metres) to 50 hectares (500,000 sq metres).

For traders and exporters looking in to operating in SOHAR, how can they go about setting up in the free zone? SOHAR Port and Freezone offers a single window through which all licenses, permits and approvals can be obtained. In practice this means that Freezone clients require very little interaction with the various governmental institutions and can concentrate on what they need to accomplish to ensure the success launch of their new business.

What are the trends that you see in the GCC trade scene for 2015? Which sectors do you think will lead the growth of the trade industry in this region, especially in Oman?

www.tradeandexportme.com

Energy, food, and construction are all areas that we have foreseen growing in the GCC, and are behind our plans for the year ahead. For marine industries and others alike, the pursuit of alternative fuel supplies and increasingly stringent regulations around the use of certain fuels are accelerating research and development in LNG technologies. We will soon begin offering one of the world’s only shipto-ship transfer services based on this trend, and expect this industry to grow in line with increasing global demand. It is also important to remember that 90 percent of the region’s food is imported. Construction of Oman’s first dedicated agricultural terminal, grain storage, refinery, and downstream packaging industries at SOHAR will seek to leverage on this market and bring at least sum of this supply chain closer to its market. Meanwhile, a second construction boom in UAE is driving growth in a region with a 12 million tonne shortfall in steel production.

What is your growth strategy in the next 3-5 years? Which markets will you be focusing on and what kind of investors would you like to attract in the future? During our relatively short history, we’ve kept our KPI’s realistic and measurable and we see no reason to change. Our three main focus areas as the SOHAR Group will therefore be: as a business promoter and enabler; as a port and free zone authority; and as an organisation – how we operate and what can be done to improve this. In terms of markets, what this means is that we will continue to grow our interests in the core clusters set up under the original concession agreement with Port of Rotterdam – metals, petrochemicals, and logistics. Agriculture markets will take on

increasing significance in the coming 3-5 years, with the auto industry also on the horizon.

If I am an SME owner, what are the steps I need to undertake to set up my office in SOHAR Port? What are your basic requirements?

The first thing that we encourage companies to do is to check our website and the types of licenses we are able to offer. The next step is to read guidance notes provided on the site in relation to transforming a prospect into a company, contracts and ground breaking, and labour and visa rules. Once an enquiry is made we can then put businesses in contact with our dedicated commercial team to offer guidance.

In your experience of working with SMEs across different industry sectors, what are some key challenges that they are faced with? While we ensure SMEs are supported, there are some challenges that are generic to the sector. These include funding, recruitment, and costs. However, while we cannot control these or intervene in day-to-day business operations, we have created links with schools and education facilities that provide skilled graduates and trainees and remain committed to offering additional support in order to ensure SMEs’ success – after all, the success of SOHAR ultimately depends on our ability to create an environment where entrepreneurship, innovation, and growth can flourish. www.tradeandexportme.com/2015/01/ the-gateway-to-the-gulf/

LEGAL

The UAE Competition Law The Executive Regulations in relation to the UAE Competition Law came into force recently. Justine Reeves and Rebecca Hilton - Legal Experts from Clyde & Co. - offer a comprehensive outline of the scope of the new law and how it can affect your business...

Following previous updates on the UAE Competition Law, we know that the legislation regulates certain anti-competitive practices and M&A activity. In the following feature, we focus on the merger control provisions. While the Regulations clarify a number of areas, they do not set out the market share percentage which will trigger notification; this is to be specified at a later date by the Council of Ministers. When fully implemented, the requirement to pre-notify mergers and acquisitions creating potentially anti-competitive ‘economic concentrations’ will be a new step in corporate regulatory control in the UAE. Scope of the regulations The Regulations deal with procedures relating to: exemptions from the rules on restrictive agreements and dominant position (Chapter 1); economic concentrations (Chapter 2); and the examination

of complaints (Chapter 3). In each case, the relevant party should apply to the Competition Department of the UAE Ministry of the Economy (Department). The Department will consider the application and make recommendations to the Minister of Economy who issues a resolution on the relevant matter. Economic concentrations The concept of ‘economic concentration’ is widely drafted to capture not only traditional share acquisitions but also transfers of assets and liabilities from one entity to another. Where a proposed economic concentration may affect competition in a ‘relevant market’, particularly to create or enhance a dominant position, an application for preapproval should be submitted to the Department at least 30 days prior to ‘the date of concluding the contract or the agreement concerning the economic concentration’.

www.tradeandexportme.com

LEGAL

An application must be made where the market share of the parties participating in the economic concentration exceeds a specific percentage of the total transactions undertaken in the relevant market. As noted above, the Regulations state that such percentage is to be specified by the Council of Ministers. Various supporting documents must be submitted with the application, including in particular a report on the economic effects of the economic concentration, stating the advantages thereof on the relevant market, and including suggested obligations and procedures to eliminate any potential disadvantages. Note also that any information submitted which the parties wish to be treated as confidential must be clearly marked as such, and the applicant should also submit a non-confidential summary of such information. The parties to the transaction must authorise one of their number to submit the application. We expect that in most cases, the buyer will wish to run the process. The authorised party must act under a notarised special power of attorney. When considering any application, the Department will consider: • The level of actual and potential competition in the relevant market • The ease with which new participants can enter the relevant market • The potential impact on prices of the relevant commodities/services • The extent to which regulatory impediments may affect access to the relevant market • The potential for the creation of a dominant position in the relevant market • The potential effect on creativity, innovation and technical efficiency • The extent of contribution to investment promotion, export promotion or supporting the capacity of national Establishments to compete on an international level. Note that this factor may have particular significance where

www.tradeandexportme.com

the strategic importance of the business to the economy outweighs competition concerns, particularly in relation to locally important industries and sectors • The effect on consumers’ interests The Department may request additional information from the applicants and also consult with any third parties which it considers may be affected. The Department prepares a report on the proposed economic concentration, evaluating in particular the impact on competition in the relevant market, and makes a recommendation on the proposed resolution. The Minister must issue his resolution within 90 days of receipt of the application, although he may extend this for an additional 45 days if he sees fit. He must issue a reasoned decision and can issue an approval, a rejection or an approval subject to conditions. If he fails to issue a resolution within this time frame, the economic concentration shall be deemed to have been approved. The approval of an economic concentration may be revoked in certain circumstances e.g. for non-compliance by the parties with any stipulated conditions. The parties are expressly prohibited from carrying out any disposal or procedure concerning completion of the economic concentration until the Minister has issued the resolution. This contrasts with, for example, the competition process in the UK, where the parties may elect to complete the transaction and take the risk of adverse findings should the merger be investigated. Complaints, appeals and settlement Chapter 3 sets out the process whereby any ‘stakeholder’ (which appears to capture any interested third party) can file a complaint with the Department in relation to a violation of the Competition Law. Complaints shall be filed in writing or electronically

in accordance with a process to be specified by the Department. The Department may also conduct investigations on its own initiative. A party subject to a complaint shall have the right to submit a defence and to contest the allegations. The Department may request any data, documents or statements which it deems of assistance in examining the complaint from the parties to the complaint or other parties and may hold meetings and take any other measures it deems necessary. The Department prepares a report for the Minister, who in turn must issue a reasoned resolution on the matter within 30 days of receipt of the report. The risk of complaints by third parties, potentially leading to lengthy periods of dispute and negotiations, may encourage parties to make a clearance application even if there is doubt around whether such an application is required. The Regulations allow a party to seek a re-examination of any resolution issued by the Minister. Any such application must be filed within 14 days of the resolution being notified, setting out the grounds for re-examination and supporting documents. The Committee then has 10 days within which to make a recommendation to the Minister, who in turn makes a ruling within 30 days of the application The Minister or his deputy may also seek a written settlement with the parties in breach at any time prior to the filing of a penal case. Any party in breach must pay a settlement amount of not less than twice the minimum applicable fine. If a party fails to comply with the settlement terms, the Department may refer the violations to the competent court. Practical implications It remains to be seen how the processes described above will work in practice. In particular: • The Council of Ministers decision on the relevant percentage in relation to market share will be crucial in

LEGAL

The concept of ‘economic concentration’ is widely drafted to capture not only traditional share acquisitions but also transfers of assets and liabilities from one entity to another.

the practical application of the Competition Law and Regulations. At the time of drafting, there is no set timeframe for this decision to be issued • No further guidance is set out in the Regulations to explain what will constitute a ‘relevant market’ in any given case. Again, this is important to the practical application of the law and the Regulations. The way in which a market is defined may vary and affects whether any economic concentration is captured. For example, the market in luxury leather goods is significantly more restrictive than the market in leather goods or the market in luxury goods and more likely to trigger a notification requirement • It is unclear whether the parties to an economic concentration may proceed to sign a sale and purchase agreement which provides that completion is conditional upon clearance. The Regulations seem to require that only a draft agreement should be submitted with the application; but the parties may not wish to commence a formal approval process without a signed agreement in place • The parties will need to ensure that the requirements to draft the application, in particular the report on economic effects, and to put in place the special power of attorney are factored in to the timetable for the transaction • The implication of the 30-day notice period in respect of economic concentrations is not entirely clear. The Minister has a maximum of 135 days from the date of submission to issue a decision and until a decision is issued the relevant transaction must not proceed. However, if he issues a decision earlier than 30 days after the submission date it is unclear whether the parties would be free to complete • No specific process has been set out to allow for preliminary discussions between parties and their advisers with the Department to help parties to determine whether an approval is needed in relation to a specific transaction. It is unclear whether in

practice the Department will issue informal feedback to allow parties to determine whether or not they must make a formal application in any given case. Given the potentially lengthy time periods involved, it would be useful to allow for a fast-track process • The parties must be careful to mark all information they do not wish to be shared with third parties as confidential; it is also difficult to know how the requirement for a nonconfidential summary of confidential information will be applied in practice. This could have potentially unwelcome implications for parties dealing with highly sensitive commercial information • There do not appear to be any specific sanctions against making a complaint which is later rejected. This may encourage tactical complaints by third parties seeking to derail transactions involving their competitors

Further information If you would like further information on any issue raised in this update please contact: Justine Reeves Head of Knowledge Management E: justine.reeves@clydeco.com Rebecca Hilton Corporate Professional Support Lawyer E: rebecca.hilton@clydeco.com Clyde & Co LLP PO Box 7001 Level 15, Rolex Tower Sheikh Zayed Road Dubai, United Arab Emirates T: +971 4 384 4000 F: +971 4 384 4004 Clyde & Co accepts no responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in this summary. www.clydeco.com

www.tradeandexportme.com/2015/01/theuae-competition-law/

www.tradeandexportme.com

The only event designed FOR the restaurant investment community The Global Restaurant Investment Forum (GRIF) will be THE business conference of the Dubai Food Festival 2015, making it the place to do all your deals in 2015. The event provides a unique platform which brings together key stakeholders in the restaurant investment community in one place to share best practice, innovation, knowledge and address current issues that face the sector. The GRIF programme has been built on four key pillars:

Creating successful concepts Generating growth through franchising Internationalizing your business Innovation and inspiration to improve your existing operations

GRIF

GLOBAL RESTAURANT INVESTMENT FORUM 16-18 February 2015 Conrad Dubai

Informative event where you can interact and understand the players in the industry, a unique forum for all that service the Restaurant industry. Tariq Sanad Managing Director, Lime&Tonic

KEYNOTE SPEAKERS 2014

Through an educational and actionable agenda you can learn how to mitigate the challenges faced when expanding internationally, learn from those with their feet already firmly planted in different markets, tap into their local knowledge, and learn how to roll-out your product without selling its soul.

Nicholas Lander – Author of “The Art of the Restaurateur” (Phaidon) and FT Restaurant Correspondent Brian Johnston Managing Director, International, Wagamama

THE EVENT FOCUSES ON HIGH ENERGY FACE-TO-FACE NETWORKING OPPORTUNITIES, ALLOWING YOU TO FORGE NEW AND EXCITING GLOBAL PARTNERSHIPS IN ONE PLACE!

Farah George General Manager Food & Beverages, AKI Group

GOLD SPONSORS

HOSTED BY

GOLD MEDIA PARTNERS

Three Starred Michelin Chef Heinz Beck – Waldorf Astoria, Dubai Palm Jumeirah

SILVER SPONSOR BRONZE SPONSOR

MEDIA PARTNERS

Levent Veziroğlu Chief Executive Officer, D.Ream

PR PARTNER

SUPPORTERS

www.restaurant-invest.com

REGIS NOW T TER O WITH SAVE O EARLY UR BIRD OFFER

TECH TRENDS

Hot apps of this month! , Rushika Bhatia s view...

Bayt.com The renowned recruitment website recently unveiled a new and improved version of its mobile app. Users can now search and apply for jobs, build CVs, connect to social media networks and stay updated with the latest jobs available in the market. In addition, the app also boasts an advanced notification centre that alerts users when an employer has viewed their profile. Whatâ&#x20AC;&#x2122;s particularly attractive about this app is that it gives latest information on the fastest growing job sectors including average salaries paid across different job profiles â&#x20AC;&#x201C; this is fantastic for business owners to bear in mind when hiring for their own companies!

Available on: iOS and Android Cost: Free

www.smeadvisor.com

TECH TRENDS

Sharikna

by UAE Telecommunications Regulatory Authority

This award-winning application merges business and lifestyle perfectly giving users valuable information, while also keeping them entertained. The social networking app allows users to share updates, upload posts, follow topics of interest and interact with like-minded people. The app’s ‘gaming feature’ lets users participate in fun, collaborative activities and earn points – further encouraging a healthy flow of information and ideas.

Available on: iOS and Android Cost: Free

Design Toolkit for Small Business As the name suggests, this app provides simple guidelines on getting the design process started within your SME. Whether it is your brand logo, company website or professional blog, Design Toolkit for Small Business provides sound solutions. The app walks you through the entire design process with its following detailed chapters: ‘Creating your brand’; ‘Building a website’; ‘Design on a budget’; ‘Special media’; and ‘Elements of quality design’.

Available on: iOS Cost: Free

www.smeadvisor.com

TECH TRENDS

Contactually Struggling to keep up with the vast numbers of contacts in your black book? What if there was an app to do it all for you? Contactually is a revolutionary app that manages your contacts and takes networking to the next level – all in three simple steps. Step One: Upload all your contacts to the app. Step Two: Categorise them into different ‘buckets’. For instance, business contacts, personal contacts, clients and so on. Step Three: Select how often you would like to followup or stay in touch with these contacts. After the successful completion of these three steps, the app does the rest! It alerts you when you need to follow-up with someone and reminds you how long it’s been since you last spoke to them. That’s not all. The app also creates automatic templates for ‘thank-you’, ‘congratulatory’ and ‘best wishes’ messages, saving you considerable amount of time and effort!

Available on: iOS and Android Cost: Free

Tel: +971 4 2512374 Fax: +971 4 2512365 Mob: +971 50 7769662 P.O. Box: 119396, Dubai - UAE www.himatrix.com

Himatrix is a professional company with ISO 9001:2008 quality management system and 17025:2005 accreditations for calibration services and EC type conformity from METAS

Our PrOducts and services Industrial: Truck weighbridges, Check weighers, Cargoscan, Ex proof systems, Heavy Duty Platform scales, Material Handling & Processing Systems, Filling & Batching Systems, Metal Detectors & X-Ray Systems, Process automation systems & solutions Lab & Metrology: Laboratory balances, Analytical equipment & Metrology consultation Retail: Price computing, labelling and network scales Jewellery: Balances, scales and printers Marking & Coding: Inkjet printers, Laser, UDA, Hot stamp, Thermal & DOD Software: Customized MIS application Services & Support: Accredited calibration services, maintenance & support for weighing systems Our Partners

UAE

KUWAIT

QATAR

INDIA

2020 READY

TECH TRENDS

Integrated supply chain solutions that move your business forward. When it comes to integrated logistics solutions across the supply chain, you can trust Al-Futtaim Logistics to get your business moving ahead. Automotive: Vehicles, Spare Parts, Machinery | Retail: Fashion, Hanging Garments, Electronics, High Tech, Furniture Industrial | Project Cargo: Heavy Lift and Break Bulk | Humanitarian

www.smeadvisor.com

P.O. Box 61450, Dubai, United Arab Emirates. Tel: +971 4 881 8288, Fax: +971 4 881 9157 e-mail: contact@aflogistics.com 87 www.aflogistics.com