SME Advisor Middle East - December 2014 by SME Advisor Middle East

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The Age of the SME

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

Alexandar Mathew Williams Alexandar Mathew Williams is presently the Director of Strategy and Policy at Dubai SME, a government agency of the Department of Economic Development (DED) tasked with the development of Entrepreneurship and Small & Medium Enterprises (SMEs) in Dubai. He has logged more than 20 years’ experience in public policy and strategic programme development focusing on micro-economic, business and SME development. Anas Halabi Anas is Managing Partner at Prediam Partners, an independent investment advisory firm, focused on real estate, hospitality and related ventures that he co-founded. Prediam has successfully assisted in setting up, structuring and financing numerous regional and international projects and startups, including an innovative application for Muslim travelers, an aggregator website for tourists in the UAE, an income producing hospitality portfolio in Dubai and a boutique hotel development in Beirut. Mona Tavassoli With over a decade of work experience, Mona Tavassoli is the Founder of Mom Souq (www.momsouq.com), an online community and bazaar for mothers residing in the UAE, through which mothers can network with each other, share advice and their experiences. As an extension, with the aim of continually providing support to working mothers in this region, Mona launched a new platform - Mompreneurs Middle East (www. mompreneurs.me).

Audrey Weir Audrey Weir is Global Head of Risk and Regulatory Strategy with AIG - currently the world’s 9th-largest insurer. Audrey brings to her role an in depth knowledge of risk and insurance earned over a 25 year career that spans the geographies of North America, Europe, and the Middle East. Audrey has held key risk and insurance management positions with global players such as PricewaterhouseCoopers, Fujitsu, Transport for London, and Aon. She commands an expansive career which crosses a wide array of sectors including Construction, Energy, Real Estate/Commercial Property, Financial Services/ Institutions, Retail, Information Technology, and Transport. In addition to her corporate experience, Audrey spent six years as a University Lecturer, Careers Tutor, and Director of Studies in Risk Management. Simon Hodges Simon has more than 30 years of experience working for international companies at Board level. He has spent over 10 years in the UAE and was previously Corporate Director of Administration of The Jumeirah Group, Senior Executive Officer of Dubai Holding Insurance Services LLC and Head of Governance for ADNEC. He also completed a two-year assignment as head of the health funding project for the Government of Dubai. Since 2011 he has been mentoring business owners from Dubai to enable them to create and then manage effective organisations that support business growth. Hazel Jackson Hazel has built an impressive reputation and successful multimillion dollar business

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

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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 Assistant Editor Rushika Bhatia rushika.bhatia@cpimediagroup.com +971 4 440 9115 Editorial Assistant Adelle Louise Geronimo adelle.geronimo@cpimediagroup.com +971 4 440 9160 ADVERTISING Publishing Director Rajashree Rammohan raj.ram@cpimediagroup.com +971 4 440 9131 Commercial Director - Business Division Chris Stevenson chris.stevenson@cpimediagroup.com +971 4 440 9138 Media Sales Executive Emma Hughes emma.hughes@ cpimediagroup.com +971 4 440 9120 Event Sponsorship Manager Gill Fairclough gill.fairclough@ cpimediagroup.com +971 4 440 9120 DESIGN Head of Design Glenn Roxas Senior Graphic Designer Froilan Cosgafa IV

FROM THE EDITOR The Age of the SME… Sourcing international speakers for the SME Beyond Borders conference - one of the largest business events ever held in the GCC - I became acutely aware that the current powerful focus on the SME space is a truly global phenomenon. SMEs are quite simply seen as the catalyst for growth across the leading markets of the world. If ever there was proof of this, it’s the fact that top-quartile economists are no longer thinking exclusively about the role of the multinationals, the fossil fuel giants and the automotive titans - they’re thinking about SMEs. The speaker list for SME Beyond Borders is a classic example: the event itself is led by the keynote address of HE Hani R. Al Hamli, Secretary General of Dubai Economic Council, one of the noted pioneers of SME reform in the region. Then take the likes of high-powered keynote speakers such as Roberto Mancone, from Deutsche Bank; or Peter Linzenbold, from Raiffeisen Bank (who has 900,000 SME customers!); or Erste Bank’s Darina Kollarova. These are all specialists in the SME space, publishing learned articles about the sector and advising key governments around the world on how to accelerate SME growth and GDP contribution. The attention with which we see the UAE focus on the SME space is shared by Singapore, California and South Korea - the world’s three leading crucibles of the SME revolution. This is quite simply because the SME sector is highly responsive to change. Individually, SMEs are quick and nimble, and speedy to adapt. Yet collectively, they are immensely strong and robust, representing the lion’s share of business in almost every developing and emerging economy. The SME phenomenon has now achieved such velocity that we can now truly talk in terms of The Age of the SME, just as previous generations spoke about The Industrial Age, The Knowledge Age, and so on. The challenge here in the region - as we diversify from fossil fuel parentage and SMEs account for an increasing share of GDP - is to ensure that the new connectivity of the West/East corridor (the new Super Region rich with opportunity), doesn’t imply a two-tier system. Hitherto, the businesses of the GCC were often competing on price alone and too put-upon to be concerned with the added-value of Best Practice and Corporate Governance. If regional SMEs can now compete on these terms as well, availing themselves of the data-rich opportunities of worldwide connectivity, we will truly see The Age of the SME here on our doorstep. Enjoy this issue of SME Advisor!

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Contents

Due to its compelling fundamentals and expanding capacity, the Middle East is a fertile ground for SMEs to begin a new revolution in setting up regionspecific standards and practices.

p26

India’s economy is driven by domestic demand, which means that it is better placed than most to deal with the world postquantitative easing. p44

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 Age of the SME’. 12 Data and decision making Our new info graphic section showcases key trends shaping the SME marketplace. Ground level 14 The Future of manufacturing – trends shaping the sector. Enjoy our sector spotlight that gives you key insights on the changing landscape… 18 Brand building – are you doing all it takes? Associate Editor Victoria Connolly reviews the brand agenda and how to go about those first pioneering steps…

sme advisor ISSUE 106

Business Innovation 34 Raising the bar. At a time when Connectivity is king, more and more businesses are looking to expand their digital capability. To get an expert view, SME Advisor spoke to Salvador Anglada, Chief Business Officer, Etisalat.

38 Partners in connectivity – What Etisalat’s GITEX presence means for your SME. Here, we look at some of the businessfocused strategies that the telecoms provider announced at the event. Movers & Shakers 40 Championing women’s empowerment: Mrs. Aisha Al Fardan. In an exclusive chat with SME Advisor, the exemplary role model shares her path to excellence and vision for the future. Country Focus 44 Subcontinental Surge. Our economic expert reviews market trends, opportunities and challenges in the Asian giant – India.

22 22 Good customer service: you know it makes sense. Associate Editor Zenifer Khaleel looks at the opportunities (and the perils) of the service imperative. 26 Be a champion of change on the new superhighway. Is your SME maximising the benefits of the West-East corridor? Business Banking 30 Trade Finance and Cash Management – instruments designed to smooth your business’ path. Experts at National Bank of Abu Dhabi (NBAD) highlight the financial opportunities.

Entrepreneurship 46 Women in the workforce. Associate Editor Zenifer Khaleel assesses the progressive change and the evolving attitude towards women working outside home. The next level 52 SME Beyond Borders – Global models for success. The landmark occasion has finally arrived – will we see you there? Trade and Export ME 55 We present our new comprehensive section, Trade and Export ME – a practical, informative and incisive guide for the trading community in the region. Tech Trends 84 Apps and gadgets to spruce up your SME.

Understanding the trends, challenges and opportunities

SOURCES: Department of Economic Development (DED) Business Survey, Q2, 2014 | Dubai SME | Dubai’s manufacturing sector overview by Emirates NBD | Dubai Customs | KPMG’s Global Manufacturing Outlook: Fostering growth through innovation | KPMG’s Global Manufacturing Outlook: Performance in the crosshairs

Data and Decision making

Quick facts

of all SMEs operate within the manufacturing sector

13%

16%

value-add to the economy by manufacturing SMEs

of the SME workforce is employed within the manufacturing sector

Top three challenges in this sector

52%

report increase in rentals

59%

58%

indicate increase in cost of raw materials

face increase in cost of labour

Sentiments across the sector

Manufacturing is one of the fastestmoving sectors of all, and it's critical to be in touch with the latest market intelligence, technologies and initiatives. Is your business up to speed with industry changes and the economic trends that are transforming key markets and opportunities?

49%

12%

are confident of selling higher volumes

forecast a decline in volumes due to increased competition

Managing efficiency

29%

of manufacturing firms reported increase in capacity utilisation

38%

of manufacturing firms reported a rise in new purchase orders

Prevalence of innovation and Degree of Corporate Governance orientation is highest within the manufacturing sector

Manufacturing trade

1 TN

Total manufacturing trade in Dubai in 2013 (AED)

80%

accounted for Dubai’s non-oil trade

Dubai’s manufacturing trade breakdown

38%

Dubai Import

21%

Freezone Import

18%

Freezone Export/ Re-Export

12%

Dubai ReExport

11%

Dubai Export

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Data and Decision making

What manufacturers across the world are saying?

10 M

the number of jobs within manufacturing organisations can’t be filled due to an increasing skills gap

2/3

have started adapting more collaborative business models

80%

believe partnerships would form the future of innovation

The innovation paradigm

72%

believe the “next wave of transformational innovation” in manufacturing is either under way or will begin in 12 to 24 months

Roadblocks to innovation

46%

lack of R&D funding

42%

aligning innovation to company strategy

39%

lack of knowledge of potential new markets

34%

complexities in collaborating with suppliers and partners

34%

executing on innovation – on time and on budget

Role of customers

60%

predict greater or much greater collaboration with key suppliers and customers

63%

predict new/enhanced customer services would make a significant or very significant contribution to profits

Manufacturing SMEs in Dubai

80%

plan for capacity expansion investments

are looking at technology upgrades

Manufacturing SMEs across the world

74%

believe they could achieve a globally integrated supply chain within the next three to five years

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70%

will double their spend in R&D

85%

cite product or service cost improvements as the biggest investment priorities

GROUND LEVEL

The Future of Manufacturing trends shaping the sector

Manufacturing is one of the fastest-growing sectors in the region – contributing significantly to the overall development of the economy. The emergence of the West-East corridor, fiercely-competitive market environments and other economic factors have changed the landscape within this sector, over the years. Is your SME fully aligned with the new trends? Assistant Editor Rushika Bhatia comments…

Why is the manufacturing sector important? Manufacturing SMEs are the lifeblood of any country’s economy. They are the key drivers behind: - National development - Skilled employment - Creation of infrastructural facilities - Building machinery, equipment and tools Most importantly, however, they facilitate trade and export – a vital source of income, pumping the much-need finance and resources into the nation. So, it’s crucial for any country to foster the growth and development of this sector.

A corporation is a living organism; it has to continue to shed its skin. Methods have to change. Focus has to change. Values have to change. The sum total of those changes is transformation. – Andrew Grove

As a manufacturing SME, you need to ask yourself the following question – “Is my business up to speed with industry changes and the economic trends that are transforming key markets and opportunities?” Consider the following – • Can your business enjoy the same market edge as competitors in the USA, China and SE Asia? • Do you have time to innovate and command margins based on added-value, not simply on price competition alone? • Are you implementing lean

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GROUND LEVEL

manufacturing principles, endto-end procurement technologies and delivery systems that keep you ahead of the curve? Understanding – and being fully up to speed – with the following trends will give you the answers you need… The shift from West to East With countries such as China and India going from strength to strength, manufacturing capacities have seen a shift from nations in the west to the east. A lot of

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manufacturing companies based in the west are now outsourcing their activities to companies in the east. A major factor driving this change is price – Asian nations are able to compete on price, owing to low labour costs and mass manufacturing. This, however, has their western counterparts rethinking their strategy – increasing focus on innovation and customerdriven initiatives. In fact, research by KPMG shows that 72 per cent of manufacturers believe “the next wave of transformational innovation” in manufacturing is either under way

or will begin in 12 to 24 months. Western manufacturers have come to realise that innovation will help them create sustainable business models and gain a competitive edge in the market. Although the competition between the West and East has become quite fierce in the last few years, manufacturers operating within both sides of the world have their fair share of opportunities and challenges. Research from Deloitte’s 2013 Global Manufacturing Competitiveness Index sets the scene:

GROUND LEVEL

Increasingly, manufacturing SMEs are adopting lean manufacturing practices, allowing them to be more efficient and reduce costs.

Established manufacturing nations

Emerging manufacturing nations

Talent-driven innovation

85% believe the availability of skilled talent in US, Germany and Japan makes these nations highly competitive.

Only 58% believe the same is true for China and 40% for India.

Labour costs

Fewer than four in 10 believe US, Germany and Japan are competitive when it comes to labour costs.

Nine in 10 believe China and India are extremely competitive in this aspect.

Supplier networks

Eight in 10 say US, Germany and Japan are competitive.

Five in 10 say the same about India and Brazil.

Healthcare systems

Seven in 10 think that US, Germany and Japan are extremely competitive.

Only three in 10 think India, China and Brazil are competitive.

“The emerging superpowers in manufacturing will focus on building the advanced manufacturing capabilities and economic and political infrastructures that drive rapid growth and high value jobs for their citizens, forcing 20th century manufacturing powerhouses to fend off the growing strength of more focused global competitors,” remarked Craig Giffi, Vice Chairman, Deloitte United States (Deloitte LLP) and consumer and industrial products industry leader, who co-authored this report and led the research-team. Lean manufacturing – getting on the bandwagon Originating from the Toyota Production System (TPS), lean manufacturing enables companies to increase efficiency by improvements in productivity, quality and leadtime. Increasingly, manufacturing SMEs are adopting lean manufacturing practices, allowing them to be more efficient and reduce costs. Lean manufacturing is simply defined as the “elimination of waste from manufacturing processes”. Taichi Ohno, former Toyota Chief Engineer, shares seven primary

types of wastages that companies need to look out for: • Overproduction • Transportation • Unnecessary inventory • Inappropriate processing • Waiting • Excess motion • Defects Such wastage can be effectively eliminated using the following lean manufacturing principles, as suggested in an online article on www.lean.org: 1. Specify value from the standpoint of the end customer by product family.

Identify Value

Map the Value Stream

Seek Perfection

Establish Pull

Create Flow

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GROUND LEVEL

Apart from being a powerful marketing tool, social media is also great for gathering market intelligence.

2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value. 3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer. 4. As flow is introduced, let customers pull value from the next upstream activity. 5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste. As a manufacturing SME, integrating these principles within your business

quite early on can help create a culture of efficiency, value and costeffectiveness. Technology transformation This is perhaps the most important emerging trend of all – new, sophisticated technologies are changing the way manufacturers do business. They no longer need to rely on manual organisational and inventory handling systems to manage and monitor activities. Following are four major technological developments that have taken place in the last decade and here’s how your manufacturing business can make the most of them: a) Cloud computing: A lot has been said about the cloud and its benefits, but over the last couple of years, it has evolved to play a major role in the growth and expansion of businesses. For instance, manufacturing companies that are looking to set up new plants in emerging countries, due to their vast potential, can now fully streamline processes using a cloud-based system. This allows the companies to access data remotely, as and when required. It also means that the new plant is fully connected with the home base almost instantly – without having to go through software implementation from scratch. b) Mobility: With the rising popularity of mobile devices, literally anything and everything

News update – what’s happening across the world? Indian Prime Minister Narendra Modi recently unveiled a new ‘Make in India’ campaign – aimed to boost the country’s manufacturing sector and attract FDI into the Asiangiant. Currently, India’s manufacturing sector contributes only 15 per cent to the total GDP. This initiative will be particularly beneficial in generating employment opportunities within India and improving the growth and development of the economy. On a global scale, it will be interesting to see how this campaign impacts China. For the last decade, China has been the ‘manufacturing powerhouse’ of the world – will India be able to catch up? We will have to wait and watch!

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is just a few clicks away. In the context of a manufacturing company, this makes managing workflows incredibly simple and efficient. For example, managers can monitor at what stage exactly a product has reached in its production cycle, identify delay times, get notifications on expiry dates of products, and so on, by a simple software on their handheld devices. This allows managers and other C-suite executives to be truly on-the-go, without the need to be constantly confined to their desks. c) Big Data: Managing and storing large chunks of data is a challenge for a business operating within any sector. Big Data will help companies in converting data in meaningful information that can be further used to make strategic decisions. d) Social media: If you think that as a manufacturing company, social media really has nothing to offer you, you are absolutely wrong. Apart from being a powerful marketing tool, social media is also great for gathering market intelligence. With a number of B2B social media platforms such as LinkedIn, you can now connect with partners, suppliers and competitors, and stay updated with the latest trends in the sector. Finally, consider this remarkable statistic: 429 of the original Fortune 500 companies are no longer in business today, which sets your imperative straight, shape up to these trends or ship out!

For an online version, please visit: http://www.smeadvisor.com/2014/11/ the-future-of-manufacturing/

GROUND LEVEL

Brand building the key to enhancing SME PERFORMANCE and profitability

You might think that with the huge challenges of securing cashflow, adequate finance and market position, the development of a unique brand for your business isnâ&#x20AC;&#x2122;t a key concern. Yet you would be wrong: brand building is a fundamental route to market edge and competitive leadership. Here, Associate Editor Victoria Connolly reviews the brand agenda and how to go about those first pioneering stepsâ&#x20AC;Ś 18

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GROUND LEVEL

“A brand is the intangible sum of a product’s attributes: its name, packaging, and price, its history, its reputation, and the way it’s advertised.” – David Ogilvy

A brand is a complex structure containing many elements; it can essentially be described as a recognisable product, service, person or place, which the buyer or user perceives as relevant, unique, or sustainable. Consumers judge a brand by its added value. Value that is created by providing a good or service that matches consumer needs closely and provides them with the most satisfaction. For SMEs building a strong brand has become increasingly important as markets have globalised and competition increases. Building strong brands not only increases an SME’s visibility and credibility with consumers, but also distinguishes them from larger competitors and as a result allows small and medium sized firms to successfully win market share away from larger more powerful organisations. Brand building issues Evidence suggests that many managers do not understand what brand management is. Owners and directors should take the lead in building their brand and yet they are often unfamiliar with the concepts and activities involved. This is due to a lack of comprehension and exposure to the real meaning of branding with many small businesses failing to recognise that they already exist as a brand. Entrepreneurs often do not see branding as an important aspect

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GROUND LEVEL

As an entrepreneur, it is important to make strong connections with the market and consumers to encourage brand loyalty.

of their business and therefore fail to incorporate it into their strategic planning with owners viewing brand management as being restricted to advertising and the creation of a brand name and company logo. Another common issue facing SMEs is lack of time, resources, structures and processes available to carry out branding activities. These limitations can hinder small businesses and force owners and managers to focus on short-term survival strategies. This shortterm approach focusing on daily chores can become an obstacle for a company and can make it difficult for an entrepreneur to remain focused on the long-term success and direction of their business. The role of the entrepreneur As an entrepreneur, it is important to make strong connections with the market and consumers to encourage brand loyalty. The activities of the business owner have a significant impact on the behaviour of staff. If staff feel valued and respected by their employers, they are likely to develop a sense of responsibility to

the firm, which will in turn create a positive relationship between employees and consumers. Creating a supportive company structure Having a company structure that not only recognises but also supports the importance of brand management in its day-to-day operations can have a significant impact on SMEs standing in the business community. A company structure that focuses attention on the reputation of a business in its chosen market requires staff to increase brand awareness as part of their daily duties and responsibilities. It is through the influence of the entrepreneur and the structures put in place to support branding that employees begin to value a companyâ&#x20AC;&#x2122;s image and communicate this pride to consumers. The influence of the market In order to successfully enter and grow within a market an SME needs to be aware of the conditions in which it operates. Customer service and satisfaction are vitally important and in order to ensure both are achieved, SMEs must have detailed knowledge of the strengths and weaknesses of competitor firms. This data can then be used to inform a company-wide strategy that ensures that a business communicates its unique selling point (USP) to their chosen market successfully. Brand management is beneficial for both consumers and businesses A successful brand can help a company to distinguish themselves from competitors, be held in high esteem, and establish a relationship with target markets. Regardless of the size of the business, evidence supports the idea that a well established and recognisable brand name is often worth more than the total value of the company itself

and that building a strong brand can improve customer loyalty and therefore generate higher revenues in the long term. By addressing the initial problem of the lack of exposure to branding by entrepreneurs, SMEs should begin to differentiate their brand within their chosen market. Owners and managers are often forced to focus on short-term business strategy, and this translates into difficulty finding time and resources to engage in branding activity. However, the short-term focus on daily tasks can become an obstacle for companies when seeking to gain competitive advantage in their chosen markets. Owners and managers are the driving forces behind the creation and management of a successful brand and should therefore be responsible for ensuring the recognition, understanding and promotion of a positive business image throughout all levels of a firm. The creation of a successful brand may not always be at the top of an entrepreneurs to-do list: however, by considering the development of the brand and the relationship between business and consumer, SME owners are not only ensuring that their company communicates successfully with existing customers but also that new customers are identified and attracted resulting in increased market share and revenue. In a global business environment where competitive advantage is not necessarily dictated by a companyâ&#x20AC;&#x2122;s size or access to resources, it would appear that successful brand management is one of the major keys to success.

For an online version, please visit: www.smeadvisor.com/2014/11/brandbuilding-are-you-doing-all-it-takes/

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GROUND LEVEL

Good customer service you know it makes sense

It’s a truism that a happy customer can easily become a repeat customer. But how best to win the hearts and minds of customers with that elusive ‘Factor X’? Associate Editor Zenifer Khaleel looks at the opportunities (and the perils) of the service imperative. Any company worth its salt knows that when it comes to customer acquisition, you are in the people business, no matter what you’re selling. From the latest model Ferrari to gourmet dog food, you are always selling to people. It takes a lot of hard work to get customers to know, like and trust your business enough to buy from you. Some professionals don’t worry enough about this aspect, thinking that their product/service will ‘speak for itself’. But most often customers often know nothing about you even if you have an exemplary product or service. In a country like the UAE, which encourages and promotes vast and varied businesses, customers are spoilt for choice in their decision

making. Friendly and efficient customer service plays a vital key in customer satisfaction and retention. A happy, satisfied customer is likely to return and tell others about the good experiences that they had when dealing with your company. Word of mouth recommendations from friends and colleagues are very valuable determinants to bring in fresh flocks of customers to your door. Customer-friendly country? According to the quarterly Zendesk Benchmark report for the second quarter of 2014, the UAE ranks 13th out of 32 major countries around world, in terms of customer satisfaction. The UAE’s above-

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GROUND LEVEL

average score of 85 per cent in customer satisfaction implies that it beats the global average by two percentage points (and is at the same level as the more established markets of the US and the UK) Mashrook Ali, Executive Director of International Business at the Westford School of Management emphasises that customer satisfaction should be one of the main targets of any business. “Especially in the service industry, companies should analyse the customer’s needs and expectations and be more empathetic towards their issues. Another main factor is that the person who delivers the service should be confident and empowered by his employer. Happy staff lead to

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better service, which in turn leads to happier customers.” Mashrook believes that connecting to the customer on a personal level, keeping your staff happy enough to be committed the job and empowerment to the front end with proper training and information are the key determinants which lead to loyal and satisfied customers. “If these factors are taken care of, growing businesses don’t need any in-depth research to find out what make customers happy. The number of referrals that the customer gives you is a good indication of a satisfied customer.” Effective customer service Most companies have detailed

policies on customer service but may not find efficient staff to deal with the customers in a congenial manner. The front end staff who deal with customers need to be taught the following points which if enforced properly, will have them competing to go the extra mile. • Reinforcement: Depending on the nature of your business, hold brief (5-10 minute) meetings periodically where you reinforce your company purpose and discuss ways to achieve it. • Positive Peer Pressure: Ask new staff to observe the mannerisms and methods of experienced ones, especially when dealing with tough customers. • Standards: Everything that is done on a regular basis in a company is worth developing standards for: answering the phone, replying by email, running a credit card charge, opening a service ticket etc should be done through proper procedure. But you need to design these standards in a way that explains the reason for the standard and makes clear when it may make sense to deviate from it. Otherwise you’ll have standards complied with in a robotic way by embittered employees. • Employee empowerment: Employees need to be empowered to do what’s right for their guests. Little misgivings or mistakes should be overlooked and they should be given incentives for performing well. The successful customer experience Developing effective customer service leadership that coaxes great behaviors and performance from your customer-facing employees - this is a key to creating a successful customer experience. Once you’ve gotten the ball rolling by hiring employees with the right potential, you also need a specific leadership mindset and methodology to bring out that potential fully.

GROUND LEVEL

It takes a lot of hard work to get customers to know, like and trust your business enough to buy from you.

Mashrook Ali, Executive Director of International Business, Westford School of Management

• Use an appropriate greeting. It makes your customer feel welcome. Start positively and continue communicating as naturally as possible. If necessary steer the conversation around the product or service you want to sell. You don’t want to come across as being pushy or too complacent. • Never complain to a customer about your organisation. Negative vibes from an employee may keep a potential customer away for life. • Listen to the customer. You are unlikely to be able to help all your customers effectively if you don’t listen to their needs. By not listening you can become very frustrating to the customer and may lose a sale or repeat visit. Listen to the customer’s needs, empathise and find the best solutions. • Learn Your Business. Whatever your product may be, have an in-depth knowledge of its features and specifications. Also read the product guide thoroughly to

understand what may have gone wrong. This will enable quick and expedited service which will in turn lead to higher customer satisfaction. If you are unsure of the problem, never lie or make up some answer. Don’t hesitate to ask the customer questions that will give you a better understanding of their needs. • Make reasonable promises. Do not offer them a service which you may not be able to provide. Stick to deadlines and if situations change, inform the customer promptly • Be memorable - Most people tend to remember single negative experiences over many positive ones. Try to make the customer’s experience positive in any way you can. If appropriate, try to induce an element of humour into the situation. It may cheer the disgruntled customer up. E-communications Complaints over the company website are (more often than not) a

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GROUND LEVEL

Word of mouth recommendations from friends and colleagues are very valuable determinants to bring in fresh flocks of customers to your door.

formality which many customers have no hope of being addressed. But it is a worthy tool to assess performance and rating of your company’s image. Most people tend to prefer the ease of the web rather than face to face complaints by visiting the store. So if an efficient system is in place to address web complaints, it will help solve problems easily as well as improve the image of the company. Customer service emails should be friendly, polite and brief. It presents customer service agents with an opportunity to provide some personalisation to a customer communication. Emails or replies should have compelling and persuasive power words like ‘we value your esteemed feedback’ or ‘we appreciate your trust in our product’. This provides a feeling of positive reinforcement and builds the esteem of the customer. The use of valediction in written communication – specifically, ‘yours sincerely,’ ‘best regards,’ and ‘cheers’ – are better options than other choices like ‘best wishes,’ as they develop a sense of intimacy. Word count is a clear indicator of satisfaction when a web form is the method of communication. Research indicates an inverse correlation between word count and customer satisfaction. The more words in the initial communication, the less satisfied the customer tends to be. Customer is King In a cut-throat industry where every action can prove detrimental to success, it would be worthwhile to put in extra effort to treat your customers like royalty. A study by InfoQuest found that a ‘totally satisfied customer’ contributes 2.6 times more revenue than a ‘somewhat satisfied customer’. Furthermore, a ‘totally satisfied customer’ contributes 14 times more revenue than a ‘somewhat dissatisfied customer. It is cheaper to retain old customers than acquire new ones. It costs up to seven times more in marketing

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and branding strategies to acquire new customers than it does to retain existing customers. Therefore, it is imperative that companies improve their customer service techniques to build and retain their client base in the long run. Some popular customer retention strategies are: • Use blogs to educate customers • Use email to send special promotions • Use customer satisfaction surveys to listen • Delight customers by offering personalised experiences Not only is customer satisfaction the leading indicator to measure customer loyalty, it also helps to identify unhappy customers, reduce churn and increase revenue. It is a key point of differentiation that helps you to attract new customers in competitive business environments. Many successful organisations have embraced relationship marketing with its focus on maximising customer lifetime value. Customers form expectations about the value of the service, anchored by their prior cumulative satisfaction. Hence it is important for companies to constantly strive to provide exemplary service to the people who make their cash registers tingle.

For an online version, please visit: www.smeadvisor.com/2014/11/goodcustomer-service-you-know-it-makes-sense/

GROUND LEVEL

BE A CHAMPION OF CHANGE ON THE NEW SUPERHIGHWAY

Is your business subject to the two-tier pricing system that the West-East trading corridor so frequently entails – or can it break away to set its own goalposts and command a position of excellence and consumer preference on its own terms? Associate Editor Zenifer Khaleel reviews the evidence… 26

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GROUND LEVEL

Due to its compelling fundamentals and expanding capacity, the Middle East is now a fertile ground for SMEs to begin a new revolution in setting up region specific standards and practices. Ankur Ranka, Acting Chief Internal Auditor, ADNOC

John Highland, Group Financial Director, The Links Group

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It is a widely accepted and recognised fact that SMEs are the backbone of any successful and sustainable economy and they are also considered to be the main drivers for the growth and economic diversification of any country. The western world realized this fact decades ago. And while they were strengthening their SME sector, GCC economies were primarily dependant and focused on their oil business. Due to its compelling fundamentals and expanding capacity, the Middle East is now a fertile ground for SMEs to begin a new revolution in setting up region specific standards and practices. However, it is still not matured enough to compete with western markets. In the OECD and Europe, SMEs create 60 to 70 per cent of new jobs. According to a study, the average SME contribution to GDP in the European Union (EU) is 55 per cent; while in the GCC the economic contribution ranges between 14 per cent to 30 per cent. At the turn of the global financial crisis, a study by Dun & Bradstreet revealed that banks in the UAE rejected 50-70 per cent of credit applications from SMEs due to the higher risk and 55 per cent of SMEs were unable to get the credit they required. However, in the EU, despite the economic crisis, over 70 per cent of companies got all or part of the bank loan they asked for, and only about 15 per cent were fully rejected. In terms of governmental policies on aspects such as accountability, transparency, sustainability, governance and so on, the western powers have already established and implemented regulation, laws and standards. Though the establishment of such laws and regulations were more attributable to the crisis, they helped to derive transparency and accountability for SME sectors. These laws have made significant impact and led to specific governance standards for SMEs which have been adopted by the world at large.

Pricing structures in the region At the risk of stating the obvious, every SME owner wants to grow his or her business and make money. A big factor of that equation ultimately comes down to your pricing model. One of the biggest challenges SMEs face in the region is the limited number of people and the vast array of choices they are exposed to. Most SMEs are caught in a survival mode where they are just trying to generate enough cash flow to remain in the business. In such a small domain of activity, opportunities are almost ‘blink and miss’. In the frenzied bustle for survival, most SMEs do not have the time or resources to research the market, plan long term goals or set their own targets. It is easier to adopt a wellestablished pricing structure and just keep your fingers crossed. Companies in UAE have begun to segment their offer structures more strategically to target the unique culture and heavily skewed income distribution in the country. The plethora of options available to the end user means that you have to constantly keep giving ‘best offers’, ‘discount deals’ and ‘mega promotions’ to be caught by the public eye. What this ultimately means in the balance sheet is anybody’s good guess. Analysing the two-tier pricing model John Highfield, Group Financial Director of The Links Group believes that the days of the two-tier global model within the GCC are limited. “With the global sourcing strategy of MNCs, it is not unusual for selected SME partners to enter the region and continue their role in delivering the resources required. This preferred relationship will have an impact on the local pricing structure and it can be implied that the US and European SMEs set the price,” he says. “The predominant SMEs will be non-Asian primarily because of their history, innovation and technical expertise and these attract

GROUND LEVEL

a price premium. However, as Asia increases its investment in human capital and innovation, the GCC is beginning to utilise a number of Asian companies within the infrastructure projects. This in turn will be the catalyst for Asian SMEs to enter the local market is likely to level the playing field considerably.” Western economies took the lead in empowering their SME segment which led to a two tier model where their SMEs get the opportunities to set the trend and direct the policies for others. “This disparity of two different economic powers is not expected to stay forever,” says Ankur Ranka, Acting Chief Internal Auditor of ADNOC. “In today’s era of information and the availability of extensive tools to communicate information, the GCC is taking rapid action to improve SMEs status. Most GCC countries have launched programmes to support their SMEs. Saudi Arabia’s Ministry of Labour is leading an ambitious programme with 38 initiatives for SMEs. Other initiatives include the King Abdul Aziz City for Science and Technology’s BADIR technology incubator programme and Saudi Credit and Savings Bank’s substantial loans to SMEs.” “In the UAE, the Abu Dhabi government established the AED 1 billion Khalifa Fund to provide financial and professional assistance to local entrepreneurs. Dubai SME (part of DED) offers resources and expertise to support top-performing SMEs and Enterprise Qatar is working to develop a positive ecosystem for start-ups and SMEs.” Meeting half way For an SME to set up in the area, consideration should be given to the following factors. Nature of demand for its product or service, whether it is demanded by an MNC as part of the global sourcing strategy or whether it is as a result of a local interest wishing to bring the brand into the region.

“It is also important to understand what is lacking. According to a survey conducted by Riyadh Chamber of Commerce and Industry on most important obstacles to SME development, top four obstacles were noted as: workforce related problems, marketing, financing and bureaucracy,” says Ankur. “The GCC has developed free zones, attracted international investment, set SME regulatory authorities and introduced certain regulation and standards. But it needs to standardise development policies for SMEs which will include easy access to financial resources, networking support and flexible economic policies. Also, a focus on promoting the jobs in SMEs will be required in the government policies, since the majority of young job seekers continue to prefer a government job to private sector employment. Introduction of additional policies promoting innovations and entrepreneurship opportunities in SME sector will be a definite advantage.” Financial flexibilities will remain a key requirement for SMEs to prosper in the competitive age and to experiment with new business models. The banking sector is expected play a key role in improving state of SMEs in GCC and sourcing finance for business will remain the main challenge. Globalisation has its own pros and cons. In a competitive world, it is not an easy job for SMEs to survive while competing with not only other SMEs but also corporate giants. This threat for small business further increases due to the associated impact of globalisation on investment, geographical and financial policies; in addition to other economic impacts. Being their own leader SMEs entering the market will have to compete on many different fronts that include product or service relevance, delivery capability and pricing model. If the competition has a comparable product and delivery model, be it US/ European or Asian, then the buyer’s choice is often price or relationship.

Relationships in the region, for a number of historical or geographical reasons, have benefited US and Europe’s businesses, thus defining the area of play. SMEs have to concentrate on building new relationships and establishing trust and loyalty in their operations. “One of the benefits of an SME is the ability to be close to the market and therefore respond to customer demand and competition more appropriately. The base for the SME is therefore relevant and there is no reason why a GCC SME should not be able to shape the price template. Ability is in abundance. However, desire is the operative word. This will increase once the GCC SME becomes confident in its approach and identifies the local flavours that can be enhanced over the inbound competition and possibly even exported,” says John. “The success of an SME is usually a reflection of the ability and desire of its founders and their vision in the role that the product or service has in the life of the potential customer. From our experience, there is nothing that specifically differentiates the GCC SMEs from their overseas peers.” “If the GCC can overcome the challenges currently faced by the SME sector, set adequate SME policies and leverage the key teachings from western economies, they can create a strong and successful SME sector in GCC. SMEs, on their part, need to support the government and community to promote a healthy competitive environment,” says Ankur.

For an online version, please visit: www.smeadvisor.com/2014/11/be-achampion-of-change/

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BUSINESS BANKING

TRADE FINANCE AND CASH MANAGEMENT is the world your oyster, or speaking a language you don’t understand? Are you aware that there is a specialist raft of financial instruments designed to smooth your business’ path while dealing overseas and boost the liquidity of your trading cycle? Senior Editor Paul Godfrey looks at some of the critical moments when Trade Finance and Cash Management can empower a business’ commercial ambitions and become an intrinsic part of day-to-day activities.

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BUSINESS BANKING

“No-one ever achieved greatness by downsizing. We don’t praise the likes of Apple and Samsung because they are nice little businesses. We admire them because they had the power to grow, trade internationally, and had the vision to change the world…” – Tom Peters, management guru

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First things first. According to Moody’s ratings agency, on average the cost of living rises by 54 per cent every year. This means that an SME has to double its profits every decade just to stay where it is. A look at the current Fortune 500 shows that among those business who were trading 10 years ago, 73 per cent did indeed manage to achieve this benchmark. Yet the statistics also show that globally, the SME sector contains approximately only 17 per cent of businesses capable of meeting that challenge. The sad truth is that while, therefore, growth is critical for an SME, very few businesses can deliver the performance needed to stay in touch with global economic trends. All of which means that the discovery and capture of new markets is absolutely vital - and expansion overseas is one of the best ways of building revenue and future potential. Yet it also brings key challenges such as • An elongated payment cycle that can stretch cashfow to the limit • The need for financial bridging

instruments that the company’s usual bank may not provide • An understanding of foreign cultures and expertise when it comes to engineering fresh and potentially untested payment terms Effective Trade Finance and Cash Management can help a business in two key ways. Firstly, by offering a consolidated range of banking services appropriate to overseas transactions and giving international connectivity. These are focused on providing better Cash Management. Secondly, with a range of specialist products that enable a business to work with its overseas business partners (for whom there may be a lamentable lack of credit data) in a commercially effective way. International banking services and cash management Gone are the days when an SME would be left ‘high and dry’ the moment it steps across national boundaries. Banks now have the ability to support SMEs by helping them open and sustain their accounts across borders. Where there is not a direct presence ‘on the ground’, this can be achieved via affinity partners with whom the client’s bank has preagreed arrangements for corporate and retail banking. The fact is that changing markets and needs require that banks are now more connected than ever, via international banking centres and cross-border customer management systems - both of which make it far easier to provide SMEs with a seamless international service. This new level of expertise is also reflected in the ‘smart’ solutions that larger SMEs are increasingly employing to smooth the way in terms of overseas transactions. SMEs are now managing their cross-border working capital requirements more efficiently through cross-border pooling and cash concentration solutions. Moreover, the greater sophistication of banking systems means that businesses can effect payments cross-border with same-day credits to almost any location in the world. Nor does this require

BUSINESS BANKING

According to Moody’s ratings agency, on average the cost of living rises by 54 per cent every year. This means that an SME has to double its profits every decade just to stay where it is.

‘in person’ dealing or credentials despatch to a special branch or business hub: payments can be initiated via desktops or mobile devices with live foreign currency quotations - and be transmitted almost immediately to the beneficiary in their local currency. Plus, with today’s ‘virtual’ accounts, SMEs can manage their collections/ receivables in multiple locations from multiple customers in a streamlined way. This, by definition, also facilitates more effective reconciliation and management of funds. The role of Trade Finance SME Advisor spoke to a leading practitioner at National Bank of Abu Dhabi, who commented: “In today’s banking environment, it’s important to really understand the customer’s needs, and that means fully understanding the whole cash cycle that the client business is working with. Often, even company owners don’t fully appreciate the processes they are having to conform to, and where the ‘hotspots’ are likely to be - and as a result, they’re not able to take the right and proper action to maximise cash yield throughout their whole trade cycle. Part of the bank’s job is to analyse that trade cycle and make sure that the bank’s staff are completely fluent with what the client is needing to do. “In terms of what we can actually achieve, the reality is that banks offer solutions to bridge the working capital gaps between the inflows and outflows, by financing the lead period, stock holding period, receivables period, routine business expenses etc. All of which can make a substantial difference to profitability - and in terms of cashflow for a medium-sized SME, this attention to detail can make the crucial difference between failure and success. “The challenges that an SME may face will often start with the basic fact that in order to get more market share, they need to give key customers more credit. But this can open up all kinds of unexpected difficulties. Other familiar scenarios include -

• The fact that a business can be seen as a potentially good customer, but you might not like the risk (e.g. perhaps the business is located in an unfamiliar setting, like Africa or Central Asia). • The bank that you normally work with can’t properly understand the trade cycle commercial risks you’re incurring and you have to source a new banking partner. • You need to have an established bank limit. You may be find it almost impossible to carry on doing further business without it. • Typically, you will have to source a bank that can support specific trade related cashflow mismatches, occurring due to the lack of credit offered by suppliers to SMEs wherein the end-buyers demand credit terms from SME entities. This could be as result of stiff competition, low barriers to entry, threat posed by substitutes etc.” Helping your bank help you Just as a bank that is expert in Trade Finance solutions can help you ensure smooth progress through the critical points in the cycle, the SME can also help itself by streamlining its information classification and presentation. This will give you better credibility in securing the practical Trade Finance arrangements you’re going to need. So make sure you can present audited financial statements (minimum last three financial years), your trade license, MOA/AOA, and trade related details (trading terms with suppliers/buyers and statistical trade information). In order to be professional in front of the bank, you need to have these things! Analysing the Trade Cycle A bank offering suitable trade finance arrangements can break the trade cycle down into specific elements and offer specialised help at each key point in the process. Here are some classic examples The Pre-Sale period: This begins when a purchase order for

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BUSINESS BANKING

SMEs are now managing their cross-border working capital requirements more efficiently through cross-border pooling and cash concentration solutions.

goods is raised, favouring the supplier until the time those goods are delivered at the buyer’s port/warehouse. In fact, this period can be further broken down into two phases; i.e. – • The actual lead period required for production and arranging for loading of the goods ordered onto a vessel/ship • The sailing (shipment) period itself when the goods are on the seas. Once goods are received by the buyer after clearing the same from the port, they are stocked/warehoused until the goods are sold to a buyer – and this stage is also termed as “Point of Sale”. So the trade cycle can be essentially broken down into two halves; i.e. “presale” and “post-sale”. The Banks offer various solutions in order to support financial working capital requirements at every stage of the trade cycle.

Your Finance options: The “pre-sale” period can be financed in various ways based on the terms of purchase with the respective suppliers. For example, in the case of a Letter of Credit requirement by the supplier, this could be offered to the supplier on behalf of the company for the value of goods invoiced. Then • Pre-shipment finance could be extended in cases where a partial or full “advance payment” is required to be made for goods invoiced by the supplier in the form of a “Trust Receipt” (commonly known as a TR). This is a shortterm working capital loan extended to finance the purchase of goods until the point of sale. • Where the pre-sale period essentially ends, a financial guarantee/standby LC could be offered to the supplier by the Bank for securing the value of the goods purchased - and indeed, this financial guarantee could be claimed against at a future date (but within the validity of the Financial Guarantee/Standby LC), given the non-performance of the buyer as per the agreed payment terms.

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However, financial guarantees are not very popular in the SME trade finance space. The Post-Sale period As discussed above, end-buyers seek credit from SMEs which results in a receivables gap. This period begins when the invoice is raised against the goods sold to end-buyers (point of sale) until the payment is received. SMEs extend credit using the following payment terms: • Open account credit terms (invoices and post-dated cheques) • Documentary collections • LCs received from end-buyers (Rare in GCC markets) Your Finance options: The receivables finance gap can be bridged by supporting specific payment terms offered by the SMEs. For example, in the case of open account terms on an invoice basis, the Bank discounts the invoices and advances proceeds to the SMEs - these invoices are then paid on the maturity date by the end-buyers directly to the Bank. The same is also applicable in case of sales terms on the basis of post-dated cheques and an LC basis. The proceeds advanced to SMEs against these sales can be utilised by the SMEs to settle their pre-sale/import obligations with their Banks/suppliers. This further enables them to make purchases, which in turn supports the increased conversion of cash cycles - hence propelling their business growth. In summary, it’s not difficult to see the potential complexity of the arrangements on offer and the variety of ways in which they can benefit a trading SME. It is paramount, however, to work with a bank that fully understands the financial instruments available and their protocols and applicability in your chosen overseas markets. Given this, Trade Finance and Cash Management are powerful tools for business growth and momentum. For an online version, please visit: www.smeadvisor.com/2014/11/tradefinance-and-cash-management/

BUSINESS INNOVATION

Raising the bar

At a time when Connectivity is king, more and more businesses are looking to expand their digital capability, getting data out into the field in front of customers and supercharging their online presence and capability. Yet itâ&#x20AC;&#x2122;s important to understand the style of implementation thatâ&#x20AC;&#x2122;s best for your needs and how - in practical terms - you can take the most advantageous leap forward. To get an expert view, SME Advisor spoke to Salvador Anglada, Chief Business Officer, Etisalat.

Salvador Anglada, Chief Business Officer, Etisalat

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BUSINESS INNOVATION

What do you see as the primary Connectivity issues now impacting SMEs? The first thing I should say is that the digital environment of the UAE is an ideal platform when it comes to getting your business up to speed - this is the No. 1 country in the world in terms of fiber broadband availability, with coverage for 85 per cent of the nation. It’s a reality, though, that many companies are still not aware of the benefits. For example, less than 60 per cent of the 300,000 businesses in the UAE are broadband connected, and we see it as part of our commitment to the sector to tell more customers about connectivity and its benefits. At the same time, we want to combine this initiative with a better offer to existing customers, similar to what we have done last month by upgrading the connectivity they presently enjoy for free.

If I’m the owner or director of an SME, can Etisalat work with me to ‘diagnose’ how to improve the effectiveness of my business? Exactly how we’ll work with you depends on the size of business your SME actually is - and this will also impact the kind of technology that’s appropriate to your needs. We’re also very much expanding our sales model in this sector, with dedicated offerings according to your scale. For example, if yours is a larger SME, we have a dedicated facility with 150 people focused on servicing your needs - and giving you a single point of contact for anything you might require. There is a call centre that exists exclusively for SMEs, and it’s based here in the UAE. Smaller SMEs can also receive

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one-to-one service from our channel partners, who will have a detailed understanding of your business and the kind of connectivity that’s most relevant and affordable. So the effort from our side is there, although I believe we need to be more proactive. This is a very important market for us, and we increasingly raise the bar in terms of the technology that’s available and the way in which it’s delivered.

Is the digitisation revolution able to offer me solutions for expanding my business overseas and how? Definitely. Expanding overseas is absolutely vital! We can do this journey with the customer, because we have such a strong presence in the GCC and MENA regions, both in terms of direct presence in 19 countries and through agreements with other, local, providers. We have an extensive global connectivity portfolio that enables secure interconnections and access to applications cross border. We also have the resources and expertise to manage such networks. This makes us the partner of choice for internationalising your business.

How would you define the main ways in which Etisalat can accelerate my business’ capability and leverage growth? Technology helps companies be more productive, as an example, Etisalat is offering a range of mobility solutions enabling the mobilisation of business applications and access to such applications while on the move. Business efficiency can also be enhanced by using cloud based services, such as the Infrastructureas-a-Service offered by Etisalat.

We are offering SMEs a onestop-shop for their telecom and IT needs including mobile solutions, roaming services, data services, high speed Internet access, devices and cloud based Software-as-a-Service to simplify their adoption of such services and allow them to focus on growing their business. In addition to that, our services are offered based on pay-as-you-go models to give the flexibility and scalability for SMEs as they grow. For large SMEs, Etisalat can manage their entire infrastructure and offer them bespoke solutions based on their needs.

Do you have customised solutions to cater for the individual needs of my SME? Do you have bespoke solutions for particular industry sectors?

Depending on the specific needs of companies in key verticals and the nature of their business, we have devised a range of solutions that cater for such needs. These solutions are designed to be practical, adaptable and affordable for SMEs and can help the business address its key priorities. As an example, we have introduced the mobile data pool packages, which allow the staff of a company to individually consume data in a controlled and cost efficient manner. We are also offering mobile device management solutions that enable field staff to access company applications and data securely and effectively. Etisalat offers solutions that are specially tailored to sectors such as retail and hospitality. For instance, our Mobile Point of Sale (mPOS) solution enables merchants to accept and process credit card payments securely through a point of sale terminal which is attached to a mobile device.

BUSINESS INNOVATION

One of the key factors here is that we are evolving from being a telecoms provider to being an ICT provider.

If letâ&#x20AC;&#x2122;s say, you have a pizza delivery business, you can accept card payments on delivery, without having to worry about cash management. This offers your business a great management and effective deployment of field sales force, in addition to offering your customers convenience and improved customer experience.

How do you help businesses boost their presence online and be more competitive? There are several elements that are key for any business to establish online presence, irrespective of its size. Connectivity is one such element. Etisalat offers a variety of connectivity solutions to match the needs and budget of all SMEs, starting from asymmetric low speed connectivity to symmetric high speed connectivity. We also offer end-to-end solutions for SMEs to create online presence, these solutions include all the elements a business would need to go online, such domain names, web hosting and co-location services, online payments capabilities and online security. We can also assist them in designing their website. For large SMEs, we offer several bespoke managed infrastructure-as-aservice solutions that assist customers in scaling their digital footprint, while optimising their investments in technology assets.

With a large range of channel providers working as your intermediaries, how do you ensure that the quality of service provision isnâ&#x20AC;&#x2122;t compromised? We put a lot of effort into ensuring the quality of our channel partners. The standard of service provision needs to be absolutely transparent. Itâ&#x20AC;&#x2122;s all about how you support, train and

motivate the staff in each business. So we not only run comprehensive training programmes, but create and deliver motivational rewards initiatives to honour the top performers. Every effort is taken to ensure that staff in each and every channel partner business can relate to and understand customer needs and deliver on comprehensive and consistent service standards.

What is Etisalat actively doing to promote migration to the Cloud? It is important to understand why and how SMEs would benefit from migration to the cloud. SMEs are normally looking for one-stop-shop solutions that offer simplicity, transparency in pricing, reliability, support, flexibility and scalability. Our cloud propositions are designed around those key attributes. We are providing best-in-class cloud-based fixed voice, Unified Communications, productivity and collaboration solutions. We are building

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BUSINESS INNOVATION

our cloud marketplace that offers the world’s best applications to SMEs through our local cloud platform. It is important to note that it is not absolutely compulsory that your business has to migrate to the Cloud straight away! It’s best to manage this in a phased manner, according to your needs and the nature of your business. The customer needs to decide ‘when and how’ – and we recommend moving to the Cloud step by step. There will be some business scenarios for which it’s hugely advantageous, and others where it may take a little more time to accrue the benefits.

What is the timeframe involved in switching my business over to full data replicability across every mobile device and screen in the business?

The digital environment of the UAE is an ideal platform when it comes to getting your business up to speed.

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Businesses can have a diverse set of requirements when it comes to roaming depending on the nature of their business. We have introduced a number of roaming packages that are designed to cater for SMEs requirements ranging from a few Megabytes per user to pools of Terabytes of data that can be shared between multiple users. For example, we have introduced the Business Traveller Packs at a starting cost of AED 60 per month for an email only package. Packages for email, social media and unrestricted access are also available. Additionally, Etisalat Blackberry roaming packages offer customers unlimited global roaming services at a flat rate. Etisalat pooled roaming packs provide an excellent means of allocating data according to the needs of the individual staff, while efficiently managing roaming costs.

For a start-up entrepreneur, what is the cheapest business set-up solution available from Etisalat?

If you are already an established company, mobilising your business data and applications can be done gradually. You can start with the mobilisation of your collaboration tools, such as mail, directory, Unified Communication tool, etc. You can then mobilise your online staff to allow them access to data, web and intranet content as well as place orders from any mobile device. You can then mobilise other support applications such as HR. This process could take a few months, depending on the number and nature of existing platforms, applications and amounts of accrued data. In the case of a new start-up, the process is relatively simpler, since SMEs can avail of the existing Etisalat ready-made packages by which they can mobilise their business simply and quickly.

To support SMEs in the UAE, we are introducing Etisalat ‘Businessin-a-Box’ propositions with the idea to provide all customer needs in one service. The customer gets broadband, voice, mobile and ICT services in one-stop-shop, one bill and one point of support. We recently launched Businessin-a-Box ‘Quick Start’, which is specifically created for start-ups, starting at AED 900. It covers all the needs to conveniently set up a business in one day. We will shortly be launching other Business-in-a-Box propositions to cater for SMEs of different sizes and needs.

Is there any solution for the high cost of roaming when my sales representatives are travelling overseas?

For an online version, please visit: www.smeadvisor.com/2014/11/raisingthe-bar/

BUSINESS INNOVATION

Partners in Connectivity what Etisalat’s GITEX presence means for your SME

HE Mahmoud Khalil Al Hashimi, GM, Ajman Free zone Authority and John Lincoln, SVP, Small and Medium Business, Etisalat signing the landmark MoU

The region’s largest-ever GITEX event presented a broad raft of new technology and digital possibilities for SMEs, and one of its key exhibitors was Etisalat, leading telecoms provider in the Middle East and Africa. Here, we look at some of the business-focused strategies that the premier name in connectivity announced at the event – including an important partnership with Ajman Free Zone, celebrated by signing a Memorandum of Understanding. The MoU looks set to catalyse a specturm of fresh opportunities for developing and aspirational SMEs… 38

Every year Dubai hosts the biggest technology event in the region, the GITEX Technology Week, where key players in the information and communication technology (ICT) industry gather to showcase the latest innovations. At the forefront of this is Etisalat the UAE’s leading telecommunications company. With the theme ‘Step into the future’, Etisalat’s pavilion highlighted the new smart technologies that will soon be offered to the market in the fields of healthcare, education, commerce, finance, transport, lifestyle and more. Etisalat continues to impact the SME environment by aligning itself with strategic partners the world over. One of the telecom giant’s most effective alliances however, resides at home in the Emirate of Ajman, where a recent Memorandum of Understanding (MoU) was signed with the Ajman Free Zone Authority (AFZA). The Memorandum of Understanding (MoU) was signed by Etisalat’s Senior Vice President of Small and Medium Businesses, John Lincoln, and HE Mahmoud Khalil Al Hashimi,

General Manager of Ajman Free Zone Authority. Formalised in Dubai at the GITEX Technology Week 2014, the MoU brought together representatives of Etisalat and AFZA with Etisalat’s lively stand acting as a backdrop to the occasion. On hand were a number of innovative offerings which the company is providing to the marketplace. The MoU will soon grant AFZA’s thousands of resident companies access to Etisalat’s growing communications offering. This is especially good news for the burgeoning SME sector. HE Al Hashimi said, “The partnership reinforces our commitment towards investing in advanced technologies and services for us to enhance our systems and improve efficiencies that allow us to provide quality services for our investors. It helps position Ajman Free Zone as one of the best, most well-managed free zone facilities for businesses to set up shop. We seek to create jobs and develop programmes aimed at attracting capital and investments. We are experiencing exponential growth and attracting a large number

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BUSINESS INNOVATION

of production companies as well as commercial service companies. Having implemented a dynamic development plan and an investment-friendly marketing policy, it is our strategy to join hands with leading partners that help us advance the Emirate’s small and medium business sector, contributing to its future economic growth.” Salvador Anglada, Chief Business Officer, Etisalat, commented that: “Small and medium businesses, especially start-ups, fuel the economic engine of a nation. Etisalat is the ideal partner of choice for this segment in the UAE and we are committed to making the telecom and ICT connectivity a seamless experience for our business customers. We are particularly excited about our deal with Ajman Free Zone. It gives us the opportunity to join hands with them to cater to investor and business needs of reachability, transparency and value for money. It lets us target this segment better and help it grow by making our technology work for these businesses.” Empowering the future The UAE has unfailingly positioned itself as a global business hub with a range of resources which will continue to lead it forward in the years to come. The country’s existing structure for telecommunication and industrial concerns are exemplified directly by the work of Etisalat and AFZA. The two joining forces is a direct result of the UAE pooling resources in order to realise the grand vision of the Emirates’ governance. By aligning interests Etisalat will be able to offer businesses which are headquartered in AFZA an order of connectivity which makes setting up a business in the country easier than ever. As part of the agreement, Etisalat will cater to business customers who are also investors in AFZA, by developing exclusive promotions and packages based on specific needs of the businesses. Etisalat kiosks will be set up at AFZA for addressing business requirements.

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John Lincoln, SVP of Small and Medium Business (SMB), Etisalat, commented “In the coming years it is expected that 100,000 new businesses are going to come into the country. We believe that these businesses will opt to establish their operations in free zones. Ajman Free Zone is a very important aspect of that equation. Etisalat wants to be where the customers are, hence we want to serve them from the free trade zone itself. Signing the agreement is not only aimed at future customers of the free zone but also to the existing ones. We aim to provide them with very specific and tailored propositions. “Among the steps following the signing of this MoU are establishing a presence at the Ajman Free Trade Zone and providing tailored propositions to the companies in the free zone. Establishing a presence in the free zone will give the existing and future customers doing business there the confidence in the services that we can provide. We can also effectively communicate the attractive offerings that we can provide to those businesses operating in that free zone.” The Ajman Free Zone was founded over 25 years ago and in this time has not only anchored the Emirate’s continued growth but likewise supported the UAE at large. Thousands of companies have called the sea-facing free zone home, amplifying AFZA’s importance to maritime concerns which arrive via the West and East. A large number of the Free Zone’s companies are SMEs, a market seen globally as a core source of volatile growth and accelerated development. Innovation and your SME behind the scenes at the Etisalat pavilion For the 34th edition of GITEX Tech Week, Etisalat’s pavilion was one of the mosttalked-about during the event. It was divided into several areas, in accordance with the different sectors that the leading telecoms provider will be venturing into in the coming years, such as healthcare, education, commerce, banking, transport, lifestyle and office.

Each stand was dedicated as a showcase for the new innovations that Etisalat has jointly developed with its partners. For example, Intel, together with Etisalat, is introducing new products for smart learning including special laptops and tablets for students which include integrated sensors. They are also equipped with multiple software that is very useful for activities such as scientific experiments at schools. Jeffrey Khairallah, Technical Marketing, Intel, said: “Etisalat has played a very important role in developing this smart solution. The software is being developed from our side and Etisalat is in charge of speaking with the educational institutions for the implementations of this technology in schools.” Another proof that Etisalat is now increasingly working with non-traditional sectors, is their collaboration with a wellness company - GOQii. GOQii will be presenting a new solution that combines personal coaching and technology. They have developed a product that will monitor their food in-take and the exercises that clients are doing, which will be monitored by a fitness coach at GOQii. Then, through the same device, they will guide the clients on what best to adjust in their lifestyle. Asked about Etisalat’s participation, Balwant Singh, Lifestyle Fitness Coach at GOQii said, “For now, Etisalat has helped us showcase this new product here at GITEX; they have assisted us significantly in having a stand to exhibit this new product in their pavilion. We are very pleased with the support that they have given us. Further discussions on a much deeper partnership is underway.” Perhaps your SME will be a keynote partner for Etisalat at GITEX 2015? For an online version, please visit: www.smeadvisor.com/2014/11/partnersin-connectivity/

MOVERS & SHAKERS

Championing women empowerment:

Mrs. Aisha Al Fardan Over the past few years, the discussion on women’s empowerment has shifted from what women can’t do to what women can do. A stellar example of this changing landscape is Mrs. Aisha Al Fardan, Vice Chairwoman of the Qatari Businesswomen Association – an exemplary role model for millions of women across the Middle East. In an exclusive chat with SME Advisor, she shares her success story, path to excellence and vision for the future…

“We need women at all levels, including the top, to change the dynamic, reshape the conversation, to make sure women’s voices are heard and heeded, not overlooked and ignored.” – Sheryl Sandberg

Tell us about the Qatari Businesswomen Association (QBWA). The Qatari Businesswomen Association was established in the year 2000, in order to enhance women’s contribution to the economy, which constitutes a real gain both to Qatari women and the society at large. By operating in partnership with QBWA, we aim to extend our platform to include various sectors, as well as build cooperative relationships with other Qatari organisations. The objective behind this is to gain support for our vision and help us achieve our goals. Chaired by Her Excellency Sheikha Al Anood Bint Khalifa Bin Hamad Al-Thani, the association is managed by a number of prominent businesswomen, who have all had a history of success in several

businesses belonging to different sectors. Since its creation, the QBWA has played a vital role in enhancing the contribution of women in pushing the economic wheel towards the strategic growth that we are witnessing today. Thus, in line with the wise vision that the government has set, the Qatari Businesswomen Association has adopted new strategies and plans that aim to further develop and promote its local, regional and international role. This includes organising a number of activities, conferences and programmes that support the further development of Qatari women.

What kind of initiatives is QBWA leading to empower women in Qatar? QBWA has launched a number of important initiatives such as the Qatar Businesswomen Award, the Corporate

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MOVERS & SHAKERS

As the first woman to enter the business community in Qatar, I suddenly found myself responsible for helping other women.

Ambassadors’ Programme and the Qatar International Businesswomen Forum. We have also launched training programmes, workshops and networking events, including ‘members-only’ activities that undertake several visits and B2B activities.

Does QBWA welcome expat women members? Yes, we do welcome expatriate women who are residents of Qatar. Whether they are business owners or career professionals, they are all welcome to be members of QBWA. At the moment, we already have a good number of expatriate women as members and the number continues to increase.

How would you describe your role within QBWA? What inspired you to associate yourself with QBWA? As the first woman to enter the business community in Qatar, I suddenly found myself responsible for helping other women. In addition, I am also paving the way for future generations to achieve their maximum potential and contribute to the country’s growth. Indeed, my involvement with QBWA has provided me with the opportunity to play this role. And through my efforts, I have significantly contributed to the empowerment of Qatari women, and have become a role model for the younger generation.

In fact, according to the United Nations Statistics Division, at 63 per cent, Qatar has the region’s second-highest percentage of women in higher education.

Are there any industry sectors that women entrepreneurs are more attracted to over others? Women by nature prefer certain sectors, and by nature also prefer safe investments. This is why you see a lot of them in sectors such as real estate, retail, fashion, beauty, education and catering sectors. However, I believe that women should venture into other fields, including the most male dominated ones such as construction, transportation, and so on. I would highly recommend women to look at other fields such as technology, healthcare, and the like., as we definitely need diversification.

Do you think women entrepreneurs today have to face additional challenges?

What percentage of Qatari nationals in the workplace are women?

In Qatar, women and men are equal in term of laws. However, women do face different challenges than men as women are responsible for their families and children. Sometimes, it is difficult to reach the right balance. In addition, they also face some challenges in running businesses. This is why QBWA is working to provide these women with the necessary programmes to enhance their skills and unlock their potential.

With the highest ratio of employed women in the Arab world, Qatar takes the lead in terms of employment of women as some 60 per cent of Qatari women, who are educated and employable, have joined the workforce.

There is a lot of discussion about women not being able to maintain a ‘work-life’ balance. What are your thoughts on this? Do you think this is attainable? www.smeadvisorme.com

MOVERS & SHAKERS

My role model is my father, who taught us that a good business person is patient and doesnâ&#x20AC;&#x2122;t rush into any decision.

I think ultimately, women cannot really have it all. Speaking out of experience, women need to learn to prioritise and manage their time efficiently. Women by nature are adept at multitasking. So yes, I think it can be attainable â&#x20AC;&#x201C; of course with the necessary support from their family and husband.

What would you say are key areas where you would like to bring changes in to empower women in the next two to three years? For instance, more private schools for girls or increased healthcare privileges for women?

Women in Qatar have full access to healthcare and education. The number of female graduates are even more than male graduates. The real challenge lies in bridging the gap between educational attainments and participation in the workforce. This is what I would like to work on by providing women with vocational training and support that would enable them, whenever necessary, to be employed, I will also continue to work on providing women access to economic opportunities, as well as encourage them to start their own businesses.

You are seen as a role model to many aspiring women entrepreneurs in the region. Who is your personal role model? Who do you look up to? My role model is my father, who taught us that a good business person is patient and doesnâ&#x20AC;&#x2122;t rush into any decision. He taught me the need to take calculated risks. I also understood that in business a loss is both a lesson learned and a new beginning to pick up from.

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Do you foresee collaborating with other women-focused organisations in the region, such as Dubai Business Women Council, in the near future? We do have good working relations with all businesswomen associations in the region and internationally. In fact, QBWA is a founding member of the MENA Businesswomen Network which includes 10 members from 10 countries in the MENA region, and we are working to implement a number of regional initiatives.

How do you see the role of organisations such as EQ in promoting female entrepreneurship? There are a lot of great efforts being exerted by various entities in Qatar to promote entrepreneurship amongst Qatari men and women. However, I think we need to coordinate these efforts to avoid duplication and to utilise the experience of all these entities in providing more support.

What advice would you like to offer to women entrepreneurs and women in business? Always remember that not every good idea can be translated into a successful business venture. As a general rule, any business to be successful must go through phases in the proper order. So after evaluating the idea and doing the feasibility study, a solid business plan should be developed. What I always recommend is to get as much support and training as necessary.

For an online version, please visit: www.smeadvisor.com/2014/11/ championing-women-empowermentmrs-aisha-al-fardan/

COUNTRY FOCUS

SUBCONTINENTAL SURGE With an eye towards the nation’s key partnership with the Middle East, the following India country report shares economic prospects in the light of last year’s instability – defining what investors can gain moving forward. By Arvind Chari

Last year was undoubtedly a turbulent time for emerging markets due to political instability, inflation and the fledgling recovery in the West all causing significant headwinds. Unsurprisingly, this has led some commentators to be sceptical about the prospects for these markets, including India. But the Indian economy is showing signs that it will weather the challenges of the next few years. This may not be an easy task given the manner the Indian rupee plunged in response to the US Federal Reserve’s decision to taper asset purchasing. Nevertheless, India does have the political will to make the necessary reforms to deliver on its potential. While the Fed’s decision has caused some fallout in emerging markets, commentators expect that this will tail off over time. Meanwhile, India’s economy is driven by domestic demand, which means that it is better placed than most to deal with the world postquantitative easing. Without the so-called ‘taper tantrum’, investors in India might have focused more on the positives in 2013. But given the overall improvements in the economy and the political outlook, we feel the India narrative will be harder to ignore in Q4.

One of the most significant changes has been the appointment of Dr. Raghuram Rajan as governor of the Reserve Bank of India (RBI) last year. He is clearly part of a dying breed of central banker: that is, one who actually knows how the world works. He will make mistakes, but the most important thing is that he will be trying to move India in the right direction, as shown by his decision to continue with a hike in interest rates at the end of January. Bond and currency markets have reacted very well to this move, which shows the bank is now ahead of the curve in fighting inflation. In October, Rajan remarked that India’s debt market needed to attract stable investors over ‘bond tourists’, a reference to the short-term foreign flows that have been evident in India’s bond markets. His stance is an indication that policies could be shifted to attract more long-term, stable money into India’s government bond markets, away from a focus on the foreign-bank ‘proprietary’ investments that dominate flows currently. India’s current account deficit (CAD) was set to halve in the year ending March 2014. It was due to fall to 2.5 per cent from 4.8 per cent of GDP in 2013. The

fall in gold imports, alongside currency depreciation, was a major contributing factor to this reduction. India’s exports became more competitively priced over Q1 2014, which has led to higher exports in textiles, chemicals and leather goods, while the drop in the value of the rupee has also led to a fall in non-oil/gold imports. We expect the CAD to increase to around 3 per cent of GDP for this financial year as gold import restrictions are removed, a shift that should still be easily fundable. Additionally, the RBI’s FX reserves have increased by USD 34 billion through the bank and non-resident Indian deposit swaps, which was a much higher figure than anticipated. This gives the RBI the additional firepower

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COUNTRY FOCUS

TOP TIPS FOR DOING BUSINESS IN INDIA Hire a local manager or partner who has a very good understanding of local rules and regulations. Have a longer-term investment horizon because the Indian rupee will remain volatile for a while. Don’t view volatility as a risk; view the integrity of the government and management as a risk. Be patient and have realistic expectations – things take time to work out in India. Travel to India and feel the ‘micro’ India story rather than just read about the ‘macro’ India story.

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to intervene in the markets if it is necessary to counteract currency volatility. In fact, the rupee has been remarkably stable since October and has steadily outperformed its other ‘fragile’ emerging-market peers. There has also been an improvement in how other countries perceive India. Net foreign direct investment is stable, despite some negative sentiment driven by the outflows from the bond markets and banks. In addition, significant Japanese investment into India’s infrastructure is a further boost to the country and this relationship will be one to watch over the coming years. Overall, the world has a much better impression of India than

it did a few years ago, when the country was facing significant obstacles. In 2010, increasing inflation, expanding fiscal deficits and an escalating CAD – all coupled with slowing growth rates – put India in a very difficult position. But in 2012, the government realised that the current situation could not continue and, since then, there has been a much greater focus on reform. A mixture of poor growth and bad policies dramatically hampered India’s progress earlier this century, frustrating many investors. But the country is now beginning to drive a wedge between itself and the other, more troubled emerging-market economies. We feel that these differences will mean that India significantly outperforms those economies over the coming years. And while we might still be facing some turbulent times, for India, at least, the dark clouds are beginning to break. As with any emerging-market economy, the next few years will present challenges alongside opportunities, and investors will have to be comfortable with this state of affairs. But India is committed to making the reforms it needs to improve its future. The country has much better potential for growth than any developed country and it is also in a far better position than many of its emergingmarket peers. Now is the time to take advantage of all that India has to offer to investors.

For an online version, please visit: www.smeadvisor.com/2014/11/ subcontinental-surge/

ENTREPRENEURSHIP

Women in the workforce

Although we are told increasingly that this is the era of women’s empowerment, the majority of nations in the GCC have often lagged behind other regions in bringing women into the workplace. The UAE is a powerful exception, being a key champion of women’s empowerment - but of course, challenges still remain, as Associate Editor Zenifer Khaleel explains…

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ENTREPRENEURSHIP

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ENTREPRENEURSHIP

Women have an important role to play in today’s workforce and they are emerging as strong, dynamic and competitive counterparts in almost all fields.

Mini Ram Mohan, Managing Director, Foremost International FZE, Dubai Aroosi Iqbal, founder, Aroosi Iqbal Couture

The UAE is one of the fastest growing economies in the Middle East and is often described as an open society which accords more freedom to women, compared to other countries in the Gulf. This progressive change is explained in part by the increase in educational achievements and the society’s relative evolving attitude towards women working outside the home. Although working women contribute about USD3.4 billion to the UAE’s economy, their average number is nonetheless small, compared to the overall labour force. This is due to a number of factors, such as companies’ restrictions on the numbers of females employed; conservative cultural attitudes; restriction on women’s geographic mobility; limitations in career and occupational choices leading to take the option to marry and stay home to raise children. The Global Gender Gap 2014 compiled by the World Economic Forum gave the UAE a score of 0.64 – (where total equality is 1). The report found that the UAE ranked high in education and literacy levels for women, and their average wages. The report scored 142 countries based on factors including educational attainment, political empowerment, health and economic participation. “The role of women in the UAE workplace has grown considerably over the decade, with many overcoming the obstacles that the society has put up, and finding success in their chosen fields. This country has witnessed major changes in gender roles but equal opportunities for women are still a work in progress. However, UAE’s role in championing the case of the role of women in the society is to be applauded,” says Mini Ram Mohan, Managing Director at Foremost International FZE, Dubai. Empowering women Women have an important role to

play in today’s work force and they are emerging as strong, dynamic and competitive counterparts in almost all fields. Women are brilliant multi-taskers, and their emotional quotient makes them more sensible and proactive managers. According to a study conducted by Forbes magazine early this year • Women build better teams; • Are more liked and respected as managers; • Tend to combine intuitive and logical thinking more seamlessly; • Are more aware of the implications of the their own and others’ actions; • Think more accurately about the resources needed to accomplish a given outcome. Much has been said in recent times about women in careers driven roles and with good reason. We live in times where the value of diversity within any organisation is being recognised and embraced. Diversity is increasingly being seen as key to optimal performance of teams. A recent study published in the Harvard Business Review found that the single most important factor in making a team more successful was the presence of additional women. They ranked special qualities that women bring to the discussion table like listening, sharing criticism constructively, having an open mind, being democratic and showing collective intelligence. In the UAE, it’s compulsory for all public and private sector organisations to include a woman representative on their board of directors. The country has embraced diversity by including a high number of women in its aerospace and political industries. But experts claim there is still a wide disparity between the opportunities and incentives presented to men and women.

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ENTREPRENEURSHIP

According to the Ministry of Economy, about half of the smallto-medium enterprise sector in the UAE is handled by women. Further, 48 per cent of women businessowners are also the sole owners of their firms. Emirati women constitute of only 23.9 per cent in the labour force Economists have pointed to women as an untapped source of economic growth in the UAE, recommending they be encouraged to enter the workforce in greater numbers. Even though women in the UAE have begun to enter the workforce in a wide range of professions, men may not be used to their presence yet. In many local offices, for instance, men and women do not work side by side, but separately. Business women in charge of companies often use a male counterpart to take care of business for them. Although Emiratis in particular may feel somewhat uncomfortable around them when doing business, they may also be particularly respectful and protective of them. Foreign businesswomen often enjoy a special status in the UAE. While they are hardly on equal footing with businessmen from abroad, they tend to enjoy a different status from local women with their bolder outlook and confidence to lead from the front. “A woman, if given the due respect, a fair opportunity and an apt environment, is capable of fitting into diverse roles and reaching great heights.” says Aroosi Iqbal founder of Aroosi Iqbal Couture. “We’ve observed the following in this part of the world: firstly there is a strong awareness of education for women, providing them the opportunity to be a strong contender at any field they choose. Secondly there is a growing acceptance for women as decision-makers, entrepreneurs and leaders, hence providing them the independence and platform to establish and run their own enterprise. Thirdly, there is strict

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law enforcement here for the protection of women against abuse, both verbal and physical. Today’s women are open to learning, comfortable with technology, willing to travel, daring to try new ideas and meet challenges. They are all set to give the generally male dominated work organisations, a revival of image.” Government initiatives The UAE Businesswomen Council is a nationwide network of business, professional and academic women. It was set up in 2002 and is supported by the Federation of Chambers of Commerce and Industry. The Council has almost 12,000 members, growing at around two per cent annually between 2002 and 2006, and running investments worth more than AED 25 billion (USD 6.81 billion) in various fields, including trade, industry, finance, real estate, tourism, fairs and exhibitions, construction and services. In the Abu Dhabi Securities Market, 43 per cent of the investors are women, which reflect their ambition to be part of the UAE’s vibrant economic activity. At present 22.5 per cent of the National Council’s members are women, and about 66 per cent of government jobs have female incumbents, of which about 30 per cent are decision making posts. It is hoped these trends will enable employed Emirati women to progressively enjoy more flexible rules and regulations that can give them further freedom from discrimination and more equality in the workplace. The Emirates Foundation’s initiative Tawteen (nationalisation) can be one of the important tools that can help bring the changes needed to advance the role women in the workplace. ‘Tawteen’ is designed to empower young Emirati men and women

We live in times where the value of diversity within any organisation is being recognised and embraced. Diversity is increasingly being seen as key to optimal performance of teams.

ENTREPRENEURSHIP

According to leading consultants, more than 30 per cent of firms in the UAE’s SME sector are owned by women.

to make a valuable contribution to the economic growth of their country In a survey conducted by the foundation, the main motives for Emirati women to pursue a career were categorised into different groups like-economic need, desire to participate in society development, love of work, being independent and others. However, balancing the two roles - those of home-maker and at the workplace - continues to be a challenge that mostly women have to address. They also face unique concerns, especially at the workplace - in terms of career opportunities as well as on-job development, security, lack of confidence and so on. Many companies strive to increase women’s participation, retention, and representation across key economic and social spheres. A major challenge for the UAE’s future is to accelerate the reform process and ensure that the implementation effectively transforms the economy into one that benefits its citizens by providing abundant job opportunities in a stable, diversified growth environment. UAE has been a regional leader of innovative development plans and constantly employs its resources to offer opportunities to all its citizens and to continue as an economic leader in the region. Women in SMEs According to leading consultants, more than 30 per cent of firms in the UAE’s SME sector are owned by women and they are emerging stronger, shrewder and savvier from the global financial crisis. “They have shed the fear of being seen as too aggressive and ambitious and lead their businesses and teams to greater heights. Women entrepreneurs have ingrained in themselves the belief that anything is possible.

They are tapping into the courage, intellect and ambition in them and courting success like never before. This in turn, is contributing to the national economy.” says Mini. “Even though we have very few women managing the manufacturing area of any business, I feel the tide will turn soon. More technically qualified women will be encouraged to take extra effort to learn and manage every area of a business. No business organisation can be run without the knowledge of each and every aspect that contributes to running a company. The drive and passion that goes into running a business should not be limited to certain areas or sections. If a woman can run a home where nothing escapes her eye, she definitely can run a business in the same manner” Aroosi believes that women have certain inherent opportunities and advantages over men at the specific work places. “Their ability to organise and do more than one task at a time

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ENTREPRENEURSHIP

makes them efficient managers and effective entrepreneurs,’ she states. “For instance in the fashion and clothing business, our clients feel more comfortable communicating their wardrobe needs with a sales lady as opposed to a man. Moreover, having a female seamstress or tailor take their measurement puts women at ease especially those who observe hijab. With a rise in health and beauty awareness, there has sprung a greater demand for fitness studios (where ladies only classes are popular) as well as beauty salons, spas and the likes which are predominantly female owned.” “Some areas of development which can help women entrepreneurs would be setting up women-only departments or having separate queues to help expediate the documentation process needed to establish a business. More online facilities for various tasks such as procuring employees, renewals and approvals would also save a lot of time,” she comments. “A lot of dignity is given to the female gender in this country. Recently I happened to be at the immigration office where a man tried to supercede a woman and approach the officer in charge. But he was immediately told to back off and maintain a distance and be cautious next time.” “Though one can find many women in the lower and middle levels of management, I hope to see more dynamic women in the top levels, especially in sales management,” claims Mini. “I have observed there is no shortage of dynamism among women. I believe that the UAE offers a positive environment for women to enter into and grow their businesses. Getting past the self-imposed limits and pushing the boundaries will propel more women into realising their ambitions.” Women are repositioning themselves and proving they

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can embrace change and drive a business forward in an innovative manner. A quick review of the successful business start-ups by women in recent years across the UAE will give a clear indication that the dynamics are changing Meanwhile, although women are making inroads to leadership in the military, aerospace and defense there’s still much to be done to bring true equality of opportunity. But the gradual change of consciousness in many parts of our professional and personal spheres, will continue to bring in a wave of positive change. In the UAE various government initiatives and competent multinational companies have been providing invaluable support and continuous encouragement to women. This stems from a solid belief that women are capable not only of excelling but also surpassing expectations once they are given the right tools to unleash their potential in their fields of their choice.

For an online version, please visit: www.smeadvisor.com/2014/11/womenin-the-workforce/

THE NEXT LEVEL

All roads lead to… The stage is set for the region’s largest SME event. SME Beyond Borders makes business history in the UAE. It’s the first time that any event in the region has celebrated the global SME sector – the vibrant thread empowering commerce around the world. It’s the only occasion assessing the impact of international trends on the local SME scene – looking at whether companies in the GCC can be worldclass innovators or whether they are destined to be followers, entrenched in their own local traditions and habits. The event explores the theme of the ‘West-East Corridor’: the fact that all SME business is now interconnected around the world and that regional SMEs are in effect competing in challenging global markets. Can local firms ride the tide of change and deliver: • Global standards of governance and Best Practice • First-class technology solutions • High profitability that is qualitydriven not price-driven To answer these questions, we’ve put together a world-class speaker portfolio that includes international

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and regional leaders – the widelycelebrated Stars of the SME space. Each session provides a world-class SME spectacle: a dramatic forum for ground-breaking content, advice and discussion. Across this twoday agenda, SME Beyond Borders addresses the powerful topics that matter to SMEs and can otherwise be stumbling blocks to effective growth - helping businesses boost profits and turnover. For example, SMEs will learn how to • Apply for finance outside the region, working with the specialists who can help • Understand the key international market trends and capitalise on the economic forces shaping local markets • Win repeat business and build a committed, loyal customer base • Understand how to compete not just on price, but on quality and innovation The sessions provide vital building blocks for every shape and style of SME and include a focus on issues such as women’s empowerment in the region and how to work most effectively with banks and financial institutions. On Day Two, the Moody’s Banking Masterclass, for example, promises to give keynote guidance to aspirational SMEs looking

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What you can look forward to? Hosted by National Bank of Abu Dhabi, and supported by the Dubai Economic Council (DEC), SME Beyond Borders is set to be the biggest, best SME conference of 2014. The event keynote address will be delivered by DEC Secretary General, HE Hani R. Al Hamli - and speakers are coming from around the globe to share expert insights and previously unpublished research, joining local captains of industry and government representatives.

to get critical business finance, boosting their chances of first-time success. Behind the scenes The planning, execution and delivery of the event wouldn’t be possible without the support of our valued partners and sponsors. SME Advisor takes pride in presenting key stakeholders that helped ensure that SME Beyond Borders is quite simply the highest-profile business event in the GCC:

For an online version, please visit: www.smeadvisor.com/2014/11/all-roads-leadto-sme-beyond-borders/

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We introduce the profiles of some our leading VIP keynote speakers: Mohamad Mourad, Managing Director, Google MENA Mohamad leads Google’s business in the Middle East and North Africa (MENA) region, based in Dubai. His main responsibility is to drive Google’s investments and manage its business operations in the region. Since joining Google in 2011, Mohamad has worked very closely with government and businesses partners to help nurture the internet ecosystem and promote the full value of the web. He has led Google’s effort to drive the wide adoption of online advertising in MENA by demonstrating the value of measurable and accountable advertising to large companies and SMBs across industries.

Roberto Parafioriti, Head of Small Business Italy, UniCredit Roberto started his career in Accenture, where he followed strategic projects in several Italian banks. In 2004, he joined Capitalia, a major bank group in Italy, with the responsibility of some projects in the Planning and Control Area first, and in the Retail Marketing later. At the end of 2007, he started to work in UniCredit, in the Small Business Marketing Department and now is the Head of Small Business Italy.

Sultan Sobhi Batterjee, Owner and CEO, IHCC Sultan Sobhi Batterjee is the owner and CEO of IHCC and Founder and President of Lifestyle Developers Ltd. Today, his main focus lies in operating as a developer with a cause – to help build a sustainable future for his generation through the key businesses that he runs. As CEO of IHCC, Sultan plays a vital role in positioning the company as a world-renowned design and turnkey enterprise that specialises in healthcare, education and mixed-use development projects in the Middle East and North Africa.

Roberto Mancone, Managing Director – Global Head of Business Products, Deutsche Bank Roberto Mancone is the Global Head of Business Products for SMEs and mid-corporate for PFB Germany, PBC Int’l and Postbank. He is Vice Chairman of the Global Credit Product, Deposit and Payments Executive Committee of the Private and Business Clients Division of Deutsche Bank. He joined Deutsche Bank in March of 2007 as Country Head of Business Clients and Business Products Segment. In 2009, he became Head of Private & Business Banking in Italy (the Italian Branch Network). In 2011, he became European Head of Credit Products (Mortgage, Consumer Finance, Business Products), ex Germany.

Avishesha (Avi) Bhojani, Group CEO, BPG Group Avi’s 34-year career spans marketing services, media, education, private equity and government sectors. At the helm of the BPG Group (www.batespangulf.com) since 1991, Avi consolidates 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. Avi has also assisted in the conceptualisation and execution of a number of strategic Dubai initiatives (DSF) and has served the Government of Dubai while assisting with the development of Knowledge Economy hubs in Dubai (Internet, Media and Ideas).

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Contents

58 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 60 Expo 2020 - what does it hold for SMEs? We examine how the Expo 2020 has supercharged the Dubai economy and why this is only just the start… 62 When #InAbuDhabi, tell your story Associate Editor Zenifer Khaleel explains the way that the hashtag is becoming a core tool in one of the region’s biggest public sector promotions. Trade & growth 64 THE bottom line A spotlight on Dubai Silicon Oasis’ journey to success as the leading free

According to the Dubai Economic Department (DED) SMEs hope to generate a windfall of AED 90 billion from Expo 2020 p60

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zone dedicated to the development of technology in the UAE. VIP interview 68 Onwards and upwards! Trade and Export Middle East caught up with Rt. Hon. Arlene Foster, Minister for Enterprise, Trade and Investment, Northern Ireland, to discuss the key role that Northern Ireland plays in progressing the thriving UK-UAE relationship. Strategy 72 Innovation – The Apple Way Dr. Ashraf Mahate, underlines the success of the world’s leading innovator – Apple Inc. – and discusses how SMEs can learn from this worldclass entity. Event review 76 ARE YOU FOLLOWING THE ROADMAP? We bring you the coverage of the

most practical and provocative SME event of the year, which brought together key SME Champions – Roadmap for Growth. 80 Recipe for success A snapshot of the 2014 cycle of the Dubai World Hospitality Championship. 81 Empowering change: 10th World Islamic Economic Forum Exclusive insights on the role of the Islamic banking sector in improving stability across the Muslim world. 82 In the spotlight: Women in Leadership Economic Forum We bring you the highlights of this thought-provoking event that underlines the changing role of women in the global economy.

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

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Expo 2020

what does it hold for SMEs?

The hugely significant Expo 2020 win can be a major catalyst for the SME sector, especially via the role of public/private partnerships. Yet businesses have to be smart to see where the opportunities really lie and shrewd enough to put them to good use. We examine how Expo 2020 has supercharged the Dubai economy - and why this is only just the start…

John Martin St. Valery, Founding Partner, The Links Group

Mark Gillings, Vice President – Hotels and Leisure, SFC Group

Last November, Dubai made another glorious stride in the global economic field by winning the bid to host the Expo 2020. This victory meant that it was the first time that a World Expo would be hosted in the Middle East, North Africa and South Asia (MENASA). It is also touted to be the first Expo in which the majority of visitors stream in from international spots, making it the most inclusive international event in World Expo history. The underlying objective of Expo 2020 is the power of partnership and collaboration in pioneering new paths of development and innovation. This is reflected by the strategic public and private sector partnerships that will be built during the planning and delivery of the event. The innovative site design and the tangible solutions that Expo 2020 Dubai will deliver is based around themes of mobility, sustainability and opportunity. According to the Dubai Economic Department (DED) SMEs hope to generate a windfall of AED 90 billion windfall from Expo 2020. Dubai expects a 10 per cent growth in visitor numbers every year, mounting to 20 million by 2020. 95 per cent of the total enterprises in the state is comprised of SMEs and they contributes 42 per cent of the total workforce and 62 per cent of the GDP. Following the world economic crisis, the Expo 2020 is the perfect platform for SMEs to expand, be more creative and improve their business. They have a vital role to play in ensuring that the event is a resounding success. As SMEs and entrepreneurs across the UAE look to take advantage of this opportunity by starting, growing and diversifying their businesses; the challenge to stay ahead of the competition is more aggressive than ever. Partnership is the key to Dubai’s successful business environment. Enhancing the ties between the public and private sectors will support the business community at large and improve the emirate’s competitiveness. As a young country, the UAE is currently undergoing rapid expansion and the

government has made a number of very good public commitments to strengthen the country’s various sectors. A mutual partnership with the private sector will strengthen and speed up the fulfillment of these stellar commitments. The power of Public Private Partnerships (PPP) The UAE investment environment has improved significantly after the Expo 2020 win. An estimated USD 8.8 billion will be spent on developing the infrastructure and facilities necessary for this event. This creates enormous opportunities for SMEs, particularly those operating in the construction, transport, tourism and hospitality sectors. Consulting firms will also bring much needed expertise to the planning, building and management of Expo 2020. SMEs with these capabilities may do well by tending for such government contracts through a consortium bid. Beyond supporting the event build, SMEs also stand to benefit from boost in tourist arrivals such as increased retail sales or F&B trade. “Public-Private Partnerships (PPP) not only have the potential to develop SMEs, but if structured correctly they can also help stimulate economic

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economic growth. Opportunities give birth to SMEs. So by creating these opportunities through the PPP model, enterprises can contribute much more to the GDP of the country.”

growth in the UAE,” says John Martin St. Valery, Founding Partner, The Links Group. “The UAE government recognises the value of SMEs, which currently contribute 60 per cent to non-oil GDP and 86 per cent to private sector employment; and the importance of unlocking this potential. The recently passed regulation that 10 per cent of government contracts be awarded to SMEs reinforces this commitment. With the UAE being rated as the world’s second most small businessfriendly government we expect to see more initiatives to foster public private partnerships between SMEs.” “For the UAE to remain a globally competitive nation against other leading economies around the world, the government must continue to drive public/private sector liaison and help to promote and grow business activities within the country,” says Mark Gillings, Vice President – Hotels and Leisure of the SFC Group. “SMEs are the engine of growth in this prosperous and thriving economy and will play a very important role in creating future economic growth for the UAE. So creating an apt ecosystem for SMEs to develop is very important. Also having PPP in the SME sector will give extra mileage for

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Cashing in on opportunity The majority of the new mega-projects initiated at the wake of Expo 2020 will be from large-scale developers such as Meraas, Emaar, Nakheel, Dubai Properties and Damac. Some of the major infrastructure projects expected over the next few years include the expansion of the Dubai Metro Red line; new concourses at the Maktoum International Airport; interchanges on the Sheikh Mohammed bin Zayed road; and the construction of the main Expo 2020 centre. Emaar is also developing an integrated urban centre and golf destination in a prime location at Dubai World Central which will be the home to Expo 2020. The sheer magnitude of these projects has unleashed a veritable goldmine for SMEs. Expo 2020 is expected to produce 300,000 direct new jobs and it is estimated that one million indirect opportunities will also be created. SMEs can capitalise on this opportunity by • Strengthening and building existing relationships with clients/customers • Developing competitive advantages • Emphasising on business development • Being price and brand competitive • Ensuring your company has the required strengths and resources. While small business owners are eagerly looking forward to the Expo 2020 they are aware that event will throw up challenges as well. Even with the positive surge of Expo 2020, availability of funding for the SME community remains a challenge. According to the latest industry figures, SMEs represent almost 95 per cent of the UAE’s total registered companies, yet receive only three per cent of the total loans given by banks. The UAE’s prominent banks currently charge high rates for SME loans, perceiving them as a risk. This is a

region-wide problem, with little respite expected without greater transparency and accessibility to financial information. Another challenge faced by SMEs is scaling their operations to reach up to more competent players in the market and keeping pace with them. Big developers don’t look at SMEs to deliver in terms of quality and reliability. SMEs will have to be clear on their goals to achieve, focus on quality, and update according to the demands. Along with every opportunity, comes fresh competitive challenges, new markets and the requirement for every SME to raise its game to everhigher standards. Achieving a mutually beneficial agreement through the PPP interface can solve these challenges - to an extent. PPP initiatives will help to showcase the best in the eyes of the world and which in turn will improve the economic atmosphere of the whole region. “SMEs in diverse industries and activities such as contracting, hospitality, travel, wholesale, retail, logistics & transport, F&B and related services will share the benefits of Expo 2020. It is a golden opportunity which allows SMEs to expand their consumer base from a local platform to an international one. PPP enabled SME initiatives here will get a chance to display themselves and mark their foothold in the global arena.” Says Gillings “As the expected audience for the Expo 2020 is around 25 million people, the Expo can bring in a significant impact on the Food and Beverage Industry. The major economic growth is also expected to roll in from this area. So more thrust at a PPP level can boost the economic growth of the country and the region.”

For an online version, please visit: www.tradeandexportme.com/2014/11/expo2020-what-does-it-hold-for-smes/

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When #InAbuDhabi, tell your story Is your business going to be part of the latest initiative to come from the capital? Associate Editor Zenifer Khaleel explains the way that the hashtag is becoming a core tool in one of the region’s biggest public sector promotions. hashtag means that real-time, authentic social content posted by visitors and residents will highlight Abu Dhabi’s attractions and experiences and inspire others to plan their vacations in this happening destination. The authorities are aiming for the new scheme to be implemented for emirate-wide public and private sector use. Abu Dhabi is a city which has been growing at a steadier pace than its ‘cooler’ cousin Dubai. Over the turn of the decade, it has shaped its infrastructure and resources to become one of the most important venues for business and global events; which has attracted more visitors and tourists as well. Industry experts claim that the tourism sector in Abu Dhabi is expected to achieve around 15 per cent growth during 2014 to attract an average of 3.2 million tourists. In order to cash in on the popularity of the social media, Abu Dhabi has implemented a new destination hashtag - #InAbuDhabi – which is an initiative to encourage visitors and residents to share their experiences of the emirate through social media channels. Launched this October by Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi), the unique

Why hashtag? Hash tags are becoming more mainstream on social media, but not everybody knows why they matter. The hashtagged word or phrase acts as the keyword in the content, which is searchable, and allows the phrase to become part of a larger conversation with a larger audience. Developing a hashtag strategy is an important part of social media success. Just as with other aspects of social media marketing, this must be done correctly to avoid damaging the reputation of the organisation or causing other problems. Hashtags also mean that an offline campaign can be tracked using the online measurement tools that make digital marketing so compelling. Now that many of the major social media channels (Facebook, Twitter,

YouTube, Instagram and Google +) support hashtags, using them in social media promotions is becoming more popular - and beneficial to brands looking for greater engagement. No option is better known than the famous “Branded Hashtag” which gives immediate recognition across millions of viewers for a particular entity. “This hashtag has ease of recognition, will help us better manage online content, nurture a larger audience discussion base, keep content lively and give the destination greater visibility in organic search engine results,” said Mouza Al Shamsi, Acting Executive Director Marketing & Communications, TCA Abu Dhabi. “The #inAbuDhabi campaign will be wide-reaching and rolled out across all communication channels of our visitabudhabi online resource. It will be used across social media for maximum reach and impact and will be a tool to tell the destination story locally, regionally and internationally.” Creating a capital buzz #inAbuDhabi is supposed to represent and resonate the emotion of an emirate which is rich and diverse in culture as

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well as all imaginable modern luxuries. #inAbuDhabi was selected for its instantaneous recognition qualities and its ease of implementation by a full range of destination stakeholders. The central theme of the initiative is an intensive three-month promotional campaign which will include PR, advertising and promotional engagement across a range of media. It also includes a ‘Tell Us Your Story #inAbuDhabi’ campaign, where visitors are urged to share their experiences of the exotic locations in the capital like Liwa desert, Ferrari World , Yas island etc in various social media platforms like Facebook, Twitter or Instagram. On Facebook’s #inAbuDhabi page, there are already dozens of events happening in the emirate being promote; from Mubadala’s World Tennis Championship from January 1 to 3 to UAE Offroaders Pink Drive charity and awareness campaigns for breast cancer. Celebrities like Volvo Ocean Race sailor Adil Khalid, American illusionist David Blain and India’s Bollywood singer Sunidhi Chauhan have played their part in promoting the #InAbuDhabi campaign. “We are looking for people to showcase the best attractions, hotels, restaurants, activities and events in Abu Dhabi and for

stakeholders to use #inAbuDhabi across their own communication platforms. Creating a buzz means #inAbuDhabi must be used by message creators and destination promoters but most importantly by visitors and residents as they experience the emirate,” explains Al Shamsi. Tell your tale The hashtag has a dedicated website – StoryInAbuDhabi.ae – that will feature user generated stories #InAbuDhabi to help spread word about the emirate. So far the campaign has garnered the attention of an eclectic mix of people including rugged adventurists in the Gharbia desert to the suave diners at the Emirates Palace. The campaign aims to position the emirate as a world-class tourist destination by promoting its exciting attractions, luxurious hotels, stunning architecture, unmissable events and unforgettable experiences. Many hotels, restaurants and tourist agencies have picked the hashtag to promote their deals and campaigns for easy visibility amongst customers. Hashtag adventures While #inAbudhabi is just finding its wings, it hopes to soar the ambitious skies of tourism and escalate Abu Dhabi’s popularity as the most happening place to be. Strategic promotional tactics, excellent

infrastructural facilities, global ease of travel and the myriad attractions make Abu Dhabi a one stop destination for all your holiday dreams. Add to this the undeniable commanding power of the social media, and #inAbu Dhabi and TCA Abu Dhabi are all set to please the 3.2 million average visitors who will set foot in the capital. Carpe Diem The euphoria surrounding the Expo 2020 has already provided a major boost for the economy and workforce confidence. According to the quarterly business survey conducted by the Department of Economic Development, the Dubai business community has been significantly more optimistic during the first quarter of 2014, compared to the same period of last year. SMEs in the region are rising up to the occasion and capitalising on this market confidence. The performance of the SMEs is expected to bring a level of increased competition into the local market. This will in turn drive the need for dynamic approaches, embracing new channels of customer acquisition and retention and keeping ahead of the technological innovation. SMEs that thrive in the Expo period will be able offer their peers healthy competition in terms of quality and competency. There are a few trade pundits who argue that Expo 2020 is a bubble waiting to burst and all the money, effort and innovation put into the event will be redundant after its culmination. What SMEs have to realise is that opportunities of this magnitude should not be ignored. It is time to put your best foot forward and seize the moment. The global attention and involvement that the Expo has generated for the country is an opportunity for SMEs to achieve their optimum cumulative potential by working together.

For an online version, please visit: www.tradeandexportme.com/2014/11/wheninabudhabi-tell-your-story/

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the Bottom Line Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis, a free zone dedicated to the development of technology-based SMEs. In the following interview he shares with SME Advisor how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer.

Bill Chappell, CFO, Dubai Silicon Oasis

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SILICON OASIS OFFERS A PRIME AND FERTILE ENVIRONMENT FOR SMEs.

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Dubai Silicon Oasis (DSO) occupies a vast 7.2 million square metre stretch of land in the northern reaches of the UAE’s most globally recognised emirate. Established in 2005 as a government-owned free zone devoted to the development of technology, DSO has in the time since welcomed over 1,087 companies into a space of which more than 59% of has been developed. Responsible for liaising with DSO’s companies both large and small whilst overseeing the free zone’s balance sheet, CFO Bill Chappell mans a unique station as a finance executive with a keen eye for technological growth. “I’ve been with Dubai Silicon Oasis for nine years and my role is rather split. I am the finance director but I’m also responsible for our initiatives on technology incubation and investment which is all very interesting,” Chappell said. Despite Chappell’s years of experience in the technology industry granting him an imperatively strategic purview as CFO, he makes clear what is most important as Chief Financial Officer. “Getting the numbers right must always be the number one thing. People talk about strategy and a number of other things, but you must focus on the numbers,” Chappell offered. “My background is in technology companies for over ten years previous to coming here, so I have a knowledge of technology which I brought to Dubai above all. My overlap personally involves understanding technology whilst being a CFO.” When Dubai Silicon Oasis first came into existence, the area was undeveloped with no roads, customers or residents. Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone. A business incubation centre, venture capital

funding structure and various forms of entrepreneurial support are among DSO’s many aspects available to tenants. Said Chappell: “There are three categories of companies at DSO. There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem. The other extreme involves global firms such as Fujitsu or SAP, and we look at their needs and make sure they’re satisfied as customers. They want our help to get setup. And then there is the middle group and I meet them if they need my help as CFO.” DSO counts SAP, Porsche, Fujitsu and Qordoba among its vast bank of companies, each of which are granted access to the Chappell’s well-honed expertise. “Bill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes. He also sits with the board on occasion,” said Loulou Khazen Baz, founder of Nabbesh, an online marketplace which connects professionals with work opportunities. “Dubai Silicon Oasis has been an important Investor at various stages of Nabbesh’s journey and a vital stamp of approval. Our company has found priceless value in DSO’s support and the approachable nature of an involved CFO like Bill.” Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate. Additional concerns related to innovation have found themselves increasingly entering the CFO’s remit as related to encouraging ideas specific to the region. Chappell is confident however that certain companies based in DSO are addressing these issues “In this region, one of my biggest challenges is getting people to

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Dubai Silicon Oasis headquarters

Within five years we’ll be further down the path and recognised for our contributions to the smart city and the Islamic economy.

understand the complexities of tech. Technology is a good investment class, but the region is focused very much on real estate whilst the investment class of technology doesn’t rank as high,” said Chappell. “In order to widen the general understanding, we want to be developing solutions which address problems specific to the region. We have one or two gems, for example Qordoba, a translation company which translates content in multiple languages. The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what it’s translating.” Another key variable for DSO is centred on supporting Dubai’s goals based around becoming the world’s capital for Islamic finance. Chappell describes his role as CFO as one with “two thousand hands”, a multilayered position which he seems to relish being held responsible for.

While DSO has grown tremendously in its near decade of existence, the free zone’s exuberant CFO sees lots more to come. Said Chappell: “I see us going from strength to strength. We’ve been in existence for nearly ten years. When I joined it was empty desert. Now we have over 1,000 companies and an estimated 43,000 living on site. Within five years we’ll also be further down the path and we’ll be recognised for our contributions to the smart city and the Islamic economy.”

For an online version, please visit: www.tradeandexportme.com/2014/11/ the-bottom-line/

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WILL YOU GO BEYOND BORDERS? IT’S NOW OR NEVER. Nov.30 - Dec.1, Dubai SME Beyond Borders makes business history in the UAE. It’s the first-ever occasion assessing the impact of international trends on the local SME scene - looking at whether companies in the GCC can be world-class innovators or whether they are destined to be followers, buying-in innovation at a price they can’t control. You’ll find out about the ‘East/West Corridor’: how all SME business is now interconnected around the world and that regional SMEs are in effect competing in challenging global markets. We’ve brought together top-name, global VIPs, regional champions and local captains of industry. To debate key themes like: • How to be competitive in a global market and ensure you’ve got the data and intelligence you need • Finance beyond borders – getting the solutions you need by thinking international • Customer loyalty and how you create it In the spectacular setting of the Madinat Arena, Dubai, this is an occasion like no other - focusing the eyes and ears of the region. Register as a delegate now - and discover life Beyond Borders.

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Onwards and upwards!

Spotlight on the growing mutual economic relationship between the UAE and Northern Ireland

Trade and Export Middle East caught up with Rt. Hon. Arlene Foster, Minister for Enterprise, Trade and Investment, Northern Ireland, to discuss the key role that she plays in progressing their thriving economic relationship with the UAE.

Arlene Foster, Minister for Enterprise, Trade and Investment, Northern Ireland

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The United Kingdom and the UAE enjoys a very strong bilateral economic rapport. Latest forecasts show that the UAE-UK trade balance is expected to exceed AED 73 billion by 2015, which means that country members of the UK will continue to harness the burgeoning business and investment potentials of this relationship. Northern Ireland is among these countries that contributes significantly in the growing mutual cooperation between these two big economic key players.

Can you please describe the bilateral trade relationship between the UAE and Northern Ireland? We’ve been present in Dubai since 1994, mainly focused on trade, but more recently, I’ve spent more time raising the profile for Northern Ireland as a region of the UK, with local families, particularly through the Dubai and Abu Dhabi Businesswomen’s Councils, who have visited Northern Ireland and have become great advocates for us. Our First and deputy First Minister visited in 2012 and since then we’ve had further engagement with Ministers about how we can share ideas about the growth of small businesses and innovation. It’s very much a work in progress but I am hoping they will visit Northern Ireland and see for themselves how much we have to offer in terms of investment, support for Research & Development and tourism.

Which areas of trade and investment do you wish to enhance through your relationship with the UAE? www.tradeandexportme.com

We are very focused on what we are good at and what sells well in UAE. Historically, we have a great agriculture sector and there are lots of Northern Ireland food products on the supermarket shelves and in restaurants here. But, for us it’s been about innovation in that sector and as the top region in the UK for the Great Taste Awards, we are developing products that we know will sell well. And, of course, the burgeoning dairy and poultry sectors in UAE and across the GCC provide great opportunities for our supply chain. After all, it was two Northern Ireland scientists that were the founders of Al Marai and our largest private sector employer in Northern Ireland is Moypark, part of the Brazilian Marfrig Group. We are very much part of the region’s drive for food security. Two other sectors, transportation and specialist construction and interiors and are also growing rapidly and we know these are key sectors for Dubai Expo 2020. Northern Ireland makes one in three London buses (the famous Boris Bus); one in three buses in Hong Kong and one in four buses in Singapore. But, we just don’t want to sell, we are equally interested in supporting economic development and diversification in UAE - and these buses can be assembled locally providing high value jobs in the region. Every Eddie Stobart trailer in the UK is made in Northern Ireland and the same trailers are now in UAE and Saudi Arabia. There’s every chance (one in three) that you will sit on an aircraft seat made in Northern Ireland if you fly with Etihad or Emirates. You will likely leave the flight on a staircase, or be served a meal that has been delivered on a truck made in Northern Ireland by Mallaghan Engineering. Some additional interesting facts which demonstrate the expertise on offer in Northern Ireland: • One in five of the world’s computer drives has a part created in Northern Ireland • One in four of the world’s full scale

marine energy prototypes have been developed, tested or manufactured in Northern Ireland • Belfast is the world’s top destination city for financial technology R&D investment Most people don’t know that the Dome of the Rock in Jerusalem was refurbished by Northern Ireland. Today the same companies, who work globally, and others like them are developing relationships in UAE to support the ambitious plans to entertain the 20 million tourists that are forecast to come here in the next ten years. We are good at building theme parks and fitting out ships, royal boxes in stadiums and the best hotels in the world. Five years ago, Ulster Carpets Mills set up in a Free Zone in Dubai and today they are one of the primary suppliers to projects across the whole region, from the Burj Al Arab, to the new Sofitel on Sheikh Zayed Road, to the Flame and new airport in Baku, in Azerbaijan, to name a few. Their success is based purely on quality, design and innovation. We know that Emiratis are interested in property and there is a lot going on in that area in Northern Ireland at the minute, with many opportunities for investors. We also know there’s an interest in investing in small innovative companies and we’ve a lot of those thanks to the ecosystem around our two universities and the focus on the commercialisation of technology. We are exploring and will continue to explore how we can attract new investments from the UAE. What I would really like to see is a direct air route between Northern Ireland and UAE, but, of course, these are commercial decisions and we do engage with the region’s three main carriers both locally and at the major Routes Conferences. We want to accelerate business and create the cargo traffic alongside the tourists and businesspeople that are either visiting UAE or transiting to further afield. It’s an integral part of my growth strategy for Northern Ireland generally and

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we are building more business in key hubs around the world to support our proposition and make it more attractive to the main airlines.

What kind of presence do UAE businesses have in Northern Ireland? While there are none at present, I hope to change that. I would like to think that the work we are doing along with my personal commitment and support for our team in Dubai, which is based both in the British Embassy and in Dubai Internet City, will attract UAE businesses and investors to Northern Ireland in the future.

What steps are you taking in terms of inviting UAE businesses to Northern Ireland and vice versa, what are the initiatives that you have in encouraging Northern Irish businesses to expand to the UAE? We have a strategy of encouraging buyers and potential investors to visit Northern Ireland. All of the major supermarkets have visited recently and they are often surprised by our hospitality and the quality of what they find. My Department’s support, through Invest Northern Ireland, assists companies to innovate, to grow and to trade and invest internationally. Tourism also plays a critical part in developing a proposition for business visitors. We have some fantastic places to visit and see and, of course, we like to tell the world about our golfing product. The world’s No. 1 golfer, Rory McIlroy hails from Hollywood, Co, Down, and we have two of the world’s top ten golf courses. Just in case you thought Rory was unique, Northern Ireland golfers, Rory, Graeme McDowell and Darren Clarke have

won six of the last 12 golf majors so we really are the ‘Home of Major Champions’. Tourism Ireland has an office in Dubai and we want to work more closely with them on developing VIP tourism packages. The new Titanic Belfast centre, and the success of “Game of Thrones”, which is largely filmed in Northern Ireland, are not only great attractions for tourists, but also for business people, when lifestyle is often part of the deciding factor on where to invest. Part of our strategy is to tell people in UAE more about how smart our workforce is. Every year, Northern Ireland schools attain the highest percentage of pass rates across the UK at GCSE (aged 16) and A-level (age 18). We are working on potential collaborations, which will give our universities the profile they need and what UAE investors are seeking - local world class education and training. Countless Northern Ireland companies have offices and warehousing in UAE, taking full advantage of Dubai as a regional business hub and we have a number exploring local manufacturing. My teams in Dubai and in Belfast practically work as Ambassadors for UAE as their job is to promote UAE to Northern Ireland companies and facilitate their growth by helping them to establish representation and, in some cases, investment. Our participation in the major shows is not just about UAE. We know they are gateways to the world, so our presence year on year has increased at Gulfood and Arab Health. This year, we have stands at specialist food shows and GITEX as well for the first time.

Please tell us something about your relationship with the Dubai Business Women’s Council (DBWC). My relationship with the DBWC began last year when I first met

with President Raja Al Gurg. I was inspired by how much empowerment there is for women in Dubai and wanted to explore some key areas on which we could work together. In May, DBWC formed part of a Women in Business trade mission to the UK which saw the group visit Belfast and join an international women in business conference, at which Nadine Halabi, Coordinator at the Council, gave the audience a real insight into life in Dubai. I was very pleased to be able to spend time with the ladies and to discuss with them ways in which we can work together. Since then, we have continued to develop our relationship and see more common ground between our two countries. As women, whether we are in Dubai or in Northern Ireland, we face similar challenges in the field of business. During my visit in September, the DBWC offered to host a luncheon for me and invited some of their key members along. It was a great occasion where my team and I were able to share some more about Northern Ireland and I was able to talk with some of the

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VIP interview

Very often bottlenecks are perceived and it’s my Department’s job to help businesses along the right path and to understand which approach is best suited to ensuring business runs smoothly. For every product we sell here, everyone benefits and that’s the way it should be, however, it can be difficult for very small businesses which have real market potential to manage the cost of doing business in UAE.

For GCC companies keen on investing in the Northern Ireland what advice would you give them and which sectors do you wish to highlight?

women about their work and the entrepreneurial spirit in Dubai. I’m really impressed by the work of the DBWC and the support they are giving to women in this city through events, advice and networking opportunities.

Do you have any specific project that you are working on with DBWC that focuses on developing the capabilities of women in the field of business? If so, can you please tell us something about it? There are a number of areas where I can see us working together to develop the capabilities of women in business. At the moment my team in Dubai is exploring these opportunities.

In your view what are the bottlenecks faced by current traders and exporters dealing with this region? www.tradeandexportme.com

It’s a bit like a horse race with one jump. The perception of Northern Ireland and its past sometimes doesn’t help, but when we get people to actually see Northern Ireland for themselves, then that’s the hurdle jumped and it’s usually a flat ride after that. Companies and individuals really should look at the commercial and residential property market and also perhaps invest in the funds that support innovative companies; companies which could use the GCC as their regional hub for development of the Middle East and African markets. UAE’s growth as an aviation hub is being quickly followed by the development of a local aerospace sector. We would like companies to explore collaborative opportunities in a sector where Northern Ireland has over 100 years experience. Our aerospace sector is at the leading edge in composite engineering, with all the major plane makers sourcing from us, not to mention a recent GBP 500 million investment by Bombardier Aerospace, European Union and the UK and Northern Ireland government in a wing factory for the new CSeries jet.

How do you see the bilateral economic relationship between GCC countries and Northern Ireland in the coming years especially with the UAE? Of course, Northern Ireland, as part of the United Kingdom, benefits from the excellent UK-UAE relationships across all areas. The British Embassies in UAE work closely with my team to support our drive to promote Northern Ireland and put it on the radar of the major trading families and Ministries. I would like to see stronger promotion of the UK regions – we are a little behind on that, but I’ve visited UAE a lot in the last few years and I am determined that UAE nationals and the Government get to know about the success and re-emergence of Northern Ireland. As I’ve said before, its very much work in progress, but whether its business, tourism, education or bilateral relationships we are forging ahead and its opportunities like this one with you today, which help us tell the real Northern Ireland story.

For an online version, please visit: www.tradeandexportme.com/2014/11/ onwards-and-upwards-minister-arlene-foster/

Strategy

Innovation The Apple Way Innovation is a subject that is being strongly discussed in various industries. Presenting something new to the market that consumers want and need can lead to a million dollar success. In the following article, Dr. Ashraf Mahate, Head of Exports Market Intelligence, Dubai Exports, underlines the success of the world’s leading innovator – Apple Inc., and discusses how SMEs can learn from this world-class entity.

“It’s not a faith in technology. It’s faith in people.” – Steve Jobs

On November 14, 2014 Bloomberg reported that the value of Apple Inc.’s shares was more than the combined market capitalisation of the Russian stock market. From the start of 2014 to mid-November the world’s most-valuable company increased its market capitalisation by USD 147 billion and by November it has reached USD 652 billion. Meanwhile, the combined value of Russian equities has fallen

by USD 234 billion to USD 531 billion during the same period. The recent release of Apple’s iPhone 6 and iPhone 6 Plus have considerably helped increase the market value of the company. The question that arises is how can a company like Apple which is only operating for less than 40 years become one of the most-valued in the world? The answer to this question lies in Apple’s ability to continuously extend the boundaries of innovation. So what can SMEs learn from Apple’s success story? At the core of every successful business is the ability to harness creativity and innovation in a profitable and sustainable manner. This is usually associated with ensuring that innovation delights

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Strategy

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the consumers and inspires the employees to generate greater value from their creativity. On the surface it seems a very easy process in that one simply needs to generate ideas which can translate to profitable outcomes. However, the reality is far from this as the process leading to the generation of ideas cannot simply be switched on or off on demand. Creativity and innovation do not occur neither at will nor in a vacuum. It needs the right environment which includes appropriate strategies, frameworks and incentives. Various studies have found that creative organisations are those that encourage an open and honest exchange of ideas between their staff and key stakeholders. As such organisations need to take risks at a certain extent so that the ideas generated are put into practice. Of course not all implemented ideas will be successful, nevertheless the ones that are will go on to help support an innovative workplace. The same studies have found that organisations that are rigid in nature and are not open to testing new ideas stifle and at some point kills creativity and innovation. What the management team needs to understand is that the creativity process is not something that can be instructed. Instead they should build an environment that supports the creativity process. The reason for this is that creativity may start in an individualâ&#x20AC;&#x2122;s head but at times it can only be developed and structured through interactions with other people in and out of the organisation. Creativity and innovation is mostly driven by two key factors, first is the demands in the market whereby it seeks to satisfy customer needs. Second, innovation is supply led whereby firms develop a particular product or service and then push it onto the market. Of course, technology plays a pivotal role in allowing certain innovations in the market but this alone is not sufficient for creativity to take place.

The importance of creativity and innovation in generating and ensuring a competitive advantage has meant that many companies have sought ways of increasing these two aspects within their organisations. Of course large organisations can spend large sums of money on hiring highly-capable people and installing specialised infrastructure to support their innovative process. However, this option is not always available in the SME sector. More often than not SMEs need to be resourceful in devising ways in which to be creative and spur the innovative process. The main technique that is commonly applied to increase creativity and innovation in the workplace is creating group-based assignments and tasks that allows individuals to analyse the demands and opportunities from a certain idea. It is generally accepted that group based tasks can lead to a high level of interaction which can be transformative for both the creative process and the execution of a product or service. Individuals participating in a group have different perspectives regarding issues that they will encounter, hence the interaction between them can lead to a discourse that promotes changes and the adoption of new ideas. Having different individuals in a group discussing a certain idea would mean that the insights that built the foundation of that particular innovation is from a diverse knowledge and skill-set. The need for diversity then implies that a problem requires the perception of not just a single individual but more likely a mix of varying knowledge and skills. Creativity and innovation are important elements for an organisation to maintain their national competitive advantage and it can also encourage them to enter foreign markets. In fact, at the basic level exporting oneâ&#x20AC;&#x2122;s product or

Strategy

service to other countries can also lead to innovation as the company will seek to satisfy different tastes in the market they wish to venture into. At the microeconomics level exporting allows the firm to recoup the investment incurred in arriving at the innovation as well as profiting from economies of scale. Therefore, in many respects innovation is closely tied to exporting. If this is the case the real question is â&#x20AC;&#x201C; why is there not enough emphasis on building creative and innovative organisations within the SME sector? This question can be answered by looking at the pre-requisites to a conducive environment for creativity and innovation. Some of the important aspects towards such environment are as follows: i) a clear mission statement that allows for taking calculated risks that values innovation and promotes individuals to challenge the status quo in a structured and constructive manner. ii) integration across the organisation so that employees understand how a particular situation or problem can impact the organisation as a whole. Also, the integration brings about a greater diversity of knowledge and skills which promotes creativity and innovation as highlighted earlier. iii) to make all staff responsible for innovation and provide them with the appropriate resources. iv) to create a physical environment that enhances creativity and innovation within the workplace such as meeting points, quite areas for thought and the like. v) communication tools that facilitate knowledge management and sharing throughout the organisation so that new ideas are widely dispersed to ensure their adoption and feedback. vi) a performance measurement system that evaluates the

creativity and innovation within the organisation so that the outcomes and impact become a learning tool within the firm. It is vital for firms to have a creative vision to produce great ideas however this needs to be translated into profits through product development and marketing. Therefore, the focus has to be on value innovation which is all about developing products and services that give customers what they want and need. So how can resource constrained SMEs get into value innovation? The answer is simple â&#x20AC;&#x201C; it can be done through a strong leadership that is willing to embrace risk and make the necessary organisational changes to facilitate the innovation. Strong innovation leadership will ensure that the firm has a clear and focused strategy and that it knows exactly which areas it targets to reach to be able to generate higher profits. Apple Inc. certainly makes it look easy to innovate and deliver amazing products that put the competition to shame. But bear in mind that since its establishment Apple Inc. has built a management system that is focused to create distinctive products. Apple Inc.â&#x20AC;&#x2122;s history show that its success was a product of a strong innovation led leadership.

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.

For an online version, please visit: www.tradeandexportme.com/2014/11/ innovation-the-apple-way/

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Event review

Are you following the roadmap? ROADMAP FOR GROWTH HAS RAPIDLY BUILT A REPUTATION AS PERHAPS THE MOST PRACTICAL AND PROVOCATIVE SME EVENT OF THE YEAR, BRINGING TOGETHER KEY SME CHAMPIONS IN THE SAFINAH BALLROOM, JUMEIRAH BEACH HOTEL, DUBAI - AND IDENTIFYING THE PIVOTAL MOMENTS IN AN SME’S AMBITION AND EVOLUTION.

How do we trace and identify the evolution path of an SME from startup, to micro, emerging business, developed business and then an IPOready (and perhaps international) enterprise? Plus, once we track the landmark moments, how can we effectively say what is the best route that an SME should take in order to grow, prosper and fulfil its founder’s entrepreneurial goals? This was the purpose of Roadmap for Growth, held on September 29 and bringing together more than 300 SME owners and directors to witness a series of keynote presentations from leading authorities on the SME agenda. The event featured two refreshingly new conference formats, rarely seen in discussions around the SME space. Firstly, a new ‘head to head’ concept, in which the event’s two leading keynote speakers - HE Abdulla Al Otaiba, Senior Managing Director & Group Head of Retail and Commercial Gulf, National Bank of Abu Dhabi (NBAD), and Salvador Anglada, Chief Business Officer, Etisalat, agreed to searching one-on-one sessions with the session’s Moderator, Paul Godfrey, Group Director of Editorial, CPI Media Group. Secondly, a highly successful ‘adversarial panel’ concept in which two panels comprising five industry experts debated whether it is best to be an SME led by Equity or Debt financing.

The most practical and provocative SME event of the year

In alliance to empower your business Another key feature of the occasion was that SME Advisor’s two leading sponsors, National Bank of Abu Dhabi and Etisalat, entered into a joint partnership to host the event, with the phrase ‘in alliance to empower

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Event review

More than 300 SME owners and directors witness a series of keynote presentations

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your business’. This enabled a fresh, dramatic scale of event with an especially strong agenda and quality of speaker, with both NBAD and Etisalat fielding world-class, senior VIPs. The structure of the event was designed to follow the contours and ‘twists and turns’ of the life cycle of an SME - the journey being led by the two challenging areas of finances and digital connectivity. So, for example, HE Abdulla Al Otaiba looked at how banks will look for very credible evidence of sound financial management before advancing funds to a young SME, but at the same time emphasised that there is a wide raft of options whereby the bank can provide significant help to a growing firm - especially in terms of Trade Finance, designed to smooth the path to overseas transactions and providing a significant boost to commercial credibility. These same aspects surfaced again during the head-tohead session, with HE Abdulla Al Otaiba dealing admirably with some stiff questioning from Paul Godfrey, and being adamant that the bank was completely justified in looking for a ‘two-way street’. The fact is, he commented, that if you do not have three years’ audited accounts for your business, you are clearly not taking your business seriously - so why should the bank? Meanwhile, Salvador Anglada looked at the key aspects whereby today’s businesses need to avail themselves of string and comprehensive levels of connectivity, and the best ways of doing so. He focused on how, for Etisalat, no business was too small or their needs too unique - again, admirably expressing this position during the head-to-head session. One of the key aspects here was his recognition that the region’s leading provider was now focusing on the SME sector in a much more proactive way than in the last, and that it had developed special ways of interacting with small and medium businesses so as to accelerate set-up and implementation of telecoms and data packages.

Event review

The power of Leadership The second session of the day featured the role of Leadership, and what it takes to motivate and dynamise growth. A fascinating presentation from Jehan Abdulkarim, Director - Marketing & Communications, Accenture, looked at some of the statistical data round what good leadership can achieve, presenting remarkable findings from organisations where all the factors were equal except the quality of leadership. This was clearly demonstrable, for example, in a retail context, where outlets in demographically equal settings provided an extremely enlightening ‘litmus test’ model for the power of leadership. The well-known local entrepreneur and business tycoon, Jassim AlBastaki, Director-General, Midex Airlines, explained how the leadership training he had received from his father has served him in good stead for building and launching a chain of major businesses. He especially focused on the role of the leader as someone with an intrinsic understanding of every aspect of the business, who was not afraid to learn from doing the most humble jobs in the company - how else could the true leader know what to do, how long it took, and how much it cost? This same theme was then developed by Robert Keay, CEO, Ethos Integrated Solutions LLC, who explained the role of the business leader in successfully navigating the key landmarks along the route. He focused especially on the importance of understanding the critical ‘hotspots’, where the business was likely to encounter crises because of cashflow and lack of business in the incoming revenue pipeline. Another factor he highlighted was the importance of good client selection: an account may seem highly promising, but not if the client always pays dangerously late! Another factor of leadership - often not given the attention it warrants – it’s the importance of choosing the right people for the pivotal jobs in your business. A provocative and well-argued presentation on this topic came from Martin McGuigan. Partner

and Head of Reward Consulting, Aon Hewitt. In the same way as the presentation on leadership and its impact on performance, he looked at ‘control test’ scenarios, where businesses faced with ostensibly similar challenges responded in markedly different ways, as a result of the varying skills of the staff heading up key departments. Play to your strengths, not your weaknesses! One of the most significant themes emerging from the day was the importance of playing to your strengths - using the resources you already have as wisely as possible before expanding your business’ liabilities. Among the high-profile personalities giving expert input here were Mikkel Kannegaard, Chief Operations Officer, 36-Strategies; Dr. Ashraf Mahate, Head of Export Market Intelligence, Dubai Exports; Firdaus Shariff, VP Marketing, SAP Middle East; and Kory Thompson, Country Manager - UAE, Regus. The critical advice they had for SMEs included – • Tighten and streamline procurement procedures: this is where substantial sums can easily be lost and it pays to use dedicated software solutions that centralise and simplify re-ordering. • Look for flexible office solutions that can expand according to your needs and won’t commit you to more expensive, traditional lease arrangements. This can also reduce your overheads for aspects such as IT and web connectivity. • Invest on gathering sound market intelligence before taking a business overseas. The process can be more complicated than you might imagine and can easily result in wastage of precious resources. Nonetheless, handled correctly, overseas expansion can be a vital tool for growing a regional SME. The adversarial panel equity or debt? One of the key innovations of Roadmap for Growth was a session pitting two panels against each other and debating

whether a debt-based model or an equity-driven model is preferable for growing a business. Moderated by Paul Godfrey, a number of intriguing conclusions emerged from what ended up as a ‘dead-heat’; between the two contrasting views. For example: • Nilanjan Ray, Managing Director & Head of Global Commercial Banking, NBAD, commented that the expected 100 per cent return on equity made this the most desirable financial tool. • Chris Thomas, CEO and CoFounder, Eureeca, made the point that many SMEs would not be eligible for debt financing anyway so they have no choice but to pursue an equity-linked model! • Meanwhile, there’s no doubt that a debt-based template can accelerate growth and has proven to be a useful tool for businesses with ambitious expansion plans. It enables a ‘second try’ at previously thwarted objectives - a point made by John Merrigan, Director, Tamayyaz FZ LLC and Andreas Borgmann, Founder and Co-CEO, Kcal. • However, the inability to meet the obligations of debt can produce spectacular failures and media attention; it’s never a completely safe route, as Archie Berens, Partner and Managing Director, Bell Pottinger, commented. The key consideration, as he noted, is the financial gearing taken on board, which can prove a lethal ingredient in times of limited cashflow. A guide to the challenges Roadmap for Growth was designed to be an effective guide for SMEs looking to grow their commercial footprint. Generating more than 1,500 follow-ups in social media, it has proven to be a powerful catalyst for debate and future strategy.

For an online version, please visit: www.tradeandexportme.com/2014/11/are-youfollowing-the-roadmap/

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

Stars of Business has become an iconic awards brand like no other in the region. It recognizes the very best SMEs across 26 business categories. Itâ&#x20AC;&#x2122;s universally respected as scientifically assessed and unimpeachably judged.

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

www.starsofbusinessawards.com Presenting Partner

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Event review

Recipe for success

With five competitions International Competition, Emirati Competition, Gulf Products Competition, Hospitality Sector Competition and Gulf Exhibition - the second Dubai World Hospitality Championship showcased the best creations from local and international cuisine.

An exhibitor showcasing Emirati tradition at the Heritage Village

During the chef’s competition of DWHC 2014

Organised by Za’abeel Palace Hospitality in co-operation with the Government of Dubai and The Emirates Culinary Guild, the second Dubai World Hospitality Championship offered a real opportunity to highlight Emirati food and culture, as well as providing Dubai as a stage for the world’s culinary talent to compete. According to HE Ahmed bin Hareb, President of DWHC: “The number of participants in the second cycle of the Championship witnessed a remarkable growth which exceeded our expectations. The 2014 cycle of the Championship will attract 3,385 participants compared to the previous cycle. After a series of evaluations, 2,588 participants have been qualified to compete in the championship, which reflects the success of DWHC and its increased reputation in the Gulf and Arab societies. Increasing the categories in the Hospitality Sector Competition from last year’s 14 to 21 has doubled the challenge for the participating chefs. The contestants will have to qualify based on various judging criteria and regulations such as taste, method of preparation, course of time elapsed, quantity of food, presentation, cleanliness, colour, smell and consistency.”

Ahmed Sharif, Vice President of DWHC, added: “The International Competition is one of the main highlights of the second cycle of DWHC. It attracts wide participation from the GCC and Arab countries, as it features a wide range of hospitality and culinary contests and activities. The competition will highlight the rich culture and authentic heritage of the GCC and the UAE. The event aims at spreading knowledge of UAE’s culinary traditions and Gulf hospitality and maintaining and passing them on to the next generations.” DWHC has played a vital role in maintaining the rich heritage and traditional culinary arts and promoting handmade products, shedding light on the authenticity of the UAE’s heritage and culture and the warm hospitality of its people. Sharif added: “The Championship is a global platform that aims at highlighting the top Emirati young talents and showcasing their achievements and creation in hospitality and culinary arts.”

For an online version, please visit: www.tradeandexportme.com/2014/11/ recipe-for-success/

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Event review

Empowering change

10th World Islamic Economic Forum

The 10th World Islamic Economic Forum (WIEF), held at the Madinat Jumeirah Conference Centre Dubai on 28 - 30th October 2014, addressed a myriad of current economic and business related issues with the objective of generating innovative and creative solutions to transform the global economy.

Speaking during the opening session of the three-day forum, HE Mohammed Al Gergawi, UAE Minister of Cabinet Affairs and Chairman of the Dubai Islamic Economy Development Centre, highlighted the role the Islamic banking sector can play in helping to improve stability across the Muslim world. “The world is facing many reasons for tense [relations] and regression in terms of development and this is happening in many of the Islamic countries. One of the reasons and purposes of Islamic banking is investment in land, the investment for the prosperity of nations and the happiness for human beings everywhere in the world,” he said. “The Islamic economy, together with economic partnerships and

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HE Mohammed Al Gergawi

the resources that can be devoted to the development of societies, are a key element towards the stability in the world. We can achieve this if we establish innovative partnerships and if we foster and promote cooperation and lead policies towards development that conform to Islamic rules. Islamic banking and the achievements made so far are very strong proof of the fact we can achieve this,” he added. The Hon. Tun Musa Hitam, Chairman of WIEF Foundation, said: “We do hope that holding this year’s annual Forum in Dubai symbolically indicates our best wishes and confidence in Dubai’s success.” “We are convinced that taking into account the connectivity of religion, politics and economic development, there needs to be increased attempt to bridge gaps by working on common denominators that could unite us all in order to create the changes of conflict. The most obvious common denominator is business collaboration through a win-win situation,” he added. Prime Minister of Luxembourg, Xavier Bettel, said: “We have a unique opportunity and responsibility to create bridges and partnerships between all of us, for the better good of our societies. While technological developments have revolutionised our means of communication and have dramatically accelerated globalisation, I would like to reaffirm the necessity of dialogue on our cooperation. We need to constantly

Hon. Tun Musa Hitam, Chairman of WIEF Foundation

evaluate our current relationships, to agree on new visions and to develop new, innovative partnerships for economic growth.” “This Forum plays a critical role in encouraging dialogue and trust between people and nations. This great city of Dubai provides an inspiring role in bringing people together in business and in friendship. The worldwide community recognises new global prosperity through international business cooperation,” added HE Kay Rala Xanana Gusmao, Prime Minister of Timor L’este. Focus on SMEs In an insightful, often self-critical and highly optimistic debate on the role of Islamic finance in enabling trade, high ranking international banking professionals observed that Islamic finance will become a norm rather than an alternative – as it is currently- in the near future, driving the growth of small and medium enterprises (SMEs) and Islamic trade.

For an online version, please visit: www.tradeandexportme.com/2014/11/ empowering-change10th-world-islamiceconomic-forum/

Event review

In the spotlight

Women in Leadership Economic Forum Held under the patronage of the UAE Ministry of Economy, the 16th global edition of the Women in Leadership (WIL) Economic Forum (November 1920, 2014 at Meydan Hotel, Dubai) convened 300 global influential business and thought leaders to discuss key issues surrounding women empowerment.

Quick snapshot The Women in Leadership Forum has been actively promoting economic empowerment of women as well as diversity and inclusion in the workplace since its launch in 1999. The 16th edition looked at issues such as women shaping the future of investments, role of women in corporate governance, and the media’s role in positioning women in business, politics and leadership. The event serves as a platform to explore opportunities for female corporate leadership in the light of Dubai’s Expo 2020 outing.

Self-made women who have successfully incorporated gender parity within the private sector, as well as women from the public sector who have made a difference to the community advocating for female entrepreneurship and innovation, gathered at the Meydan Hotel from 19-20 November. Under the patronage of the UAE Ministry of Economy, the current edition of the forum is organised by naseba, a French business facilitation company with on-the-ground presence in major cities across the Middle East, Africa and Asia. The two-day Forum saw Her Excellency Sheikha Bodour bint Sultan Al Qasimi, Chairperson of the Sharjah Investment and Development Authority and Founder, present an inspirational speech on female entrepreneurs in the UAE and women’s leadership in local and international markets. She made a case for the empowerment of women and youth through various social initiatives. Her Excellency Sheikha Bodour said: “Human capital is the most valuable asset for any nation. There is no doubt that our world is facing real and pressing challenges, which is why collective effort is needed in creating solutions and why supporting women’s leadership is a socially and economically vital undertaking. The WIL Forum provides an excellent platform for women who have already proved themselves as successful leaders to come together and find concrete ways to empower other women and tap into the vast pool of potential that women represent women represent. I look forward to taking part in this very important event.” A leading advocate of women empowerment and distinguished as one of the 100 most powerful women in the region, Her Excellency Fatima Al Jaber, Board Member, Al Jaber Group and Chairperson, Abu Dhabi Businesswomen’s Council, served as a panellist on ‘Women Game Changers: Vision 2020 and the Future of Business’. Dr Leila Hoteit, Partner and Managing Director, the Boston

Her Excellency Fatima Al Jaber, Board Member, Al Jaber Group and Chairperson, Abu Dhabi Businesswomen’s Council Her Excellency Sheikha Bodour bint Sultan Al Qasimi, Chairperson of the Sharjah Investment and Development Authority

Consulting Group, explored human capital development in a multicultural environment as a panelist on ‘What next best D&I practices look like – tools for cultural transformation and leadership’. Dr Hoteit said: “In the Middle East, gender diversity – especially across leadership roles – should no longer be considered optional. It must be unequivocally and imperatively part of a company’s DNA. Today, senior business leaders are using diversity as a point of strategic differentiation and as a powerful instigator of growth. After all, given the growing number of female customers across markets, there is certainly a strong need for a diverse leadership team that can connect with this specific audience segment. As the pipeline of female talent continues to expand, it is up to corporate stakeholders to make a ‘business case’ for investing in women and act as catalysts for change.” Cherie Blair, a leading lawyer, women’s rights campaigner and wife of former British Prime Minister Tony Blair, and Her Excellency Datin Paduka Seri Rosmah Mansor, wife of the Prime Minister of Malaysia, led the conference as keynote speakers.

For an online version, please visit: www.tradeandexportme.com/2014/11/ in-the-spotlight-women-in-leadershipeconomic-forum/

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19 - 20 NOVEMBER 2014

ENDORSED BY

MEYDAN HOTEL, DUBAI, UAE

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OFFICIAL COMMUNICATIONS PARTNER

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

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TECH TRENDS

top Apps to spruce up your SME! Rushika Bhatia ,s view...

Enj spec oy our Du apps ial – pop bai ular in t mark he local et…

Tech Terms Launched by the Dubai Silicon Oasis Authority (DSOA), this app is a dictionary for technology-related words. Entrepreneurs running earlystage companies often have to manage all IT applications on their own – this is where Tech Terms can prove to be incredibly useful. What’s particularly attractive about the app is that once downloaded, it allows the user to search for terms in offline mode. In its next phase of development, the app will also allow users to submit new terms – which will be reviewed by DSOA’s moderators and included into the app’s database.

Available on: Android and iOS platforms Cost: Free

www.smeadvisor.com

TECH TRENDS

DEWA by Dubai Electricity and Water Authority DEWA’s new and improved app is one of the most advanced and impressive apps available today. With its wide range of features, everything a user needs in order to manage utilities is now just a few clicks away! The app enables the user to view and pay bills, monitor electricity and water consumption, map carbon footprints and learn new tips on reducing water and electricity usage. The app also helps locate the nearest DEWA service centre – quite handy for those that are always on-the-go!

Available on: Android, iOS and Windows platforms Cost: Free

ArabiaWeather This app allows users to get weather information for any area of their choice. In addition, users can also receive notifications and warning messages about sudden unstable weather conditions. A great differentiating feature of the app is its ‘Weather Reminder’, which notifies users about the weather conditions of a pre-selected location – this allows them to be fully prepared for any unforeseen circumstances. Other features of the ‘ArabiaWeather’ app includes ‘Lifestyle,’ which are recommendations and weather-related tips that can inform users if its suitable to conduct outdoor activities like picnics or trips to the park or how current weather conditions can affect public health.

Available on: Android and iOS platforms Cost: Free

www.smeadvisor.com

TECH TRENDS

travall Designed specifically to support the travel, tourism, entertainment and leisure industries, travall will offer popular Dubai-based destinations with compelling, broadcast standard videos that will engage consumers looking for insight into the destinations, before they visit. Notable features of the app include: building an itinerary for a trip; making reservations; sharing details on social media; rating and reviewing an outlet; redeeming free vouchers; and taking advantage of last minute promotions. In addition, the most engaged users can earn points towards various prizes including: meal deals, weekend stays, holidays, flights, and other travel and leisure experiences. The app will go live in the UAE market on 2nd December.

Available on: Android and iOS platforms Cost: Free

Smart Salik Another popular RTA service, Salik account management is now available on smartphones. The Smart Salik app makes managing Salik accounts easier and more convenient than ever. It also allows Salik users to top up an account, without the need to get out of the car and purchase a recharge card. Other features of the app include balance inquiry, recharging a friendâ&#x20AC;&#x2122;s account, recent trips review and monitoring traffic violations. Further development of the app will introduce features such as code recognition, which will no longer require the user to manually enter the recharge code.

Available on: Android and iOS platforms Cost: Free

For an online version, please visit: www.smeadvisor.com/2014/11/apps-andgadgets-sme-dubai-special/

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TECH TRENDS

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