SME ADVISOR issue 110

Presenting partner

strategic SME partner

ISSUE 110

People power

Talent management with Dr. Ashraf Mahate

GETTING VALUE Jon Duschinsky on building a brand

Life above the line with Elevision’s Niall Sallam

On the move

Inside the pay-as-you-go culture

You’re dedicated to your business.

So are we.

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EDITORIAL COMMITTEE SME Advisor is delighted to announce that during 2015 we will be working with some of the leading names in the SME space - key figures who have kindly agreed to take part in our new Editorial Committee. This panel will play a vital role in channeling the feature content of our magazine and ensuring that we are more topical than ever - analyzing and discussing the ‘real world’ issues of tangible value to our readership and bringing industry-leading expertise across the publication and its raft of prestigious related events. We are delighted to introduce the following SME personalities:

Avishesha (Avi) Bhojani Avishesha (Avi) Bhojani is the CEO of Bates PanGulf (BPG) Group. At the helm of the BPG Group since 1991, he is responsible for consolidating the Group’s interests across advertising, public advocacy, public relations, design, activation, media asset management and digital verticals, in the Middle East and North Africa region.

He is also instrumental in the conceptualisation and execution of a number of strategic retail initiatives in Dubai such as Dubai Shopping Festival and Dubai Summer Surprises.

Professor Val Lindsay, MSc (Otago), MBA (Victoria), PhD (Warwick) Dr. Val Lindsay is a Professor in Strategy and International Business, and Dean of the Faculty of Business at the University of Wollongong in Dubai (UOWD). She has a keen interest in teaching and research in the areas of international strategy, exporting, services internationalization, entrepreneurship, small and medium-sized enterprises, networks and clusters, and economic development.

Essa Al Zaabi Essa Ali bin Salem Al-Zaabi is the Senior Vice President - Support Services at Dubai Chamber of Commerce & Industry, and the Director of the Dubai Chamber initiative, Tejar Dubai. He is a proven UAE leader and business entrepreneur, with the ability to rapidly mobilize teams to achieve organisational change and integration.

A self-motivated team-builder and corporateperformance driver, he has held a number of key positions throughout his career that has reflected his passion and commitment to the development of UAE nationals as business professionals, young entrepreneurs and future leaders. Previously he has worked with the National Human Resource Development and Employment Authority, as the Director of Tanmia – Dubai Office, then became

the Vice President of Human Capital at the Dubai World Trade Centre, and later on the Deputy General Manager of the Emirates Institute for Banking and Financial Studies.

His Excellency Abdullah Saeed Al Darmaki His Excellency Abdullah Saeed Al Darmaki is the Chief Executive Officer of the Khalifa Fund for Enterprise Development, a government entity that spearheads the support and development of SMEs in the UAE. His role is integral to the strategic planning and management of the organisation in alignment with the Executive Council’s objectives.

With over 17 years of experience in Oil & Gas, Petrochemicals and Manufacturing industries, and a background in Sales & Marketing, he has held a number of leadership positions with governmental and private organisations in the UAE. Mohan Valrani Mohan Valrani came to Dubai in the year 1966 and has been staying in Dubai for last 48 years.

Mohan Valrani is the Senior Vice Chairman & Managing Director of Al Shirawi Group of Companies, which is a large conglomerate in the UAE and one of the largest in the Arabian Gulf, with headquarters in Dubai (UAE). Apart, from his business activities, he is also deeply involved in social activities. He is the founder - Chairman of the India Club and on the Board of Trustees of The Indian High School and has been as instrumental in contributing to the success of these institutions.

Roberto Mancone Roberto Mancone is the Global Head of Business Products for SMEs and MidCorporate for PFB Germany, PBC Int’l and Postbank. He is Chairman of the Global Credit Product, Deposit and Payments Executive

Committee of the Private and Business Clients Division of Deutsche Bank.

He is Board Member of the Advisory Board of Deutsche Auskunftei Service GmbH, Chairman of Business Advisory Council of EFMA, member of ECGI (European Corporate Governance Institute) and Member of the Advisory Board of BAA, the Alumni Association of Bocconi University and SDABocconi.

Yogesh Mehta Yogesh Mehta is the Managing Director of Petrochem Middle East.

He graduated with a Bachelor of Science in Chemistry from National College Bandra in Mumbai, India. Over time he opened his own chemical trading business, which enjoyed fair success. He then relocated to Dubai in 1990 and within five years, he managed to establish a business by opening a state-of-the-art storage terminal for bulk and drum chemicals.

Driven by passion and a need to succeed, he established Petrochem Middle East in 1995 with friend and business partner David Lubbock.

Petrochem Middle East has since grown from strength-to-strength to become one of the largest independent petrochemical distributors in the Middle East. A self-made billionaire, his greatest attributes are mentoring and leading by example.

Sultan Sobhi Batterjee Sultan Sobhi Batterjee is the owner and CEO of IHCC, the leading Hospital Construction Company in the Middle East and Africa, and Founder and President of Lifestyle Developers Ltd. He is a member of several social and economic associations including the Young Arab Leaders Society in Dubai, the young entrepreneurs committee Jeddah Chamber of Commerce and he is also a Board Member of the (EO) Entrepreneurs’ Organisation in the USA. He holds a number of academic honours including a Bachelor’s Degree in International Finance and Accounting from the Regent’s Business School in London and a Masters in Entrepreneurship from the Entrepreneurs’ Organisation/MIT and Strategic Diploma from Oxford among others.

MANAGEMENT Dominic De Sousa Chairman Nadeem Hood Group CEO Georgina O’Hara Group COO EDITORIAL Group Director of Editorial Paul Godfrey paul.godfrey@cpimediagroup.com +971 4 440 9105 Editor Rushika Bhatia rushika.bhatia@cpimediagroup.com +971 4 440 9115 Editorial Assistant Adelle Louise Geronimo adelle.geronimo@cpimediagroup.com +971 4 440 9160 ADVERTISING Publishing Director Rajashree Rammohan raj.ram@cpimediagroup.com +971 4 440 9131 Commercial Director - Business Division Chris Stevenson chris.stevenson@cpimediagroup.com +971 4 440 9138 Director of Sales Ankit Shukla ankit.shukla@cpimediagroup.com +971 4 440 9111 Event Sponsorship Manager Gill Fairclough gill.fairclough@ cpimediagroup.com +971 4 440 9120

FROM THE EDITOR It’s not about Singapore…

I recently had the pleasure of organising and Chairing a major round table event in Oman - called ‘The Dynamics of Entrepreneurship’ - which proved to be an extraordinary insight into the current state of SME development in the region. It comprised two separate panels, one for the public sector, one for the private sector, and during the public sector session, a senior VIP commented: “why should we always see SE Asia as the template, when we have the power to set the new benchmark here in the GCC?” This is a very important observation, because if we distil the current debates about entrepreneurship and SMEs taking place in Oman and the UAE, it’s a dialogue that is arguably ahead of anywhere else in the world. Let’s look at some of the points raised in the Oman round tables, for example.

Firstly, there was the observation that we really don’t need entrepreneurship training as such - what we need is management training, helping people do real jobs in the here and now and do them better than before. Plus, when there is a focus on entrepreneurship, it has to be linked to a particular industry sector, not spoken about as a generic skill in its own right.

There were also concerns that while much is made of public and private sector partnerships, how many SMEs actually know where to look to find what tendering opportunities are available? It also seems that still less know how to fill in the tender application form and stand a chance of winning.

See - these are enlightened and critical points that, if addressed properly, can put the SME sectors in the region at a functional level commensurate with anywhere in the world. The fact is - as the expert panellists in Oman fully realised - that the Middle East can only deliver world class SMEs if it raises performance right now, not in some undefined ideal world of business school hypotheses. As someone who has been privileged enough to see three full-length interviews with Lee Kuan Yew, I can vouch that this is exactly the pragmatic, real-world approach that led, as LKY himself said, “to SMEs working beautifully in Singapore.”

Now we have the means to help the the great majority of SMEs do that here as well. Which means that in the future, people won’t quote the case of Singapore - they will cite the UAE instead.

Enjoy this issue of SME Advisor!

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

Paul Godfrey Senior Editor

Production Manager James Tharian Data Manager Rajeesh Melath Printed by Al Ghurair Printing & Publishing LLC

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Rushika Bhatia Editor Talk to us: E-mail: paul.godfrey@cpimediagroup.com Facebook: www.facebook.com/SMEadvisor

PRESENTING PARTNER

© Copyright 2015 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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STRATEGIC SME PARTNER

KNOWLEDGE PARTNER

Contents

“The risk audit should cover every shape and style of risk, not just the physical ones.”

44

p18

“The changing dynamics of Internet usage not only open up a wealth of new opportunities for consumers and businesses, but create a new set of responsibilities, too.” p36

ON THE FRONT COVER

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

09 Editor’s Note Paul Godfrey on how the Middle East is creating its own template for exponential economic growth…

12 Data and decision making Our infographic section showcasing key trends shaping the SME marketplace.

Ground level 14 Money goes mobile.

Investment in the mobile payments industry is set for an unprecedented boost.

Is your SME ready?

18 The cost of good business: insurance and what it can do for your SME. Senior Editor Paul Godfrey spells out the basics…

22 How risk averse are you?

We present some key risk fundamentals and assess the appetite for risk.

24 Unleash the power of LinkedIn. Expert practitioner Darain Faraz reviews the brand agenda and how to go about those first pioneering steps…

sme advisor ISSUE 110

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40

22 28 Setting KPIs – do it the right way!

A practical guide on how to get the right performance measures in place and supercharge productivity.

Personal Finance 48 The APPEAL of private banking.

Are you fully reaping the rewards?

Business Banking 32 The start-up challenge.

Where is the money to start your business going to come from? Find out here…

The Next Level 52 The power of people.

Noted industry commentator Dr. Ashraf Mahate, Head of Export Market Intelligence, Dubai Exports, shares insights…

Digitally Disruptive 36 ADDING VALUE TO CUSTOMER WI-FI We look at important aspects that would ensure that you and your customers reap maximum benefits from the public wi-fi.

Movers & Shakers 40 Creating value through conversations.

The world’s number one branding guru, Jon Duschinsky, in a candid chat with SME Advisor.

44 Entrepreneurial vision: Niall Sallam and the world of digital.

The dynamic CEO of Elevision Media shares his recipe for fast-paced growth.

Trade and Export ME 59 We present our comprehensive section, Trade and Export ME A practical, informative and incisive guide for the trading community in the region.

Tech Trends 84 Business apps to boost productivity and profitability.

Data and Decision making

Mobile money

get up to speed with the latest trends THE RISE OF MOBILE

7 billion

mobile subscriptions globally

60%

of the world’s population is covered by 3G

60%

of global mobile users use mobile devices as their primary or exclusive means of going online

IDC predicts that total wearable shipments will grow from 19 million units in 2014 to 128 million in 2018

Of Facebook’s 829 million active daily users in June 2014, 654 million or 80% were mobile users

INCREASING POPULARITY OF MOBILE PAYMENTS

60.8%

M-payments are expected to grow annually through 2015 Over

61 million

active mobile money accounts across the world in June 2013

37.9

was UAE’s overall score on MasterCard Worldwide Mobile Payments Readiness Index SOURCES: BCG’s The Growth of the Global Mobile Internet Economy, Verifone’s The Path of Payments 2015, MasterCard, InMobi, MasterCard Worldwide Mobile Payments Readiness Index, Deloitte, GSMA, Worldpay’s People, Payments and the future report, World Payments Report 2014 by Capgemini and RBS.

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Data and Decision making

WHAT THE CONSUMERS ARE SAYING?

94%

believe that convenience remains the most positive aspect of mobile payments

58%

of consumers are comfortable with stores using their purchase history to customize future shopping experience

43%

of consumers are most likely to make small purchases using a smartphone, while 41% make medium purchases and 32% large purchases

CONTACTLESS PAYMENTS By end of 2015, NFC-equipped phones will be used at least once a month to make in store retail payments

93%

believe contactless payments are quick and efficient

THE WORLD OF BANKING more than

60%

of consumers worldwide are expected to use mobile banking in 2015

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93% of mobile banking

users check their balances on a mobile device, while 44% use a mobile device to make payments

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GROUND LEVEL

Money goes mobile Investment in the mobile payment industry is set for an unprecedented boost, as tech giants Google and Apple bet big on mobile wallet solutions and contactless payment technology. But, the real question is – what does this mean for your small business? Rushika Bhatia explores the playing field and offers top advice‌

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GROUND LEVEL

Research suggests that 60 per cent of global mobile users use mobile devices as their primary or exclusive means of going online.

This explains why major players are looking to be a part of the mobile payment revolution. Consumer appetite for mobile technology is growing – essentially because they want quick, easy-to-use channels that address their day-to-day needs. This is also reflected in the escalating smartphone penetration rates – it is estimated that there are seven billion mobile subscriptions globally.

With consumers becoming increasingly dependent on their mobile devices, the pressure on businesses is now more than ever to exploit the opportunities of mobile technology and to stay ahead of the curve. Mobile payments is one such area and has garnered a lot of attention over the past few years.

Let’s take a look at some of the latest statistics: • By 2017, there will be about 450 million mobile payment consumers, according to Juniper Research • Gartner predicted that total global mobile payment transactions would reach $507 billion in 2014 Clearly, mobile payments is the way moving forward and is rapidly revolutionising how we do business. So, what can you, as a business owner, do to prepare yourself for this change and make the shift? What makes mobile payments so attractive? In the following sections, we present the fundamentals…

The benefits of mobile payments • Retain customers: For a business, retaining existing customers is much more cost-effective than reaching out to new ones. Mobile payments can help you integrate loyalty rewards or incentives

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Established alternative players (e.g. PayPal)

PLAYERS MOST LIKELY TO DRIVE GROWTH IN MOBILE PAYMENTS (% of repondents who agree or strongly agree)

Card networks/ payment schemes

85%

82%

Web-related companies (e.g. amazon)

Banks and financial institutions

77%

76%

Emerging alternative players (eg. Google)

Merchant and merchant initiatives (e.g. MCX)

74%

72%

MNO/bank joint initiatives

Payment providers (e.g. wallet providers)

64%

69%

Start-ups (e.g. joint ventures like ISIS)

Mobile network operators and initiatives

52%

62%

Source: Advanced Payments Report 2014 by American Express and Edgar, Dunn & Company

on purchases without having to create a separate programme.

Starbucks, for instance, has more than succeeded with this model.

With 13 million active mobile users, the coffee giant’s ‘My Starbucks Rewards’ is a fantastic platform to incentivise customers and keep them coming back. Such integration completely eliminates the need for loyalty or punch cards; customers would no longer have to worry about presenting those at every purchase as everything is automated. Moreover, it also lets the business customise offers that are suitable to an individual customer and strengthen its overall value proposition.

By 2017, there will be about 450 million mobile payment consumers, according to Juniper Research.

• Improve customer service experience: As a business owner or merchant, what is the biggest advantage of implementing mobile payments? A happy customer!

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GROUND LEVEL

Profitable business model

KEY HURDLES TO THE DEVELOPMENT OF MOBILE PAYMENTS SOLUTIONS (% of repondents who agree or strongly agree)

Development of an acceptance network

80%

71%

Security and increased fraud risks

Different technology standards

77%

70%

Value proposition not adapted to consumer needs

Lack of interest from merchants

76%

55%

Confusion due to the large quantity of mobile payment methods

Relevant marketing offers to consumers

76% Partnerships with other stakeholders (e.g. banks, retailers)

72%

54%

Lack of consumer demand

52%

Source: Advanced Payments Report 2014 by American Express and Edgar, Dunn & Company

One of the most appealing factors of a mobile payment programme is its ability to understand consumer behaviour and capture useful information on buying trends.

In today’s fast-paced world, consumers are looking for fast, hassle-free and non-complicated solutions that make their life easier. A mobile payment option gives them the convenience to make purchases instantly and flexibly – from anywhere and at any time. For customers, the check-out or payment stage is the least favourite part of their shopping experience and mobile payments can decrease this drastically – particularly within retail stores. Another major advantage is that paper receipts are totally eliminated; once a customer makes a mobile payment, an e-receipt is sent to them via e-mail or text. This means that customers have the ability to keep track of their purchases without worrying about saving paper receipts.

• Capitalise on “in the moment”

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purchases: Most customers today go online to research a product they are planning to buy before actually purchasing it.

So, if your customer is viewing your product, likes it and is able to make a payment using his or her phone, there is no need to physically visit your store.

This increases the chances of impulsive purchases being made.

• Analyse customer preferences: One of the most appealing factors of a mobile payment programme is its ability to understand consumer behaviour and capture useful information on buying trends. You can track what products or services are being purchased and better manage inventory levels. For example, a café can use the purchasing data to determine that cappuccinos are sold most frequently on Sundays, and plan accordingly. Or, a customer that has purchased a printer gets reminders to buy new ink cartridges every three months – a great way to cross-sell!

• Gain a competitive edge: To be competitive, any business has to find innovative ways to improve its customer service experience.

Implementing a mobile payments system gives small businesses an edge over their competitors – as it enables them to be available to customers via every platform.

• Tap into new markets: The world is experiencing mobile penetration rates like never before. People that don’t even have access to traditional media forms are now connected with mobile technology. This has enabled businesses to reach out to a whole new demographic of customers and tap into fresh markets.

• Setting up is fairly easy: Contrary

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GROUND LEVEL

to popular belief, mobile payments don’t require advanced technical knowledge and are fairly simple to implement.

In terms of cost as well, they aren’t too expensive to adopt.

With very little infrastructural requirements or costs, it is easy to switch to mobile payments.

The challenges of implementing mobile payments A recent survey, Advanced Payments Report 2014, highlighted two of the biggest challenges when developing mobile payment solutions. They are as follows – 1.

2.

Apple Pay – how it’s shaping the industry Apple Pay acts as a digital wallet that syncs all your payment cards to your smartphone, allowing you to make payments via your iPhone 6.

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Identifying a viable business model: Although mobile payments don’t require significant infrastructural changes, they still do take up time, money and resources.

For an SME, such small investments can have a large impact on profitability. So, you have to ask yourself – how much value is such a platform adding to your bottom line?

If you decide to go ahead with mobile payments, ensure that you fully understand the needs of your customers and your solution caters to them.

Security: Of course, the first thing that comes to mind when thinking about mobile payments is security – how secure are payments on mobile devices? What if someone is able to access critical payment information such as credit card or bank details? It is imperative for businesses to create a safe, secure portal for customers to be able to make payments comfortably without worrying about such issues. At a recent high-profile event, Peng Ning, Senior Vice President, Samsung Research America, rightly remarked: “Whilst usability is

Top tips for implementing mobile payments • Seamless integration: The key to developing a successful mobile payments platform is the seamless integration of couponing and loyalty programmes with payments.

• Simplicity: The primary reason why mobile payments is appealing to consumers is because it’s simple and instantaneous. So, ensure to keep your interface user friendly – with not more than two taps to checkout.

• Security: This is one of the major concerns within the mobile payments industry and has been a barrier for several merchants and consumers. Try to partner with leading payment vendors to come up with sound solutions for authentication.

key for payments, security is a necessary condition for people to use them.”

Remember, mobile payments aren’t just a luxury, they are absolute necessity for every small business.

If your business is able to move past these initial hurdles, mobile payments can truly supercharge your business.

For an online version, please visit: www.smeadvisor.com/2015/04/moneygoes-mobile/

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GROUND LEVEL

The cost of good business insurance and what it can do for your SME

Every business needs insurance. The spate of warehouse fires in the northern emirates in recent years have demonstrated the catastrophic impact of not having the right cover in place. Yet insurance is a complex and challenging subject to understand, and it’s hard to see exactly what protection you might need.

Senior Editor Paul Godfrey spells out the basics‌ 18

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GROUND LEVEL

Insurance is the biggest single commercial sector in the world - bigger than banking, telecoms or aviation.

There’s a good reason for this. For the last 350 years, it’s been receiving premiums from millions of businesses of every shape and size, and this slow, regular drip-feed of income has built a trillion-dollar industry. This in turn means that historically, very few major insurers have ever gone bust (the last one was in Japan six years ago; the one before that in the UK in 1991).

The reality is that these rock-solid financial entities are not simply a ‘nice to have’ when it comes to protecting your business - they are an absolute essential. They have the assets that enable them to pay out against each and every scale of loss, and the chances are that any risks your SME may incur are tiny sums on their balance sheet.

The fact, is, though, that how much that peace of mind costs you depends on the level of risk you transfer to the insurer, and this may have very little to do with the cost of the payout. But it has everything to do with the likelihood of that claim being made.

So if, for example, you have a paint warehouse where staff are allowed to cook and smoke, your premium may be sky-high. You may even be uninsurable. Take the same warehouse with proper health and safety measures in place and the premium can be very affordable indeed when taken against your overall running costs. So it pays to reduce obvious risks as much as you can before the insurance premium is discussed and settled. Dealing with risk in this up-front, proactive way is called Risk Management - and it’s become an almost-compulsory approach for businesses looking to implement a full raft of insurance cover at the lowest possible cost.

There’s another factor to Risk Management, too: it saves lives. The best insurance in the world will only pay out after the fact, after the incident has happened. It will help you repair the damage, but it can’t bring back those whose lives have been lost, or mend the physical injuries to staff,

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customers or the public. Good Risk Management prevents the accident happening in the first place, making for a better, safer and more compliant working environment. So it’s the first thing you need to consider - and if you already have a good-quality insurer, tell them that that you now want to put some solid risk management protocols in place and would value their consultancy in this important area. This may lead to a significant reduction in your premium costs as well as creating a safer workplace. Similarly, if yours is a new business, think about the Risk Management implications and challenges from Day One. Build the (relatively low) cost of a proper Risk Management audit into your forecasts and projections and ensure that you update to bring on board any fresh risks, too (for example, you might start to be able to afford a company delivery van, which will have to parked overnight, serviced and will contain valuable items of inventory).

The Risk Management audit what it is and how it helps you choose the right cover There are about 40 main categories of insurance cover, and many of them you won’t need at all. Conducting a good Risk Management audit will not only help you identify the risk ‘hotspots’, but will tell you where you need cover and what kind of cover that should be. For example, if you have senior members of staff travelling to the Levant or Iraq, Nigeria, or Somalia (or indeed parts of Central and South America) on a regular basis, you might want antikidnap cover in place - whereas for most businesses, it’s irrelevant.

The risk audit should cover every shape and style of risk, not just the physical ones. It will look at directors’ and CEO succession issues, for example, or the risk of deflationary trends on key export markets (perhaps due to low oil prices); or it will look at threats from competitors, or from lack of product innovation. For the risks closer to home, the simplest approach is to ‘walk’ the premises, preferably

The risk audit should cover every shape and style of risk, not just the physical ones.

accompanied by an expert professional from your insurance company. An audit of this type can comprise • A review of all public and communal areas: is the flooring uneven or slippery, presenting a risk of tripping, or dangerous falls? Are rest rooms in a hygienic and clean condition? Are all communal areas properly lit if the premises invite guests at night?

• Do you have handrails on all staircases? Are stair edges clearly marked and any carpeting properly secured?

• Are LPG gas canisters or flammable chemicals kept away from heat sources and securely stored?

• Are all fire exits in correct working order? Are any of them blocked by boxes or furniture, or kept permanently locked?

• Is the building properly secured overnight? During working hours, are unwanted visitors able to roam around, inviting risk of theft? Do cash offices and areas storing sensitive data have suitably sturdy doors and are their windows wire-meshed in accordance with safety standard DIN EN 13024-1? Are staff in cash areas always instructed to lock doors behind them after entry? Are sensitive and cash-holding areas protected by fire doors conforming to DIN 4102?

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GROUND LEVEL

These are just five key areas of risk observation - and they can make a dramatic difference to the level of potential danger that your premises are exposed to.

The insurance cover you need With the risks identified, it’s time to select the right raft of insurance products. Excluding the more exotic styles of cover - which many businesses will not need - there are basically nine key types of cover that, for most businesses. will be virtually indispensable. These are Liability Insurance: For every business, this is an absolute essential.

It covers you if your employees or products have in any way harmed a third party, causing Bodily Injury or Property Damage. Many policies of this kind will also cover all your court costs should an allegation go to court.

1.

2. Property Insurance: This is the most basic style of cover. It’s designed to protect you if you own your building and you want to insure personal items belonging to staff, or business hardware such as computers, office equipment, specialist tools, and so on. You might also consider purchasing a policy that will protect you if you have a fire, or there is vandalism, theft, smoke damage etc. Typically, cover such as business interruption/loss of earning insurance, etc., can be made part of the policy to protect your earnings if the business is unable to operate.

Business owner’s policy (BOP): This is a convenient way of bundling together all the key covers that a business owner will need, including business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance. The package can be tweaked and customised according to your needs. The BOP is a good way to save money, Based on your company’s specific needs, you can alter what is included in a BOP. Typically, a 3.

20

business owner will save money by choosing a BOP because the bundle of services often costs less than the total cost of all the individual coverages.

On the other hand, it may not be suitable for very high cover limits or more exotic product lines.

Commercial Vehicle Insurance: As the name suggests, commercial vehicle insurance protects a company’s vehicles. It’s suitable for protecting vehicles that carry employees, products or equipment.

Commercial vehicle insurance can insure the following from damage or collision: • Work cars • SUVs • Vans • Trucks 4.

Note, however, that it may not be applicable for heavy duty specialist vehicles such as commercial earth movers. These may require special types of cover if they are to be driven on the road as well as used at the work site.

5. Worker’s Compensation: This provides insurance to employees who are injured on the job. It will provide wage replacement and medical benefits for personnel injured while working. Note, though, that in exchange for these benefits, the employee will generally be required to gives up his or her rights to sue the employer for the accident. So clearly, for business owners, it is paramount to have worker’s compensation insurance: it’s a powerful protection from the threat of worrying and costly legal complications.

6. Professional Liability Cover: The policy provides defence costs and damages if an owner or director is accused of failing - or improperly rendering professional services. Note that a General Liability policy does not protect against cases of this kind, so ‘top-up’ with Professional Liability cover can be vital. Professional

liability insurance is applicable for any professional firm. It’s especially important if you are in sectors such as healthcare, law, construction and accountancy.

7. Directors’ and Officers’ Insurance: This protects the directors and officers of a company against accusations that their actions have impacted the efficiency, profitability or operations of the company.

8. Data Breach Insurance: This is crucial to prevent actions from staff or customers about the incorrect release or publication of their personal details.

A business that stores sensitive or personal data about employees or clients on their computers, servers or in paper files is legally responsible for protecting that information. However a breach occurs, either electronically or from a paper file, a Data Breach policy will provide protection.

9. Life Insurance: Not strictly a business cover, but a real fundamental.

If you have life insurance, the insurer pays a certain amount of money to a beneficiary upon your death. The idea here is that your dependents will not face unwanted bills either relating to your funeral (at the most basic level) or to the loss of your income. You pay a premium which is geared to delivering a sum commensurate with your salary in the event of your death - so loved ones will not suddenly be faced with turning their lives upside-down.

It’s fairly straightforward to see that these key areas of insurance offer real, highly practical business support. So will you be one of the SMEs taking proactive measures to secure and empower the business - or leave matters dangerously to chance, putting staff, customers (and your livelihood) in peril?

For an online version, please visit: www.smeadvisor.com/2015/04/the-costof-good-business/

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COMPLEXITY

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SIMPLE

KEEPS THEM COMING.

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GROUND LEVEL

How riskaverse are you?

Deciding what risk is and how much of it you want the business to entertain is a core part of a business owner’s remit - but are you equipped to take the necessary steps? SME Advisor goes in quest of some key risk fundamentals.

Risk management

As far as a company is concerned, the term ‘risk’ is largely taken to refer to financial exposures. However, in reality, anything that poses a threat to the achievement of the company’s goals or an event which adversely affects your company; is perceived as a risk. There is a common conception that successful entrepreneurs aren’t averse to a modicum of risk. On the contrary, rather than facing risks as they come, a successful entrepreneur is who one identifies and anticipates potential risks and manages them appropriately.

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So the first questions we should ask are: what is risk and how much of it do you want? Risk, in simple words, is the potential to lose something of value. It can be measured by the impact an event has on the financials, reputation, health and safety of you or your employees and the community.

Most companies evaluate one risk at a time. The amount of risk to be retained by the company is most often weighed against the premium or other savings for assuming each risk. It is less common to find companies that make risk transferrisk retention decisions based on their entire portfolio of activities. Doing so however, could help companies derive the greatest value from their available risk-bearing capacity: its financial capacity and tolerance for taking risk.

This approach is known as intrinsic risk valuation (IRV). The intrinsic value of each risk, or layer of risk, is defined as the company’s internal cost to retain, or self-insure, the risk at the break-even point over time. The intrinsic value is the sum of the expected (average) cost of a loss or losses to be retained, a risk charge based on the difference between the expected value of losses and a high-confidence interval outcome (the

equivalent of 95 per cent), a charge for the ‘surplus’ capital needed to support taking the risk, and any other expenses associated with retaining it.

Remember that all activities involve risk in some shape or form, and without risk-taking, nothing is possible. In quantifying risk and communicating the acceptable financial thresholds of risk to the Board, the entrepreneur can actually define the organisation’s appetite for risk.

Risk ratings and calculation

Let’s assume your company wishes to open an outlet in a particular area during the first quarter of the year and ensure that it breaks-even by the end of the year.

Your financial team should work out each risk element based on impact and probability. The next step would be to compare each risk against its position in the following matrix and plan the risk mitigation method accordingly.

Risks with rating as A are of critical importance. They are high impact/ high probability. These are your top priorities, and are risks that you must pay close attention to. The plan should be to closely monitor them and bring them to a lower risk rating if possible.

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Risks with rating as B are of high importance if they do occur. For these, you should do what you can to reduce the impact they’ll have if they do occur, and you should have contingency plans in place just in case they do.

Risks with rating as C are of moderate importance. If these things happen, you can cope with them and move on.

However, you should try to reduce the likelihood that they’ll occur.

Risks with rating as D are low and you can often ignore them. However, it is important to note these risks - they may have the potential to grow into something more serious.

Understanding risk

Once you have a clear picture of the nature and impact of the risks, you can review the business plan with the help of the rest of your finance team.

Brainstorming with the accountant, financial adviser, staff, suppliers and other interested parties, will help to get many different perspectives on the level and range of risks to your business. The main questions to be addressed are: • When, where, why and how are risks

likely to happen in your business?

• Are the risks internal or external?

• Who might be involved or affected if an incident happens?

Use flow charts, checklists and inspections to assess your work processes. Identify each step in your processes and think about the associated risks. Ask yourself what could prevent each step from happening and how that would affect the rest of the process.

The only thing constant in business is uncertainty. Thinking about the worst things that could happen to your business can help you deal with smaller risks. The worst case scenario could be the result of several risks happening at once. Depending on the nature your the business you can determine which events may adversely impact project teams and prevent them from achieving their strategic objectives. Employees should be trained to recognise and handle these events.

A few steps in effective risk management include • Examining different scenarios that may occur in your business.

Identify any events that could trigger undesirable occurrences. Once you identify your business risk, establish a contingency plan that defines the scope of the problem, when the plan should be put into action, the sequence of activities to take and who will accomplish each task.

• Break down possible risk sources to reveal why they may occur to establish the likelihood of each risk happening and the cost or impact if the issue did arise. Qualify risks in terms that apply to your business, such as a low, medium or high loss of production time.

• List common risks associated with conducting business in your industry.

Be prepared to identify preventative measures you can take to reduce risk from occurring or lessen the impact to acceptable level. Examine sample contingency plans and disaster recovery plan templates available from resources that include the Small Business Administration website.

For an online version, please visit: www.smeadvisor.com/2015/04/how-riskaverse-are-you/

The potential risks in the above scenario of opening an outlet would be: S No. Risk Impact Probability Risk Rating 1 Changes in law Moderate Possible C 2

Legal case against any management team member

Catastrophic

Rare

B

3

Grant not acquired to open the outlet

Severe

Unlikely

B

4 High employee turnover Major Almost certain A 5 Incorrect estimates of revenue Major Unlikely C 6

Health concerns for the employees

Minor

Possible

C

7

Bad publicity in the community

Catastrophic

Possible

A

8 Recession Moderate Possible C 9 Increase in competition Moderate Unlikely C 10 Introduction of new technology Trivial Unlikely D

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GROUND LEVEL

Unleash the power of LinkedIn HERE’S A STATISTIC TO SET THE SCENE FOR YOU: ONE OUT OF THREE PROFESSIONALS IN THE WORLD ARE ON LINKEDIN. THIS TRANSLATES INTO THOUSANDS OF CONVERSATIONS THAT CAN HELP YOUR BUSINESS GENERATE OPPORTUNITIES AND BUILD MEANINGFUL BRAND RELATIONSHIPS. EXPERT PRACTITIONER DARAIN FARAZ REVIEWS THE BRAND AGENDA AND HOW TO GO ABOUT THOSE FIRST PIONEERING STEPS…

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GROUND LEVEL

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GROUND LEVEL

LinkedIn presence is important for anyone wanting to grow their personal or corporate brand, as well as providing a solid platform for networking with peers, potential investors, partners, suppliers, vendors and more.

k at thceess: Let’s -loo step-by step pro At the top of the LinkedIn homepage is a tab labelled ‘Interests’; hovering over that will reveal a drop-down menu from which you can select ‘Companies’.

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Over the last few years, the conversation surrounding the presence of small businesses on LinkedIn has gained significant traction. This is simply because companies that create Company Pages on the site have access to more than 14 million users in the Middle East alone, and more than 347 million users worldwide. A LinkedIn Company Page allows businesses to establish themselves online with a strong presence, build up their credibility, connect with peers, prospects and new talent, while expanding their marketing reach.

It provides a solid opportunity for businesses to shape their brand and increase their reach through the vast possibilities LinkedIn offers.

How to get started…

Any company, no matter its size, can create a Company Page on LinkedIn if it meets the required criteria. These are simple; you (or the creator) must have a LinkedIn profile that is:

To the right of the Companies page is ‘Create a Company Page’, and by clicking on the ‘Create’ button you can follow the step-by-step process to establish your page.

• at least seven days old • registered in your real first and last name • demonstrating a profile strength of either ‘Intermediate’ or ‘All Star’ level You must also have several existing connections, and should be a current employee in the company you wish to create a page for; you will need to have a company e-mail address, with an e-mail domain unique to the company, in order to create the page.

If all the above criteria are met, then creating a Company Page is simple.

Servicing your account Of course, simply creating a Company Page is not enough; regular maintenance is required – and strongly recommended.

Management of a Company Page requires administrators to ensure all information is up to date and of a high professional standard throughout the page. Regularly posting relevant, targeted content will ensure your Company Page remains engaging and of interest to connections, followers and potential employees.

You should ensure that your Company Page is a solid representation of its corporate identity, brand and values. Each field should be filled to a high standard, including professional cover photographs, easy to find, relevant links and a strong company summary in the ‘About Us’ section. Keywords are important to remember, as they will ensure your page is easier to find by anyone searching for professionals in your specific field.

Products and services sold by your company should be clearly listed, with the most important of these listed prominently. Encouraging customers to leave product reviews will further boost your company’s credibility – so ask your clients to visit your page, connect with you, and leave their feedback on your services!

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GROUND LEVEL

LinkedIn allows professionals to connect with one another, and to build their personal brand. Small businesses in particular can benefit from the ability to connect with peers, potential partners, suppliers and more through LinkedIn, while they can also grow their presence through their network and group participation.

Darain Faraz, LinkedIn spokesperson

Targeting the right audience Tailored content that will appeal to the desired audience is the best way to ensure that the right people are reached. A good way to build presence on LinkedIn is to join groups that are relevant to your business and industry, or that can benefit from the services you provide.

Building up followers is dependent upon many factors – a) Creating and sharing engaging, interesting and informative content b) Being active on your page c) Using featured and targeted updates These are some basic steps that will ensure that you reach a higher proportion of your target audience.

Remember that quality is more important than quantity, and as mentioned earlier, Company Pages must be regularly maintained to ensure they stay relevant to gain and retain followers.

Local needs, global reach The recent launch of LinkedIn Arabic will provide a more localised service to professionals in the region.

This will open up opportunities for hundreds of millions of Arabic speaking professionals to connect and engage with other professionals and employers across the world, and for companies to find and attract the best talent, connect their brand with our audience, and engage with their customers. LinkedIn currently have more than 14 million members in the region, and with the addition of the Arabic version of the site it hopes to connect nearly 200 million professionals and students in the region with each other.

Strengthen your campaign with sponsored updates Sponsored updates are beneficial in several ways. They allow users to raise awareness of their brand through comprehensive targeting options; they nurture relationship-building by

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There are 2 new LinkedIn members per second

1.5

million Total number of LinkedIn Groups

65%

of B2B companies have acquired a customer through LinkedIn

Source: HubSpot, PowerFormula.net

sparking meaningful conversations with the right people, and they drive leads by allowing users to capture the attention of the most engaged people on LinkedIn, drawing qualified traffic right into the brand’s content. As a small business owner, you can use sponsored updates to ensure that the right people know about your company and what it offers. Sponsored updates also provide the opportunity for users to establish themselves as thought leaders, and stay connected with to their target audience.

Conclusion With LinkedIn, your small business can benefit from the ability to connect with peers, potential partners, suppliers, while growing its presence through its network and group participation.

Good luck!

For an online version, please visit: www.smeadvisor.com/2015/04/unleashthe-power-of-linkedin/

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Setting KPIs do it the right way!

Just like a car needs a dashboard to move in the right direction and stay in control, KPIs give a business owner an accurate picture of their company’s financial health.

This is especially important in today’s increasingly competitive business environment, where companies are striving for robust performance. The right implementation of KPIs from the very onset can help a business get ahead and achieve its longterm goals. We present a basic and practical guide…

Key performance indicators or KPIs are quantitative and qualitative measurements that help businesses ascertain performance and drive growth. Typically, they are set at the start of a business year and can be assigned to individual employees, departments or business verticals.

Understanding and implementing the right KPIs from the very onset of your business is very important. KPIs are instrumental in – a) Encouraging employees to stay

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b) c) d) e)

motivated and work hard to achieve targets Aligning the goals of each department to the overall objective of the company Ensuring that different departments within a business are in sync with each other Fostering a culture of communication and collaboration with a company Highlighting areas that need revitalising or improvement within the business

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While setting KPIs is a fairly straightforward process, there are eight key factors to bear in mind –

1

Map out all your business processes

Start by listing down all the business activities or processes involved in your company that help you generate revenue.

Right from getting an order to delivering the product or service, everything that comes in between. This will give you a clear understanding of every process that takes place within your business. Many companies use a simple flow chart diagram to represent these steps, which is effective, timely and visually appealing.

2

Assign duties to specific people

After you’ve identified the different processes, write down which staff member is responsible for each process.

This allows for a clear set of duties for every employee in the company. It also gives you a basic idea of what the KPIs need to be based on. Following this, pick out areas that you think aren’t doing as well as they should be doing and have potential to do better.

The KPIs you set should affect the bottom line of your business and take you one step closer to your business mission.

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3

Determine the KPIs

Remember to keep the KPIs short and simple; select the ones that are most critical to the success of the role. Ideally, there shouldn’t be more than three KPIs assigned to each individual. Very often there is a tendency look at all tasks as equally significant and include them in the list of KPIs. However,

doing this will simply make all tasks proportionately less important.

The KPIs you set should affect the bottom line of your business and take you one step closer to your business mission. While there is no predefined formula to decide the right KPIs for your business, regular review lets you analyse what’s working and what’s not.

4

Identify how to measure KPIs

Once the KPIs have been set, evaluate how they would be measured. Let’s look at the example of one specific department – the customer call centre of a computer store. You could measure performance of these department on the basis of: • The number of calls per day successfully answered • The time spent on each call • The ratio of solved customer complaints to pending customer complaints These are of course just a few ways to measure performance and any company should choose one according to its needs and goals. The challenge is to select something that will improve the overall condition of your business.

5

Set targets and deadlines

A well-known formula for setting targets is the ‘SMART’ analogy, which entails that targets should be: Specific, Measurable, Achievable, Realistic and Timely.

While measuring KPIs remember to ask yourself three key questions – • What’s the current position of your business?

• Where is it going?

• How is it going to get there?

Answering these questions will 29

GROUND LEVEL

help you gain better insights into goal-setting and assessing what needs to change in the future.

For instance, if your business isn’t moving in the intended direction, it means that KPIs and targets need to be revised. On the flip side, if your company is doing exceedingly well, it means that there is scope for growth and the KPIs and targets aren’t challenging enough.

6

Link KPIs to incentives

Identifying the right KPIs and linking them with incentives can work wonders for your business. These incentives could range from monetary benefits, profit sharing, awards for excellence, enrolment into a recognition programme, to additional training initiatives. By implementing such a system, you are now able to tie performance directly to employee incentives.

7

Involve your employees

Unless the KPIs are communicated well to the staff members within your company, they just remain to be metrics on paper. Ensure that your team is fully aware of the KPIs and understands what they entail. Provide necessary training or leadership coaching so that everyone is on the same page. In fact, many companies involve staff members in the KPI setting practice to ensure that everything is normal.

8

Be open to change

The reality is that change is a part and parcel of SME life and there’s no denying that when this organisational change actually comes about, it directly affects all departments from the entry level employee to top level management.

A great example of such change is

1

Select KPI

5

Keep or remove KPI

4

Report KPI

The 5 steps of the KPI life cycle

3

2

Approve and document KPI

the recent amendment in the law governing ‘End of service benefits’, which will surely impact the way your business rewards employees when they leave your company.

The implementation of a Change Management Plan – which highlights action steps in the case of such situations – can empower your business and prepare your employees to tackle any internal and external changes smoothly. This Plan should be available online for all staff and should be as detailed as possible.

This step, which is often overlooked

by HR professionals, provides your business a predictive ‘buffer’ against external change and ensures that it can be absorbed progressively without a catastrophic fall-out.

Key challenges…

On the surface, setting KPIs may seem like a straightforward process.

However, there are a few downsides and roadblocks to be wary of – a) Your senior management team might not be able to agree on the set of KPIs b) The KPIs set by the executive team aren’t communicated well to the next tier of staff c) There is no tangible way of measuring the KPIs or there isn’t sufficient data d) The targets that the KPIs are working to are either too challenging or not challenging enough Conclusion Finally, remember that KPIs are important tools that help you evaluate the ongoing status of your business, map the progress of a project and measure the success of a particular business activity. However, for KPIs to work they need to be actionable and achievable!

Gather and analyze data For an online version, please visit: www.smeadvisor.com/2015/04/settingkpis-do-it-the-right-way/

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BUSINESS BANKING

The start-up challenge At a time when everyone is talking about the latest accelerator programmes and the best places to brainstorm and incubate your business ideas, let’s not forget the most important issue of all: where is the money to start your business going to come from? Unless you have a remarkably high level of savings or wealthy family connections you’re going to have to answer that question headon. Senior Editor Paul Godfrey investigates the best options…

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BUSINESS BANKING

Every would-be entrepreneur, tired of the constraints and politics of corporate life, dreams of starting a business purely on his or her own terms and venturing - unfettered - into the unknown. Yet the reality is that in order to start a business, you will have to be prepared to entertain a number of compromises and be beholden to experts and financiers who have more knowledge, power and influence than you do. The vast majority of start-up entrepreneurs simply don’t have the financial resources to do things entirely their own way. Consider the following financial obligations you will have to meet • Paying for business licence and visa allocation • Paying for office accommodation: you will in all likelihood have to commit to a two-year contract and pay the first three months in advance - and if you favour a serviced office solution, bear in mind that with the majority of providers, even the entry-level suite may be much bigger than you need. Plus, you will have to make a substantial downpayment in advance.

• Connectivity costs - IT resource purchase and set-up • Plant and machinery - if you’re a manufacturer, this will be your single highest cost, and while you may be able to keep costs down by leasing equipment, this will also mean that you cannot re-finance it to release precious cash sums later on • Product development and production costs - which may be very high if you are in the manufacturing sector, print or media sectors • Staff salaries • Product collaterals and marketing materials • Database costs • Distribution costs How will you pay for these unavoidable expenses? Well, you may find socalled Angel investors or Crowdfunding specialists who can help you - but remember, every alternative has advantages and disadvantages, so

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any given one may not be available or attractive to you. For example, Angel investors will put great priority on factors like the quality of your business plan and your prior experience in building a company, or launching new products. What’s more, by definition, they will want to own a portion of the business equity and control for the funds they do provide. Will you have the ability and strength of purpose to deal with them? Will you be able to benefit from their wisdom while being thickskinned enough to deal with continual (perhaps daily) demands?

There are any different ways to fund a business; in fact, there are 10 key funding channels. One or more of these may be right for you. Remember, there are no absolutes here: you may have a good business or ‘cultural’ fit with a bank or investor, above and beyond merely the commercial figures, and find that this transcends any lack of experience that you have.

Conversely, you may have all the right paperwork but lack the personality or commitment that a funder might be looking for.

Spread the risk Before looking at the 10 channels in more detail, it’s vital to keep in mind the ‘golden rule’ that all successful entrepreneurs embody - as do leading banks, insurers and finance houses the world over. It’s this - spread the risk. Don’t put all your eggs in one basket. It’s much better to obtain smaller sums from a variety of sources that a multi-million dirham sum from only one investor. If for any reason, you cannot repay a smaller sum, it’s perfectly feasible that in a couple of months you’ll have the cashflow to move forward and make the repayment - with no harm done. Similarly, if this one investor wants to take your business in a direction that you feel isn’t suitable, you can always call a meeting of the other investors and compel the investor to follow the view of the majority. Consider how tricky both these scenarios would be with only one - very big - investor.

Here are the 10 key options to look at when seeking finance: A bank loan or credit-card line of credit Because banks need to safeguard the funds they hold on deposit, and by law, retain certain capital levels, it’s quite unusual for a bank to provide start-up finance - it’s simply too risky a proposition. There may, however, be exceptions: you may hold assets that you are willing to sign to the bank as guarantees. Or you may have an exceptional existing credit history, as a noted good customer, or a strong record of business banking.

You will find that the bank is your best option for funding when the business is a little more mature – for example, at the three-year stage, with a good trading history and audited accounts.

Then, you can approach the bank for quite significant sums that will be powerful catalysts in funding expansion plans and taking the business to the next level. Another factor worth bearing in mind is that the bank will not seek to be an investment partner and get any kind of control over the business: you simply repay the loan and walk away at the end. This is a real plus if you don’t like the idea of continual dialogue with investors whose road map for growth may be very different from the one you had in mind. On the other hand, the bank will have experienced advisors on hand if you do need additional input, again without any tie-in obligations.

There is another option, too. You will need to open a working bank account for your business transactions, and if you so do, you may be offered a business credit card. While this may have a relatively high credit limit which can be very helpful in fronting costs for suppliers, for example - banks are very wary of seeing business cards

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BUSINESS BANKING

pushed to the limit and used as a source of funding. Best advice here is to use the card as part of the working mechanisms of your business - never as start-up capital.

Also keep in mind that the bank will be able to work with you across key activities like providing letters of credit, trade credit insurance and other financial instruments such as cheque discounting. These will be powerful tools for releasing cashflow and will reduce dependence on loan facilities, although you may have to produce detailed records of your client transactions and the availability of these services may also depend on your industry sector.

Exchanging equity or services for start-up help This is most often called ‘bartering’ your skills - ie, exchanging something you have for something you need. For example, if you provide IT services, perhaps you could negotiate free office space by agreeing to support the premises owner’s computer systems.

Or perhaps you could exchange equity for professional services, if you’re a legal, accounting or HR firm. Not funding as such, but it lessens your costs and thereby the level of funding you will need.

Negotiate an advance from a strategic partner or customer Often the entrepreneur starts the business because he or she has received assurances from a client that they will break away from an existing relationship and become a customer of the new business. In this scenario, it’s often possible to reach an agreement whereby the client will recognize the need for support and will pay for services in advance. The ’catch’ here is that the business has to be up and running in order to attract the investment and service the client’s business - so you will need a further source of prior funding to do that.

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Join a start-up incubator or accelerator This is indeed the age of the SME incubator - names such as Impact Hub, Bureau Dubai and Y Combinator provide increasingly popular environments for the avid exchange of ideas and expert guidance from tried and tested entrepreneurs. But will this participation lead directly to funding? Not necessarily, but you’ll be introduced to clusters of investors and invited to pitch your concepts at open evenings. There may also be a ‘beauty parade’, whereby successful business contestants are rewarded with seed funding offers.

Moreover, the majority of incubator programmes are associated in some shape or form with major universities, community development organisations, or large multinational businesses, leading either to prestigious accreditations or major opportunities for commercial tenders. Another valuable aspect of these accelerator hubs is that in many cases they provide discounted office facilities and basic business infrastructure support.

Venture capital investors Venture capital firms are typically partnership clusters of professional investors, investing institutional money in qualified startups, usually with a proven business model. While they are much-talked about in discussions around business funding, in the GCC they typically don’t play a very significant role, outside of deal-broking between major established names (as opposed to the USA or the UK where there are dozens of hungry venture players working across diverse business portfolios). VCs, as they are known, typically look for big opportunities that need US$2-3 million or more, and are championed by a proven team. Note that the real role of a VC is to supercharge an existing business and fuel its development in a particular niche, often re-aligning its product offer, funding new product research and giving the capital to buy in top talent.

VCs also look for a strong exit model, which may require that the original business mutates (or even sells up) according to their guidance - so they can be challenging and frustrating entities for inexperienced entrepreneurs to deal with. They will also require a rock-solid and highly detailed business plan accompanied by up to three presentations to the investment committee.

Successful applicants for investment will be required to give at least one Boardroom seat to the VC - and this can mean continual input from highly knowledgeable partners who can supercharge business development in unexpected and sophisticated ways.

It’s best to see VCs as the source of secondary finance for a mature business looking for serious expansion capital.

They represent powerful but often rugged opportunities for development, but are best approached once you have an established C-suite of directors, rather than by an individual entrepreneur/owner.

Angel investors Almost every emirate in the UAE has groups of local high net worth individuals interested in supporting start-ups, and willing to invest amounts of up to AED 6 million for well-considered business ventures.

Angel investors are usually specialists in particular fields, and you will need to identify those in your own industry sector.

You can use online platforms to source them, or attend local networking events where they are speaking.

Of course, in return for their investment, they will want a presence on your Board - and remember they will be far more expert in finance and business strategy than you. So it’s important that you get along well personally, as well as having the right business plan. If you don’t, the failed relationship may cost you control of the business altogether.

Note too that in the Middle East, investors will be very concerned that you are generally of good character. Have you defaulted on previous investors? Do

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BUSINESS BANKING

you own your own property and send your children to a decent school? Have you got any kind of criminal record? Do you have any friends in common who can vouch for you? In the same way as a bank, they will also be looking for you to show commitment to your own ideas, and that means evidence that you have already made your own personal financial investment, before approaching them.

Start a crowdfunding campaign online This is arguably the newest source of funding, where you post your start-up concept on a dedicated online site, and aim to attract the eyes of a number of investors. The purest form of crowdfunding is where literally dozens of investors give you a contribution of a few thousand dollars (or less) each. The value of their stakeholding as your business grows is then calculated on an ongoing basis by a dedicated piece of software. People can also make online pledges to your startup or pre-order your products in bulk.

One of the potential pitfalls of crowdfunding is that it tends to be slanted towards sustainability drives or microfinancing initiatives. It tends to attract a younger demographic of investor, and this may not be ideal if your concept involves, eg, makeovers of country properties or opening a garage. Notwithstanding, this can be a terrifically quick way to raise funds with a minimum of bureaucracy.

Work with a governmentbacked SME initiative Both Dubai SME and The Khalifa Fund for Enterprise Development offer start-up funding opportunities for Emirati nationals, but not for expats. However, they can offer a wealth of business guidance, ranging from how to manage your HR, sourcing the best office accommodation and guidance on how to manage basic accounting requirements. They also have powerful outreach into the community, helping people turn domestic skills into businesses

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and organising literally hundreds of drop-in sessions, conferences and think-tanks.

You will also find that, like the accelerators and incubators, they are wellconnected to industry and academia, and can open many doors, not least of which may be golden tendering opportunities and introductions to potential investors.

Increasingly, they are playing a key role in developing public/private sector liaisons, in line with Government initiatives like the Abu Dhabi Economic Vision 2030 - although these will often be of more immediate relevance to developed businesses with a proven record in areas like governance and risk management.

Pitching your business plan to friends and family Not as desperate as it may sound. Even if you raise only a few thousand AED, extra sums can be useful and give you, for example, the equivalent of a couple of months’ rent. What’s more, professional investors will expect that you have already done your utmost to get commitments from this source, in order to show your credibility and commitment. After all, if your friends and family don’t take you seriously, how can anyone else be expected to? Statistically, this approach actually works: friends and family are the primary source of non-personal funds for early-stage start-ups.

Fund your start-up yourself Despite the costs of funding a business (as outlined above), the fact remains that, according to M.I.T., more than 90 per cent of start-ups are self-funded (self-funding is also known as ‘bootstrapping’). The best approach here is to set yourself the goal of a five-year savings plan, pulling together a sum, for example of AED500k or more (although keep in mind that without incoming revenue after the first six weeks or so, a sum of this kind won’t go very far).

The great advantage of this approach is that the business will totally belong to you and you won’t have to dilute your vision or your day to day control at all.

Consider the options carefully All of the above options have their plusses and minuses: the reality is that a business in its start-up phase may not have the time and resources to source a perfect, 360-degree solution - if indeed such a thing exists. It’s vital, though, to work with an option that you feel comfortable with and which gives you a balance between enough funding and a sense of still controlling your own destiny. SME Advisor spoke to a senior representative of National Bank of Abu Dhabi (NBAD), who commented that: “Most people feel a great sense of urgency when starting their own business, but it makes sense to do a much preparation as possible - and that includes not only investigating potential sources of funding, but thoroughly refining your business offer and understanding your market and core customer base. This will in itself enrich your proposition and make you far more credible for potential investors.

It’s important, too, that when you speak to likely investors, opt for those who respect your entrepreneurial values and aren’t looking for a quick exit - they should be able to work with you in an organic way and help you develop a successful enterprise, following an agreed timeline and strategy.

“Needless, to say, it’s imperative to get all understandings in writing and then include these as the appendix of the final contract. Another ‘must’ is not to overcommit to a strategy which you feel has high risk, or takes you too far out of your comfort zone. At the end of the day, you are starting the business in order to feel good about your life and business direction – ensure that your funders are part of the successful delivery of that plan and can work in partnership to deliver the financial essentials to underpin that smooth progress.”

For an online version, please visit: www.smeadvisor.com/2015/04/the-startup-challenge/

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//DIGITALLY DISRUPTIVE

Adding value to customer

wi-fi The changing behavioUr of digital customers means that wi-fi access is one of the most in-demand features for any business in the service and retail sectors. Here, we look at important aspects that would ensure that you and your customers reap maximum benefits from public wifi

You may be surprised to know that in a recent survey conducted by The World Council of Shopping Centres, assessing consumer preferences in 45 countries, wi-fi access actually ranks second in importance for customers of food and beverage outlets - and that’s ahead of other factors like price (only product quality is considered more important).

There’s no doubt that if you’re in the retail or service sectors, providing public wi-fi access has become an important part of your customer offer - in fact, worldwide, this is one of the defining trends in business economics. Providing wi-fi access is now a key part of your main service proposition. In fact, it’s central to the way customers perceive the value of your brand and its core identity.

The internet is no longer a ‘luxury’ offer - it’s become an expectation. According to research by www.emarketer.com, there are now more than three billion Internet users worldwide, accounting for 42.2 per cent of the world’s population. The vast availability of smart phone technology and

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portable devices means that this same expectation of Internet access is taken into almost every area of daily life.

Now - how can you add extra value to your wi-fi offer?

The first step is to see the wi-fi provision as part of your professional remit and to ensure that it’s offered in a way that’s not only commensurate with customer needs, but actually adds value to their experience when they visit your premises. Offering a wi-fi service to customers or guests means that your business is in fact a Public Internet Access Provider (PIAP), and this carries with it the opportunity to follow and exemplify a professional code and a set of ethical practices.

Next you’ll want to protect customers from any chance of internet abuse while they’re on your premises. For many wi-fi providers, it might be very difficult to have any awareness at all about how your customers are using the internet while they are enjoying your products and services. This is not only worrying in

Factfile

What is a PIAP?

• A Public Internet Access Provider • A business that provides free or paid Internet access to its customers • It can be a vendor, retailer, café, restaurant, professional services business or service provider

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//DIGITALLY DISRUPTIVE

The first step is to see the wi-fi provision as part of your professional remit and to ensure that it’s offered in a way that’s not only commensurate with customer needs, but actually adds value to their experience when they visit your premises.

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//DIGITALLY DISRUPTIVE

The changing dynamics of Internet usage not only open up a wealth of new opportunities for consumers and businesses, but create a new set of responsibilities, too. terms of the damage that could be done to the end-user who may be affected, but also because you wouldn’t want your business to be ‘caught in the middle’ and be held liable because it provided the environment in which the abuse was committed.

Of course, the vast majority of customers using public access wi-fi in establishments have typically remained anonymous - and at a time when so much of the world is concerned about security issues, this raises a critical public safety agenda. So now is a great opportunity for your business to ‘raise the bar’ and implement a proper wi-fi management system, giving the context and co-ordinates that can make all the difference when it comes to identifying any potential troublespots.

Creating a safe, compliant environment for customers If you’re a PIAP, the best option is to deploy a secure and managed solution which takes care of these vital issues.

It’s not a daunting task because you can easily outsource the responsibility and deploy the services of a telecoms provider who offers a managed, convenient and secure solution. What’s more, it’s a good idea to take action quickly, because in the UAE - since 1 December 2013 - new regulations from the Telecommunications Regulatory

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Authority (TRA) require PIAPs to implement PIAP enabled Wi-Fi service.

(In fact, the TRA says that those PIAPs who have not deployed the required PIAP enabled solution from a licensed operator - and who continue to provide public internet access to their customers - will be in an illegal position and may as a consequence be subject to legal action).

The style of managed solution that the law refers to is very simple and doesn’t impact customer enjoyment of your services at all. Typically, all it will require is an encryption protocol that asks customers to enter a registered mobile number - and with that simple action, there can be full awareness of who is doing what, and your own business is helped to indemnify itself against claims of negligence or neglect of public responsibility. Plus, putting this kind of solution in place, you are also protecting the interests of the public and other internet users. It also goes without saying that if you work with a licensed telecoms operator to put a system of this kind in place, it will be extremely secure and offer an extra level of reassurance to everyone using wi-fi on your premises.

Next steps (and you’ll boost customer USP, too!)

A licensed telecoms provider can do a short review of your requirements and help you implement a regulatory-

compliant service without any disruption to your business and its core offer.

The changing dynamics of Internet usage not only open up a wealth of new opportunities for consumers and businesses, but create a new set of responsibilities, too. Fortunately, in this case, the solution is fast and straightforward, and ensures that your own business contributes to a safe end-user environment - and at the same time, enriches its key offer and customer USP! For guidance on how to implement a managed and secure wi-fi solution for your customers, contact businesswifi@etisalat.ae

For an online version, please visit: www.smeadvisor.com/2015/04/addingvalue-to-customer-wi-fi/

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MOVERS & shakers

Creating value through conversations How can your brand start a conversation so powerful that it leaves a long lasting impression on your consumers’ minds? How do you become a movement company? Jon Duschinsky – the No. 1 branding guru – speaks exclusively to SME Advisor.

Jon Duschinsky

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MOVERS & shakers

Tell us about your company – The Conversation Farm. How did it come about? What was the inspiration behind it?

The Conversation Farm was born from the fusion of creativity from advertising and social innovation. In fact, we believe that we are the only agency in the world specialising in the creation of conversations – with one of the world’s leading social innovators and two of the world’s leading creative directors from advertising as its founders.

From my point of view, it came about because I was working in the NGO sector and I was getting a little frustrated at how NGOs were seeming to answer every question with ‘raise more money’. How does one cure cancer? One raises more money if one is an NGO. How does one alleviate homelessness? One raises more money. At the same time, I was conscious that we were living today in a world that is uber-connected and that is horizontal rather than vertical in the way that structures work and information flows. Raising more money to deliver programmes was a very old fashioned and perhaps quite ineffective way of trying to solve big social problems.

What I thought was more intelligent was trying to mobilise millions of people around an issue by getting them to think differently about the issue. By getting them to think differently about the issue, we could have the opportunity to influence their behaviours. And if you get enough people talking about something, you have the opportunity to put pressure on public policy makers, companies and various stakeholders in society that need to be involved in making social change.

So from my side, it was a desire to move from “raise more money to fund more programmes” to “mobilise more people to solve more problems”.

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Ray and Michael, my two business partners, come from the advertising side. They were also frustrated at how advertising was trying to solve every business problem with the same tools.

Great ideas can change the way we think and behave, and great ideas can mobilise and inspire. But these great ideas in advertising were being funnelled systematically through to a press ad, a 30 second advertising spot on TV, or social media campaign.

As such they felt their creativity was being limited.

We came together with the idea of using the creativity from some of the best minds in advertising to drive conversations and get people talking about and engaged in causes, issues, and social problems. We could also apply the same thinking to business problems, and that’s where we have encountered the most success. In order for businesses or brands to be relevant and exist in the zeitgeist today, you have to be worth talking about. You used to be able to advertise and tell people what to think, but you can’t advertise and tell people what to think anymore. The only way you can get your brand out there – really get it present in the minds of people – is by becoming worth talking about. In order to be worth talking about, we have to appeal to a broad cross-section of society. This means that brands have to be relevant to a vast swathe of audience, not just their customers but to everybody. For this, they need to do something that is relevant to everybody, and that is social good.

Social good is about the collective betterment of our lives, which is important to everyone.

What makes you so passionate about this subject?

I am a profound believer in social change. I believe that we have the capacity, talent, energy and creativity

to create a better world around us and a better world for those to come in future generations. If you are a charity organisation and you exist to solve a big social problem, you now have the tools through social mobilisation and conversation to connect with millions of people and to spread great ideas. As we have seen over the last three or four years, great ideas spread quickly. This means that people who spend their lives dedicated to trying to eradicate a disease, improve social justice, or to make marked measurable changes in the lives of the people around them or the environment, have tools and opportunities today that we couldn’t have even dreamed about five years ago.

I am passionate about this subject because there has never been a better time to make the world a better place. The way we do that is by understanding that making money and doing social good are two halves of the same whole. Today we improve the world not by throwing away our ability to make money and going off and chaining ourselves to trees. We improve the world by aligning the ability to generate financial returns with social returns, creating shared value.

Top You stress the need for businesses to shift their conversations to build powerful brands. Tell us more.

Let’s go back to the 1950s, where businesses created a product, put out an advertisement, and the company’s advertising budget dictated its success. The most successful companies were the ones that invested most heavily in advertising.

Today, we have many sophisticated ways of avoiding being messaged at.

As consumers, we don’t like being told what to do. a brand needs to find a new way of engaging with its

tip!

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MOVERS & shakers

audience that is not just focused on its own product and telling people how good it is. It needs to be able to generate something that’s going to make it worth talking about.

One of our key indicators of success, here at The Conversation Farm, is what we’ve termed as ‘CNN moment’.

Let’s say we were to put you on Al Jazeera, the CNN or any other major broadcasting network tomorrow and give you 30 seconds on primetime.

What would you, as a company, say that would be so powerful that at the end of the 30 seconds, the interviewer or news anchor has goose bumps and gives you another 15 seconds of unscripted time? During the extra unscripted time, someone is shouting in the ear of the interviewer to go to a commercial break, but they are so captivated by you because you are changing the way they look at the world. Those are the things that we talk about and share – amongst our friends and on social media. The things that we have conversations about are things that matter to us.

In order for a brand to be successful and powerful, it has to matter to us. It has to do something that benefits us all, not just the people who purchase the product or its shareholders – it has to do something in the sphere of social good. The companies that have understood this are seeing unprecedented growth. This is because they have made themselves worth talking about, stood for something, aligned themselves with values and clearly demonstrated those values to consumers. When a consumer is standing in front of two products knowing that company A makes a great product and company B stands for something that is meaningful to him/ her, the consumer is more likely to choose product B. Define a movement company.

What are the key characteristics

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of such an organisation?

There are good organisations out there today that tick all the boxes – they have good customer service, solid strategies, clear communication, clear product benefits, engaged staff and good leadership. What makes a movement company is that they give the world something to love about them. Movement companies are companies that have built an emotional connection between who they are and what they stand for.

How can small businesses, who are often struggling to survive with limited resources, make such an impact? What are easy ways for SMEs to create movements around their brand?

It is actually much easier for an SME to make an impact and create movements than a large company because there are fewer people involved, there is a more direct decision making process with shorter lead times.

Here’s what I’d like to recommend to SME owners – Create movement around your brand, you need to first work out what you stand for. Try to answer the following questions – Why do you get up in the morning? Why do you care? What should anybody care? Why should anyone talk about you?

These are fundamental questions that will help create a strategic positioning and an understanding of why you exist as a business beyond just making product – you are there for something bigger. It is that bigger thing that connects people internally.

Next, you need to look for an authentic expression of your strategic positioning. What can you own in the social good space that is authentic to what you stand for? Once you have identified the social good space that you can own authentically, you next need to create ways for people to

join and participate in it. It’s not good enough for the company to do something, you need to create ways for people to participate, share and feel ownership over it.

This might sound like a long and complicated process, but the truth is that you can do this from start to finish in less than nine months and it doesn’t cost a fortune to do. It is about thinking differently. When you look at how companies and SMEs advertise, they spend a lot of money into paying for advertising space.

Building a conversation requires almost no advertising space because you are worth talking about. What you do is allow people to talk about you by giving them the tools to talk about you, the tools to share what you are doing, and also the tools to participate in it so they feel some ownership over it, becoming ambassadors for your company and for your brand.

You’ve remarked that ‘businesses are not what they make, but what they are made of’. Can you explain further?

Companies today absolutely have to exist in the social sphere. In 1971, Milton Friedman essentially said the sole purpose of a company is to maximise revenue for its shareholders. Yes, that is very true, but it’s not just about following the almighty dollar. In order to be effective as a brand or company today, you need to make money, be a good social citizen and be sustainable – sustainable meaning you need to be transparent in the way you go about doing things. What that means is that you need to be present in the social space as much as you are present in the space of your business. People care less today about what products you make than what you represent. Consumers are more interested in what companies

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MOVERS & shakers

stand for than what it is that they actually produce.

We are seeing this in all sorts of industries. As the millennial generation arrives and the boomer generation retires, we are seeing a profound value shift in industries.

Companies like Chipotle and Panera Bread are growing. Why? Because they are more authentic and they are positioned around the values of local and organic, and these are the things that people want to resonate with today. People would rather go to a company that stands for something that they align their values with than a company that doesn’t.

Having worked with businesses across the world, do you think there is a set template for success? What are key ingredients that contribute to business success?

Yes, I do think there is a set template for success in today’s world. It is not binary and there is no such thing as one size fits all. Companies that put what they stand for and social good at the heart of their business model are the companies that are performing best in the world.

There was a recent analysis looking at the S&P 500 that looked at the companies that were embedding social good at the heart of their business model and companies that were not, and what both of their stock prices were doing. The companies with social good in their business models were outperforming the others by 30 per cent to 40 per cent. That is a huge difference – billions of dollars in stock value.

Another recent study that just came out of Stanford just showed that the single biggest driver in stock values over a three to five year period is reputation. One of the key drivers of reputation is social citizenship.

Social citizenship – what the

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company is doing to make the world a better place – is still seen by a lot of companies as being a fluffy, philanthropic, nice-to-have, onthe-side component. CEOs need to wake up and realise this is not just nice and fluffy, this is an absolutely integral part of the future of their business, and if they are not doing it now they will be behind the curve.

The world has ever moved so fast and it will never move this slowly again. If business owners are sitting complacent on the fact that they make good products and people buy them and they are doing nothing to make themselves worth talking about in the social space or to make themselves good corporate citizens, then they are at risk of becoming the next Kodak. I don’t know any CEO that wants to be responsible for sitting and presiding over the complete decimation of an industry or of a company. The world is moving so quickly, and if you are not on the train as its moving away from the station you will be left behind.

What advice will you give to small businesses who are looking to increase engagement levels with their customers?

Work out what you stand for and then make yourself worth talking about. Don’t try to do it on your own because it is very difficult to have an honest, objective opinion of oneself. You need someone who can hold up a mirror to you and tell you what they see. There are people, like The Conversation Farm, who are out there who can provide this service to companies. So if you are a small business and want to increase engagement levels, have somebody you respect from the outside help you work out what you stand for, what your mandate is in the social sphere, the in environmental sphere,

in the human sphere, as well as in the financial sphere, then find a way of expressing that to the world in a way that people can get involved in and join.

How can a business best identify and define its ‘values’?

We create something for our clients called the ‘one page manifesto’, which is an expression of what the company is, what it stands for, and what goal it is setting for itself in the social space. Every company needs a manifesto. It informs and drives the way that you communicate, what you do to get people talking about you, and unleashes an energy and passion within the company. Employees recognise when the company they work for stands for something they can articulate, talk about, share, and be proud of. Often this stuff in under the radar, people might feel proud to work at a company but they can’t really articulate why. Articulating why is the key piece. So it is not so much about identifying your ‘values’, it’s about identifying why you matter as a company and as a group of people, and what you are all doing that is bigger than all of you, and then giving people internally and externally that language they can then take forward and share with others and by doing that they get the opportunity to express their pride.

For an online version, please visit: www.smeadvisor.com/2015/04/creatingvalue-through-conversations/

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MOVERS & shakers

Entrepreneurial Niall Sallam and vision: the world of digital

From DIFC to JLT to Business Bay, Elevision’s digital screens are quickly gaining traction and disrupting the media landscape. In an exclusive interview with SME Advisor, Niall Sallam, Founder and CEO of Elevision Media, shares the recipe for this fast-paced growth‌

Niall Sallam, Founder and CEO of Elevision Media

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MOVERS & shakers

Elevision is an innovative idea in this region. Tell us about it and how it came about?

Launched in 2011, Elevision is essentially a digital media company with a specialisation in elevator broadcasting. So, we install, service and maintain a network of digital screens across premier commercial and residential towers in Dubai.

When I was back in Vancouver, I happened to come across similar digital screens in a building I was staying in. I remember being completely engaged by them – primarily because they gave me something to focus my attention on while waiting.

After returning to Dubai, I found myself intuitively looking up for a screen, but there wasn’t one. In that moment, it occurred to me that there was a gap in the market; there weren’t any media companies working in the field of elevator screens. I had my mind set on this concept and put in months of market research, business planning and due diligence, after which Elevision was launched.

How receptive has the market been to these digital screens?

I’m pleased to say that the response we’ve received so far has been absolutely tremendous. We operate 340 screens in 80 towers across Dubai and work with the likes of DIFC, Emaar, Dubai Properties, and so on. Last year, in particular, was fantastic for us; we enjoyed triple digit growth and expanded our team. We now have a total of ten people working within the Elevision team.

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MOVERS & shakers

In terms of functionality of the screens, it’s pretty simple and easy to use.

In fact, we give a lot of power to the advertisers and building managers to control their content.

Using a basic login portal, they are able to access the screens and update information on a daily or hourly-basis as they deem necessary.

Effectively tap into you

How would you describe your target demographic?

A large part of our viewership consists of affluent consumers, who are busy, tech-savvy, influential, onthe-move and have high disposable incomes.

What attracts property owners to the idea of digital screens?

What’s in it for them?

For property owners, these digital screens are a terrific asset.

They can use these screens as a telecommunication platform and stay in touch with tenants, residents and visitors. What’s more, they don’t have to pay anything for these screens – we install and service them at no cost.

We’ve created an online portal that makes things fairly easy for building managers, when it comes to content management. With 24/7 access to this portal, all they have to do is login using credentials, input the message they want to share and upload. This gives them an instantaneous medium of communication. It also reduces the need for paper memos for security or maintenance related updates.

How have you monetised this idea?

Our business model is based solely on advertising revenue; we sell space on the digital screens. For advertisers, this is a great way to reach out to consumers.

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Compared to traditional forms of media, what gives Elevision an edge?

Our digital screens work with realtime content – giving advertisers significant power to customise their messages. As I explained with our building managers, advertisers have similar access to our online portal.

They can alter what they want to say according to the time of the day or the demographic of the building.

We are the only company offering such a service in the region. These screens provide a huge advantage over a billboard on Sheikh Zayed Road, which is of course effective, but not as flexible. We are more than just an advertising avenue, we are a communication platform.

Repetitive messaging is another major advantage that advertisers get with our digital screens. On average, people working or residing in a building tend to use the elevator up to six times a day. Our medium can help a brand tell a story and reinforce its message.

How important is it to have a powerful content strategy in place?

Content is king, especially since we are targeting a large viewership. All our content is realtime and centrally managed at our offices. We have an in-house team that focuses on generating fresh, interesting and relevant material. The information that we share has to be appealing to our viewers, while still being aligned with the vision of our advertisers, so it’s a fine balance.

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MOVERS & shakers

ur social scenes

Our platform is flexible and helps advertisers deliver campaigns that are localised, packaged or configured across environments.

Did you know?

Elevision’s LED screen was installed in May and is the longest digital out of home (DOOH) space in the Middle East standing a total of 96 meters long and 1.3 meters high.

Our content is a mix of sports and business news, fun facts, quotes and so on. We use split screen technology which divides content into three main verticals: advertisements (this makes up 60 per cent of the space), news and entertainment and building information. The multi-purpose section could be live tweets from twitter or security, maintenance updates. In residential buildings, it is very often used for community-based messaging.

It’s also important to have timely content – for instance, during lunch time, we display lunch offers or during peak hours, we share traffic news.

We’ve recently entered into a content agreement with Bloomberg, wherein they will provide dynamic financial data and market-moving headline news to our outdoor LED digital display adjacent to the Dubai International Financial Centre (DIFC) Gate Building. The DIFC ticker is designed to deliver valuable content to Dubai’s financial hub and who better than Bloomberg to collaborate with for such content.

What were some of the challenges you had to face along the way?

The concept of digital screens in elevators is quite popular in countries like Canada, USA and Australia.

So, it is a well-established model.

However, bringing that concept to this part of the world and convincing property owners, advertisers and other partners of our value proposition and its potential was challenging.

But, we’ve come a long way since our inception and have successfully built strong relationships with all these stakeholders. A critical barrier is that of trust and we’ve managed to get

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past that, over the last few years. Our partners have seen our work and know that we are credible and capable of delivering what we promise.

In terms of reaching out to advertisers, agency negotiations at the start were very difficult. It took a lot of time and effort to develop those relationships.

What would you say are three major factors that have contributed to your fast paced growth?

This is a great question! I would identify them as follows – • Building a sustainable business model • Establishing strong, long-term relationships with advertisers and partners • Creating value for our viewers and enhancing their ‘elevator’ experience

Finally, how do you foresee future growth?

We hope to operate screens in another 80 towers this year. We want to double in size and growth. In terms of local and regional expansion, we are looking to move into Abu Dhabi in Q4, and have our eyes on the Saudi Arabia and Qatar markets in the long term.

For an online version, please visit: www.smeadvisor.com/2015/04/ entrepreneurial-niall-sallam/

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PERSONAL FINANCE

The APPEAL of Private Banking For both professionals and entrepreneurs, there comes a tipping point when all the work that’s done on behalf of the business has to translate into private success - wealth, for want of a better word. One of the benefits of material success is that it merits a more personalised and focused service from financial providers; indeed, for centuries, Private Banking and the raft of wealth management services have figured large in the list of rewards awaiting high net worth individuals.

Senior Editor Paul Godfrey investigates this elite world‌

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PERSONAL FINANCE

One of the factors characterising the world of wealth management is that it’s full of technical terms - all (perhaps!) carefully designed to exclude the financially unworthy. For example, the term ‘private banking;’ doesn’t refer to a privately-owned bank, which would be a non-incorporated banking institution, but rather to a generic class of services – eg, banking, investment and other financial services provided by banks to private individuals who enjoy high levels of income or investment capital. The term ‘private’ refers to customer service that’s on a much more tailored and personal basis than in typical retail banking.

In this world, customers (or should that be ‘clients’?) don’t have such items as ‘cheque books’; they have ‘folders’. They don’t have accounts; they have ‘portfolios’. The range of banking services provided include not only the more classic banking activities - deposit taking and payments but activities such as discretionary asset management, brokerage, limited tax advisory services and a collection of foreign exchange and fiduciary activities.

The role of the dedicated account manager is fundamental here: he or she will work with the client very closely and get to know the general style of service that’s required - often acting in a proactive way and guiding the client in wealth-creation techniques. A typical activity will be suggesting core investment strategies known to be to the client’s liking. Indeed, in classic discretionary asset management, the portfolio manager will make buy and sell decisions on behalf of the client’s account - and the term ‘discretionary’ refers to the fact

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PERSONAL FINANCE

It’s important not to confuse private banking with the wealth management services offered to retail banking clients, which are generally far less dependent on tailored knowledge of the individual, family commitments and performance expectations in particular market sectors.

that investment decisions are made at the portfolio manager’s discretion.

This means that the client must have full and total trust in the investment manager’s capabilities. Needless to say, discretionary asset management can only be offered by individuals with extensive experience in the investment industry and many investment managers will in fact have the professional qualification, Chartered Financial Analyst (CFA).

It’s important not to confuse private banking with the wealth management services offered to retail banking clients, which are generally far less dependent on tailored knowledge of the individual, family commitments and performance expectations in particular market sectors. Wealth management of this more general kind can be provided by large corporate entities or independent financial advisers, who may not necessarily require the CFA qualification, depending on jurisdiction.

Reversing the dynamic: changing the customer from debt to asset It’s often forgotten that when banking first started - in Paris and Venice in the 12th century AD - the model it followed was that of private banking. This was because working with the big aristocratic merchant families meant that there was the best possible chance of providing a wide range of banking products and services, over and above pure retail banking. Why not retail banking?

Because when the bank takes your money on deposit, it appears on the balance sheet as a debt, not an asset - because it’s money owed to you.

The quest is always to reverse that dynamic: and products such as loans and diversified asset portfolios are building the customer’s obligations to the bank.

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The word ‘private’ continued to designate the style of banking services offered to the rich, in contrast to the retail and savings banks aimed towards the needs of the new emerging middle class.

What’s my entry level to enjoy private banking?

The traditional entry level to qualify for ‘full-on’ private banking has required a personal liquidity level of at least US$3 million.

Notwithstanding, today, we see many banks customising the private banking concept and offering a range of services for liquidity levels of US$250,000 for private investors. This will generally provide access to services such as wealth management, savings, inheritance, and tax planning, but will not include a complete discretionary asset management model. One of the changes in the private banking market is that instead of an ‘all or nothing’ entry gateway, clients pay a set of fees, either based on the number of transactions, the annual portfolio performance or a ‘flatfee’, usually calculated as a yearly percentage of the total investment amount.

Private banking and the current economic climate Technological developments such as the Internet and mobile phones, along with the increasing globalisation of the economy, have led to a ‘destabilisation’ of the banks’ traditional markets. For example, the growth of the High Net Worth sector is low in some of the more traditional private banking markets like Europe - as compared to Asia where the number of millionaires has grown to in excess of five million. Moreover, these same technological developments have made sure that online banks

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PERSONAL FINANCE

Even if you have the requisite amounts of capital, private banking is not for everyone, since it requires a level of relationship-building that may BE superfluous to your needs.

can offer banking services without the conventional reliance on a network of offices. As a result, ‘private’ banking is increasingly defined as a privateaccess version of telephone banking, with 4G connectivity enabling 24/7 routes to account direction and utilisation.

Currently, the United States has one of the largest private banking systems, largely because it’s home to 3.6 million high net worth individuals, accounting for 28.6 per cent of the global high net worth population as of 2012 (figures from CapGemini).

Global trends show that people are increasingly opting either for US or Middle East private banks. This is because US banks are required by law to have a minimum 70 per cent US capital base, whereas European and SE Asian banks can attract up to 60 per cent of their capital from overseas, which some investors perceive as ultimately weakening the bank’s reserves. In the case of Middle Eastern private banks, while they may not be of the same scale as their international counterparts, they can typically have the highest liquidity levels in the world.

When do I know that private banking will be the best option for me?

Even if you have the requisite amounts of capital, private banking is not for everyone, since it requires a level of relationship-building that may superfluous to your needs. It’s a good solution for you if • You have a number of quite complex overseas investments that require frequent monitoring and management • You are interested in medium and long-term wealth accrual, building security for future family generations • You have a need for inheritance

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planning that can deal with a variety of estates and timings • You have exposure in overseas tax regimes and need advice on offshore residency and financial transfer • You are building a new investment strategy and require hands-on portfolio management on a daily basis • You are creating Trust funds and Trust contracts for dependents • You want regular access to highly skilled financial advisors, who are equally fluent in areas such as insurance, arbitrage arrangements and tax liability structuring • You want to build solid firewalls between business dealings and family assets • You are planning to live overseas for an extended period and need advice on the financial advantages of renting versus buying a property - as well as guidance on overseas tax-efficiency requirements and obligations Keep in mind too that for many entrepreneurs, accruing wealth is in the ‘thrill of the chase’ - they are not preoccupied with the subject of money as such and may not therefore be interested in an arrangement that encourages bespoke discussion about assets, earnings and shortfalls. If you are, then there is still no better solution than private banking.

For an online version, please visit: www.smeadvisor.com/2015/04/the-powerof-private-banking/

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THE NEXT LEVEL

The power of people Human Resource Management

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the next level

A CRITICAL FACTOR THAT CONTRIBUTES TO THE SUCCESS OF AN SME IS THE PROPER MANAGEMENT OF ITS HUMAN RESOURCES. HOW CAN SMEs OPTIMISE THE PERFORMANCE OF THEIR TALENT, PARTICULARLY AS THEY TRANSITION INTO MORE EVOLVED STAGES OF BUSINESS? NOTED INDUSTRY COMMENTATOR DR. ASHRAF MAHATE, HEAD OF EXPORT MARKET INTELLIGENCE, DUBAI EXPORTS, SHARES INSIGHTS…

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The traditional textbook representation of a firm is that it is the coming together of land, labour and capital (which includes machinery technology etc.). To a large extent this is true as any company will need all three to carry out its operations, irrespective of whether it is a real or a virtual operation. Of these three factors land and capital are perhaps the easiest to manage as they can be acquired and put together. More important but highly challenging is labour – there is a need to retain the right people, ensure their optimal performance and meet all their demands. In large organisations, this is less so a problem because as a firm grows in size so does its level of management. In other words, layers of management are developed in order to manage and direct labour. The increased size also leads to a greater demand for specific human resource management (HRM) practices such as annual performance appraisals, career development etc. With such developments, large organisations invariably develop more professional HRM practices. On the other hand, SMEs due to their smaller size take a more informal approach and hence tend to have less professional HRM practices. To a certain extent this is due to the fact that employees in smaller firms often have to perform a greater variety of tasks than those in larger firms, and more often than not performing multiple roles tends to be the norm in SMEs. Although SMEs lack sophisticated professional practices, their informal nature and fairly compact size implies that they are less affected by the need to align staff with the interest of the owner as they usually tend to be part of the same family. In formal language, there appears to less of an agency problem. That is a divergence of interests between owners and employees because they usually tend to be the same. Therefore, with less of an agency problem there is also a corresponding lower level of employee

monitoring. Such arguments have been excessively used by family-owned SMEs in order not to have a formal HRM function. However, the reality is that family relationships within the firm are a double edged sword and can also pose the problem of dealing with those who do not perform well.

The close family connection usually implies that the maintenance of family relationships take priority over the need to take any corrective action. The lack of action tends to have a contagion impact on other employees. Then there is the issue of employee morale and satisfaction that as non-family members of the owner, they will reach their glass ceiling and will not stop progressing within the firm. Of course a professional HRM function may not be able to deal with all the SME’s problems in one-go but it will ensure that major issues such as staff morale, training, selection recruitment, performance monitoring etc., are dealt with in an effective and legally compliant manner. More importantly, for family-owned SMEs, it equates the treatment of family and non-family members.

The question then arises: Should an SME incur the additional cost and burden of establishing formal or professional practices especially if the business has survived for so long without it? To answer this question one needs to take a broader view and look at the risks facing SMEs. In developed countries, one of the biggest threats facing SMEs is complaints by employees which end up in employment tribunals or courts. With the threat of uncapped compensation for employees as well as a possible prison sentence for the owner, the legislative risk ensures HR compliance

by SMEs. More day-to-day and far reaching risk is the ability to attract and retain talented staff. For SMEs to gain competitive advantage in the domestic and foreign markets, they need to ensure that they have staff who can add value to the organisation.

However, such staff also have

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THE NEXT LEVEL

higher level of demands due to their greater marketability. Then there is that growth itself is a risk in that if not carried out in a well-managed manner can itself be a risk to the organisation. Therefore, in every SME’s growth cycle there comes a time when they need to move away from informal HRM practices to a more professional system.

At the superficial level having a dedicated function may seem like an unnecessary cost but the reality is that it can generate a positive return on investment. A professional HRM function has the ability to positively manage staff so as to avoid the damage caused from bad people management.

Similarly, poorly managed people leave the organisation and can create a negative reputation for the firm with clients and potential recruits as well as the existing workforce. There is evidence to suggest that having good HRM practices in place makes good business sense as well as increasing profits by as much as 30 per cent according to various academic studies.

If professional HRM practices are to be implemented by SMEs then they have to be conducted in a strategic manner rather than simply giving the task to someone at random.

So what choices does a resource constrained SME have when it comes to implementing professional HRM systems? The first and perhaps the easiest is the automation of as many of the processes as possible so as to ensure consistency while also reducing the cost of their provision. For instance, in recent years more and more SMEs are using online recruitment systems which give them access to a wider pool of talent while reducing the cost of managing the applications. Similarly, new HRM software is available at very reasonable cost which allows SMEs to implement automated systems such as appraisals without the need for both the employee and manager to spend vast amounts of time or generate considerable paperwork.

Another important and effective method is to outsource the whole

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HRM function to a third party so that the SME can focus on its core activities. The experience of business process outsourcing (BPO) has shown that that it can generate considerable savings for the firm while ensuring that required tasks are performed by companies who specialists in the area. Of course there are also other benefits to outsourcing the HRM function other than costs such as compliance with legislation and shifting this responsibility to a third party; access to experts, improved service and quality, improvement in employee satisfaction as well as morale amongst others. The disadvantage of an outsourced HRM function is that it may not understand the corporate culture and may not be convenient for employees. However, in today’s highly technology advanced world an outsourced HRM function need not be further than a telephone call or an e-mail. In fact, some outsourced HRM companies have regular on-site sessions so that staff have a regular human face with whom to deal with.

Whether an SME establishes its own HRM function or uses the services of an outsource company, it needs to ensure that it is effective and compliant with legal requirements. More importantly, the SME needs to review the HRM function in conjunction with its business strategy. Just as the firm develops new products and carries out process innovation the same should be true for its HRM function.

At the end of the day the HRM function is looking after the most important assets of the firm namely its employees. If the SME truly believes this then the HRM function should be a priority.

Meet the author...

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.smeadvisor.com/2015/04/thepower-of-the-people/

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presents

BUSINESS INTELLIGENCE FOR INTERNATIONAL TRADE www.tradeandexportme.com

Contents

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

International Trade 60 TRADE AND EXPORT: IMPACT OF LOWER PRICES How will you cope in this new economic climate?

New Frontiers: Oman 64 From theory to practice SME Advisor together with Presenting Partner NBAD, hosted two VIP round table discussions assessing the flourishing Omani SME scene. We bring you highlights of the event.

Trade & Growth 68 Doing trade with Belgium HE Dominique Mineur, Ambassador of the Kingdom of Belgium in the UAE, shares compelling insights.

Belgium is a sound destination for investments, with an attractive business and fiscal environment. p68

TRADE AND EXPORT MIDDLE EAST

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The 2030 Vision is already proving to be a key catalyst in encouraging full and proper integration between public and private sectors p80

VIP Interview 72 Flying high RamJet Aviation, a thriving SME based at the world-class RAK Free Trade Zone, shares its success story.

Legal 76 Intellectual property considerations in Saudi Arabia Legal experts from Clyde & Co. discuss key issues regarding IP rights in the largest economy in the Arab world.

Event review 80 A day marked in history ‘Masterclass – the Abu Dhabi Economic Vision 2030’ brought together an extraordinary cluster of world-class economists, captains of industry and key Government decision-makers. SME Advisor presents you exclusive highlights…

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

Ramy Jallad Acting CEO, Ras Al Khaimah Free Trade Zone

For more information, please visit www.tradeandexportme.com

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INTERNATIONAL TRADE

Trade and Export: The impact of lower oil prices

Always the biggest economics and trade news story, it’s a truism that the fall in oil price has considerable implications for businesses relying heavily on trade operations. What are the factors now confronting your SME? We explore the issues and opportunities‌

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INTERNATIONAL TRADE

Last June, the world - and many of the oil-producing nations of the Middle East - reeled under the shock of falling oil prices driven by over-supply and a more powerful US dollar. This ‘oily’ predicament has posed significant challenges to GCC markets, where for the first time in more than a decade, revenues are endangered by the new fact of life that the wholesale price may be dangerously close to the base production cost.

With the historic dependence on commodity exports, the new realities reflect how vital it is to foster economies away from total dependence on commodities. The UAE, for example, has always been quick to realise that focusing on diversifying economies will help to ensure sustainable economic growth and stability - but while many near-neighbours may share the vision, in practical terms the diversification is far from realised and they are now ‘feeling the pinch’.

Notwithstanding, in many cases the challenge is that government spending plans were planned for a longer-term view, and they are not necessarily unsustainable.

Ambitious plans for investment and infrastructure building across the region aims to stimulate growth in the medium term, and could also raise long-term productivity.

UAE not affected much…

It’s easy to pay lip-service to the views of trade pundits and industry experts who state that the impact of the price drop on Gulf countries will be not be monumental due to the massive fiscal reserves in the region. Yet in reality this tends to be more of a comment about the UAE and KSA than it does about the fossil fuel producers as a whole.

Let’s take the UAE, for example: a recent analysis by EY showed that domestic mergers and

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INTERNATIONAL TRADE

Lower oil prices are expected have a multidirectional effect - while they will lead to contraction in the oilrelated sector, they will have a positive boost in retail, tourism and the transportation sectors.

acquisitions deals in the UAE account for 45.7 per cent of the total number of M&A deals in the Middle East, making it the leading country in the region. According to the analysis, as many as 50 acquisitions targeting UAE based companies were announced last year. As an acquirer, the UAE accounted for 53 deals or 23 per cent of announced deals in the region, while in value terms the country led the region with 46.4 per cent of deals worth US$7.19bn.

The UAE dominated as the target country with the largest number and value of inbound mergers and acquisitions deals in MENA which points to the strong confidence of international investors in the UAE. The UAE’s Purchasing Manager’s Index (PMI) for January showed strong improvement in business, indicating that the non-oil private sector continued to grow despite sharp decline in oil prices.

Last year the economy of the UAE grew by more than four per cent. While this year it may be slowed by lower oil prices, economists say the part of the country’s GDP that is not heavily dependent on hydrocarbons to make money will still flourish, including transport and tourism.

Dubai’s economy is much more diversified than others in the Arabian Gulf. Lower oil prices are expected have a multidirectional effect - while they will lead to contraction in the oil-related sector, they will have a positive boost in retail, tourism and the transportation sectors.

The ambivalent economy The oil crisis has resulted in increased debt defaults, rising interest rates, rising unemployment, increased recession, defaults on derivatives, drop in stock market prices and many more economic tragedies.

Economic confidence is prompting organisations to focus on growth and many are turning to their

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finance departments to not only crunch the numbers but also devise strategy on finding new sources of revenue generation.

Commercially-savvy accountants who can provide financial principles to operations, IT, sales and marketing departments are well positioned to help steer their organisations towards greater economic prosperity.

Fast growth is easier to achieve in sectors driven by innovation, and launching new products or services can drive considerable growth quickly. But under such precarious market conditions, businesses should opt for gradual, organic growth that is more manageable and involves less risk.

Rigorous cost management and a disciplined drive for operational efficiencies help fuel that profitability. But even as SMEs continue to drive the next iteration of cost take-out, to maximise revenue growth they also need to keep strategic reinvestment in the business on the table. That may require a shift in cash-allocation strategies. For example, strategic capital spending and market expansion may be needed in lieu of returning cash to shareholders or dipping into cash reserves to pay down debt.

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INTERNATIONAL TRADE

A key to successful transformation will be finding the right balance between global and local operations that support the growth agenda.

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Expanding in troubled times Before thinking about expanding the business, your SME must first have a stable platform from which to take off. As an SME owner, you have to iron out the creases in initial operation, including making it profitable. Becoming personally involved in all the functions of your business is the first prerogative.

Then you can detect weaknesses that can be remedied and changes can be made rapidly and at less exposure to loss.

A key to successful transformation will be finding the right balance between global and local operations that support the growth agenda.

Your company should consider a globally integrated operating model that pulls back- and middleoffice functions into a single organisation agile enough to react swiftly in today’s volatile markets.

Several businesses are progressing rapidly toward such an integrated structure. Their efforts show that changing the operating model to balance local and global requires close collaboration between a business and its expanded ecosystem of peers, customers and suppliers.

New markets can mean new compliance requirements. You may need to ensure that your organisation is agile enough to respond to more complex government regulations, including management of the evolving International Financial Reporting Standards as well as mounting pressure to fulfil environmental and labour obligations across multiple geographies.

Your business will also need to understand supply-and-demand forces more accurately if they are to drive the best possible business outcomes. Analytics can help them keep pace with the increasing volume and velocity of data as business goes digital. Analytics can also give them real-time, in-quarter insights into customer trends and preferences.

Expanding your business means you will be taking on more risk.

Once you have made it and are ready for growth, you will become exposed to new dimensions of risk.

And the only way to avoid risk is not to make mistakes. This is where a Board of Advisors becomes an important participant in the growth programme, and this means enticing the best brains - both in the business and outside it - to form an advisory panel that will become a cost-free insurance policy against making mistakes.

Despite cost pressures, you may want to boost your investment in digital technologies - or risk being left behind. Retail and consumer electronics are leading the way in leveraging cloud computing, mobile technologies and social media to deliver the personalisation that their digitally empowered customers now demand.

The ‘Golden Rule’ still applies…

The golden rule of running a business is get up and get going come hell or high water. With strong survival instincts, you can steer your company to rise above the current oil spill and float on stable waters.

For an online version, please visit: www.tradeandexportme.com/2015/04/theimpact-of-lower-oil-prices/

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NEW FRONTIERS: OMAN

From theory to practice OMAN’S COMMITMENT TO BUILDING A DIVERSIFIED ECONOMY THROUGH ENTREPRENEURSHIP AND THE ROLE OF THE SME IS ONE OF THE MOST SOPHISTICATED ECONOMIC VISIONS IN THE REGION. TWO VIP ROUND TABLE EVENTS IN APRIL, LED BY PRESENTING PARTNER NBAD, DEMONSTRATED HOW AMBITIOUS THAT ASPIRATION REALLY IS AND CREATED AN AGENDA THAT BUILDS A HIGHLY PRACTICAL BRIDGE WITH THE REALITIES FACING SMEs

On 1st August 2014, the Central Bank of Oman published an extremely comprehensive White Paper report assessing the future of SMEs in Oman and the best and most feasible strategies for delivering that future vision. Titled ‘Towards a Growing, Competitive and Dynamic SME Sector in Oman’, it highlighted four key industries as the priority areas of focus, namely • Transport and Infrastructure • Manufacturing • Healthcare • Tourism The White Paper then identified some of the major issues which, it believed, would need to be addressed by SMEs in these sectors as they played a paramount role in diversifying the economy away from fossil fuels. This ‘six pillar’ approach is best defined as • The quest to turn your business into a successful and competitive local brand • The need to overcome key infrastructure hurdles • Closing the cashflow and deliverables gap • Capitalising effectively on public/ private sector partnerships • Gathering market intelligence and all-important customer data • Becoming a master of marketing - and building ‘ownership’ of your customer niche These crucial topics - and the strategic recommendations of the White Paper itself - were the

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During the panel session

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NEW FRONTIERS: OMAN

The discussion highlighted key insights on the Omani SME sector

The event incorporated a fantastic networking opportunity

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inspiration for launching a series of events in Oman, created by the partnership of presenting partner National Bank of Abu Dhabi (NBAD) and SME Advisor magazine. The umbrella brand of the events is ‘The Dynamics of Entrepreneurship’, and the series began on April 1st, with a day dedicated to round table panel discussions. There were two panels - one attended by the public sector and one by the private sector. In both cases, the panellists were figures widely regarded as key thought leaders in the SME and entrepreneurship space (please see complete roll-call of panellists below).

Both panels took place in the Intercontinental Hotel, Muscat, and were ‘closed’ sessions, encouraging a very direct and animated style of interaction with real significance in moving the SME and entrepreneurship agendas forward.

The essential debates and dialogues of the day focused on delivering opportunities in the four keynote sectors and spelling out how best entrepreneurs can manifest the required changes and turn them into commercial success.

Oman as a new hub of entrepreneurship It is arguable that Oman is now one of the most critical arenas of debate in the SME space, representing the choices and prerogatives that characterise the region as a whole.

It’s the fulcrum with the purest template of change from traditional business to vibrant, powerful economic growth - a growth empowered largely by the role of the SME. Yet - significantly - it’s also the nation where the gap between dialogue and practice is at its widest, with a very elevated and informed programme of recommendations from Government and public sector,

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It is arguable that Oman is now one of the most critical arenas of debate in the SME space, representing the choices and prerogatives that characterise the region as a whole.

but an SME profile that is predominantly at the level of micro businesses. So, the question is how to close this gap and boost scale and performance by advising companies how to • Compete with international brands by pulling together a comprehensive understanding of the marketing essentials • Build the right infrastructure networks to bring a business to its public - embracing the priorities of distribution, packaging and retail relationships • Avail themselves of links with the public sector - ensuring the right quality benchmarks are in place and being able to win competitive tenders, secure in the knowledge that issues like Governance and risk management are properly in hand Two panels - and eight key verticals that surprised the industry The two panels were Moderated

by Paul Godfrey, Senior Editor, SME Advisor and the interaction between the panellists - who were chosen to reflect a very balanced snapshot of the SME environment - led to an emphasis on topics that were not only surprising, but which very few pundits could possibly have predicted.

In the public sector panel, the key verticals emerged as – • The need for actual management training, not entrepreneurship grooming as such. There was perceived to be a real lack of business and people management skills in the SME sector, along with a basic shortfall in pure business ‘know-how’. The panel believed this should be addressed at the secondary school level, thereby creating practicallyminded managers and business people.

• The fact that the notion of ‘entrepreneurship’ actually didn’t mean anything in reality, and that teaching skills of this

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kind was too nebulous to serve a useful purpose. Instead, it was felt that entrepreneurship was relative and related to particular industry sectors - i.e., being an entrepreneur in the manufacturing space required very different skills from entrepreneurship in e-commerce.

So again, good entrepreneurship really required very focused vocational skillsets.

• The way that setting up a business was so often derailed or slowed down by labour registration categories that had only the most ‘ad hoc’ fit to business realities. In fact, one of the panellists had her business so dramatically slowed up by having new staff registrations rejected that she had to close the business for a month.

• The need for tendering procedures to be more widely publicised and SMEs made more aware of what the winning application would require.

Several panellists believed that many SMEs fell wildly short of the typical skillsets required to work with big public organisations – and that there was a need for very specific upskilling. Indeed, it was felt that to begin with, there were not

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NEW FRONTIERS: OMAN

enough opportunities for public/ private sector partnership, and that this would be a critical tool of economic diversification.

the public sector has the power and energy to keep on leading the changes, not only with its cluster of visionary documents and White Papers, but with substantive business legislation.

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For the private sector panel, the main verticals were identified as – • The challenge of creating more transparent working practices and making audited accounts a feasible norm, even within family businesses and those which felt they were too small to be ‘on the radar’.

• Recruitment issues - finding qualified people in practical areas such as electronics, welding, and engineering assembly. There were simply too many people with computer-based skills and not enough to execute the actual working activities of many types of business. Moreover, the Omanisation initiatives, with their high salary thresholds, were not always encouraging Omanis to come into the private sector and were leaving many industries - perhaps dangerously - in the hands of expats, with little hope of change.

• Differentiation challenges. Very few Omani businesses had been able to build a successful and renowned brand, because they were simply not very adept at distinguishing themselves from so much of the competition.

This was one reason why the likes of Starbucks has no locallysourced competitors - which as seen as a basic flaw in the way that marketing skills are taught, and also a key factor as to why so many SMEs remained at the micro level.

• The size/growth factor. How could micro businesses possibly pay a meaningful role in working with the public sector, or become the ‘tiger’ businesses of the Omani economy? Business owners and directors were not being given the right tools to improve their business and its propensity for growth. This was seen as

one of the factors addressed so successfully in economies such as Singapore and Malaysia.

Different perspectives, different voices Above all, the panel sessions showed that so often, SMEs are frustrated by the harsh realities of day to day business life, and find it hard to listen to the more optimistic messages coming from the public sector. This was even apparent in the style of dialogue generated around the table - very animated, speedy and forceful in the public sector session, more gritty and concerned in the private sector exchanges. This may result from the fact that Oman is a relative newcomer to the needs of economic diversification, and that in the near future we may see a keener and more attentive private sector, in the manner of Dubai, for example, with its 20-year dedication to a diversified agenda.

Make no mistake, though, that the public sector has the power and energy to keep on leading the changes, not only with its cluster of visionary documents and White Papers, but with substantive business legislation. This level of aspiration is so strong that on several occasions during the day, public sector panellists rejected the dominance of the SE Asian role model, asking if there was any reason why Oman could not become, in the years ahead, its own global model for SME excellence and entrepreneurship.

For an online version, please visit: www.tradeandexportme.com/2015/04/ from-theory-to-practice-oman/

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TRADE & GROWTH

Country focus:

Doing trade with Belgium Home to the EU headquarters, Belgium is a prolific trading nation that has created a niche for itself in the global marketplace. Its advanced transportation systems and central location within the European continent are strategic advantages that have contributed significantly to the country’s growth and overall development.

SME Advisor speaks to the honourable HE Dominique Mineur, Ambassador of the Kingdom of Belgium in the UAE, who offers compelling insights…

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Over the years, Belgium has evolved as a key economic and political hub.

With strong trade ties with several major countries across the world, the nation has become a hotspot for business opportunities. The UAE, in particular, has maintained a long standing relationship with Belgium, working together for several years.

Across their politics, constitution and economy, the two nations have similarities that run deep.

According to HE Dominique Mineur, Ambassador of the Kingdom of Belgium in the UAE,

this is one of the main reasons behind the solid relations between the two countries. She believes that there are similarities across the board, with both economies based on openness to trade and serving as regional trade and transport hubs. Belgium’s population stands at 11 million, with the UAE at just over nine million. While the soaring desert heat may be in contrast to the Euro-hub’s often damp skies, economy-wise the two nations are very close. Belgium’s most recent GDP figures stood at

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TRADE & GROWTH

over 500 billion USD, versus its Middle East counterpart at around 400 billion USD. Looking back…

The countries’ relationship, which spans back to the seventies, began to develop rapidly following the UAE’s independence. The first Ambassador of Belgium to the UAE was sent in 1978. HE Mineur says, “At that time, the Belgian Government felt it was important to have a presence in the Gulf nation. We recognised the similarities in our systems and saw

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mutual opportunities for bilateral relations across specific priority sectors.” Ever since, the bilateral economic relationship has yielded some impressive results in the import and export of precious metals and stone, machinery equipment, as well as base metals.

Fostering trade ties “During the first nine months of 2014, Belgian exports to UAE saw an increase of 18 per cent, compared to the same period in 2013, and mounted to 2.6 billion

Euro which represents 33 per cent of total Belgian exports to Arab countries. Consequently, the UAE is the primary economic partner of Belgium in the Arab world.

“On the other hand, when we compare relations of Belgium and other European countries with the Arab world, we can see that Belgium is by far the leading partner per capita,” HE Mineur adds. Belgium’s exchanges per capita in the Arab world for 2013 were 1,757 Euro versus the second ranking nation France at 824 Euro.

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Belgium is a sound destination for investments, thanks to an attractive business and fiscal environment, and given its designation as Europe’s political heart.

HE Dominique Mineur, Ambassador of the Kingdom of Belgium in the UAE

With Belgium’s second biggest city - also the second largest petro-chemicals cluster in the world - the port of Antwerp is a major gateway in north and west Europe. Similarly, Dubai is the main maritime transport hub for the Middle Eastern market, and a major link between Asia and Europe.

“The Port of Antwerp, along with the Ports of Zeebrugge, Gent and Liège, as well as high quality transport infrastructures make Belgium the best connected country in Europe and the most desirable location for logistics in Europe,” explains Ambassador Mineur. She cites the largest marine terminal and port operator in the Middle East, DP World, with its UAE portfolio including the flagship Jebel Ali Port, as a major investor in Antwerp and Liege.

Belgium is a sound destination for investments, thanks to an attractive business and fiscal environment, and given its designation as Europe’s political heart. With its central geographical location, its welldeveloped transportation network and multicultural workforce, many companies choose Belgium as their gateway to the European market.

Belgium has also been a key supplier to the Gulf construction sector. Its customers’ projects include many iconic buildings such as the Emirates Palace in Abu Dhabi and the Burj Khalifa in Dubai (a joint venture with two other companies). Belgian dredging companies were utilised for heavy land recovery works for land reclamation projects, including the Palm Jumeirah and the artificial islands for Abu Dhabi’s offshore oilfields, SARB. Future opportunities HE Mineur points out that the two nations are looking at

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opportunities to work more closely in the future, particularly in areas of sustainable technologies and healthcare. Belgium has been at the forefront of Europe’s ambition to develop healthcare and green energy technologies, while the UAE also has ambitious projects planned in these areas. “There are many opportunities in this sector: development of solar technologies, wind farms and energy-efficient buildings,” she adds.

In the World Economic Forum’s competitiveness report, Belgium consistently ranks in the top three nations for healthcare. The demand for modern hospitals and specialist medical equipment and services is expected to rise exponentially in the GCC and the UAE in particular, in the near future. Some estimates show that by 2050, the GCC will require an additional 140,000 hospital beds, and the associated high-tech medical equipment.

Considering the UAE’s healthcare needs and its ambition to provide high quality care for its population, the two countries see potential for further development within this sector.

Ties between the two nations go beyond commerce, with cultural activities connecting both societies.

The Queen Elisabeth Musical College has a cooperation agreement with the Abu Dhabi Music and Arts Foundation. Belgium’s operatic and music talent also frequently appear in prestigious performing arts venues across the Emirates.

For an online version, please visit: www.tradeandexportme.com/2015/04/ doing-trade-in-belgium/

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VIP INTERVIEW

Flying high

When addressing the aviation industry, what usually comes to mind is passenger flights or cargo services. However, another important segment contributing to the phenomenal growth of this leading sector is the flight support services. RamJet Aviation, based at the world-class RAK Free Trade Zone, shares its journey to success as a promising SME in this field.

How did RamJet Aviation come about?

Can you tell us about your portfolio of services?

RamJet Aviation was launched nearly a decade ago, as a small business equipped with a vision, a small office and lots of dedication.

We’ve come a long way since our inception, surpassing new milestones with every passing day. Our timeline showcases our progression from a small company to one of the biggest and renowned service providers in the region for European, GCC, Africa and East Asian flights.

We provide state-of-the-art worldwide aviation support services to our clients. Whether it’s assistance in seeking permits for a private flight or extensive services from ground handling to hotel accommodation for a chartered business flight spanning several legs of journey, RamJet Aviation is a one-stopshop provider. We offer support with the following services to both private and commercial flights:

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• Overflight clearances, traffic rights and landing permits • Ground handling services • Fuelling • Hotel accommodation • Catering services • Charter services • Cargo charter services

How can potential clients go about acquiring your services?

Please give us a quick overview of how the process works.

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VIP INTERVIEW

This business is done on trust basis and mostly propagated by word of mouth. We are very easy to access as we have a 24-hour operation team who can take care of any “on the spot requests” and deliver excellent support. In just three steps – e-mail us, get acknowledged and fly.

Unlike other support companies, at RamJet Aviation our modusoperandi is pretty simple: Just get the job done! Instead of shelving the responsibility of getting the job done to other partners and partially to the client itself, we take responsibility to ensure that our customer requirements are properly fulfilled in a timely manner.

How is the competition in this region? What gives you an edge over your competitors?

In today’s fiercely competitive markets, it is crucial to provide topnotch quality services at affordable prices. This is exactly what we focus on doing and this is what gives a competitive edge.

I should also add that honesty and integrity are two major factors while doing business in this industry; it’s extremely important to build a relationship of mutual trust with your clients.

Are there any significant bottlenecks that you faced when you were starting up your business?

In today’s fiercely competitive markets, it is crucial to provide topnotch quality services at affordable prices. www.tradeandexportme.com

We were very fortunate to have started our business in Ras Al Khaimah under the patronage of RAK Free Trade Zone. The authorities helped us at every step of the way ensuring that it was an easy, smooth setup, which in turn allowed us to concentrate on our core business activities.

Rules and regulations vary from one region to another. When dealing with different markets how do you ensure that you are adhering to the protocols in these areas?

In the aviation industry, it is crucial to keep abreast of what is happening around the world. Our team is continually we are up to date with rules and regulations. Thankfully we also have brilliant partners around the world who ensure that we are well informed.

How do you ensure that you are up to the latest standards of the aviation industry?

We have always worked to being the best in the industry. As such we have participated in all major aviation industry shows to keep track on all that is new in the industry. We have and continue to attend workshops that help us stay up to date with this every changing industry.

How do you ensure that your employees are well-equipped with the skills and knowledge that will help you achieve your company’s bottom line?

With an increase in business outreach and flight operations, Team RamJet’s expansion was nonetheless inevitable. The company ensures to broaden its operations and line of services to its growing list of clientele. Along with addition of newer team members the company has also worked on its infrastructure employing the latest in business processes to manage all foreseen

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VIP INTERVIEW

the management team at RAK FTZ is very warm and hospitable.

They have always been very supportive and understanding.

We began operations in RAK FTZ 15 years ago. RAK FTZ is very cost effective when it comes to having your own office space. This simply translates to lower overhead costs which our customers can see being reflected on the fees we charge them. So, we are able to match our quality service with affordable prices.

In addition, the management team at RAK FTZ is very warm and hospitable. They have always been very supportive and understanding.

What are your plans for future growth? services thus ensuring even higher quality of service provision to all clients. The company also maintains a stringent policy when it comes to quality assurance and invests heavily in making sure its team is always well prepared and up to date on variations in industry standards. RamJet invests heavily in the training and professional development of its staff.

What kind of ancillary tracking services do you offer to clients?

We met with...

Issam Sultan, General Manager, RamJet Aero, spent the last seventeen years working in the aviation consultancy business.

He has successfully coordinated countless flights world-wide for governments state officials, royal dignitaries, fortune 500 CEOs, and continues to help out with numerous charity flights. Issam also has a Master’s Degree in Business Administration from University of Bolton.

We will continue to expand our network of agents world-wide and strengthen our reach into the industry.

What advice would you give to SMEs in this region?

Don’t be afraid to start small as long as you have a solid vision.

I believe this has been the underlying principle behind the success of not just RAKFTZ but the entire UAE and look how far they have come!

Our clients are constantly updated with the progress of their flight operations – from start to finish.

In fact, they can enjoy regular tracking with a click of a button.

Of course, our dynamic team of experts are also available 24/7 via phone to manage client updates and monitor operations.

What attracted to opening your business at RAK FTZ?

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For an online version, please visit: www.tradeandexportme.com/2015/04/ flying-high/

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LEGAL

Intellectual Property considerations in Saudi Arabia

The Kingdom of Saudi Arabia is the largest Arabic gulf state in terms of population and GDP. It is therefore a key market for businesses entering the Middle East region. However, it can pose significant challenges in terms of doing business. One particular issue that has been a major roadblock for new companies is the protection of Intellectual Property (IP) rights. In the following feature, experts from Clyde & Co. assess the progress and provide an overview of this key jurisdiction.

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Saudi Arabia is one of the most conservative countries in the world.

Its legal system is based on Sharia principles and there is no system of binding precedent.

Issues can arise where the rights being relied upon are unregistered or where registrations are not held in Saudi Arabia. In such cases the Courts may question whether unregistered rights can “belong” to the owner.

We look further below into issues which IP owners commonly face in Saudi Arabia. In our experience, it is possible for IP rights to be created, recognised and protected in Saudi Arabia, thereby unlocking the potential to one of the most important markets in the region.

Trade mark protection Trade mark registrations are obtained through the Trade Mark Office which forms part of the Ministry of Commerce and Industry (MOCI) in Riyadh. An in-house computer system was recently developed so that applications are

filed and published online. This has significantly expedited the timeline for registering routine applications, which can proceed to registration in under nine months.

Some products and services cannot be applied for as they conflict with local cultural sensitivities, for example alcohol related products and services.

Saudi operates a single class filing system and uses an adapted version of the 10th Edition of the Nice Classification, which means applicants are restricted to pre-approved terms only. This can pose significant issues as everyday terms such as “retail services” or “streaming services” are not included in the acceptable list. Careful thought and knowledge of what is acceptable in Saudi Arabia is required in order to obtain protection which is suitable for the needs of the business.

Unlike many other countries, opposition proceedings against trade mark applications are filed before an administrative court (the Board of Grievances). Proceedings are generally

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LEGAL

brought by the opponent against the Trade Mark Office rather than against the applicant.

Our ‘top tips’ for registering trade marks in Saudi Arabia are: 1. Search – pre-filing searches are recommended, a straight refusal will be issued if a conflicting mark is identified on examination; 2. Register – registration is key and we recommend filing early, before speaking with local partners; 3. Al Arabiya – Arabic is the main language of Saudi Arabia. It is therefore important to develop, protect and use Arabic branding and not rely on an English-only approach; 4. Goods/services – some are not permitted (e.g. alcohol) so consider your options to protect your interests; 5. Class headings – we advise against using class headings unless the products or services of interest are specifically mentioned (as this may impact enforcement options later);

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6. The mark – objections may be raised on moral grounds to marks which are easily registered elsewhere. The mark may need to be changed in order to be used and registered in Saudi; 7. Marketing – for the same reason some rights holders have to change their marketing campaigns; 8. Consistency – ensure the Arabic name and address used is consistent with what has been used before, or you may have a rejection based on your own rights; 9. Maintenance – update names and addresses for registrations as they occur and not on renewal.

Supporting documents such as Powers of Attorneys are needed for such actions, so it can be a false economy to pull together the documentation required at the time of renewal; and 10. Dates - the official calendar in the Kingdom is the Hijiri Calendar.

On average, a Hijiri year is 11 days shorter than a Gregorian year. Work

from the Hijiri calendar to avoid missing renewal deadlines.

Enforcing IP rights A common question asked is: “Do enforcement actions take place?” We can confirm that enforcement actions do take place, though much depends on the rights the client has in the country.

In recent times, we have had successful seizures through both Customs and administrative bodies in Saudi Arabia for tens of thousands of infringing products.

So, what options are available? For brand owners with registrations in Saudi, it is relatively straightforward to bring an enforcement action in relation to counterfeit goods at a retail and wholesale level and for border infringements. We set out below the four main options for bringing enforcement action against infringers in Saudi: 1. Administrative complaints The Ministry of Commerce and

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LEGAL

Saudi Arabia has implemented national legislation ratifying the GCC Patent Law.

Industry (MOCI) in Saudi accepts complaints in relation to routine counterfeit matters and it has authority to raid both retail outlets and warehouses.

Complaints need to be filed with the office for the relevant province where the infringing goods are identified.

Once a complaint has been filed, the MOCI will send inspectors to raid the retail outlets to seize and destroy any infringing products.

Traders dealing in infringing goods will also receive a nominal fine and may be required to sign an undertaking in favour of the MOCI. 2. Criminal complaint Although it is possible to file a criminal complaint, the police are only likely to pursue the trader when large quantities of infringing products are involved.

The procedure for conducting a criminal raid will depend on the province, although, generally, the complaint must be filed with the local Public Prosecutor. The Public Prosecutor will decide whether to accept the complaint and will then co-ordinate the raid with the relevant police.

3. Civil claim Civil claims are usually more appropriate for non-routine cases, for example in trade dress infringements, lookalike cases or where there has been a previous distribution or agency agreement between the parties. Civil claims are filed with the Board of Grievances.

All Court proceedings are conducted in Arabic. Pleadings and evidence must be submitted in Arabic. The cost of civil proceedings is high as a party’s legal costs will largely be non-recoverable, as usually only nominal legal costs are awarded. It is also possible to claim damages, which must be evidenced and calculated on the basis of compensation to the loss caused to the trade mark owner.

However, in practice, the Court may only be prepared to award nominal damages and there can be difficulty in enforcing such orders.

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4. Customs complaint A complaint can be filed with Customs requesting that infringing products being imported be seized and destroyed.

The trade mark owner must hold trade mark registrations in Saudi Arabia for the relevant trade mark being infringed, but it is not required to record registrations with Customs. If suspected counterfeit goods are detained by Customs, they will inform the brand owner’s local representative. The brand owner will usually be given 10 days to file a complaint with Customs.

Patents Patents are protected in Saudi Arabia under Law of Patents, Layout-Designs of Integrated Circuits, Plant Varieties, and Industrial Designs (promulgated

by Royal Decree No. M/27 of 29/5/1425H (July 17, 2004)) (the Patent Law). The Patent Law provides for the protection of patents, plant varieties, industrial designs, and layout designs of integrated circuits but not utility models.

An invention in Saudi Arabia can be protected by way of a patent filed: • at the General Directorate of Patents at King Abdulaziz City of Science and Technology (KACST) either as a stand-alone direct application or via the Patent Cooperation Treaty (PCT); • with the Gulf Cooperation Council (GCC) Patent Office either as a stand-alone direct application or within a 12 month priority period which is provided for under the GCC Patent Law. The GCC Patent Office registers patents covering the six member states of the GCC being the Saudi Arabia, the UAE, Qatar, Oman, Kuwait and Bahrain.

Saudi Arabia has implemented national legislation ratifying the GCC Patent Law. However, this legislation does not deal with the enforcement of GCC patents in Saudi Arabia, despite the GCC Patent Law providing that enforcement issues are a matter for national legislation. As a result, there is no clear regime for enforcing patents granted by the GCC Patent Office in Saudi Arabia.

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LEGAL

Our ‘top tip’ for filing patents in Saudi Arabia is to ensure that patent translations are undertaken at least one month before the filing date.

A question commonly asked is surrounding software and patents. In Saudi Arabia, computer programs as such are not patentable although, if the relevant criteria are met, software may be given copyright protection. In addition, computer-related inventions (as opposed to software alone) are potentially patentable in Saudi Arabia.

Patents in Saudi Arabia must be filed in Arabic, it is not possible to file the Arabic translation late. Our ‘top tip’ for filing patents in Saudi Arabia is to ensure that patent translations are undertaken at least one month before the filing date.

Copyright There are a number of myths about copyright protection in Saudi Arabia, such as “it is not possible for non-Saudi nationals/foreign companies to benefit from copyright protection”.

This is not the case. The Kingdom is party to the Berne Convention which sets out basic principles including “national treatment” and the “automatic” protection of copyright works. In order to successfully enforce copyright in the Kingdom, it is important to be able to show a chain of ownership from the author of the work to the owner (i.e. in the form of an assignment agreement which complies with the Royal Decree No. M/41 (the Copyright Law)).

As a general rule, copyright vests automatically in the author of a work on creation, until copyright is assigned in accordance with the provisions of the Copyright Law. There are exceptions for joint and collective works, i.e. works created by a group of people. It is important to note that moral rights will remain with the author.

It is often (incorrectly) assumed that copyright will automatically be owned by the party who commissioned the works to be created. However, unlike the position in the US (with the ‘works for hire’ concept), copyright in commissioned works will be retained by the author under the Copyright Law. Accordingly, in the absence of IP provisions in commissioning agreements, the contractor will usually

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retain copyright in the deliverables and the commissioner may have no right to use, copy or amend the works.

Another issue worth highlighting is that the Copyright Law does not contain a provision which states that copyright in works created by employees during the course of their employment will be automatically owned by their employers.

Accordingly, companies with works being created within the Kingdom should ensure that assignment agreements are signed by the individuals that create the works to ensure that copyright is effectively transferred to the companies (and not retained by individual author).

In order for an assignment of copyright to be valid under the provisions of the Copyright Law, it must be in writing and it must specify the place and duration of the assignment.

Taking steps to put in place a valid chain of ownership will ensure that companies are able to use, exploit and enforce copyright in the Kingdom.

Further information If you would like further information on any issue raised in this update please contact: Rob Deans, Head of IP, Clyde & Co Jon Parker, Head of Trade Marks, Clyde & Co Harriet Balloch, Senior Associate, Clyde & Co Rachel Armstrong, Associate, Clyde & Co Clyde & Co LLP PO Box 7001 Level 15, Rolex Tower Sheikh Zayed Road Dubai, United Arab Emirates T: +971 4 384 4000 F: +971 4 384 4004 Clyde & Co accepts no responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in this summary. www.clydeco.com

For an online version, please visit: www.tradeandexportme.com/2015/04/ipconsiderations-in-saudi-arabia/

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EVENT REVIEW

A day marked in history

Set in the luxurious Etihad Towers, a landmark debate called ‘Masterclass – the Abu Dhabi Economic Vision 2030’ brought together an extraordinary cluster of world-class economists, captains of industry and key Government decisionmakers. SME Advisor brings you exclusive insights…

During the high-profile event

The Abu Dhabi Economic Vision 2030 is arguably the most comprehensive and far-reaching strategic plan in the region. The document, which is often referred to as the holy grail of sustainable growth and development, crystallises the critical role of Public-Private Partnerships and highlights opportunities in key sectors such as Infrastructure, IT, Healthcare and Manufacturing.

SMEs and entrepreneurs are an integral part of this strategic agenda, acting as catalysts to a self-funding development model, diversification and growth in a climate of lower oil prices.

But, how can an SME align itself

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with the underlying principles of this document? What are the practical steps in building a business that can fully maximise the opportunities of Vision 2030? Masterclass: the Abu Dhabi Economic Vision 2030, organised by SME Advisor in association with National Bank of Abu Dhabi (NBAD), was a forum dedicated to exploring these critical areas and providing expert advice on the different facets of Vision 2030.

With a room packed out with over 125 SME owners, directors and senior executives, the VIP panel debate examined how – • SMEs can reap practical benefits even in the early stages of the 2030 turnaround

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EVENT REVIEW

The 2030 Vision is already proving to be a key catalyst in encouraging full and proper integration between public and private sectors.

The event attracted 125 SME owners and senior directors

The fantastic line-up of experts

• The emphasis needs to be ’work smarter, not harder’ - and SMEs will be given the tools and the skills training to do just that • The 2030 Vision is already proving to be a key catalyst in encouraging full and proper integration between public and private sectors - and it’s SMEs who’ll benefit most A powerful dialogue An important aspect that set this event apart from the others was the calibre of people it managed to get around the table. The session was Moderated by Paul Godfrey, Group Director of Editorial, CPI Media Group, and the top team of panellists included -

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• Rudolph Lohmeyer, Leader, Global Business Policy Council, AT Kearney and formerly, Senior Advisor, US Department of State • Yogesh Mehta, CEO, Petrochem • Dr. Dalia Abu Samra-Rohte, CEO, AHK German-Emirati Joint Council, Industry and Commerce, Abu Dhabi • Dr. Anil Khurana, Partner, PwC • Prof. Abdullah Abonamah, CEO, The UAE Academy • Ahsan Ali, Director, Credit, Khalifa Fund for Enterprise Development • Nina Curley, Managing Director, Flat6Labs • Nilanjan Ray, Managing Director, Global Commercial Banking, NBAD

• Austin Rudman, Partner and Financial Services Leader, KPMG • Dr. Abdelrahim Elrayah Mahmoud, Business and Corporate Development Consultant, Abu Dhabi Chamber of Commerce and Industry • Moza Obaid Al Nasseri, Acting COO, Khalifa Fund for Enterprise Development These experts touched on a raft of topics including getting finance, implementing corporate governance, improving trade links, fostering Public-Private Partnerships and developing human capital. However, three main themes emerged from the

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EVENT REVIEW

The ‘Masterclass’ round table proved a powerful forum for helping SMEs discover the new world of opportunity that the Abu Dhabi Economic Vision is already opening up.

SME Advisor thanks its sponsors for their support:

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ground-breaking discussion.

They were – a) Focusing on diversification – In a climate of lower oil prices, businesses will be seen diversifying to alternative sectors such as Advanced Manufacturing, IT, Healthcare and Education. Furthermore, the adoption of smart technology across these industry verticals will revolutionise the business landscape. This will not only help boost productivity, but also lower costs and increase competitiveness. b) Funding continues to be a critical factor – Experts at the round table argued that bank financing may not necessarily be the best source of capital for early-stage businesses and entrepreneurs. Private capital will play an increasingly important role in supporting start-ups; particularly sources such VCs, angel investors, peer to peer lending and accelerator programmes. Rudolph Lohmeyer remarked: “In the changing economic environment, capital is still very much available, but SMEs and start-ups will have to be more disciplined in how they design and secure finance. This discipline will focus on iteration, future-driven value propositions and connection to global value chains.” c) Leveraging the power of PublicPrivate Partnerships (PPPs) – The last few years have seen PPPs emerge as a significant instrument for economic development and garner a lot of attention. Experts around the table, however, expressed their concern over PPPs being limited to a financial arrangement between the public and private sectors. They emphasised the need for knowledge exchange i.e. working together by sharing assets, expertise, tendering opportunities, best practices and so on.

The detailed findings of the discussion will be released in a comprehensive summary report, which will be available exclusively on SME Advisor’s website.

Leading by example The day also featured success stories from SMEs who have leveraged effective results precisely by using the approaches and strategies outlined in the Abu Dhabi Economic Vision 2030. Samer Hani, General Manager – Business Development, CLEANCO; Souad M. Al Hosani, President, Nexus Business Services; and Abdulrahman Alblooshi, Founder and Owner, Qirat Tea Trading; were the three exemplary entrepreneurs who shared their experiences with the audience in 20 minute presentations.

SME Advisor and NBAD presented these entrepreneurs with honorary certificates for their outstanding performance and undying commitment to the SME community.

A momentous occasion The ‘Masterclass’ round table proved a powerful forum for helping SMEs discover the new world of opportunity that the Abu Dhabi Economic Vision is already opening up and its practical benefits for thousands of local business owners.

While the event managed to spark an interesting debate with several take away points for the SMEs in attendance, there was one important conclusion: as the economic scene continues to change and we enter a time of sustained lower oil prices, the Abu Dhabi Economic Vision 2030 has adapted and transformed its remit, creating a fresh, relevant and highly practical blueprint for today’s business culture.

For an online version, please visit: www.tradeandexportme.com/2015/04/aday-marked-in-history/

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TECH TRENDS

Top apps to manage your e-mail effectively Rushika Bhatia ,s view...

Unlistr Tired of receiving unwanted e-mail?

This app provides a sound solution to spring clean your inbox. It’s quite simple to use – provide your e-mail address and Unlistr scans all subscriptions you’ve enrolled into. It gives you a list of all the subscriptions and allows you to unsubscribe from unwanted third party e-mails.

Available on: iOS and Android Cost: Basic version is free

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TECH TRENDS

Heed If you are looking to minimise the time you spend on e-mails, this app provides the perfect solution.

Heed lets you prioritise e-mails into three levels of importance. Simply categorise e-mails according to when you would like to respond to them or depending on their urgency. The app then places all high-priority e-mails at the top of your inbox, ensuring that you are giving your attention to the right issues.

What makes Heed particularly attractive is its clean user interface, which enables you to take actions with simple gestures.

Available on: iOS Cost: Free

Boxer This app offers basic e-mail management features such as push notifications, e-mail categorisation, labelling and so on. However, what elevates it to the next level is its ability to perform additional functions such as integrating e-mail with Evernote, integrating e-mail with your calendar, creating smart folders and managing your to-do list.

The icing on the cake is definitely the app’s ‘dashboard’ feature, which gives you a snapshot of all your important messages, tasks and information at one glance – extremely handy for entrepreneurs on-the-go!

Available on: iOS and Android Cost: Free

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TECH TRENDS

SpamDrain If not handled correctly, spam can clog your inbox and distract you from important messages.

SpamDrain is a useful app that monitors your incoming messages and keeps track of what kind of e-mails you typically read. It then filters your inbox based on your preferences and gets rid of unwanted messages. It also generates a report listing all the blocked messages and allows you to retrieve any that you may have wanted to hold on to. So, you always have ultimate control of your inbox.

Available on: iOS and Android Cost: 14 days trial – Free

MailChimp MailChimp is a slightly different type of e-mail app, which lets you create powerful e-mail marketing campaigns. It allows you to stay in touch with existing sales leads, customers and partners. The app has various templates to choose from, in addition to a useful function for a designer to design a coded e-mail message for your company. Following this, you can send the message to a selected list of e-mail subscribers.

This app is particularly useful for small businesses that are looking for cost-effective, efficient and easy-to-use marketing solutions.

Available on: Android and iOS platforms Cost: Free

For an online version, please visit: www.smeadvisor.com/2015/04/top-apps-tomanage-your-email-effectively/

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TECH TRENDS

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