SME Advisor Issue 117 by SME Advisor Middle East

Presenting partner

strategic SME partner

ISSUE 117

NBAD supported our project plans and gave us the confidence to enter the market. Nasser Al Rowahi CEO, Hexagon Batteries Regeneration

Hexagon is the first battery regeneration service center in the UAE with the ultimate goal of adding value to sustainable practices and initiatives in the Emirates. In partnership with Be Energy in France, Hexagon strives to introduce the latest technology of battery regeneration. When Hexagon made plans to enter the market, NBAD supported the project and helped establish Hexagon Batteries Regeneration. At NBAD we believe that the true success of a business is partnership. With our regional expertise and global reach across the dynamic West-East trade corridor, you can count on us to partner you to the next level of success.

Global Commercial Banking Toll Free 800 2211

E-mail: CommBankingSales@nbad.com

Subject to bank approval. Terms & conditions apply.

www.nbad.com

Khalifa Fund for Enterprise Development is 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.

EDITORIAL COMMITTEE

His Excellency Abdullah Saeed Al Darmaki CEO, Khalifa Fund for Enterprise Development

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 prestigious 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:

Policy makers

Professor Val Lindsay MSc (Otago), MBA (Victoria), PhD (Warwick) As a Professor of Entrepreneurship and Management at the American University of Sharjah (AUS), 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.

Thought leaders 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.

Entrepreneurs Avi Bhojani CEO, BPG GROUP

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sme advisor ISSUE 117

He is also 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.

With his unique background as an educator, a business strategist, and a researcher, Dr. Abonamah has conducted many strategy and organisational transformation workshops for various SMEs in the Gulf region and has been invited to speak at many national and international conferences, and panel discussions. He has over fifty publications in international journals and conferences and a US patent in reliable computer systems.

Essa Al Zaabi Senior Vice President Support Services, Dubai Chamber of Commerce & Industry

Abdullah Abonamah PROFESSOR OF MANAGEMENT SCIENCES AND CEO, UAE ACADEMY

He is a 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.

Roberto Mancone MD, GLOBAL HEAD BUSINESS PRODUCTS, LENDING, DEPOSIT AND PAYMENTS, DEUTSCHE BANK

Paul Kenny PARTNER, EMERGE VENTURES

Laura has been named one of the Best Keynote Speakers by Meetings and Conventions Magazine and is a member of the National Speakers Association. She serves on the boards of the American Heart Association, Clean the World Foundation, Common Threads and Event Solutions Magazine.

Laura Schwartz PROFESSIONAL SPEAKER, AUTHOR AND FORMERLY WHITE HOUSE DIRECTOR OF EVENTS

Paul is one of the most important figures in the Internet space in the MENA region and is an active investor, mentor and advisor to numerous companies around the world. He has made numerous investments into Internet and Technology companies worldwide and sits as an advisor and board member to several companies.

Yogesh Mehta Managing Director, Petrochem Middle East Mohan Valrani Senior Vice Chairman & Managing Director, Al Shirawi Group of Companies Apart, from his business-related ventures, 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.

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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 owner and CEO, IHCC 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) Entrepreneursâ&#x20AC;&#x2122; Organisation in the USA.

“I urge fellow SME owners to use SME Beyond Borders as their own catalyst to #RethinkSuccess” - Dominic

“I would love to start every business from ‘Zero’. This way the only way is ‘up’.” - Nadeem “#RethinkSuccess is all about choosing between the rat race and the right race; it’s about reinventing your ambitions and expectations and using modern technology to leverage critical advantage. It’s not about giving up your Lamborghini; it’s about getting one in a very different way.” - Paul

“When I think about success, I’m inspired by this wonderful quote by Frank Zappa, “If you end up with a boring miserable life because you listened to your mom, your dad, your teacher, or some guy on television telling you how to do your shit, then you deserve it.” - Gina “It’s simple – success is about doing what you love, every single day of your life!” - Rushika

“There are 3 things in life worth pursuing: Happiness; Knowledge; and Love. Success is just a byproduct of the pursuit.” - Anusha

“Success is about doing what you’re passionate about and constantly challenging yourself to do something different, better and immensely satisfying to your core.” - Murtaza

“In my role as Head of Events, success is a combination of innovation, creativity and exceptional organisational skills that help me create memorable experiences for our audiences day-after-day!” - Amy

“Success is about rethinking traditional business procedures and staying abreast latest innovations. It’s about implementing modern strategies to streamline business processes and keep ahead of competitors.” - Gill

“Success is the sum of consistent hardwork, passion, creativity and of course a little fun!” - Froilan

“To have great excuses to get out of work” - Glenn

FROM THE EDITOR MANAGEMENT Dominic De Sousa Chairman Nadeem Hood Group CEO Georgina O’Hara COO - Business and Consumer 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 ADVERTISING Business Development Executive Adam Barrie Lees adam.lees@cpimediagroup.com +971 4 440 9119 Business Development Executive Mohamed Kerrouchi mohamed.kerrouchi@cpimediagroup.com +971 4 440 9162 Account Executive Freshia Mistry freshia.mistry@cpimediagroup.com +971 4 440 9161 Event Sponsorship Manager Gill Fairclough gill.fairclough@cpimediagroup.com +971 4 440 9120

#RethinkSuccess - but next year already beckons… As you read this issue of SME Advisor, the year’s largest SME event, SME Beyond Borders, is now underway, dedicated to discussing how businesses can leverage the power of disruptive strategies and become empowered with the new technologies at their disposal. Yet it has to be said that even now, the agendas of next year are rapidly emerging and somewhat in need of rational debate. One of the key topics set to confront SMEs is the arrival of compulsory Heath Insurance mandatory for businesses of all sizes to provide to personnel by close of Q2 2016. The debates around what promises to be a major milestone and commitment are surprisingly lacking at present. The panel of preferred providers has been in place for some time, and perhaps the most critical aspect is the requirement that literally all businesses are obliged to deliver on their legal requirements. If some SMEs believe they can subvert the requirements, we will rapidly end up in the same position as the debate around companies retaining employee’s passports – a practice strictly forbidden in law and yet still commonplace. Plenty of food for debate here. Another key debate here is how, when more and more and businesses are setting up as online operations - avoiding heavy up-front costs and getting away from the traditional CAPEX model - there is very little discussion on the tax implications for business’ selling in overseas markets. While online presence is seen (quite rightly, of course) as the means to achieving global outreach, those companies selling internationally with most success are also expert in handling multiple tax submissions. Doesn’t sound very appealing? Indeed, but it’s better to gear up for the requirement now than face such significant demands in two to three years’ time that the business itself might be brought down. Growing online presence has led to the emergence of some relatively successful online funding platforms, and here again we face a raft of regulatory issues and uncertainties. While the ‘back office’ management of the better sites will of course define the contractual obligations between online funder and the fundee, this is very different from their being a specifically-defined legal structure delineating mutual expectations and requirements. Watch this space, as they say, for crucial developments… Enjoy this issue of SME Advisor – and also SME Beyond Borders! #RethinkSuccess

DESIGN Head of Design Glenn Roxas

Paul Godfrey Senior Editor

Senior Graphic Designer Froilan Cosgafa IV Production Manager James Tharian Data Manager Rajeesh Melath Printed by Al Ghurair Printing & Publishing LLC

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

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

OFFICIAL GOVERNMENT PARTNER

Contents

Leadership is not some mystical quality that only a few people have and everyone else doesn’t. Leadership is not preordained. Neither is it the private reserve of A special class of charismatic men and women. Leadership is not a gene. Neither is it a trait.

p46

The absence of industrial innovation is hugely attributed to the unawareness of most SMEs to adopt a design-driven innovation approach.

ON THE FRONT COVER

p66

06 Editorial Committee SME personalities bringing industry-leading expertise across the publication and its raft of prestigious events. 09 Editor’s Note Paul Godfrey on the agendas of next year… 12 Data and decision making Our infographic section showcasing key trends shaping the SME marketplace. Ground Level 14 Join the crowd What are the plusses and minuses of putting your finance request in front of the wider world? 18 The quest for liquidity SME Advisor investigates what it takes to be liquid and why it matters so much. Fast Four 22 Big Data Four excerpts that summarise everything you need to know.

sme advisor ISSUE 117

In today’s evolving business landscape, it is so important to stay abreast of the changing dynamics – you have to be involved within your business 24/7; there is no downtime!

p42

SME Beyond Borders 24 SME Beyond Borders 2015 An insider’s view to SME Beyond Borders.

CSR 54 Thinking outside the box Rethinking success through social change with Enritsch.

Digitally Disruptive 30 Delivering tomorrow’s SMB solutions – today Experts from Etisalat share insights…

Strategy 58 A new year and a new plan Dr. Ashraf Mahate, Head of Export Market Intelligence, Dubai Exports, shares critical advice.

Movers & Shakers 34 Global Free Zone of the Year: DMCC We meet the woman at the forefront of this success – Krysta Fox, Director – Free Zone, DMCC. 38 Corporate tax and VAT in the UAE Nilesh Ashar, Partner, Head of Tax, KPMG UAE, sets the scene. 42 The aroma of success: Man’oushe Street An exclusive meeting with Founder Jihad El Eit. 46 A meeting with Global Leadership Guru – Jim Kouzes We provide exciting excerpts… 50 Redefining entrepreneurial success: Anielle Guedes We meet a young entrepreneur who is using technology to solve the global housing challenge.

Legal 62 In focus: Employee considerations in GCC M&A Experts from Clyde and Co. highlight the key aspects. Innovation 66 Design Driven Innovation for Industrial SMEs Duha Awayes from Protiviti Oman sets the scene. Stars of Business 70 Unveiling the prestigious nominees of the 8th Annual SME Stars of Business Awards. Tech Trends 76 Top personal finance apps.

Data and Decision making

Financial insights:

WHAT CFOs ACROSS THE WORLD ARE SAYING

Global comparison

UK UNITED KINGDOM

NORTH AMERICA

47%

CFOs express rising optimism

42%

rate this economy as good or very good

20%

expect a major merger or acquisition

38%

of CFOs are optimistic about financial prospects

71%

of CFOs believe itâ&#x20AC;&#x2122;s a good time to take greater risks

95%

expect M&A activity to rise over the next year

CFO focus on Mergers and Acquisitions Core M&A objectives

64%

Product/service differentiation

42%

Enter new geographic markets

42%

Expand customer base in existing geographic markets

32%

Pursue cost synergies or scale efficiencies

What are the primary M&A funding sources? 53%

Available cash

37%

Debt

New equity issuance

Greatest concerns 43%

Failure to effectively integrate

16%

Changing regulatory and legislative environment

14%

Inaccurate target valuation

12%

Economic uncertainty

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Data and Decision making

Middle East outlook

66%

of CFOs in the Middle East predict higher energy prices in a year

INDIA

68%

are positive about the future state of the Indian economy

40%

are hopeful about organisational growth opportunities

48%

consider pricing pressures as the top growth inhibitors

Bank borrowing is perceived to be the most attractive source of external funding

65%

of Middle East CFOs prefer bank loans over debt raised

CFOs have concentrated their efforts towards: cost reduction 86%, organic growth 73% and increased cash flow 66%

Only

33%

of CFOs believe it is a good time to take greater risk onto the balance sheet

INDIA

SOUTHEAST ASIA SOUTHEAST ASIA

AUSTRALIA

36%

of CFOs are more optimistic than last quarter

of CFOs willing to take 55% greater risks

of CFOs will pursue 76% organic expansion

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44%

of CFOs are more optimistic than the last quarter

72%

of CFOs are now more involved in risk management

26%

of CFOs spend significant amounts of time as strategists for company growth

AUSTRALIA

Sources: Bridging the Gap: M&A by Deloitte, EY’s Capital Confidence Barometer – Smaller strategic deals lead market recovery, Going Global – strategy and execution in cross-border M&A by Baker & McKenzie, Deloitte’s Global CFO Signals

GROUND LEVEL

Online funding platforms have transformed the ability of a start-up or growth-hungry business to attract finance. Yet for most entrepreneurs they are still far from being a mainstream choice and are poorly understood in terms of how their repayment and certification procedures actually work. Senior Editor Paul Godfrey looks at the plusses and minuses of putting your finance request in front of the wider worldâ&#x20AC;Ś

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GROUND LEVEL

Let’s start by dispelling some of the myths about online funding platforms • They are not just for ‘crowdfunding’, ie, attracting random sums of varying sizes from a broad and unfamiliar investment base. An online funding platform can equally well be used to attract two or three investors able to put up tens of millions of dollars. • They are not just for attracting private investors: some of the world’s biggest companies use them to identify major institutional funding opportunities. • The funding relationships generated are not ‘unmanaged’. While sometimes, the platform itself will use an algorithm to calculate investor repayments as your business grows, more frequently, the platform is simply a ‘front office’ for a company which will personally log, certify and manage the investment ratios. Until recently, financing a business involved a complex research process that would mean ‘doing the rounds’ of banks, VCs (where available) and angel investors. It’s now possible to completely bypass this process: online funding platforms use the internet to help entrepreneurs talk to thousands of potential funders, and you can define the style and level of investment that you are looking to gain. All of which means that small business owners who are being turned down by high street banks now have an opportunity to appeal directly to small investors. Equally, there are huge benefits from the investors’ side of things. Whereas investing in small businesses was previously a second-career option of the very rich, online funding means that anyone can reap the benefits of investing in promising

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start-ups - whether you want to risk USD500,000 or USD500. The element of online funding that has really caught the public imagination is crowdfunding where you attract a broad mix of investment values that give you the sums you are looking for by creating a patchwork of different commitments. The advantage here is pure flexibility, and the fact that you don’t need the complex raft of credentials that you would otherwise require to attract larger sums from targeted big-ticket investors. Anyone who fancies the idea of being an investor and who likes your concept can come into the mix. The disadvantage for the SME is that you can be left with an amazing array of commitments to people you don’t know - and whose long-term expectations are a mystery. It’s also unlikely that you will then enjoy the benefits of having an expert investor sitting on your Board, which while setting you free from the sometimes claustrophobic presence of a third party, also means you won’t enjoy the capable professional guidance of someone who really knows how to grow a business. It remains true that companies requiring substantial amounts of start-up capital may continue to be funded in more traditional ways - angel investors, for example, are likely to carry on filling the funding gap. However, in the immediate term, funding platforms can impact the entrepreneurial ecosystem significantly, in the same way that the private equity model did previously. To be fair, online funding is a fairly new sector that is still developing. While it is an exciting prospect for many - and gives small businesses access to remarkable and fresh funding opportunities - it can be a confusing environment, simply because it is presented in such a wide diversity of ways.

online funding platforms use the internet to help entrepreneurs talk to thousands of potential funders, and you can define the style and level of investment that you are looking to gain.

GROUND LEVEL

In any environment where money is changing HANDS there is bound to some risk of fraud, and this is compounded through the anonymity of investor sourcing online.

The sector is not without its problems and concerns - which SMEs and their would-be investors need to take into account. While partial industry regulation has now been established in many GCC and MENA nations, discussions are ongoing between crowdfunding pioneers and regulators in an attempt to find a balance between protecting investors (given that many small businesses will fail in Year One), while allowing for the creativity and freedom needed to make ventures a success. In any environment where money is changing hands there is bound to some risk of fraud, and this is compounded through the anonymity of investor sourcing online. There are several key generic types of online funding – Debt crowdfunding This is the ‘classic’ online funding model. Investors receive their money back with interest. Also called peer-to-peer lending, it allows for the lending of money without recourse to traditional finance houses or banks. Returns are financial, but investors also have the benefit of having contributed to the success of a potentially unique business concept. In the case of larger investments, this means that investors can therefore sometimes negotiate a share of intellectual property rights and brand value if the business is sold - even though they have technically not bought equity.

online platform, the process is not ‘one dimensional’ and purely online - it’s managed and manipulated at back office by the site provider, who then builds a verbal dialogue between company and equity investor. This is vital, because it is likely that the equity provider will command a seat on the Board of the funded business. As the company grows, a record is of course kept of how the ownership percentage translates into cash and what repayments are due and when.

Equity crowdfunding People invest in an opportunity in exchange for equity, ie, money is exchanged for a share in the business, project or venture. As with other types of shares if it is successful the value goes up. If not, the value goes down and potentially, you could lose your money completely. Particularly with this kind of

Donation crowdfunding Here; people invest purely because they believe in the cause that the business represents. Rewards can be offered, though, and these might be, eg, hospitality prizes, tickets to an event, an investor magazine, regular news updates or free premium gifts. The funding incentive is that donors have a social or personal motivation for

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GROUND LEVEL

putting their money in and expect nothing back, except to see the project grow to fruition and reap results in the community. The risks roundabout Online funding can be risky. One of the main reasons for this is that especially for crowdfunding models - it breaks the accepted protocol of getting to know your investor and their track record. (Similarly, investors could say that they have no opportunity to get to know the business’ founder, its customers and its credit history). Similarly, this heightens the risk that there is no guarantee investors will receive a return. What’s more, while you may receive a share of a business or project, dividends in the early stages of development are very rare indeed, forcing you to be a long-term player – but then again, your investment could be diluted if more investors are invited into the mix. Just to further complicate matters, most crowdfunds have no liquidity at all. This means it can be difficult, or even impossible, to claim back money or have it converted back into cash - a major drawback if you are thinking of an equity solution. Plus, there’s no secondary market where you can sell your shares, which means that - for good or bad - you’re locked in. This tends to exert downward pressure on investment values throughout the online funding model. On the other hand, for investors, lending money through debt crowdfunding gives the possibility of a regular income. There may also be the opportunity for dividend returns and some projects will pledge to return ongoing profits to investors. Getting the strategy right One of the secrets of using online funding platforms successfully is to see them as another weapon in your

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armoury, rather than as your one and only resource. The exception here is when you are a start-up or micro and want to attract a patchwork investment from scores of funders individually committing quite low investment values. A prime strategic use of online funding is when you want to broaden the existing investor base and you have already worked the local pool of investors dry. Similarly, you might be a mature SME and ready for significant expansion, but don’t want to go down the route of relatively expensive secondary finance from a bank. With online funding, you can shop around indefinitely for an offer that is better value. By the same token, beware of the idea that, disappointed with local investors, you’re likely to attract investors from distant international locations - you may, but they will know very little about you, and vice versa, and this diminishes the chances of finance even more.

For an online version, please visit: http://www.smeadvisor.com/groundlevel/join-the-crowd

GROUND LEVEL

The quest for liquidity How liquid is your business? Liquidity is the only real test of your ability to pay bills, retain staff, provide goods and services and ultimately keep the business together. Balance sheet figures such as revenue and profit are merely theoretical - can you pay your way or will you be left wishing you had deeper pockets? Paul Godfrey investigates what it takes to be liquid and why it matters so much.

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GROUND LEVEL

Quite simply, liquidity is the ability of a company to meet its short term obligations. It’s a very ‘real world’ measure of the business’ viability and defines the company’s potential to convert its assets into cash. The phrase ‘short term obligations’, generally signifies obligations which mature within one accounting year, but it also reflects the duration of one complete operating cycle: buying, manufacturing, selling, and collecting. Any business that cannot pay its creditors on time and cannot honour its obligations to the suppliers of credit, services, and goods is technically bankrupt. The lack of liquidity leads to an inability to meet the short term liabilities, thereby affecting the company’s operations, reputation and very survival. There is also a knock-on effect too, whereby lack of liquidity leads to a worrying downward spiral. For example, lack of cash or liquid assets may force a company to miss the incentives given by the suppliers of credit, services, and goods - which of course results in higher cost of goods, compounding the raft of financial problems and eroding profitability. Liquidity is defined by your needs While it is always important for a company to maintain a certain degree of liquidity, there is no standard norm that you have to follow, or a template that sets the right standards. This depends purely on the nature of the business, the size of operations, the business’ location, and so on. The liquidity levels required by a supermarket chain like Carrefour or Sainsbury are very different from those needed by a real estate agency, for example. The importance of protecting the appropriate level of liquidity means that every stakeholder has

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a major interest in the liquidity position of the company. For example • Suppliers of goods will check the liquidity of the company before selling goods on credit. • Employees need to know whether the company can meet its employees’ obligations regarding salary, pension, etc. • Shareholders are interested in understanding the liquidity due to its huge impact on profitability. (Bear in mind that from an accountants’ point of view, shareholders may not like exceptionally high liquidity as profitability and liquidity are inversely related). Managing your business’ liquidity position Liquidity is best understood by comparing Current Assets against Current Liabilities. A company can protect its liquidity position by financing its investments by a combination of current and long term sources. Some of the key strategies for enhancing the liquidity position include • Financing the current assets by current sources • Financing the current assets by long term sources • Financing non-current assets by short term sources • Financing non-current assets by long term sources It is also imperative to accelerate the rate at which funds are coming into the business. For example, it will pay wherever possible to have an efficient collection system for receivables - the fundamental priority here is to shorten your receivables cycles while lengthening your own credit terms with key providers. In other words, get the money in before it goes out! Facilities such as factoring, invoice discounting and Trade Credit Insurance can all help hedge against erosion in the business’

GROUND LEVEL

While borrowing can be a valuable way of boosting cashflow and liquidity, it comes at a price - and ironically, this can also serve to undermine liquidity in the medium term.

cashflow position. Remember, though, that these services do not come free of charge. You might be slowly eroding profitability by bringing them on board, and at the most extreme level, you could be diminishing control of your own decision-making when it comes to selecting core customers and markets, as the insurance providers will often cover only those invoices sent to ‘approved’ businesses. Liquidity and borrowing – a two-edged sword Amongst lenders in the GCC, about 45 per cent of all loans are given on the basis of improving a business’ working capital. In many other regions, this would be seen as ‘circular’ borrowing that in practice digs an even deeper financial hole for the business to climb out of. While borrowing can be a valuable way of boosting cashflow and liquidity, it comes at a price and ironically, this can also serve to undermine liquidity in the medium term. The cash that now infuses the business may be lent at rates as high as 19 per cent (in the case of secondary or tertiary finance from a high street bank). This means that if your business is working to an overall margin of around 25 per cent - very typical for an SME in the service sector, for example - you could now be forced to work with a six per cent margin for the next five years. This may not be an issue while the funds from the loan are still ample and buoyant - but for how long will that be the case? This is why many lenders choose not to lend against working capital objectives, but will only do so against strategic expansion initiatives. Here, the prospect of potential income grows exponentially, meaning that the cost of the loan will be redeemed rapidly and not be severely felt. Whereas in terms of lending for working capital, the overall ‘pot’ only remains the same.

The wise SME will typically tend to retain strong liquidity outside of the need to borrow, but will then borrow in order to explore new markets, make acquisitions or acquire new equipment which can then be refinanced as needs arise (and note that asset refinancing can be an excellent and cost-effective way to boost liquidity). In these ways, liquidity needs to be seen as the basic starting point for strategic decisionmaking within the SME, and the preservation of strong liquidity needs to be the determining factor in both day-today operations and future planning. Here’s a useful exercise: what impact did your company’s actions and activities today have on the business’ liquidity and its ability to its way?

CMY

For an online version, please visit: http://www.smeadvisor.com/groundlevel/the-quest-for-liquidity

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COMPLEXITY

TURNS LOYAL CUSTOMERS INTO FORMER CUSTOMERS.

SIMPLE

KEEPS THEM COMING.

It’s not about how much consumer data you have. It’s about how simple it is to put it to work for your customers. SAP helps bring together insights into every customer, and lets you engage them in the exact time, place and channel that’s right for them. So your customers feel cared for, respected and, most of all, delighted. That’s running simple. Find out more at sap.com/runsimple

fast four

Big Data is the large collection of data within your company that is a source of meaningful insights – which ultimately drives business growth and increases revenues. Of course, it goes without saying that these enormous data sets require careful attention and effective management to prove useful.

What is Big Data?

We present to you a compelling new section that explores four different, practical views on one topical SME issue. This month SME Advisor scoured through multiple sources of information and found four excerpts that summarise everything you need to know about Big Data… Top tips to consider: • Get some help. Don’t be averse to hiring an expert as a consultant. Be sure that they know their “stuff” and ensure that they are capable of mentoring people in your organisation. • Get training. Take classes, buy and read books, do research on the Internet, ask questions, and attend a conference or two. • Experiment. Plan to fail. Fast failure is becoming de rigueur for contemporary technology-driven organisations. The best lessons learned often come from failures. • Set proper expectations. In the business world, properly set expectations can mean the difference between success and failure. Big data offers huge potential to your business only if you accurately represent the value, costs, and time to implement. • Be holistic. Try to look at all the dimensions. If the project is delivered on time and on budget, but the end users weren’t trained or ready to use it, the project may fall into failure. Source: http://www.dummies.com/how-to/content/how-to-create-abig-data-implementation-road-map.html

One topic

Implemen tation of Big Data

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fast four

Why is Big Data important?

four expert opinions How does it affect my SME?

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Big data is a way to preserve context that is missing in the refined structured data stores — this means a balance between intentionally “dirty” data and data cleaned from unnecessary digital exhaust, sampling or no sampling. A capability to combine multiple data sources creates new expectations for consistent quality; for example, to accurately account for differences in granularity, velocity of changes, lifespan, perishability and dependencies of participating datasets. Convergence of social, mobile, cloud and big data technologies presents new requirements — getting the right information to the consumer quickly, ensuring reliability of external data you don’t have control over, validating the relationships among data elements, looking for data synergies and gaps, creating provenance of the data you provide to others, spotting skewed and biased data. Source: Gartner

Hot topic this month: Big Data

Using Big Data, SMEs can make their work processes more efficient. More importantly, they can use it to drive revenue. Data collected can be converted into useful business intelligence and shared with top management. This helps senior executives in their decision making process, understanding customer behaviour and monitoring employee performance. For instance, if you run a local coffee shop, you can keep track of frequent orders which will help the kitchen know what supplies they need to be prepared with beforehand. Another good example is that of a small garage that records the time spent at each stage of repair. This information will help managers identify processes that require the most time. It can also be used to check employee efficiency and revise prices based on the time spent on each task.

Welcome to a momentous occasion:

An insider’s view to SME Beyond Borders #RethinkSuccess

In this full-length memento profile of SME Beyond Borders #RethinkSuccess, let’s begin by setting the scene and clarifying exactly what the Beyond Borders occasion was created to do. Many people misunderstand what our giant year-end event is all about, and that’s quite understandable. It would be easy to suppose that because SME Advisor creates a wide variety of events throughout the year, including the Vision round tables and the Success Series one-day conferences, the big yearend event (which used to be called the ‘Summit’) is simply a bigger and better version, with glamorous speakers and a full-length agenda. Yet in fact that it isn’t the motivation at all, The SME Beyond Borders event was created to address a particular key theme each year and to be able to do so in rich detail, offering real analysis and bringing forward a lot of primary, unpublished data, presented by speakers of unrivalled quality and innovation. It aims to be a ground-breaking occasion that looks at the leading players - and their environments - in a particular thread or sector of the international SME galaxy. In a one-day format, it brings together the key debates and strategies

underlying exceptional SME performance and shows how today’s complex economies bring challenges, change - and immense opportunity. So, for example, last year, SME Beyond Borders focused on the idea of the West-East Corridor – the collaborative community of developing nations spreading from Indonesia to Namibia and offering superb potential for cross-border trade, finance and collaboration. Now, this year, the idea throughout the event is the power to ‘Rethink Success’ - the concept here is that the old CAPEX models of business growth are rapidly becoming redundant and entrepreneurs are making millions from radical new approaches empowered by technology and a disruptive approach to conventional commercial templates. Some of the people using these new methodologies are social entrepreneurs, others world-class technocrats, others young business graduates. The fact is that all of them are doing things in a way that is so compelling, so successful and so plain disruptive - that we either learn the lessons or get left behind. Throughout the day, this year’s SME Beyond Borders asks regional SMEs a series of powerful questions. Can your

business ride the tide of change and deliver • Global standards of innovation and product offer? • First-class technology solutions? • A commercial template that leverages the new ability to create a business infrastructure without excessive upfront costs? • A disruptive business model that subverts competitors by turning the playing-field upside-down? SME Beyond Borders examines what it takes to stand out from the crowd and deliver exceptional results. It takes a worldwide snapshot of top performing entrepreneurs who each have businesses protocols and criteria dramatically different from the norm - and it translates their experience and expertise into practical strategies that your business can adopt right now. Four sessions - and four catalysts to #RethinkSuccess This year’s event is structured across four sessions that each tackle a different aspect of the SME experience as businesses endeavour to embrace changing times, technologies and business models.

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SME BEYOND BORDERS

Opening Keynote

HE Hani R. Al Hamli

Alex Thursby

Secretary General, Dubai Economic Council

Group CEO, National Bank of Abu Dhabi

Session One: Digital Disruption As four speakers tackle different aspects of Disruption, we see that the changes around us are fundamentally driven by Innovation. This can take many forms - from the ingenuity of creating extraordinary online funding systems, understanding customer buying habits at a nano level or the power of a business to achieve full mobility and replicability of data across every office and department. Factors like Cloud, Big Data, Analytics, Connectivity and the Internet of Things are now omnipresent and they are the keys to understanding why disruption is happening so fast and why it didnâ&#x20AC;&#x2122;t happen before. This session shows throughout how the digital revolution can unleash quantum change in your business and put you light years ahead, bringing real lessons from a cluster of the worldâ&#x20AC;&#x2122;s leading pioneers in disruptive business culture.

Salvador Anglada Chief Business Officer, Etisalat

Patricia Pena Director of Payments and Fundraising Operations, Wikimedia Foundation

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Dave Troy

Paolo Privitera

CEO and Product Architect, 410 Labs

CEO and Founder, Pick 1

SME BEYOND BORDERS

Session Two: the SME I.O.S (Identity, Opportunity, Sustainability) Here we look at the macro view – how the working context of the SME is changing so dramatically and the power of the radical new opportunities that these moves are now opening up. The session examines factors such as the culture of the so-called ‘free zone’ and why it’s proven to be such a major catalyst in developing economic diversification in the UAE. What are the factors that make a particular free zone more appealing than another and what is the best kind of eco-system to prosper in? Plus, in terms of developing a beneficial ecosystem, we look at the forthcoming Expo 2020 and the chain of opportunities that it will bring. Yet how will businesses avail themselves of the competitive tenders and learn how to effectively play a role in public-private partnerships? These are the factors at the root of this session. At the upper echelons of the macro view is the vision of a nation itself - and none has proved more cogent for SMEs than that of Singapore. We hear from a prime mover and expert in the nation-state’s commitment to SME culture and discover the ‘Factor X’ that breeds the most fertile operating territory.

Krysta Fox Director – Freezone, DMCC

Dan Dimmock Principal Brand Consultant

Christina Lee Founder and Managing Director, Global Green Economic Consulting Pte

Marjan Faraidooni VP – Legacy, Expo 2020

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SME BEYOND BORDERS

Session Three: Be inspired! Four presentations from individuals who have truly conquered the SME space and whose stories break all boundaries in terms of perseverance, insight and - above all - relevance to the ‘real life’ context of the SME. Each of the four presenters has something remarkable - something inspiring - to say: a dialogue that will be a catalyst for change in everyday lives and kickstart a higher level of business enterprise. The four personalities cross the divide between the remarkable and timeless power of the ‘rags to riches’ story, and young social entrepreneurs deploying technology to help millions in disadvantaged settings and cultures.

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Rizwan Sajan

Anielle Guedes

Founder and Chairman, Danube Group

Founder, Urban 3D

Manuel Antonio Aguilar

Olimpia Tabbach Mascolo

Founder and President, Cassa

Co-Founder, Mohammed Hilal Group

SME BEYOND BORDERS

Session Four: The SME Academy The SME Academy has been created to provide very real-world solutions for SMEs in need of core skills-building. The reality is that while the SME sector currently delivers 62 per cent of UAE GDP, if it is to deliver the power and speed of growth required by documents such as the Abu Dhabi Economic Vision 2030, many SMEs are in urgent need of more basic skills in key operational areas. Yet while everyone keeps telling SMEs that they need more skills, more structure, more credibility and more strategy, until recently, very few entities were doing anything about it. The figures tell a worrying story • 27 per cent of SMEs don’t have any form of company accounts • SMEs in the GCC are only half as productive as those in Singapore and the USA • 80 per cent of SMEs in the UAE don’t understand the need for Corporate Governance

SME Advisor combined forces with a market leader in the SME universe, the National Bank of Abu Dhabi and created an innovative solution for the practical, day to day needs of the region’s SMEs: the SME Academy. The SME Academy is a one-stop online resource combined with a series of practical workshops. It’s designed to supercharge business performance by giving hands-on guidance where it will make a difference to the bottom line. This session not only introduces the role and track record of the SME Academy since its pilot launch in September, but looks more deeply at the role of education in the SME space and the need to encourage businesses across the region to build core management skills. There is not only a keynote head-to-head with a noted billionaire who has become a major funder of schools and colleges, but we hear from the world’s leading customer service guru about how businesses can learn the best and most practical skill of all - how to please a customer.

Mohan Valrani Senior Vice Chairman, Al Shirawi Group

Ron Kaufman World-renowned customer service guru

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//DIGITALLY DISRUPTIVE

Delivering tomorrowâ&#x20AC;&#x2122;s SMB solutions - today At GITEX Technology Week 2015, Etisalat demonstrated its market-leading offer with powerful, inspirational glimpses into the smart technologies that businesses can use to leverage critical change and disrupt existing markets for maximum results. Powerful benefits confirmed by the signing of landmark MoUs with Fujairah Free Zone and the Al Ain Department of Economic Development.

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//DIGITALLY DISRUPTIVE

Everyone has heard about the disruptive changes we see all around us - changes fuelled by technology and the power of Innovation. Factors like Cloud, Big Data, Analytics, Connectivity and the Internet of Things are transforming business opportunities; but they’re also posing worrying challenges for late-adopting SMBs. So there’s no better venue for getting up to speed with developments than GITEX Technology Week, held annually at the Dubai Trade Centre Exhibition complex, and bigger and better than ever in 2015. Etisalat, as leading telecoms provider in the Middle East and Africa, had an event-leading presence and a stand dedicated to explaining the critical benefits of the new disruptive culture and its key elements. Many commented that the glittering, remarkable stand was a glimpse into the future, which indeed it was, but a number of the breakthroughs displayed are also available today. Businesses and consumers could learn

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in detail about developments across key sectors such as: • Internet of Things (IoT) • Virtual Shopping • Mobile Commerce • Connected Vehicles • Smart Parking • Smart Healthcare • The Cloud & Big Data • Next Generation Schools • Total Connectivity SMBs could meet with Etisalat experts to discuss real business needs and how business aspirations - like the goal of complete mobility, instant data access and manipulation, customer analytics and IT-empowered global outreach - are all achievable goals. Plus, there was no shortage of aweinspiring science: take the example of a connected desert buggy led by a vastly-sophisticated drone. Not only did the drone’s intelligent cameras give awesome navigational power but the

Small and medium businesses, especially start-ups, fuel the economic engine of a nation. Etisalat is the ideal partner of choice for this segment in the UAE and we are committed to making the telecom and ICT connectivity a seamless experience for our business customers. 31

//DIGITALLY DISRUPTIVE driver experience was richly enhanced via sensors in high tech apparel - giving feedback data across the raft of vital health measurements. Or the instant availability of headsup data via a powerful microprocessor embedded in the arm of designer sunglasses. Or the most comprehensive relationship marketing tools able to interpret customer demographics and footfall to a nano level. That’s not to forget a complete section of the stand dedicated to robotics, where we could see the powerful advancements in robot technology, progressively closing the gap with humans in terms of movement and mobility. Plus, demonstrations showed how robots can execute not only manual tasks, but selection criteria not too far removed the job description of managers in a professional services business! There were also powerful exhibits of life in a ‘smart’ hospital - where micro-technology can make surfaces self-cleaning and bacteria resistant. Then again, many visitors were fascinated by the smart parking experience that even owners of today’s highly-automated supercars would find hard to believe! These are the tools of the new collaborative environment. A world that presents SMBs with a colossal opportunity. Etisalat’s stand took businesses on a digital journey, providing a genuine roadmap for their technology empowerment. Commitment to SMBs with a landmark MoU On Monday, October 19th, in the perfect setting of the GITEX event, Etisalat announced its strategic partnership with Fujairah Free Zone. This highlights a new partnership to provide an improved telecom and ICT service experience to customers of Fujairah Free Zone Authority. The Memorandum of Understanding (MoU) was signed by Salvador Anglada, Etisalat’s Chief Business Officer, and Sharief Habib Al Awadhi, Director General (CEO) of Fujairah Free Zone Authority. The strategic partnership falls in line with the UAE’s goal to become a leading

business hub, making it supremely convenient and easy for businesses to set up in the UAE. Importantly, it will enable business connectivity, and increase SMB competitiveness, helping place the UAE high on the IT readiness and competitiveness index. Salvador Anglada said, “Small and medium businesses, especially start-ups, fuel the economic engine of a nation. Etisalat is the ideal partner of choice for this segment in the UAE and we are committed to making the telecom and ICT connectivity a seamless experience for our business customers. We are particularly excited about our deal with Fujairah Free Zone. It gives us the opportunity to join hands with them to cater to investor and business needs of reachability, transparency and value for money. It lets us target this segment better and help it grow by making our technology work for these businesses.” As part of the agreement, Etisalat will cater to business customers who are also investors in Fujairah Free Zone, by developing exclusive promotions and packages based on specific and individual business needs. Sharif Habib Al Awadhi said, “Through our partnership with Etisalat, we are keen to provide our tenants and investors best-in-class services and connectivity.” This breakthrough agreement followed on the heels of another keynote MoU, which saw Etisalat extend its partnership with Abu Dhabi Department of Economic Development to include the Al Ain branch. This was in order to develop advanced telecom and ICT services and applications, helping the entity better serve Al Ain’s growing business community. Salvador Anglada and Ali Al Nuaimi, Director of Commercial Relations Department, Al Ain Department of Economic Development, endorsed the extension of this strategic partnership between the two entities, providing considerably enhanced reach to the business community in Al Ain. Commenting on the signing of the MoU, Salvador Anglada said, “The UAE’s position as the region’s business hub is becoming stronger. Keeping with these dynamic changes, IT and telecom needs

of businesses are also evolving at a fast pace. Small and medium businesses in particular need solid connectivity to boost their reachability, transparency and competitiveness. “We partnered Abu Dhabi Department of Economic Development last year, and are thrilled to extend this partnership to its branch in Al Ain. We believe that Etisalat’s sophisticated telecom and IT services and solutions will support Al Ain DED help grow businesses in the city.” Through the agreement, Etisalat will develop advanced solutions for the effective flow of information that will facilitate and simplify procedures across Al Ain Department of Economic Development. Moreover, the week-long GITEX event saw Etisalat develop several strategic partnerships with local, regional and international partners, in the context of an engagement designed to showcase and explain the remarkable possibilities of the new disruptive business opportunity.

For an online version, please visit: http://www.smeadvisor.com/tech/deliveringtomorrow’s-smb-solutions-today

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MOVERS & shakers

Krysta Fox, Director of Free Zone, DMCC

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MOVERS & shakers

Global Free Zone of the Year: DMCC

AT THE HEART OF DUBAI’S GROWTH, DMCC CONTINUES TO BE A GLOBAL GATEWAY FOR TRADE AND ENTERPRISE. THE SUCCESSFUL TRANSFORMATION OF ITS FREE ZONE IS PERHAPS THE REASON WHY DMCC WAS VOTED “GLOBAL FREE ZONE OF THE YEAR” BY THE FINANCIAL TIMES FDI MAGAZINE. SME ADVISOR HAD THE PRIVILEGE TO MEET THE WOMAN AT THE FOREFRONT OF THIS SUCCESS – KRYSTA FOX, DIRECTOR OF FREE ZONE, DMCC.

First things first. Congratulations on the prestigious accolades you have been honoured with. What do these titles and awards mean to you? What are critical success factors leading to such recognition? It’s always a thrill to be recognised. What’s special about this title is that it is a genuine recognition of DMCC’s core value, which is supporting its members to be as successful as possible. If you are business operating within DMCC, we not only help you create connections in the UAE but also across the wider regional and global community. We genuinely, honestly listen to what our members have to say. They are the most important individual stakeholders for us. Addressing their concerns and prioritising our projects based on their needs is essentially at the

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core of our overall offering. Let me explain with an example – earlier last year, we conducted a survey asking our members to share their feedback; we received an 89 per cent satisfaction rate. This exercise helped us understand not only what works for our members, but also what doesn’t. I think it is such interaction with the DMCC member community – as well as the wider SME sector – that has contributed to us being honoured with such an accolade.

Don’t you think the role of the free zone is underestimated in today’s global economy?

There is a huge emerging recognition of the roles that Special Economic Zones or Free zones are playing in the international landscape. If you look at the DMCC alone, we contribute

MOVERS & shakers

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Our digital portals provide a one-stop-shop solution to our members; in fact, more than 50 per cent of member services can be completed online within the same day!

almost 10 per cent of Dubai’s GDP, and that’s having set up only in 2003. The reality is that free zones provide an open business environment, acting as a catalyst for trade opportunities.

What do you personally regard as the ‘X factor’ that makes DMCC such an attractive proposition? I would say the ‘X factor’ is integration, and this is true in many ways. We provide seamless integration between physical and digital platforms. Our digital portals provide a one-stop-shop solution to our members; in fact, more than 50 per cent of member services can be completed online within the same day! Another great example of integration is that we strongly encourage our members to integrate global best practices within their organisations.

For instance, we understand that SMEs don’t have the time to develop their own corporate governance systems. They require one that has already been developed for them. We create efficient systems by partnering with the right people to readily provide this to them.

What are some basic prerequisites that companies need to consider before setting up in DMCC? I should also add here that our company registration process is completely online – we’ve become streamlined, sleek and paperless. Companies are able to speak to a dedicated key account executive who can talk to them about the type of business they need register under. Our professional team will identify if your business proposal is viable and suitable to operate

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MOVERS & shakers

We register around 500 business activities in DMCC – this is one of the broadest range any free zone offers in the world.

within a free zone environment. We register around 500 business activities in DMCC – this is one of the broadest range any free zone offers in the world. This is followed by a proper conversation regarding the structure of the business, the shareholders involved, the company’s plan for growth and the office solutions they are looking at.

How do you help a company transition smoothly from a start-up stage to a mature growth-stage?

We’ve experienced that a lot of companies that work with us are rapidly growing and naturally their needs in terms of office space are evolving. If a business goes from being a 10-member company to a 50-member company, we match them with solutions they need straightaway.

buying power of 40,000 employees that they would otherwise never have.

On a global scale, how would you rate DMCC as an innovator? Is innovation part of your overall development strategy? Innovation underpins our overall strategy; we innovate in order to meet the requirements of our customers. It includes customers that we have today and the customers that we are going to have in future. We understand that we have to be efficient enough to be able to handle the massive growth that we are experiencing. Three years ago we had about 3,000 member companies. Today we have almost 11,000 firms. In order to triple in size in just three years, you have to make sure that you keep ahead of the rest of the market.

DMCC is often described as the ‘Free zone for SMEs’. What would you say about this? DMCC first started out as free zone for SMEs. What’s remarkable is that this was followed by a large intake of corporates and MNCs. We are so proud that we developed this free zone working with SMEs. I truly believe that this was the right start for us and we won’t ever forget that we built our success working with SMEs. This is the reason why we continue to provide specialised services for them. For example, having partnered with one of the best insurance brokers in the region, DMCC is able to bring its member companies the

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For an online version, please visit: http://www.smeadvisor.com/movers-shakers/ global-free-zone-of-the-year-dmcc

MOVERS & shakers

Everything you need to know about... Corporate tax and VAT in the UAE

How will the introduction of corporate tax and VAT affect the UAE’s competitiveness?

The UAE’s strong economy, growing market, efficient government, free zones and its move towards becoming a smart city are aspects that draw investors to the country and will continue to remain high on the list of deciding factors for inbound investments. Despite these, the government should implement incentives such as tax breaks for investors and entrepreneurs looking to set up their business in the UAE. The government could also consider keeping the UAE’s free zones tax free as an added incentive; however, practical implementation should be taken into consideration. Tax is not the only key factor for attracting in-bound investments. However, it could be argued 38

implementing taxes in the UAE may urge investors to look at other developing markets such as Asia and Africa; however, we must bear in mind that these countries already have indirect tax, corporate tax and income tax systems in place.

What are the pros and cons of introducing corporate tax and VAT in the UAE?

The introduction of any new taxation system is a major change and individuals and organisations, as well as the government itself, are going to take some time to adapt to any new system. It is important to provide proper guidance and support to all the UAE businesses to acquaint themselves with the requirements. Further motivation in the form of a reasonable adjustment period, trainings and revenue threshold

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MOVERS & shakers

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MOVERS & shakers

Any revenue collected through corporate tax and VAT will support the government to sustain the UAE’s development pace and fuel the economic growth agenda in the long run. Nilesh Ashar, Partner, Head of Tax, KPMG in the UAE

exemptions has to be provided to businesses in order to facilitate transitioning to new tax system and preserve the business attractiveness of the UAE. Any revenue collected through corporate tax and VAT will support the government to sustain the UAE’s development pace and fuel the economic growth agenda in the long run.

What do you foresee as some short to medium term implications of VAT and corporate tax implementation in the UAE? Businesses may find the initial transition to a tax system cumbersome as it’s a big status quo change for them. In the short term, businesses will have to make changes to their operating models in order to manage the cost of taxes which will impact their profit margins, or adapt the model to pass on the burden of taxes onto the consumer. Firms will have to internally asses their systems and skill/capabilities to deal with the tax changes. In the medium term, the implementation of VAT will help increase government revenue and therefore help further their infrastructure and economic development goals.

How will this impact business in the UAE – particularly SMEs?

As mentioned earlier, this move will certainly increase the cost of doing business and the cost of compliance for SMEs in the UAE. The incremental cost and requirements associated with taxes needs to be 40

carefully budgeted/factored in the business models. Apart from that, all the above mentioned implications will be applicable to SMEs as well. However, it needs to be seen whether SMEs are indirectly excluded because of a higher threshold value for registration for VAT purposes.

What are some of the earlystage action-points that businesses need to bear in mind to stay ahead of the curve? In other words, what can a business do to be ready?

Taxes could potentially impact all businesses in the UAE, either directly or indirectly. Businesses should carefully review their processes to understand the impact of taxes and to determine what needs to be done to be fully compliant with any new laws. Although we have few details of the intended tax laws, the UAE’s Ministry of Finance recently clarified a number of issues through its website, including confirmation that there would be an 18 month adjustment period for VAT implementation and 12 months adjustment period for corporate tax implementation by the businesses. It’s very difficult to suggest anyone should make radical changes in response to an unpublished law. However, companies may undertake few actions to be ready for the changes, E.g. Continue monitoring tax developments and updates, assess the financial impact of corporate tax at and VAT, internally review financial systems to assess overall tax readiness and map possible changes to accounting systems, map intra-group transactions and dependencies,

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MOVERS & shakers

prepare revised financial statements for prior year comparison when taxes are eventually introduced, revisit contract clauses dealing with price and taxes (change in law clause, taxes inclusive/exclusive), quantum of tax to be passed on gross or on net basis, and assess your organisationâ&#x20AC;&#x2122;s tax awareness, especially in the finance function.

How can businesses assess internal awareness and compliance prior to the introduction of corporate tax and VAT?

Clear communication is essential to ensure effective compliance, every single employee should be aware of how the business model has to change in order to incorporate taxes. Budgets need to be carefully planned in advance to reduce and/ or manage the financial impact of taxes. Further, businesses should conduct a careful review of the processes and assess tax resource capability to understand the impact of the tax as well as to determine what should be done to prepare to be fully compliant.

one-off marginal inflation impact. Businesses may consider to absorb the VAT wholly or partly initially to ease the burden on the consumer and to avoid consumers (individuals and businesses) from looking for a bargain elsewhere.

Given the fall in oil prices, will the introduction of corporate tax and VAT help diversify the economy?

The decision to implement tax is certainly going to help diversify sources of revenue for the government. The volatility of oil prices in recent months has led the UAE government to look at other steadier sources of revenue, which include VAT and corporate tax. Most nations have adopted a tax system in order to boost their revenue, which ultimately is invested into the growth of the economy. The decision to implement taxes will eventually help the UAE move towards becoming more developed, however the government should ensure that there are sufficient education programmes for businesses in order to ease the transition.

How is the introduction of VAT likely to impact consumers, their spending and Dubaiâ&#x20AC;&#x2122;s retail sector?

The UAE government could implement VAT at a lower rate (suggestions from IMF - below five per cent). If the rate is relatively low, it should not impact consumer prices to such an extent that it would discourage purchases, however consumers will feel a

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For an online version, please visit: http://www.smeadvisor.com/movers-shakers/ corporate-tax-and-vat-in-the-uae

MOVERS & shakers

The aroma of success

Man’oushe Street

How does a start-up create a niche for itself in a competitive industry landscape, and go on to become one of the region’s most popular food chains? We asked Jihad El Eit, Founder of Man’oushe Street, to share highlights of his successful entrepreneurial journey…

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MOVERS & shakers

Jihad El Eit, Founder of Manâ&#x20AC;&#x2122;oushe Street

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MOVERS & shakers

In today’s evolving business landscape, it is so important to stay abreast of the changing dynamics – you have to be involved within your business 24/7; there is no downtime!

ushe’ The origin of ‘Man’o Man’oushe is a traditional Lebanese breakfast which comprises of two main ingredients: cheese and thyme. It is known to be rolled out on a wooden board and prepared in a conventional brick oven. Over time, is has evolved to include several other ingredients such as vegetables and meat.

What inspired you to build Man’oushe Street? For us, Man’oushe is synonymous to the traditional Lebanese breakfast or snack item that you would get at small family-run corner bakeries. The idea was to take this homemade concept and make it available to all. We wanted to keep the authenticity of the recipe, but still elevate it to the next level. That’s how Man’oushe Street was born. We take immense pride in the world-class quality of our menu offerings and our commitment to excellence that is reflected in how we prepare the food to the way we deliver it to your doorstep — true value for money.

Did you undertake any market research? Yes, absolutely! As an entrepreneur, it is significant to do your homework and ascertain the direction you want to take your company in. After we successfully opened our first two branches in Mizher and Barsha, I started looking at global F&B models and studied the critical factors driving their growth. I should also add here that market research is just the first step, you need to be able to take calculated risks as well.

How many locations does Man’oushe Street currently have? We have 24 locations across the region out of which 12 are companyowned locations here in the UAE. We are also operating across Egypt, Kuwait and Qatar. Our vision is to

be available on every street and to cater to every customer that likes Man’oushe. The plan is to add another 10 locations by 2016 and continue our fast-paced expansion. The important thing to note is that we aren’t just looking to rollout more locations, we also want to ensure top-quality food and customer satisfaction.

How do you ensure that your core offer stands out in today’s competitive F&B market?

There are countless concepts available today but we believe we are different because we are the ‘recipe of the people’. We are strongly investing in our people – the team of Man’oushe Street. Yes, our food is great – of course that is the core concept, but it is the team behind the food that makes us so successful.

What do you consider as critical factors contributing to your company’s success?

I think there are three fundamental factors driving our growth. They are: quality of our food and service; professionalism of the staff; and the locations of our outlets.

Are you also looking into franchising?

Eqypt, Kuwait and Qatar are markets we currently have franchising operations in. We are working very

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MOVERS & shakers

Company profile:

Man’oushe Street Manoushe Street is a popular Middle Eastern eatery serving traditional home style street food. Established in 2010, Manoushe Street aims at serving food that connects tradition with the fast paced lifestyle of people today. The company offers a wide range of nutritious meals like manakeesh, bureks, wrap sandwiches, pizza and sweets, which is prepared extensively by infusing traditional home cooking practices and modern day innovations for a perfect healthy meal.

closely with a consultant from the UK to understand the nuances of running franchises. After five years of running local operations, we finally felt confident to start franchising and it is a model that has worked very well for our business.

What are key challenges you are faced with as you look to take Man’oushe Street to the next level?

I’d like to thank all our customers for their incredible support and love towards the brand. We are extremely grateful for their acceptance and for making Man’oushe Street a ‘household’ brand.

As the leader of a popular F&B brand, what keeps you motivated?

As you grow, the biggest challenge is to maintain quality – both in terms of the food we serve and customer service. Real estate is another critical factor; we need to be present at the right locations within the region to dominate the retail space.

In today’s evolving business landscape, it is so important to stay abreast of the changing dynamics – you have to be involved within your business 24/7; there is no downtime! Moreover, the Man’oushe Street team is so energetic; almost every day one of my team members approaches me with a new business idea or a fresh recipe – it is this kind of passion and excitement that essentially keeps me going.

Is there a message you’d like to share with your customers?

How do you see the brand shaping up in the next year?

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We are constantly enhancing our menu and will look to uplift the menu options by the end of 2015. Of course we are continuously striving to increase the awareness of our brand and the delicious food we offer. We also have a team dedicated to innovation strategies that helps us evolve and stay ahead of the curve.

What advice would you give to aspiring entrepreneurs in the region?

A comfortable life will not take you to the next level. If you have a dream, just go out there and achieve it. Don’t be scared, stay confident and surround yourself with the right people.

For an online version, please visit: http://www.smeadvisor.com/movers-shakers/ aroma-of-success

MOVERS & shakers

A meeting with global leadership guru

Jim Kouzes

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MOVERS & shakers

Today, leadership has many definitions and interpretations. What is your definition of leadership? Great leadership is the skill that underpins the success of any organisation. Leadership makes a meaningful difference in people’s engagement at work and in the performance of an organisation. From our research we found that leadership contributes more to positive outcomes than any other single factor in an organisation. Great products, great strategy, great people are absolutely critical but with poor leadership they produce only a third to a half of their potential.

There’s the ongoing debate on leaders being born vs. made i.e. nature vs. nurture. What is your take on that?

Leadership is not some mystical quality that only a few people have and everyone else doesn’t. Leadership is not preordained. Neither is it the private reserve of a special class of charismatic men and women. Leadership is not a gene. Neither is it a trait. There is just no hard evidence to suggest that leadership is imprinted in the DNA of some people and not others. We’ve collected assessment data from millions of people around the world. And we can tell you without a doubt that there are leaders in every profession, every type of organisation, every religion, every country, from young to old, male and female. It’s just a myth that

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leadership can’t be learned—that you either have it or you don’t. There is leadership potential everywhere we look.

Tell us a little about your bestseller – The Leadership Challenge. My co-author Barry Posner and I wrote The Leadership Challenge based on our extensive research into leadership over more than thirty years. First published in 1987, it has sold more than two million copies worldwide and is available in more than twenty-two languages. The recently updated 5th edition (The Leadership Challenge: How to Make Extraordinary Things Happen in Organisations, Fifth Edition) puts our work in context for today’s world, proving how leadership is a relationship that must be nurtured, and most importantly, that it can be learned. We’ve included over 100 new case studies and examples, which show The Five Practices of Exemplary Leadership® in action around the world. The book focuses on the toughest organisational challenges leaders face today and addresses changes in how people work and what people want from their work.

Your book talks about approaching leadership as “a measurable, learnable and teachable set of behaviours”. Could you elaborate further?

Approaching leadership as a measurable, learnable, and teachable set of behaviors, Barry Posner

Jim Kouzes, a bestselling author, an award-winning speaker and, according to the Wall Street Journal, one of the twelve best executive educators in the United States is scheduled to speak at the HR Summit in Dubai on 18 November 2015. The speaker is published by Wiley, a learning business that helps people and organisations develop the skills and knowledge they need to succeed.

MOVERS & shakers

and I developed The Leadership Challenge® framework which grew out of rigorous research that first began in 1982. Now known worldwide as the most practical model of leadership development, The Five Practices of Exemplary Leadership® continues to prove its effectiveness in cultivating leadership in any organisation. It starts with a simple leadership assessment, the LPI®: Leadership Practices Inventory® - over three million people have taken this first step and gone on to integrate The Leadership Challenge® into their organisation and to significantly improve the quality of their leaders. The Leadership Challenge® enables leaders to engage with their organisations’ strategies more effectively, giving them the tools and capabilities to lead their internal teams as well as external stakeholders towards shared goals.

As a business owner, how does one integrate a culture of leadership within the organisation?

In our experience exemplary leaders make a commitment to strengthen others. They enable people to take ownership of and responsibility for their group’s success by enhancing their competence and their confidence in their abilities, by listing to their ideas and acting on them, by involving them in important decisions, and by acknowledging and giving credit for their contributions. Creating a climate in which people are fully engaged and feel in control of their own lives is at the heart of strengthening others.

For a business owner looking to assess his/her abilities as a leader, what are the first steps? How does one get started?

Before you can assess your capability as a leader, you first need a framework for that assessment. We happen to use the five practices of exemplary leadership model. Recognising that the practice which seems to make us most uncomfortable is asking others for feedback, start there. Based on that feedback, you’ll get a profile of where you’re strong and what you need to work on. Then, set improvement goals and create designed learning activities, whether it’s one-on-one learning, reading, observing others, or seeking specific experiences. Pick a method for your development plan and follow it. And then it’s just reiterating that cycle many times over. But make sure you pay as much attention to the activity and the technique as you do to the outcome. Yes, you have goals to improve, but also focus on getting the technique right, whether it’s interviewing, negotiation, or presentation skills. Another important point about developing expertise is that you have to practice a lot to become an expert. If you compare experts to average performers, the research suggests that experts log about twice as many hours compared to those who are average.

What are some common mistakes that you see business leaders make and how can they overcome them?

Credibility is the foundation of leadership. When we asked people to tell us what credibility is behaviorally, the answer was some version of “do what you say you will do,” or DWYSYWD for short. When leaders put their values into action and set a positive example they build and sustain their credibility. So, any time any one of us does not follow through on a promise or does not live up to the values we espouse, we are, in effect, setting a bad example and losing our credibility. This applies to friends, parents, teachers, coaches, first line supervisors, as well as to senior executives in corporations, government agencies, nonprofits, and NGOs. We all need to be mindful of being consistent in our words and deeds.

Can you share with us a brief overview of the five fundamental practices that can help achieve extraordinary leadership development? Barry Posner, my co-author, and I have been researching personalbest leadership practices for over 30 years, and we identified The Five Practices of Exemplary Leadership® that account for what leaders do to address the major challenges, engage constitutes, and improve performance. We discuss these in our book, The Leadership Challenge, now in its 5th edition. These practices are: • Model the Way - Exemplary leaders clarify values and set an example based on a set of shared values. • Inspire a Shared Vision - Exemplary leaders envision an uplifting future and enlist others in a common vision. • Challenge the Process - Exemplary leaders search for opportunities and experiment and take risks, learning

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MOVERS & shakers

Great results in the market place and in the community can only come about from making extraordinary things happen within your organisation.

from the accompanying mistakes. • Enable Others to Act - Exemplary leaders foster collaboration and strengthen others. • Encourage the Heart - Exemplary leaders recognise contributions and celebrate the values and the victories.

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

“Love ‘em and Lead ‘em” – When we first began to research leadership the last thing that we expected was the frequency with which the people we spoke to used the word love. But it makes sense – leadership is a relationship, no matter what the circumstances. Of all the things that sustain a leader over time, love is the most lasting. The best kept secret of successful leadership is love: staying in love with leading, with the people who do the work, with what their organisations produce, and with those who honour the organisation by using its products and services

had time for his family. I learned from him the values of hard work, patience, family, trust, learning, treating others with dignity and respect, duty, honor, and patience. He was a very patient man.

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

Great results in the market place and in the community can only come about from making extraordinary things happen within your organisation. They key is great leadership. There is overwhelming evidence that great leadership creates great workplaces and in turn great workplaces create great results. So if you want better results in your workplace or your community you have to ensure that you are working on fostering great leadership within your organisation.

Your books and seminars continue to inspire many individuals and businesses. Who is your personal inspiration or role model? At the top of my list is my father, Tom Kouzes. He was the oldest of ten kids, grew up poor, and had to get all of his education at night after work. After serving in World War II he became a civil servant and started as a file clerk. When he retired from the Civil Service he had risen to Deputy Assistant Secretary of Labor for the United States government. He was a very, very hard worker, and yet he always

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For an online version, please visit: http://www.smeadvisor.com/movers-shakers/ global-leadership-guru-jim-kouzes

MOVERS & shakers

REDEFINING ENTREPRENEURIAL SUCCESS:

ANIELLE GUEDES

Very rarely do you get a chance to interact with a world-class entrepreneur who is truly dedicated to changing people’s lives using a unique, innovative product or solution. SME Advisor was delighted to meet Anielle Guedes, Founder and CEO, Urban3D – a young entrepreneur who is using 3D printing technology to solve the global housing challenge. Anielle’s radical thinking, long-term vision and passion for sustainability have won her many accolades worldwide. We are extremely proud to present the following excerpts from our exclusive encounter…

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MOVERS & shakers

Anielle Guedes, Founder and CEO, Urban 3D

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MOVERS & shakers

We are currently bringing additive manufacturing and digital fabrication to the construction sector as a new construction method, which makes the process cheaper, cleaner, faster and more sustainable, so our main approach with traditional companies is a pledge for efficiency.

Tell us about your company and how it came about. Urban3D started in a Graduate program I did at NASA Ames in California last year in which we were challenged to use an exponential technology to address a global challenge and I decided to tackle infrastructure, and we’re especially focused on affordable housing.

What does Urban3D aim to achieve? What is your mission? Urban3D aims to lead the movement on sustainable urbanisation powered by technology and our mission is to create spaces where resilient communities can thrive and live well.

What inspired you to start your own business? What particularly led you to create housing components?

I come from a family of immigrants who created their own businesses in order to have a better life so, I guess the idea of having my own business was enrooted in my mind and family culture. What led me to creating housing components was the experience I had in 2012, while I worked for MIT in a development programme, in which I lived in five different slums in São Paulo. That exposure to a brutal reality totally changed my perspective on cities, infrastructure and what we would need to provide people better conditions to be autonomous and

Did you always know that you wanted to use technology to solve a social problem? I guess this feeling of using technology, as a tool is something I have felt for quite a while. Since when I don’t know exactly, to be honest. I remember myself when I was around 13 or 14 and created a project at a science fair to study the Manhattan project and clearly noticed science and technology are powerful political and social tools for change, either capable of impacting people’s lives positively or negatively.

How challenging is it to convince investors of your company’s potential? How do you go about it? Start-up investors are used to software companies and their idiosyncrasies, being fast growth and really high return over investments if they come be unicorns, but accept a lot of risk. Real Estate investors are used to long-term capital intense investments although they are risk averse. It’s really challenging to show them we’re neither one of the options, but because the technology is already been proven and we’re addressing one of the biggest markets on the planet, I am pretty confident. Up to this point we have received seed capital and now we’re fundraising for our series A.

What are some of the critical challenges you currently face and how do you plan to overcome them?

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MOVERS & shakers

Understand that entrepreneurship is not a project or a sprint it is a journey, a marathon.

The biggest challenge we face nowadays is to get your first clients. It’s really hard to build a product in the heavy machinery industry when you’re a startup. That’s why we got corporate partners and first sponsors to leverage our first products and then get our first buyers.

3D printing is a fairly new concept – how do you help traditional companies transition from their conventional approaches and adopt new technology?

3D printing was actually created more than 30 years ago but it’s true it’s only now establishing itself as a feasible and scalable technology able to become products. We are currently bringing additive manufacturing and digital fabrication to the construction sector as a new construction method, which makes the process cheaper, cleaner, faster and more sustainable, so our main approach with traditional companies is a pledge for efficiency.

What is your long-term vision for the company? How do you see it shaping up in the years to come?

Urban3D is almost a year and half old and one can see how it grew and has gone through so much and change a lot in this few time. I see a long journey for Urban3D in providing the technology, influencing policy makers, and as its main outcome, helping to house millions of people.

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What do you consider as the most rewarding aspect of being an entrepreneur?

For me it is to be able to put up a vision for something, seek it and make results happen. To be an entrepreneur that addresses social challenges is even more rewarding, because the outcomes we produce are shared with people and make their lives better.

Would you like to share any advice with aspiring entrepreneurs? Any words of wisdom?

My advice would be ‘resilience is gold.’ Don’t give on your business until you have to. Understand that entrepreneurship is not a project or a sprint it is a journey, a marathon. That said, deep breathes, pivots and a lot of help will be needed, so, keep up and persevere!

On November 2nd, you will be presenting at the landmark conference SME Beyond Borders. What can the audience expect out of your presentation? My presentation will offer a new perspective in the use of technology to social challenges, show some futuristically sustainable approach to our planning and global governance and also point the role of businesses and innovators in making a better future.

For an online version, please visit: http://www.smeadvisor.com/movers-shakers/ redefining-entrepreneural-success-anielle-guedes

CSR

Thinking outside the box Rethinking success through social change

In an exclusive for SME Advisor, Industry expert and Founder of Enritsch, Stefan Ritsch talks about his aspirations for the ‘three wins’ – his company, its customers, and the planet… According to a 2014 study by Nielsen, 55 per cent of global online consumers across 60 countries said they are willing to pay more for products and services provided by companies that are committed to positive social and environmental impact. Therefore in the Electronic Age, where information is readily available, accessible and shareable, companies must make conscious efforts to listen and align with their customers’ needs. The millennial generation or Gen Y, are now better informed, socially aware and tuned in to current affairs, meaning that they often likely to research a brand

before they make a purchase or career decision. Times have changed and companies can no longer afford to ignore their social responsibilities. Once perceived as an extension of their marketing efforts, Corporate Social Responsibility (CSR) is increasingly being viewed as an integral part of a company’s standard operations. In its simplest form, CSR can mean adopting better workplace practices or charitable associations aligned with their culture and values. There are many success stories of companies who have launched campaigns that create genuine value for society, while receiving intangible benefits at a brand

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CSR

continual and long-term approach to solving issues, providing solutions and offering support to a cause they believe in. Starting a social enterprise When establishing a social enterprise, entrepreneurs and corporations should ask themselves â&#x20AC;&#x201C; what genuine value could we provide our customers? Sounds like common sense right? Yet itâ&#x20AC;&#x2122;s something that very often business owners fail to address. Enritsch asked the question and realised we could help plug the apparent lack of awareness and access to quality information on mental and physical health that is so urgently required across cultures and national boundaries. So we created a platform where, without going to a doctor, dentist, dietician or psychologist, people can get preventive advice and general knowledge on ways to upkeep their health & wellness, all under one roof.

Stefan Ritsch, Industry expert and Founder of Enritsch

Interesting statistic!

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level. Coca-Cola, Visa and Walmart being a few examples. Social enterprises however operate differently, in a sense that CSR to them, is embedded in their brand DNA. Essentially a social enterprise may be formed with the intention of providing a product or service, which ultimately benefits the community at large. This does not mean that they operate as a non-profit instead they may find opportunities to reinvest a share of profits into causes or initiatives, which are appropriate and relevant to the business. Rather than a quick fix or one time solution, the overarching goal of a social enterprise is to achieve sustainability, taking a

Customer is king! As a business, we operate at two levels, serving the community and also other businesses. While our goals are predominantly to generate value for the community at large, giving them access to free information, advice, resources and tools to support their physical and mental health, we also recognised the importance of peer recommendations to assist with their decision-making. A survey conducted by Crowd Tap suggests that a staggering 92 per cent of people rely on recommendations from people they know. The second biggest influence was consumer opinions posted online (70 per cent of people said this influenced them), which led us to introduce the concept of service provider ratings. The system allows not only customers to review and choose from credible health & wellness experts but allows businesses to position themselves in front of an interested audience looking for a particular product or service.

CSR

ofile 60-second company pr About Enritsch Enritsch is a health & wellness community, and one-stop shop to help people discover and maintain, a positive state of physical, mental and social wellbeing. By providing people free access to authoritative, comprehensive, easy-tounderstand, and up-to-the-minute information and resources – our mission is to empower, inspire and enable individuals to find beauty as an expression of inner peace, health and wellbeing. We aim to attract more than 60 million unique monthly visitors, and over 75 million reviews and opinions by year 2020. Part of our work involves charitable contributions directed towards non-for-profit companies delivering mental health support services. For more information, visit: www.enritsch.com.

For customers, we are comparable to being the TripAdvisor of the health & wellness industry, where we hope to become part of people’s daily lives and a trusted information resource from which they can base their decisions. Whereas for businesses – we could be viewed as either a new ‘online shop front’ for those who have no or little online presence; or an additional sales and promotional channel for those who already have an established online sales channel, which creates a win-win situation for all. Enritsch.com also offers businesses the opportunity to extend upon their existing CSR campaign footprint and provides smaller companies a starting point to build their programmes upon. Working towards a social cause In a world undergoing unprecedented environmental and social changes, never has the need been more pressing to relook into the ways we operate our businesses, starting with a commitment to social and ethical conduct. Unpredictable markets and lack of job security are leading causes of work related stress, owing to various mental and physical ailments. In fact, recent findings by the World Health Organisation (WHO) suggest that that one in four, or 25 per cent of the planet’s seven billion people suffer some form of mentalrelated condition, such as anxiety or depression. So as the saying goes mind over matter, it’s easy to consider that our physical wellness has more to do with our state of mind and lifestyle habits than we think! The concept of community extends beyond providing solutions to people’s daily challenges. It also means supporting those in the global sense of the word through charitable partnerships and giving. We are currently in talks with local entities and are in the process of setting up strategic partnerships and alliances that support our vision and goals. We are aspiring to become the largest health & wellness community

in the world with more than 60 million unique monthly visitors, and over 75 million reviews and opinions. Conclusion There are many ways to incorporate and demonstrate social responsibility in our daily lives. Some include tackling environmental and eco issues, whereas others are community, HR or philanthropy based. Apart from the obvious feel good effects associated with giving back, doing our part simply helps build better relationships through trust and commitment namely, better relationships with our staff, clients, customers and partners resulting in increased positivity and productivity, both inside and outside the workplace. For instance, employees want to feel proud of the organisation they work for. An employee with a positive attitude towards the company, is less likely to look for a job elsewhere and will speak highly of the company they’re in. In other industries such as retail and hospitality, you may find that not only are eco-friendly initiatives well received by customers, but help in savings through energy efficiency/less consumption. What’s most important is to discover the ‘why’ behind your business and actions. For us, having witnessed firsthand the negative impact of anxiety, depression and isolation of loved ones and communities, we decided to do whatever we could to make a positive contribution to humanity. We realised the importance of being able to seek professional advice in anonymity and taking precautionary health and lifestyle measures beyond fitness and nutrition to improve our physical and mental health conditions, which inspired us to create Enritsch. Hope you’ve been inspired too!

For an online version, please visit: http://www.smeadvisor.com/ground-level/ thinking-outside-the-box

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STRATEGY

A new year and a new plan

The end of each year is a good time for all firms to take stock of their current situation and assess organisational performance. As we slowly, but surely, near the end of 2015, Dr. Mahate, Head of Export Market Intelligence, Dubai Exports, urges SMEs to get ahead of the curve and start reviewing their business strategies todayâ&#x20AC;Ś

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STRATEGY

The end of the year corporate performance appraisal allows the firm to revisit the business plan for the year. More importantly, the end of year appraisal allows it to deal with nagging issues so as to have a better picture of their performance to date and what needs to change in order to achieve if not exceed their goals for the next year. Cleaning the clutter and the nagging items is of course the first place to start as far as an end of year check is concerned. Once this has been completed the firm needs to take a more structured approach which usually tends to start with reviewing the business plan for the year. As is often the case, SMEs tend not have a formal written business plan and now may be a good time to draft such a document. A business plan need not be a complex document and it can be as short as one page. The most important point about a business plan is that the route the company has decided to take is written down and communicated to all the staff. In this way the whole firm will be on the ‘same page’. The advantage of a written document is that it can be regularly visited to ensure that it still makes sense or whether the market dynamics are such that certain aspects need to change. Reviewing the business plan also allows the firm to identify the current and more importantly the emerging competitors. This means that the firm can always ensure that it has its ‘eyes on the ball’ and is fully aware of competitor developments so as to stay ahead of them. It’s not just enough to know of what competitors are doing but the firm also needs to obtain market feedback to understand what they are doing correctly as well as incorrectly. The firm can learn a lot from what has not worked for other firms so that it avoids making the same mistakes. The firm will also need to review its own performance through obtaining feedback from employees and key

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STRATEGY

For resource constrained SMEs the most important aspect is to have an efficient and effective financial management system.

customers so as to understand what changes are required. As an essential part of this process the firm needs to carry out a formal analysis to identify its strengths, weaknesses, opportunities and threats and make a list of three to five key improvements that it can implement in the forthcoming year with clear timelines and action plans. For resource constrained SMEs the most important aspect is to have an efficient and effective financial management system. Such a system need not be expensive or even complicated and simple steps can ensure financial efficiency. Of course this also requires the firm to have a large level of financial discipline both in terms of actions (i.e. updating the information in a timely manner) as well as reporting it to decision makers so that they can take the appropriate action. First, despite any resource constraints the SME needs to ensure that important information such as sales, cash receipts and expenses are first forecasted at the start of the year so as to produce a budget. This can be done easily on an Excel spreadsheet that tabulates cash flows. Then each month the firm needs to enter the actual amounts so that it can analyse the variation (i.e. the difference between the budgeted amount and the actual). In this manner the firm can understand not only the variances in the budgets but also the underlying cause. As a result the firm can take appropriate action to reverse any negative variances while enhancing the positive ones. More importantly, such a simple budget can help the firm identify future cash flow shortages and ways to reduce costs, as well as early warning signs of other financial problems that may lay ahead such as bad debts. Cashflows are very important for all firms but especially for SMEs who may lack the financial reserves of larger firms. In order to obtain a better understanding of the cashflows, the SME can seek to understand the cash cycle that is the

period from paying for raw materials, goods or wages for products and services being delivered right through to the point when it is able to collect the payment from customers. It is important to appreciate that any delays in the cash cycle can have far reaching repercussions that go beyond just reduced profits. For instance understanding the cash cycle can help the firm assess whether its credit policies are effective and if outstanding revenue needs to be collected faster. Such an analysis allows the SME to review its billing procedures and even consider third party solutions such as debt collection agencies or factoring. Of course there are customer relationship issues involved when it comes to using debt collection agencies. However, factoring is a more feasible method whereby the firm obtains a discounted value of its invoice immediately instead of waiting for the customer to pay. The process of collecting the outstanding revenue then becomes the responsibility of the factoring company. The cash cycle can also help the firm reassess its current inventory levels and perhaps reduce stock levels by clearing out old and slow moving items. This will allow the firm to free up cash tied up in stock and to utilise within the business in areas that can increase profits. In recent years compliance has become a major issue for governments and itâ&#x20AC;&#x2122;s important that SMEs do not fall into the trap of not fulfilling their legal requirements. Today, most businesses have to adhere to some sort of legal compliance be it health and safety, labour, food control and so on. Therefore, now is the best time to ensure that the company is up to date with all its compliance issues and the appropriate forms have been completed, processes carried out etc. In addition, to the mandatory compliance the firm can also assess itself with voluntary compliance systems and procedures to ensure that it has adopted the best

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STRATEGY

practices in the industry. Of course itâ&#x20AC;&#x2122;s not only about adopting the best practices but ensuring that they make a difference to the customer and they become aware of the changes. Therefore, SMEs need to learn about the regulatory environment in which they operate and assess their current shortcoming and how they can be addressed. In the modern world, the internet is an indispensable tool for generating sales and keeping in touch with customers. However, this means that the SME needs to ensure that it is used wisely and regularly updated. Therefore, the annual assessment has to include a continuous improvement to the SMEâ&#x20AC;&#x2122;s website. Typically, SMEs feel that a website is a once for ever task that does not need updating. However, the reality is that the website is the electronic shop window to the SME and needs to be regularly updated. This is also true of the mobile applications. Also, with the host of new electronic devices launched into the market the SME needs to ensure compatibility and find out whether the website is functioning properly. If the SME has a Facebook, Twitter or LinkedIn account then they need to be revisited along with the SMEâ&#x20AC;&#x2122;s social media strategy. This might be a good time to have someone dedicated to ensure that the content is fresh and relevant. The best way for a SME to gain a competitive lead over its rivals is to upgrade its skills and ability. SME owners and managers in SMEs frequently complain that they have little time if any to attend conferences, training, courses and lectures. The spring clean is a good time to change this type of thinking and set aside time for education. The SME owner or manager need not attend a formal MBA programme, although having taught on one for over 20 years; I strongly believe that it adds value to the individual. The SME owner can simply spend time reading about the new developments in management, marketing etc. so as to clean the

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cobwebs inside the mind. Also, new knowledge can help the SME better understand its business and carry out innovation to gain a competitive advantage over rivals. The annual performance evaluation is also a good time for the company to assess its foreign market strategy to ensure that it is maximising its ability to generate revenue from overseas customers. If the SME is not exporting it needs to look at one or two markets that it can enter into relatively easily. If the SME is already exporting it needs to think about expanding the number of foreign markets that it is currently serving. The usual question that arises is how to know which market to enter and what method to employ. The simplest answer is to look at what domestic and foreign competitors are doing. This will help the SME understand key markets and the entry routes that are successful for each country. The SME can then think about the internal changes that it needs to make in order to service foreign markets which could be simple things such as multi-lingual websites to increasing its production capacity. Foreign expansion needs to be well planned to ensure that it is successful and trade promotion agencies such as Dubai Exports play a vital role in assisting firms to enter overseas markets. The annual performance assessment is certainly importantly to remove the old and to assess what has happened so as to embark on the new.

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: http://www.smeadvisor.com/ground-level/ a-new-year

LEGAL

IN FOCUS:

Employee Considerations in GCC M&A 2015 continues to be a strong year for mergers and acquisitions in the Middle East and the region is poised to witness a further acceleration in M&A activity. In this article experts from Clyde & Co. highlight some of the key employment aspects arising from business transfers in the GCC.

Sponsorship In order to work lawfully in a GCC country an individual who is not a national of that GCC country (or a national of another GCC member state) must hold a residence visa and work permit, for which they must be sponsored by a locally-registered entity (the Sponsor). GCC nationals will merely need to be registered with the applicable labour authority. As part of the sponsorship process, the individual is required to enter into, and register with the authorities, a prescribed form employment contract with the Sponsor. The Sponsor will therefore be considered the individual’s employer and will be liable for any entitlements which the

individual accrues under the applicable labour law. An individual is normally only able to work for their Sponsor at the Sponsor’s premises and carry out the type of activities listed in the Sponsor’s commercial trade licence. Types of business transfers There are two principal ways of acquiring a business – share acquisition or asset acquisition. In a share acquisition, the purchaser acquires all of the shares in a company (or companies). In an asset acquisition, the purchaser acquires the assets, liabilities and goodwill of a business, but not the company itself. A key feature of share acquisitions (as

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LEGAL

liabilities will transfer from the seller to the purchaser. From an employment perspective, employees who are assigned to the assets being transferred will often need to be transferred from the seller to the purchaser (or another entity). The identity of the affected employees’ employer will therefore change upon transfer. Transfer of employment There are no laws in the UAE or Kuwait providing for the automatic transfer of employment from one company to another. Therefore, the “transfer” of employment between entities in these countries can only be achieved by terminating an employee’s employment with their existing employer (i.e. the seller) and the employee being “hired” by the new employer (i.e. the purchaser). The respective labour laws of Oman, KSA, Qatar and Bahrain contain ambiguous provisions providing for the automatic transfer of employment although, in practice, most companies tend to adopt the termination and rehire approach referred to above. However, the relevant provisions could potentially limit the new employer’s ability to change terms and conditions of employment post-transfer and, arguably, require a transferring employee’s continuity of service to be maintained.

distinguished from asset acquisitions) is that, save to the extent that some form of pre-sale restructuring is carried out, all of the assets and liabilities (including liabilities relating to any employees) of the target company will be acquired by the purchaser upon completion of the acquisition of the shares. From an employment perspective, there will be no change to the identity of the employing entity of any employees as a result of a share acquisition and so no transfer of employment will be necessary. In an asset acquisition, the parties will agree which assets and liabilities are to be acquired by the purchaser. Upon completion of the transaction, ownership of those assets and

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Residence visa and work permit Regardless of whether an employee is transferred by way of termination and rehire, or under the automatic transfer provisions referred to above, the employee’s existing residence visa and work permit will need to be cancelled and a new residence visa, work permit and, if applicable, ID card, will need to be issued in the name of the employee’s new Sponsor. It is unlikely that the transferring employees (and their dependents) will be able to travel abroad during the visa renewal process. The new Sponsor must ensure that they have a sufficient quota of visas and office space available for the transferring employees. For example, employers in the DIFC must have 80 sq. ft. of office space per employee or any visa

application will be rejected. There will also likely be a limit on the number of visas which can be obtained at any one time. Applications for large numbers of visas will therefore often have to be made in tranches, which could affect the timeline of the whole transfer process. Special consideration should be given to any transferring employees of nationalities which, for a variety of public policy and security reasons, are currently experiencing difficulties in obtaining new residence visas. For example, in the UAE, individuals from countries including Syria, Iran and Yemen are currently experiencing difficulties in obtaining UAE residence visas. In some GCC countries, such as Bahrain, KSA, Oman and Kuwait, the seller and the purchaser will also be required to submit a joint application to the applicable labour authority for approval of the transfer. Accrued entitlements If an employee is transferred to their new Sponsor by way of termination and rehire, upon termination of their employment with their old Sponsor notice pay, holiday pay, end of service gratuity and any other contractual entitlements (the Accrued Entitlements) will crystallise and will become payable to the employee in accordance with the applicable labour law. It is open to an employee to insist that the Accrued Entitlements are paid to them upon termination (i.e. prior to their transfer to the new employer). However, most employees agree to roll over the Accrued Entitlements into their new employment with the new Sponsor. This type of agreement should be clearly documented. The respective labour laws of UAE, Oman, KSA and Qatar state that following a business transfer both the previous employer and the new employer are jointly (and, in KSA, severally) liable for the Accrued Entitlements and any other obligations relating to the transferring employees. However, in practice it is common

LEGAL

for the parties to a business transfer to apportion these liabilities by way of indemnification in the relevant purchase documentation. Consultation/notice Although there is no statutory requirement to consult with employees in relation to a potential business transfer, it is advisable to start discussing the transfer with all affected employees at an early stage. It will be important that the transferring employees cooperate in the process and giving them as much information as possible from the outset should help to ensure this. Any transferring employees who sponsor dependents are likely to be anxious as to how the process will impact on their dependents’ residence visas. In the UAE, it may be possible for transferring employees to utilise the bond system. Broadly speaking, a “bond”(approximately AED5,000) plus an administration fee is paid to the UAE Immigration Authority which will hold the bond and the transferring employee’s dependants’ passports during the transition period between the cancellation of the transferring employee’s visa with their old Sponsor and their new visa being issued in the name of their new Sponsor. When the transferring employee’s new visa is issued, the Immigration Authority will release the bond and the transferring employee’s dependants’ passports. As the transfer process involves terminating the employee’s employment, the requisite notice of termination of employment should be issued to the employee. In practice, the requirement to give notice is often built into the transfer arrangements agreed with the employee although employers should be aware that there are restrictions in some GCC countries on giving notice to employees on statutory leave (e.g. sick leave and annual leave). Wages protection system Some GCC countries operate a wages protection system (WPS) which is a centralised system designed to encourage transparency in the payment of wages

Although there is no statutory requirement to consult with employees in relation to a potential business transfer, it is advisable to start discussing the transfer with all affected employees at an early stage. process and to ensure that workers are paid on time. An employer that delays payment under the applicable WPS will be subject to a freeze on all sponsorship applications or renewals until all wages are paid in full. It is therefore crucial that, if a purchaser is required to pay its workers through a WPS, it is prepared to do so. GCC Nationals Across the GCC, legislation has been introduced to encourage or compel the employment of nationals in the private sector. To support these policies, there are strict rules governing the dismissal of GCC nationals. If any of the transferring employees are GCC nationals, it may therefore be necessary for the employer to obtain approval for the proposed termination of the GCC national, from the relevant authority. This will need to be factored into the transfer timetable. It will be necessary to notify the relevant pension authority or General Organisation of Social Insurance (GOSI) of the termination of any GCC nationals and these employees will need to be re-registered with the applicable labour authority under their new Sponsor’s registration. Employers should also consider whether the proposed employee transfers will affect their on-going compliance with nationalisation quotas.

Other considerations • Will any of the transferring employees potentially be subject to a labour ban? • Some transferring employees may require a letter confirming the details of the change of their employer to submit to their bank in support of any continued loan facility. • Will the purchaser try and cherry-pick employees from the seller or will the seller try and off-load underperforming employees onto the purchaser? • What will happen to those employees who do not transfer? Employers should be aware that redundancy is nota widely recognised concept in the MENA region. • Where will the transferring employees fit within the structure of the purchaser? • Will the transferring employees be required to relocate from their current workplace? • Will the purchaser recognise the transferring employees’ continuity of service for the purposes of calculating end of service benefits? Further information If you would like further information on any issue raised in this update please contact: Sara Khoja Partner E: sara.khoja@clydeco.com Ben Brown Associate E: ben.brown@clydeco.com Clyde & Co LLP PO Box 7001 Level 15, Rolex Tower Sheikh Zayed Road Dubai, United Arab Emirates T: +971 4 384 4000 F: +971 4 384 4004 Clyde & Co accepts no responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in this summary. www.clydeco.com

For an online version, please visit: http://www.smeadvisor.com/featured/ employee-considerations

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INNOVATION

Design Driven Innovation for Industrial SMEs

As a new design driven innovation approach gathers momentum across the world, it means that industrial SMEs are now better equipped than ever to deliver excellent performance. We asked seasoned expert Duha Awayes, Head of Business Advisory Services, Protiviti Oman, to set the sceneâ&#x20AC;Ś

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INNOVATION

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INNOVATION

The absence of industrial innovation is hugely attributed to the unawareness of most SMEs to adopt a designdriven innovation approach. Duha Awayes, Head of Business Advisory Services, Protiviti Oman

Did you know?

In recent years, the GCC nations have placed a strong focus encouraging SMEs to pay close attention in driving industrial innovation. We also witnessed a surge in the support provided at national levels for SMEs and entrepreneurs to adopt their ideas and foster an interest in industrial innovation. Nevertheless, the majority of businesses springing to live in the region are still concentrated around the services and trade industries, while original ideas in general, and in the industrial and manufacturing fields in specific are exceptionally scarce. This is an untapped opportunity for SMEs to serve the industrial sector which pleads for any form of innovation to produce products that are cheaper, safer, environmentally friendly and scalable. The Production in the Innovation Economy Commission of MIT conducted a research which revealed that advanced manufacturing SMEs play a key role in the economy’s ability to innovate and grow because manufacturers play an essential role in developing new products, processes and services across a wide range of industries. The study also stressed on the need for a more intentional and systematic approach towards developing SME capabilities in the industrial sector. The reluctance of entrepreneurs to venture into the manufacturing field is not attributed to the difficulties involved in setting up such establishments, nor is it attributed to the large initial capital investment required as it may appear at a first glance, because the GCC entrepreneurial support ecosystem realises the importance of this sector and provides the needed hand holding and financing for unique manufacturing ideas. A great example is Abdullah Al Badi; a thriving young inventor with an engineering background from Oman designed and patented this new breed of digital meters that also protects electrical networks. Abdullah then established “Anwar al Majed United Company” which provides a range of services

such as building electrical substations, laying out electrical networks and installing electronic meters. This is just one example to showcase that an agreement was in place where he was offered the technical, logistics and administrative support by Shumookh Investment and Services which is partly owned by Oman’s Public Establishment for Industrial Estates and Omani pension funds. PEIE’s subsidiary; the National Business Center incubated the company to enable it to successfully setup the factory which will operate in electrical networks areas. There are other examples that exist across the region and the sponsorship and promotion of unique manufacturing ideas is not the major issue as there are platforms and incubators that offer promising entrepreneurs the support, guidance, training and access to markets with fully equipped office space. The scarcity of new manufacturing ventures has its deep rooted causes in the absence of innovation and original ideas but it is not caused by the lack of creativity in the entrepreneurs, because they are generally not short of ideas and they certainly do not pull ideas out of thin air. The absence of industrial innovation is hugely attributed to the unawareness of most SMEs to adopt a design-driven innovation approach which is also common amongst big organisation. The failure in this area is due to not capitalising on the design process as a tool for innovation. Design is generally perceived as the process of crafting a product of certain qualities but this has transformed into a multi-disciplinary strategic process that is inherently innovative. As such, “Design” or “Design-Thinking” is now recognised as a technique of thinking not just at the design stage but instead, it is throughout the product lifecycle which leads to enhanced results, profit margins and consumer experience rather than the traditional context that refers only to product design. The power of the “Designed-Driven Innovation” process, a term coined

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INNOVATION

Entrepreneurs must develop a strong interest in identifying new and sustainable sources of growth or disruption and this requires innovative effort to view things holistically and systematically rather than being confined to the research and development or design teams.

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by Roberto Verganti, the Professor of Leadership and Innovation, originates from the results produced when this process is applied, because designdriven innovations do not have their origins in market needs. Instead, they identify and create new markets which do not necessarily introduce new technology but rather introduce a new meaning and experience like Appleâ&#x20AC;&#x2122;s ipod that changed our understanding in the meaning of listening to music. Although the market did not ask for it and probably did not know that they need it, but once it was introduced, the market embraced and loved it. Entrepreneurs need a reminder that they can enter the industrial world without getting into products that require sophisticated manufacturing facilities. Instead, they need to use the design driven innovation approach by appreciating the emotional attachment consumers place on products and introduce complimentary devices. To clarify, a remarkable example is the selfie stick or the wireless headphones for mobile phones. When we think of industrial innovations; there are two key angles to consider. The first is in the form of a breakthrough, or a disruptive change where a new product gradually replaces an old product like LCD TVs. The second angle is in the form of an upgrade or a modification in a product feature as a response to consumer pain points or needs. Having said that, in todayâ&#x20AC;&#x2122;s dynamic and highly competitive markets, the industrial SMEs need to be proactive and forward thinking to sustain and succeed and this can be achieved by harnessing their abilities to master innovation beyond tweaking features or function enhancements. In particular, they need to raise their awareness and truly understand the emotional ties consumers develop and place on products they purchase, and because the two innovation methods does not necessarily lend themselves to assisting innovators to understand these ties; the design-driven innovation approach is the way to go with the demanding consumers of this century

who are constantly seeking to tryout better alternatives for personalised experiences. In design-thinking and design techniques; SMEs are encouraged to employ these techniques across the value chain from the design stage of the consumer perception to the industrial and engineering design of the functional manufacturing equipment, which provides an unconventional framework to introduce innovative products that consumers may not have asked for, but they would enthusiastically buy into it if the end product delivers an enriching and enhanced experience. Cleary, innovation is a key driver of competitive advantage for any business and this no different for industrial SMEs. Entrepreneurs must develop a strong interest in identifying new and sustainable sources of growth or disruption and this requires innovative effort to view things holistically and systematically rather than being confined to the research and development or design teams. Furthermore, the mindset has to be there to develop the ability to continuously process and transform knowledge and ideas into new manufacturing processes, services, systems and products is the fundamental success factor for any business. The promising news is that successful innovations are hardly ever accidental. Entrepreneurs who are diligent and passionate in pursuing unexploited opportunities will be leaders in developing new market needs not just in their country or region but even at a global level.

For an online version, please visit: http://www.smeadvisor.com/ground-level/ industrial-innovation

A galaxy of stars Presenting a showcase of our prestigious nominees â&#x20AC;&#x201C; these are businesses that made it to the top of a pool of competitive entries! On November 2nd, one winner will be chosen across each category at the glittering Stars of Business Awards 2015.

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STARS OF BUSINESS

EMIRATI ENTREPRENEUR OF THE YEAR

ADMIRABLE WOMAN ENTREPRENEUR

Victory Venture Rania Nihalani

Green Shine Auto Services Elizabeth Kuruvilla

ShoSho Bella Sarah Khamis

Vista Documents Buti Salem Aljunaibi

Maison Maatouk Du Cae Samira Maatouk

My First Gym Saber Belghith

Systems Middle East Salem Bin Shabib

Al Sarh Contracting LLC Ahmed Abdulla bin Saif Darwiesh Alshehhi

Party Zone LLC Sunita Mulchandani

Light Center Lighting L.L.C Hamed Moammed Babou

ARAB ENTREPRENEUR OF THE YEAR

Eureka Tech Academy Afnan Ali Light Center Lighting L.L.C Hamed Moammed Babou MINDPEDIA Dr. Ahmed Saber

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Unique Masters Passenger Transport by Rented busses LLC Ali Alali Arabian Contracting Company Saeed Omar Al AAs

BEST NEW BUSINESS

DeCluttr Me Shelina Jokhiya LoadMe Sebastian Stefan plantshop.ae Jimmy James

Miracle Tourism LLC Mohamed Hisham Tammam ShoSho Bella Sarah Khamis

STARS OF BUSINESS

CHANGE MASTER - BREAKING NEW MARKETS AND PRODUCTS

BEST TECHNOLOGY

Key BS DMCC Ibrahim Darraz Systems Middle East Salem Bin Shabib AEserver FZE Munir Badr

Taxi Media Middle East FZ LLC Brett Pearson

My Business Consulting DMCC Kamelia Allow

Telelink Communication LLC Naushad Abdulla

Qatar Metal Const Ind LLC Riad Elwelly

Ali Al Ansary Building Material Trading FZE Mahmoud Hasan Safi Chirag Contracting LLC Mahesh Mahtani

OuedKniss

Foot Solutions Walid Tarabey

CONSTRUCTION AND REAL ESTATE

Al Sarh Contracting LLC Ahmed Abdulla bin Saif Darwiesh Alshehhi

compareitforme.com Jon Richards

Homeoffices Huzam National Gulf Construction LLC Nasser Ali

CORPORATE GOVERNANCE

Global Development Group LLC Hamad Jassim AlDarwish Fakhroo Infotouch Technologies Amitabh Tiwari

Carousel Solutions FZ LLC Simon Nestel Page International FZ LLC Michel Kovacevitch

Bin Touq Fire and Safety Obaid Bin Touq

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STARS OF BUSINESS

MEDIA AND MARKETING

PEOPLEâ&#x20AC;&#x2122;S CHOICE

Foot Solutions Walid Tarabey

Red Dart Trading L.L.C Faisal valiyakath

Plan B Advertising Harmeek Singh

Create Media Group Tom Otton

Kulcha King Restaurant LLC Vicky Sethi

LoadMe Sebastian Stefan

Taxi Media Middle East FZ LLC Brett Pearson

Emirates Business and Management Consultant R K Gupta

Party Zone LLC Sunita Mulchandani

GOZOOP ONLINE Dushyant Bhatia

EXCELLENCE IN TRADE

RSA Logistics Abhishek Shah Litein Trading Company LLC Adil Mushtaq

Qatar Metal Const Ind LLC Riad Elwelly Peekay General Trading LLC Rajesh Agnihotri

Maison Maatouk Du Cae Samira Maatouk

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STARS OF BUSINESS

PROFESSIONAL SERVICES

Creative British School LLC Salman Ibrahim Maf Auditing Accounting and Consultancy Mohammad Al Falasi AHC Holding Limited Charif Mzayek

Dr Kanak Madrecha and Associates FZ LLE Dr Kanak Madrecha Skill Maker Training Services Anchal Andrews

HOSPITALITY

The Yellow Boats Toby Adams

Asia Group of Companies Mohammed Ashraf

Kulcha King Restaurant LLC www.theroyaldeals.com Vicky Sethi Shiva Lamar Sweets and Pastry LLC Anita Amanian

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STARS OF BUSINESS

BREAKING NEW BARRIERS

HEALTH AND WELLNESS

Child Early Intervention Medical Center Dr Hibah Shata Exeter Medical Center for Bone and Joint Health Dr Walaa Elassuity

Arganor Beaute Naoual Abdechaffi VenoCare Dubai Samir Issa

Atlantic FuelEx Rani Awad

Green Shine Auto Services Elizabeth Kuruvilla Dubai Desert Extreme Shahriar Khodjasteh

Al Danniyeh Royal Gifts Samantha Elbeb

My First Gym Saber Belghith

STAR OF BUSINESS

Dubai Desert Extreme Shahriar Khodjasteh

HTP Global Technologies LLC Rajiv Jain

Gulfar Foodstuff Trading CO LLC Abdul Majeed CV

Arabian Contracting Company Saeed Omar Al AAs

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Shanghai Electric Middle East FZCO Khalid AlQaqa

more Unveiling on nominees nd! r2 Novembe d... Stay tune

TECH TRENDS

It’s all about the money! Top personal finance apps…

, Rushika Bhatia s view...

Personal Expense This apps helps you monitor your accounts, manage your budget and track your bills. When it comes to budget management, you can set your desired budget and ensure that you aren’t over spending. The app allows for multiple budgets to be set and for easy comparison using visual tools such as graphs and charts. In terms of tracking bills, you can set alerts so that you don’t miss a payment deadline. You can also distinguish bills using icons in order to mark their status and access them in a calendar view.

Available on: iOS Cost: Free

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TECH TRENDS

BillMinder BillMinder lets your organise all your bills in one place. It offers a handy bill reminder alert every time a bill is due so that you never miss a deadline! What’s particularly interesting about this app is that it allows you to create reports of your expenses, in the forms of charts and graphs. It also offers tips on how to cut down expenses and increase quick savings. For business owners, the app’s multi-user feature is quite attractive. This means that all business partners can be synced to the app and get regular notifications on business-related expenses. Other noteworthy features of the app include: AutoPay Bills, Automatic Backup and Export to PDF.

Available on: iOS and Android Cost: AED 10.98

Wally To begin with, the app lets you record all your expenses in a systematic way – enter the amount spent, location, time and the category of expense (food, clothes, transport, and so on). Another notable feature is that the user can scan and save images of receipts. The app can identify the amount, date, venue and category automatically, saving you valuable time! Wally supports multiple global currencies so that even if you are on a business trip or family vacation, you can keep track of your daily expenses. The application offers a weekly, monthly and yearly breakdown of the expenses – divided categorically – in the form of an easy pictorial representation that’s a lot easier to read and understand than a complicated Excel sheet or an unending pile of bank statements. An added plus is that using the app, you can access your expenses anywhere and at any time.

Available on: iOS Cost: Free

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TECH TRENDS

XE Currency This award-winning app provides the latest currency rates and also provides a handy currency converter. It allows you to pin your base currency as the header within the app for quick reference. Moreover, the app works offline and stores the last updated rates in case you don’t have Wi-Fi connectivity. For Apple Watch users, this app also syncs with your device giving you access to view and refresh rates instantly – ultimate convenience for a business traveller!

Available on: iOS, Android and Windows Cost: Free

Mint This personal finance app helps you manage expenses in a systematic manner by putting together all your accounts and credit card information in one place. Furthermore, you can also categorise all your banking and credit card transactions. The app puts a lot of emphasis on security – you are able to safeguard your account using a 4-digit pin. What particularly strikes out about this app is its clean and user-friendly interface.

Available on: iOS, Android Cost: Free

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TECH TRENDS

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Jawbone Further expanding its portfolio of activity trackers, Jawbone® has launched a new design for UP2™ and 10 elegant new colours for UP2 and UP3™. That’s not all – Jawbone also released a range of new features for UP2 and UP3 that improve product functionality and reliability through a free over-the-air firmware update.

New colours:

• UP2, previously only offered in Black Diamond and Light Grey Hex with classic flat straps, is now available in six new colours – five of which feature an all-new design with two lightweight thin straps – giving the slim tracker an even more fashionable and unique look and feel. The selection of new colours for UP2 includes Turquoise Circle, Oat Spectrum, Gunmetal Hex, Orchid Circle and Black Diamond with the new lightweight thin straps, along with Violet Circle with the classic flat strap. • UP3, Jawbone’s advanced multi-sensor tracker, is now available in four additional colours, including Indigo Twist, Ruby Cross, Sand Twist and Teal Cross, in addition to the previously available colours, Black Twist and Silver Cross.

New features:

• A free over-the-air firmware update through the UP App has been released to UP2 and UP3 users, enabling new features including Automatic Sleep Detection and Passive Heart Rate monitoring. With this new update, UP2 and UP3 users no longer need to tap the band to enter and exit sleep mode. The UP band now automatically detects when the user has fallen asleep at night and when they wake up in the morning. The system will continue to recognise and track detailed sleep stages, with UP3 still capturing REM, Light and Deep sleep. • The feature update also adds Passive Heart Rate tracking to Jawbone’s multi-sensor tracker, UP3, which previously only measured Resting Heart Rate and heart rate throughout the night. While Resting Heart Rate is one of the best indicators of overall heart health, the addition of Passive Heart Rate throughout the day gives users a more complete picture of their heart health.

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TECH TRENDS

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HTC One A9 Snapshot: The HTC One A9 combines striking design with the newest features of Android 6.0 Marshmallow with HTC Sense on the inside to create an unrivalled smartphone experience.

Key features:

• In a stunning fusion of metal and glass, a 5-inch, edge-to-edge, 2.5D Corning® Gorilla® Glass 4, Full HD AMOLED screen cascades into the metal frame, giving you brighter and more vivid colours for brilliant graphics and gaming, even in direct sunlight. • HTC One A9’s front and rear cameras, coupled with powerful yet simple editing tools, mean epic photos and videos are only a tap away. Its main 13MP rear camera features Optical Image Stabilisation (OIS), which automatically minimises hand shake and corrects vibrations to give you a crystal-clear picture every time. Meanwhile, the front UltraPixel camera delivers the best self-portraits in any lighting condition, using HTC’s UltraPixel sensor to capture 300 per cent more light than conventional smartphone cameras. • The HTC One A9 has also been designed with all new power-saving capabilities to maximise battery life. Doze automatically turns off power hungry applications when your phone is left idle, such as when charging overnight, while App Standby knows when an app open in the background isn’t being used and shuts it down until you need it again. • Featuring the newest Qualcomm® Snapdragon™ 617 processor with integrated X8 LTE and 64-bit octa-core CPUs, the HTC One A9 is designed to deliver a perfect balance of powerful performance, fast connectivity and better battery life. • The phone is available in both 16 and 32GB configurations and features expandable memory, supporting up to 2TB in SD card storage, perfect for storing all your apps, games, photos, music and videos. The HTC One A9 and accessories will be available worldwide, both at retailers and at htc.com, beginning November 2015. For an online version, please visit: http://www.smeadvisor.com/tech/ top-personal-finance-apps

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TECH TRENDS

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Make your money work harder with an NBAD Commercial Call or Fixed Deposit account. www.nbad.com Make a smart business decision and get the most competitive USD interest rates on Commercial Call account and Fixed Deposits from NBAD. • Promotion is applicable for all Call and Fixed Deposit accounts in USD currency • Minimum account balance to earn interest for Call account is USD 3,000/• Minimum account balance to earn interest on Fixed Deposit account is USD 13,700/• Easy access to funds through online and branch banking channels

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