ISSUE: 32 | JUNE - JULY 2016
Give your brand an unfair advantage facebook.com/theintelligentsme @intelligentsme
32 Businesses should be hiring working mums 40 Bankers: Don’t spread the stress, serve it 42 Beyond the 3rd generation 16
THE GROWTH ENABLER RAMY JALLAD CEO, RAKIA & RAK FTZ
Strategic Alliance Partner
Corporate Banking Partner
Sole Automotive Partner
Insurance Partner
Print Partner
To send in your entries, visit www.innovationsummit.ae
Disruptive Innovator Awards 2016
DISRUPTIVE INNOVATOR AWARDS 2016
Acknowledging innovators who want to change the world! A shout out to innovators who think outside the box. Can your idea, process, software or app make the world a better place?
Register
NOW
Award Categories Best Innovation in Sustainability
Best Innovation in Healthcare
Best Innovation in Education
Best Innovation for Public Good
Best Innovation for Business Growth
Best Innovation in Retail
Who can participate? Any individual or company, based in the UAE, with a commercially viable innovation, is eligible for participation �
How we judge: The awards will be judged by a jury for the strength of concept, user interface, user experience & business model Each category will have two winners The Innovator Awards will be conferred at the Global Innovation Summit on 21st September 2016. �
�
Terms and conditions apply Each participant is eligible to submit a maximum of two entries. Entries should be submitted only through www.innovationsummit.ae Closing date for entries is 28th August, 2016. The decision of the jury will be final.
Disruptive Innovator Awards is part of Global Innovation Summit 2016 September 21, 2016 - Atlantis the Palm, Dubai
EDITORIAL THINK TANK Ajay Bindroo, CEO & Managing Partner, Clasico Brands Within a span of 18 months, Ajay has established a global venture that caters to consumer goods ranging from beauty and Personal Care, Grooming products to Oral Care, Bath and Hygiene, Hair Care and Homecare products. Under the flagship brand of “CLÁSICO BRANDS” over a dozen brands have been created and are in the process of being launched worldwide. Ajay is a true visionary with a big-picture. He's the one who makes sure that the company's concept and strategies are the right ones and that "we're staying on track."
Akram Miknas, Chairman and Founder, PROMOSEVEN HOLDINGS B.S.C.C. (P7H) Akram Miknas is known to be one of the pillars of modern marketing communications in the Middle East. He has just been recognized as No. 3 in the Middle East’s 50 Most Powerful People in Media, Marketing and Advertising. His involvement in real estate development, especially after the successful completion of the Pearl Towers (Abraj Al Lulu), anchored him as a leading accomplished developer in the Gulf. In early 2000, he branched into the hospitality business and successfully managed and built several hotels and outlets in Bahrain. His success in this business was crowned by becoming the franchisee of McDonald’s in Lebanon; where he built the business from 7 restaurants to 26 restaurants in 5 years.
Alexandar Williams, Director, Business Development, Department of Economic
Development (DED)
Alexandar Mathew Williams is presently the Director, Business Development, Department of Economic Development (DED), Government of Dubai. He has logged more than 20 years’ experience in SME development and business creation. His interests are focused on the life cycle dynamics of firm growth and mentoring entrepreneurs. In his present job, his main role and responsibility is developing a new initiatives for DED to take it to the next level as a knowledge-driven economic development agency.
Deepak J Babani, CEO, Eros Group Deepak J Babani has been with Eros Group for over 30 years. Mr. Babani has spearheaded the growth of Eros Group from a turnover of Dhs 6 million in 1981 to over Dhs 4 Billion in 2010. Under his leadership, Eros Group has established itself as the leading distributor for Consumer Electronics, Home Appliances, Telecom, IT and Air-conditioning products in the UAE, GCC and East African regions. Mr. Babani joined Eros as Marketing Manager and was promoted to General Manager in 1988 and subsequently to CEO in 2002.
K. Rajaram, CEO, Al Nabooda Automobiles K. Rajaram has more than three decades of experience in the automotive industry, starting his career in Oman in 1983. He moved to the UAE in 1996 to lead Al Nabooda Automobiles, the exclusive dealer of Audi, Porsche and Volkswagen in Dubai and the Northern Emirates. Under his leadership, Al Nabooda Automobiles has changed the face of the UAE automotive market by setting the highest benchmarks in customer service and pioneering the automobile ownership experience.
EDITORIAL THINK TANK Mishal Kanoo, Deputy Chairman, The Kanoo Group Mishal Kanoo serves as the Deputy Chairman of The Kanoo Group, one of the largest, independent and longest running family owned groups of companies in the Gulf region. He is also one of the most iconic business figures in the Middle East, featured on various magazines and listed in ‘Top 100 Powerful Arabs 2013’, ‘The 15 Wealthiest Arab Businessmen in the World 2012’, among others. Subsequently, he worked at Arthur Andersen in Dubai as an Auditor before taking up his current position in 1997. Mishal Kanoo adheres to family values and ideals in pursuit for quality and excellence which therefore greatly influenced his corporate policies and goals for The Kanoo Group as a reputable company.
Satyajeet Roy, Head of Business Banking (SME) Commercial Bank International Satya is a seasoned international banker with over 25 years of experience in Retail and Commercial Banking with a particular focus on serving SMEs. He has a strong track record of starting and developing businesses across geographies, managing the P&L, and driving innovation to ensure delivery of multi-product banking solutions to meet and exceed customer expectations.Prior to joining CBI, Satya had a long career at Citibank where he was most recently Head of Commercial Banking for UAE and Bahrain. During his time at Citi, Satya held various senior management roles in India, Middle East and the UK.
Rizwan Sajan, Founder & Chairman, Danube Group The Danube Group was founded and established by Mr. Rizwan Sajan in 1993. Over the last 22 years, the group has come a long way since its humble beginnings of a small trading shop in Deira to being the region’s leader in construction, building materials, home interiors and shop fitting industries. The head office & logistics facilities are present at the Jebel Ali Free Zone (JAFZA). Danube has coursed a path that transformed only one shop with 3 employees to over 40 locations in 9 countries worldwide including UAE, Oman, Bahrain, Saudi Arabia, Qatar, Africa and India, in addition to procurement offices in China with an employee strength of over 2,200 people. Being a top ranking business icon, Mr. Rizwan Sajan has been a source of inspiration for driving Danube’s business by leaps and bounds.
Reg Athwal, Founding Partner & MD of RTS Global Partners Reg Athwal is the Chairman of RAW Group and the Founding Partner & MD of RTS Global Partners, the leading family business advisory firm in Africa, Middle East and Asia with 50+ members in 8 countries, with offices in Dubai-UAE and Nairobi-Kenya.
Vikas Thapar, Chief Executive Officer, Emirates Money Vikas heads Emirates Money as its CEO. He was instrumental in the conceptualization and establishment of the company and continues to drive the growth and direction of Emirates Money. Vikas possesses more than 17 years of experience in the consumer finance industry and has worked with Citigroup in India and Indonesia. In his previous assignments with Citigroup, he played a prominent role in setting up the consumer finance business for Citigroup in Indonesia and was an integral part of the consumer finance set-up team at Citigroup India.
CONTENTS 16
16 The Growth Enabler
Ramy Jallad, CEO of RAKIA and RAK FTZ SPI Group hosted Ramy Jallad, CEO of RAKIA and RAK FTZ at its 22nd Emirates NBD Global Business Series session. In an up close and personal interactive discussion moderated by Shantanu AP, CEO of SPI Group, Ramy opened up about his work, motivations and decision making and gave a clearer picture about the economic development on the emirate of Ras Al Khaimah. Here are excerpts of the session.
20 The growth and growth of our
video world
Intelligent SME interviews Adam Ridgway, CEO of Travall World, winner of Disruptive Entrepreneur Awards at SME World 2016, about the enormous potential of video content creation, distribution and usage in the region.
22 Business starts to gather pace
It’s important for anybody who wants to set up business in UAE to have a clear idea of what they are getting into; they should always ensure their concept is viable and that their idea fits with the personal vision and the market trends, says Saeed Khalifa Mohammed Al Fuqaei, Chairman & Co Founder, Shuraa Management and Consultancy LLC.
6 www.theintelligentsme.com
25
CONTENTS 25 Upgrade fire safety codes
36
Almost 90% high-rise skyscrapers built before 2012 in GCC are cladded with Non Fire Retardant grade Aluminum composite panels due to no strict requirement by specifiers and authorities. Things have changed with initiatives taken by UAE Civil Defence’s new building codes and standards says Rizwan Sajan, Founder and Chairman of Danube.
28 The stepping stone!
At the heart of any successful business is a great idea. Some seem so simple; we wonder why nobody thought of them before. One such thinker is Adnan Nalwala, Executive Director, Akar Technical Services and Natural Stone Company.
Bbusinesses should be hiring 40 Bankers: Don’t spread the stress, serve it working mums Banks need to be patient and listen, working over the long-term as
32
Mums@Work is a new initiative providing mums the opportunity to return to the workplace in a flexible manner. Louise Karim, Managing Director, says that the value and talent that mums bring to business merits supporting them in their path back to the workplace and helping them achieve a perfect balance between motherhood and career.
36 SME claims & risk management
Regardless whether a an SME buys insurance or not, proper risk management processes are very important and proper processes and housekeeping are in the best interest of the SME owners and the long term success of their business.
a real consultant and partner to business, and providing solutions rather than asking oft-repeated questions. Banks need to offer partnership rather than parenting says Satyajeet Roy, Head Business Banking, Commercial Bank International PSC
42 Beyond the 3rd generation
Family businesses benefit both the local and global economies, and in a big way. However, fewer than 10% of them survive to the third generation and less than 10% of these owners are financially independent from their businesses when they retire, says Reg Athwal, Founding Partner & MD of RTS Global Partners.
38 The Employee feeling appraisal 46 Aid SME competitiveness It is becoming increasingly important to ensure everyone within an organization is appreciated and each has received a personal touch from the Line Managers & Team Leaders. The key to identifying this and to understanding how the team is “feeling”, is a robust and interactive FEELING appraisal system, says Jonathon Saunders, Managing Director for Africa and the Middle East, BigScreen
Managed Hosting services provide flexibility, increase productivity and strengthen security with overall cost reduction says Sachin Bhardwaj.
53 Rare & Fabulous
High-end luxury products for CEOs and decision makers.
Be a Connector 7 www.theintelligentsme.com
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Publisher & CEO Shantanu A.P. Group Editor Sandeep Sharma Assistant Jinal Chheda Expert Contributors Alexandros Nezeritis Jonathon Saunders Reg Athwal Rizwan Sajan Sachin Bhardwaj Satyajeet Roy
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It was a pleasure to host and interview Ramy Jallad, CEO of RAKIA and RAK FTZ at our 22nd Emirates NBD Global Business Series session. In an up close and personal interactive discussion moderated by me, Ramy opened up about his work, motivations and decision making and gave a clearer picture about the economic development on the emirate of Ras Al Khaimah. He came across as an impressive personality who has a finger on the pulse of his business and who makes it a point to listen intently to his people and partners. As business leaders go, I rate Ramy very highly on his performance and his leadership style. In other encouraging news, the total value of capital investments in SMEs across Dubai amounted to nearly Dh110 million in 2014 and it is expected to grow by 15 per cent in the near term on the back of a 30 per cent growth in the number of deals, driven largely by activity from existing incubators/ accelerators and earlystage investment firms. Dubai SME now has a plan to promote equity financing, thus creating an environment conducive to SME growth and sustainable development. An interesting theme has emerged in the UAE staffing services, that of working mums finding it difficult to get back to work. With more women having children in their late 20’s and early 30’s and focusing on their careers earlier on in their lives, their invaluable professional experience is going to waste. It is a mystery why companies are so hesitant to employ women just because they are mums. and initiatves such as Mums@Work are welcome additions to the staffing industry. We carry an op-ed with details on this issue. Another relevant story in this issue explores the role of banks in times of flat economic scenarios. Banks need to be patient and listen, working over the longterm as a real consultant and partner to business, and providing solutions rather than asking oft-repeated questions. Banks need to offer partnership rather than parenting! I wish you well for Ramadan. Happy reading! Best Regards,
Shantanu Phansalkar, CEO & Publisher, SPI Group.
Disclaimer
SPI Publishing has endeavoured to bring out a publication that is reliable and informative. This is true to the best of our knowledge. The opinions presented are those of individual writers and not necessarily endorsed by SPI Publishing. The content in this magazine is protected by copyright law and is copyright to SPI Publishing unless credited otherwise, and may not be copied, reproduced or republished for any commercial purpose or financial gain.
JUNE - JULY 2016 ┃ Intelligent SME
BUSINESS ANNOUNCEMENTS
Mohammed Bin Rashid School of Govt. MoU with ARADO
The Mohammed Bin Rashid School of Government (MBRSG), a research and teaching institution specializing in public policy in the Arab world, has signed a comprehensive memorandum of understanding (MoU) with the Arab Administrative Development Organization (ARADO) to collaboratively train and empower professionals in Arab institutions and share expertise in areas of public administration and scientific research. Under the partnership, the two
organizations will seek to enhance key areas of government management development sciences by holding collaborative workshops, programs and training activities on latest trends in government and corporate excellence. With the objective of advancing government departments in the Arab region, the various training activities will outline and examine the strategies, methodologies and challenges in restructuring government services and achieving and building sustainable
excellence. The workshops and programs will additionally explore the diverse execution strategies and impact of government initiatives. As an early outcome of the MoU, the two organizations will hold a workshop in May 2016 to develop the professional capacities and knowledge of senior government leaders in the Arab region. The workshop will also explore techniques to achieve organizational excellence based on scientific and academic concepts. Commenting on the partnership, His Excellency Dr. Ali Sebaa’ Al-Marri, Executive President of Mohammed Bin Rashid School of Government, said: "We are delighted to partner with the Arab Administrative Development Organization. MBRSG is committed to building partnerships with both public and private institutions that serve the nation and the wider region. With an integrated education, training and research platform, we are keen to share our expertise and educate Arab countries on government structures and policies and public administrative development."
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JUNE - JULY 2016 ┃ Intelligent SME
BUSINESS ANNOUNCEMENTS
Middle East airports invest heavily in security technology Region’s aviation sector outpaces global growth. Airport Show 2016 to showcase latest technological solutions for security As the Middle East outpaces global growth in air traffic, airports in the region are investing millions of dollars toward airport technology and system upgrades to ensure seamless passenger experience along with security. According to IATA, the Middle East will grow strongly and see an additional 237 million passengers a year by 2034 and the global trade association estimates the total market size will be 383 million passengers. The United Arab Emirates (UAE) leads aviation growth in the region. To effectively handle the rapid growth, airports are increasingly focusing on investing in smart technology to effectively handle large passenger volumes, while ensuring security at the same time. Mohammed Ahli, Director General, Dubai Civil Aviation Authority (DCAA), said: “As the aviation industry continues to grow and become more complex, it is important that we reinforce an effective, transparent and honest safety culture.” Major General Obaid Muhair Bin Suroor, Deputy Director General, General Directorate of Residency and Foreigners
Affairs (GDRFA) in Dubai, said: “At the Dubai Airports, we are using the latest smart technology which is recognised as the most efficient and advanced from security point of view. The number of international passengers is rapidly increasing and is estimated to cross 7 billion by 2030 and according to IATA this presents its own set of challenges. We must ensure that we are able to handle the numbers without compromising on security. And this is what we adopt at Dubai International Airport to keep pace with the growth of passenger numbers, where we expect to have 85 million passengers by the end of this year.” According to a report by Frost & Sullivan, it is estimated that the global annual spend on airport security would surge to US$12.67 billion in 2023, up from US$8.22 billion in 2014. Among the key categories of aviation security technologies to be watched over in the coming years are Safety and Surveillance Systems, Bird Control Systems, CCTV equipment, Passenger and Baggage Screening, Perimeter and Access Control, Digital Surveillance and Biometrics, all of which will be available on site at Airport Show.
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JUNE - JULY 2016 ┃ Intelligent SME
BUSINESS ANNOUNCEMENTS
Dubai Creative Clusters Authority partners Dubai SME
Agreement Aims to Contribute to Dubai’s Goal of Promoting Innovation and Creativity Dubai Creative Clusters Authority (DCCA) has signed a partnership agreement with Dubai SME, the agency of the Department of Economic Development (DED) in Dubai mandated to develop the growth of small and medium enterprise (SME) in the UAE, to support entrepreneurs and enhance the capabilities of the vital SME sector in the emirate. Signed by His Excellency Ahmad bin Bayat, Director General of DCCA, and His Excellency Abdul Baset
Al Janahi, CEO of Dubai SME, the agreement aims to identify a shared mechanism of cooperation, provide entrepreneurs with facilities to grow their business, and encourage more youngsters to set up innovative home-grown projects. The agreement, which articulates Dubai Government’s efforts to support the SME sector, will exempt members of Dubai SME as well as entrepreneurs that have set up shop in free zones within DCCA’s jurisdiction from licensing fees for five years. In addition, discounts on visa-issuing fees by charging the basic fees only will also be extended to them. His Excellency Abdul Baset Al Janahi said: “Signing the agreement with DCCA complements our aspirations to boost entrepreneurship development in Dubai. We commend the authority’s efforts in supporting this vital sector. We consider DCCA a key partner that provides enabling facilities and services to the youth for inspiring them to establish innovative start-up projects.” The Dubai Creative Clusters Authority (DCCA) is the licensing entity for 4450 local, regional and global corporations, of which the majority are SME companies. Dubai SME comprises numerous projects and initiatives that are led by Emirati youngsters in many vital economic sectors.
Emirates Chartered Accountants Group, is ISO 9001 – 2008, a certified International firm of Chartered Accountants headquartered at Dubai, U. A. E. We are a member of IEC- Net, an International network of Auditors, Accountants and Tax professionals with its head quarters in Paris. Emirates Chartered Accountants Group is known for its excellence in client service, quality, professional integrity, accountability, innovation and best practices.
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JUNE - JULY 2016 ┃ Intelligent SME
BUSINESS ANNOUNCEMENTS
Emirates NBD winners of Group Fintech Challenge 2016 Three winners were selected from twenty finalists after a three-day hackathon hosted by the Bank in London The Challenge invited Fintech experts, startups and individual developers/ innovators from across the globe to present their big idea on financial technology and the winners selected by the senior management of Emirates NBD and Emirates Islamic were: First Prize : Atsora Team Second Prize : The Fluid Motion Team Third Prize : The vLendRight Team Technology Prizes : Kuan Inc. and Cargochain Social Media Prize : @Sudkes from vLendRight team Abdulla Qassem, Group Chief Operating Officer at
Emirates NBD said: “Emirates NBD is very proud to host an international competition aimed at fostering entrepreneurial solutions within the Fintech sector. A platform of this caliber is a first for a bank from the Middle East and we remain committed to promoting innovation in the banking sector. The ideas that we have received from these startups have us convinced that innovation is ultimately the key to sustainability.” Suvo Sarkar, Senior Executive Vice President and Group Head of Retail Banking and Wealth Management said: “Technology is constantly evolving and Emirates NBD strives to remain at the forefront of it. The ultimate goal for us, however, is to leverage emerging trends such as Biometrics, Artificial Intelligence and more to grow what has always been the Bank’s greatest strength: delivering superior customer experience.” During the course of the challenge, an international roadshow was held in eight countries and over 200 applications were received from a total of 89 cities in 36 countries globally. 35 of the applications were from revenue-generating startups and 57 had prototypes. The international outreach was supported by 10 media partners.
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JUNE - JULY 2016 ┃ Intelligent SME
SME INVESTMENTS
SME Equity Investment in Dubai In a bid to attract funding for small and medium enterprises (SMEs), Dubai SME, the agency of the Department of Economic Development (DED) mandated to develop the SME sector, has come out with a report – “The State of SME Equity Investment in Dubai.” The report outlines the means to attract equity investments and funding for SMEs.
W
ith “The State of SME Equity Investment in Dubai” report, Dubai SME has presented a case for investment in the sector from private equity (PE) investors, venture capitalists (VCs) and angel investors. According to the report, the total value of capital investments in SMEs across Dubai amounted to nearly Dh110 million in 2014 and it is expected to grow by 15 per cent in the near term on the back of a 30 per cent growth in the number of deals, driven largely by activity from existing incubators/ accelerators and earlystage investment firms. “The ‘State of SME Equity Investment’ report represents an ideal opportunity in the medium to long term, not only for SMEs in Dubai, but also for those across the region. The estimated total investment in small businesses in the region is about Dh3 billion and with clear strategies these funds can be channelled into sectors of vast growth potential,” said Sami Al Qamzi, Director General of DED. Launched as part of the Dubai SME 2021 Strategic Plan, the report is aligned with the strategic economic direction of the UAE, particularly the focus of Dubai on innovation and investment towards building a knowledge economy. Limited sources of funding to start businesses is a major gap in the SME ecosystem, which is underlined by the finding in the report that 80 per cent of the start-ups relied on self-financing as a source of capital. “Based on the findings in the report, Dubai SME has formulated
14 www.theintelligentsme.com
strategies and initiatives to improve SME performance in the years ahead, facilitate SME access to financing, and enhance SME competitiveness as well as their value-add to the UAE economy,” he said. The report refers to the slow pace of innovation among SMEs in Dubai even when they have the potential to attract investment and remain growing. “We will work on the recommendations in the report to fill the gaps identified, and promote equity financing, thus creating an environment conducive to SME growth and sustainable development in Dubai,” Abdul Basit Al Janahi, CEO of Dubai SME, said. The report calls for robust insolvency and bankruptcy regime for onshore companies in the UAE and exploring the option of a secondary market, which would allow small and mid-sized companies to list without complex regulatory preconditions related to corporate governance and accounting. A sponsor-supervised capital market model, which will allow an SME to be brought to list by a sponsor with expertise in corporate finance and regulatory compliance has also been suggested, in addition to allowing SMEs to raise capital up to a certain limit without significant regulatory burden.
The report recommends that there should be international standards to help investors assess the feasibility of business ideas as well as investment options in infrastructure, ecoinnovation, including technical centers and centres of excellence in research and development. Absence of authoritative trading benchmarks makes investors apprehensive of investing in business ideas and evaluating risks, says the report. INTRODUCTION Dubai SME2021 plan includes 18 strategic initiatives grouped under 4 dimensions covering: Entrepreneurship Promotion, Policies and Regulations, Business Development programs, and Research & Statistics. One of the main initiatives is "Promoting and equity financing culture”, which is significant to drive greater innovation, increased productivity and enhanced competitiveness. In the first phase of the initiative, Dubai SME conducted a comprehensive study the SME equity financing landscape in Dubai and the wider region. The study included inputs from different stakeholder communities covering international best practices, Supply and Demand aspects in addition to the characteristics of the legal environment. Key growth drivers
• The market (in terms of value) is
JUNE - JULY 2016 ┃ Intelligent SME
SME INVESTMENTS
expected to grow in the near term by 15% on the back of a ~30% growth in the number of deals (fostered by an impetus in activity from existing incubators / accelerators and earlystage investment firms). • Additionally, the expected increase in the number of industry-specific incubators and accelerators expected to come online, triggered by strategic government investments; is likely to further boost a growth of startups within the economy. • UAE (particularly Dubai) has witnessed a lot of foreign interest from business angels in the US and Europe. There is an inherent opportunity to convert these into active investors, focused on UAE based businesses. • Equity financing as an alternate investment avenue is gaining rapid acceptance and interest among wealthy individuals as well as corporate professionals, via recently launched crowd funding platforms like Eureeca and organized angel groups such as EnVestors, Venture Souq, and WOMENA. The relative uptake of equity financing is observed to be more pronounced among knowledge oriented sectors like ICT, Life Sciences, Media and Healthcare. These sectors are also intrinsically associated with a higher degree of creative and innovative output. The limited adoption of equity finance in traditional sectors like trading and construction is mainly due to the characteristic of such firms typically reinvesting their surpluses into operations, principal reliance on short-term working capital and limited need for growth capital which is quintessentially associated with equity funding. DEMAND-SIDE PERSPECTIVES: From the demand side, the key inferences are based on a survey of 250 SME businesses, belonging to sectors that have a high propensity for uptake of equity funding. Out of these 250 SMEs, 98 have actually sought equity investment. Looking at the key characteristics of entrepreneurs who successfully availed equity financing, we find that: • 85% are male
Abdul Basit Al Janahi, CEO of Dubai SME
• 79% are corporate crossovers • 68% have no prior entrepreneurial
contacts, networks, opportunities) from the investor
background
SUPPLY-SIDE PERSPECTIVES: On the supply side, Out of 200 angel investors covered in the study (majority of them based in Dubai) • 33% of them are ‘Active’ angels making at least one investment in a year. • They typically tend to invest in the range of USD 50,000 to 300,000 in exchange for a 15% - 20% equity stake, in the target business. • 96% male, 88% expats, and 69% have Masters or PhD degrees
• More than 70% are between 30-40 years old. Additionally, SMEs who successfully availed equity financing, were found to have the following characteristics: • More than 80% of them have an operating vintage of less than 3 years; • More than 50% have less than 10 employees • Majority of the SMEs (57%) within the respondent set are early startups with a sales turnover of less than AED 10mn • 81% have B2B business models The Key challenges that were highlighted by entrepreneurs included: • The difficulty of identifying relevant investors • The need to access relevant advisory support (to negotiate terms and structure the deal) • Lack of Post investment follow-on funding • Non-cash support (access to
The main challenges highlighted by investors included the facts that: - There are no specific regulations relating to the accreditation and qualification of individual investors; - There are no regulations related to crowd-funding - In addition, One of the key challenges faced by investors is registering changes to share capital (related to uncertainty & lengthy procedures in relation to onshore and offshore requirements).
15 www.theintelligentsme.com
JUNE - JULY 2016 ┃ Intelligent SME
MEET THE CEO
The Growth Enabler
Ramy Jallad, CEO of RAKIA and RAK FTZ SPI Group hosted Ramy Jallad, CEO of RAKIA and RAK FTZ at its 22nd Emirates NBD Global Business Series session. In an up close and personal interactive discussion moderated by Shantanu AP, CEO of SPI Group, Ramy opened up about his work, motivations and decision making and gave a clearer picture about the economic development on the emirate of Ras Al Khaimah. Here are excerpts of the session. 16 www.theintelligentsme.com
JUNE - JULY 2016 ┃ Intelligent SME
MEET THE CEO
What is your day to day role as CEO of RAKIA & RAK FTZ?
I am honoured to take the leadership of RAK FTZ and RAKIA and pursue their growth and development. In our day-to-day operations we seek to attract new clients from all over the world as well as strengthen the relationships we have with the more than 12,000 companies that call RAK FTZ and RAKIA their investment home. Expansion of our activities boosts business opportunities for foreign and local companies, that traditionally opened offices in Dubai and Abu Dhabi. We are helping to diversify RAK's economy by developing various sectors and opening new doors. Recently we have created a special offer for media companies including those in TV and radio broadcasting, publishing, advertising, communications, media monitoring and services, production and film support, music, entertainment, and events management. We create new business opportunities with unique competitive solutions to encourage entrepreneurs, SMEs, and other companies and we are now also expanding the Academic Zone at RAK FTZ to attract international educational institutions in the emirate. RAK FTZ plans include establishing new warehouses in the RAK FTZ Technology Park to meet the investors' increasing demand for industrial facilities, master planning the Academic District to attract international educational institutions in RAK; continuously developing the infrastructure of the Industrial Park; and developing the one-stop shop physical location for the clients' convenience. We host companies from more than 100 countries and representing more than 50 industry sectors.
As a business leader, what has made you so successful?
I think that the fact that I listen more. Listening to what requirements are really needed to do a job right and I think also at the same time going with my gut feeling when I know truly that something is right and wrong. I don’t do things or go in a certain direction just because of peer pressure or the pressures around me. I just go with the flow and listen to my intuition even if it means going against where everybody else wants to go. “Trust me, it can be vert challenging to convince everybody to make a u-turn and move away from their set ideas.
How have you managed to grow your business over the past few years?
Looking back to 2011, we had about 4,000 companies operating in RAK FTZ. A couple of years later, our client portfolio rose to over 8,600. Our determination in developing not only our facilities but also our systems and processes to provide ease to clients are definitely paying off. This is a proud moment for each of us in the free zone. In 2015, RAK FTZ has undergone major infrastructure developments, which included the opening of 100 new warehouses with permanent water and electricity supply; the launching of its District Cooling Plant; and the inauguration of its Boulevard Business Centre in Downtown Dubai. These developments highlights our ongoing commitment to provide a full range of facilities to meet investor needs. The new warehouses are made from advanced, high-performance materials with reinforced concrete flooring designed to accommodate the heavier machinery that is often used in industrial manufacturing. They also have more electrical power capacity than their predecessors.
What are the advantages of RAK FTZ over the other ones in the UAE?
The UAE has become a leading host for global foreign investment because of its political stability, sound economic policies and business-
ABOUT RAMY JALLAD Ramy Jallad is the Chief Executive Officer (CEO) of Ras Al Khaimah Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA). His role is to set the policies and strategies of both RAK FTZ and RAKIA, as well as to plan, lead, and direct all aspects of the free zones to ensure that they meets their overall objectives. His role also involves representing both free zones locally as well as internationally in front of stakeholders, other entities and public. Furthermore, he is responsible for providing inputs and recommendations for future development of RAK FTZ and RAKIA which would have overall positive impact, including the constructive influence on the development of the Emirate of Ras Al Khaimah. Previously, Mr Jallad served as the Chief Commercial Officer at RAK FTZ, overseeing all of its profit-making operations. In that role, he worked closely with the Marketing team to tactically promote RAK FTZ, with the Business Development team to attract clients, and with the Client Relations team to build and strengthen the free zone’s relationships with its more than 8,600 companies. Mr Jallad has over 24 years of professional experience. He has developed prime, valueadded real estate sites by focusing on the development, management and operations of commercial and industrial free zone business parks in the UAE. Before joining RAK FTZ and RAKIA, Mr Jallad held various key leadership positions including: VP – Properties & Free Zone for Abu Dhabi Airports Company, Executive Director of Customer Services & Business Development for Dubai Technology and Media Free Zone (TECOM), and General Manager of Caltex Oil Company in Yemen. His previous responsibilities included leading teams that delivered award-winning customer service, one-stop-shop operations as well as sales and marketing. Mr Jallad is fluent in English and Arabic. He is a graduate of Western Michigan University in the US, with a Bachelor of Science degree in Mechanical Engineering. He is also certified as a Lead Assessor by the European Foundation for Quality Management. Additionally, he is an executive trainer in leadership, sales and marketing, customer care and satisfaction, along with business development and people management.
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MEET THE CEO
On a personal level, what are your rules or do you have some rituals or something you genuinely follow in your daily routine?
friendly regulatory environment. Within the UAE, RAK FTZ provides international investors one of the most stable and secure environments to establish and grow their businesses, regardless of size. It has matured into the preferred destination for diverse sectors and industries, including value-added distribution and trading, consulting and other services, education, and a variety of manufacturing activities. RAK FTZ clients have the advantage of a more cost-effective base of operations than the big city centres of the UAE, allowing them to maximise their profits and grow their companies more quickly. In addition to this favourable cost structure, the free zone also offers a comprehensive set of award-winning, ongoing business setup services and facilities. Our objective is to 'cut the red tape' and 'roll out the red carpet' for our clients. We provide fast-track licensing and registration, investor and worker visa issuance, and freedom to source employees and materials globally. With business solutions tailored specifically to accommodate individual company needs, RAK FTZ offers business centre facilities, a variety of offices, secured warehouses and land for lease across three specialised free zone parks. These include the Business Park for office clients, the Technology Park for trading and light manufacturing, and the Industrial Park for heavy manufacturing. Additionally, the Academic Zone caters to educational institutions, vocational schools and training centres.
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Equally important are the qualityof-life facilities, such as housing, education, health care, resort and entertainment establishments, which cater to the Emirati and expat population. The cost of living and doing business in Ras Al Khaimah is substantially lower than the UAE average, and dramatically lower than other traditional business centres such as London, New York, Hong Kong and Singapore.
You believe in your gut but do you also trust in God or a higher power while making important decisions?
Well I listen, I consult and I calculate while making decisions but a lot of that comes with your own gut feeling to make a right calculated decision. I can tell you that nine times out of ten I make decisions based on the gut as the starting point which is my gut instinct. I believe that a smart person takes that gut feeling and then supports it with facts because today in organizations you have people to convince you with numbers that might tell you otherwise. I think that’s actually my guiding force. Again, today we all live in the numbers society, with reports, with KPI's and we all look at our metrics in the organization to know even when you want to make a decision especially in finance or especially when you're talking about spending any kind of money. While we have those kinds of research and analysis, it's a balance between that and the gut.
My teams are here so I don't know really what I can say as they're always in the know of my personal rituals and personal win or loss first. I always wake up in the morning promising myself to do at least five things I have to do no matter how the day goes and how plans go. As CEO, my agenda changes constantly like whether it's twelve o'clock at night or when everybody leaves the office but those five things have to be done. It could be anything, making a phone call, reading a report, answering a couple of emails that are very important or making some decisions. Sometimes results take a long time and one starts to question whether, at the end of the day, am I making a difference? Am I adding value? The fact that I do those five things and I do them myself makes me know that I'm moving forward as well I make it a point to always have my ear and my finger and on the pulse of every single part of the organization because I've got to know what's happening. People might think that’s micromanagement but I think it's not. In order to run an effective company, you've got to know what's happening in every area. That's what makes anybody successful in an organization, to strategize it, to drive it forward, to understand the complexity, to provide solutions and to also communicate with the team and guide them. I think sometimes I've got to know the business a lot more than they do from a general management point while I have to also rely on their expertise because they're the subject matter experts. But I have to know the big picture.
Do you believe in work-life balance or you love your work so much that everything is consumed by that? I work really hard but I don't expect my team to be like me. I expect that my team gives us what they can. I think they know that I don't expect them to spend all their hours in office. In today's age, as long as you
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MEET THE CEO
RAS AL KHAIMAH AND RAK FTZ
get the work done and you get your targets and you've got your tasks and you've got your responsibilities under control, you are doing fine. I've always been very passionate about what I do. There were some jobs that I liked and some jobs that I didn’t but I can tell I am madly passionate about all of them. I am somebody who thrives on negativity because I look for the opportunity. When there is a challenge I love it and it is the reason I work. To function well, I have to have a very supportive network around me and understanding from people who know me is that I am very passionate about getting results. I'm very passionate about delivering. I can deal with sleepless nights now the systems are in place, but there’s always something that we can improve upon and I'm always looking for innovation, for improvement. Entrepreneurs here can understand that. As long as you're making progress, as long as you're taking those steps and doing something, improving and taking calculated risks and moving that day forward, that's what moves business and what drives a corporation. I've discovered the hard way when I was always looking to get the right solution, always looking to get it right before it's launched never worked. You have to continue to keep moving forward and not wait to do an action till you get all the information, till everything is 100% right.
In general what qualities are you looking for in people and what's really important when you hire?
From my years of working in different organizations and coming across and interviewing thousands of people, I would say that the best performers are the ones who have that drive and that passion more than the experience. People are quick learners as well and you're not going to hire somebody who doesn't have the professional qualifications and competence but it doesn't mean that they have to have the exact experience that you need. People can be motivated just like myself and I take it from how I built up my career. I don't know everything and I still don't know everything but I know that today in the workplace, passion to get something done is a lot more important than just having a beautifully written CV with experience.
Do you have some trick question or something which helps you know about people? Again, by learning and interviewing so many people, you become better at the interviewing skills but usually you can find out how much passion that person has by not asking work related questions. Ask them what they like to do, ask them how they solve the situation, ask them really what situation or what problem that they actually experienced in their life and how they got out of it and ask them about the particular hobby. Ask them what they like doing outside of work and once you have passion as a character trait, it can be translated even in the workplace.
As the northernmost emirate of the UAE, Ras Al Khaimah aptly means "top of the tent". Today, that phrase implies more than the emirate's mere geographic location; it also illustrates Ras Al Khaimah's emerging role in global trade and business. Ras Al Khaimah is one of the seven emirates in the UAE, along with Dubai and Abu Dhabi. As one of the country's fastest-growing emirates, Ras Al Khaimah has a domestic economy that has expanded nearly 8 per cent over the past few years. Ras Al Khaimah has been ranked among the Top 10 Smalland Mid-sized Global Cities of the Future, along with Zurich, Geneva, Edinburgh and other internationally recognised cities. The ranking, published in the London-based Financial Times' fDi Magazine, lists Ras Al Khaimah in eighth place overall, and in the top 10 of an impressive total of six categories. The buzz about the businessfriendly investment environment of the emirate has drawn thousands of international companies to locate in Ras Al Khaimah Free Trade Zone (RAK FTZ), a cost-effective market entry portal to the rapidly growing Middle East, Africa and South Asia region. RAK FTZ has been recognised by fDi Magazine as one of the best free zones in the world for small- and mediumsized enterprises that are looking to access the vast potential in this fast-evolving region of more than 2.5 billion people. Businesses in the free zone do not have to pay any corporate or income taxes, and they can own 100 per cent of their ventures. Companies can also fully repatriate their profits, and business costs are up to 50 per cent lower than in other emirates, allowing companies to maximise their return on investment.
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MEDIA VENTURES
The growth and growth of our video world Intelligent SME interviews Adam Ridgway, CEO of Travall World, winner of Disruptive Entrepreneur Awards at SME World 2016, about the enormous potential of video content creation, distribution and usage in the region. its potential on social or as the predominant means of presentation especially as it is seen as expensive?
"Being present in the hyper-growing sector of digital content production, it awards me the pressure, need and ability to set aside several hours each week to research (on and off-line) facts and trends in a bid to find that swirling spectrum of blinding luminescence which is the gateway to the 'Future of Digital.' Of course I haven't discovered it yet, nor has anyone, not even Mr Facebook himself. However, what is about to unfold upon anyone who isn't prepared, may reveal a reaction and not a response," says Adam Ridgway.
Has video taken off as per 20 www.theintelligentsme.com
Video has ‘taken off’ by many progressive agencies/clients and marketers, the rate of consumption of video is very much NOW, this is the phrase I’ve been delivering in various keynotes. Many people think video is expensive, yet what many don’t yet fully appreciate, is video is evergreen content. It’s there for life - and beyond. As long as it’s effective with a solid story being shown it’s proven to be one of the most effective forms of marketing. 65% of all traffic online will be video in 2017 (statistic courtesy of Mark Zuckerberg amongst others) are we in a position to ignore this? Digital content doesn't have to be expensive, but it does need to be effective. You can spend hundreds of thousands of 'AED/$/£' producing a video, do you need to? If it isn't delivered/ broadcast effectively, it won't result in ROI - you don't get the budget signed off for another three years and you're left behind with a beautifully shot un-engaging video.
Are we ever going to get past the GIFs and other short videos on social that are used to convey unusual moments? Please outline the potential of the various forms of video, as a means of presentation and communication. GIFs and are attention effective and fun. Creatively not WOW, but new and some Cinemagraphs are impressive. I wrote a blog recently on effective video ideas (www.travall.tv/blog) which summarised how to capture great video content - with technology as advanced as it is, one’s creativity can be applied. If you apply my phrase of “Show your audience everything, tell them nothing”, then there will be new formats of cool ways of broadcasting a message. I’m looking forward to creating some of them. We’ve been discussing 3D videos with Google recently, very very exciting conversations being developed. The charming conclusion to one conversation was “it’s all about the story being shown”. A 3D video of the business class of an airline is a ‘nice to have’ will it trigger sales? Doubtful. Will a journey you can interact with create brand engagement? Absolutely. Lest not forget the adage that simple can sometimes be the most effective solution. Our approach is, "What is the message wanting to be delivered? We then challenge ourselves with, “How best to do it”.
Any forecasts/ numbers that you may have of video adoption/ increase in usage, in the region or globally, in areas
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MEDIA VENTURES
besides in entertainment. Travel and Tourism will use a lot more video content in the future - it’s one of the most effective (both financially and in time) to help a viewer/customer get an immersive experience. 87% of people take reviews on board before making a purchase, and the most effective is word-of-mouth - so Travall are pioneering video reviews 'Show your city through your eyes’ and is proving to both users of our app/ website and B2B in achieving greater figures influencing audiences. To really send the industry into a frenzy the lenses on smart phones need to be enhanced for internal/ low-lighting environments. The Sony cameras are proving the best at the moment - yet the video editing apps on Android aren’t as fantastic as Apple's iMovie. I’ve had several meetings with Google recently which was an awesome experience both here in New York which offered various elements for consideration - one of them recently is to focus on localising the Mobile App, which we are bringing forward to Q3 this year in time for a collaborative drive with Google in November 2016. We are very thankful and conscious of our location and want to give back something fun, engaging and positive to the region. We didn’t focus on it before as we needed to get it right in one language UI/UX before localising.
Can you give examples where Travall and its products are making a difference and being adopted rapidly? I mentioned B2B earlier - our features to generate Big usable Data for clients is proving very effective, many clients are adopting our approach to build user loyalty, engagement and interaction above some of the other popular entertainment, dining, voucher and discount apps around. For example: If a ‘Travaller’ creates a video review, shares on social media they not only earn points and status, but receive a 20% discount off their bill. This is one effective uptake. Another is how we actively promote and market each and everyone of our
clients - there’s a method and secret behind our strategy.
Since Travall was conceived in the pre-Periscope era, how do you expect it will pan out as Periscope etc. grow in usage? What other threat environments do you foresee and how will your business model change? When conceptualising Travall, we carefully structured a multitude of features and revenue streams some of which will remain dormant for a some time - but are able to be implemented depending upon markets, economy and necessity. This protects the business model somewhat, if its able to lean on one vertical whilst another is affected, then this should prove to be a robust model. Travall have just signed a deal with a global hotel booking engine and an international food delivery and booking platform which will allow us to expand into key markets throughout Q3 and 4 this year. It’s incredible exciting and humbling that these international digi-bohemoths are wanting to work with us.
As a business start-up, where does Travall stand today, in the journey to a profitable, highvalue enterprise? We are humble and appreciate where we are today, we also have a creative yet focused vision of where we will be in 1-5 years (there’s also a 10 year plan which features certain people working for the group who don’t even realise it yet). Travall World has been a considerable investment both financially and time - constantly needing to adapt to accommodate the speed, understanding of the market and decision makers. We research a lot - internationally, leading iconoclasts pave the way, naturally. We need to educate as much as inspire our clients to spend on themselves. From our pre-launch phase, we are high value, big impact and effectively priced - allowing us volume. We packaged a 'business in a box’ option for franchising and JVs - which are
currently being discussed in several territories, with several tourism boards. It’s good to take stock and see where and how we are valued to investors (helping to reaffirm vision) and also maintain a focused humility. It also allows us to be on the radar of various VCs and Funds. Our stakeholders and I are discussing external investment opportunities to accelerate growth internationally. However, my primary focus is very much deep routed in the UAE.
What additional potential do you see for Travall in the workd of IoT & Wearables? IoT, this has excited me for 8+ years now - I had a discussion whilst on business overseas where a few of us were discussing WIFI and connection speed being taken for granted by most of us these days, I also stated that there will come a time that Internet will be able to ‘refract’ and interconnect everything. Clearly I’m not the pioneer of this life-enhancing motion towards, but a keen advocate for the solution. An element I wouldn’t like to lose some control of is the personal interconnectivity, the ability of being able to communicate with each other. We’re already experiencing this with friendships being kept alive through messaging, relationships being enhanced with Skype, business deals agreed through email. The human connection does need and deserve attention. Which is what we are delivering, and will continue to focus on. We really are pioneering Digital PR - that ‘word-of-mouth' albeit digital recommendation based platform to visually and emotionally communicate your experiences with a community. Having a permanent connection will enhance our sharing ability and communication of things - enhanced by IoT. So we are all aboard! In terms of wearables, the ideas are slightly more advanced than the technology at the moment - we’ve seen it with most tech solutions and this is no variant. VR, AI, 3D are all fantastically impressive, are we going to lose the want to experience something physically? No. Will it inspire us to travel, immerse and commit to that experience? Absolutely.
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SME SET-UP
Business starts to gather pace It’s important for anybody who wants to set up business in UAE to have a clear idea of what they are getting into; they should always ensure their concept is viable and that their idea fits with the personal vision and the market trends, says Saeed Khalifa Mohammed Al Fuqaei, Chairman & Co Founder, Shuraa Management and Consultancy LLC.
How has your business of setup services changed over the past few years, with e-Government advances and the ease with which new businesses can be setup in the UAE? At Shuraa, our goal is to assist clients to the best of our ability and we always welcome new tools which allow us to do so. While great strides have been made with online services for those wishing to establish a new business in Dubai, we still feel there is some way to go and a personal touch is still as critical as ever. New services available online have streamlined the process dramatically and allow us to be more efficient in terms of processing the various applications required. This is fundamental to our development as any time saved can be deployed in other, more profitable ways to the benefit of our business. Most of the challenges in company formation stems from people being unaccustomed with the process and Government departments involved. Hence our specialist knowledge of the field and experience gained over the 15 years are invaluable to our customers.
Why Shuraa? What are your advantages over competition? We are engaged in an extremely competitive market and we welcome the daily challenge as competition is what drives a company to evolve and improve. It’s crucial that an organisation never stands still and rests on its laurels and one should always look for ways to improve. Our
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competitors play a big part in focusing us to do better each day and to look for ways to improve our product and operations. Our competitive advantage lies in our experience and in the highest service levels available anywhere in the market. Since our formation in 2001, we have been growing every day and continually develop our workforce with the sole purpose of assisting our clients to achieve their aims. Many of our staff has been with us from the beginning and their experience and knowledge, coupled with the dynamism and hunger of the newer employees, forms a potent combination. We nurture a familial working environment and believe that a happy employee is a productive one. This allows us to offer unparalleled levels of service with the knowledge and resources we have built over the years. As well as offering the company formation service, we remain a key part of our client’s strategy to help them to grow over months and years. As we service so many industries, the landscape is forever evolving .For example, a client may establish a company with three employees when they first move to Dubai but their needs changes as they grow and we stay part of the mix. Three employees can easily become 30, all of whom require visas, office space and PRO services. The initial company may diversify its business portfolio as they identify new opportunities and we are there to help at every step of the way. This relationship grows stronger over time and we are proud to say that our clients treat us a key pillar of their development.
What are the basic requirements for any business
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SME SET-UP
set up? Do you set up companies across industries and segments or do you stick to a few sectors? The basic requirement for any business startup is for the investor to have funds and valid documents and most importantly, a clear idea of what business activity they wish to carry out. Shuraa works across sectors and industries, not only in mainland Dubai but also in other Emirates, Free Zones and Offshore. We are perfectly positioned to help almost anyone wanting to operate in the region. We provide a one-stop solution for all those who intend to set up their business in the UAE and therefore offer a comprehensive range of services and company formation packages - right from initial establishment all the way to the necessary post business set-up activities.
What is Shuraa’s vision for company setup industry in the UAE? How can you best cater to your customers?
As we all know Dubai is a constantly evolving city and developing at an almost unprecedented rate into a truly global business hub. The world is getting smaller and Dubai is perfectly positioned between the East and West to take advantage of the increase in international trade and globalization. Therefore the demand for our services is as high as ever and will continue to grow as we see more and more countries wishing to trade in the United Arab Emirates. We believe there will be a greater degree of internationalization as foreign organizations recognize the tremendous opportunities in Dubai. There is a focus on increasing the number of languages spoken and nationalities of our staff so we can
New services available online have streamlined the process dramatically and allow us to be more efficient in terms of processing the various applications required. This is fundamental to our development as any time saved can be deployed in other, more profitable ways to benefit our business. 23 www.theintelligentsme.com
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SME SET-UP make existing and potential clients feel more comfortable. Many investors find the task of setting up their business to be quite daunting. They may have a brilliant concept but feel overwhelmed with the actual process of establishing their company before their able to trade. Most of them get confused not knowing what to do and how to do it so we help navigate the various stages. We support them in making decisions on whether they want to base their venture in a free zone or not, the licence procedure, the documentation process etc., and offer a customised experience to meet their specific needs.
What is your advice to entrepreneurs looking to set up new companies in an uncertain market? Do you think it is the right time to set up a new business? It’s important for anybody who wants to set up business in UAE to have a clear idea of what he or she is getting into; they should always carry out research into the business environment to ensure their concept is viable and analyse if their idea fits with the personal vision and the market trends. We don’t believe the UAE has been as badly affected as some other countries and the market is stable with new companies forming as usual. The UAE has shown tremendous growth when compared to many other global economies and I would attribute this to the visionary approach of our leaders. The federal government has a dynamic approach with strong emphasis on long-term, sustainable development and this benefits everyone. Due to the diversified economy in UAE, it has maintained positive growth despite oil price fluctuations. This has led to enhanced confidence among international investors who feel protected to a degree by the UAE’s resilient economic policies which make investment opportunities highly appealing.
As you know the SME sector makes up for 80% of the economy in this region. How 24 www.theintelligentsme.com
does Shuraa help reinforce and strengthen the SME sector through its services? SME’s are crucial in any market and this is particularly true in the GCC. Not only do smaller and medium sized companies make up a huge portion of the economy but they also drive innovation, encourage creativity and generally enrich the business environment. Monopolization can be extremely detrimental to the business environment and scare off foreign investors who feel they will never be able to secure a foothold. This leads to stagnation which in turn stifles modernization and while it’s great for some, the pace of development is significantly slower which is harmful in the long run. By having so much of the UAE’s economic strength split amongst thousands of different companies, it creates an environment where people have faith that they can make a difference and grow. People work harder if they believe their company can grow and make them more money. Opportunity stimulates growth and if you can do something better than your competitor or devise new solutions to problems, then you should have the promise of reward. It’s a key factor in job and wealth creation which then stimulates the economy and is better for everyone.
With Expo 2020, many companies are setting up their base in the UAE. Do you think that Expo 2020 will help Shuraa expand? Absolutely. Dubai is almost unrecognizable to how it was a decade ago and we think this will be even more true of the next few years. You only have to look around to see the investment by the government and private companies & individuals to improving the city and much of this is gearing up to 2020. The eyes of the business world will be on Dubai and the city is determined to make the most of it and is on track to do so. Naturally companies will see the volume of visitors as potential customers and partners and this is going to be a key driver for businesses
which is great for an organization like ours. However, it’s also evident that 2020 isn’t the only focus and there’s a palpable sense of growth in Dubai not only for the next few years, but for decades. Companies can feel secure investing here as it has become more attractive to International organizations. Shuraa helps them achieve their goals and is perfectly positioned to help existing clients fulfil their potential. We see huge potential for growth, both with existing and future partners.
Besides a well-established infrastructure what are the other advantages a business owner can leverage if he chooses UAE as a base for his business? First and foremost, UAE is a wonderful place to live and work. There aren’t many places in the world which can offer as many attractions, activities and the general standard of living. While business may be a driver for a move, people won’t stay unless they’re happy which is why they are in the UAE! Infrastructure is the key to facilitating business but also evidence of a government and leader that is committed to developing the country. People feel safer investing when they know the government is serious about nurturing the business environment which is clearly the case here. You must also acknowledge the impact tax and import regulations have on the market, particularly with the various free zones. The way the system is structured here allows companies and individuals to keep the money they earn which is hugely attractive to business owners and individuals alike. If you also take into account the legal framework developed for foreign investors, UAE is almost uniquely attractive to operate in. No matter what industry you may be in, UAE has an enormous labor pool with increasing levels of specialization driven by strong education as well as the number of expats. Coupled with Dubai’s location and reputation as a trading hub, it creates the perfect blend of opportunity for companies all over the world.
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SME SAFETY
Upgrade Fire Safety Codes Almost 90% high-rise skyscrapers built before 2012 in GCC are cladded with Non Fire Retardant grade Aluminum composite panels due to no strict requirement by specifiers and authorities. Things have changed with initiatives taken by UAE Civil Defence’s new building codes and standards says Rizwan Sajan, Founder and Chairman of Danube.
What is the difference between Fire Retardant ACP (Alucopanel FR) and normal ACP? Fire Retardant ACP (Alucopanel FR) and normal ACP, both are ACP but with a different core material. The core of normal ACP is a thermoplastic core, while Fire Retardant ACP core is made of specially formulated fire retardant mineral core.
What is fire retardant mineral core? The core is composed of special chemicals like Aluminum Hydroxide and Magnesium Hydroxide. These chemicals do not ignite or burn, thus they resist fire. These chemicals do not aid in propagating, enhancing or spreading of fire and thus become a block for fire to reach any
combustible material to propagate fire, resulting in retarding of fire. In case of a fire, they simply heat up and beyond specific temperature release water. The released water helps in extinguishing fire by cooling of the fire environment, and water vapor generated from this water dilute the concentration of oxygen in the air. Both temperature and oxygen in air are 2 essential components of the fire triangle to sustain a fire. All 3 phenomena- Non combustibility of Aluminum Hydroxide and Magnesium Hydroxide, lowering of temperature, and dilution of oxygen concentration in the air help resist, retard and to a limited extent even extinguish fire.
What is the melting point of Core and Aluminum? Aluminum alloy melts at 660.32˚C, and the mineral core inside melts completely only after the temperature rises above 2500˚C.
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SME SAFETY
Can you explain the Fire retardancy with the help of FR core?
According to local research, what is the most common cause of fires in the GCC region? Please feel free to break this down on a countrywise basis, if possible.
Alucopanel FR resists fire damage by reducing all 3 elements of a fire triangle and suppressing Smoke.
There are number of reasons that lead to building fires and they range from spark in electric wiring, barbeque inside apartment, cigarette butt thrown uncaringly etc. Likewise, fire propagates rapidly because of thermoplastic core material used in manufacturing of aluminum composite panels that worked as fuel in fire propagation as oxygen is certain at height. We all know that three elements are required in proper combination before ignition and combustion can take place - Fuel, Air to supply oxygen and Heat (ignition temperature) to start and continue the combustion process. Almost 90% high-rise skyscrapers built before 2012 in GCC are cladded with Non Fire Retardant grade Aluminum composite panels due to no strict requirement by specifiers and authorities. Things have changed with initiatives taken by UAE Civil Defence’s new building codes and standards.
Fuel Control Alucopanel FR has Non combustible fire-safe mineral core. Mineral core is equivalent to inorganic minerals which do not burn. Aluminum metal does not burn either. PVDF with paint can just char under fire. Thus the Alucopanel FR panel stops fire by limiting fuel supply to the fire. Heat Control The mineral core after being heated upto a high temperature releases water and absorbs a lot of energy in this process. This brings down the temperature of the place and water douses the fire. Till the temperature is maintained below the ignition temperature, fire will not start again. Aluminum Hydroxide (ATH) decomposes at about 180-200oC, absorbing a considerable amount of heat in the process and giving off water vapor. Magnesium Hydroxide (MDH) decomposes at 300-330oC to give water and Magnesium Oxide and absorbs energy in the process. Oxygen Control Released water from the core at 100 degree centigrade converts into water vapor which mixes with air. This mixing dilutes oxygen concentration in the surrounding air at the place of fire, which again helps in resisting fire. Smoke Control The core after being heated turns into refractory gelatinous material, which forms a protective layer over polymer and does not allow smoke gases to come out and oxygen to go in the core and spread fire any further. In short the fire resistance in Alucopanel FR is a function of not just lessened ignition and fire spread, but also: 1. Fire resisting 2. Fire intumescence (An intumescent is a substance, which swells as a result of heat exposure) 3. Fire retarding properties
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How can fire safety be improved in each country?
Fire propagates rapidly because of the thermoplastic core material used in manufacturing of aluminum composite panels. This works as fuel ito continue the combustion process.
First and foremost, only certified materials should be approved in GCC and regular inspection by an accredited 3rd party certification body should became mandatory throughout GCC. At present Dubai, Sharjah & Doha are strictly following the new code and approving fire retardant building materials but other GCC countries are still allowing the use of non-fire retardant building materials, in particular for aluminium composite panels. How do the risks of fire accidents differ with the age of a building: for instance, I would assume the façade of an older building is safer than currently-used glass façades, but wiring and other MEP systems would be more problematic in dated structures. At present, designers and specifiers
JUNE - JULY 2016 ┃ Intelligent SME
SME SAFETY completion certificate.
What are the current fire standards for aluminium sandwich panels used for construction in the UAE? Also, is this a UAEwide decision or only Dubai Municipality’s? When were these codes updated, and what did the new updates include?
are strictly following Civil Defence & Municipality approved products. This was not the case earlier. New buildings are using much better and stronger materials compared to old buildings. But the wiring of old buildings should be rechecked periodically.
What are some of the most notable GCC projects Alucopanel ME has been involved with? Which projects are you currently working on? ALUCOPANEL™ the world’s leading manufacturer of ACP (Aluminum Composite Material) is a subsidiary of the Danube Group of Companies. Alucopanel launched Class A (ASTM E84) grade material in March 2014 which became very popular after getting its core material approved as “Class A” which was first time in GCC after the Civil Defence revised the fire safety code in 2013. Alucopanel products are exported to entire GCC and to Russia, Europe, South America, Asia, Middle East and Southeast Asia. In a very short span of time, ALUCOPANEL™ has been involved in major projects in GCC – Dubai Festival City Phase II, Doha Festival City, Nakheel Mall of Riyadh; Jeddah Port Tower; Juffair Heights Twin Tower of Bahrain; Derwin Tower in Qatar; Grand Mallof Riyadh; CEILO Tower
in Bahrain; ALBA Aluminum Bahrain, AMFA Tower in Juffair, Bahrain, Lusail Tower in Qatar and so on.
What are current codes/ standards for structural and design elements such as façade materials, flooring, steel, and roofs in the UAE? There are some serious intricacies involved when it comes to codes/ standards for structural and design elements- such as facade, materials, flooring, steel and roof in the UAE. However, Civil Defence is responsible only for the design and not for the materials. The contractors must provide [fire-retardant] certificates for each material used in construction for it to be approved by Civil Defence. Strict regulation is laid out for validation of certificates of importing, installation and testing a guaranteed fire and alarm system by an approved installation and maintenance company. An undertaking certificate is required for maintaining fire equipment by the owner and the certificate of installing fire rated doors and cables is also needed along with a copy of the trade license and maintenance contract of fire equipment and systems. Besides, a road-map of the premises, is a prerequisite for the issuance of a
Dubai Civil Defence has taken significant steps to ensure the safety of buildings and the general public by updating its Fire and Life Safety Code in 2013 and made it a requirement that exterior cladding is fire-retardant on all new buildings over 15 meters tall. The latest UAE fire-safety code are much more stringent than before and clearly emphasises that the core material used in cladding panels must be tested separately by exposing it to fire without the aluminium skin. This test is an absolute must to achieve Class A level when tested in accordance to American Standard ASTM E84. The local and international fire codes generally require all exterior walls to be of limited combustibility subject to full and small scale fire tests. Dubai Civil Defence drafted specific regulations relating to exterior walls in 2012 and have been applying these requirements which normally involve full scale facade fire testing combined with small scale tests. It is recommended that existing buildings be evaluated where a fire risk assessment is undertaken by a suitably qualified person to understand the fire risks and appropriate measures be incorporated into the buildings. Class - A2 (DIN 4102) grade ALUCOPANEL™ - aluminum composite cladding façade is recommended for buildings more than 15 meters tall and for a lesser height, Class A (ASTM E84) grade material is suitable. It’s about setting a trend of safety and security that everyone in the society takes responsibility for. It’s about getting a little better every day, all the time.
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JUNE - JULY 2016 ┃ Intelligent SME
GROWTH STORY
the stepping stone! At the heart of any successful business is a great idea. Some seem so simple; we wonder why nobody thought of them before. One such thinker is Adnan Nalwala, Executive Director, Akar Technical Services and Natural Stone Company.
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r. Nalwala ventured into his 40-year-old family business almost seven years ago, but his relentless dedication has helped the company grow from strength to strength and deliver prestigious projects such as Sultan Qaboos Grand Mosque, Royal Opera House Muscat, Sultan Taimur Bin Faisal Mosque -turning his facility into one of the largest supplier and global distributor of natural stone in the GCC region. So, what keeps him rock solid in the stone business? Versatility has been a key strength, points out Adnan Nalwala and seeking new opportunities to invest for the long-term by innovating everywhere, from sales and marketing to the supply chain. As the saying goes, “success is nothing but doing common things uncommonly well.” ISME engaged in a candid interview with the young businessman to understand his innovative business practices that largely determined the destiny of his business. Below is the edited and condensed version of the interview.
In view of the current market scenario in the construction 28 www.theintelligentsme.com
and building materials sectors impacted by low oil prices, what is your view of the outlook of the natural stone market? Since oil represents less than a third of the UAE’s GDP, we don’t expect the oil price fluctuations to directly impact/ affect construction projects and future plans. Historically, too, the oil industry has performed in cycles with peak and off peak performance period. Coming back to the natural stones segment, it’s crucial to understand that stone in today’s market accounts for as much as 12 per cent of the cost for many construction projects. Hence, it’s critical for delivering successful projects to understand how to make best use of stones. We have recorded consistent top line growth in the last few years. We are optimistic this momentum is likely to continue going forward in the anticipation for Expo 2020 -especially for Dubai.
Where do you see the growth coming from? UAE’s economy and financial
ecosystem is quite resilient, with Dubai’s strategic geographical location making it a credible hub for global firms to access the fast growing trade corridors of Africa and South-east Asia. We expect the anticipation leading up to Expo 2020 will drive a lot of infrastructure projects in the region, bringing the major players from both established markets and developing markets together.
What is the annual demand for natural stones in Oman, UAE and the GCC? Where do you source the natural stones from? The raw material is an integral component of our product offering. Hence, we rigorously evaluate our product category to balance the choices our customers expect from us, keeping in my mind the latest flooring
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GROWTH STORY
and landscaping trends. And thus, we have quite a diverse portfolio for sourcing raw materials, which includes local natural resources as well as imported raw materials from Turkey, Italy, Spain, China, India, and Portugal.
What was the investment in Natural Stone Co LLC – when it was established? The factory set up cost was over 22 million dhs.
What is your experience from the current economic slowdown? How did the current slowdown affect your business and the future order book? Construction and real-estate is a cyclical business, which is
synonymous not in Middle East alone, but also across the globe. As I said earlier, Dubai is not an oil economy, but a destination for people to come on a holiday, shop and, also access the fast growing trade markets of African region. We, truly, believe, that the near-term economic challenges would not obscure the upward economic trajectory of the overall region over the medium-term. Since, we continually evaluate our product offering to ensure that it meets the needs and interests of our customers and have delivered prestigious projects to the government in Oman and UAE, we have successfully managed to keep our order-book strong and sturdy despite the negative headwinds.
How does natural stone benefit as compared to other tiling and landscaping products in terms of environmental and
performance aspects? We strongly believe that excellence in quality, health safety and environment conservation are absolutely vital for the sustainability of our existence in the business -which enables us to succeed in meeting the customer’s needs. We always encourage the fulfilment of these requirement through various incentivized initiatives as follows: Identification and tractability of material at first point of entry by providing item code identification. ➢ Reduction in sound pollution by providing architectural solutions at working premises. ➢ Reduction in dust pollution by providing modern dust collectors. ➢ Improves quality of work by providing modern and robotic computerized precision controlled ➢
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GROWTH STORY machines ➢➢ Energy conservation by implementing Zero drain out policy at factory premises ➢ Reduction in electrical consumption by installation of LED lightings. ➢ ➢ Natural lighting and cross ventilation at factory buildings. ➢ Healthy and safe working environment by utilizing Gantry carne and Overhead crane ➢ Strict implementation of no work without PPE at factory premises. All of the above initiatives are complementing the four best practices commissioned by the Natural Stone Council of U.S. such as water recycling, minimizing of dust/noise/vibration, solid waste management and efficient transport and handling of stone during pre and post production stage.
What is the annual production capacity of Natural Stone Co LLC? We can process over 15,000 sq meters of material in a month. We have nearly doubled our output with the new factory and also the extra dry lay area allows us to move material out of the factory sooner, giving the clients a shorter lead time for the execution cycle for each project.
How many people are working in the factory currently? As one of the largest natural stone facility in the region, we have a powerful access to a network of quarries, skilled craftsmen, artisans
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and advanced technology tools. As of today, our workforce strength stands over 600 people.
Which is the biggest market for you? Having delivered prestigious projects such as Sultan Qaboos Grand Mosque, Royal Opera House Muscat, Sultan Taimur Bin Faisal Mosque, Natural Stone is set to grow its footprint across Oman and is also in the process of acquiring business contracts in the United Arab Emirates.
Do you have any plans to expand production? If at all, then when do you want to expand and how big would be the investment? We have already expanded production with a 25,000 M2 facility in the Sultanate of Oman. The factory, the largest in the region, is one of the most reputable stone supply and installation providers, with access to a network of quarries, skilled craftsmen, artisans and advanced technology tools. The factory is equipped with the latest machines such as the CNC Water Jet Machines, 6 Axis CNC Diamond Wire Saw Machines, 5 Axis Stone Working Station, Gang Saw, Bridge Cutting Machines, Block Cutters, Single Head Polishing Machines, Side Cutting Machines, Lathe Machine, EOT Cranes, Gantry Crane. Three tips you would give to a budding business man: 1) Have a financial runway for three
years at least. Most entrepreneurs have runways for only six months and that’s when the business ‘runs out of gas’. Starting a business is like running a marathon, not sprinting. You need to able to last the long haul and it takes time to build a brand and understand the business cycle. If you don’t have the cash flow sorted for at least 3 years, your business in all probability will experience a road block. 2) Get a value-ad investor on board. Don’t just partner with equity with investors that are giving money to own your business. They must bring something to the table in terms of a client base or good team members who will execute. 3) Unless your business is specially creating a demand, have access to a client base that will be willing to give you work from day one. Most entrepreneurs think of getting the client after the business is set up, that generally is too late. Understand what the gap is between the offerings from the client, and fill that gap. It will give your business and justify the switch from the client to you, from your competitor. 4) Lastly and most importantly build a good team. It is nearly impossible for a single person to do everything, which is why a good business is also called a “company”. It comprises of talented people that will get things done. An entrepreneur must be able to draw a clear vision of why people should work for them and highlight the “x” factor about the service/ product offering.
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JUNE - JULY 2016 ┃ Intelligent SME
RECRUITMENT
Businesses should be hiring working mums
Mums@Work is a new initiative providing mums the opportunity to return to the workplace in a flexible manner. Louise Karim, Managing Director, says that the value and talent that mums bring to business merits supporting them in their path back to the workplace and helping them achieve a perfect balance between motherhood and career.
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RECRUITMENT
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n the not so distant past, women had children and upon returning to work were often made to compromise between their family and work responsibilities. With more women having children in their late 20’s and early 30’s and focusing on their careers earlier on in their lives, thereby establishing years of invaluable professional experience, it is a mystery why companies are so hesitant to employ women just because they are mums. On average, 77 percent of mothers in the UAE who have taken time out from their careers to have children are keen to get back to work, according to a recent survey we conducted in association with YouGov. Why is it though that so many of these mums, who are ready to return to the working world, are finding suitable employment opportunities so difficult? Out of the mums we surveyed – 38 percent stated it was difficult to juggle family and workplace commitments due to a lack of flexibility in the workplace. This inflexibility of companies is causing businesses to lose out on one of the biggest untapped talent pools this region has to offer. Until now, the region hasn’t placed a focus on flexible or parttime working, but luckily that is all beginning to change. Backed by one of the largest independent recruitment firms in the GCC - Mackenzie Jones and inline with the UAE’s commitment to gender equality and diversity, as outlined by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, Mums@Work is the first company of its kind in the Middle East, focused on helping mums to revitalise their careers and connect them to employers offering flexible working across the region. Mums@Work offers the perfect solution; an answer to mothers struggling to find suitable employment, while bringing significant savings to employers, who can hire employees on a part-time as opposed to a full-time basis.
At Mums@Work we have been meeting with multinationals, local companies and SME’s to discuss ways they can become more appealing to working mums by offering flexible working schemes. By offering such opportunities, such as remote working or flexitime, businesses can have their pick of talent, while mums can comfortably split their time between the home and office. The main conflict behind the low employment rate of mums is a lack of education in the benefits mums can bring to the workplace. Mums@Work prides itself on delivering in-depth education and statistics that highlight the proven benefits. We not only speak to the candidates to find out their criteria for roles, but we also speak to businesses, to ensure a perfect match. More than 50 percent of working mums we surveyed said the most important factor they evaluate in a business is their working culture and whether they would be a good fit. Having a family at home means that working mums aren’t as easily adaptable as a single adult, which can be an issue for businesses, but it’s addressing these issues and finding the flexible options that can provide a win-win solution. It’s not just the inflexibility of companies that is proving a barrier for mums getting back into work. Again, a lack of education in the legalities
of working visas means new mums are missing out on employment opportunities. Mums@Work not only connects candidates with clients – we go way beyond this; by guiding, mentoring and ensuring that women have the skills and confidence to achieve the jobs they want. Mums@Work also looks at external factors, such as suitable childcare options, so mums embark on their new role with peace of mind. We also offer a Careerhub, which is an informative online portal to help ease women back into work. On this platform, mums can read articles written by the experts on getting back into work or hear advice from women in the same position. It provides an insight to those looking to have children, to find out the opportunities available for them post pregnancy, as well as providing mums with the tools to learn new skills or refresh old ones, in areas such as networking and social media. Gone are the days when women have to choose between family and their careers. By changing perceptions, educating employers and assisting women looking to work, Mums@ Work hopes to revolutionise the way companies employ and view working mothers. The countless benefits include an improved economy and a stronger, more diverse work force.
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JUNE - JULY 2016 ┃ Intelligent SME
HYBRID MOTORING
Al-Futtaim Motors
launches all-new tough and sophisticated Toyota Innova • Bold new design seamlessly blends toughness and sophistication • Enhanced performance and versatility • Comprehensive safety features offer all-round protection
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l-Futtaim Motors, exclusive distributor of Toyota in the UAE, launched the all-new 2016 Toyota Innova, which combines the essence of a Multipurpose-vehicle (MPV) with the tough, emotional elements of an SUV and seating for up to eight passengers. Designed with the concept of being a multi-performance vehicle thanks to the tough and sophisticated exterior, the enhanced interior and the new powerful and efficient powertrain for improved driving dynamics, the allnew Innova proudly stands out within the MPV segment. Aside from the redesigned exterior, the new Innova makes use of an improved and fortified frame, resulting in better handling and a more comfortable ride. With its strengthened frame and SUV-inspired styling, the Innova delivers a spacious and comfortable journey regardless of the road or weather conditions. Saud Abbasi, Managing Director of Toyota at Al-Futtaim Motors, said: “The Light Commercial Vehicle market is one of great importance to Al-Futtaim Motors, driving a substantial part of our business. Last year, the Toyota LCV line-up recorded an average of 8% growth, while the LCV segment itself saw a growth of 4% average”. “This performance is influenced to a great extent by cars like the Innova, which has traditionally been extremely popular among Taxi operators and SMEs, as well as by individuals looking for a reliable and versatile vehicle that,
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like all other Toyota vehicles, delivers complete peace of mind. With the new generation, we are offering even more grades that will cater to an even wider audience, fulfilling any need or requirement.” Tough Yet Sophisticated Design The new Innova's exterior is carefully designed with SUV elements creating a stable and imposing appearance. The chrome-plated moulding of the trapezoidal grille has been designed to connect with the headlamps, while the side turn signals, positioned on the lower portion of the bumper, have been given distinctive shapes to accentuate the corner and provide a sharp overall impression.
The side view of the Innova is just as dynamic and sporty. The top profile of the side windows slopes down towards the rear, giving a flowing impression that balances the overall height of the vehicle. The shoulder line runs from the headlamps to the rear combination lamps to produce a connected image, while the front and rear fenders are structured to emphasise the presence of the large, sporty wheels. The eye-catching rear combination lamps have been positioned higher up, adding to the sense of stability the vehicle projects and are emphasised by the structural theme of the rear. Aero Stabilising Fins have been added to the rear combination lamps – contributing to stability and controllability.
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HYBRID MOTORING
A new suspension, equipped with a proven double wishbone (front) / 4-link suspension (rear) combination, enhances ride comfort on all road surfaces. Advanced damping technology – which allows for driving force to be controlled in real time based on actual road conditions, thus reducing vehicle pitch behaviour – further contributes to a smooth, comfortable ride with less vibration and harshness. Noise is reduced at its source and further isolated from the cabin to realise exceptional quietness that can be appreciated on every drive.
Spacious, Refined and Versatile Interior The new Innova features an emotional interior design that combines strength and space. The wide, spacious interior atmosphere puts emphasis on all the seats while also creating a silhouette unique to a high-quality MPV. Silver and woodgrain-patterned ornamentation are boldly placed throughout the cabin to exude luxury and elegance befitting a premium vehicle. The driver-friendly instrument panel features a 4.2-inch TFT colour MultiInformation Display, which allows the driver to access a multitude of vehicle information, important warnings and in-car entertainment. The display is positioned high on the instrument panel, allowing the driver to easily and safely monitor vehicle information while driving. It displays content like driving information, idling-stop time and Eco-Drive indicator (Eco Judge/ Eco Wallet). The new Toyota Innova is available either as a 7-seat model (with captain seats for second row) or with an 8-seat (60/40 split, fold-down seats for second row) configuration option. Ergonomic shapes and materials coupled with optimal seat firmness, provide second-row seat passengers with enhanced ride comfort. Seatback tables for the secondrow seats have been integrated into the front seatbacks and can hold laptops, drinks and other items.
The new Innova enjoys flexible seat arrangement that facilitates easy folding and stowing to increase luggage compartment space when needed. Head clearance has been increased by 5 mm for the front seats and 10 mm for the third-row seats – creating the feel of a spacious interior. Various storage compartments have been made available to provide practical storage options for both family and business use. Device connections are in place to provide superior functionality and allow smartphones and laptops to be used freely. The centre console tray of the second-row seats features a USB/minijack to connect and store smartphones and portable music players in an upright position. In addition to the tray, a DC-12 V power outlet is integrated in the back of the centre console box. For added convenience and comfort, the Innova comes a cruise control function and an all-new airconditioning unit that helps maintain a cool interior - even in traffic on a hot day at maximum occupancy. Enhanced Performance The new Innova is available with a 2.7-litre 4-cylinder engine which produces 164 hp and 25.0 Kg-m of torque, mated to a 6-speed Super-intelligent Electronically Controlled Transmission that delivers enhanced fuel economy and driving performance.
Comprehensive Safety Features The 2016 Toyota Innova puts a lot of emphasis on safety and comes packed with a number of active and passive safety features. The Innova’s Anti-lock Braking System (ABS) with Electronic Brakeforce Distribution (EBD) prevents the tyres from locking during braking and allows for measured brake-force distribution between the front and rear wheels according to the vehicle condition. High-tensile strength steel sheets and supplementary materials are also widely used throughout the body structure to help reduce passenger injuries and impact-absorbing materials throughout the cabin further contribute to occupant protection. The new Innova is also available with a full-colour Rear View Monitor System, which ensures peace of mind when reverse parking. The vehicle also features an advanced Pedestrian Protection Performance system where impact-absorbing structures are used for parts such as the engine hood, front fender and cowl to reduce impact force to the heads and legs of pedestrians during a collision. The 2016 Toyota Innova comes with the Supplemental Restraint System (SRS) for the front seats along with a knee airbag for the driver. The all-new Innova is available in 6 exterior colours across all Al-Futtaim Motors showrooms, with prices starting conveniently at AED 92,900 for the SE grade, AED 98,900 for the SE+ grade, and AED 102,900 for the top of the line Limited grade.
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JUNE - JULY 2016 ┃ Intelligent SME
SME INSURANCE
SME Claims & Risk Management Regardless whether a an SME buys insurance or not, proper risk management processes are very important and proper processes and housekeeping are in the best interest of the SME owners and the long term success of their business.
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SME INSURANCE
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any SMEs do not realize how exposed they are to damaging claims that can not only affect their business’s reputation but also lead to business closure. Despite some high profile events, such as the recent storm of March 2016 in the UAE, which temporarily raised awareness and interest in insurance, there is still a very significant portion of SME clients which remain uninsured and therefore vulnerable to increasingly volatile and damaging events that businesses face every day. AIG SME Package solutions are tailored around the concerns of small businesses, helping them manage their risks, respond to unforeseen losses and thrive. The AIG SME Package Value Proposition in centered around 5 core pillars: • Efficient, Hassle – free Trading platforms. • Customer focus/specialized product. • Distribution expertise. • Analytics & Science Expertise. • Complete solutions for Small business. Taking into account the large volume of number of SME insureds, portfolio analysis is a critical element of the business process as it allows to see developing trends in a number of fields, including very importantly, claims. Furthermore, based on the quality of the data that is available, the analysis can go to a very granular level which will in turn provide us with the necessary information to continuously enhance the AIG SME Package value proposition. Through the insights derived from the analysis of the SME portfolio, the majority of the claims, both in intensity and frequency are found to occur in the Food & Beverage industry across all of their activities: from injuries to their employees while preparing food, handling cooking equipment or delivering food to customers, to potential food poisoning of customers all the way to destructive fire damages and the consequential loss of income that could follow. Damages to Retailer’s stock from water damages are also very prevalent, particularly when it isn’t placed on pallets / shelves above ground level. The type of claim most likely to
The majority of claims are found to occur in the Food & Beverage industry across all activities - from injuries while preparing, handling, delivering and potential food poisoning all the way to destructive fire damages and the consequential loss of income that could follow. cause the greatest impact to the business is by far Fires occurring in Restaurants. Aside from the direct damage to the restaurant’s own premises, fire can easily spread to neighboring premises adding substantial liabilities to the SME owner for damage to neighboring businesses, as well to his landlord’s property, in the event (as is usually the case in the UAE) the restaurant is leasing the premises from which it is operating. The most common cause of fire in restaurants lies in the failure to properly and regularly clean the extraction ducts in the kitchen, allowing for the build of grease. While zero risk of course doesn’t exist, it is possible through some specific actions to substantially minimize the risk of grease build-up catching fire due to exposure to the heat for the cooking equipment, or, in the event that a fire does take place, to mitigate the spread and damage that this fire could cause. For example, implementing the following “common sense” processes around the kitchen will greatly aid in minimizing the potential risk of fire and its spread.
a) all cooking equipment to be installed operated and maintained in accordance with manufacturers’ instructions b) flues and exhaust ducting to be securely fixed and free from contact with combustible materials c) all deep frying equipment to be supplied with a metal lid and fitted with a thermostat set to prevent the temperature of fat or oil from exceeding 205 degrees Celsius d) cooking equipment not to be left unattended when on a source of heat or when switched on (whether or not in use) e) Fire rated fire extinguishers and fire blankets to be kept available f) All extraction hoods, canopies, grease traps, filters to be cleaned daily, in case of heavy use g) Ductwork to be cleaned at the very least every month, in case of heavy use Regardless whether a restaurant buys insurance or not, proper risk management processes are very important and proper processes and housekeeping are in the best interest of the SME owners and the long term success of their business. Having clauses & conditions to that effect in insurance policies is not meant to be a dissuasion to insurance, but on the contrary they aim to help highlight areas of improvement and risk mitigation in our commitment to be our clients’ most valued insurer. AIG’s SME portfolio currently consists of 6,500 active SME insurance policies in the UAE which is a result of extensive customer focus and excellent service. AIG’s customer focused attitude has been recognized in 2016 by awarding AIG the award of MENA SME Insurer of the Year. AIG SME Package Solutions will continue to invest in innovative products, customized solutions and portfolio analysis to identify further trends and even more comprehensive packages.
Alexandros Nezeritis SME Package Assistant Manager Middle East and North Africa Zone, AIG
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JUNE - JULY 2016 ┃ Intelligent SME
HUMAN RESOURCES
The Employee Feeling Appraisal A
It is becoming increasingly important to ensure everyone within an organization is appreciated and each has received a personal touch from the Line Managers & Team Leaders. The key to identifying this and to understanding how the team is “feeling”, is a robust and interactive FEELING appraisal system, says Jonathon Saunders, Managing Director for Africa and the Middle East, BigScreen
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s technology and online habits evolve, HR and recruitment has to evolve and change too. There is an evolving need for leveraging leadingedge technology to revolutionise not just the hiring of candidates, but also reviewing employees, and allowing employers and management to measure the “feeling“ factor within an organization. We have seen some of the changes in the use of technology in recruitment and job boards. While most make clients and candidates more accessible to each other, all seem to lower levels on engagement and polarise candidates and clients within their markets/industries, sometimes limiting new ideas, fresh thinking and innovation. RECRUITMENT CVs look the same. Job boards are the same. Most are flat and one-dimensional. Candidates feel unwanted and unable to present their true selves. Imagine a world where not only can we ensure candidates are made to feel special but also save HR (whether internal or outsourced) and Line Managers 80% in screening costs and over 50% in hiring costs. What we are seeing are needs that can be addressed effectively with a 21st century platform in the cloud. This would allow organisations to create their own job boards, customised to their own personalised requirements. Candidates can be invited to apply for jobs not just in the form of ordinary CVs but in terms of checking all their
credentials through video Q&A, to social media interactions; leveraging not only online web options but using mobile applications. Once a job is published, the technology allows the recruiter (whether this is the line manager, the HR team and/or an external recruiter) to screen each candidate without any initial face-to-face interaction, saving time and money. They can then review all the data, and follow this up with either a face-to-face interview or set further tests for the potential shortlisted candidates. For example, tests built into our BigScreen system range from text and multiple choice, to psychometric. Potential candidates can download the BigScreen application on Apple and Android mobile devices for free (or log on to the web interface on Windows) and respond to the job, addressing the questions set by the business. RETENTION Taking this one step further. In an era where Management needs to optimise its resources, it is also important to identify and retain nurture all talent in any organisation. It is also becoming increasingly important to ensure everyone within an organization is appreciated and each has received a personal touch from the Line Managers & Team Leaders. And the key to identifying this and to understanding how the team is “feeling”, is a robust and interactive FEELING appraisal system. HR Managers and Line Team Managers would invite employees to
JUNE - JULY 2016 ┃ Intelligent SME
HUMAN RESOURCES
participate in feeling appraisals. A very smart mobile application that leverages online (both web and appbased) systems to allow the individual employees to respond, using a combination of questions set in short videos, some text-based questions or multiple choice This would mean that management as well as recruitment and HR (both internal as well as external agencies) can allow managers to set appraisals at any time during the year, simple and intuitive to temperature check how that person feels about his or her role, contribution or anything else they feel which can affect the feel good factor in their job and company brand. This means that both recruiters, HR and management can now work in harmony, fully leveraging the digital technology with its customers and candidates from anywhere and at
any time. It’s a three dimensional approach to understanding how your employees see themselves, and how their management perceives them in the working environment. BEHAVIOUR PERSONIFICATION Behavioural Personification IS, without any doubt, going to revolutionize the way folks perceive themselves in the working environment. It’s a three dimensional approach to understanding how your employees see themselves and how their management perceives them in the working environment. Team members are invited to complete the relevant “Behavioural Personification” questionnaire. A report is generated, categorising the staff into one of the four categories: HERO, ANGEL, DISCOVERER, or EXPLORER: each with a set of traits
and habits that make the individual who they are. Each profile comes with an easy to read description with additional consultancy and coaching being available if a company chooses to develop this further
Jonathon Saunders is the Managing Director for BigScreen and is in charge of overseeing its expansion in Middle East, Africa and Asian regions. BigScreen has been launched as the first real game changer in the Saas technology platform for Human Resources and Line Managers requiring easy and cost effective tools to manage candidate hiring and employee relationships with their Managers.
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JUNE - JULY 2016 ┃ Intelligent SME
SME FINANCE
Bankers: Don’t spread the stress, serve it Banks need to be patient and listen, working over the long-term as a real consultant and partner to business, and providing solutions rather than asking oft-repeated questions. Banks need to offer partnership rather than parenting says Satyajeet Roy, Head - Business Banking, Commercial Bank International PSC
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‘I
t’s all about relationships; knowing your clients, keeping in touch with them and understanding their needs.’ Sound familiar? This is a common tagline used by banks in the region, demonstrating a focus on customer service. But service is a fluid concept, and it surprisingly falters in a market downtown, when companies need it most. Take for example Mr. U’s company, Care Computers. Most banks and relationship managers loved the business model, which had performed very well for seven years by buying stock in bulk from China and serving growth in the GCC. The business had good margins and cash sale, and so the bank provided him with a great relationship manager, a dedicated service desk, internet banking and credit facilities, all at very competitive rates. The client regularly met and interacted with senior bank staff and was treated like a king.
The hypothesis ‘Customer is King’ seemed alive at parties. But suddenly the party came to an abrupt end. What had happened? How did the ‘service concept’ and ‘client centricity’ suddenly become non-existent? The answer is simple - the client was experiencing stress. And there could be no worse time to reduce the level of service than now. As the low oil price drains regional liquidity and slows down the economy, there has been a lot of discussion about the stress felt by SMEs in the media as well as within banks themselves. The industry is now exploring ways to deal with SMEs that cannot pay back their loans. Some are actively working out the facilities, while others may look at it as a mere transfer of the portfolio from one ‘cost code’ or ‘business segment’ to another. Others have argued that the business is now with the remedial department, and that they will manage it, within the best interest of the banks. We are all forgetting a crucial point though. In this troubled time, it is the client who really suffers, and they require a lot more than the regular service delivery. In contrast, what they get is a reduced level of interaction with their relationship manager, more questions to be answered, more documentation, and, worst still, delayed action and a higher cost to their regular transactions. The word ‘service’ is forgotten and the relationship team makes sporadic visits at best. However these are far from service visits and are only meant to check inventory levels, something that would have been more helpful if done earlier.
JUNE - JULY 2016 ┃ Intelligent SME
SME FINANCE
However, if we were to follow a few simple measures during these situations, chances are that collectively the client and bank can work together to correct or avoid a negative situation. To begin with, banks need to accept the reality rather than amplify the misery. If a client cannot pay back a loan, it may be due to mistakes they made or global market conditions. Perhaps the bank did not see it coming. In most cases, it is a combination of all three. The quicker the bank resolves the problem, rather than deferring to blame or defence, the quicker it can control the damage. It is easy and natural to take the high ground when the person sitting across from you is weak. Many relationship managers will question a struggling SME: “So when will you clear this outstanding?” Like an irate father talking to their son. Often the client plays the ‘junior’ role, accepting mistakes and hoping that he gets a little more time. However, situations like these actually require bank relationship managers to be patient and listen, working over the long-term as a real consultant and partner to the business, and providing solutions rather than asking obvious questions. Banks need to offer partnership rather than parenting. Another important factor to consider when servicing SMEs in a challenging environment is reducing their turnaround time. The best time for bankers to ensure that the service they provide to SMEs is timely is when markets are slow and clients experience regular delays. The quality and agility of a banker’s due diligence will determine whether a client goes under or survives. Usually one or two delays in payments, often caused by a genuine transaction being held up for ‘more scrutiny’, can start an avalanche. Don’t be in a hurry, but delaying a transaction for days for no material reason will have a negative effect. SME lenders also need to train their teams correctly in order to provide a better service to customers. Bankers need to be educated about how to use credit reviews to make correct sales decision, but also understand that the business cycles do have darker sides and should know how to manage a
What clients get is a reduced level of interaction with their relationship manager, more questions to be answered, more documentation, and, worst still, delayed action and a higher cost to their regular transactions. client in stress. Managers should question whether their sales teams have the bench strength to deal with clients in difficult head winds and take the extra effort and time to train them. This involves an understanding of classification of accounts, credit monitoring during volatile market situations, client and supplier communication and solutions analysis.
Last but not the least, it is important for bankers to maintain contact with their clients’ other banks. In challenging markets, the first reaction is often to squeeze as much from the client as quickly as possible. However, the sharing of information and collaboration with other banks will not only lead to a faster resolution, but more importantly, a complete one. Sharing the bad news is good news and combined efforts can help everyone. It is a natural to be concerned about cutting costs when revenues slow down - it’s the prudent thing to do. But cutting corners on customer service is the wrong thing to do. Onboarding new clients may not be a priority, but new clients usually expect ‘better’ service during tough times. They are conscious of their problems and have made a very hard decision in approaching the bank. Service guarantees during this time become a requirement.
Satyajeet Roy, Head of Business Banking (SME) Commercial Bank International.
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JUNE - JULY 2016 ┃ Intelligent SME
FAMILY BUSINESS
BEYOND THE 3rd GENERATION
Family businesses benefit both the local and global economies, and in a big way. However, fewer than 10% of them survive to the third generation and less than 10% of these owners are financially independent from their businesses when they retire, says Reg Athwal, Founding Partner & MD of RTS Global Partners.
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JUNE - JULY 2016 ┃ Intelligent SME
FAMILY BUSINESS
AN OUTLINE OF FAMILY BUSINESSES BY REG ATHWAL. Before you get the idea that family businesses benefit only the family members involved, think again. Successful family businesses are a winwin. They benefit both the local and global economies, and in a big way. However, how can it also be true that fewer than 10% of family businesses survive to the third generation and less than 10% of family business owners are financially independent from their businesses when they retire? Family firms come with their own set of unique advantages and challenges. In order to be successful, the advantages must be capitalized upon and the challenges overcome. ADVANTAGES OF FAMILY FIRMS Stability: Family position typically determines who leads the business and as a result there is usually longevity in leadership, which results in overall stability within the organization. Leaders usually stay in the position for many years, until a life event such as illness, retirement, or death results in change. Commitment: Since the needs of the family are at stake, there is a greater sense of commitment and accountability. This level of commitment is almost impossible to generate in non-family firms. This long-term commitment leads to additional benefits, such as a better understanding of the industry, organization and job, stronger customer relationships and more effective sales and marketing. Hoshi Ryokan, a Japanese inn keeping business founded in 718, is said to be one of the oldest family businesses in world. Family members have operated the business for 46—that’s right, 46—generations. That level of family commitment has led to an understanding of the business that outsiders, or those relatively new to the business, simply wouldn’t be able to replicate. Ford Motor Company managed to stay afloat during very difficult economic times, when other companies, such as Chrysler and GM, were begging for bailouts. Why? I’m sure when all is said and done there are several reasons, but I don’t think it’s any coincidence that Ford’s family
name was literally on the line. Flexibility: You won’t hear, “Sorry, but that’s not in my job description” in a family business. Family members are willing to wear several different hats and to take on tasks outside of their formal jobs in order to ensure the success of the company. Estee Lauder, who led one of the world’s most famous family businesses and was the only woman on Time magazine’s list of the century’s business geniuses in 1998, said of her company’s success, “I have never worked a day in my life without selling. If I believe in something I sell it, and I sell it hard.” Lauder did everything from cooking up pots of face cream to personally giving free demonstrations, from designing the packaging of her products to training the saleswomen who would sell them. Long-term Outlook: Non-family firms think about hitting goals this quarter, while family firms think years, and sometimes decades, ahead. This “patience” and long-term perspective allows for good strategy and decision-making. In describing his reasons why he didn’t want to take his company public, Michael Otto, second-generation CEO of Hamburg, Germany’s $18.5 billion retailer Otto Group, said, “We don’t have to come up with a good story every quarter for the investors and the press.”
Risks associated with not having a strong succession plan include poor leadership, family quarrels and often financial or legal trouble for the company.
Decreased Cost: Unlike typical workers, family members working at family firms are willing to contribute their own finances to ensure the long-term success of the organization. This could mean contributing capital, or taking a pay cut. This advantage comes in particularly handy during challenging times, such as during economic downturns, where it’s necessary to tighten the belt or personally suffer in order for the business to survive. DISADVANTAGES OF FAMILY BUSINESSES Lack of interest among family members: Sometimes, family members aren’t truly interested in joining the family business, but do so anyway because it’s expected of them. The result is apathetic, unengaged employees. In the public sector, employees that fit into this category would simply be fired. It’s not so simple at the family firm. Family Conflict: Conflict is bound to happen at any firm, but add in long histories, family relationships, and the kind of contempt that comes with familiarity, and the ante has just been upped. Deep-seated, long-lasting bitter fights and quarrels can affect every single person within the firm and can draw divisive lines. Because family members are involved, conflict can be more difficult to solve and can result in difficult endings. In 2005, a famous dispute between the sons of Reliance Industries founder Dhirubhai Ambani, Mukesh and Anil, divided India’s largest petrochemical manufacturer. When all was said and done Mukesh retained control of the petrochemical business, while Anil became chairman of Reliance Capital, Reliance Communications, and Reliance Energy. 3 Unstructured Governance: Governance issues such as internal hierarchies and rules, as well as the ability to follow and adhere to external corporate laws, tend to be taken less seriously at family businesses, because of the level of trust inherent at family firms. Unfortunately, this can be gravely detrimental. Take the example of Samsung Group, whose chairman, Lee Kun-Hee, was forced to resign in 2008 after being indicted for tax evasion and criminal breach
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JUNE - JULY 2016 ┃ Intelligent SME
FAMILY BUSINESS
of trust charges. While his three-year sentence was suspended, a fine of $109 million was still imposed. In this situation, a little governance would have gone a long way. Nepotism: Some family businesses are reluctant to let outsiders into the top tier, and the result is that people are given jobs for which they lack the skills, education, or experience. This, obviously, has a farreaching effect on the success of the company. In particular, it’s very difficult to retain good talent at lower levels if their performance, and their ability to succeed in the long run, is consistently being affected by incompetence at higher levels. More family firms are recognizing this issue and are taking care to strategically place outsiders in certain positions when necessary. Succession Planning: Many family firms lack succession plans, either because the leader doesn’t have the desire to admit that he or she will, one day, need to step down, or because there is too much trust in the family to work this out when it becomes necessary. In fact, because of close relationships and long histories, it is of utmost importance in family firms that a strong succession plan is in place. Risks associated with not having a strong succession
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plan include poor leadership, family quarrels and often financial or legal trouble for the company. Founder of Hyundai Motor, Chung Ju-Yung, named his son, Chung Mong-Koo, his successor in 1999. Just a year later, Chung Mong-Koo defied his father’s orders to step down. In 2007, Chung Mong-Koo was convicted of embezzling funds from the company in order to buy corporate favors from the Korean government. As you can see, a well-run family business is capable of having a positive impact not only on the family involved, but also on the local and global economies. Family businesses are capable of promoting entrepreneurism, generating wealth and security for families and for providing employment opportunities for those in the community. Unfortunately, the things that make family firms so wonderful are the family involvement, the highly personal relationships, the inherent loyalty and commitment, the flexible structure, but they also make them challenging to sustain for the long term. The goal, then, is to recognize and understand both the strengths and the weaknesses of family businesses, in order to better manufacture long-term success.
KEY LEARNING • Build a long-term vision for the family business that is compelling and gives purpose to why you are doing this. • Consider the type of family business structure you want to build and test out whether it can last three generations. • Understand family conflicts brewing that need to be resolved with some professional mediation and coaching.
Reg Athwal is the Chairman of RAW Group and the Founding Partner & MD of RTS Global Partners, the leading family business advisory firm in Africa, Middle East and Asia with 50+ members in 8 countries, with offices in Dubai-UAE and Nairobi-Kenya.
UAE Free Zone Company Formation Offshore Company Incorporation Offshore Banking Company Administration Directorship Services
JUNE - JULY 2016 ┃ Intelligent SME
SME TECH
Aid SME competitiveness Managed Hosting services provide flexibility, increase productivity and strengthen security with overall cost reduction says Sachin Bhardwaj.
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he number of Small and Medium Businesses (SMBs) is growing across the Middle East and bringing with them increased competition. Forward thinking SMB owners and managements are strategically embracing technology to streamline processes and restructuring their business models for greater profitability. However, continuous changes in the technology landscape, from software to hardware, cyber security to data recovery solutions are making it extremely difficult for them to manage and maintain their IT infrastructure in-house. According to IDC’s Worldwide Small and Medium-Sized Business Forecast, SMBs are spending more on software
and IT services and this will continue to rise to $700 billion in 2019. The main reason for increasing investments in IT is that they are looking at alternate technology that will help them gain a competitive advantage. Many SMBs find it difficult to invest in hardware, run business applications, secure critical data, and more importantly, they do not have the capability of managing all this in-house. Managed Hosting eliminates these tasks and frees up their time to drive revenues. SMBs are looking to simplify IT and need robust systems that will help them grow their business. Managed Hosting providers can help them with state-of-the-art options that have a positive impact on cost, help them in
JUNE - JULY 2016 ┃ Intelligent SME
SME TECH
scaling their IT needs and downsizing operations, and also provide them the flexibility to choose services to suit their needs. The cost for an inhouse data centre and maintaining it implies server maintenance, software applications and updates, remaining up-to-date with technology, security, etc., and the cost for hiring and training in-house staff. Some of the reasons SMBs must consider Managed Hosting services include: EXPERTISE Managed Hosting services provide qualified and experienced staff and technicians who support maintenance, trouble shooting, risk management, etc. REDUCED DOWNTIME A service provider’s data centre infrastructure is built for high availability, complying with the stringent requirements of business applications. This ensures that the SMB experiences near-zero downtime. DISASTER RECOVERY AND BACKUP All servers and hardware within the premises of the provider are protected against physical threats such as environmental damage or natural
calamities. Managed Hosting providers perform automated regular backups of all data which is a fundamental deliverable and one of the most critical responsibilities of the provider. MONITORING To ensure reduced downtime, providers monitor the servers and the cloud, as well as resource availability and capacity usage.
According to IDC’s Worldwide Small and Medium-Sized Business Forecast, SMBs are spending more on software and IT services and this will continue to rise to $700 billion in 2019. The main reason for increasing investments in IT is that they are looking at alternate technology that will help them gain a competitive advantage.
REDUCED COSTS With Managed Hosting, investment is minimized and the SMB gets access to the latest technologies without upfront capital investments and without having to worry about replacing obsolete hardware or compromising on efficiency by using outdated hardware. SECURITY The service provider tackles security risks with adequate firewalls, protecting against hackers and spammers. Conducting vulnerability scans and updating the required software ensures that the data is always safe. HARDWARE AND SOFTWARE UPDATES The IT environment is continuously innovating and updating. Managed Hosting providers guarantee they provide up-to-date technology facilities, software upgrades and security patches. 24X7 AVAILABILITY Service providers guarantee 24x7 technical assistance and they are available for any unexpected problems or for routine queries. SERVICE LEVEL AGREEMENTS (SLAs) They are clearly defined services to be delivered with accountability and responsibilities. Clear pricing and measurable services are provided by the Managed Hosting provider. SMBs are now more dependent on technology than ever before and they have much to gain by availing of Managed Hosting services which provides flexibility, increases productivity and strengthens security with overall cost reduction. Their services cut across industry verticals including retail, healthcare, e-commerce, finance, legal, education and government.
Sachin Bhardwaj, Director, Marketing & Business Development, eHosting DataFort.
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JUNE - JULY 2016 ┃ Intelligent SME
SME WORLD 2016
WE for Women Entrepreneurs! This year WE at SME World 2016 inspired us to Initiate and Innovate! Sandi Saksena moderated the Women Entrepreneurs session at the conference and presented five success stories.
T
he much-awaited session on women entrepreneurs at SME World 2016 was bigger and better than expected. Carefully selected by facilitator Sandi Saksena, the Women Entrepreneur speakers were Dutch, British, PalestinianAmerican, Indian and Emirati. They gave a variety of business and personal perspectives of their entrepreneurship journey. Keeping a strict time frame, each speaker delivered an insightful presentation, which kept the audience engaged. An energizing introduction Sandi got the session into top gear. Talking about the opportunities in Dubai’s SME space, she made a special mention of the three-finger salute, which was introduced by His Highness Sheikh Mohammed bin Rashid Al Maktoum in February 2013 during the Government
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Summit in Dubai. She emphasized that WIN VICTORY LOVE, the innovative trademark for work ethic, success and love is what makes the SME sector here so vibrant. “It’s as simple as ABC - Attitude Belief, Courage. Bring it on is what WE say! WE heard from women who dream big, face challenges, have failed and got right back into the game.” says Sandi. ANOUK PAPPERS "Your (online) reputation is the most important asset you have." Brand Anthropologist and co founder of Cool Brands invoked the Harley Davidson biker kick to start the session. Through her book, “Around the World in 80 Days,” she has combined her love of travel and meeting different people into a business. She said: “In the Internet age, storytelling is both a powerful and necessary way of communicating - illustrative, easily memorable, and allows any firm to create stronger emotional bonds with the customer.” Cool Brands specializes in that Wow factor to catch your audience’s attention. Tell the story in a way that people can easily remember. Don’t tell a story about “our company” or “the brand,” make it personal. The story has to be about you, in relation to the company, authentic and relevant. You are what Google says you are! When people want to know who you are they will Google you, before (and after) meeting you. What they will find on the first page is your online public image, your online reputation – whether accurate or not.
BARAN ABDULLAH “Success is not final; failure is not fatal; it is the courage to continue that counts.” Baran shared her journey from a naïve young college grad with a dream to a successful Woman Entrepreneur - the hurdles, resistance, lack of support and choosing a business in an environment not friendly to women entrepreneurs. And yes, inadequate funding, trusting too much, taking
JUNE - JULY 2016 ┃ Intelligent SME
SME WORLD 2016
people on their word, she has experienced being cheated and left to face the bills, the dismissive attitudes of friends. The scorn, “Oh, she went to get a university degree and is now selling flowers,” hurt and saddened her. BARAN’S MESSAGE: As an entrepreneur, be prepared for the scrutiny, cynicism the ridicule, friends and associates making fun behind your back. They don't see your vision, they don’t see the bigger picture. Be prepared to be the owner, assistant, tea-boy, delivery man / woman odd job person . There is dignity in labor. Never let it get to you. Know the last laugh belongs to YOU when YOU succeed.
to feel at ease with each other. She had started building communities and impacting the lives of complete strangers without even realising it. That was the beginning of her dream... “to connect people to each others.... how fab!” She recalled feeling needed, visible and loved each time she did this......it felt like magic! She invited 12 women to join her on stage and share how passion in connectivity has worked for them. Cordelia’s Message: Explore how your childhood helps to fuel your business purpose. Learn how passion motivates you when everyone else tells you to quit. Understand that business without passion is a mere exercise in numbers. Foster deep relationships with like-minded people who are excited to forge their own futures. Build authentic communities, which are not governed by rules and tradition but instead by passion and joy. By connecting people to each other you gain instant visibility and empower each individual to be all that they can be. DINA TAJI “Transform Your Life, Transform Yourself”
CORDELIA HENRY “Real entrepreneurs are passionate; they turn their passion into their business”. Raising the energy of session to higher level Cordelia Henry took the audience back in time on a bus journey with her mum when she had a life changing moment at age three. What she realized from an early age was that she was destined to build relationships with different people as she enjoyed being visible, as recognition was what she had longed for from her parents. Her visibility in turn created an atmosphere where people started speaking to each other. She was astonished that just by being the little girl on the red bus at the centre of the conversations she helped people
Dina’s journey Super fit and healthy, strong and successful, Dina was an obese teenage who did not perceive herself as obese! She fitted into clothes because she just continued to buy bigger sizes, till one day she really saw myself in her XXX large swimsuit and stood back in shock and horror at this unhealthy, unsightly, image that was HER. She had a big task to transform the massive Dina into a healthy trim person. “I used to compare myself to others thinking I wasn’t capable enough, strong enough or smart enough etc. Look at me,” she urged the audience, “did I just transform into this fit healthy energetic person overnight? You need a plan and I can give you a plan right now that you must follow four days a week and do each one of these routines and you body will transform completely and you will reach your fitness goals. Won’t you get inspired when you see the gradual transformation and tackle that workout with full force?”
Using this analogy she went on to state that same thing goes with any one of your goals in life. Dina wanted to start a company, a project to make millions but it was just dream vague because she had no focus what she truly wanted, what she was good at what she enjoyed doing. She dismissed the idea of fitness, health, nutrition, make overs as something she just did for friends!!! Now of course it's a different story and she is going from strength to strength so here are her takeaways Dina's mantras for success: • Every professional was once a beginner. • Every skill is learnable. Just because we’re not good at something doesn’t mean we can’t learn how. • Destroy thought repellents because that critical it stops us from following our passion and dreams. • Stop setting limitations on ourselves and not believing in ourselves • Transform the way you think of yourselves because that • Transform your actions and have a positive influence your decisions • Build your confidence by getting out of your comfort zone. • Be Receptive to new ideas; don’t reject things without trying them because that’s how we learn what we like
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JUNE - JULY 2016 ┃ Intelligent SME
SME WORLD 2016 • •
•
Motivation can only get you so far! So Inspire yourself to Innovate and Initiate Invest your time every day and create habits that become a routine. This will make a make a huge impact on how fast you get to achieve your goals. Transformation to a healthier, happier, more successful you, no matter what the present circumstances is always YOUR CHOICE.
KIMBERLY MIRANDA There are three key steps to transformation: Positivity, Passion, and Perseverance, says 16 year-old Kimberly Miranda is a student at Dubai College. Aspiration: to be a fashion designer. “So what's the big deal?” The story behind Body Image: Born with a medical condition called Cerebral Palsy, which predominantly affects the function of her limbs, Kimberly has undergone five major surgeries. Along with all the pain she endured, there came the scars and the insensitive reactions of people.
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“It’s as simple as ABC - Attitude Belief, Courage. Bring it on is what WE say! WE heard from women who dream big, face challenges, have failed and got right back into the game,” says Sandi. Kimberly confidently walked on to the stage with the help of quad canes and took her place center stage to share her personal journey regarding dbody image. Kimberly has always provoked mixed reactions, most which were negative and insulting. People, some adults but mostly young children, just stare at her. Some just out of curiosity, and others in a more insulting way, they laugh at the way she walks, and kind of call it ‘retarded.’ On occasion she has been so incensed that she has gone up to the perpetrator and said “Excuse me. Please don’t laugh because I don’t think you can walk like me, can you?” What she usually does is politely tell people to stop staring, or tell them not to laugh because it’s not funny. There are two ways, to react to a situation like this. Either ignore them, then go home feeling depressed and negative about yourself, or stand up for yourself. She chose
to stand up for herself and she felt empowered! Her scars are not a good sight and she felt they ruined her body. She never wore shorts or skirts out in public. But friends told her that they actually admired her scars because it showed her bravery. This boosted her self-confidence! This young lady is an inspiration to all. She says, “I am in control of my life and the way people react towards my so called imperfections. And you know what, so you can you! When you display confidence about yourself, you not only raise your self-esteem, you also change the way people view you and your body.” Most importantly, she spreads a positive message to people who are perhaps too shy or embarrassed to stand up for themselves. “Just do it! It might be hard at first, but once you do it the confidence will come. It’s your life and it is important that you live to make yourself happy, not others!” “Cerebral Palsy (and many other disabilities) limits the choice in the clothes that we can wear. Nobody designs clothes for us and we just have to fit in to whatever is out there. Sure, we don't form the majority and we may not be a profitable segment, so what?” She was INSPIRED TO INNOVATE AND INITATE and this was precisely why she wanted to become a fashion designer. Her aim is to create comfortable and contemporary clothing, easier to wear and that looks great. She offers simple designs, bold colours that accentuate the natural beauty, suitable to wear anywhere, and affordable. More than anything, she want to empower teens with disabilities and make their fashion bold! “It's a great business for me. I have a ‘captive,’ loyal market that will be coming to me!” Her mission is to “transform the attitudes of those around me, not only for me but for the thousands of other people with a body shape or disability and design for people who don't fit the norm of the acceptable or stereotyped.” To a standing ovation from the audience, she thanked her amazing, loving, supportive parents, family and friends who encouraged her and helped her be the confident person she is today.
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RARE & FABULOUS
LAMBORGHINI'S HURACÁN - THE MOST FUN RAGING BULL YET
Image Courtesy: Image: Lamborghini And Image: Nick Jaynes/Mashable
Lamborghinis are for making statements. They can say anything from "I'm richer than you" to "I'm Batman" — and everything in between. Specifically, the Huracán Spyder tells onlookers you care for suntans as much as speed. The $1.9 million Centenario says that you wish you were a bumble bee. However, the new entry-level Huracán LP 580-2 says to the world that you're a driving enthusiast. Or at least it should. That's because between the new flatter nose and rear-end, this Huracán is a simpler, lighter Lamborghini. LESS POWER, MORE FUN Mounted in the mid-rear of the Huracán 580-2 is a 5.2-liter V10 that produces — you guessed it — 580 horsepower. Although this is less than the other Huracán variants, the 580-2 routes its power solely to the rear wheels through a 7-speed dual-clutch transmission that can be shifted in either automatic or manual modes. Since it's propelled only by its rear wheels instead of all four, it weighs 66 pounds less than its more potent brother, the 610-4. You feel so connected to the thing, through its quick steering, grabby brakes and lightning-fast throttle response. Unlike the slew of new turbocharged supercars, the naturally
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aspirated (meaning it has neither a turbo nor a supercharger) 580-2 enjoys an immediacy in its power delivery that is simply missing from smaller turbo-charged engines. And that's what I love about the 580-2. Lamborghini has taken things away to make it cheaper. But by removing some stuff, like a bit of power and half of the high-tech drivetrain components, it's made the car better. The Huracán is no longer a calculating Italian power machine. It's now the mad Lamborghini we always hoped it'd be. The Good Switchblade-like looks • A raucous V10 engine • Fiendish cornering capabilities The Bad Interior trim is a bit chintzy • Impossible to Bruce Wayne two supermodels into the cabin The Bottom Line Lamborghini's Huracán LP 580-2 might be its entry-level car, but it's also the Italian supercar-maker's finest driving machine.
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RARE & FABULOUS
RAYMOND WEIL HONOURS THE BEATLES Luxury Swiss watchmaker Raymond Weil has come together with the to mark the company’s 40th anniversary. The result: The Maestro Beatles Limited Edition timepieces to salute music’s most celebrated group. The watch features a mechanical self-winding movement in a 39.5mm polished steel case, with 13 Beatles’ album titles engraved all around the dial. Each Maestro Beatles timepiece comes with a dedicated watch case. Now available. Call: 04-2066970.
Image Courtesy: http://gulfnews.com
'BOSS BOTTLED OUD' BOSS BOTTLED OUD is created from rare and rich ingredients that create a complex, heady essence. Powerfully opulent, 100% natural, OUD is enriched with a Middle Eastern inspired blend of luxurious saffron, cinnamon and virile woody notes. A powerful fragrance combining strong masculinity with opulence, OUD is the perfect balm for the Man of Today.
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JUNE - JULY 2016 ┃ Intelligent SME
RARE & FABULOUS
NEW BENTLEY CONTINENTAL GT SPEED
Image Courtesy: http://www.bentleymotors.com
From the moment your hands grasp the new Continental GT Speed’s sport steering wheel, you’re aware you’re taking control of Bentley’s ultimate two-door coupé. The twin-turbo engine produces an awe-inspiring 64s PS and 840 Nm of torque yet, thanks to the variable power assisted steering – which provides increased economy and reduced emissions – the drive remains precise through the most demanding corner. The only equal of such limitless power is the exquisite refinement to be found in the Speed’s redesigned cabin, this introduces a more dynamic look to the upholstery, with a smaller, tighter diamond pattern in the hide. If you love to drive far and fast but insist on travelling in absolute luxury, the Continental GT Speed awaits.
LOUIS VUITTON'S ROBOT MUSE Could this be the future of fashion? Louis Vuitton’s SS16 womenswear collectionis inspired by Japanese manga and the French fashion house revealed last month that the star of their new campaign is not a super model or Hollywood starlet, but a computer-generated character from cult Japanese video game, Final Fantasy. Now normally, we here at Esquire are more interested in the men’s side of the fashion spectrum, but the use of Final Fantasy as part of a high-fashion marketing campaign is certainly enough to peak our interest. Louis Vuitton’s creative director Nicolas Ghesquière revealed candy-haired Lightning, Final Fantasy’s main protagonists created by video game artist Tetsuya Nomura, is the star of their new ad campaign with Lightening dressed in looks from his latest runway collection. Image Courtesy: http://www.esquireme.com
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JUNE - JULY 2016 ┃ Intelligent SME
RARE & FABULOUS
DE GRISOGONO OPENS FIRST DUBAI STORE Luxury Swiss jewelry brand de grisogono has launched its first Dubai store in the Dubai mall. The 175 meter boutique comprises of three rooms, each having a different purpose. The corte room showcases a jewelry collection personally chosen by gruosi, the stanza del tempo room houses de grisogono’s timepiece collections, and the grande sala is a private guest room. The boutique itself is decked out in glass chandeliers and mid-century Italian furniture chosen personally by grisogono founder Fawaz Gruosi from the opera gallery in Dubai. De grisogono’s founder is a black diamond specialist known for his intricate and colourful stone creations. He was among the first jewellers to use black diamonds. The jeweller has dressed countless celebrities including supermodel Irina Shayk and actress Eva Longoria. The brand’s Dubai store marks its second branch in the UAE, the first being in Abu Dhabi’s Etihad towers.
Image Courtesy: http://www.arabianbusiness.com
DUBAI'S TALLEST TOWER and a ‘MEGARETAIL DISTRICT’ FOR EXPO 2020 The architect behind a new US$1 billion Dubai tower that will stand higher than Burj Khalifa says it will represent a nation like The Eiffel Tower. The Paris landmark was built for the 1889 Paris Expo. Now Dubai’s Emaar Properties is aiming to emulate that architectural impact as preparations get under way for Dubai’s own Expo 2020. Emaar Properties will attempt to deliver the new Dubai Creek tower and a linked “megaretail district” at the same time so that they are both open by the time Dubai’s Expo 2020 event begins . Although the overall height of the tower, which will cost about $1bn to construct, was not revealed, Mr Alabbar said it would probably “be a notch taller” than Burj Khalifa – currently the world’s tallest tower but due to be surpassed by the proposed 1km-high Kingdom Tower in Jeddah in 2018.
Image Courtesy: http://www.thenational.ae
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