Robust RAK Issue 1

Issue: 1 May - June - 2013

Complimentary Copy

The voice of RAK business community

16 For RAK, SMEs are the lifeblood !

Interview : RAK FTZ’s role in bringing together businesses, tailor-made packages to boost SMEs

His Highness Shaikh Ahmad Saqer Mohamed Al Qasemi, Chairman of RAK FTZ RAK Ceramics

An interior designer’s dream - page 26

The sleeping business

Changing entrepreneurs perception of Ras Al Khaimah - page 8

Corporate Partners

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Contents 16

May - June, 2013

Cover story

For RAK, SMEs are the lifeblood !

Interview : His Highness Shaikh Ahmad Saqer Mohamed Al Qasemi, Chairman of RAK FTZ, discusses the importance of bringing together businesses, tailor-made packages on offer to boost SMEs

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In Ras Al Khaimah, exploring history & adventure...

Ras al Khaimah is an ideal manufacturing, production site but this emirate is also a stupendous destination for tourists. TRR is going on a journey to discover what makes this emirate a special tourist destination.

08 The sleeping business Hassan Al Hazeem, MD, Intercoil International LLC, speaks to Nikhil Pereira on setting up his manufacturing unit in the emirate and why it is great to do business here.

12 Announcements What has been happening in the business world? Here are some updates that you might have missed.

24 Shaping the future of affordable health care

As the largest local pharmaceutical company in the UAE, Julphar is an example of a homegrown business making a true impact on the global stage.

26 RAK Ceramics: An

interior designer’s dream

RAK Ceramics has achieved a phenomenal growth in a short span. Several companies have modelled their corporate profile, and, also, continue to idolise the company. Robust RAK takes a look at what makes the company a first choice for consumers world-wide. Here’s an excerpt of a conversation with Abdallah Massaad, CEO, RAK Ceramics.

30 Making banking easy Having trouble with banking jargon? Harshit.

H Jain simplifies the entire banking process in this column.

32 To the long life of your

business

If you do not have a proper business succession or estate planning in place, you are inviting uncertainties in the future, writes Nita Maru.

34 A framework to

measure performance

The key to continual growth of any company lies in strategic planning and enterprise performance, V. Ramkumar gives his insights.

42 Ensuring a successful

business

Simon Hodges discusses business insights to achieve sustainable growth.

46 The science of happiness Prof. Christopher Abraham explores how happiness relates to professional and personal success.

58 Corporate Lifestyle A CEO's and Executive's vice, keep a track of the new toys in the market.

Earth Holding

P.O. Box: 10044, Ras Al Khaimah, UAE Tel: 07 - 2282555 Fax: 07 - 2264447 www.earthholding.com

Editor’s Note

I

n the simplest of meanings, Ras Al Khaimah is synonymous with the words: specialisation and variety. Borrowing a phrase from one of the market watchers, this reads: an economy without diversification in its portfolio is left to struggle with luck as its survival strategy, and, nobody would deny that luck is the enemy of financial prudence.

In collaboration with SPI Group

www.theintelligentsme.com www.appsglobal.ae www.dubai-gbs.com www.spi-holding.com Follow us on twitter: @intelligentsme Facebook: facebook.com/theintelligentsme

Publisher & CEO Shantanu A.P. Editor Samar Khan Account Director Vijay G. Asst. Editor Nikhil Pereira Asst. Editor-Digital Jochebed Menon Consulting Editor Utpal Bhattacharya

Expert Contributors Anesh Jagtiani Dr. Sameer Kumar Farrukh Naeem Harshit H. Jain Michael J. Tolan Nita Maru Prof. Christopher Abraham Sandi Saksena Simon Hodges V Ramkumar Vinayak Doddihal Zed Ayesh

Art Director Aneesh Varghese Response and communications

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Adil Hisham, Jerry P. Sam Editorial Enquiries & Contributions

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A strong believer of this school of thought seems to be the emirate of Ras Al Khaimah. With its small population and finite resources, the emirate has quickly learned to focus on niche markets, while taking an advantage of its proximity to larger economies such as Abu Dhabi and Dubai.

Lending support to this belief, the government has taken an initiative to reduce dependency on hydrocarbons by promoting growth in non-oil sectors, such as manufacturing, tourism and banking, with varying degrees of success. Within a short span of time, it has managed to earn a title of low-cost, low bureaucracy environment for more specialised, smaller-scale projects, and, thus, super-charging its growth prospects.

So, do they have any blue-chips in the region? Yes, the region boast's world-class companies like RAK Ceramics, Zamil Steel, Unifico, TriStar Resources, Union International Holding grp, Ghani Glass and Julphar group, to name a few. In addition to the manufacturing, industrial units, the emirate is also exploring growth in other arenas-tourism, retail and construction.

Possessing a 65 km of coastline, mountains up to 1500 metres, hot springs, and a number of forts and other historic sites, it was a logical step by the authorities to develop the region as a tourist destination. Also, its location (just an hour’s drive from Dubai International Airport and next to Oman’s Musandam Peninsula) allows the emirate to position itself as a convenient option, but with a ‘rich-in-culture’ appeal attached to it.

The government-supported reforms, development and the success story of the RAK are drawing a lot attention from the business community- locally and the on global front. Hence, we have taken up the challenge of passing a magnifying glass, and bring to the world a better coverage of the area, which is steering towards incredible success.

To begin our innings, we have put together the growth vision of the RAK FTZ’s Chairman, Shaikh Ahmad Saqer Mohammed Al Qasemi. Followed by Intercoil International’s decision to set-up operations in this part of the world and a detailed story on what makes Julphar the largest drug manufacturer in UAE. In addition, a panel of experts have shared their views on leadership, management and business laws of the region. Also, we would like to hear from companies, organisations (based/planning to shift operations at Ras Al Khaimah) to send their stories across for the world to know, and make Robust RAK an interesting read!

% +971 4 2659704, 2650312 response@ spiholding.net

Shantanu A.P.

Publisher & CEO SPI Publishing

P.O. Box: 89735, Dubai, UAE Tel: 04-2659704, 04-2650312 Fax: 04-2690566, 04-2651708 response@spiholding.net

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.

Robust RAK May - June 2013

Industry update

The sleeping business Hassan Al Hazeem, MD, Intercoil International LLC, speaks to Nikhil Pereira on setting up his manufacturing unit in the emirate and why it is great to do business here.

I

ntercoil as a brand does not need an introduction; chances are you might be enjoying a good night’s sleep on an Intercoil mattress. The family owned business is one of the largest bedding players in the Middle East and North African regions.

“Intercoil was founded in 1974 and until June last year operated only from Dubai. We decided to expand our manufacturing operations to Ras Al Khaimah and operation of phase 1 started in June 2012 and have already managed to surpass production of foam output five to six times more compared to our Dubai plant,” says Hassan Al Hazeem, managing director of Intercoil International LLC. “This will be further increased once we go in for the next phase of

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Ras Al Khaimah is a real success story in terms of manufacturing; I have friends who’ve moved operations from Dubai and Sharjah to this emirate.

We’ve had a good experience here.

development” he adds. The group has invested over AED 25 million in the first phase of the project; a state-of-the-art Polyurethane foam manufacturing plant; spread across 100,000 square feet.

Intercoil’s core business is the production and distribution of sleep products under three brand names (Intercoil, Therapedic, Simmons). Intercoil has three manufacturing divisions – polyurethane foam, furniture and sleep products.

RAK’s industrial image

Ras Al Khaimah is soon transforming itself as an industrial hub. Also, big names have set up their production and manufacturing units in this emirate. So, what has made the

May - June 2013

Robust RAK

Industry update

emirate suddenly so popular? “We could not find land at a reasonable cost in Dubai during 2008, which included scouting for a place in Dubai Industrial park and Dubai Industrial city. Furthermore, the Ras Al Khaimah government has been quite supportive of manufacturing and we leased out a land in 2008 prior to the recession. And so far, it has been a wise decision in terms land cost and location,” said Hassan, jogging down the memory lane.

Commending the authorities, Hassan explained: “The government has been proactive in setting up power. For example, we were promised electric power would be available during the time the land was leased. We had power readily available even before we started operation in June 2012.

Labour costs are relatively low in Ras Al Khaimah. However, these benefits are not the only qualities that make Ras Al Khaimah an attractive location to set up a factory. It is in fact the humane outlook authorities have towards the companies, particularly after

the economic slowdown of 2008.”

“I remember one day Mr. Hassan had asked me to speak to the authorities. The impediment was that we had leased the land since 2008, but had to freeze our expansion plans owing to the economic slowdown. So, we were paying rent and doing nothing.

Given the circumstances the authorities waived off one year’s rent,” recalled Intercoil’s director of finance, Mohammed Abdul Ghani.

There are no glaring areas for improvement and Hassan is reasonably satisfied with the hospitality he has received. “The government is very supportive to manufacturers and any obstacles we have are willingly addressed.

There are no pitfalls as such but one area where they can work on is in improving the road connectivity to other emirates to help transportation,” Hassan pointed out.

Product range

The RAK facility has enabled Intercoil to diversify its foam

production. “The RAK plant has equipped us to diversify and manufacture different kinds of foam. We produce visco foam and high resilient foam among other varieties. Also, special kind of foam called sea -sponge foam is being exclusively produced for 3M. We are very proud of our partnership with a multi-national company that spends 1.8 billion dollars annually on R&D and have very strict guidelines on quality. Earlier, they were importing foam from Europe, but their shift in trust with a local manufacturing company makes us very proud,” said Hassan, with a look of accomplishment.

Along with moving the entire foam manufacturing unit to RAK from Dubai, Intercoil has upgraded almost all of its machinery.

“We have bought state-of-theart machinery from Spain and Germany. I have visited many foam manufacturing companies around the world as part of my research. I have invested AED25 million in our RAK plant. In time I will get all the automated integrated systems in this plant,” says Hassan.

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Robust RAK May - June 2013

Industry update

Future plans

The future looks very bright for Intercoil International. “This is just phase one of our RAK plant.

We have thrice as much land than our Dubai facility, but we are only utilising a third of it so far. As of today, we refer to our Dubai unit as our main factory and our RAK factory as the secondary one. This will be our main facility eventually, and our Dubai factory will be our secondary one,” acknowledged Hassan. “We already have a fully functional mattress production unit in RAK along with foam.

Going ahead, we plan to set-up a dedicated furniture unit in RAK,”

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he added. Currently, the furniture production unit is in Dubai along with the mattress production unit.

The name of our company in RAK “International Industries L.L.C”, which reflects our future plans to venture into the manufacturing of new products lines. Hassan is looking to constantly upgrade Intercoil’s machinery in a bid to automate procedures. “We plan to automate all our manufacturing processes, and the objective isn’t to reduce manpower but to increase efficiency, improve and sustain quality,” said Hassan. Intercoil will invest more in innovation and

R&D to eliminate human errors henceforth.

In the future, Intercoil is focusing on forward integration.

“We are not planning to add new products, per say, but improving on our retail outlets. We have around 25 showrooms in the UAE and overseas and we will increase that number,” elaborated Hassan. In terms of backward integration, the company will look at the feasibility in producing components such as cotton-felt.

“But we will only do that if it adds value and is financially feasible for us, or else we will drop that idea.”

However, Hassan’s venture would bear no fruit, if his clientele does not enjoy a good night’s sleep. “I hope they do,” Hassan chuckles before adding, “No, I mean manufacturing is a beautiful business that many in the region are not focused on.” It’s this very sentence that sums up the love and joy Hassan personally experiences that resonate through this family owned business which not too long ago was ranked number 4 on the Dubai SME100 list. Let’s hope Hassan and Intercoil International grow from being one of the biggest local manufacturers to world leaders, much like the pedestal RAK Ceramics finds itself on, in the global market.

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Robust RAK May - June 2013

Announcements

RAK Ceramics sets up ‘RAK-on-SAP’ to improve transparency, efficiency

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n the culmination of a year of hard work, RAK Ceramics has announced that its SAP system recently went live. The integrated software solutions incorporate key business functions of an organisation, a press release stated.

Christened “RAK-on SAP”, the move sees RAK Ceramics improve transparency, efficiency and productivity with solutions rolled out across all its 12 manufacturing plants, 15 warehouses, six showrooms and administration offices in UAE as part of its first phase plan.

More than 100 executives across departments engaged over eight months and led by top management and forming the core team that was guided by Mr. Dinesh Mohan, General ManagerSAP Projects RAK Ceramics and Mr. Manoj Aheeray, CFO of RAK Ceramics. Internationallyacclaimed external audit firm, KPMG, was on hand for quality assurance of the project. Currently, more than 350 employees have been trained for handling SAP ERP operations in the first phase, which will be followed by future training

to ensure that the entire team is well-acquainted with the system.

Abdallah Massaad the CEO of RAK Ceramics, commented: “Last year saw the start of our challenging and exciting journey that was characterised with vigour from all parties involved in implementation of the first phase of SAP ERP system, which is again an investment by RAK Ceramics for future that will surely pay huge dividends. Successfully going live is a vindication of all the hard work that has made this achievement for the company possible.”

UAE Gov awards Zamil Steel with 'environmental performance certificate'

Z

amil Steel Ras Al Khaimah was recently awarded the ‘Environmental Performance Certificate’ (EPC) by the UAE ministry of Environment and Water, in recognition of its outstanding efforts to comply with environmental protection standards and regulations to assure environmental sustainability during 2012.

The certificate was awarded during a special ceremony held recently in Dubai. The company was required to meet a series of stringent environmental standards and conditions in order to achieve the certification.

The EPC, which seeks to encourage businesses to support efforts to protect the environment and reduce pollution, is awarded based on the review of the environmental permit obtained; health, safety and environment; the implementation of cleaner production, monitoring and control of gaseous emissions and particulate matters; management of chemical substances, and integrated management of solid, non-hazardous and hazardous wastes; treatment and reuse of domestic and industrial wastewaters; and noise, odour hazard, and nuisance control.

RAK Airways announces impressive results for 2012

R

AK Airways saw an impressive 2012 with higher passenger numbers for the airline.

“Looking back on 2012, it has been a year of significant development for RAK Airways. In June, we introduced RAK Premier – a business class cabin at an affordable fare. In October, we launched our Abu Dhabi route and immediately made history by being the first UAE National Carrier to operate a domestic flight and this was immediately followed by our ground breaking codeshare with fellow UAE carrier Etihad Airways. Altogether in 2012, we have carried in excess of 300,000 passengers across our network, a

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47% increase from 2011,” said John Brayford, CEO RAK Airways.

Identifying the factors contributing to the success of the airline, Brayford added, “There are a number of factors such as quality product and an affordable fare, but the most important feature of our brand is that we offer a high standard of personal service to all of our customers. Our business class, RAK Premier has received a very warm response from our customers where we offer personal service tied to a quality premium product at a very competitive price.”

May - June 2013

Robust RAK

Announcements

Why are Gulf countries scouting for sustainable, inclusive development model?

T

he Government Summit, a regional initiative in Dubai, called for a ‘sustainable and inclusive’ development model for the Gulf countries, with international speakers commending the UAE for its success in fostering human resources development as a key priority.

Gordon Brown, former prime minister of the UK, said that evaluating the performance of the region’s educational system against other competitive economies, and acting upon the needs of the younger generation will determine long-term economic success. He added that the key priorities in

development must be centered on not only investing in education but also measuring its output and performance, as well as a focus on innovation and technological expertise, and ensuring that the opportunities are widely spread.

Reem Al Hashemi, UAE Minister of State, said the UAE’s Vision 2021 serves as a roadmap in defining the priorities of the government to promote development with a focus on overall societal welfare. “At the heart of all our development endeavours are our people. We regularly review our performance to ensure that we consistently make progress.”

Ms. Jennifer Blanke, lead

economist and senior director and head of the Global Competitiveness Network, World Economic Forum, underlined the fundamental concepts of economic competitiveness that includes not only fundamental aspects such as healthcare, education and technology readiness but also a focus on innovation and business sophistication.

The agenda of the Summit covers all aspects of government services, and includes a detailed discussion on the UAE’s model in developing government services covering Abu Dhabi and Dubai’s experiences in government service provision.

RAK Properties posts net profit of AED 40.1 million in first quarter of 2013

RAK

Mohamed Sultan Al Qadi, MD & CEO of RAK Properties

Properties, Ras Al Khaimah’s biggest property developer listed on Abu Dhabi Stock Exchange, has earned a net profit of AED 40.1 million in the first quarter of 2013. The net profit amounts to 27.29 % of the total 2012 profit

Mohamed Sultan Al Qadi, MD & CEO of RAK Properties, said: “We expect further growth in our operations for the rest of the year, driven by the overall positive sentiment in the real estate sector in the Emirate of Ras Al Khaimah and the UAE in general.”

“The coming period is very promising as units in Mina Al Arab, Julphar Towers and RAK Tower in Abu Dhabi have shown accelerated demand as well as there is an increase in the number of retail outlets booking spaces in our projects,” he added.

RAK Properties has added a new line to the overall revenue model by developing retail complexes. As a result, leading retail names like ‘Choithram’, ‘Fitness First’ and ‘Costa Coffee’ have launched operations. The company is expecting more retail launches in the coming period.

RAK Properties is supporting Ras Al Khaimah Government plans to contribute to the development of the real estate and tourism sector in the emirate.

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Robust RAK May - June 2013

Announcements

High-level mission from Ukraine visits RAK FTZ; inks MoU for future collaboration

(From L-R) Yurii Malich, Head of Economic Section of the Embassy of Ukraine in the UAE; Valentyn Zagariya, President of UBA; Sheikh Mohammed Bin Humaid Al Qasimi, Managing Director of RAK FTZ; Roudayna Esber, Head of Legal of RAK FTZ

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as Al Khaimah, April 30, 2013: In a step aimed at boosting the trade relations between Ukraine and Ras Al Khaimah, a high-level legal delegation from Ukrainian Bar Association (UBA), a nongovernmental organisation from Ukraine, visited Ras Al Khaimah Free Trade Zone Authority (RAK FTZ) – one of the fastest-growing and most cost-effective free trade zones in the UAE. The 40-member delegation, which comprised of partners and managing partners from some of the largest Ukrainian law firms, discussed a wide array of areas of mutual cooperation aimed at establishing and strengthening a business relationship between Ras Al Khaimah and Ukraine, as well as to open up a new market for the UAE investments, among others.

The visit is supported by the Embassy of Ukraine in the UAE. The two-day visit included a roundtable that focused on various mutual collaboration possibilities and future cooperation between the two countries. At the roundtable, held at Hilton Ras Al Khaimah yesterday, the visiting delegation was welcomed by RAK FTZ Managing Director Sheikh Mohammed Bin Humaid Al Qasimi, followed by discussions with the representatives from RAK FTZ, Emirates NBD, RAK Immigration, and RAK Chamber of Commerce.

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The roundtable also shed light on the legal perspectives within Ukraine for setting up businesses for the UAE companies and the taxation laws prevalent in the country. The roundtable was also attended by Yurii Malich, Head of Economic Section of the Embassy of Ukraine in the UAE; Valentyn Zagariya, President of UBA; Muhammad Shiha, Executive Director of Russian Business Council in the UAE; and heads of various divisions and business units at RAK FTZ. Today the visit witnessed the signing of the Memorandum of Understanding (MoU) between UBA and RAK FTZ, signed by Sheikh Mohammed Bin Humaid Al Qasimi, Managing Director of RAK FTZ, and Valentyn Zagariya, President of UBA. This is the first MoU signed

by UBA with any entity in the UAE. In his comments, Sheikh Mohammed said: “Ukraine is a very important and strategic market for us and the visit of the high-level delegation from Ukrainian Bar Association to RAK FTZ is a strategic step forward in our business collaboration. We discussed a wide range of sectors for closer business relations and see a lot of fruitful cooperation stemming out of this visit.”

He added: “This mission was a great opportunity to strengthen our positioning as a business hub geared at helping businesses from

Ukraine to set up base in RAK FTZ, and grow their presence in the Middle East, given our strategic location. There was a valuable exchange of information and practical experience during the roundtable and how Ukrainian businesses can benefit from setting up businesses in the UAE, and particularly in Ras Al Khaimah.”

Talking about the cooperation, Zagariya said: “We are excited to be here to announce our cooperation with Ras Al Khaimah Free Trade Zone. Since our establishment, it was our endeavour at Ukrainian Bar Association to go global, open up new avenues for cooperation, launch joint projects, and provide business and networking opportunities for our members.”

He added: “This MoU with RAK FTZ has offered us a vision into our future growth, and we are confident that the new business opportunities offered by RAK FTZ will be welcomed by the leading companies and establishments in Ukraine. This includes the legal and management consultancy on business structuring and international expansion for companies on either side.”

The UBA, which was founded in 2002 to bring together lawyers for a strong and influential professional community, is a powerful voice of the legal profession in Ukraine. UBA is committed to the development of the legal profession, improvement of the legislation, implementation of ethical standards in provision of legal services, and protection of the professional rights of the UBA members and human rights in general.

UBA unites over 3,000 lawyers from all regions of the country, including attorneys, notaries, scholars, judges, civil servants, members of the parliament, and well-known scientists in the field of law. Student division of UBA consists of more than 1,500 future lawyers from more than 50 educational institutions of Ukraine.

May - June 2013

Robust RAK

Announcements

Prince of sea T

he luxurious twin-mast sailing yacht-Prince of Sea offers its guests various excursions including daytime, sunset and dinner cruises, where they can enjoy watersports activities such as swimming and snorkeling, seafood lunch or dinner and entertainment program (Belly Dancing performance). Measuring 100 feet in length, the motorised yacht offers visitors a variety of sailing trips around the coast of Ras Al Khaimah.

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For RAK, SMEs are the lifeblood !

Interview : His Highness Shaikh Ahmad Saqer Mohamed Al Qasemi, Chairman of RAK FTZ, discusses the importance of bringing together businesses, tailor-made packages on offer to boost SMEs

Robust RAK May - June 2013

Cover Story

Q: What are your initial reactions

after taking over as Chairman of Ras Al Khaimah Free Trade Zone (RAK FTZ)? How does it feel?

A: It was a great honour to be

entrusted by His Highness Shaikh Saud Bin Saqr Al Qasimi with the responsibility of managing one of the region's fastest-growing free zones, RAK FTZ. The free zone has been pivotal in helping the economy of the emirate of Ras Al Khaimah grow, and I look forward to becoming instrumental in continuing its further growth and achieve its ultimate goal. I also look forward to working with the integral workforce of RAK FTZ, who have been key to its success since its inception, and especially with our clients and partners in business. We are all looking forward to another promising year for RAK FTZ.

Q: What is your vision for RAK FTZ? A: We envision RAK FTZ bringing the community together as one.

We have taken it upon ourselves to build the infrastructure and

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support system for investors to become successful, irrespective of whether it’s SMEs, corporations or large-scale industries. We support these companies in every aspect of their operation, which includes assistance in visa applications, setting up their physical offices and responding to their queries in their respective languages.

The invaluable support comes in various volumes and is designed to help each business stride towards success. RAK FTZ is a medium to bring businesses into the country; but, as we grow economically, we want this to be matched by our corporate social responsibility. As we work, our success should be matched with our awareness of health and wellness, socio-civic participation, environmental campaigns and substantial contribution to the development of education. Beyond the business model, we want our community to grow with us,and, thus complete the ‘work-home’ circle, in a balanced and meaningful way.

A: Over the years, RAK FTZ has

Q: Please share with us your goals

to set it apart from the other free zones?

that you wish to achieve with RAK FTZ.

climbed one rung after another; and it has been awarded frequently by various award-giving bodies, including the Best Emerging Free Zone for three consecutive years

by Middle East Logistics Awards (MELA), for its top-notch services.

We will continue to build upon these successes and enhance our transparent and investor-friendly policies. We make the process easy for the investors with minimum paperwork and offer services that clients need to successfully operate their businesses. Our clients’ success is our success. So, we make sure that they are well taken care of before and after signing up with us. Large-scale industries and corporations can easily consult with us for a tailored package as per their needs. Further, we plan to turn greener for supporting our environment. We also ensure we guide the big industries in green compliance.

Q: How does RAK FTZ position itself

May - June 2013

Robust RAK

Cover Story

We have taken it upon ourselves to build the infrastructure and support system for investors to become successful, irrespective of whether it’s SMEs, corporations or large-scale industries.

A: RAK FTZ is the ‘home of

businesses. We provide everything that businesses may need, from easy and quick registration through our international liaison offices in the USA, Germany, France, Turkey, Egypt and India.

It is a feature that other free zones do not offer to administrative, financial, marketing and IT solutions. Within RAK FTZ, we have tailored packages for the

ever-growing SME sector, which is the growing lifeblood of the economy. Our location is one of our trump cards; not just as a business environment, but also as the best residential environment.

Ras Al Khaimah is less than an hour away from the international airports in the country. It has a thriving city that speaks of great tourism and shopping, which includes locally made products to the best international brands without the hustle and bustle of the bigger cities. The cost of living is also lower, which includes a picturesque coastal area where one can go sailing, fishing, view of the majestic Hajjar mountains and various historical sites. We are very lucky indeed and blessed with the best of both worlds, for both business and family life.

Q: How does RAK FTZ market itself?

Please give the statistics on the number of companies formed year-on-year.

A: In 2012, we had a total of 2,297 new company registrations. This is a growth spurt of 12.99 per cent from the 2,033 registrations in the previous year. The continuous growth of new registrations

year-on-year is one of our major achievements. We intensify our efforts to reach prospective investors from other countries through advertising, networking, road shows and participation in conferences and exhibitions in and outside the UAE. We have also participated in conferences and trade visits organised by the UAE Ministry of Economy. Additionally, RAK FTZ has international liaison offices to help its global clients set up their businesses with us at their convenience. All of our offices can process registrations and provide promotional, as well as administrative processing to ensure quick and easy entry into the UAE for new foreign clients’.

Q:

What kind of companies does RAK FTZ attract? Are these more from the manufacturing or service sector?

A: With hard work and dedication,

we have enjoyed an annual growth in new registrations, the bulk of which are commercial enterprises.

In the whole of 2012, 63 per cent of RAK FTZ's new company registrations were commercial, 27 per cent were consulting, 9 per cent were general trading and 1% was industrial.

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Robust RAK May - June 2013

Cover Story

Football is my life and it has taught me a lot of lessons that I apply to my day-to-day life: teamwork, discipline and perseverance. environment in Ras Al Khaimah to attract big investors in the emirate.

Q: What is your opinion of the Ras Al Khaimah business environment and what is your forecast for the same?

A: It is on the rise. Ras Al Khaimah is steadily gaining momentum.

As it is, the emirate has one of the best seaports in the region, attracting different industries.

The government is investing in healthcare, infrastructure and power source. Coupled with the expanding population and increasing tourism, it is shaping up to be the most ideal business environment.

Q: What are the achievements of RAK FTZ?

Q: Which countries do these companies come from?

A: On a year-on-year basis,

investors from India remain at the top of the new registrations, followed by UK, Pakistan and Jordan. The USA comes in fifth, followed by Turkey, Egypt, Germany and France.

Q: How do you sustain the companies that have already set up shop in RAK FTZ?

A: RAK FTZ has performed

consistently well since its inception, and continues to attract new clients. Apart from the basic benefits of a free zone, our investors receive custommade, competitive business

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packages. Certain packages are a hit among small and medium sized businesses that find our investment options viable and the unique support services helpful. In fact, small businesses and individual entrepreneurs form a large portion of our clients.

Q: What are your future plans? Any expansion or, regulation changes in the future?

A: We are currently working on

a five-year plan for RAK FTZ, including expansion plans, which will be revealed soon.

There are no changes planned in terms of regulations. We want to ensure that the current regulations are working smoothly, and that it is helping to improve the business

A: I would say it is about two

main basic things: Firstly the right people; people with passion who believe in this project, and are working hard for it; and secondly, we have full support of the Ras Al Khaimah government. Actually, the government’s support comes first, as it is only if the government believes in a project and gives it full support, it can work.

Q: On a personal note, it is a well-

known fact you are an ardent football lover. Do you get the time to follow the beautiful game?

A: Of course! Football is my life

and it has taught me a lot of lessons that I apply to my day-today life: teamwork, discipline and perseverance.

May - June 2013

Robust RAK

Set Your GPS

In Ras Al Khaimah, exploring history & adventure...

Ras al Khaimah as an emirate is an ideal manufacturing and production site, but this emirate is also a stupendous destination for tourists. TRR is going on a journey to discover what makes this emirate a special tourist destination.

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as Al Khaimah has earned its name of being a rising emirate as it is rapidly becoming a global tourist destination on the international tourism map. As a matter of fact in 2012 Ras Al Khaimah welcomed 1,105,191 visitors, generating a revenue boost at almost AED 585.066 (US$ 159.418 million).

This is a staggering achievement for Ras Al Khaimah. It’s safe to

say Dubai has recovered from the recession and tourists have once again begun pouring in Dubai which is an indication that the tourism industry is up and running yet again in the UAE. With its proximity to Dubai, located only 45 minutes from Dubai International Airport, Ras Al Khaimah has positioned itself as the affordable luxury destination for leisure and adventure.

Let’s shed light on a few vital statistics. In 2010; 600,000 visitors were recorded in Ras Al Khaimah.

The number jumped to 835,200 in 2011, exceeding the target that was set of 800,000 visitors. From January to December of 2012, 1,105,191 visitors were recorded achieving the 2012 target of 1 million visitors in November, one month ahead of schedule.

In a short span of

21

Robust RAK May - June 2013

Set Your GPS

approximately three years, Ras Al Khaimah has reintroduced its exclusive tourism elements to the world. This included the diversity of landscapes, which offers various adventure activities, international branded hotels & resorts, world class cuisines and spas at a great value for money. Promoting this affordable luxury destination is one of the main tasks of the newly formed Ras Al Khaimah Tourism Development Authority (Ras Al Khaimah TDA), which will celebrate its second anniversary in May of this year. It’s safe to say Ras Al Khaimah TDA has worked tirelessly to achieve these numbers and provide its visitors enjoy a memorable travel experience - ultimately that is what every traveller or family on holiday is looking for.

Ras Al Khaimah TDA is constantly researching and analysing future tourism projects and current trends. The RAK TDA creates and implements the branding, marketing and promotion of Ras Al Kamiah’s tourism products and services, develops, implements and supports strategies designed to encourage tourism investment into the emirate. Without doubt this newly formed authority has done a lot of hard work to make sure targets have not only been achieved, but have been comprehensively surpassed.

Ras al Khaimah TDA’s mission is simple; to position Ras Al

22

Along the hospitality side of Ras Al Khaimah, heritage and culture play a major role in this rising emirate with various historical sites and heritage attractions.

Khaimah as a global affordable luxury destination for leisure and adventure on the local, regional and international levels.

Throughout 2011 and 2012 the Ras Al Khaimah TDA has visited various international cities endorsing Ras al Khaimah as a tourism destination at international travel shows, conferences and exhibitions. Ras Al Khaimah TDA participated in “Leisure Moscow” in Russia in 2011, “WTM” in the UK in 2011, “ITB” in Germany in 2012, “ATM” in 2012 and hosted as well as took part in road shows in Sweden, Ukraine and Russia. Ras Al Khaimah TDA has taken various initiatives to implement strategies and initiatives designed to generate and encourage tourism investment and investment opportunities into Ras Al Khaimah including launching “Ras Al Khaimah Investors Guide” during the Arabian Investment Conference 2012; an Investment guide featuring the most updated analysis of Ras Al Khaimah’s hotels performances, its indicators, number of hotel visitors and its forecast until the year 2020 as well as an analysis of Ras Al Khaimah among its comparable destination based on Ernst & Young’s data.

The future of the tourism industry looks very bright in this emirate. A 349-room Ras Al Khaimah Waldorf Astoria is scheduled to open in Q2 2013, marking the entry of the luxury brand of Hilton Worldwide brand to the UAE. The monstrous 632-rooms Rixos Bab Al Bahr

May - June 2013

Robust RAK

Set Your GPS

Resort, scheduled to open in Q4 2013, is also being developed on the five man-made Marjan Island of Ras Al Khaimah. Al Marjan Island consists of a cluster of five coralshaped islands extending over 2.7

million sqm and is worth over US$ 1.8 billion.

Along the hospitality side of Ras Al Khaimah, heritage and culture play a major role in this rising emirate with various

historical sites and heritage attractions.

Take for example the Khatt Springs, a natural hot spring renowned for its healing properties. The waters, rich in mineral content reaches a depth of 90 feet underground and with temperatures approaching 40 degrees celcius can cure a number of skin ailments and problems associated with rheumatic disease.

The Dhayah Fort built as a strategic military castle in the 16th century on a mountain overlooking the Gulf also adds to the heritage value of Ras Al Khaimah. The fort is bathed in history; it witnessed a battle between the local people and the British troops. Here, its towers were set on fire and later destroyed in 1819. The Fort was restored in the 1990’s and its strategic location provides outstanding views of Ras Al Khaimah.

In forthcoming issues of Robust RAK, sit back while we uncover some scintillating sights and sounds of Ras Al Khaimah that is sure going to make you forget about your business on the weekend or longer, as you pack your bags and head to Ras Al Khaimah with your loved ones.

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Robust RAK May - June 2013

RAK Business Champions

Shaping the future of affordable health care As the largest local pharmaceutical company in the UAE, Julphar is an example of a homegrown business making a true impact on the global stage.

G

ulf Pharmaceutical Industries, more commonly known as Julphar, is a reflection of Ras Al Khaimah’s significant development. Julphar came into existence 32 years ago in 1980 under the guidance of H.H Sheikh Saqr Bin Mohammed Al Qasimi, the late ruler, when there were few businesses in the region. The objective was to produce high-

24

quality, affordable medicines for people in the UAE.

The company began with one standalone facility which produced only a handful of products and is currently involved in production and distribution across five continents. Over the years, Julphar has expanded to 11 local facilities which produce a diverse range of products across 12 therapeutic categories with plans to add to

manufacturing units in Ethiopia, Kingdom of Saudi Arabia and Algeria.

Products

Since inception, Julphar has played an instrumental role in global health care development, focusing on strategic initiatives, quality product development and ensuring responsible practices.

With 3483 product registration

May - June 2013

Robust RAK

RAK Business Champions

With 3483 product registration certificates as of Dec-'12, Julphar is recognised as of one of the largest pharmaceutical manufacturers of generic medicines in theME Diabetes certificates as of December 2012, Julphar is recognised as of one of the largest pharmaceutical manufacturers of generic medicines in the Middle East.

Julphar’s product portfolio targets major therapeutic segments including endocrinology, anti-infective, cardiovascular, gastroenterology, over-thecounter, nephrology, dermatology, respiratory, metabolic and burn and wound management.

International expansion

Recognising the importance of the African market, Julphar decided to launch its first internationally accredited manufacturing facility in the GerjiJakros region of the Ethiopian capital, Addis Ababa.

Covering an area of 40,000 square feet, the USD9.6 million facility produces solid and liquid dosage forms of medicines. Once fully operational, the Julphar plant will produce 25 million bottles of suspension and syrup, 500 million tablets and 200 million capsules per annum. The new plant is equipped with technology enabling production of Julphar products not only for the local market but also across the African continent.

The opening of its first African facility not only demonstrates Julphar’s commitment to the development of world class healthcare across this dynamic and vast continent but also emphasises its long-term desire to become a key investor in its economic development.

Annual Plant Capacities (J I-J XII) Julphar Plant I: 5000 million tablets, 500 million capsules, 5 million powder pro-suspension.

Julphar Plant II: 30 million

ampoules, 6 million lyophilised Vials,5 million pre-filled syringes.

Julphar Plant III: 600 million

tablets and capsules, 5 million antibiotic powders for suspension.

Julphar Plant IV: 300 million tablets and capsules, 5 million of antibiotic powder pro-suspension.

Julphar Plant V: Packaging plant (as needed).

Julphar Plant VI: 94 million bottles syrup, suspensions and drops.

Julphar Plant VII: 150 grams

erythropoietin, equalling 7.5 million vials.

Julphar Plant VIII: 50 million units.

Julphar Plant IX: 30 million units.

Julphar Plant X: 60 million tubes of creams and ointments, 200 million suppositories.

Julphar Diabetes: 40 million vials

insulin.

Julphar Ethiopia: 25 million bottles of suspension and syrup, 500 million tablets and 200 million.

In 2012, Julphar launched a AED500 million plant entirely dedicated to the manufacturing and commercialisation of diabetes products. Production capacity is expected at 40 million vials of insulin per year, enough to supply the entire region and beyond.

This manufacturing plant is built in accordance with the latest EMEA regulations and utilises the best available technologies in the market to comply with the latest international quality standards.

Insulin production is a key area of growth for Julphar and plays a large role in the business. Diabetes is a global pandemic and in on the rise in the MENA region and other countries where detection is poor and insulin is not always available. It is estimated from the International Diabetes Federation that 438 million people will have Diabetes by 2030.

Julphar remains part of the UAE’s rich commercial heritage, and with that comes a future promise to its stakeholders; to provide high quality, affordable medicines to areas which need it the most. With a healthy product pipeline, a strong balance sheet and a proven ability to overcome challenges, Julphar is shaping the future of healthcare.

As one of the first companies established in the UAE, Julphar sustains a strong desire and obligation to create opportunities for the national population. Their Emiratisation program offers training to locals through our accredited Julphar Training Centre, which offers many courses from Leadership to Technical training.

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Robust RAK May - June 2013

RAK Business Champions

RAK Ceramics: An interior designer’s dream RAK Ceramics has achieved a phenomenal growth in a short span.

Several companies have modelled their corporate profile, and, also, continue to idolise the company. Robust RAK takes a look at what makes the company a first choice for consumers world-wide. Here’s an excerpt of a conversation with the firm's CEO- Abdallah Massaad.

Q:

Already a world renowned name and market leader in tiling and flooring around the globe, where is RAK Ceramics gunning to?

A: Product innovation has always

been one of the core strengths of RAK Ceramics. And, accordingly, we shall continue to offer trendsetting and pioneering products to our clients. Last year, we achieved a milestone of 1billion sq.m. of tiles sold worldwide, but we are not resting on these laurels. However, we are continuing to work hard focusing on offering new product ranges to our customers worldwide.

We are looking at tapping new market segments by entering into territories, where traditionally tiles are not sold such as offering tiles as alternatives to natural stone, marble, granite, natural wood, and

26

May - June 2013

Robust RAK

RAK Business Champions

RAK Ceramics has actually performed remarkably well over the past few years as a result of our aggressive growth plans. We were able to pre-empt the market and take strategic decisions at the right time to be able to overcome economic meltdown in parts of the world. wallpaper among others.

RAK Ceramics is positioning itself as a complete interiors solution provider by offering tiles, bathware, tableware, faucets and kitchen fittings and paints under one roof. This would help us in our retail expansion plans by strengthening our brand presence with our various showrooms in the region.

Q: What is the percentage of

ownership, which includes foreign and local investors in RAK Ceramics?

A: Currently, 87 per cent of

RAK Ceramics is owned by local individuals or companies, 6.5 per cent by local Government and 6.5 per cent is owned by foreign investors.

Q: Tell us a little bit about your

Q: What is RAK Ceramics’ current

A: We specialise in high-quality

A: RAK Ceramics is a US$1 billion

products, its range and varieties? ceramic wall and floor tiles, Gres Porcellanato, sanitary ware and kitchen fittings, tableware and paints as we have developed a wide range of top-quality products and exquisite designs over the years.

RAK Ceramics uses more than 8,000 production models, with new tile designs added almost every week to its product portfolio. Tiles are manufactured in a variety of sizes, from 10 cm x 10 cm up to 125 cm x 185 cm, the widest range offered in the ceramic field.

We offer sanitary ware in three basic models: back-to-wall, wallhung and close coupled bathware models. Under Kludi RAK brand, we offer high quality faucets, taps and kitchen fittings. Our highend ceramic tableware sold under RAK Porcelain brand is targeted at high-end hospitality industry. We also offer tile adhesives and grouts under Laticrete RAK and ecofriendly paints under RAK Paint brand.

turnover?

global conglomerate that supplies to over 160 countries. And, it has been officially recognised as the world’s largest ceramics manufacturer with a global annual production output of 117 million sq.m of ceramic and porcelain tiles, 4.5 million pieces of bath ware and 20 million pieces of tableware.

Q: What are your immediate and longterm goals towards increasing your company turnover?

A: In the long run, RAK Ceramics

will continue to focus on product innovation as a key element of our growth strategy. In this regard, we have been aggressively conducting market research to gain better insight about the specific needs, preferences and even viewpoints of our customers, which enables us to introduce products that offer optimum value to our customers.

Our products are currently being distributed in over 160 countries

across five continents, which add a distinct advantage in market coverage over our competitors.

In this regard, we will focus more on tapping new opportunities in product markets, seeking to fill market gaps and anticipating new market trends.

Further, we are offering complementary diversified range of products such as bath ware, faucets and kitchen fittings, tableware and paints as a complete solution.

It aims to allow customers to walk into a one-stop store, with complete range of products and services.

Q: Was RAK Ceramics affected by the economic slowdown of 2008-2009?

A: RAK Ceramics has actually

performed remarkably well over the past few years as a result of our aggressive growth plans. We were able to pre-empt the market and take strategic decisions at the right time, which enabled us to overcome economic meltdown in parts of the world.

Q:

How did you manage to ride off the wave?

A: RAK Ceramics has always

invested in the best technology, raw materials and state-of-the-art machineries that allowed us to manufacture high quality products, which are universally accepted.

During the crisis, RAK strengthened its global presence by proactively filling the gaps in the market by

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Robust RAK May - June 2013

RAK Business Champions

tapping new market segments. We offered innovative products using our digital printing technology, which helped us to produce many kinds of complex designs and produce tiles that imitate natural stones, marbles, natural wood etc.

This opened up new avenues for us to be able to penetrate into new markets. Our diversified range of products helped us to offer complete solution package to our clients worldwide.

Q: You not only have 10 state-of-

the-art plants, but also units in five countries around the world. In a span of two decades that’s quite a phenomenal growth rate - your reactions?

A: The success of RAK Ceramics has to be credited to the initial vision of H.H Sheikh Saud Bin Saqr al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, who right from the outset wanted RAK Ceramics to be a world-class organisation to be recognised for its high quality and innovative products worldwide. Currently H.H Sheikh Mohammed Bin Saud Bin Saqr al Qasimi, Crown Prince of Ras Al Khaimah and Chairman of RAK Ceramics is directing the company towards global competitiveness.

This is a key factor that has given the company greater leverage to realise its vision to become the world’s largest ceramics manufacturer. To achieve our

28

goals, we have acquired top-of-theline equipment, manpower and adopted the latest manufacturing techniques. We also use the best raw materials in the production of premium quality products.

We have been always aggressive with our expansion plans by tapping new territories and market segments. These are key attributes that have allowed RAK Ceramics to offer pioneering products in the ceramic tile industry.

RAK Ceramics has been flexible in catering to the needs of customers, which distinguishes us from other companies that have limited production capabilities in terms of quality and quantity.

We are able to develop a much wider range of designs and in more flexible quantities to satisfy the specific demand of various markets. With the infrastructure available in Ras Al Khaimah, we have been in a position to leverage the advantages of largescale production and expand with sustainable growth that has allowed us to grow to become the world’s largest ceramics manufacturer.

Q: How many employees do RAK Ceramics have?

A: RAK Ceramics manages around 8,000 employees in the UAE.

Q: Does RAK Ceramics organise any programs, workshops and

recreational activities for its employees?

A: We believe that our company

will succeed and grow only if we attract and retain the highest quality workforce. RAK Ceramics is blessed with some of the most hard-working and efficient employees. A large number of employees have been with the company since inception which speaks volumes about the working environment in RAK Ceramics that allows employees to work continuously for long periods of time which mutually benefit the company and employees.

We encourage employees to develop both professionally and personally through a variety of training, workshop and development opportunities. Most importantly, RAK Ceramics offers its employee with free food facility, fully equipped accommodation and free transportation facility for employees who reside in Ras Al Khaimah. Additionally RAK Ceramics invests in the health and safety of employees by providing medical and life insurance coverage and setting up employee welfare fund. RAK Ceramics encourages its employees to participate in a lot of sporting activities and sponsoring programs and events for their social and recreational activities. RAK Ceramics has CSR policy in place that focuses on employee welfare and development.

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Robust RAK May - June 2013

SME Financing

Making banking easy

Having trouble dealing with banking jargons? Harshit H. Jain simplifies the entire banking process in this column.

W

e all have our moments where we fail to receive some funds for which we demand an explanation from the bank. A common phrase we hear is, “We shall credit your account as soon as we receive (or sight) the SWIFT MT-103.” For those unfamiliar with banking terms, this might be perplexing.

30

What is SWIFT?

SWIFT is an enigma to most customers, who, typically, encounters the above message while checking with their bank about the receipt of funds into their account from their overseas customers. Some of them take it to mean the English word “swift” and wonder why funds transfer should therefore take so long! Frankly,

this term has now become so firmly ingrained as part of the banking jargon that sometimes even wellheeled bankers or new joiners in banks do not fully comprehend what SWIFT really is.

Established in 1973, the Society for Worldwide Interbank Financial Telecommunication (SWIFT– www. swift.com ) is a telecommunications and messaging network owned by

May - June 2013

Robust RAK

SME Financing

SWIFT facilitates international payments, but it is not a payment, clearing or settlement system.

It is also increasingly serving as a standards organisation banks and is today used by over 10,000 banks, financial institutions and corporations (from 2001 onwards) for the exchange of financial data between members.

It is a non-profit bank-owned cooperative that was incorporated in Belgium and operates in 210 countries and processes over 5 billion messages every year.

SWIFT facilitates international payments, but it is not a payment, clearing or settlement system.

It is also increasingly serving as a standards organisation and has a tagline which states: “The global provider of secure financial messaging services.” SWIFT uses a set of strict standards, which when used accurately, enables standardised messages to be generated, received and interfaced by bank computers and local clearing systems in a fully automated way (“Straight Through Processing” or STP). In most countries, electronic links/ interfaces have been built between SWIFT and the local electronic clearing systems like Clearing House Interbank Payment System (CHIPS) in New York and Clearing House Automated Payment System (CHAPS) in UK to facilitate international funds transfers.

At a higher level, SWIFT provides standardised message formats for all transactions. SWIFT messages maintain high security using a Public Key Infrastructure (PKI). There is no downtime for SWIFT networks, therefore, a member bank receiving the message cannot deny receiving it.

Harshit H. Jain is a seasoned banker with over 25 years of global banking experience and commercial success across Asia and Middle East. He is the founding CEO of InnoVention Solutions, a young and versatile consultancy and training firm which focuses on providing consultancy, training and advisory services to banks, financial institutions and corporate customers (Institutional clients as well as SME clients) in the Middle East, North Africa and South Asia (MENASA) region.

currency codes are: AED for UAE Dirham, CHF for Swiss Franc, CNY for Chinese Renminbi (Yuan), EUR for Euro, GBP for British Pound, and so on. These currency codes are also easily available online.

Apart from the SWIFT BIC codes and the currency codes, SWIFT has done a tremendous job in developing standardized Message Text (MT) types. These messages support the business transactions of SWIFT users covering various types of bank transactions. These are:

MT 1xx

Furthermore, it is a high security network that has known no virus attacks in over 39 years of service and has operation centres and regional processors. It is a very secure network that transmits data, and not funds.

MT 2xx

How does the SWIFT network work?

MT 4xx

SWIFT network works like a typical postal mailbox network connecting its members – be it banks, financial institutions or corporations – except that it is a global network and very secure at that. It uses addresses, called the SWIFT Bank Identifier Code (BIC), which are standardised addresses to route messages from one member to another member within SWIFT globally.

SWIFT BIC address

BBBB CC LL (bbb) which is deciphered as:

BBBB being the unique fourcharacter Bank code

CC is a unique two-character Country code LL is a two-character Location code

bbb is a three-character Branch

code (becoming less prevalent with centralization of operations or data centres at banks)

Another component of a SWIFT message standard is a currency code. These are used extensively in accordance with ISO standards.

For example, the more common

MT 3xx

MT 5xx MT 6xx MT 7xx MT 8xx MT 9xx

Customer payments and cheques (MT 103 – Customer Transfer) Financial institution (bank-to-bank) transfers Treasury markets – foreign exchange, money markets and derivatives Collection and cash letters Securities markets Treasury markets – precious metals and syndications Documentary credits and guarantees Travellers cheques Cash management and customer status (balance and transaction reporting)

Now you can see what the bank means when it says it is waiting for the SWIFT MT-103 before crediting the funds into your account. It is the MT-103 Message Text from the remitting (your customer’s) bank which has not yet been received (sighted) by your bank!

In line with a shift to the web-based world and to cater to the increasing demands of its members, SWIFT has also developed XML-based Messages (MX) which serve to complement the traditional MT messages. These messages also enable the transfer of richer data for more complex business transactions and are ISO 20022 compliant.

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Robust RAK

May - June 2013

Legal Column

To the long life of your business If you do not have a proper business succession plan or estate planning in place, you are inviting uncertainties in the future, writes Nita Maru.

I

n my line of business, I am often found quoting the words of American author and academician John M. Richardson Jr. Marked by innate simplicity, it is as simple to practice as it is to preach: “When it comes to the future, there are three kinds of people: those who let it happen, those who make it happen, and those who wonder what happened.�

If you own or co-own a business or professional practice in the UAE, it is important that you plan for its future, and that of your family members, before someone has to sit back and sigh over what went wrong.

As a business owner, a significant portion of your wealth - and possibly your family's main source of future income - will be tied up in your business.

The success of your estate planning is dependent upon this article181002.html"business being transferred smoothly, or sold to a third party for a fair price. Either way, it takes considerable planning and preparation, and should be ranked high on a priority task list for all business owners.

Average global statistics estimate that less than 30 per cent of family owned businesses survive to the second generation, and less than 12 per cent to the third. The survival rate for the

32

May - June 2013

Robust RAK

Legal Column

People who complain are all over the place and you're going to run into them at any job, no matter how great their job within the company.

These people will poison you with all kinds of negativity and cause you to see only the bad side of your job. fourth generation is a meagre three per cent.

For expatriates living in the UAE, these figures may be ever more alarmingly lower. The Government of Dubai’s official website emphasises: ‘The UAE Courts will adhere to Sharia law in any situation where there is no will in place’. This means if you die without having planned your future - or that of your family - the local courts will examine your estate and distribute it according to Sharia law. Personal assets including vehicles and bank accounts will be seized, until liabilities have been discharged. A wife who has children will qualify for only 1/8th of the estate. Shared assets will be frozen until the issue of inheritance is determined by the local courts, and surviving family members are often left without access to money during this period.

On the business front, if you do not have a proper business succession plan or estate planning in place, you simply cannot be sure what will happen after your death: whether your family will be provided for, who will look after your business, and when and how your beneficiaries will stand to benefit from the investments you made in your business.

There are also many uncertainties regarding real estate inheritance issues under Sharia law, especially in the case of office, showroom, manufacturing or warehouse facilities that are owned or co-owned by an individual but used by the business. Unlike other

Nita Maru (LLB Hons.) is a British qualified solicitor and founder of TWS Legal Consultants in Dubai.

She can be contacted for personal appointments on Tel: (+ 971) 4 448 4284,

by Email: info@willsuae. com, or by visiting www. willsuae.com

independently.

Key questions

jurisdictions, the UAE does not practice ‘right of survivorship’ (where property passes on automatically to a surviving joint owner upon death of the other), and the local courts will have a final say in the matter.

All successful businesses whether sole proprietor firms, partnerships, joint ventures, limited liability companies or free zone corporations - should plan for the transfer, succession, and/or sale of the business in unexpected circumstances shrouding the owner or a partner.

Planning your business succession is a process - not an event - and it is intuitive, interactive, and reflective of circumstances. The process will also vary based on the number and diversity of issues involved. Consequently, there is no single fit solution that will work for everyone; each case has to be studied and evaluated

It is best to begin by addressing and answering pertinent questions yourself: Who will run the business after you? Will revenues decrease dramatically? Will all your loyal clients take their business elsewhere? Will your business survive your absence?

Planning the future of your business and ensuring seamless continuity and success may be a complex process, but professional lawyers not only offer advice, but also, provide physical assistance in setting up bespoke solutions like trusts, and off-shore structures.

A good business succession plan will address the death, disability or retirement of a business owner, as well as the sale of a business owner’s interest.

Further, a great plan will ensure that all the business owner’s objectives are accomplished - that the most effective business transfer is realised, and that funds will be available to provide maximum financial flexibility. Professional lawyers will also weave in clauses that minimise the possibility of conflict among co-owners, partners, and heirs, thereby lowering the odds of litigation, and the costs and time involved in probate.

Without adequate planning, your business may be negatively impacted or forced to close in a relatively short period of time.

And it will not be because you did something wrong. It will simply be because you did nothing at all.

33

Robust RAK May - June 2013

Strategic Development

A framework to measure performance The key to continual growth of any company lies in strategic planning and enterprise performance, V. Ramkumar gives his insights.

1 2 3 4 5 6 7 8 9 10

34

T

he very definition of ‘enterprise’ is not just to refer an organisation, but also reflects initiative and resourcefulness that is best epitomised by the business segment. However, it is perceived that principles of strategic planning and enterprise performance are the lookout of large and multinational enterprises, not for all businesses to be spending time on!

The very concept of ‘enterprise performance’ in most circumstances tends to get limited to the financial performance of an organisation – be it the turnover, or revenue or the organisational profit and profitability.

While all of these criteria are important, and do define the health of an organisation, they are more of a lag-indicator of how an organisation performed during a reporting period, and do not reflect ‘sustainability of performance’ on an ongoing basis.

There is much to do with strategy than a mere budgeting session at the beginning of the year. And in order to drive and manage sustained enterprise performance, one needs to measure it effectively. What cannot be measured cannot be managed, leave alone be driven!

In order to drive enterprise performance, we may therefore need to define what it entails. And, as we know, this has to include both short-term financial objectives, and the long-term organisational behaviour leading to its growth.

The Balanced Scorecard provides

May - June 2013

Robust RAK

Strategic Development

a four-perspective framework across financial, customer, process and organisational learning to formulate strategy, and translate it into operational terms. The beauty of the framework is its ability to define objectives, and link it to clear measures, targets and initiatives. In simple terms, it ensures that the language of measurement provides clarity to vague concepts – at an enterprise level.

Typically the questions that one would need to answer are structured across four broad buckets: Financial: What kind of financial performance should an SME firm focus on so that it is seen as attractive to stakeholders and external marketplace (such as turnover, revenue, profit, margins, etc.)

Customer: Which customer segments and their related expectations need to be focused from a product or service and relationship standpoint?

Process: How should the processes be managed to deliver customer expectations across planning, innovation, operational excellence, and how do we improve it?

Organisation and IT: To achieve its vision, how should the organisation learn and improve? What technology and MIS framework is required for the above?

The Balanced Scorecard framework helps in defining not just the financial expectations of an organisation but also have it supported through a “balanced” framework that encourages measurement of non-financial aspects of delivering enterprise performance. However, it is also important to recognise that the essence of successfully driving performance also entails a few important dos and don’ts that the CEO of a company should watch out for:

Build consensus of the strategic direction with all senior management team on all objectives – both financial and non-financial.

It is hard to drive performance unless there is clarity. If there is disconnect at the highest level on what is important for the organisation, it is hard to expect

V Ramkumar is senior director at Cedar Management Consulting International LLC, a US based management consulting firm whose heritage includes being part of the firm founded by creators of the Balanced Scorecard. Ram has over 17 years of management consulting and strategic transformation experience.

He can be reached at v.ramkumar@cedarconsulting.com

the rest of the enterprise to have consensus.Ensure that clarity of any strategy is not limited to a few at the top of the organisation, but have it cascaded across an organisation. This is true for most organisations and even more critical for SMEs, where people are essentially the most valuable resource. We seldom come across successful enterprises whose people are unaware of the organisational priorities!

Bring in clear measures that help assess progress. Unless there is a continuous measurement of the enterprise performance across both financial and nonfinancial objectives, it is very easy to get carried away by shortterm financial performance and leave behind areas that need strengthening. Again, as I said before, what is not measured well cannot be managed well.

For instance, even if your sales performance for last quarter was outstanding, if you are not measuring complaints received and ensure they are addressed in time, the performance is not sustainable!

This also means the performance measures of everyone in the organisation is aligned to that of the enterprise, and is measured. It is quite typical to see businesses invest a lot of effort and resources on developing Key Performance Indicators (KPIs) for their employees, but not every time do you see these in alignment to that of the enterprise. For example, if the organisational objective is to develop the business in Abu

Ensure that clarity of any strategy is not limited to a few at the top of the organisation, but have it cascaded across an organisation.

Dhabi, the KPI of the sales-force has to reflect this as well. If your salesman is spending 90 per cent time visiting customers in Sharjah, then it’s time you got some fixes to the sales process!

Execution is key

While all of the above are about defining the objectives and measuring the performance, it is the execution that delivers the value. And this is perhaps where many organisations tend to mix up means with the ends. Now let me explain. An ISO certification exercise or an ERP implementation are only means to deliver a better process or technology framework, and cannot be an end in itself.

However successful a six-sigma project may be, it only helps in improving the processes of an organisation – which in turn delivers the financial benefits through cost-reduction and efficiency. A good performance management system is also expected to align the objectives for the year with the initiatives – which ensures that priorities are set to deliver what it takes to achieve the targets, and at the same time effort and energy is not pilfered on areas of non-priority.

As organisations grow it is this performance-based culture that drives sustained and balanced growth. Fortunately, it is much easier to have this institutionalised earlier in the growth phase. All it takes is the focus it deserves, and the will to implement it on a sustained basis.

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Process Documentation

Simplify your business process Vinayak Doddihal details the first in a series of steps involved in process documentation.

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ook around you. Take an example of any business and you will find that a business runs because of processes that have been documented systematically or people running a business know these processes.

If those running a business know about these processes, then why is it required to document these? The answer lies in the question itself. What if those people who know about these processes leave the organisation, or just retire? Could the business be run in the same way as it was running before?

Process documentation is

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mainly about improving customer experience and streamlining processes running a business.

Another advantage of documenting processes is to find out gaps, if any, and to analyse whether some of these processes or activities could be automated to improve productivity.

I have an interesting example to cite: one of my good friends is running a successful business for last 20 years, primarily depending upon his trustworthy staff. Most of his employees have been working with him since the inception of the company, and they know everything about the operations

of the business. Everything was running smooth until one of the key players of his business decided to migrate, giving a very short notice. My friend realised that he could not play the role of that key player nor employ someone else, as no one in the organisation was aware of how that key player conducted his business operations.

This friend of mine requested for help, and we were able to capture the business processes just in time.

Imagine the plight of the business without the key player!

Such scenarios are common in businesses, and therefore, they mandate investing in business process documentation. Yes, it is an investment. It helps an organisation to go for quality certification, simplifies internal quality audits, reduces the learning curve of new staff, and helps to improve productivity and customer satisfaction.

It is not mandatory to go to a consultant to document business processes; although they do bring a lot more to the table than just documenting processes. They help you find the correct process standard, process documentation tool, document delivery method, and document maintenance methodologies, and most importantly, look at your processes from an objective point of view, giving you suggestions on their improvement. If you decide to document business processes yourself, you will find this article useful in understanding what is

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Process Documentation

What if people who know everything about processes leave the organisation, or just retire? Could the business run in the same way as it was functioning before? to be done to document these processes. If you decide to hire a consultant then you will find this article useful to understand how they develop process documentation.

Collection of data

Data collection related to processes seems to be simple, as people running these processes are the ones holding that information.

However, in reality it is the trickiest step of all. People perceive a process from their own point of operation and each individual looks at these processes only from his/her point of view. Therefore, to understand any business process, one must interview all individuals involved, to see their perception of that process and to interview the management to understand their expectations.

So where does one start? The answer is simple; it’s always a top-to-bottom approach. Start with the management to find out what processes a company has. The management staff of a company is supposed to describe the operations to you, and it’s your job as process documenter to find out the high-level processes. Make a list of these high-level processes and find out who the process owners are. Don’t get overpowered with technical terms. In simple language, a process owner is the person who is responsible for its operation. Let’s take a simple example of a leave application process to see what data to collect and how to collect it. The

leave application is raised by an employee wishing to go on leave, let’s call him a process initiator.

The leave application is then sent to his line manager for approval, he is a process player. Once approved, the leave application goes to HR department for various actions, such as deducting leave balance, checking leave balance and adjusting leave, and then forwarding the application to payroll for salary adjustments, if any. This simple leave application process involves quite a few people – the initiator, line manager, HR manager, HR officer responsible for leaves, personnel office for updating employee file, and payroll for salary adjustment. However, as a business function, it is the HR Manager who is responsible for the overall leave process, and hence he is the process owner.

A process owner is vital to the success of a process execution as he knows how the process works, and he has an authority to control it. It is very crucial to interview a process owner to understand highlevel of process execution, policies associated with that process, the work flow, the documents used in that process, other process players and their roles, and so on.

Once you collect the high-level process execution, make a point to interview each individual involved in the process.

Using the above example as a guide , find out what happens if a leave application is rejected by the line manager, how leave balance is maintained and then deducted,

Vinayak Doddihal is director at Infinito Management Consultancy and specialises in managing and authoring simpleto-complex process and technical documentation.

He has been instrumental in implementing DITA and Single-source methodologies to produce process and technical documentation for print and online media. He can be contacted at vin@ infinitome.com or on +971 56 690 4565.

how the personnel officer updates an employee’s file, and how salary adjustments are done. Verify what they say with the process owner, and if there is any conflict, resolve it by discussing jointly with the process owner and process player.

Always keep in mind the customer of this process. In our example, the customer is an employee requesting for leave. You also need to interview employees to find out what do they expect from the leave application process. It is very important to align views of all parties involved in the process; however the decision of management and of process owner is final.

While interviewing the involved parties make a note of documents associated with the process such as, forms, policies, working documents. Find out where these documents are stored and their formats. You will need these documents later. Discuss the process flow; find out how each process player interacts with the other, what policies are associated with the process, and whether process activities are manual or automated. Collect all possible information related to the process you are documenting. Always a make a note of how a process interacts with other processes.

In any organisation a process is never stand-alone; all processes are interlinked. If you are able to collect correct and factual data from all involved parties, you have won half the battle of documenting the process.

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Robust RAK May - June 2013

Getting Insured

Planning for emergency Preparing for the worst can avoid serious implications for a business. Sandi Saksena details a few strategic methods to help a business cope.

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ll CEO’s share three common goals: business prosperity, family harmony and personal well

being.

As the owner of a business you, no doubt, have your definition of success. However, I challenge you to add one more component to your definition of success: What will you leave behind as your lasting legacy?

Ask yourself, “If I died or fell critically ill today, how would my family look after me? What would I want people to say about me? Have I done my best, given my all? Has my life had meaning and purpose?�

Many businesses fail not because the owner was not hardworking or creative, but because he or she did not have a business plan; was poor at record keeping and financial control, to review revenue and expenses report each month, because he was either too busy or was cutting costs.

Other reasons include poor money management. By living for one to two years without income when getting started, often businesses are very slow to get off the ground. Or, there is no creation and/or use of a realistic business budget thus constantly draining the business income or personal spending.

Sometimes, procrastination and poor time management can also bring about failure. Further, do not forget poor cash flow. Let's face it - having enough cash on hand to pay the bills is crucial, as is having enough cash on hand, or access to capital. Too many business owners

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Getting Insured

fail because they don't have enough cash.

Else, have you heard of ‘entrepreneurial burnout’?

Owning one’s business requires a huge investment of time, money, energy and emotion. Work all hours, but for how long? Many are unable to balance business and personal life, (which includes stress management) and both will suffer. Whether by design or by default, many business owners make themselves irreplaceable.

The reality is, if they were to fall critically ill or die the business would most likely fail.

This is singularly where most entrepreneurs go wrong and, it is without doubt, one of the main reasons why families of business owners find themselves in dire straits.

Preparing yourself for the contingencies that affect the business you own involves a complete exit strategy, which must consider potential changes, such as the death or critical illness or permanent disability of you, the owner, your partner or buyer so that your objectives can still be achieved if circumstances change. Among major dilemmas confronting shareholders, partnerships and sole proprietors is what will happen to their equity in the event of their premature death or critical illness.

There may be reluctance on the part of surviving shareholders to share in the future growth of the company, in particular, when a surviving spouse or children are not active in the business. Or the surviving spouse or children do not have the necessary expertise.

In the event of critical illness or death of the business owner in a sole proprietorship, there could be serious implications, leading to liquidity crisis, loss of credibility and sharp decline of market share.

There is a simple cost effective way to meet the challenges that can occur in the event of critical illness (heart attack or stroke) or death of the owner shareholder. It is life insurance and critical illness insurance.

Life insurance is easy to administer, and the proceeds are usually received income tax free, and are not subject to claims from

Sandi Saksena is a financial planning counsellor with over 15 years experience in advising on life, disability and critical illness insurances. She focuses on exit planning for SME owners, working with accountants and lawyers to provide holistic solutions. Sandi can be contacted by email (sandra.saksena@ nexusadvice.com) or by mobile (0506517963).

creditors. Life insurance will also strengthen the business’s credit position while providing cash liquidity.

Critical illness insurance

What is a buy-sell agreement?

• A legal written agreement between two or more parties providing for the disposition of a business interest at death, disability or at retirement.

•

It provides for an orderly transfer of ownership.

• The agreement must contain an obligation by a shareholder to sell and the other party (parties) to buy.

• An agreed price must be established or an agreed formula to determine the purchase price.

• At death, surviving shareholder(s) uses the life insurance proceeds to purchase shares as per the term of the buysell agreement.

Whether by design or by default, many business owners make themselves irreplaceable.

This money always paid in a lump sum will help alleviate pressures like loss of income, loss of banking facilities and credit lines in the market, creditors knocking at your door. It will help you keep your financial commitments, such as paying your mortgage, car or personal or credit card loan, household expenses, rent, utility bills among others. To put these insurances in place to safeguard business interests, many shareholders, partners and sole proprietors use life insurance and critical illness insurance (which is generally found to be the simplest, most economical way) to fund a buy-sell agreement.

Life insurance and critical illness insurance provides ready cash to buy out a partner’s interests exactly when needed.

As a funding medium for a buy-sell agreement, these two products are unsurpassed. For a modest expenditure each year, life insurance is the only method that fully guarantees that the full amount of cash required is available exactly when needed.

Life insurance and critical illness insurance owned and payable to the company can be the difference between success and failure. The death of Walt Disney many years ago illustrates this point very clearly. At that time, the Disney Corporation was confronted with significant financial challenges. It was the one million-dollar key person policy that he had taken paid for by his company kept the company afloat!

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Business Accreditation

Effective quality management with ISO

Quality never comes accidently, but can be achieved through effective management systems, explains Dr. Sameer Kumar.

M

onopolies are a thing of the past among enterprises these days. In the current scenario, irrespective of growth of economies, business sustenance and survival for existence is one of the biggest challenges for

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companies.

On the other hand, a customer is much more aware and seeks not only quality in a product or service, but also value for money spent. Therefore, companies are focusing on customers, while adopting international standards

for quality, products, and management systems in order to get an advantage over their competition.

A large number of decision makers in businesses are, today, aware of the importance of choosing the right international

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Business Accreditation

A large number of decision makers in businesses are, today, aware of the importance of choosing the right international standard for the growth of their company. However, many companies do not have the knowhow to implement and execute successful certification. standard for the growth of their company. However, many companies do not have the knowhow to implement and execute successful certification.

ISO

The International Organisation for Standardisation (ISO) was set up in 1947. Presently headquartered at Geneva, Switzerland, the ISO is the world's largest developer of international standards. Between 1947 and the present day, ISO has published more than 18,500 international standards for business and commerce, ranging from standards for activities, such as agriculture and construction, mechanical engineering, to medical devices, and the breaking information technology developments.

Although ISO's primary activity is the development of technical standards, ISO standards also have significant economic and social impacts worldwide.

ISO standards make a positive difference, not just to engineers and manufacturers for whom they solve basic problems in production and distribution, but to all society as a whole.

The most popular and most widely used Standards are ISO Management Standards, such as ISO 9001.

Management standards

Management standards are based on the accepted and proven best practices implemented by the most successful organisations in the world. Some of the key management standards are for quality, environment, information security, food safety, among others.

There are many other technical standards for specialised sectors.

ISO Management Standards, such as ISO 9001, are very generic in nature and is applicable for all type of organisations, whether manufacturing or service regardless of its type of business.

They are not compulsory standards, rather best practices for all organisations that seek to consistently and successfully manage their operations. This in turn results in quality products and services, with a focus on customer satisfaction.

Benefits

Independent research clearly shows that ISO standards give organisations a clear competitive advantage over rivals. Consistence

Dr. Sameer Kumar, CEO, Universal Consulting FZE, is a quality professional with an experience of working in more than seven countries. He has provided consultation and training to more than 400 clients in UAE, UK, Thailand, Singapore, Hong Kong and India. He has completed his MBA, PhD and is a six sigma champion by qualification and lead auditor of ISO 9001, ISO 14001 and OHSAS 18001.

in quality, increased customer satisfaction, added sales and profits, customer retention, lesser wastage of resources, and a defined system to manage are just some of the advantages. Moreover, an international standard result in better trained staff and gives each resource, clarity in responsibility and authority.

Companies gain certification to ISO Standards for various reasons: Firstly, to gain immediate competitive advantage over their rivals, leading to more contracts, sales and profits; secondly, to enhance their reputation with their customers, suppliers and staff and thirdly, to better meet their legal requirements. Certification to ISO Standards is an inexpensive and fast way to enhance a business, resulting in more growth, sales and profits.

Most governments, public sector agencies and local authority tenders and contracts now usually stipulate ISO management standard certification as one of the key criteria for selecting contractors.

The same is now the case for corporate sector tenders and contracts and especially within most supply chains.

However, having a standard is only the first step. Certification is a constant process that requires updating. Certified companies should have their management Systems externally audited by a certification body each year.

Organisations are also required to undertake an annual internal management system audit.

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Robust RAK May - June 2013

The Marketing Battle

Ensuring a successful business Simon Hodges discusses business insight to achieve sustainable growth.

H

andling a business is a tough proposition involving a lot of hard work. Many business owners work very hard, but few receive the rewards that they deserve. This is a shame, and in some cases, absolutely tragic.

Today, the reality is that many business owners are increasingly

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concerned about their ability to develop their business and several struggling to survive. They want to grow and prosper in their business, but are unsure how to do it or lack the necessary skills. Some are frozen, while, others are stuck at an unsatisfactory level of development and are unable to achieve results that represent success to them.

Once you get through the populist theories for business failing to grow (too much regulation, lack of capital, poor corporate governance etc), experience has shown that many businesses here in the Middle East are really suffering from lack of orders or sales, difficulty and high cost of acquiring new customers,

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The Marketing Battle

and too many competitors resulting in profit margins being squeezed.

If one or more of these represent your biggest challenge each one points to the same fundamental difficulty: Your business is losing the marketing battle for the hearts and minds of its customers and prospective customers!

Marketing and innovation

Regardless of the products, markets or services you are in, all businesses are sales and marketing businesses as they must sell and market their products or services to succeed. The renowned business guru Peter Drucker once said: “…because its purpose is to create a customer, the business has two – and only two – functions: marketing and innovation. Marketing and innovation produce results, all the rest are costs.”

You really can’t put it any clearer than that and shows that all businesses must understand their business to succeed.

Understanding the business

Unfortunately, many businesses do not attract a sufficient number of leads, and, hence, fail to convert those leads into profitable customers. Also, they let these customers slip away to do business with their competitors principally because the business does not have a clear understanding of the market for its products and services.

Your market consists of customers and potential customers.

For this latter group, there are three reasons why someone does not buy from you. First, they do not have the money to spend on your product; second, they do not want or need your product; while the third is that they do not trust the organisation.

Win trust

The second point is, therefore, to understand that you cannot do much to overcome the first

Because its purpose is to create a customer, the business has two – and only two – functions: marketing and innovation.

Marketing and innovation produce results, all the rest are costs Peter Drucker

two reasons but to succeed over the long term you must win the trust of your customers. Beware!

This trust is not a right, and once won, it has to be earned continuously because if it is lost, it is almost impossible to regain.

Therefore, you need to concentrate on how you will tell them of the benefits of buying from you and not your competitors (your marketing plan).

Customers are your most valuable asset. By knowing the ‘lifetime value’ of a customer, you’ll know - through a simple scientific process - what you can afford to spend to acquire a new customer as well as keep your existing customers.

The lifetime value of a customer is the average cost of your goods or services; multiplied by the average number of transactions for each customer per year, multiplied by the number of years a customer stays with you.

Clear clutter

Did you know that the average consumer receives over 3,000 commercial messages every day (in 1984 it was only 1600).

Here’s the crunch, your marketing is part of everyone else’s clutter. Therefore, the third point is to realise that you are not only marketing

Simon Hodges, CEO, Alchemy Network Middle East has recently launched the franchise network in the Middle East. Alchemy Network is a UK-based worldwide network of consultant partners, who work alongside owners and operators of SMEs to help bring them financial success, and eventually introduce them to systems that will relieve them from the mundane day-to-day running of the business,and allow them time to concentrate more on what they do best.

against your competitors but marketing against every other business for attention of your potential customer!

Because of this, you have to stand out, which is easier if you focus on a specific group of people or businesses that want and need your product or service, and can afford to pay for it!

Niche targets

The fourth point is: “you can’t be all things to all men”.

One should stop marketing to the wrong people by defining your market place and targeting it by concentrating on a well chosen segment or niche.

Once you have identified your target market, the fifth and final point is that you will need to develop a unique selling proposition. A unique selling proposition is the one real benefit that differentiates you from your competition in the mind of your potential customer.

Before ending, I would remind you, there is a limit to how much you can cut prices and costs before quality and service is affected.

Therefore, it makes sense to use no-limit strategies to build a business that can achieve a sustainable growth path.

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Sales & Marketing

A closer look into the SME sector Zed Ayesh elaborates on the issues that affect the growth of SMEs and provides solutions for upliftment.

D

ubai, without a doubt, is one of the best places in the world to set up a business, especially for SMEs. As an expert working very closely with the SME sector for the past five years, I have had an opportunity to deeply understand the working of SMEs in the region.

This has provided a clearer perspective of SMEs internally and externally.

In this part of the world, SMEs are challenged by internal factors

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much more than external ones.

There are two important issues that contribute to the internal challenges, the first being that most SMEs in the UAE are micro businesses employing nine people or less, with a turnover of less than AED3 million

for service-oriented businesses and AED20 million for manufacturing businesses, according to the Dubai SME definition. The second factor is that the majority of SMEs in the UAE are service businesses.

At the outset, it is important to note that UAE SMEs, in spite of all the challenges they face both internally and externally, are in a much better position compared to similar SMEs in the region.

However, it would be pertinent to shed some light on the issues

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Sales & Marketing

that will affect SMEs, a sector that plays a vital role in the economy, employing more than 50 per cent of the labour force.

Zed Ayesh has over 20 years’ experience in management and business development.

He is currently the managing director of Flagship Consultancy based in Dubai, and works with clients on many aspects of the business from strategic planning, business development, marketing strategies, presales and sales management, across different sectors such as government agencies, real estate, media companies, manufacturing, contracting, engineering firms, retail and shipping companies.

Delegation of responsibility

It is fair to say that SME owners are a different breed of people.

They are a key factor in any SME success story, as they drive their businesses with dedication and passion. The more passionate they are about what they do; the better is their rate of success.

Unfortunately, this is also the reason for most of the internal challenges – owners or managers cannot ‘let go off the reins;’ in most cases they are unable to empower other staff, and which means there are lesser delegations of duty to get the job done. Ultimately, it all boils down to an owner or a manager and his individual capacities to multitask, instead of creating internal systems that delegate responsibilities.

This is one of the reasons at the core why SMEs in this region are handicapped from becoming large corporations. Add to that the complexities that, in many cases, arise from the background, culture and education level of an owner or a manager, stymieing progress of the company. Many SMEs stagnate at one level due to avoidable mistakes, as most internal challenges exist due to flawed top management practices and conduct within the business.

Owners or managers need to be rehabilitated, which is the first and most important step in building strong, growth-focused SMEs.

Quality of service

Furthermore, another cause of internal challenges is that most SMEs in the UAE are service-oriented. This means that, in order to succeed, service-based SMEs should provide good (if not good, then reasonable) level of service to their customers.

This in turn, requires trained individuals. In most cases, an owner or a manager is unable to provide such training, as costs significantly increase when hiring trained employees. A majority of owners try doing business without investing more than the minimum requirement, and which reflects

badly on delivered services.

A bigger challenge stems from service businesses: selling services that are intangible, thus dictating longer sales cycles, which are more accentuated when there is a lack of track record and credibility, especially in the case of a newly established business. Longer sales cycles affect a business owner financially and emotionally, and have a negative impact on the passion factor, expectations and performance. This is an important issue that is not addressed in the big picture.

Competition

As a global business hub, Dubai constantly attracts many entrepreneurs from around the world; this in turn results in fierce competition in the market. Only the best will survive, depending upon business understandings of an owner, practices established in place and levels of service delivery of any company that meets the same requirement. However, most consumers will refer to price as the main comparison among goods and services, a factor that could challenge a new SME business.

I have seen a number of entrepreneurs in Dubai that have set up their businesses without (if any) enough market research, business planning, feasibility studies, evaluation of core competencies or differentiating factors to take on competition.

Many of these businesses do not even understand market needs, demands and consumer behaviour.

Many of these businesses do not even understand market needs, demands and consumer behaviour.

In most cases, owners open shops based on their beliefs and intuition, until they are struck by reality.

Solutions

Business owners must undertake certain procedures in order to succeed. I would suggest a few to begin with, and these include establishing a reliable source to receive accurate data on the various aspects of the market. This data can be used to make business plans and chart out feasibility studies, marketing and sales plans. Secondly, a credit-reporting system should be created where suppliers and customers can be checked out and evaluated based on track record and performance.

Thirdly, any business has to involve its consumer. Allow experiences to be shared with consumers through an open forum with feedback that can be displayed prominently. Fourthly, standardisation, certification and insurance will help bring accountability to a business, by being responsible for the goods and services sold. This step would also increase the need to be consistent with quality.

Giving SMEs a boost to steady, upward growth requires due importance for the consumer, in terms of value delivered, as well as improving the quality of service of the SME. We must uplift all stakeholders in order to make the SME sector the most important engine of growth our economy.

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May - June 2013

Personality Development

The science of happiness Prof. Christopher Abraham explores how happiness relates to professional and personal success.

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sychological studies have primarily concentrated on human failing and pathology. In fact, the idea of psychotherapy, a concept realised by Sigmund Freud, is based on the fact that human beings are distressed and need to be calm. The practitioners that followed Freud developed a model that seemed to portray humans are mechanical and passive, being shaped by situations surrounding them.

However, this view was soon altered when eminent psychologist Martin Seligman, in 1998, urged psychology professionals to set about the healing process with understanding and building strong qualities. Seligman is credited with

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sowing the seeds of happiness studies and positive psychology. He went on to be the world’s leading scholar on optimism.

Seligman’s idea quickly caught on, with the Gallup organisation founding the Gallup Positive Psychology Institute to fund research on the subject. This provided the foundation of the Gallup Positive Psychology Summit, which was globally recognised within two years of it being held.

So what really makes us happy?

How can we become happier? And is happiness sustainable?

Current cutting edge research on studying happiness indicates that our individual level of happiness springs from three primary sources:

Our genetic set point

Fifty per cent of our happiness derives from a genetically determined set point, contend leading researchers like Professor Sonja Lyubomirsky from the University of California.

The set point for happiness is similar to the set point for weight.

Some people are blessed with skinny dispositions: Even when they're not trying, they easily maintain their weight. By contrast, others have to work hard to keep their weight at optimum levels, and the moment they relax their dietary and exercise regime, they gain back all the weight. So those of us with low happiness set points will have to work harder to achieve and maintain happiness, while

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Personality Development

Prof. Christopher Abraham holds three post graduate qualifications in business administration (marketing), human resources management and labour and administrative law, and has 24 years of professional experience in management consulting and management education in India, Canada, Singapore, and the UAE. Currently he is the senior vice president and head of the Dubai campus at SP Jain School of Global Management. His areas of competence are corporate strategy, innovation, trends, positive organisational behaviour and the science of happiness.

those of us with high set points will find it easier to be happy under similar conditions.

Our life circumstances

"Life circumstances" determine a scant 10 per cent of our happiness, Prof. Lyubomirsky continues: “Only about 10 per cent of the variance in our happiness levels is explained by differences in life circumstances or situations-that is, whether we are rich or poor, healthy or unhealthy, beautiful or plain, married or divorced, etc. If with a magic wand we could put a group of people into the same set of circumstances (same house, same spouse, same place of birth, same face, and same aches and pains), the differences in their happiness levels would be reduced by a measly 10 per cent.”

Prof. Lyubomirsky notes in her book The How of Happiness that this finding runs contrary to many of our efforts to obtain happiness: “One of the great ironies of our quest to become happier is that so many of us focus on changing the circumstances of our lives in the misguided hope that those changes will deliver happiness...

An impressive body of research now shows that trying to be happy by changing our life situations ultimately will not work. Although we may achieve temporary boosts in well-being by moving to new parts of the country or the world, securing raises, or changing our appearances, such boosts are unlikely to be long-lasting.”

Most experts agree that the

The set point for happiness is similar to the set

point for weight. Some people are blessed with skinny dispositions, and they easily maintain wait without effort. By contrast, others have to work hard to keep their weight at optimum levels, and they re-gain once they relax their plan. Thus, people have to work harde to achieve and maintain happiness. human beings immediately adapt to positive circumstantial changes in the hope of bringing about happiness in their lives. Although the circumstances change, it may

A set of evidence-based happiness-increasing strategies whose practice is supported by scientific research include: 1. Expressing gratitude 2. Cultivating optimism 3. Avoiding over-thinking and social comparison 4. Practising acts of kindness 5. Nurturing social relationships 6. Developing strategies for coping 7. Learning to forgive 8. Increasing flow experiences 9. Savouring life’s joys 10. Committing to your goals 11. Practising religion and spirituality 12. Taking care of your body 13. Meditation 14. Physical activity 15. Acting like a happy person

not be a source of long-term happiness, as they will eventually be taken for granted.

Intentional activities

The remaining 40 per cent of our happiness is determined by our behaviour—intentional activities referred to as “happiness strategies.” This is the core of the research of leading professionals in this field which advocates increasing and sustaining happiness through intentional activities.

Genuinely happy people make things happen, and don’t just sit around being content. They learn more, achieve more and control their thoughts and feelings. If an unhappy person wants to experience interest, enthusiasm, contentment, peace and joy, he or she can make it happen by learning the habits of a happy person.

Scientific research supports the use of strategies such as expressing gratitude, acts of kindness, nurturing relationships, committing to goals, among others.

Researchers describe precisely what these somewhat generic terms mean in this context and provide a rationale for why they work and explore what they might look like in practice. They do not say that these are the only meaningful happiness strategies, but separately they meet standards for being “evidenced-based,” and together they constitute a list sufficiently broad “so that every individual could find a set right for him or her.”

The science of happiness is here to stay with the single focus of making the world a better place.

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May - June 2013

Leadership

Your employees need caring Michael Tolan explains how adoption of wellness policies in companies can increase productivity.

R

ecently I was daydreaming in the back of a taxi, as I was being whisked from one speaking engagement to the next, and had the opportunity to observe in the heavy traffic, hundreds of drivers during my journey of 30 minutes.

I watched, as they all seemed to be mindful of their mission of the day, the deals that were cooking, the tasks that had to be done, the e-mails they needed to write.

Most of them were in typical fashion, on the phone, and few of them, it seemed, displayed any sign

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that they were happy.

I wondered after witnessing so many people, from various walks of life and rank, if any of them were working in a healthy environment that would support them as human beings with an assortment of needs.

This reminded me of a recent epidemic within companies, especially in Europe and the US, that has been referred to as “Burn Out syndrome.�

In short, Burn Out syndrome has affected tens

of thousands of executives and workers, leaving them virtually empty of purpose or passion. This is often a direct road to depression and furthermore disease caused by the effects of disempowerment.

There seems to be no single industry, today, that is immune to this career quicksand, and many leaders are waking up to this fact.

Some have started to understand the importance of looking after the welfare of their troops.

If you think about it, this is smart medicine for any company; after all, if most people spend

May - June 2013

Robust RAK

Leadership

more time at work than they do with their families or private life, it does make sense to ask the bigger question: “If my team members feel empowered, healthier and more vital as people, is there a chance they might add more value to the company?”

In some leading organisations, the answer is a resounding yes.

Wellness or well being practices is more than a buzz word these days. It has become a multi-billion dollar industry worldwide. It has also improved the lifestyles of many who had previously ignored their own health, both physically and emotionally, due to a misguided idea that there was not enough time in the day to take care of oneself.

This is why leaders that embrace the concept of peak performance encourage and develop wellness benefits within their own organisations.

All wellness programmes do not require expensive investments in order to communicate and make available supportive culture that sends a message to its employees that the company cares.

Often good communication to the staff, for example advising them to hydrate during the day, or things like the HR department bringing in a dietician for free consultations with staff members and offering daily meditation training will go far to communicate that a company encourages its team members to look and feel healthier, more relaxed and good about themselves.

One company worth mentioning in this connection is Google. Google actually engages a director of fun, installs playrooms in their offices with facilities, such as ping pong and gyms to support wellness of mind to reap more creativity for its staff, and as a result, more loyalty.

According to mind-body medicine pioneer Dr. Deepak Chopra, whose centre I have visited on two occasions, wellness starts with a presence of mind, and that the mind and body are intrinsically connected. “When the mind is at peace and relaxed, we experience ease, but when there is no peaceful mindfulness, and we are scattered and stressed, this will lead often

Michael J. Tolan is a speaker, writer and corporate mentor and board advisor to several organisations.

He is the creator of Mission I’m Possible series of motivational workshops through FirePowerLeadership.com and is the Chief Inspirational Officer of the World Class Academy of Excellence (Follow him on Twitter mtolan@worldclassgroup).

to disease if not balanced and harmony is restored.”

Today, the ancient wisdom of the Chinese and the Vedic principles of India are being revisited and adopted by wellness centres around the world.

Why has this emerged now?

Our new shiny, fast talking, fast paced, fast food, fast everything lifestyle is not giving our mind and body what our very own cell phones require almost daily - a recharge.

When the mind is at peace and relaxed, we experience ease, but when there is no peaceful mindfulness, and we are scattered and stressed, this will lead often to disease if not balanced and harmony is restored.

Many of these businesses do not even understand market needs, demands and consumer behaviour.

Is there a feeling of tranquility one can envision and experience by seeing and inhaling the healing scents and floating candles in a pool of water, or does sipping a freshly made herbal tea call to the spirit a sigh of relaxation almost instantly while listening to waterfalls?

Smart leaders might arm their HR departments and managers with new tools that could empower their staff. Wellness policies have been adopted by some top companies overseas, but have yet to trickle down to small and medium size companies in the MENA region.

My advice is to stop following and start leading. Create a company membership for your team in the gym. Bring in a dietician for free to have one to one consultation with your team. Offer a free morning of meditation or yoga even if it is only once a week.

And, now, imagine seeing one of your people looking haggard and unhappy at work, and walking up to them and saying: “Sorry, you have to leave the office now.

You are going off to the spa for the next three hours for pampering session.”

It might be possible that your people might just love you and your company more because they never met anyone who cared as much. Wellness delivery is all about caring. The result - less absentees, more creativity, more productivity, and more rumours in the market that your company is a great place to work.

Get Well-Ness Soon.

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Robust RAK May - June 2013

Leadership

Give the job your best shot!

Tired of the routine office work? Anesh Jagtiani on how to overcome this barrier.

A

re you beginning to realise that life isn't much fun if you're not enjoying what you are doing 40 to 50 hours a week?

If so, you might have heard that the heart attack rate is 30 per cent higher on Monday mornings (Sunday mornings if you're in the

50

Middle East). And that working for someone you don't like can increase your risk of obesity by nearly 50 per cent?

Considering this, how important would it be for you to start learning to enjoy your job more? Pretty important I assume, so here are eight things you can

start doing today that will help.

Update your resume

Keep your resume updated, and always be on the market for a better opportunity. You might be wondering why we are offering this as advice to help you enjoy your job better.

May - June 2013

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Leadership

Anesh Jagtiani is the CEO of Empowering Leaders Group (M. E). He is a professional speaker and trainer. His leadership program helps managers motivate and retain their top people, improve their effectiveness in communication and maximise the bottom line of companies. He is also a TV anchor of a show called TOP GUNS on ZEE TV where he has interviewed the 12 most successful Indian entrepreneurs of UAE. He can be reached at anesh@elgme. com or www.elgme.com.

Doing this has a two-fold benefit: First, it will keep you from feeling trapped in your current job because you'll know that you always have options available elsewhere.

Second, the act of searching for work often helps you to appreciate the work that you already have more than if you weren't looking.

Enjoy your mornings

Your day is likely to get a lot better if you spend 10 to 15 minutes in the morning doing something that is important to you.

For example, if you have plans to get in better shape and you take care of it first thing in the morning, you'll have confidence that you've already "paid yourself" that day.

You'll feel less like your life is on hold for the sake of your job.

For best results, commit to this for 15 minutes every single morning and don't falter.

In fact, you might even want to use this 10 to 15 minutes in the morning to put together your resume.

Enroll in ‘four Wheels University’

The material, which you

listen to in the car on the way to work and on the way home, has a profound influence on your attitude both at work and at home.

You'll also be a lot more confident about yourself if you use the time in your car to educate yourself about something that is important to you.

Get some motivational or

Stress at work is inevitable, but it is a lot less threatening when you know that you could walk away from your job and still have 3 to 6 months to find a better one. inspirational CDs, which you can listen to (or perhaps even some recordings of your favorite comedians), and start committing your commute to work time to your own personal growth.

Avoid negative conversations

This will probably make the biggest difference in whether or not you enjoy or hate your job. Stop engaging yourself in conversations with people who do nothing but complain about what's going on at work.

People who complain are all over the place and you're going to run into them at any job, no matter how great their job within the company. These people will poison you with all kinds of negativity, and cause you to see only the bad side of your job.

As a general rule of thumb, make it a habit to walk away from any conversation that is not productive.

Emergency fund

Start putting away money into your savings account or a money market fund, and keep doing this until you have enough funds to

take care of your expenses for at least three to six months.

Stress at work is inevitable, but it is a lot less threatening when you know that you could walk away from your job and still have 3 to 6 months to find a better one.

Prove yourself

Start looking for more opportunities and work to improve your worth with both your coworkers and your superiors.

Sometimes all you have to do is ask, and you might be surprised at what kinds of opportunities arise from it. This will also help your employer to see you as a more viable asset to the company.

Positive relationships

In addition to avoiding the negative people at your workplace, find a few people who are doing something with their life and actually care about doing a great job. Take these people out to lunch and associate yourself with them, and eventually their positive attitude will rub off on you.

Start now

Even if you don't like your job and plan on doing something different in the future, start giving your best to it right now. No matter how much you dislike your job, you have to remember that the habits you're building are the same habits you'll take into your next job. So give yourself the best opportunity to be successful in everything that you do by giving your best, starting right now.

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Robust RAK May - June 2013

Social Media

Make your website easy to find Award-winning social media consultant and marketing strategist Farrukh Naeem addresses a few queries on SEO and social media marketing.

Q. I want to build a successful website for my business. What is SEO and at what stage should I worry about it?

A. SEO refers to Search Engine

Optimisation, which entails all activities aimed at making your website and its pages easier for search engines to find, index and show when people are looking for something online.

Search engines could use more than a hundred factors to decide which results will show up first on search engine result pages (SERPs) when someone types in a search query using keywords. The top results get the most traffic.

Some of these factors which influence your search engine visibility like keywords in your domain name, age of your domain name, a logical structure of your URLs, an easy to navigate and well planned site map, and the words your target audience might use to find what you offer must be taken into consideration before you start designing or laying out your website.

It is ideal to get your SEO specialist involved in the earliest stages of your website development - they can also give you valuable guidance in the most suitable platforms to use. A website built completely on Flash for example might be highly recommended by

SEO must start early in the website development process - even the choice of a domain name makes a difference in search engine results. In the above top search results for “movers in Dubai”, note the highlighted keywords in the domain names and page titles.

52

designers purely on visual appeal but might not be good idea for search engine traffic because such sites are harder for search engines to index and understand fully.

Q. Can I increase my website traffic without buying internet advertising and paying for clicks and traffic?

A. Yes, you can get hundreds and

thousands of visitors to a website without any paid ads for web traffic depending on the searches in your business category and the competition for these searches.

You can estimate the amount of traffic as well as competition in your market by using free or paid keyword tools for web search.

Keyword tools show you how many daily, monthly, yearly searches you can expect for related keywords and how many pages exist that are competing with those keywords.

Based on the search traffic predictions thus made, and the competition sized up, you can start to create content that caters to the searches while also looking for gaps in competition. According to the ‘long-tail’ theory of SEO, shorter terms are highly competitive and require excessive time and resources, while longer and specific queries have less competition and may yield faster results at a lower investment.

Social Media May - June 2013

Robust RAK

Social Media

images from websites that link back to the source page.

Your keywords and descriptions of the image should be used in the file name of the image, its ‘alt’ tag in the source code and, of course, captions help too. The ‘alt’ tags of images are seen as anchor text when images link to a page on your website, and can help search engines associate keywords and pages through image optimisation.

Search traffic accounts for most of the unpaid visits on websites - with well-planned SEO, you can get regular and free traffic to your website organically.

Q. How do I optimise my website text so that it shows up well in search engines?

A. The best content on the internet

is one that provides value to the reader or user. However, even some of the best content is not easily found if it is not optimised for search.

One of the most important elements of your content is the title tag, which describes what your page is about. It is shown as the blue link in a search result. Title tags should be unique for each page of your website and should contain the keywords that describe the content of the page as well as match the searches you are trying to target.

Try to keep your titles under 75 characters so that they are not cut off. Words in the beginning of the title tag (left) carry more weight than those at its end and, therefore, you should try and begin your titles with your keywords.

Filling in meta descriptions for all of your pages which have your page’s content summary and its keywords helps your search engine ranking - it also helps draw in a reader as this is what shows as a snippet of your page in the search results. Meta descriptions should be limited to 150 characters and should be unique for every page.

Search engines might choose to excerpt from other parts of the page too but having a description stacks the odds in your favour.

Heading, subheadings, bold

text which uses your targeted keywords, but always in context of naturally flowing text, also helps readers scan your page and search engines in weighing it for a given key word combination.

Using ‘anchor text’ in your web pages to link to other pages on your website can also be a useful device for SEO as well as user navigation. This is the text that has a hyperlink and it signals to a search engine what your linked page is about. There are many other ways to optimise your content for search, but these are some of the most important ones that you must not ignore.

Q. Do I need to pay attention to my website’s images for search engines?

Can images bring in traffic?

A. Yes. Images can be a very

valuable source of web traffic, specially with image sharing sites like Pinterest, which let users share

Q. Are there any practices that I should never engage in when doing SEO for my website? What are the risks of doing so?

A. Most sites in the world get a majority of their traffic through search engines. If your website is found violating the rules of a search engine, it could get penalised, could drop in ranking, and could display a warning in case of malware or suspicious scripts and programs installed in its code. In the worst case, your website could get banned and delisted from search engines, losing traffic and business.

Below are a few practices you should always stay away from, to avoid any search engine penalties or bans. Keyword stuff ing: Loading your source code and content with excessive amount of keywords works against you. Use keywords that describe the content of the page.

Duplicate content: Copied content or scraped content which is taken from existing web pages can get your pages flagged as duplicate results. Use fresh, original content.

Page titles and description tags are used by search engines to determine the relevance of a web page to keywords in the search query - they also help users decide which website they would like to visit.

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RESEARCH

WORDS

ENGAGE

FRESH

Cq

Cr

Cw

Ce

Cf

SPEED

URLS

As

Au

Are URLs short & contain meaningful keywords to page topics?

Does site load quickly?

Can search engines easily "crawl" pages on site?

Spam techniques may cause ranking penalty or ban.

VIOLATIONS

CRAWL

Ac

ARCHITECTURE

Hh

Do headlines and subheads use header tags with relevant keywords?

Hd

HEADERS

Do meta description tags DESCRIPTION describe what pages are about?

Ht

Do HTML title tags contain keywords relevant to page topics?

Are pages fresh & about "hot" topics?

Do visitors spend time reading or "bounce" away quickly?

Do pages use words & phrases you hope they'll be found for?

Have you researched the keywords people may use to find your content?

Are pages well written & have substantial quality content?

TITLES

HTML

QUALITY

CONTENT

These elements are in the direct control of the publisher.

ON THE PAGE SEO RANKING FACTORS

Below, some major factors or "signals" you should seek to have.

reward pages with the right combination of ranking factors.

to the uninitiated. But there's a science to it. Search engines

Search engine optimization — SEO — seems likes alchemy

THE PERIODIC TABLE OF SEO RANKING FACTORS

Vs

Vt

HTML +3

+3

ARCHITECTURE

LINKS +3

+2

SOCIAL

OFF THE PAGE SEO TRUST +3

+3

PERSONAL

+3

Titles +2

Crawl +1

Quality +3

+2

+2

+2

Speed +1

Text

URLs

Numbers

Authority

STUFFING

THIN

Quality

Thin

History

+1

-1

-3

-3

Country

Vh

-1

Written By:

Do you excessively use words you want pages to be found for?

Is content "thin" or "shallow" & lacking substance?

Cloaking

-1

Vc

Vh

Link Spam

Vl

Paid Links

+1

Social

-3

Ps

History

Blocking

HISTORY

AUTHORITY

SHARES

REPUTATION

NUMBER

TEXT

QUALITY

SOCIAL

HISTORY

LOCALITY

COUNTRY

What do your friends think of the site?

Does someone regularly visit the site? Or "liked" it?

What city or local area is someone located in?

What country is someone located in?

Has site or its domain been around a long time, operating in same way?

Do links, shares & other factors make site a trusted authority?

Do many share your content on social networks?

Do those respected on social networks share your content?

Do many links point at your web pages?

Do links pointing at pages use words you hope they'll be found for?

Are links from trusted, quality or respected web sites?

Vl

Vp

Bp

Bt

LINK SPAM

PAID LINKS

BLOCKING

BLOCKING

Copyright Third Door Media

Have you created many links by spamming blogs, forums or other places?

Have you purchased links in hopes of better rankings?

Has someone blocked your site from their search results?

Have many people blocked your site from search results?

If searchers "block" site, hurts both trust & personalization.

BLOCKING

Ps

Ph

Pl

Pc

PERSONAL

Th

Ta

TRUST

Ss

Sr

SOCIAL

Ln

Lt

Lq

LINKS

Elements influenced by readers, visitors & other publishers.

OFF THE PAGE SEO RANKING FACTORS

Learn More: HTTP://SELND.COM/SEOTABLE

Do you show search engines different pages than humans?

Do colors or design "hide" words you want pages to be found for?

Blocking

Design By:

CLOAKING

HIDDEN

+2

Ph

Locality

+3

Bt Bp

-1

BLOCKING

Negative "Violation" and "Blocking" factors harm your chances.

rankings. Several favorable factors increase odds of success.

1 (weakest) to 3 (strongest). No single factor guarantees top

Stuffing

Hidden

Shares

Some factors influence more than others, which we've weighted

FACTORS WORK TOGETHER

Headers

+1

Vt Vs Vc Vp

-2

VIOLATIONS

Fresh

Cf

Engage

Ce

Words

+1

Description

Cw Hh Au Ln

Research

+1

Reputation

Cr Hd As Lt Ss Th Pl

Quality

Cq Ht Ac Lq Sr Ta Pc

+3

CONTENT

ON THE PAGE SEO

May - June 2013

Robust RAK

Social Media

Farrukh Naeem is a digital strategist and social media consultant based in Abu Dhabi, UAE. His marketing blog (copywriterjournalist.com) has a readership across 140 countries and his tweets (@ farrukhnaeem) are followed by more than 11000 people worldwide. Farrukh helps SMEs and individuals build and grow their influence online using social media and online marketing.

SEO refers to Search Engine Optimisation, which entails all activities aimed at making your website and its pages easier for search engines to find, index and show when people are looking for something online.

Search engines have dedicated image search facilities. But if your images are well optimised for SEO, these could also come up high in text searches.

Paid links or link farms: Search engines can identify and track down unnatural links, and rank down your website. Earn your links with useful content.

Redirects: Also known as

shadow domains, these are deceptive domains that try to trick users and search engines into clicking and arriving at a site or page.

Link exchanges: Link exchanges

do not add value to your website and linking out to the wrong sites could be counterproductive.

You can promote your pages by linking them on your other internet properties including social networks, blogs, video descriptions and press releases.

Here are some useful links for SEO guidance: Google’s SEO starter guide (PDF Download): http://bit.ly/ SEOGuidebyGoogle

Hubspot’s SEO Marketing Hub (Free articles, webinars and e-book) http://bit.ly/SEObyHubSpot SEOMOZ’s Beginners Guide to SEO (online chapters and PDFs): http://mz.cm/SEOMOZGuide

Social media networks can be a powerful source for legitimate high quality, traffic pulling inbound links to spread your website content and bring in new and repeat visitors without any paid advertising.

55

CELEBRATING THE SUCCESS OF INDIAN

ENTREPRENEURSHIP AND

CORPORATE LEADERSHIP

www.topgunsworld.com HEADLINE SPONSOR

OFFICIAL RADIO PARTNER

PRESENTED BY

OFFICIAL LEADERSHIP MAGAZINE

POWERED BY

INITIATIVE BY

S U C C E S S I S A D E S T I N AT I O N

H AV E YO U A R R I V E D ?

CORPORATE

LIFESTYLE

WATCHES AUTOMOBILES DESIGNER JEWELLERY BOUTIQUE REAL ESTATE GADGETS EXOTIC DESTINATIONS FINE DINING

Robust RAK May - June 2013

Corporate Lifestyle

The new Porche Cayman comes to UAE P

orsche Centre Abu Dhabi, Ali & Sons Co., as well as Porsche Centre Dubai, Al Nabooda Automobiles, revealed the new generation Porsche Cayman at exclusive evening receptions in both cities.

The third generation Cayman has changed dramatically. It is lower and longer, lighter and faster, more efficient and more powerful than ever. A longer wheelbase, wider track and larger wheels enhance the driving performance of the mid-engine sports car. The new Cayman is – after the 911 Carrera and Boxster – the third sports car model line from Porsche to feature innovative lightweight body design. The new generation is up to 30 kg lighter, depending on the specific model and equipment, and consumes up

to 15 per cent less fuel per 100 km than the previous model despite higher engine performance.

Featuring a new lighter design and powered by a 2.7-litre flat-six cylinder engine, the new Cayman produces 275 horsepower. It accelerates from zero to 100 km/h in 5.4 seconds, depending on the equipment, and reaches a top speed of 266 km/h. Its NEDC fuel consumption is 7.7 l/100 km when equipped with Porsche Doppelkupplungsgetriebe (PDK).

Its bigger sibling, the Cayman S makes use of a 3.4-litre naturally aspirated flat-six cylinder engine for an output of 325 horsepower.

Acceleration time from a standstill to 100 km/h time is 4.7 seconds with a top speed of 283 km/h. The NEDC fuel consumption value is 8.0 l/100 km with PDK.

Cayman AED 200,800

58

Aesthetically, the sports coupé stays true to its heritage. It has been redesigned to become even more distinctive. The new model features an extended wheelbase with shorter overhangs. The standard 18 and 19-inch Cayman wheels give it not only a sportier appeal but also better lateral stability and handling properties.

The car’s styling is marked by precise lines and razor-sharp sculpted edges. They emphasise the car’s low, extended silhouette with the windscreen shifted forward and the roof line that reaches far back. Typical of the more advanced styling is the shoulder line, which runs from the wings towards the rear side panels. The door mirrors are newly positioned near the top shoulder. Especially expressive characteristic are the dynamic recesses in the doors, which guide induction air into the distinctive air scoops on the rear side panels and then directly to the engine.

From the front end, the new Cayman is marked by its dominant cooling air inlets, which increase in size towards the sides of the car. Integrated in them are the round front lights with fourpoint daytime running lights or position lights – an unmistakable identifying feature of the new Cayman. Just as unique to the new generation of the sport coupé are the large, low rear lid made of aluminium and the rear section with its wrap-around edges. At the upper end of the rear window, an LED brake light spanning the entire window width warns traffic behind.

Mounted directly to the rear lid is the thin blade of the rear spoiler, which – in contrast to that of the Boxster – is higher and deploys at a steeper angle.

The new Porsche Cayman is retailed at 200,800 AED whereas the Cayman S is being sold at 227,300 AED.

A total of 800 invited guests were invited to the unveiling of the completely redeveloped two-seater sports coupé.

May - June 2013

Robust RAK

Corporate Lifestyle

And, the Samsung TV get smarter!

S

amsung Electronics Co., Ltd has launched its 2013 Samsung Smart TV lineup that continues to push the boundaries of technology, with larger screen sizes and superior picture quality. The new F7500 and F8000 LED TVs are set to simplify how consumers search for and discover their preferred content, while raising the bar in picture quality, allowing them to enjoy a seamless, integrated and immersive entertainment experience.

Vinod Nair, General Manager TV Business, Samsung Gulf Electronics, said: “With the launch of our new range of SMART TVs in the Gulf, we are bringing a more immersive and intuitive TV experience to our consumers in the region, and continuing our commitment to introduce technology that not only enriches, but simplifies consumers’ lives. The F7500 and F8000 LED TVs offer more intuitive features, endless connectivity and content options, and larger screen sizes with trueto-life picture quality. Consumers can now enjoy the ultimate home entertainment experience, richer and easier than ever before.”

The 2013 Smart TV lineup represents Samsung’s sixth generation of Smart TVs. Highlights of the 2013 features include a redesigned Samsung Smart Hub that offers five dynamic menu panels to help consumers manage and navigate different types of content. The Smart TV’s also offer brighter, more vibrant color. The Smart Evolution Kit gives owners of flagship 2012 Samsung TVs the opportunity to update their models with some of the latest features from 2013 without having to buy a new set. A quad-core CPU enables quick app launching, web browsing and multi-tasking. The Smart View feature lets consumers move content seamlessly from the TV to connected devices and back in real-time, so users never miss a moment of their favorite shows using AllShare. Advanced Smart Interaction allows the user to use everyday language and casual gestures to control the TV.

Personalised viewing content Samsung’s redesigned Smart Hub makes it easier for consumers to discover content. The easy-tonavigate interface enables content to be managed from one central location and organises it into five

dynamic panels. These panels include:

The F8000 series comes in size classes ranging from 46-inch to 75-inch models and the F7500 series, which is available in 46-inch, 55-inch and 60-inch models. The F series offers cutting-edge technologies that deliver more vibrant and richer colors, higher contrasts and a brighter picture quality than ever before. In addition to the Micro Dimming Ultimate technology, a slim bezel and a quad-core processor lets users toggle between apps, online services and on-air TV quickly and easily without missing a moment of their favorite entertainment.

Samsung’s new Smart TVs are now available in all major electronics stores across the UAE and prices start from AED 5,099 up to AED 12,999.

UHD TV – The Highest Resolution on the Largest Screen Samsung’s is also launching the S9 UHD TV, which represents the largest screen in home entertainment viewing with brilliant picture quality in ultra-HD resolution. The S9 comes complete with features to ensure the best picture quality possible regardless of video source. Samsung’s proprietary up-scaling engine can up-convert HD or Full-HD to UHDlevel picture quality by restoring detail information to create greater precision and real-life picture quality.

With Samsung’s Precision Black Pro technology, the S9 delivers deep, real blacks as well as pure vivacious whites. It combines an extremely high contrast ratio and Ultimate Dimming control functionality – which utilises hundreds blocks of LEDs and precise BLU control – to deliver sharp resolutions previously unseen on large format displays.

The S9 UHD TV is available for pre-booking at a price of AED 139,999.

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Robust RAK February May - June - March 2013 2013

Corporate Lifestyle

The Pershing CBF S

porty and modern, the Pershing Chronograph collection by Parmigiani Fleurier provides the perfect base for showing off the symbolic codes of the Confederação Brasileira de Futebo (CBF).

The men's model features a titanium case and a choice of a white gold or rose gold bezel. The dial showcases the three colours of the CBF- gold, blue and green- each used in perfect harmony.

The intense blue provides the background colour, on top of the "Côtes de Genève" guilloche worked surface. Gold is used to highlight the two chronograph hands, usually so discreet. Green is used in the greatest symbol of Brazil's passion for football: victory stars to commemorate as many world cups won by the team.

The new Pershing CBF line also boasts a model for women. A titanium case is complemented by a magnificent jewel-set rose gold bezel, giving an elegant feminine touch which is so rare on a sports watch.

The white mother of pearl dial is enhanced with rose gold numerals and indexes. The dark blue of the CBF is used to pick out the contour of the javelin-shaped hands, and the five green stars are also featured.

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Robust RAK May - June 2013

Book Review

Books to spice your business!

Sajith Ansar will review, recommend books that impacted him the most and explains why you must consider reading.

Rework

Jason fried and David Hansson

R

ework is a thought provoking book that turns many myths of business upside down. Its a manifesto for doing business with your heart and becomes even more relevant in the post recession model of entrepreneurship. This is an extremely enjoyable book written from the heart by the founders of 37signals. Its one of those rare business books that you will probably smile and grin while reading. Its a book that rolls a hand grenade gently into the board room and explodes the typical. Within its pages are

62

nuggets of wisdom not written by academicians nor research specialists but sharing of learnings from entrepreneurs who have grown a start up into one of the fastest growing firms in the world and still run in with passion, humility and fun.

The concepts shared makes you stop and think and radical ideas are disseminated at every page.

Chapters share ideas that challenge and implore you to stop planning, avoid getting caught in the quest for growth for the sake of growth, questions the need for

workaholics, asks you to avoid investors and outside money, teaches you to stay lean always, tells you not to try and make the product perfect and settle for good enough and many more such compelling arguments.

Rework is one of those rare gems that you chance upon like a good friend who shakes you up from your daily grind and leaves you thinking. Seth Godin couldn’t have said it better with his quote on the cover of the paperback “Ignore this book at your own peril!�. I concur.

May - June 2013

Robust RAK

Book Review

Sajith is the CEO and founder of Spice Holding, a multinational working with SMEs to grow their businesses using innovation. He has worked with over 1000 businesses around the world over the last decade. He is also a board member of TiE (The Indus Entrepreneurs) and reads voraciously devouring a new book almost every week.

Think and grow rich Napolean Hill

T

his is the Bible for every entrepreneur and the great grandfather of all motivational books. The original was written in 1937 but the laws of success outlined are timeless.

Think and grow rich is a culmination from a lifetime of research by Napolean Hill who dedicated his life unravelling the scienceof wealth. Andrew Carnegie, billionaire and philanthropist, inspired and initiated the idea and also opened doors for Napolean Hill to connect and study successful businessmen across America. This book is really the father to hundreds of modern day books on success that use the core idea from the findings of Napolean Hill as the core ingredient.

Think and grow rich explains every aspect and element that constitute success. From his conversations and observations of eminent billionaires of the time like Henry Ford and Thomas Alva Edison, he outlines and breaks down the science of wealth. The book touches upon every aspect that constitutes a mindset for wealth drawing constantly on examples and anecdotes.

Each of the chapters explains a principle and Hill peels away in detail every layer of success. The book delves into the softer aspects of the mind like your sixth sense, intuition, imagination and persistence. Hill throws light and inspires mindset shift, spurs you to understand the importance of a mastermind.

If one was to have a single motivational book in your library with the mindset for success and wealththis is it!

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Robust RAK May - June 2013

Events Calendar

Networking opportunities Important business events across the globe EVENTS IN UAE AIRPORT SHOW 2013 Date: - May 06 - 08, 2013 Venue: - Dubai International Exhibition Centre The Airport Show is a B2B event in the aviation industry providing the MENA region and Indian Subcontinent with the latest technologies and solutions from around the world. The Airport Show will be collocated with the Global Airport Leaders' Forum, a biennial gathering of high profile aviation regulators and civil aviation authorities (CAAs) from around the world addressing the major challenges in the industry. www.theairportshow.com PROJECT QATAR 2013 Date: - May 06 - 09, 2013 Venue: - Doha Exhibition Center, Qatar Project Qatar has entered the 10th edition; it's an International trade construction, building, environmental technology & materials exhibition. The event attracts key buyers and industry leaders looking for the most up-todate technology and state-of-the art equipment available on the market. www.projectqatar.com ARAB MEDIA FORUM Date: - Tuesday, May 14-15, 2013 Venue: - Grand Hyatt Dubai The Arab Media Forum is a flagship project of the Dubai Press Club to foster dialogue among Arab

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media professionals on subjects of topical relevance to the region.

Currently in its 10th year, the Arab Media Forum is regarded worldwide as a much-awaited calendar event by high caliber professionals including editorsin-chief, directors of TV and broadcasting channels, columnists, analysts and commentators, highprofile government officials, as well as academic professors and media students. www.arabmediaforum.ae 19TH GCC EGOVERNMENT AND ESERVICES CONFERENCE Date: - May 18-22, 2013 Venue: - The Ritz-Carlton, DIFC Marked as the largest eGovernment conference in the region, the 19th GCC eGovernment and eServices Conference aims to encourage innovation and elevate the standards of implementing a strong eGovernment framework to pave the way forward to global competitiveness.The conference aspires to leverage the diversity of global trends, challenges and opportunities for the GCC eGovernment structure to complement various aspects of digital society. Its agenda also aims to create a framework for developing eGovernment models and strategies that will improve efficiency, transparency and productivity. Attendees will discuss issues on eGovernment platforms and benchmarks, interoperable frameworks, private-public eCollaboration and eDefense for security and protection. www.datamatixgroup.com

PETROCHEM ARABIA 2013 Date: - May 19 - 21, 2013 Venue: - Dhahran International Exhibition Centre, Saudi Arabia Petrochem Arabia has established itself across the region as a major forum for the downstream sectors.

With over 100 exhibitors and 5000 visitors, the Petrochem Arabia exhibition is by far the largest downstream exhibition in the Kingdom and one of the largest in the Middle East. www.petrochem-arabia.com FUTURE BANK MIDDLE EAST 2013 Date: - May 14-15, 2013 Venue: - Dubai International Convention and Exhibition Centre Dubai World Trade Centre Future Bank Middle East is where the regionĂ­s banks come to develop and restructure the future of retail banking and banking operations.

Recent research into consumer behavior has shown that more and more customers are demanding more out of bank services and the banking experience.This shift in the way customers access, consume and manage banking services, coupled with technological innovation, is daring retail banks to ditch the traditional and refresh the banking experience. www.terrapinn.com IZDEHAR SME 2013 Date: - May 19 - 21, 2013 Venue: - Jeddah Hilton Hotel, Saudi Arabia Izdehar SME is the premier exhibition and conference

May - June 2013

Robust RAK

Events Calendar

Networking opportunities Important business events across the globe supporting small and medium sized enterprises (SMEs) in Saudi Arabia. The event will prove to be the arena for local business people, aspiring entrepreneurs, government agencies, finance and service companies, plus other stakeholders to meet, network and do business in a vibrant business environment. www.izdeharsme.com UAE COMPANIES 2020 VISION AND STRATEGY CONFERENCE Date: May 20, 2013 Venue: - The Ritz-Carlton, DIFC UAE Companies 2020 Vision and Strategy Conference aims to highlight the futuristic roadmap for 2020 business challenges and opportunities. The conference aspires to identify and support the optimistic outlook over the next five, 10, 15 and 20 years of key regions and nearby countries of the UAE. It further aims at developing sustainable strategies for emerging multinationals.This event is a valuable opportunity to meet and discuss important issues, network, and build contacts with the UAEĂ­s top businesses and their leaders. www.datamatixgroup.com MIDDLE EAST EVENT SHOW 2013 Date: - 21 - 23 May 2013 Venue: - Dubai International Exhibition Centre This is an event for the event industry itself. The Middle East Event Show 2013 is a route to market for MICE, event and

entertainment industry suppliers in the region. www.me-eventshow.com SAUDI ENERGY 2013 Date: - May 26 - 29, 2013 Venue: - Riyadh International Exhibition Centre, Saudi Arabia Saudi Energy is one of the largest and most specialized energy exhibitions in the region, covering all energy sector aspects from electricity generation and distribution to alternative and renewable energy technologies; modern lighting products and technologies; water and water resources management technologies; and HVAC. www.saudi-energy.com CITYSCAPE QATAR 2013 Date: - May 27 - 29, 2013 Venue: - Doha Exhibition Center, Qatar Cityscape Qatar is an event that focuses on real estate growth by providing a platform that will highlight high growth investment opportunities, showcase innovative products and underline sustainable developments. Cityscape Qatar serves as a platform to bring together international, regional and local investors, architects and designers, real estate developers, governmental authorities and senior executives involved in the design and construction of public and private real estate developments from Qatar and internationally. www.cityscapeqatar.com

WELLNESS & SPAS MIDDLE EAST 2013 Date: - May 28 - 30, 2013 Venue: - Dubai International Exhibition Centre Beautyworld Middle East is a representation of the global beauty products, hair, fragrances and well-being industries for the wider Middle East region and continues to provide a very optimistic outlook to those who shape and help evolve this vibrant and colourful market. www.wellnessandspas.com HARDWARE & BUILDING MATERIALS DUBAI 2013 Date: - May 28 - 30, 2013 Venue: - Dubai International Exhibition Centre This event is a sourcing platform for businesses looking to sell to the growing consumer markets in the region. www.globalsources.com HOSPITAL BUILD & INFRASTRUCTURE MIDDLE EAST 2013 Date: - June 03 - 05, 2013 Venue: - Dubai International Exhibition Centre Hospital Build & Infrastructure is a global business-to-business platform dedicated to bringing together investors, commissioners, backers and managers of healthcare-related building projects with key players in planning, design, construction, operations, management, supply and refurbishment. www.globalsources.com

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Robust RAK

May - June 2013

Column

Solving the cash flow riddle Utpal Bhattacharya on why a good accountant is so dear for an SME that aspires to succeed.

R

ecently, I was sitting with a friend, an entrepreneur and a smart businessman at that. I had done some business with him, and he owed me some consultancy money. But his problem was that he could not pay me on time, as he was not receiving his money on time: the blame goes to Dubai’s credit cycle, which can become annoying at times. This friend showed me his books, and I could see that most of his money was due in the next two months, while he had to pay significantly large amounts to creditors immediately. There was a clear mismatch, and banks had already refused to fund him on his cash flow, just because he was a small business.

Both of us knew that he was in trouble, as his cheques would start bouncing; and not long after that creditors would be queuing up outside his door, while some initiate police and court action.

What was the way out from here?

On the retrospective assessment, he should have been more careful. He should have appointed an adroit accountant who would have cautioned him to act before it was too late. A highly skilled accountant would have been able to advise him a way out of trouble, as his problem area was not more than three months: that kind of time is not too difficult to purchase from nervous creditors.

However, my friend had saved money on his accountant, and that was the beginning of his

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problems. Among some of his basic flaws, which I could make out, were that he had not prioritised his payments, pre-paid certain accounts and did not give much thought to reducing his interest payout to individual lenders.

My friend is no exception to bad practices in cash flow management. In fact, more than 60 per cent of new businesses do not survive over six years, and one of the primary reasons for failures is bad management of cash flow.

According to Les Masonson, author of Cash, Cash, Cash: The Three Principles of Business Survival and Success, the best way to keep a business going is by improving collection, not delaying in depositing cheques and keeping a strict accounts receivable policy.

“Getting the money from customers sooner, paying bills at the last possible moment, concentrating money to a single bank account, managing accounts payable, accounts receivable and inventory more effectively, and squeezing every penny out of your daily business," Masonson suggested.

When I told my friend about Masonson, he said: “All that is fine for the future. But, what should I do now?”

I advised him: “Try cutting a deal with all creditors. It will not only buy you some time, but your creditors will also feel that you are not closing down and trying to escape.”

It is very important for small

Summing up

businesses to give a feeling of confidence to creditors, and if need be sit across the table and cut a deal, promising to pay in installments, while offering to do more business.

I told my friend to start the practice with me. So, he paid me my dues, albeit 50 per cent. A quarter was to be paid the next month and the rest settled the following month. I came away happier and promised to keep servicing him. He has since been quite successful in negotiating with his creditors, paying everybody a part of their dues, while keeping them engaged. He has also, and very correctly to his credit, hired a skilled accountant: although that might mean that my dues will not be pre-paid, but on time, as promised.

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