Robust RAK issue 15 by SPI Publishing

Issue: 15â&#x201D;&#x201A;July-August 2016 facebook.com/RobustRak www.robustrak.com

THE VOICE OF RAK BUSINESS COMMUNITY

STABLE RATINGS BOOST BUSINESS CONFIDENCE

SMART CITY NOT A TREND, BUT A JOURNEY

CERAMICS IN FASHION! H.E. Engr. Sheikh Salem bin Sultan bin Saqr Al Qasimi, Abdallah Massaad Ras AlExecutive Khaimah Airport RAK Ceramics,Chairman, Group Chief Officer

Published by

Corporate Banking Partner

Sole Automotive Partner

To send in your entries, visit www.innovationsummit.ae

Disruptive Innovator Awards 2016

DISRUPTIVE INNOVATOR AWARDS 2016

Acknowledging innovators who want to change the world! A shout out to innovators who think outside the box. Can your idea, process, software or app make the world a better place?

NOW

Award Categories Best Innovation in Sustainability

Best Innovation in Healthcare

Best Innovation in Education

Best Innovation for Public Good

Best Innovation for Business Growth

Best Innovation in Retail

Who can participate? Any individual or company, based in the UAE, with a commercially viable innovation, is eligible for participation �

How we judge: The awards will be judged by a jury for the strength of concept, user interface, user experience & business model Each category will have two winners The Innovator Awards will be conferred at the Global Innovation Summit on 21st September 2016. �

�

Terms and conditions apply Each participant is eligible to submit a maximum of two entries. Entries should be submitted only through www.innovationsummit.ae Closing date for entries is 28th August, 2016. The decision of the jury will be final.

Disruptive Innovator Awards is part of Global Innovation Summit 2016 September 21, 2016 - Atlantis the Palm, Dubai

CONTENTS 16 Ceramics in fashion!

Abdallah Massaad, RAK Ceramics, Group Chief Executive Officer Ceramics today has become a design-orientated, fashion-led product, with fast changing trends. Fashion conscious customers no longer want to wait 5-10 years to replace their tiles or sanitaryware, but change them more regularly to keep their interiors and exteriors looking fresh and modern.

18 Nielsen: RAK offers a better quality of life

First in-depth research into the quality of life of Ras Al Khaimah residents commissioned by the Ras Al Khaimah Tourism Development Authority. Overall quality of life in Ras Al Khaimah scores 72 out of a possible 100.

20 Seawings Lifestyle offers RAK

staycation bundles

Seawings Lifestyle, the premium seaplane operator on the Arabian Peninsula, has partnered with Ras Al Khaimah Tourism Development Authority (TDA) and four luxury resorts in the emirate to welcome summer vacationers to the destination.

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CONTENTS 22

Innovation is the lifeblood of UAE SMEs

Beehive survey details out the differences between the SME innovation culture in the UAE and that in Silicon Valley.

24 Customer service amplifies brand values via social media

In today ís referral dominated consumerist world, it is an established fact that customer service is at the heart of business growth. Social media is now a part of life and is central to brand value creation.

Energy efficient smart cities are a reality in the making. A forwardthinking leader, Amr Salem, global managing director for smart cities, internet of everything, at Cisco explains in an interview, what involves building a smart city and how the networking giant plans to connect the world through smart cities.

38 Horizon 2020 : The

champions league for small, innovative European companies

Horizon 2020, a specific instrument for small and medium sized enterprises, aims to identity small companies with high innovation and strong growth potential.

26 IP Management for SMEs … 40 Cloud Best Practice Now is the right time

Essam Disi of Dubai SME outlines how best to manage their intangible assets - ranging from human capital and know-how to ideas, brands, designs and other intangible fruits of a company’s creative and innovative capacity.

28 Stable Ratings Boost

Business Confidence

Financial planning and control is being standardised across government departments and the government's consolidated entities. A new financial planning framework was put into place to standardise budgeting approaches.

Promotes Savings

The beauty of a cloud platform is that it runs core, standardized systems and processes, yet can host the functions your business needs to develop and integrate with your core systems.

42 Managed print services lower SME costs

Today the printing environment has become increasingly complex for the SME community. Managed Print Services (MPS) and document management practices have emerged as a key solution for the SME community which helps them across diverse verticals to focus on their core business.

32 Smart city not a trend, but a 45 Corporate Gadgets journey

For top executives, it’s all about style. In this section, we feature some new arrivals in the market that will elevate their power quotient.

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Issue: 15│July-August 2016 facebook.com/RobustRak www.robustrak.com

THE VOICE OF RAK BUSINESS COMMUNITY

STABLE RATINGS BOOST BUSINESS CONFIDENCE

SMART CITY NOT A TREND, BUT A JOURNEY

CERAMICS IN FASHION! H.E. Engr. Sheikh Salem bin Sultan bin Saqr Al Qasimi, Abdallah Massaad Ras AlExecutive Khaimah Airport RAK Ceramics,Chairman, Group Chief Officer

Published by

Corporate Banking Partner

Sole Automotive Partner

Earth Holding

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

Publisher's Note RAK continues apace on its growth path.

In collaboration with

SPI Group

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Publisher & CEO Shantanu A.P. Group Editor Sandeep Sharma Asst. Editor Jinal Chheda Strategic Advisor Badal Saboo Expert Contributors Craig Moore Bernd Reichert Dr. Ashraf Mahate Essam Disi Khaled Ismai Simon Howells DESIGN : Å3® Creations Web Developer Raj Shekar Reddy Designer Retheesh Viswanath Distribution Department Jerry P. Sam Editorial Enquiries & Contributions

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Fitch Ratings has affirmed Ras al Khaimah's LongTerm Foreign and Local Currency Issuer Default Ratings (IDRs) at 'A' with Stable Outlook. The ratings balance the benefits of Ras al Khaimah's membership of the UAE, a low debt/GDP ratio and solid fiscal performance against lingering weaknesses in data quality and the macro policy framework. Further, Fitch expects 4% growth per year in 2016 and 2017, driven by tourism, the export of construction materials, and activity within the Free Trade Zones. Saqr port tonnage rose 4.8%, reflecting mostly exports of construction aggregates; the new rock crusher and an expansion of Saqr port in 2017 could drive further growth. This assurance, coming from a well respected global agency, sets the growth oriented tone of our current issue of Robust RAK. In the tourism sector, its hotels portfolio outperformed and was significantly better than other UAE markets, while Ras Al Khaimah Tourism Development Authority and Thomas Cook Group announced a major cooperative marketing agreement aimed at promoting the emirate as a premier destination for European leisure tourism. Despite market headwinds on the tourism sector in the UAE, Ras Al Khaimah proved resilient by demonstrating RevPAR growth of 9.2% for Q1 2016. Ras Al Khaimah Tourism also revealed its new brand identity, which aims to re-position the destination and drive economic growth as a premier tourism destination. The best news for the emirate however, came from the manufacturing sector. Ashok Leyland committed to triple plant its capacity. The fourth largest bus manufacturer in the world with its state-of-the-art vehicle factory in RAK, is a joint venture between Ashok Leyland and the Ras Al Khaimah Investment Authority (RAKIA) and is said to be the only certified local bus factory in the UAE and GCC. Happy reading.

Shantanu AP Publisher SPI Group

Disclaimer

SPI Publishing has endeavoured to bring out a publication that is reliable and informative. This is true to the best of our knowledge. The opinions presented are those of individual writers and not necessarily endorsed by SPI Publishing. The content in this magazine is protected by copyright law and is copyright to SPI Publishing unless credited otherwise, and may not be copied, reproduced or republished for any commercial purpose or financial gain.

Robust RAK JULY â&#x20AC;&#x201D; AUGUST 2016

RAK NEWS

Thomas Cook and Ras Al Khaimah Tourism Development Authority sign strategic partnership

Ras Al Khaimah Tourism Development Authority and Thomas Cook Group have today announced a major cooperative marketing agreement aimed at promoting the emirate as a premier destination for European leisure tourism. Initially running from 1 March 28 - 2016 February 2017, the co-marketing partnership will help to raise awareness about Ras Al Khaimah in international markets and drive travel and tourism to the destination. A large proportion of the initiative, which will run simultaneously across the UK, Germany and Scandinavia (Norway, Denmark, Sweden & Finland), will be focused on the promotion of Ras Al Khaimah as a world-class tourism destination for authentic Arabian experiences. This will be marked by a high profile, co-branded marketing campaign that fully exploits the holiday

company's consumer and trade touch-points. It will include in-store promotions across Thomas Cook's retail estate, along with creative development and production by the Ras Al Khaimah Tourism Development Authority. The agreement will also include intensive travel agent training, product awareness support on international PR outlets and social media channels and dedicated pages with special offers hosted on both Thomas Cook's and Ras Al Khaimah Tourism Development Authority's websites. "We're happy to be partnering with Thomas Cook and working with one of the world's leading leisure travel groups in the world to promote Ras Al Khaimah", said Haitham Mattar, CEO of the Ras Al Khaimah Tourism Development Authority. "We're confident that this alliance will help spread the word about our Emirate's unique selling points, rich offerings and stunning natural surroundings, which appeal to a wide range of travellers across the globe, and strengthen our position as the best place to be for genuine Arabian experiences, great beach resorts and adventures." Thomas Cook's Group Head of Media & Partnerships, Stuart Adamson said: "We are very excited to be partnering with Ras Al Khaimah, leveraging the full strength of Thomas Cook as an omni-channel retailer. We are looking forward to delivering a fully integrated campaign promoting this premier Middle East destination to the millions of holiday makers that engage with us on our channels and beyond, across several markets."

Ras Al Khaimah Tourism Development Authority launches new brand Ras Al Khaimah rebrands to boost the tourism sector and drive visitor numbers - The emirate today revealed its new logo in line with supporting strategies to reposition Ras Al Khaimah on the global tourism stage Ras Al Khaimah Tourism Development Authority has today revealed its new brand identity, which aims to reposition the destination in line with its vision and revised strategy. The rebrand is set to drive economic growth and present Ras Al Khaimah as a premier tourism destination, showcasing the new logo via creative marketing campaigns to raise awareness about the emirate's new identity and positioning. Highlighting Ras Al Khaimah's key strengths, the rebrand focuses on the emirate's natural assets, luxurious indulgence, range of activities for different types of travellers, history and culture, and authentic Arabian heritage offering. With the aim to attract one million vistors by the end of 2018, the emirate plans to further diversify its world-class hotel portfolio, expand its routes, restore historical sites and enhance its digital platforms. The new Ras Al Khaimah emblem is a representation of the emirate's most iconic landmark: the Watch Tower. This symbol

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of heritage, rendered in a contemporary style, is immediately recognisable. Creating an instant connection between the brand and its visitors, the logo also aims to pay homage to Ras Al Khaimah's enduring history. Haitham Mattar, CEO of Ras Al Khaimah Tourism Development Authority said: "This is a groundbreaking move for us. Our new branding strategy and logo reflect the evolution of the destination, its vision for the future, as well as the authenticity which Ras Al Khaimah offers. It is our priority to enhance the destination and demonstrate its rich Arabian culture, heritage and traditions to a global audience." Ras Al Khaimah's new positioning underscores its unique offering for leisure and business travellers - whether seeking relaxation or adventure. The diversity of the land makes it a one-of-a-kind destination with desert, beaches and mountains all within close proximity, which is reflected in the new brand. The emirate will leverage its new brand by prioritising sustainable tourism, destination development, capacity building and partnerships with public and private companies.

JULY â&#x20AC;&#x201D; AUGUST 2016 Robust RAK

RAK NEWS

RAK Hospitality Asset Management Posts 16.4% RevPAR Growth in Q1 2016

Hotels portfolio outperformed the Ras Al Khaimah market and was significantly higher than other UAE markets RAK Hospitality Asset Management, the hotel asset management and advisory arm of RAK Hospitality Holding ("RAKHH"), an owner of a diverse portfolio of government owned hotels, hospitality and leisure assets in Ras Al Khaimah, today announced that its hotels under management, posted a record growth of %16.4 in RevPAR in Q2016 1. Rashad Saab, Head of Asset Management at RAK Hospitality Asset Management, attributes the growth to three main reasons. "Firstly, the tireless effort of the hotel operating teams in consistently delivering superior customer service has had a favourable impact on the top line of our hotels. Secondly, RAK Tourism Development Authority is driving considerable demand for our hotels from international feeder markets through targeted marketing campaigns and investment in enhancing the tourist proposition in Ras Al Khaimah. Thirdly, RAK Hospitality Asset Management, using its multi-disciplinary team, has implemented proactive asset management practices with the hotel operators, which are focused

around improving financial and operating performance as well as executing valueadding capital projects."

market dynamics in Ras Al Khaimah, and falls in line with the direction of regional governments to boost tourism through hotels, leisure and entertainment activities. For example, Ras Al Khaimah is seeking to attract 1m visitors by 2018, a target that RAK Tourism Development Authority, in close cooperation with its tourism stakeholders, is closing in on fast." RAK Hospitality Asset Management has a strong pipeline for 2016 with strategic objectives that include strengthening its existing hotel assets, overseeing multi-million dirham renovation projects at Hilton Ras Al Khaimah and Hilton Ras Al Khaimah Resort & Spa and extending its services to hotels and resort owners and developers across the UAE and wider GCC.

Strong Momentum amidst Positive Outlook for 2016 RAK Hospitality Asset Management has more than AED 2 billion in assets under management comprising four luxury, upper-upscale and upscale hotels in Ras Al Khaimah that together make up approximately %28 of the emirate's room inventory (1,453 rooms). The hotels are: Banyan Tree Al Wadi, Hilton Ras Al Khaimah Resort & Spa, Rixos Bab Al Bahr on Al Marjan Island, and Hilton Ras Al Khaimah which is currently under renovation and is expected to open in late 2016. Saab added: "Our portfolio of hotels demonstrated solid performance in Q2016 1 under the guidance of RAK Hospitality Asset Management. By applying our extensive knowledge of the hospitality sector and putting our proven investment philosophy into practice, we are laying the groundwork for what will be longer-term success." Saab continued: "The strategic plan for our portfolio is backed by healthy

Above Average Performance Commenting on these results, Yannis Anagnostakis, Chief Executive Officer at RAKHH said: "As we enter 2016, we are confident that we are on the right track to lasting success. Following the consolidation and refinancing of our four hotels in May 2015, our focus switched to ensuring operator engagement and alignment, a process that was led by RAK Hospitality Asset Management. I am proud of the results we have achieved so far, and %16.4 RevPAR growth for Q2016 1 is testament to the benefits of proactive asset management with a long term view. Additionally, when considering the year-to-date RevPAR growth of the overall RAK market, credit must be given to the RAK Tourism Development Authority which continues to support our hotels and the tourism sector in a very positive way." Despite market headwinds on the tourism sector in the UAE generally, Ras Al Khaimah proved resilient by demonstrating RevPAR growth of %9.2 for Q2016 1.

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Robust RAK JULY â&#x20AC;&#x201D; AUGUST 2016

RAK NEWS

Ras al Khaimah signs agreement with Cox & Kings to increase arrivals from India

Ras Al Khaimah has signed an agreement with Cox & Kings Ltd., the leading tour operator from India, to strengthen its relationship and expand its presence in the Indian market, which is one of the

fastest outbound markets in the region. This agreement will focus on promoting the various aspects of Ras Al Khaimah and popularize it in the Indian market. The agreement, which was signed today at Arabian Travel Market (ATM), is aimed at increasing tourism arrivals to Ras Al Khaimah from India. The partnership, which will take effect from May 1st 2016, will also introduce Ras Al Khaimah to the Indian market through specially created itineraries, creation of stand alone tourism products for the emirate and market the destination via a series of campaigns and training programmes for Cox & Kings staff. India has already cemented its position as one of the emirate's leading source markets with an 80 percent increase in visitors year-on-year (2015-2014). Haitham Mattar, CEO of Ras Al Khaimah Tourism Development Authority said: "Following our revised strategies and Vision to reach one million visitors by the end of 2018, we will be announcing a number of partnerships

such as this. Air India Express has already launched new routes to the emirate and our agreement with Cox & Kings will ensure we're making the destination as accessible as ever. We are proud to begin a long relationship with such an established travel company within one of our top source markets. India offers an important contribution towards our overall visitor figures and we keen to progress this opportunity to target Indian travellers even further." Ashutosh Mehere, Sr. Vice President, Alliances & Special Projects, Cox & Kings Ltd., said: "Ras Al Khaimah offers the Indian traveler an opportunity to explore a new destination. We will focus on promoting the destination aggressively in the Indian market and create packages that are affordable and capture the essence of the destination.'' The signing took place on 27th April at Ras Al Khaimah Tourism Development Authority's stand at ATM.

RAK Properties releases new phase at Bermuda Villas, Mina Al Arab New units to meet growing demand for spacious beachfront property in Ras Al Khaimah, Show villa is now available for viewing RAK Properties PJSC, Ras Al Khaimah's biggest property developer listed on the Abu Dhabi Stock Exchange, is all set to commence the release of Phase 2 of its Bermuda Villas being developed under its flagship Mina Al Arab waterfront community. The announcement comes as welcome news for investors and homeowners seeking spacious residences strategically located along Ras Al Khaimah's scenic beachfronts. Bermuda Villas was launched in 2014 and is set for completion by late 2016. The residential complex will span 157 two - to six-bedroom villas and townhouses catering to the high standards of living embodied by the Mina Al Arab master development. Aside from providing spectacular coastline views, it will also feature a private beach, separate swimming pools for ladies, gents and children, a dedicated children's playground, a multipurpose court, and expansive green turf areas. Initial sales were a success, reflecting both the high demand for luxury housing in Ras Al Khaimah and the emirate's steady rise as a premier tourist and investment hub in the region. RAK Properties expects to sustain the momentum through its Phase 2 offerings; show villa is now available for viewing. Mohamed Sultan Al Qadi, Managing Director and CEO, RAK

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Properties PJSC, said: "The first batch of Bermuda Villas was warmly welcomed by investors. The development complements Ras Al Khaimah's focus on promoting its rich natural environment as well as enhancing its touristic and investment appeal. We invite investors and home seekers to explore what Bermuda Villas has to offer, particularly its emphasis on style, space and nature. We promise a unique leisure and lifestyle proposition that echoes the grandeur of Mina Al Arab as well as the charming character of Ras Al Khaimah."

JULY â&#x20AC;&#x201D; AUGUST 2016 Robust RAK

MARKETING RAK NEWS MIX

RAK Q1 tourism figures reflect remarkable milestones of the last 12 months - 2016 off to a strong start with encouraging Q2016 1 tourism figures - Ras Al Khaimah's new tourism strategy and rebrand will further boost visitor numbers - New destination video by multi-award-winning director unveiled at Arabian Travel Market Ras Al Khaimah Tourism Development Authority (TDA) reported unprecedented growth in its March tourism figures today at Arabian Travel Market 2016 (ATM), reflecting the emirate's rapid progress made since last year's ATM. Haitham Mattar, CEO of Ras Al Khaimah Tourism Development Authority, also unveiled a new destination video and rebranding campaign. Together with the new creative strategy, global partnerships and fresh products are some of the additional highlights being showcased on the Ras Al Khaimah stand (ME3510) from 28 - 25 April. "This time last year, we were preparing to embark on a transformational 12 months for Ras Al Khaimah", said Mattar. "After commencing extensive research last summer, we released the first 'Tourism Strategy' for the emirate: a three year roadmap for delivering our new vision. Today, the Arabian Travel Market provides the perfect platform to showcase our new brand and reveal the unique gems of our destination." To reach its target of one million visitors by the end of 2018, Ras Al Khaimah TDA has made impressive strides in initiating strategic partnerships with airlines and tour operators over the last 12 months. Collaborations were signed with Thomas Cook, FTI, Emirates, Flydubai, Air Arabia, Qatar Airways and Air India Express. New representation offices were also opened in India, Russia and the UK, with even more offices planned for China and Saudi Arabia. All of these milestones have led to positive growth trends as

shown by the latest tourism figures. Visitor numbers to Ras Al Khaimah in March 2016 were up %7 percent on March 2015. Furthermore, the emirate's hotels reported an occupancy rate of 80.3 percent, up by 13.3 percent on March 2015. Rev PAR for March 2016 also increased by 14.1 percent compared to the same period last year. In the first quarter of 2016, Ras Al Khaimah's hotels reported an occupancy rate of 71.3 percent, up by 17.7 percent on Q2015 1. Coupled with a 9.2 percent year-on-year increase in Rev PAR, this demonstrates the highest growth across the GCC. "Ras Al Khaimah attracts visitors from a wide range of source markets. Our top markets include the UAE, Germany, UK, Russia and India. But as a result of our trade missions and industry partnerships, we are now seeing an increase in visitors from new markets such as China, Scandinavia and Eastern Europe. Furthermore, we have implemented a new leadership structure to deliver on our new strategy, and we are working in close partnership with our hotel and government stakeholders. We have gained considerable momentum, and this will only continue as we focus our efforts investing in our tourism offering," said Mattar. With access to 64 kilometres of pristine beaches and a unique terracotta desert, Ras Al Khaimah's hotels and resorts continue to grow from strength to strength. The destination currently offers over 5000 hotel rooms across 41 properties, with more than 3000 rooms in the pipeline across 12 properties by 2019. As part of further plans to enhance the destination, Ras Al Khaimah TDA is also investing in world-class events and tourism products. Opening this year will be a series of new tourism offerings centred on Jebel Jais, the highest mountain in the UAE, including a Via Ferrata, zipline and -5star mountain camp and viewing deck.

RAK Tourism Development Authority partners China's largest online travel agency Ras Al Khaimah Tourism Development Authority (TDA) and Ctrip Destination Marketing have this week announced a strategic cooperative marketing agreement aimed at promoting the Emirate as a new destination for Chinese tourists. The agreement was signed at Arabian Travel Market (ATM) and will run initially from 1st May 2016 until 30th April 2017. The co-marketing partnership will generate significant awareness about Ras Al Khaimah in China and is aimed at increasing Chinese outbound travel and tourism to the destination. The cooperation will be focused on the promotion of Ras Al Khaimah as a world-class tourism destination for authentic culture and nature based Arabian experiences. It will include the development of tailor made travel packages to Ras Al Khaimah and a series of high-profile online marketing campaigns to drive awareness and bookings. www.robustrak.com

Robust RAK JULY â&#x20AC;&#x201D; AUGUST 2016

RAK NEWS

Starwood brings new Four Points by Sheraton to Ras Al Khaimah

Opening in 2019, Four Points by Sheraton Ras Al Khamah marks the company's entry in the Emirate Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced the signing of Four Points by Sheraton Ras Al Khaimah with Hamarain Real Estate LLC. Scheduled to open in the first quarter

of 2019, the hotel will be Starwood's first property in the Emirate of Ras Al Khaimah and the fourth Four Points by Sheraton in the United Arab Emirates. "We look forward to working together with Hamarain Real Estate to introduce our first property in Ras Al Khaimah," said Neil George, Senior Vice President, Acquisitions & Development, Starwood Hotels & Resorts, Africa and Middle East. "This deal is in line with the strong demand for affordable yet modern accommodation in the UAE and also underlines Ras Al Khaimah's plan to enhance the destination and diversify its hotel portfolio." "We are excited to sign our first hotel with Starwood and look forward to contribute to the growing development of the tourism

sector in Ras Al Khaimah," said Yousef Hamarain, Managing Partner, Hamarain Real Estate LLC. "We believe with its modern style and great value, Four Points by Sheraton Ras Al Khaimah will create a new benchmark in the Emirate." The new Four Points will offer 300 rooms and serviced apartments and four food and beverage outlets. The hotel will be a part of a mixed-use development featuring offices, residences and a shopping mall. Reflecting the brand's promise and insight into the needs of today's traveller, the hotel will also offer all of the brand's signature elements, including the exclusive Four Points Four Comfort bed and free bottled water in all guest rooms and fast and free Wi-Fi in all public areas.

RAK Properties releases new phase at Bermuda Villas, Mina Al Arab wmeet growing demand for spacious beachfront property in Ras Al Khaimah, Show villa is now available for viewing RAK Properties PJSC, Ras Al Khaimah's biggest property developer listed on the Abu Dhabi Stock Exchange, is all set to commence the release of Phase 2 of its Bermuda Villas being developed under its flagship Mina Al Arab waterfront community. The announcement comes as welcome news for investors and homeowners seeking spacious residences strategically located along Ras Al Khaimah's scenic beachfronts. Bermuda Villas was launched in 2014 and is set for completion by late 2016. The residential complex will span 157 two - to six-bedroom villas and townhouses catering to the high standards of living embodied by the Mina Al Arab master development. Aside from providing spectacular coastline views, it will also feature a private beach, separate swimming pools for ladies, gents and children, a dedicated children's playground, a multipurpose court, and expansive green turf areas. Initial sales were a success, reflecting both the high demand for luxury housing in Ras Al Khaimah and the emirate's steady rise as a premier tourist and investment hub in the region. RAK Properties expects to sustain the momentum through its Phase 2 offerings; show villa is now available for viewing. Mohamed Sultan Al Qadi, Managing Director and CEO, RAK Properties PJSC, said: "The first batch of Bermuda Villas was warmly welcomed by investors. The development complements Ras Al

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Khaimah's focus on promoting its rich natural environment as well as enhancing its touristic and investment appeal. We invite investors and home seekers to explore what Bermuda Villas has to offer, particularly its emphasis on style, space and nature. We promise a unique leisure and lifestyle proposition that echoes the grandeur of Mina Al Arab as well as the charming character of Ras Al Khaimah."

JULY â&#x20AC;&#x201D; AUGUST 2016 Robust RAK

RAK NEWS

SuperCasa announces first five-star hotel on 75,000 sq. ft. plot on Al Marjan Island SuperCasa, a globally renowned developer, announced its first -5star hotel to be located on a 75,000 sq.ft. plot on Al Marjan Island, Ras Al Khaimah's first man-made island project. The -5start hotel will have 320 beach-facing rooms, and 2 fine dining restaurants, 2 casual restaurants, a pool, Spa and Gym facilities. Construction is scheduled to start in the fourth quarter of 2016, to be completed by end of 2018. "We are delighted to announce our first hotel investment on Al Marjan Island. The ambitious project has been designed to become an iconic 5 star property on Al Marjan Island. As a developer, we will ensure project completion in two years, to deliver a world-class luxury property by 2019. Investing in RAK is attractive due to huge advantages enjoyed by investors, as well as quick ROI and growth opportunities. We have selected Al Marjan Island because of the high guest numbers all year round," said Abdulrahman Al Houti,

Director of SuperCasa. Architect Abdullah Rashed Al Abdouli, Managing Director of AMI Company, said: "AMI has proved once again its leading position in the Emirate. We are looking forward to seeing this SuperCasa project come to life over the next two years by SuperCasa to be fully operational commencing 2019. AMI is witnessing exceptional demand in hotel investments, which will lead to a stronger position on the local and regional tourism map." The announcement comes at a time when the 2018 Vision of Ras Al-Khaimah Tourism Development Authority (RAK TDA) has chalked out an ambitious plan to attract one million visitors to Ras Al-Khaimah by the end of 2018. The same vision aims to boost the tourism revenues to AED 4 billion, and provide jobs to around 15,000 people.

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Robust RAK JULY — AUGUST 2016

RAK NEWS

A single map app for UAE buildings Finding your way around Dubai might be a challenge, but for some, the task can get overwhelmingly confusing when visiting unfamiliar emirates. To simplify the process of giving directions to buildings, officials at Dubai Municipality are currently working on charting all buildings across the seven emirates. “The aim is to have all buildings in the UAE installed with a plate, displaying the location’s -10digit geo-coordinates,” according to Abdul Hakim Malek, director of the Geographic Information Systems (GIS) Department at Dubai Municipality. He said the municipality’s smart mapping system ‘Makani’ has already been shared with Ajman, Umm Al Quwain and Fujairah, “and the deal has just been finalised with Ras Al Khaimah.” The Makani app is accurate up to one metre of the pin selected on the map, and can also be scanned by smartphones using the QR code reader apps — providing a digital copy of the number that can be quickly shared online. More good news is in store for taxi users, as Malek also confirmed that the Roads and Transport Authority in Dubai will integrate the Makani app into their GPS system. “This means that customers can give their -10digit coordinates to taxi drivers, and get to their destination without any hassle,” said Malek.

Emirates Chartered Accountants Group, is ISO 9001 – 2008, a certified International firm of Chartered Accountants headquartered at Dubai, U. A. E. We are a member of IEC- Net, an International network of Auditors, Accountants and Tax professionals with its head quarters in Paris. Emirates Chartered Accountants Group is known for its excellence in client service, quality, professional integrity, accountability, innovation and best practices.

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2020 READY

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Robust RAK JULY — AUGUST 2016

RAK INDUSTRY

Ceramics in fashion! Ceramics today are a design-orientated, fashion-led product, with fast changing trends. Fashion conscious customers no longer want to wait 5-10 years to replace their tiles or sanitaryware, but change them regularly to keep their interiors and exteriors looking fresh and modern.

ccording to research by Frost and Sullivan, the global ceramic tiles market is projected to reach US$125.32 billion by 2020 growing from 12.3 billion square metres in 2013 to 21.8 billion square metres by 2020. Asia Pacific is expected to dominate the global market for ceramics . Construction industry growth in BRICS countries (Brazil, Russia, India, China and South Africa) and in particular, India and China, where there is increased spending on infrastructure improvement, is expected to contribute to the rise in demand for residential and commercial structures and significantly boost the market. In 2013, floor tiles were the largest product segment for the ceramic tiles market, accounting for over 50% of market volume. Emergence of floor tiles as an ecofriendly replacement for hardwood and other flooring

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options is a key driver for this increase in demand. Coupled with superior qualities compared to other flooring options such as high durability, frost and thermal shock resistance and ease of maintenance, it is expected that this product segment will continue to grow. In the GCC, the tiles market is predicted to grow by 12% over the next five years. In its report, ‘Tiles and Ceramics Market Assessing Growth Trends and New Opportunities in the Gulf Cooperation Council (GCC)’, market analysts Frost & Sullivan say up to 10,000 projects are currently either under construction or in the design and planning stage in the GCC. And the tiling industry is one of the fastest growing segments of the building materials market in the region . The GCC has an advantage, as it is able to competitively price its products, primarily due to

JULY — AUGUST 2016 Robust RAK

RAK INDUSTRY segments amongst others, which maximises its exposure. Similarly, from a geographical standpoint, RAK Ceramics’ products are sold worldwide, reaching a wide range of customers with varied design preferences and needs. Ceramics today has become a design-orientated, fashion-led product, with fast changing trends. Fashion conscious customers no longer want to wait 5-10 years to replace their tiles or sanitaryware, but change them more regularly to keep their interiors and exteriors looking fresh and modern. It is important for ceramics manufacturers to follow closely what is in fashion, which styles are on trend and ensure market demands are met. Ceramics are now used creatively both indoors and outdoors in many different ways, not only on walls or floors, but also outdoors to create façades, as cladding, and decoration and indoors to replace counter tops such as kitchen and bathroom surfaces. It is a very exciting time, the industry is moving forward and RAK Ceramics is well positioned to lead this movement, inspiring people and designers from around the word and giving them room for imagination.

1. Frost & Sullivan 2. Frost & Sullivan, Construction Week Online – May 2015

the availability of raw materials. The UAE has great infrastructure with some of the best airlines and ports in the world, offering manufacturers quick access to global markets. In Ras Al Khaimah, raw materials can be delivered directly to the port in RAK City and manufacturers based here are uniquely positioned to sell to the entire GCC with no barriers. There have been mixed opinions about the direction of growth in the construction sector in the region; however, the report anticipates that the GCC has been, and will continue to, experience a significant increase in construction activity, encouraged by factors such as an increase in tourism, positive macroeconomics, and high-budget allocations towards mega-projects. Saudi Arabia, the UAE, and Qatar are the leading consumers of ceramic tiles in the region, and this is predicted to increase as these countries have secured the rights to host international events, such as Dubai Expo in 2020 and FIFA World Cup 2022 in Qatar. Furthermore, as Ras Al Khaimah continues to develop itself as a tourist and lifestyle destination, it is evident that construction growth will continue to accelerate locally. The growth of the construction industry and the predicted growth in the ceramics industry globally is great news for RAK Ceramics. As one of the largest ceramics’ manufacturers in the world, it is a significant contributor to Ras Al Khaimah’s industrial growth. The company has an annual production capacity of 110 million square metres of tiles, 5 million pieces of sanitaryware, 24 million pieces of porcelain tableware and 600,000 pieces of faucets. RAK Ceramics’ products are sold to a wide range of segments, including residential, commercial, industrial, and hospitality

Abdallah Massaad has led RAK Ceramics PJSC as Group Chief Executive Officer since June 2012. He is also a representative on the board and management of several subsidiaries of RAK Ceramics, he is extremely knowledgeable in the fields of ceramics and industrial manufacturing, and is instrumental in helping companies engage in the forward and backward integration of the ceramics supply chain.

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Robust RAK JULY — AUGUST 2016

RAK LIVING

Nielsen: RAK offers a better quality of life • First in-depth research into the quality of life of Ras Al Khaimah residents commissioned by the Ras Al Khaimah Tourism Development Authority • Overall quality of life in Ras Al Khaimah scores 72 out of a possible 100 • The Ras Al Khaimah Quality of Life Study results reveal that residents consider the emirate to be naturally beautiful

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JULY — AUGUST 2016 Robust RAK

MARKETING RAK LIVING MIX

nder the patronage of His Highness Sheikh Saud Bin Saqr Al Qasimi, Member of the Federal Supreme Council and Ruler of Ras Al Khaimah, Ras Al Khaimah Tourism Development Authority (TDA) has spearheaded the first study revealing residents’ quality of life in the emirate – The Ras Al Khaimah Quality of Life Study. Working with world-renowned market research company, Nielsen, Ras Al Khaimah TDA commissioned the research to examine and evaluate the quality of life amongst local residents. The study was conducted in a bid to determine any areas of development required to bolster the destination’s offering and ensure efforts are maximised to contribute towards making the UAE one of the happiest countries in the world as per the World Happiness Report. The country currently ranks 28th, out of 156 countries worldwide. The research offers a qualitative as well as quantitative evaluation of five indicators including: work and material well-being, physical infrastructure, public services / utilities, emotional well-being and social environment, and geography. These factors are key determinants of quality of life, and were selected to provide a holistic view of residents’ lifestyles within the emirate. Interviewing more than 1,500 residents across 35 different nationalities, and 5 zoness in northern and southern Ras Al Khaimah, the survey showed that respondents are very satisfied with the quality of life in the emirate, scoring an average of 72 out of a possible 100. A staggering 91 percent of respondents claim the emirate is a safe city to live in, and 79 percent are satisfied with their work-life balance. Both safety and work-life balance play an important role in ensuring a high quality of life, providing Ras Al Khaimah with an edge

over other metropolitan areas globally. The emirate’s efforts to preserve its culture and heritage, one of its core attributes, is reinforced by survey respondents sentiments – 68 percent of which believe the architecture and building design in Ras Al Khaimah depicts the heritage of the emirate, with one of the Emirati focus group participants stating: “Ras Al Khaimah is beautiful.. it feels like you are still in an Arab country.” Haitham Mattar, CEO of Ras Al Khaimah TDA said: “Ras Al Khaimah’s natural assets clearly shape a high quality of life for our residents, as we continue to develop a leading destination worthy of attracting not only professionals looking to live and work in the emirate, but also global travellers. The emirate offers a peaceful alternative to the hustle and bustle of other cities, providing good value for money and an enviable lifestyle. Access to beautiful beaches, nature, mountains and desert in an authentic Arabian setting is a draw for expatriates, residents and tourists alike”. . As we welcome increasing visitor numbers yearon-year, we are equally keen to ensure that we are constantly enhancing the quality of life of our residents. It is this quality way of life that sets the benchmark in Arabian hospitality, as well as acting as a major draw for international hospitality professionals, eager to sample a taste of life in the emirate.” The research findings were revealed at an event at the Waldorf Astoria, Ras Al Khaimah with more than 20 heads of government entities in attendance, including the RAK Municipality, Environmental & Development Agency,, Civil Defence, RAK Police, , RAK Transport Authority, Ministry of Public Work and the Department of Economic Development amongst others. Based on the findings, each government entity and private stakeholder has been provided with an action plan to support Ras Al Khaimah’s development by implementing a strategic plan to enhance the quality of life. The research will be conducted again in two years to ensure continuous improvement and to measure the success levels of plans put in place. Areas of focus include urban planning, infrastructure development, education and tourism facilities.

The research findings on quality of life in RAK also revealed:

• • • •

82 percent of respondents believe state of the art healthcare facilities are available 79 percent say they are satisfied with the balance between work and other aspects of life 74 percent believe it is easy and convenient to avail government services in RAK 80 percent agree that ‘RAK is strategically located and is well connected to other emirates’

*1,500+ computer assisted interviews were conducted with residents living in Ras Al Khaimah for at least three months, above the age of 18. www.robustrak.com

Robust RAK JULY â&#x20AC;&#x201D; AUGUST 2016

STAYCATIONS

Seawings Lifestyle offers RAK staycation bundles Seawings Lifestyle, the premium seaplane operator on the Arabian Peninsula, has partnered with Ras Al Khaimah Tourism Development Authority (TDA) and four luxury resorts in the emirate to welcome summer vacationers to the destination. The collaboration is an integral part of the TDA's campaign to enhance the visibility of Ras Al Khaimah as a leading tourist destination. Seawings Lifestyle has created a unique collection of staycation packages that combine scenic flying with Ras Al Khaimah's finest accommodation. These holiday packages start with a 45-minute seaplane flight from Dubai Creek to Ras Al Khaimah. Travellers can enjoy unrivaled views of the Dubai cityscape and Arabian coastline before touching down on the waters of Ras Al Khaimah. Guests can choose from day packages to one or two-night staycation escapes at DoubleTree by Hilton, The Cove Rotana Resort, Banyan Tree Al Wadi, and the all-inclusive Rixos Bab Al Bahr. Day trip spa packages are also available and guests have access to all of the resorts' facilities. Travellers will return to Dubai by chauffeured land transfer. To launch the packages, Seawings Lifestyle is offering exclusive discounts that knock over 50% off the listed price. The lowest discounted package is the one-night stay at just AED 999 per person, inclusive of the scenic flight and land transfer. These will be predominantly marketed towards neighboring emirate residents seeking a getaway from the city. Discussing the collaboration, CEO of Seawings Stuart Wheeler said: "Seawings and the Ras Al Khaimah Tourism Development Authority can both play a significant role in developing tourism and showcasing everything Ras Al Khaimah has to offer. We're delighted to collaborate and promote the unique beauty of the emirate." Wheeler added: "We've always enjoyed curating the very best of the emirates for the luxury traveller. By developing this unique collection of seaplane staycations, Ras Al Khaimah can be a favorite to new

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audiences and ensure more visitors can enjoy its unique charms." Haitham Mattar, CEO of Ras Al Khaimah TDA, said: "While Ras Al Khaimah offers something for every type of traveller, the partnership with Seawings Lifestyle will grow our expansive luxury offering for those seeking a more indulgent getaway. Visitors to the emirate can now enjoy an especially memorable start to their trip, with a bird's-eye view of the destination showcasing the diversity of our landscape - from the stunning terracotta deserts and mountain range, to the 64km of pristine beaches." The new Ras Al Khaimah staycation packages are exclusive to Seawings and can be booked through www.seawingslifestyle.com or over the phone on 04 - 8070709 with a Seawings Lifestyle ambassador. Packages can also be customized dependent on travellers' specific requirements.

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Robust RAK JULY â&#x20AC;&#x201D; AUGUST 2016

INNOVATION

Innovation is the lifeblood of UAE SMEs Beehive survey details out the differences between the SME innovation culture in the UAE and that in Silicon Valley.

pple. Ford. 3M. Tesla. Amazon. Their names roll off our tongues, without even a thought, when we think of innovation. They made an eternal mark on history, revolutionised industries, changed the world, and generally made a positive impact in our lives. They created industries and powered revolutions. They made the seemingly impossible possible and the mundane incredibly exciting. They are the innovators that symbolise the advancement of humankind. The UAE has long been seen as the centre of innovation in the Middle East and continues to attract talent from all corners of the world eager to launch new ideas and business models. That is thanks, in part, to geography. But government policy plays a crucial role

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as well. The UAE is decidedly pro-business, supportive of diversification and embracing of technical and technological development. In 2014, SMEs accounted for some 92% of all the businesses in UAE; they contributed around 60% to the UAEâ&#x20AC;&#x2122;s GDP and provided 86% of all private sector employment, according to the UAE ministry of Finance. SMEs are the lifeblood of any local economy, and innovation is the lifeblood of all SMEs. SMEs, by their nature, leverage innovation as a competitive edge to wage the proverbial battle of David versus Goliath. SMEs have to think differently, and they have to implement new ideas quickly in order to survive, especially in a competitive and saturated market such as the UAE.

JULY — AUGUST 2016 Robust RAK

MARKETING INNOVATION MIX

To commemorate Innovation Week in the UAE, Beehive, the UAE’s first peer-to-peer (P2P) finance platform, conducted an in-depth study of SME innovation in collaboration with Thomson Reuters. The study looked into how SMEs in the UAE approach innovation, how they apply it for commercial success and how they can learn from each other’s experiences. Conducted in June 2015, the study is based on a roundtable discussion with some of the most successful SMEs in the country across a range of industries, coupled with an in-depth survey. One of the key findings of our study was that 45 per cent of the SMEs surveyed believe that the definition of innovation in the UAE is adapting an existing idea to a new market. Whereas entrepreneurs in Silicon Valley are more likely to innovate by bringing new products and services to market, entrepreneurs in Dubai more likely to adapt existing ideas to the region quickly and efficiently. They are often second-movers in the concepts that they apply, but first-movers in the local market. The biggest driver of innovation in the UAE was defined by 33 per cent of respondents as the competitive pressure of the market, with 26 per cent of respondents saying it was the desire for industry leadership and meeting consumer demand. When asked about key factors spurring future innovations, the surveys revealed three important themes: knowledge, community, and transparency. The study showed that SMEs feel that they have an innovative mind-set and the ability to generate creative

The UAE has long been seen as the centre of innovation in the Middle East and continues to attract talent from all corners of the world eager to launch new ideas and business models.

ideas. However, many business owners don't fully understand how to successfully execute an innovation strategy, and leverage them for the long-term benefit of the company. Limited research and development budgets, rapidly changing demographics and a lack of support from partners and clients prevent businesses from allocating time and resources to focus on innovation. A lack of funding to invest in innovation was the biggest barrier, with 51 per cent of respondents highlighting finance as a major enabler to innovation. Despite their significant contribution to the economy, SMEs continue to struggle to secure funds for growth and innovation. The International Finance Corporation (IFC) estimates that the current SME funding gap is approximately USD 260 billion within the MENA region. This lack of accessible finance options is a result of tightened credit checks by banks and reduced liquidity in a fragile market. Not surprisingly, survey espondents highlighted the need for greater financial stability as a central barrier to innovation, particularly in a market where the consequences of a default not only negatively affects ones business, but could lead to penalties such as travel bans or even jail for paying with cheques that bounce. Alternative finance options are addressing the need for faster access to lower cost financing by alleviating the constraints and high cost of conventional lending. And they are proving popular with SMEs. Since Beehive was launched in 2014, the company has channelled almost AED 25 million to around 50 SMEs in the UAE, with no defaults from the businesses to date. It is clear that funding has a big impact on innovation for SMEs in the region. But by providing SMEs with more financing options, supportive infrastructure and accommodating government support to focus on innovation, we can help fuel the ambitions of the SME ecosystem, and be catalysts for innovation within the SME community.

Craig Moore is Founder & CEO of Beehive, the UAE’S first online peer-to-peer finance platform for creditworthy SMEs and smart investors.

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Robust RAK JULY — AUGUST 2016

DIGITAL WORLD

Customer service amplifies brand values VIA social media In today's referral dominated consumerist world, it's an established fact that customer service is at the heart of business growth. Social media is now a part of life and is central to brand value creation.

n a recent trip to Rome I experienced rather poor service at a restaurant near a well-known tourist destination. I could not help thinking why the owners of this establishment would allow poor customer service to go unchecked. Was it the fact that they were hoping their location would ensure a continuous supply of future customers? Or did the restaurant owners simply not care about customer service assuming that as tourists there would be little likelihood of repeat business. What was more surprising is that the restaurant owners were totally oblivious to the fact that with instant internet connectivity, customers could share their experiences on the various social media platforms with future customers. Various surveys and academic studies have consistently shown that there has been a rapid increase in the number of complaints posted on social media websites. Interestingly, one UK survey showed that a quarter of all users of social media had posted negative comments regarding their experiences. At the same time these surveys show that the bulk of new customers are influenced to carry out a purchase based on reviews on social media platforms. In today’s referral dominated consumption world, the established fact is that customer service is extremely important for all businesses and it either makes or breaks a business. Therefore, it’s important that excellent customer service is at the heart of every business, large or small. Customer service starts with knowing what customers need and want and extends to delivering a complete positive experience for potential and existing customers which includes treating them with respect and care regardless of the amount or frequency of their spend. Companies need to follow up on a purchase and

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obtain feedback so that they can understand the customer and continuously exceed the expectations. Companies need to ensure that they are going the full mile to help their customers. If and when things go wrong, which happens from time to time, it’s important for a company to handle the situation efficiently and gracefully. Of course, customer service is not free and incurs costs and resources. But the returns are high and include the ability to increase customer loyalty. This in turn leads to greater spending and research shows that customer’s purchases increase after a good experience. At the same time customers stop buying after a bad customer service interaction. Excellent customer service also increases the frequency of customer spending as well as generating further business through traditional word of mouth as well as positive reviews on social media. Also, excellent customer service removes the barriers to buying because the customer can exchange the product or obtain a refund. Social media is now part of life and companies should not view it negatively but instead harness its power to improve customer loyalty and sales. First, companies need to constantly monitor social media platforms to understand what their customers are saying about their experiences both positive as well as negative. In case of the latter, companies need to make sure that they effectively deal with negative complaints and respond in a polite manner while resolving issues. Far too often, companies respond to negative reviews defensively rather than in a spirit of resolving the complaint. Also, a response to a complaint on a social media platform is there for all to see. This implies that any response has to be well thought out while remembering that a social media response needs to be faster than a traditional response.

JULY â&#x20AC;&#x201D; AUGUST 2016 Robust RAK

MARKETING DIGITAL WORLD MIX Therefore, itâ&#x20AC;&#x2122;s important to ensure that staff responding to social media postings are trained and very customer centric. Remember, every negative situation well-handled can actually have a positive impact to the company. Perhaps a more successful strategy is to provide customers who have received poor service an alternate channel to complain privately and away from mainstream social media platforms, such as through online complaints systems and emails. If customers know that a company responds quickly and effectively via traditional channels such as emails, phone calls etc. then they are more likely to use them. The starting point for any company has to be to deliver excellent customer service which will ensure that it has a positive impact on the brand and of course on the business. However, when thing do go wrong, the company needs to ensure that customers are assured that they will receive a fast and effective response via traditional channels. In the event that a company has negative postings on social media platforms, it needs to have a social media strategy that goes beyond simply responding with a defence.

Dr. Ashraf Mahate has actively been involved in researching and providing consultancy in the areas of entrepreneurship, trade, economics, banking, and finance for over 25 years in the UAE and previously in the UK. Currently he is the Head of Export Market Intelligence at Dubai Exports which is an agency of the Dubai Economic Department.

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Robust RAK JULY — AUGUST 2016

INNOVATION

longside human creativity and inventiveness, Intellectual Property (IP) is always all around us. Every product or service that we use in our daily lives is the result of a long chain of big or small innovations, such as changes in designs, or improvements that make a product look or function the way it does today. Therefore, Intellectual property protection is critical to fostering innovation. Without protection of ideas, businesses and individuals would not reap the full benefits of their inventions and would focus less on research and development. Regardless of what product your SME makes or what service it provides, it is likely that it is regularly using and creating a great deal of intellectual property. Almost every SME has a trade name or one or more trademarks and should consider protecting them. Most SMEs will have valuable confidential business

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information, from customers' lists to sales tactics that they may wish to protect. A large number would have developed creative original designs. Many would have produced or assisted in the publication, dissemination or retail of copyright work. Some may have invented or improved a product or service. Consequently, SMEs should systematically consider the steps required for protecting, managing and enforcing IP, so as to get the best possible commercial results from its ownership. On the other hand, the intellectual property ecosystem has many other players and SMEs don’t need to do everything alone. In recent years, governments in the region have started to give more attention to supporting innovation and IP creation, yet most of the focus was on IP protection and much less on IP creation and commercialization. The UAE has always been a supporter of innovation.

JULY — AUGUST 2016 Robust RAK

MARKETING INNOVATION MIX

A collaborative effort among public and private stakeholders is driving diversification where entrepreneurs and SMEs play a huge role, encouraging the innovativeness and entrepreneurial aspirations of UAE’s young generation. Going forward, the UAE government is focused on promoting R&D and innovation: Building on the nation’s strategies, the Dubai’s 2021 plan also entails a strong focus on innovation to achieve sustainable economic growth and improvements in productivity levels. With all these plans and upcoming initiatives, SMEs should consider how best to manage their intangible assets - ranging from human capital and know-how to ideas, brands, designs and other intangible fruits of a company’s creative and innovative capacity. SMEs should realize that IP may assist them in almost every aspect of business development and competitive

strategy, from product development to product design, from service delivery to marketing and from raising financial resources to exporting or expanding your business abroad through licensing or franchising. In the coming years, we expect to see the Government providing more encouragement and support to hightech start-ups and other innovative SMEs through grants, guarantees, subsidies and/or soft loan schemes, which are provided via various public funding institutions and banks that directly or indirectly recognize the importance of intellectual property assets. In addition, there is growing awareness that intellectual property (IP) assets can be monetized. It can be sold, licensed or used as collateral or security for debt finance, or it can provide an additional or alternative basis for seeking equity from friends, family, angel investors, venture capitalists, specialized banks and even from regular banks.

Essam Disi is the Director of Strategy and Policy at Dubai SME, a government agency under the Dubai Department of Economic Development, tasked with the development of Entrepreneurship and Small & Medium Enterprises (SMEs) in Dubai.

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Robust RAK JULY â&#x20AC;&#x201D; AUGUST 2016

BUSINESS OUTLOOK

Stable Ratings Boost Business Confidence Financial planning and control is being standardised across government departments and the government's consolidated entities. A new financial planning framework was put into place to standardise budgeting approaches.

JULY â&#x20AC;&#x201D; AUGUST 2016 Robust RAK

BUSINESS MARKETING OUTLOOK MIX

itch Ratings-Hong Kong-04 May 2016: Fitch Ratings has affirmed Ras al Khaimah's LongTerm Foreign and Local Currency Issuer Default Ratings (IDRs) at 'A' with Stable Outlook. The issue ratings on RAK Capital's senior unsecured foreign currency bonds have also been affirmed at 'A'. The Short-Term Foreign Currency IDR has been affirmed at 'F1'. The United Arab Emirates (UAE) Country Ceiling has been affirmed at 'AA+'; this Ceiling applies to Ras al Khaimah and Abu Dhabi. KEY RATING DRIVERS The ratings balance the benefits of Ras al Khaimah's membership of the UAE, a low debt/GDP ratio and solid fiscal performance against lingering weaknesses in data quality and the macro policy framework. The Emirate derives substantial support from its membership of the UAE federation. Ras al Khaimah shares the UAE monetary and exchange-rate system with a credible US dollar peg and absence of exchange controls. The Emirate has no need for its own foreign exchange reserves, and UAE support compensates for the lack of external sector data. Most basic public services and infrastructure are provided directly by the federal government, relieving the Emirate's budget of many of the spending obligations of a typical sovereign. The authorities' ability to monitor and manage the economy is still limited by data weaknesses and by the lack of institutional structures enjoyed by other sovereigns in the peer group. National accounts data are limited and not yet methodologically mature, resulting in frequent revisions, and inter-year data are also absent. These weaknesses are being addressed

through ongoing reforms and improvements, but there are risks to the pace of progress. A population census in late 2015 has resulted in a revised population estimate of 345,000 people as of 2015, down about 100,000 from previous estimates based on data provided by the UAE National Bureau of Statistics. Another upward revision to GDP is set to take place after the 2015 GDP figure is finalised, and publication of quarterly GDP data could follow in late 2016 after delays resulting from the introduction of the UAE Federal Competitiveness and Statistics Authority. Dedicated institutional statistics capacity is being put into place. Financial planning and control is being standardised across government departments and the government's consolidated entities. A new financial planning framework was put into place to standardise budgeting approaches. The Financial Planning and Analysis Division began quarterly monitoring of entity and departmental spending in 1Q16. The Treasury is putting in place a process for the approval and monitoring of government guarantees, and a process is already in place to scrutinise the economic feasibility of new guarantee requests. A dividend policy is in the works. The headline government debt ratio will fall to 16.6% in 2016 from 21.9% in 2015, as no new debt is incurred and a USD400m Sukuk was repaid using proceeds from an issue in 2015. This is well below the peer median of 44.1% of GDP. Fitch expects debt to fall further in 2017 and beyond. Our headline debt figure does not include debt of government-owned companies (most of it guaranteed), which we expect to fall to 6.9% of GDP in 2016. Fitch expects cash deposits across the government and its entities to fall to 4.9% of GDP. The value of the government's listed domestic equity investments was around 19% of GDP at end-2015. These investments can be volatile, as evidenced by the 22% valuation loss they saw in 2015. Fitch projects a budget deficit of 1.4% of GDP in 2016 (including net equity investments in expenditure), versus a surplus of 0.3% in 2015. The government does not include net equity investments in expenditure when reporting the budget balance and on that basis, Fitch's projection implies a surplus of 0.1% of GDP, less than the government's budgeted surplus of 1.2%. More conservative revenue projections account for the difference. Fitch expects smaller increases in revenue in free trade zones, real estate and healthcare, following lower-than-budgeted revenue in these categories in 2015. Fitch also believes that expected increases in hotel capacity, occupancy, and room rates imply a smaller-than-budgeted increase in tourism revenues. Spending including net equity investments will rise 33% (in line with the budget), primarily on the back of capital spending projects carried over from 2015 that were delayed by the introduction of new approval procedures. Key capital spending items include a new crusher for Stevin Rock and RAK Rock, the expansion of www.robustrak.com

Robust RAK JULY â&#x20AC;&#x201D; AUGUST 2016

BUSINESS OUTLOOK

Saqr port, restoration of a hotel property, a multitude of enabling infrastructure investments in the RAKIA Free Trade Zone and investment in a community development on Al Marjan Island. Ras al Khaimah does not export oil, but as a major exporter of construction materials to the GCC, it is indirectly affected by lower oil prices through a reduction of construction spending in the region. This risk is somewhat mitigated by a small direct exposure to Saudi Arabia, which has seen the biggest cut-backs in construction spending; other GCC states have maintained it or have only cut back gradually. Ras al Khaimah also has the potential to redirect exports to other markets, as it did in 2009-2010. We estimate real GDP growth to have slowed to 3% in 2015, after 7.4% in 2014. We expect 4% growth per year in 2016 and 2017, driven by tourism, the export of construction materials, and activity within the Free Trade Zones. Saqr port tonnage rose 4.8%, reflecting mostly exports of construction aggregates; the new rock crusher and an expansion of Saqr port in 2017 could drive further growth. The number of guest-nights at hotels grew 10% in 2015, with strong growth in visitor numbers from Germany and China compensating for the negative impact of dollar strength and weakness in the Russian market. Hotel capacity is set to increase 50% over the next three years, and a key challenge will be to develop Ras al Khaimah as a destination to capitalise on the planned new capacity.

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RATING SENSITIVITIES The main factor that could lead to a positive rating action is continued strengthening of the macroeconomic policy framework, as evidenced in the availability and quality of data that could be used to better track the economy and the government's development programme. A negative rating action could result from a weakening in public finances prompted by large, sustained increases in current spending or by a deterioration of the macroeconomic outlook.

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Robust RAK JULY — AUGUST 2016

SMART CITY

Smart city not a trend, but a journey Energy efficient smart cities are a reality in the making. A forward-thinking leader, Amr Salem, global managing director for smart cities, internet of everything, at Cisco explains in an interview, what involves building a smart city and how the networking giant plans to connect the world through smart cities.

mr Salem, Global Managing Director for Smart Cities, Internet of Everything, at Cisco. In this role, Amr leads Cisco’s Smart Cities business across multiple domains: Traffic, Transportation, Energy, Public Safety and Security, eGovernment and Utilities.

and internet will evolve. Today, the internet is a means to connect people. However, in the future it will connect people to machines, machines to people and machines to machines. This operation will be actualized in a way that delivers all the necessary services and value, either by creating revenue or decreasing the cost of living.

Emphasize on the building blocks of a smart city?

How will Cisco curb or counteract security challenges IoT entails. For example, people will be trading privacy for efficiency. People will be vulnerable to cyber-attacks more often in comparison. Is it a fair deal to bet on?

Amr Salem: In terms of technology, there are varied building blocks of a smart city, which are projected in the form of multiple stacks. There are sensors embedded below the ground, which are connected via a network to a data centre with computing capability. Then, there is an application which administers services that apply this intelligence in order to deliver services and facilities to an enterprise and the community. In terms of execution, there is a need for a visionary leadership, such as H.H. Sheikh Mohamad of Dubai, who has made the mandate and driven the city in this particular direction. Implementation is imperative to activate the agenda and make headway. Thereupon, standardized technology systems are duly required. A smart city is built on an ecosystem of partners, who together operate to deliver value to the city and not bits and pieces from different industries which lack governing standards. Also, a public-private partnership is essential to bring this journey to fruition.

Cisco has been very vocal about embracing IoT solutions. What plans will it roll out that promise to make a business ecosystem efficient?

Amr Salem: Firstly, the Internet of Things (IoT) is not a set of solutions. IoT is a single component of the Internet of Everything (IoE). Linking sensors and machines through technology and connectivity over the Internet isn’t sufficient. To make an impact, necessary data needs to be taken into consideration. These four elements — technology, connectivity, process and people – is what we call the Internet of Everything. Likewise, IoE is not a technology trend, but the way life

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Amr Salem: IoT has two distinct components, i.e. security and privacy. Hacking into the traffic light system of a city and bringing it down to its knees, so much so that the entire transportation and traffic system finds it challenging to recover from this debacle is a security issue. At present, IoT applications, computing capabilities and network capabilities need to take security design and other related elements into consideration. Also, the standards used for designing banking systems have to be applied to design IoT product connectivity. On the other hand, privacy is entirely different as the present and future perspectives will change with time. The younger generation is comfortable sharing their lives on social media. Therefore, they will re-define and manage privacy as per their norms.

Are there any environmental benefits of establishing smart cities and embedding sensors at every step?

Amr Salem: Absolutely. The whole idea of establishing a smart city is to attain sustainability in economic, social and environmental development. Firstly, economic sustainability is vital to create opportunities for SMEs to develop beneficial applications, which leads to formation of an industry and reduction in the cost of operation of the city infrastructure. Secondly, social sustainability refers to the quality of life and service delivered to people, which results in an improvement in the lifestyle, making the citizens happier. Thirdly,

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SMART CITY

environmental sustainability pertains to efficient management of resources needed to effectively operate the infrastructure of a city. For instance, the light sensing capabilities integrated in traffic lamps can be switched on and off as per the requirement, which not only reduces the cost of energy but also the carbon footprint and promotes a greener environment.

People have not yet effectively adopted methods to manage energy resources. So, do you think the world is ready to foster smarter cities that promise unmatched efficiency?

Amr Salem: We do have methods that effectively manage energy resources. However, the next generation of technology would evolve into a selfmanaged science, complete with a selfmaintained nature. This is IoT. Now, we have arrived into a new era of enabling and comprehending the behaviour of machines in the future. This is necessary in order to cope with the population due to insufficient resources. These systems are crucial to curtail the amount of resources needed and utilized for survival. Continual environmental degradation to squeeze non-renewable natural resources will result in a grave disaster.

Will the fabric of a smart city be adaptable and flexible at all times, given the evolving nature of a city and economic, social and technological contexts? Amr Salem: Smart city isnâ&#x20AC;&#x2122;t technology, product or a

solution. It is a journey committed to by the city and its people. This journey advocates and nurtures an effective and efficient greener lifestyle. By reducing our carbon footprint we are investing in the future of our children. There is no end to the journey of building a smart city. Over the course of the journey, people will constantly adopt, improve and evolve. So, the fabric needs to be wellcalibrated in order to be adaptable in the future. To begin with, the infrastructure for a smart city needs to be built and then the focus has to be diverted towards creation of applications. Just focusing on applications in the initial stages is a faulty move. A company cannot create a waste management application and have it deployed. If the application is implemented in isolation from the other systems, the infrastructure will not be leveraged to its optimum. In the future, the ecosystem will encounter inconsistency in data and legacy issues resulting in failure to connect all applications and devices with each other. For example, Cisco completed a project in France, wherein the garbage cans were connected via a network to easily locate the overflowing cans. The sensors relay a signal and a collection truck is sent to empty the same. This application stands to be invaluable as it reduces the traffic congestion and increases efficiency in the collection process. However, during summer, the city witnesses a temperature between 30 to 35 degrees and the garbage emits a foul smell. The outcome is a polluted environment and annoyed residents. Now, how does the sensor detect the increase in temperature? In order to achieve this, the previous sensor will be replaced with another sensor with climate monitoring capabilities. An advanced environment monitoring system enables the sensors to communicate and is supported by the same infrastructure. This helps in leveraging one deployment to collect data and allows the sensors to connect to any application on the grid. The key is to embed sensors that bear multisensing capabilities across the city, collect as much data as you can, normalize the data and then offer it to any application to tap into the sensor. This is a form of an open system.

Will there be a monopoly with context to a smart city? If Cisco manages smart cities, what happens to the competitors and the competition? Amr Salem: In the history of technology, Cisco is the best partnering company in the world. we live with our partners and implement the best partnering programs. www.robustrak.com

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SMART CITY

Similarly, we offer a full-fledged infrastructure, which allows any of our partners to run their application. For example, if an app developer builds a parking application for the smartphone. will a small player be able to sell the app, publicize the same in the market and build an infrastructure to access, collect and process the data? The app developer will be unable to perform these activities and succeed. Cisco offers companies the support and the intelligence to build an app and tap into the data repository. Although, there are competitors offering infrastructure services, but they lack the IoT vision and advanced capabilities. Cisco creates two layers in its products – South bound and North bound. The former allows any sensor to access the data. So, any company who has partnered with Cisco can embed his sensor below the ground

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and Cisco will access it due to the standard API that connects with the sensor. The latter (North bound) explains any application the structure of Cisco’s data so that the company can infuse the data in their own applications. This way Cisco works as an aggregator and an enabler for companies across industries.

Cisco has 90 smart city projects. So, will the technology and strategy vary or will there be uniformity, considering it’s managed by the same brand? Amr Salem: The number of the projects undertaken by Cisco have increased. The outlook of the journey of the smart city is the same. First and foremost, the infrastructure and the desired end result is critical to Cisco. The project initiation entirely depends on the priorities of the city, namely energy, water, traffic,

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SMART CITY security etc. Accordingly, the impending infrastructure has to be adaptable and flexible in design and enable the city to leverage the existing physical infrastructure to effectively manage and monitor the additional environment and operate as a service to the people seeking to access data. In the event of implementing an incorrect application, the whole infrastructure needn’t be uprooted. The priorities, the governing law and jurisdiction and the environment are an influential set of factors which are imperative to set the project afloat. Federal budgets, privately-owned utilities, federal outsourcing, taxes, expats, elections, elective officials etc. influence funds and approvals needed. This also shows that the authoritative structure of every country is different. Therefore, the modules have to be modifiable and aligned to the legal structure of the government and the priorities of the citizens. To sum it up, Cisco works as per the priority of the city.

What is a smart grid?

Amr Salem: The electric power system of a city comprises of three segments – the generator, followed by distribution and lastly consumption. For instance, if you create 100 Mw of electricity, nearly 40 Mw is consumed while the remaining 60 gets exhausted on transit. The power sub-stations enabling distribution allow unidirectional transfer of electricity and are setup to regulate a single source of energy. Regardless, the smart grid, regulates the main source of electricity and also allows alternate resources like wind energy, solar, hydroelectricity to tap in. In this scenario, the wind need not be directed from Fujairah to Dubai. The wind energy generated in Fujairah can be used for the Fujairah sub-station. Under the smart grid, the substation will have the ability to leverage two sources of input rather than one, thus marking the beginning of intelligence. This is one way of integrating multiple sources of energy. On the other hand, how does Cisco help people to benefit from their own savings? The smart grid enables bidirectional transfer of energy. If the solar power reserve stores excess energy, a citizen can direct this energy to the grid and sell it back to DEwA. The citizen stops being a consumer and becomes a producer instead. This encourages people to adopt methods to save energy and relay the power to the grid. Every house will fund their own power, ensuring low electricity bills. Of course, it requires certain systems, policies and billing structures to be in place. Since the existing infrastructure has to be altered, this process poses numerous complexities.

How can a local developer play a role in your big vision? Can they be a part of the master plan? Amr Salem: The building blocks of the smart city consist of smart policies. Intelligent policies from different entities and rewards are integral for a successful plan. Today, a developer does not benefit

from accessing intelligence. The amount of energy consumption is insignificant to a developer. If the building is incentivized and offers benefits to the developer, in exchange he will create long term benefits for the city. Besides being incentivized, the residents of the buildings can be rewarded for reduced consumption of energy. Developers seek to operate with great effectiveness, hence they must build an intelligent infrastructure and not consider the infrastructure as an afterthought. Apparently, this has become a standard worldwide.

At which stage is the smart city? Is it still on theoretical basis or has Cisco started constructing the building blocks? Amr Salem: H.H. Sheikh Mohammad announced the smart city 18 months ago, however, 19 months ago Dubai was already smart. we take Dubai for granted. Dubai has been building intelligence in its infrastructure since ages. When did you start noticing e-gates? How many countries have 16-lane highways? These are parts of intelligence. A poorly constructed city with people wearing smartwatches cannot define intelligence. A smart city is an ongoing process of building layers and covering every angle and perspective. Dubai is just building upon its success to take it to the next level.

Dubai Silicon Oasis is also planning to build a smart city. Is it interlinked?

Amr Salem: Yes. It has to be interlinked. Dubai being smart by itself means the government, processes, policies and services are efficient and effective. Developers are also a part of the city and each one needs to work towards making the initiative a success. So, there cannot be intelligent street lighting and free Wi-Fi on the beach. All modules need to be balanced. You cannot excel in one domain and fail in the other. It boils down to economic and social sustainability. As H.H. Sheikh Mohammad said Dubai’s smart city is about smart people, smart citizens, smart tourism and smart trade. All of these elements need to be taken into consideration.

Since the impact of IoT, Big Data and Cloud technology is unmeasurable, how does Cisco plan to manage something that is unmeasurable?

Amr Salem: The impact is measurable. It depends on the applicable use case. For example, if wearables are considered a part of IoT, the impact is unmeasurable. It makes a huge difference to Apple but not to an average person. When the lightning system within a smart infrastructure reduces energy consumption by 75-80%, this is measurable. This is measured in terms of the money invested back into the infrastructure of the city. The reduction in time spent on searching for a parking place cannot be quantifiable but counted. If the GDP per capita is $20,000 and Cisco helps you save three months’ worth of money, this impact can be measured. www.robustrak.com

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SMART CITY On the whole, benefits delivered to the people are measurable. In ‘Value at Stake’ analysis by Cisco, all the areas impacting the smart city through reduction in costs or increase in productivity for the workers and the citizens is accordingly determined. In both cases, Cisco topped off the analysis with a figure that represents the gains of city. This analysis was carried out worldwide and combining productivity gains and operational costs, the result was worth $19 trillion.

Unless the cost of living decreases, the city cannot be termed as smart. The model can only be a success when the last denominator i.e. the consumer gets the value. Is it?

Amr Salem: Unfortunately, there are other factors namely the foreign exchange rate, the cost of energy, availability of reserves, and quantity of oil distributed by OPEC, are instrumental in distributing energy to the consumers. A couple of years ago, oil was purchased at $100, thus, all airlines introduced a surcharge for fuel. Today, oil is sold at $50. Will you be undercharged by the airlines? Definitely not. I don’t know the impact generated when the consumer obtains energy and how it would come into play. By the way, deflation is not conducive for any economy. Inflation is favourable as the city is evolving. When the city advances the cycle of money increases, thereby boosting the GDP. There are an array of external factors that influence the evolution of a city. Nevertheless, it doesn’t mean that the smart city will not impact the citizens in a positive manner.

How does Cisco plan to empower SMEs in technology so that they understand initiatives by Cisco and the role they will play in the smart city ecosystem? Amr Salem: We believe in partnering in every industry. There is a global ecosystem strategy applied in every industry associated with Cisco. The strategy consists of three pillars – low touch, medium touch and high touch. The ecosystem constitutes global partners, regional partners and local partners that mainly focus on their respective cities. Evidently, the local partners want the products to benefit the SME community.

They want products for the people and do not want to impose their services on them. The key to development is creating an ecosystem of companies within the city and Cisco does the same. For example, the parking application designed for Barcelona is different from that in Los Angeles or Adelaide. Cisco finds new partners who have the capability to provide these apps to a city. Later, Cisco provides them with the API integration enabling them to generate their own business. Also, Cisco has multiple programs worldwide that aim to invest in SMEs, fund them against equity and encourage them to create new solutions and products. In short, Cisco aims to benefit the SMEs. Most importantly, IoT is a new wave and there is no big dark horse dominating this domain yet. Will an SME manufacture tyres? No. It is a crowded sector which has big players leaving no room to grow. Moreover, the capital required to manufacture tyres is humongous. Now, IoT being in its infancy provides plenty of scope for new players and their creative ideas. The standard governing IoT have not been set yet. There are many grey areas in this region which need to be defined. The SMEs will be able to define these sections of IoT. Engineering capability is essential for a SME. They need the right business model, right coaching, right Venture Capitalist, who will guide and help SMEs penetrate the market. The idea may not attract business because the SME may have the wrong business model support, marketing capability, pricing and channels. To sum up, a good idea isn’t sufficient to make a mark. Lastly, don’t think of the US as a successful model. The US is inhabited by 400 million people, so any good idea has the chance of working due to the economies at stake. UAE has approximately 5 million people, out of which 2 million may be consumers, so a SME needs a ‘great’ idea to churn profits. If you appeal to 5% of the buyers in a country inhabited by 400 million people a SME can make a profit. However, if you appeal to 5% of the buyers in a country with 2 million consumers, the SME will go bankrupt.

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Robust RAK JULY â&#x20AC;&#x201D; AUGUST 2016

ENTREPRENEURSHIP

Horizon 2020

The champions league for small, innovative European companies Horizon 2020, a specific instrument for small and medium sized enterprises, aims to identity small companies with high innovation and strong growth potential. 38

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JULY â&#x20AC;&#x201D; AUGUST 2016 Robust RAK

ENTREPRENEURSHIP

urope is a vibrant continent for technological innovation and knowledge creation but commercialisation of knowledge here is lower than in other parts of the world. Although Europe has a high number of start-ups and small companies, a fullyfunctioning risk capital market is still lacking and these firms have difficulties finding necessary funds to engage in new markets or to disrupt existing ones. Therefore these companies cannot grow and prosper to their full potential. It was with this background that Horizon 2020, a specific instrument for small and medium sized enterprises within the European Research and innovation Framework Programme, was created in 2014. The Instrument has a budget of around â&#x201A;Ź3 billion in grants until the year 2020. It aims to identity small companies with high innovation and strong growth potential. Funding is provided after the initial start-up or seed phase, often referred to as the "Series A" round. Inspired by the US Small Business Innovation and Research Programme (SBIR), the instrument consists of three phases. The first phase provides the company with a small grant of 50,000 to identify detailed market conditions and risks, to study customer trends or ensure the availability of the necessary intellectual property in order to pursue market opportunity. The subsequent second phase provides a grant of 1 to 4 million to roll out growth and market strategy. Providing fresh funds to companies is important for them to overcome

Horizon 2020 aims to attract private investments, to foster links between funded companies and corporates or public procurement entities.

the so-called "death valley." However, recent studies of successful innovation environments have shown that the provision of soft services, in addition to finance, helps considerably in realising the companies' growth strategies. This is what Phase 3 is all about. The supported companies receive business coaching helping them strategically develop and position the company. The instrument also aims to attract private investments, to foster links between funded companies and corporates or public procurement entities and supports attending trade fairs and oversea trade missions. One of the supported enterprises is Watly.co with facilities located in Spain and Italy. The company is pioneering ways to provide solutions to fundamental and global human needs - access to clean water and sanitation, free-energy and connectivity. It creates technological solutions powered by clean and renewable energies that respect the Earthâ&#x20AC;&#x2122;s ecosystem. Through innovative design and an unconventional engineering approach, it builds upon advanced and beautifully designed solar water purifiers and micro-power stations in the world. After a successful Phase 1, the Phase 2 grant has helped the company gain credibility and exposure. It is about to launch a massive crowdfunding campaign on the Indiegogo.com platform and is negotiating with potential VC investors to raise 10 million. It is looking to launch a unique line of product for the UAE and Qatar markets. Watly.co is one of over 200 European small companies supported by the instrument since April 2014. A very competitive scheme, it ensures that less than 1 in 10 companies applying have a chance of support after a thorough technological and commercial scrutiny. We have good reason to believe that the supported companies will grow and progress and become true European champions.

Bernd Reichert, Executive Agency for Small and Medium Sized Companies Brussels, Belgium.

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Robust RAK JULY — AUGUST 2016

CLOUD

Cloud Best Practice Promotes Savings The beauty of a cloud platform is that it runs core, standardized systems and processes, yet can host the functions your business needs to develop and integrate with your core systems.

he phrase “business best practice” can often raise hackles among entrepreneurs. It smacks of processobsessed corporates rather than the more agile business that relies on distinct differentiators to grab customer share from larger competitors. Best practice can deliver radically superior results to those achieved by other means. It is not confined to processes, as many would believe. It can be a visual way of expressing a transaction, or a graphics-rich, single dashboard with analytics and tools to help find valuable information, or even just an approach to the way we write an e-mail. Adopting best practice saves money and helps your business be more responsive to market trends. Most notably, standardizing on the right best practices will, at a very low cost, establish a foundation that will support the business as it grows. A good example of how this can work is a financial period close process. As the company accountant sits at the breakfast table and sees the little red icon on his tablet flashing, it can indicate that an action is needed on one of his KPIs. He can start a dialogue around that KPI with people that need to be involved, on a secure social platform on which they can collaborate. After a few exchanges and inputs from colleagues, he decides that a journal adjustment is needed. A year later when the accounts are audited, there is a trail of decisions taken and how those decisions were reached. By having that (internal) social platform on the cloud, alongside financial systems, they have access to rich information as well as verification of the decision-making process. Oracle’s Software as a Service (SaaS) solutions include all aspects of running a business from HR and supply chain to financials, reporting, supply chain and procurement. We

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JULY — AUGUST 2016 Robust RAK

CLOUD are firm believers in best practice and have saved $1 billion by implementing it ourselves. By no means are the processes so rigid as to lock out what makes our company unique and the same applies to our customers. Modern best practice is tailored by business function and by industry. A “straightjacket” approach would hinder business growth. The beauty of a cloud platform is that it runs core, standardized systems and processes yet can host the functions your business needs to develop and integrate with the core systems. All this comes at a cost that you can control. As part of its commitment to enable our customers in transforming their business by adopting the right end-to-end business processes, Oracle has published Oracle Modern Best Practice, an ever-expanding set of next generation best practices enabled by cloud, mobile, analytics, social, big data and the internet of things. Oracle Modern Best Practice is open and easily accessible at www.oracle.com/modernbestpractcie.

Standardizing on the right best practices will, at a very low cost, establish a foundation that will support the business as it grows. You know you’re ready to move to the cloud when: 1. Latest IT developments become a management discussion Companies that recognize that, cloud, mobile and social are essential for innovation, business growth and competitive advantage, bring the cloud conversation into strategic discussions. 2. Line of business users are driving integration discussions Employees, business units work together with IT to integrate systems successfully. 3. Companies are modernizing their IT infrastructure Spreadsheets, e-mail and department-specific software such as accounting packages and payroll systems start giving way to cloudbased, company-wide systems. 4. Customization gives way to business best practice Businesses recognize that software can drive business best practices, yet still be flexible to accommodate competitive differentiators. 5. Talent demands a new way of working New employees expect to have access to business functions on any device, including mobile.

Khaled Ismail joined OracleDirect ECEMEA as Applications Leader after 20 years in the IT industry, 18 of which were in Oracle between Egypt and Saudi Arabia, in both the Applications and Technology LOB’s; with a great track-record of successes in all the functions assigned to him.

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Robust RAK JULY â&#x20AC;&#x201D; AUGUST 2016

SME EFFICIENCY

Managed print services lower SME costs

ith the changing priorities forced upon many in the SME community by the financial downturn, it has become apparent that those who have not invested in solutions, and in particular their printing infrastructure along with document management, will have paid a heavy price. Today the small and medium sized enterprises are savvy and they have to be. While these enterprises

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may be more ambitious and determined than before, they are still operating with restrictions of cash flow, available capital and human resources and are constantly seeking â&#x20AC;&#x2DC;smarterâ&#x20AC;&#x2122; ways to add value to their business efficiency and overall productivity. In recent years, Managed Print Services (MPS) and document management practices have emerged as a key solution for the SME community. These services are currently at the tipping point of evolving

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SME EFFICIENCY

According to Gartner, most organizations could cut their printing costs by 30-10 percent. The potential for savings is huge. beyond the core service of device consolidation, and are steadily moving towards ‘smart’, value-added business efficiencies within paper-dependent processes. Consistently recognized as a proven approach for reducing costs, improving work flow and productivity, MPS helps small and medium sized enterprises across diverse verticals to focus on their core business.

When to consider an intervention?

Today the printing environment has become increasingly complex for the SME community. A recent study conducted by CoreData with 1,000 SMEs found printing issues were among the top office frustrations. About 37 percent said that they regularly waste time on printer-related issues and over 50 percent said they spend more than half an hour a week resolving these issues. Lowered productivity for organizations is just one unhealthy side effect of a mismanaged office print environment. In fact, industry estimates also suggest that many small and medium size businesses spend between one and six percent of their annual revenues on printing. According to Gartner, most organizations could cut their printing costs by 10-30 percent. The potential for savings is huge. Most SMEs, however, are not aware of how much they spend on printing. It is often categorized as an unknown cost yet it can be a hugely significant one. They often reckon that the tools needed to manage the range of printing devices and ensure high performance, smoother work flow and security required for seamless functioning of the business require specialist IT skills. This is where they need to be informed about MPS and how a solid and ‘smart’ approach to MPS can help companies to shift their focus from cost to value and help increase employee productivity and make businesses run more effectively.

Use MPS to unlock your company’s potential

MPS is no longer the domain of large enterprises or corporations; it is being increasingly advocated and implemented by smaller and medium sized businesses in the Middle East region. For small and medium sized businesses, one of the main reasons cited for the adoption of MPS is that many of the mundane but critical print management tasks are taken care of by a service provider (third party). This, in turn, enables their staff to focus on the core business.

The long-term benefits of MPS implementation are far-reaching for most SMEs. These businesses can typically cut down costs as this approach offers visibility into their printing process, enabling the organization to monitor the overall number of prints and revealing where volumes are high, while making necessary adjustments as and when required. This service also allows SMEs to plan their expenditure more effectively. SMEs can drive up productivity levels and benefit from access to the latest print technologies, which will not only reduce their carbon footprint, but also contribute to a more secure print environment and above all, save money for the organization.

What’s ‘Next’?

Implementing MPS solutions in small and medium sized enterprises is by no means the end; it is just the beginning of a journey for these enterprises to improve their overall productivity and revenue. Currently the trend is moving towards a digitalised, less paper environment among the SMEs. Now, more than ever, workflow automation is a necessity for SMEs, especially while dealing with continuous document workflows within/between departments, document life cycle and storage management, partial or full processing of paper forms etc. Industry leaders have already started offering the Next Generation MPS Strategy that can further enable the SME community to improve their businesses processes and be more successful. The long-term vision for the SME community in the Middle East should be moving towards a completely digitalised environment in the coming years. To sum up, this strategy is all about working smarter, helping the SME community connect with their clients better and bridging the digital and paper universes to help them better understand, protect and use information more intelligently.

Simon Howells joined Xerox in 2003 and currently is the MPS Manager for Xerox MEA Global Document Outsourcing arm based in the UAE. His primary role is to expand the company’s Managed Print Services division to address the needs of all businesses in the Middle East including the partners across each country in the region selling Xerox Partner Print Services.

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CORPORATE

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Robust RAK JULY — AUGUST 2016

CORPORATE LIFESTYLE

NEW BENTLEY CONTINENTAL GT SPEED

Image Courtesy: http://www.bentleymotors.com

From the moment your hands grasp the new Continental GT Speed’s sport steering wheel, you’re aware you’re taking control of Bentley’s ultimate two-door coupé. The twinturbo engine produces an awe-inspiring 64s PS and 840 Nm of torque yet, thanks to the variable power assisted steering – which provides increased economy and reduced emissions – the drive remains precise through the most demanding corner. The only equal of such limitless power is the exquisite reﬁnement to be found in the Speed’s redesigned cabin, this introduces a more dynamic look to the upholstery, with a smaller, tighter diamond pattern in the hide. If you love to drive far and fast but insist on travelling in absolute luxury, the Continental GT Speed awaits.

LOUIS VUITTON'S ROBOT MUSE Could this be the future of fashion? Louis Vuitton’s SS16 womenswear collectionis inspired by Japanese manga and the French fashion house revealed last month that the star of their new campaign is not a super model or Hollywood starlet, but a computer-generated character from cult Japanese video game, Final Fantasy. Now normally, we here at Esquire are more interested in the men’s side of the fashion spectrum, but the use of Final Fantasy as part of a high-fashion marketing campaign is certainly enough to peak our interest. Louis Vuitton’s creative director Nicolas Ghesquière revealed candy-haired Lightning, Final Fantasy’s main protagonists created by video game artist Tetsuya Nomura, is the star of their new ad campaign with Lightening dressed in looks from his latest runway collection.

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JULY — AUGUST 2016 Robust RAK

CORPORATE LIFESTYLE

RAYMOND WEIL HONOURS THE BEATLES Luxury Swiss watchmaker Raymond Weil has come together with the to mark the company’s 40th anniversary. The result: The Maestro Beatles Limited Edition timepieces to salute music’s most celebrated group. The watch features a mechanical self-winding movement in a 39.5mm polished steel case, with 13 Beatles’ album titles engraved all around the dial. Each Maestro Beatles timepiece comes with a dedicated watch case. Now available. Call: 04-2066970.

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Robust RAK JULY — AUGUST 2016

CORPORATE LIFESTYLE

LAMBORGHINI'S HURACÁN - THE MOST FUN RAGING BULL YET

Image Courtesy: Image: Lamborghini And Image: Nick Jaynes/Mashable

Lamborghinis are for making statements. They can say anything from "I'm richer than you" to "I'm Batman" — and everything in between. Specifically, the Huracán Spyder tells onlookers you care for suntans as much as speed. The $1.9 million Centenario says that you wish you were a bumble bee. However, the new entry-level Huracán LP 580-2 says to the world that you're a driving enthusiast. Or at least it should. That's because between the new flatter nose and rear-end, this Huracán is a simpler, lighter Lamborghini.

supercars, the naturally aspirated (meaning it has neither a turbo nor a supercharger) 580-2 enjoys an immediacy in its power delivery that is simply missing from smaller turbo-charged engines. And that's what I love about the 580-2. Lamborghini has taken things away to make it cheaper. But by removing some stuff, like a bit of power and half of the high-tech drivetrain components, it's made the car better. The Huracán is no longer a calculating Italian power machine. It's now the mad Lamborghini we always hoped it'd be.

LESS POWER, MORE FUN

The Good

Mounted in the mid-rear of the Huracán 580-2 is a 5.2-liter V10 that produces — you guessed it — 580 horsepower. Although this is less than the other Huracán variants, the 580-2 routes its power solely to the rear wheels through a 7-speed dual-clutch transmission that can be shifted in either automatic or manual modes. Since it's propelled only by its rear wheels instead of all four, it weighs 66 pounds less than its more potent brother, the 610-4. You feel so connected to the thing, through its quick steering, grabby brakes and lightning-fast throttle response. Unlike the slew of new turbocharged

Switchblade-like looks • A raucous V10 engine • Fiendish cornering capabilities

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The Bad Interior trim is a bit chintzy • Impossible to Bruce Wayne two supermodels into the cabin

The Bottom Line Lamborghini's Huracán LP 580-2 might be its entrylevel car, but it's also the Italian supercar-maker's finest driving machine.

JULY — AUGUST 2016 Robust RAK

CORPORATE LIFESTYLE

DE GRISOGONO OPENS FIRST DUBAI STORE Luxury Swiss jewelry brand de grisogono has launched its first Dubai store in the Dubai mall. The 175 meter boutique comprises of three rooms, each having a different purpose. The corte room showcases a jewelry collection personally chosen by gruosi, the stanza del tempo room houses de grisogono’s timepiece collections, and the grande sala is a private guest room. The boutique itself is decked out in glass chandeliers and mid-century Italian furniture chosen personally by grisogono founder Fawaz Gruosi from the opera gallery in Dubai. De grisogono’s founder is a black diamond specialist known for his intricate and colourful stone creations. He was among the first jewellers to use black diamonds. The jeweller has dressed countless celebrities including supermodel Irina Shayk and actress Eva Longoria. The brand’s Dubai store marks its second branch in the UAE, the first being in Abu Dhabi’s Etihad towers. Image Courtesy: http://www.arabianbusiness.com

DUBAI'S TALLEST TOWER and a ‘MEGARETAIL DISTRICT’ FOR EXPO 2020 The architect behind a new US$1 billion Dubai tower that will stand higher than Burj Khalifa says it will represent a nation like The Eiffel Tower. The Paris landmark was built for the 1889 Paris Expo. Now Dubai’s Emaar Properties is aiming to emulate that architectural impact as preparations get under way for Dubai’s own Expo 2020. Emaar Properties will attempt to deliver the new Dubai Creek tower and a linked “megaretail district” at the same time so that they are both open by the time Dubai’s Expo 2020 event begins . Although the overall height of the tower, which will cost about $1bn to construct, was not revealed, Mr Alabbar said it would probably “be a notch taller” than Burj Khalifa – currently the world’s tallest tower but due to be surpassed by the proposed 1km-high Kingdom Tower in Jeddah in 2018.

Image Courtesy: http://www.thenational.ae

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