The Intelligent SME-5th edition

Issue 5

Dec. 2011 - Jan. 2012

Price: AED 10

Gives your business an unfair advantage www.theintelligentsme.com

The official magazine

Making successful innovations

March 5-7, 2012

How Arch. Khalifa A. Al Jaziri brought smart automation to the UAE. Pg 18

The rise of Women Entrepreneurs What drives successful business women to create their own path? Pg 59

Pg 9

Does your employer cover you?

Health insurance soon to be 42 42 mandatory in Dubai. Pg Pg

The No.1 Platform of SMEs in the UAE Strategic alliance partner Corporate partners

CONTENTS DEC. 2011 - JAN. 2012

08 Rare and fabulous

Status symbols for those who have arrived.

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42 Special Focus: Health Insurance

* Are you insured? * A risk carrier’s perspective

Announcements

A round-up of the important business news.

14 Innovations sans frontiers

Kristina Nyzell explains how innovation and collaboration go hand-in-hand.

16 Positive outlook for tourism

Dubai SME’s industry study on the tourism sector.

28 SME Pulse: Steady as it goes The Q3 SME Business Confidence Survey reported slow performance in the third quarter of the year 2011, writes Alexandar Williams.

22 Role of international standards to meet global challenges

Quality can be achieved through effective management systems.

34 Hiring and firing at will

John Lincoln writes on the significance of emotional intelligence, a very important characteristic that is desired in employees in order for them to do well in their jobs.

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A tale of a successful SME

Arch. Khalifa’s accomplishments

38 Immense opportunities in the logistics sector UAE’s transport and logistics sector is on the move, a TIS report.

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Supported by

Doing business in Dubai just got easier The new business law issued in Dubai will enhance the emirate’s positioning as a business hub, writes Zed Ayesh.

50 Where do we go for Chinese food tonight?

Branding strategy is an important consideration in the F&B industry, explains Dr. Rinsho Shin.

52 Let’s get social Farrukh Naeem answers your queries on using Facebook, Twitter, SEO and any other online services.

54 How to start enjoying your work

56 Is your audience seeing your real value?

59 Women Entrepreneurs * Staying ahead of the curve: Lama Bazzari * Work hard, network harder: Sue-Sharyn Ward

70 SME Offers - Service provider’s network

74 Leave thy ego, not thy consultanant

Utpal Bhattacharya on why you can ignore a good consultant at only your own peril.

Be a Connector

EDITOR’S NOTE

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here are still many companies in the country that find it difficult to reap the benefits of their efforts. It seems like an uphill task where the right results are just not achieved, some say. Why is this happening? Many companies, especially service-oriented ones, are still not able to get the right finance for their businesses, as they do not have hard assets to back up their loan applications.

There are many reasons that build up to situations that go against companies at banks. For instance, a company may not have right documents in place when they go to file applications for loans. Many companies do not have the know-how of getting their accounts audited; some cannot even afford to do so. Right documentation is important when a company goes to ask for money from a bank.

Besides, most banks in the region are still not warming towards cash flow based lending. So, even when books of companies are properly audited, there is hardly any appetite to lend, unless it is a secured loan, backed by hard assets. Some say that banks in the region need to change their mindset, and make efforts to understand businesses and just not ask for collaterals, all the time. If that happens, half the issues of SMEs, that comprise 95 per cent of the local market, will be solved.

Getting the research right, understanding company needs and reflecting on these findings with positive results requires another key ingredient to the mix – the right data. Companies need to be encouraged to input their data in a common pool, which should be a governmental institution that records information on their behalf for purposes such as financing.

In other words, we need a good statistical infrastructure in the country.

The above and more items have been deliberated on, many times in various forums. It is time that some action is now taken for the SME sector, which contributes the most to the economy. The country owes it to this sector and many hardworking individuals who, in spite of contributing so much, are still seen as a risky investment proposition.

Giving this sector the right support, is the right way to go. We would be delighted to have your opinions on this important issue. Broadcasting your opinion would go a long way in creating a buzz in favour of SMEs. It will also help in nurturing a right SME environment in the country. Write to us, e-mail us, and make your voices heard.

Chief Executive Officer & Publisher Shantanu A.P Account Director Vijay G. VP Business Development Shraddha Barot Amariei Editor Sandhya Divakaran Consulting Editor Utpal Bhattacharya Expert Contributors John Lincoln Kristina Nyzell Kevin Abdulrahman Alexandar Williams Karen Osman Anesh Jagtiani Farrukh Naeem Zed Ayesh Dr.Beena Nair Dr.Rinsho Shin Dr.Sameer Kumar Art Director Aneesh Varghese Web Designer Hoze M Editorial Enquiries & Contributions Tel: 04-2659704, 04-2650312 Fax: 04-2690566 E-mail: editor@spiholding.net Advertising Enquiries Tel: 04-2659704, 04-2650312 E-mail: info@spiholding.net Subscription Enquiries Tel: 04-2659704, 04-2650312 E-mail: subscribe@spiholding.net Response Executive Melanie Castro

Sandhya Divakaran

SPI Publishing Post Box: 89735, Dubai, UAE Tel: 04-2659704, 04-2650312 Fax: 04-2690566, 04-2651708 E-mail: info@spiholding.net Website: www.spi-holding.com

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.

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

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

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

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

“Old is gold” The Intelligent SME (TIS) chanced upon a tête-à-tête with Tariq Malik (TM), managing partner of Momentum, Dubai’s first vintage watch boutique, located within the Dubai International Financial Centre.

TIS: What is the inspiration behind this unique idea?

TM: Watches represent different eras, lifestyles, events, and personalities. Each watch has a history behind it. Momentum consists of likeminded partners and friends who share an interest in vintage watches. We wanted to bring a new and unique concept to Dubai. We tried to diversify our collection by bringing watches of different eras with a wide price range, without compromising on quality.

Watches are not just an instrument of time.

Each piece has a story to tell, a history, a great achievement or event behind its making. If you are passionate about watches, you will notice that the design of watches reflects its era. A collector of watches can tell you, in one look, which era the watch represents. We have designed a platform to share these stories. We also want to clarify that vintage does not only mean secondhand, it is about quality, and its value is not reduced by change of ownership. Vintage is more about an experience. You have to picture the era and take in the past.

TIS: How long have you been interested in vintage watches?

TM: My own passion for watches started in high school with the Swatch brand. During that time there was a Swatch collectors’ boom which was new even for Europe. In the beginning it was just a pastime for me, but with time I began to appreciate the finer details, such as the craftsmanship and the technical features of watches. I slowly converted this passion to a profession. It’s an addictive hobby; once you’re caught in the web, you can’t let it go. In today’s fast-paced, automated world, many things are spiritless. I feel it was different in the past. It was the same for cars, clothes and so on. There was more attention to the finer details then, there was a greater expression of craftsmanship. We strive to bring a little of the past to the present.

TIS: What is the nature of work that has gone in setting up Momentum?

TM: Momentum has 25 years of combined experience in watches. This is not something you can learn from a book and know it all. You have to live it, and follow events and eras. We don’t offer something from a catalogue. There is no catalogue for vintage. It is a lifetime of learning.

As for the store, we did our market research and set up the shop in seven months’ time.

TIS: Where do you source your watches from?

TM: We source most of our watches from

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Europe. We have a team there that does regular sourcing by approaching private dealers, collectors, and visiting auctions.

The fascinating element about vintage is that a collector may have the original piece that began a trend and that continues to inspire current trends.

TIS: What brands do you have in your collection now?

TM: We have major brands such as Rolex, Omega, and Cartier, to mention a few. We have some pieces starting from AED2500.

What is interesting is that today many people hesitate to enter high-end shops because they feel inhibited. But we have clients who are not collectors or don’t know about vintage watches, or people who have worked hard to buy a watch that is special to them. Some of them would like to learn more about what we do.

Our store is open to everyone.

Right now we have watches from the ‘30s, the vintage era, the classic era and a few contemporary style watches. We

also give a house warranty of three months no matter how old the watch is.

TIS: What is the response to Momentum?

TM: We’ve had tremendous positive response as it is such a unique experience. It has been so great that we already have to stock up after one month of operation. This is encouraging, and we are inspired to focus far more and deliver on our promises.

We’re doing something unique, and if we have to inform people about vintage watches, we have to do it responsibly, and give them as accurate information as possible.

TIS: What makes Dubai a special location?

TM: Dubai is an amazing location for vintage watches due to its fabulous retail environment.

There are hundreds of watch shops in various malls and outside. But our idea is not to

compete with these stores. We want to provide a comfortable atmosphere where watch lovers can get together, and position Momentum as a one stop shop, where they get information, servicing, accessories and above all, a great experience without breaking the bank. DIFC, for that matter, has proved time and again, that it is a cultural hub with a sophisticated crowd and has the right ambience.

We feel at home in the DIFC. TIS: What is your take on the watch industry?

TM: Dubai is one of the most advanced markets when it comes to watches and other luxury items. There’s a definite upward trend. The industry for Swiss watches is going through a renaissance worldwide.

People appreciate watches as investments or as collectors’ pieces. It is a little like art, although not as expensive. We see a good trend in the industry and plan on expanding the business soon.

The Intelligent SME

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Youthful, fun-loving Farfasha from Damas E

mbrace your inner playfulness with Farfasha, the latest collection from Damas.

Made just for vibrant, youthful and fun-loving women, Farfasha’s latest collection is available in seven themes with more than 160 designs.

The collection draws its inspiration from the mysteries of nature, and comes in exquisite patterns and designs.

An array of bracelets, anklets, earrings, rings and necklaces/belts are available in this collection. 

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Redefining fine dining E

xperience fine dining at the Michelin-starred Cantonese restaurant Hakkasan at the Jumeirah Emirates Towers Hotel.

A lavish retreat from the bustling city, the new 152-cover restaurant features a dramatic entrance through its iconic long corridor in slate stone and offers an additional 88-seat capacity on its outside terrace. Hakkasan Dubai’s stunning terrace features as the perfect venue for both private gatherings and large parties.

Designed by Gilles and Boissier, the ambient venue features two private dining rooms inside and two semi-private sections outside with spectacular opulent architecture, as well as the Ling-Ling lounge with its sensual colours of black, gold and white for a more relaxed retreat.

Located in the Boulevard, on the ground level of the Emirates Towers hotel, Hakkasan has its own private entrance with valet parking for its customers.

Heading the Hakkasan Dubai kitchen is Chef de Cuisine Pang Pin Lee from Hakkasan Abu Dhabi, who brings with him over 10 years experience in gourmet Cantonese and the art of Dim Sum. Chef Lee infused his own style to the menu with new dishes that have been specifically crafted for the UAE market sitting alongside celebrated Hakkasan classics such as the Peking duck with Royal Beluga caviar, steamed dim sum platters and grilled Wagyu beef with King Soya sauce.

Since its opening in Abu Dhabi last June, Hakkasan quickly earned its title as the Emirate’s newest hot spot, attracting the likes of Uma Thurman, Morgan Freeman, and Clive Owen, achieving a staggering line up of accolades as a testament to its success.

Hakkasan Dubai is open daily to the public for lunch from 12noon-3pm and from 6pm-2am for dinner, drinks and bar snacks, with last dinner orders taken at 12am.

For reservations, please call 04-384-8484.  The Intelligent SME

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A most exquisite touch by Vertu C

reated to seamlessly complement and enhance a discerning lifestyle, the Constellation touchscreen smartphone by Vertu strikes the perfect balance between the art of craftsmanship and modern technology offering a range of exclusive services.

Constellation performs on all levels, not only in terms of material performance and unparalleled customer services, but also in terms of its technical specification.

Constellation is a truly global product with quad band GSM, penta band WCDMA, HSDPA coverage. 32GB of fixed user memory ensures plenty of storage for documents and images.

Each Constellation is hand made by a single craftsman using only the most state of the art technologies and manufacturing techniques.

High performance materials are used in the curation of this product, such as an 8 megapixel camera with an intricate ruby surround on the shutter key, polished ceramic pillow, surgical grade stainless steel with satin and polished finish, high quality leather on the back plate of the phone as well as Vertu’s unique high fidelity sound system. Other technical specifications include Bluetooth with A2DP, an FM radio, free global maps and navigation by Assisted GPS with Accelerometer and Digital Compass. Prices range from €4,400 to €10,900 and the Constellation is available at all Vertu stores. 

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Grande Classique, TAG Heuer Carrera 1887

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ag Heuer’s latest collection, the Tag Heuer Carrera 1887 Chronograph was recently launched by none other than Lewis Hamilton, Vodafone McLaren Mercedes F1 driver and TAG Heuer ambassador recently in Dubai.

Celebrating 150 years of Tag Heuer, the TAG Heuer Carrera 1887 Chronograph extends the mythical Carrera collection, which was created in 1964 by Jack Heuer.

It is the 21st century design evolution of the 1964 icon, more than ever celebrating and emphasising its original minimalism, purity, readability and understated elegance.

Vibrating 28,800 times per hour, the Calibre 1887’s 39-jewel, 29.3mm x 7.13mm movement is made of 320 components and has a 50-hour power reserve. A

celebration of 150 years at the forefront of luxury chronograph design, it proudly displays its star component — the Calibre 1887 mechanical chronograph movement, with its blue column wheel, top quality Swiss balance spring with micro-blazed finishing, and TAG Heuer oscillating weight — through its stunning sapphire crystal case-back.

The tachymeter scale on the satin-polished bezel identifies its motor-racing heritage, and the high-end finish and optimised proportions of the silver and black dial distinguish it instantly as a grand classic in the Carrera tradition. Water-resistant to 100 metres, its unique folding bracelet has double, lateral-pressure pushbuttons for greater security, ease of use and greater comfort.

TAG Heuer’s Carrera 1887, is now available in all TAG Heuer boutiques across the region. Price available on request.  The Intelligent SME

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Stay luxuriously at Jumeirah Vittaveli M

ake a trip to the newly opened Jumeirah Vittaveli resort in Maldives this holiday season. The ultra luxury resort catering for couples, families and small groups is the second Jumeirah property to open in the Maldives this year.

Nestled in a spot of astounding beauty, Jumeirah Vittaveli offers 91 villa-suites, all with their own spacious private pool. With accommodation options on the island and over water, the resort highlights include three restaurants, a bar, a Talise Spa and comprehensive facilities for young children and teenagers.

Every consideration has been taken for the enjoyment of the younger guests as well as preserving peace and tranquility for the adult visitors. The resort features Sinbad’s Kids Club for children from two to 12 years of age,

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and a teen club for those aged 12 and above, both offering interactive, fun and educational programmes for all ages. In addition, a dedicated family and children’s pool has been created, adjacent to the Kids and Teens clubs.

The resort also offers specific children’s menus in all three restaurants and throughout the in-villa dining menu. Even Talise spa has introduced special treatment programmes for families. As for gastronomic delights, Jumeirah Vittaveli introduces Executive Chef Kai Boeddinghaus, whose work in Kameha Suite in Frankfurt previously earned him a Michelin star. Chef Boeddinghaus maintains a culture of excellence in the resort’s three restaurants, whether for relaxed al fresco dining by the sea, or cocktails and culinary sophistication within themed interiors, through his own unique style and flair combining modern Mediterranean and Asian influences.

Located a mere 20 minutes by speedboat from Malé International Airport, Jumeirah Vittaveli is a convenient option for travellers visiting the Maldives.  The Intelligent SME

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Made in UAE

becoming obsolete technology, were being used in homes. I recall using my brother’s credit card to make an online payment for the first time. This practice was quite new in the region at that time. In time, I researched more, read all books pertaining to the subject and began automating different appliances in my room. It is quite a coincidence that it all began from a junk mail!

TIS: How did you begin operations?

KAJ: After my family saw my progress, my brother decided to finance my passion. We started automating houses of relatives and friends. These small-time operations made us realise that we had to take it to a bigger scale.

Most of the products at the time were customised for the US and UK markets. We needed to have an alteration made for the products in the region, and therefore we approached a few companies in the UK. We bought 33 per cent shares in Domia Ltd, and I became a board member there.

A tale of a successful SME Arch. Khalifa A. Al Jaziri (KAJ), co-founder of e-Home AUTOMATION INTERNATIONAL, spoke to The Intelligent SME on the industry and his business.

TIS: What was the inspiration behind the unique concept of e-home automation?

KAJ: The e-Home AUTOMATION initiative began in 1999, although we launched the company in 2003.

We have been in the industry for eight years now. The concept of automation has been a pet project since my childhood. My fear of the dark, when I was a child, brought out these skills. My first rudimentary automation system involved a bulb

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stolen from our fridge, a connected battery and wires, which I set up in my room, so that when I opened the door, the room would light up. This was just the beginning.

When I became a teenager, I stumbled across junk e-mail that advertised wireless mini cameras, and this caught my attention. I researched further and came across a basic automation controls that hold the same name. These were primarily used in the military, and on

Unfortunately, these companies have their own agendas, and in spite of owning majority shares, we could not move the company’s interests in our favour. The response to the regional requirement was very slow, and so, we founded our own company in the UK, and registered our intellectual property. We have a research centre stationed there as well. This R&D unit has enabled us to develop software that is now recognised worldwide.

And as for our hardware, we opened an R&D branch in China. This groundwork has given us a presence in Hong Kong, Kuwait, Saudi Arabia, South Africa, and Egypt, and soon Qatar and Malaysia in the near future.

TIS: Are you the first to bring this concept to the GCC? KAJ: I am considered the first Arabic Engineer to bring this concept to the GCC. We brought in a holistic approach while other players concentrated on some aspect or

Made in UAE

the other. We have helped define smart homes in the region. Early December, we will be conducting a three-day training session in the Etisalat Academy where we will be certifying e-Home engineers, installers, and so on. I also hold seminars and training programmes worldwide.

TIS: What would you consider as your professional achievements?

KAJ: Our entire lifetime since the beginning of this company has been peppered with achievements. We started with two employees, and have grown to a company employing more than 100 people. We developed our corporate governance, without even knowing there was such a term. Dubai SME has been very supportive towards us, by giving us support in our launches, and by constantly encouraging us.

Our biggest achievements include the recognition that we have received from the government. We have received many awards as of now, e-Home AUTOMATION was given the award for best business in both IT and Electronics sectors in the Mohammed Bin Rashid Small and Medium Enterprise Awards for Young Business Leaders ceremony; we were also recognised as the best SME in the UAE which is at the GCC level, and we are a Dubai SME100 company. These achievements have come with hard work, determination and persistence to succeed.

TIS: How have you diversified your portfolio of products?

KAJ: Our first product was Extend, a very basic automation device. We have gone a long way from there.

Currently, we provide automation of all properties covering aspects such as lighting, temperature, appliances, curtains and blinds, multi-room audio/video, security, digital surveillance, entertainment and energy saving. Our specialist sub divisions are e-Health - Automation and innovation solutions for hospitals

and clinics, e-Masjid - energy saving and Islamic digital community applications for Masjids, and e-Office - smart buildings, security, safety and intelligent e-governance systems.

We have also launched three new systems: e-Home CONTROLS, a unified interface designed for a range of products, including touch screens, PCs, laptops, smart phones, PDAs, iPhones, ultra mobile PCs, Cisco IP phones, among others.

And our second new product is e-Homegreen, a complete, modular automation system that provides cost effective control systems for energy saving and management for new-build properties which provides lower system costs, higher levels of functionality and simple setup and maintenance. The third product is e-Homewireless, a range of wireless control modules designed to utilise existing home wiring to provide control over lighting, appliances and blind and curtain motors, whilst using standard in-wall switches to control individual modules or scenes.

TIS: How do you ensure quality in each product?

KAJ: I am fully involved in the development process. I give my ideas, and ensure the team gets a complete picture of what the regional needs are, so that they are able to give their fullest effort.

We also do all the testing in Dubai after being certified by international certification bodies.

TIS: What are the difficulties you have faced in the course of running your business?

KAJ: We have had our fair share of difficulties. Firstly, we’ve had financial troubles, some of our mega projects have been hit by the recession. Many real estate projects were cancelled and we were hit crucially. Secondly, at the time we began, there was no product in the region that we could benchmark against ours. It was all a trial and

error game, and we made slow progress. We learned from our mistakes. We also had the big task of differentiating ourselves from the companies that sold CCTVs and other products. We spent time making people aware and educating the market of the value of our products. We had to convince people that e-Home AUTOMATION is not a mark of opulence, but more a necessity to save energy.

TIS: Has that perception changed?

KAJ: Yes, there is quite a difference in perception now, especially in the younger generation. They would like to put the right infrastructure in place before even thinking about designing their houses. We are now an established brand. I have come across some people who use the term “e-Home” like an everyday product! It is a big achievement to be a generic definition, like Kleenex was in its heyday. This means, we have leaped ahead of competition.

We help in setting the codes, regulations, and standards as a regional benchmark.

TIS: What is your opinion of the industry?

KAJ: Currently, everybody has accepted that the market will not recover fully anytime soon. But our industry has not been hit in a big way. We have expanded our portfolio of products to cater to every property and, therefore, the market is still healthy for us. People are more cautious, they are slowly returning to the old spending habits. The industry is becoming more mature, focusing on steady, solid growth.

TIS: Who are your role models?

KAJ: I have my father as my backbone, but two people who have inspired me are H.H Sheikh Mohammed Bin Rashid Al Maktoum for his vision, capability, and sense of resilience and H.H Sheikh Zayed Bin Sultan Al Nahyan, for his generosity, love, and giving nature. 

The Intelligent SME

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Announcements

Updates you might have missed Standard Chartered Saadiq unveils new customer offerings in the UAE offering has been designed specifically for individuals and small and medium enterprises providing them with Shari’ah-compliant banking products and services.

Saadiq customers can now access the full range of banking products and services through Standard Chartered’s 600-strong frontline staff and sales representatives, who have been trained in Islamic banking.

Wasim Saifi, global head of consumer islamic banking, Sultan Ali Haider, general manager consumer islamic banking, and Vishu Ramachandran, regional head of consumer banking for Middle East, Pakistan and Africa at the Standard Chartered Saadiq press conference.

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tandard Chartered Saadiq, the Islamic banking arm of Standard Chartered Bank, has unveiled its new offerings for UAE customers

in response to growing interest and customer demand for Islamic finance in the country and across the region.

The enhanced Islamic banking

The Shari’ah-compliant solutions include current and savings accounts, term deposits, credit cards, personal, auto, and home finance, investment and takaful solutions for individuals. For SME customers, the bank offers trade finance, working capital facilities, cash management solutions and foreign exchange services.

Strategic data management to help companies yield competitive advantage: EIU

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ompanies and organisations that have started to implement formal data management strategies are inclined to derive more value from data assets and outperform its competitors, according to a recent global survey conducted by the Economist Intelligence Unit (EIU) entitled ‘Big Data: Harnessing a Game Changing Asset.’

The survey shows that only 18 per cent of 586 senior executives surveyed worked at organisations committed to collecting and

analysing data via a well-defined data management plan. Among those strategic data managers, 64 per cent put nearly all that data to good use. When asked about how their performance fared over competing companies, 53 per cent of those same executives said their financial results bested those of the competition, while 36 per cent of those without a data plan made the same claim.

The survey strongly reflects the message that big data -- which is

used in business analytics to develop insights from massive databases -- changes everything as growing enterprise data volumes threaten to overwhelm organisations that lack a broad data management plan.

The survey also clearly shows that most companies understand the value of big data, yet some struggle to exploit it. In fact, 45 per cent of the respondents pointed out that the biggest barriers are the presence of too much data but with too few resources to process it.

DMI Middle East launches diploma in digital marketing

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rish-based Digital Marketing Institute, in conjunction with its regional partner DMI ME, announced that it is bringing the highly successful professional diploma in digital marketing to the Middle East.

Developed by leading international digital marketing practitioners, in

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conjunction with leading global industry players, this course has been designed to help marketing managers and agencies understand how to plan, implement and manage a comprehensive digital marketing strategy.

This will enable them to grow,

engage and maximise revenue opportunities. An advisory council, comprising of organisations such as Facebook, Google, Microsoft, LinkedIn, Vodafone and other leading global industry players, will provide guidance on curriculum and content.

The diploma will be available in both Arabic and English.

The Intelligent SME

Announcements

Updates you might have missed ‘Skills shortage’ amid growing demand for financial services: Accenture drastically cutting its workforce, according to an Accenture survey of 47 executives at major banks in the GCC.

Amr Elsaadani

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he demand for skilled banking staff is outstripping supply in the Gulf region at a time when the Western banking industry is

According to the survey, a shortage of skills is the biggest challenge facing the GCC banking industry, aside from new regulation– especially as more global banks enter the market. A skills shortage was cited by 58 per cent of all executives surveyed and 69 per cent of those from the largest banks.

“As European and American banks undergo large domestic workforce reductions, financial institutions in the Gulf region are struggling with a shortage of skills to support the growing demand for banking services,” said Amr Elsaadani,

managing director of Accenture’s banking practice in the Middle East.

“The increasing customer orientation of these banks reflects an expectation that the pool of customers in the GCC is getting wider and deeper -- especially with regard to youth, women and SMEs, which have traditionally received little attention,” added Elsaadani. “To capture these markets, banks will need to ramp up both their retail and commercial banking capabilities.”

The survey revealed that an overwhelming majority of respondents (91 per cent) are investing in SME banking operations and a majority (85 per cent) will continue to invest in retail banking in their domestic markets.

MoF to boost national SMEs

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he UAE ministry of finance (MoF) is considering setting up an organisation in the country to keep records of mortgages of capital assets, mainly to help UAE national owners of small and medium enterprises.

Younis Haji Al Khouri

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Younis Haji Al Khouri, undersecretary of the UAE ministry of Finance (MoF) has announced that the ministry is currently studying the possibility of setting up an organisation to keep records of mortgages of capital assets to ensure funding for national small and medium enterprises.

Al Khouri explained that studies pertaining to this project have been in progress since the beginning of this year, in line with the decisions of the UAE cabinet.

MoF had created a committee to follow up on the research progress which includes members form the ministry of economy and the

Central Bank of the UAE, and other specialised parties.

MoF’s current studies are due to its commitment to alleviating all financial challenges facing national small and medium enterprises.

These include lack of funding options, the reluctance of banks to accept credit requests, difficulty in obtaining funding from banks, and other obstacles, which are a direct result of the inability of new businesses to utilise their capital assets as guarantees due to the lack of a special entity to register these assets.

Al Khouri went on to add that there were many benefits for establishing a specialised record for mortgages of capital assets, such as providing more financing options and lowering interest on small and medium investments. This will allow new businesses to use their assets as guarantees and to receive funding.

Announcements

Updates you might have missed Emirates NBD wins global award for brand leadership

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mirates NBD announced that it has won the 2011 global award for brand leadership in banking and financial services.

Emirates NBD’s “Truth and Reality” campaign also received the award for best marketing campaign of the year along with other leading organisations like Star, LG and DHL Express.

Vikram Krishna, head of group marketing and branding, Emirates NBD, receives the global award for brand leadership in banking and financial services.

The awards were received at the award ceremony held in the auspices of the World Brand Congress 2011, in Mumbai, India.

GE, Microsoft aim for global health care system transformation

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eneral Electric Company, through its health care IT business, and Microsoft Corp announced plans to create a joint venture aimed at helping health care organisations and professionals use real-time, system-wide intelligence to improve health care quality and the patient experience.

This new venture will combine Microsoft’s deep expertise in building platforms and ecosystems with GE Healthcare’s experience in clinical and administrative workflow solutions, empowering health care

professionals and organisations with the intelligence and capabilities to respond to the rapidly evolving and complex health care landscape.

“The complementary nature of GE Healthcare’s and Microsoft’s individual expertise will drive new insights, solutions and efficiencies to further advance the two companies’ shared vision of a connected, patientcentric health care system, ” said Jeffrey R. Immelt, chairman and CEO of GE. “High quality affordable health care is

one of the biggest challenges facing every nation, but it’s also an area where technology can make a huge difference,” said Steve Ballmer, CEO of Microsoft. “Combining Microsoft’s open, interoperable health platforms and software expertise with GE’s experience and health care solutions will create exciting opportunities for patients and health care providers alike.

Working together, GE and Microsoft can help make health care systems more intelligent and cost efficient while improving patient care.”

UAE to enhance competitiveness in 2012: Al Mansoori

H

is Excellency Sultan Al Mansoori, UAE Minister of Economy, said that the UAE economy is able to enhance the UAE’s competitive position during 2012 through its ability to deal with the economic variables of the financial crisis taking place in both Europe and the US. The minister pointed out that this crisis offers many opportunities for the UAE, which enjoys a strategic location and is a major gateway

for major world economies to the Middle East, in addition to economic and security stability and policies of openness and economic diversification.

The remarks came during a meeting recently with H.E Ase Elin Bjerke, the Ambassador of Norway to the UAE and H.E Poul Hoiness, the Danish Ambassador to UAE, where they discussed ways to strengthen the frameworks of economic cooperation and bilateral relations, especially in

the fields of innovation, research and pharmaceuticals.

Mr. Al Mansoori emphasised the UAE’s commitment towards the expansion of investment and technological cooperation with the Nordic countries, especially Denmark and Norway, to take advantage of their expertise in the areas of communications, education, technology, and generating clean energy in a bid to become one of the wealthiest states in the world.

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23

Innovation

Innovation sans frontiers Kristina Nyzell explains how innovation and collaboration go hand-in-hand.

F

ifteen years ago I made a visit to Philips Medical Systems’ headquarters in Eindhoven, Netherlands.

As I entered their premises, I remembered being greeted not by a receptionist – considered the norm in most workplaces -- but by a machine which said: “Welcome to Philip’s Medical Systems, how may I help you?” Apart from the visitors waiting in line to key in the name of the person they were seeing and receive a print out of a map with directions to the person they were meeting, there did not appear to be any Philips workers in sight.

Off I went with my map in one hand and my eyes closely fixed on the numbers on the closed doors. 232, 234, 433…

As I was walking up and down the corridors, looking for room 643, I bumped into a large number of confused and lost visitors, who like me, were trying to find their way around what seemed like an endless maze of dark windowless tunnels.

I remember thinking: How can closed doors and solitude produce innovative and creative ideas/ products?

The innovation game of today reads a different story. In the past 20 years since I visited Philips Medical Systems we have moved from a solitary, hierarchical and inside out model (closed doors) of innovation to one that is collaborative, open and outside in. Work is no longer confined to a desk behind closed doors, in an office or even to a building. Today, when we connect with our global network of experts and other innovation workers, they are as likely to be sitting in a Starbucks in New York as they

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are sitting at home, in bed, in their pyjamas in Taipei. We cannot tell as we collaborate via internet and communicate using Skype.

Collaboration Innovation can happen anywhere at any time where there is a place and a space, which enables people to connect, communicate and engage in a dialogue around a shared passion or goal. Where there is a shared passion and goal, individuals tend to be open, trusting, giving and collaborative towards each other.

Collaboration across geographical, cultural, physical, religious and age boundaries happens where there is a shared passion/purpose. Delivering towards that purpose/passion is dependent on the collaboration between individuals (sailing a boat).

Hence, giving is the currency with

which collaboration thrives and, it is that, which allows an individual and the collective to deliver on their shared purpose. Collaboration is limitless if our sense of purpose and passion is dependent on others in order to achieve.

Collaboration requires trust. Trust networks are places and spaces where a group of individuals co-exist under the umbrella of a shared set of guiding principles and a shared purpose in life, where individuals place confidence in the trust network’s ability to deliver more than the individual parts’ abilities, strengths and truths could deliver on their own. The currency of a trust network is ‘nemes’ (knowledge, ideas, insights and foresights). The speed at which nemes is circulated within a trust network and shared with a wider community, the more

Innovation

efficient and effective an innovation system will be.

and contradiction, conflict and randomness.

Businesses of today that wish to compete in a highly competitive market place must first learn how to build collaborative innovation networks and communities with and between co-workers, competitors, distributors, suppliers and ‘prosumers’ (proactive consumers).

For businesses to be successful they need to be able to find a way of retaining employees who are willing to not only challenge the status quo but also champion the move towards a new world order.

Back at Philips Medical Systems, and the year is 1997. Corridor after corridor of closed doors and in one of those corridors I bump into Peter, who is also carrying a map, wearing a blue Armani suit and a briefcase just like me.

I ask myself if tribal networks (family communities), where there is an overdependence on family connections for ideation and innovation, really can produce the kind of disruptive innovations that we have seen being generated by diverse and connected communities like Silicon Valley?

True innovation happens in diverse communities where conflicting ideation systems are allowed to rub against each other on a day to day basis. Innovation happens in diverse groups with a shared purpose and in the space “in-between” conflicting systems and heterogeneous groups, not in homogenous and isolated systems (closed doors).

Innovation thrives on disruption

I ask him where he is heading, who he is meeting and why he is visiting Philips Medical System in Eindhoven.

We strike up a conversation as we have a shared passion – strategy and innovation. One of those random conversations - on our way from anywhere to somewhere in a building of closed doors.

He says: “Did you know…two-thirds of Philips products never make it to the supplier chain. Their innovation cycle is three to five years. They have three guys sitting in this innovation lab, locked up somewhere.”

“Really, is that true,” I say, bemused as well as bewildered. How can this be possible?

I came to think about my visit to Philips Medical Systems in the late 90s, as I was writing this article, and came to reflect upon how the world and the business of innovation has changed in the past 15 years since I started working in this space.

Giving is the currency with which collaboration thrives and, it is that, which allows an individual and the collective to deliver on their shared purpose.

Kristina Nyzell is the owner and M.D. of Disruptive Play FZ LLC, a Dubai-based Human Resource Consultancy. She is an experienced strategy consultant specialising in open source, lead user/collaborative innovation and community development.

So what does the future hold for us?

The name of the game in future is going to be innovation sans frontiers.

Innovation workers of tomorrow will collaborate with other innovation workers to solve the challenges of humanity, working towards a shared goal of making the world a better place for generations to come Only when there is a higher purpose or goal in mind does humanity appear to be able to collaborate, trust, give unconditionally and innovate disruptively in its truest sense. More often than not this higher sense of purpose is embodied in an individual or by a group of individuals, which in turn, attract others with a sense of shared purpose in life.

The challenge for organisations of tomorrow will be to establish this higher sense of purpose that will attract innovation workers with a shared sense of passion and purpose in life to deliver on the goals set by an organisation or a trust network.

Innovation is a people business.



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Positive outlook for tourism industry Dubai SME’s industry study on the tourism sector has much insights to offer to SMEs, writes Karen Osman.

D

ubai SME, an agency of the Department of Economic Development, recently released a study about the tourism industry from the perspective of small to medium enterprises in Dubai. The study encompasses travel agencies, inbound and outbound tour operators, and exhibition organisers, outlining the potential opportunities for SMEs within the travel and tourism industry and potential initiatives to assist policy makers within this dynamic segment.

With the travel and tourism industry directly generating 20 per cent of Dubai’s GDP and six per cent of Dubai’s total employment, the study provides a much needed overview of how SMEs can leverage the growth of the industry, which is driven mainly by the establishment of landmark projects coupled with marketing initiatives by Emirates airline and the Department of Tourism and Commerce Marketing (DTCM).

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Business centre of GCC With a 14 per cent increase in visitors to the Dubai International Convention and Exhibition Centre for exhibitions and a five per cent increase in the number of exhibitions held there in 2010, it is good news for exhibition organisers as they can capitalise on the strategic location of Dubai and the fact that the emirate is the business centre of the GCC. Artaaj is one such example as marketing director, Jason Smith reports: “Artaaj has brought a unique exhibition concept to the region with the Big Boys Toys show, which saw an increase in visitor numbers of 68 per cent in 2011. With the rise in business tourism in the UAE, we expect to see more than 40,000 visitors at the 2012 show, which will be held in Atlantis the Palm Dubai.”

Challenges The study also outlines that organisers with a saleable and sustainable concept can also take advantage of the infrastructural benefits of the city. However,

challenges may still lie in the high costs associated with holding an event in Dubai compared to Abu Dhabi or other GCC countries. A potential initiative that Dubai SME may undertake to resolve these issues is to facilitate meetings between SMEs in exhibition organising and other government bodies.

There is no doubt that the travel agency market is a saturated one with over 140 agents and is characterised by intense cost competition. However, travel agencies can benefit from a resilient outbound travel market due to a large expatriate population and large amount of leisure travel and visiting friends and relatives which, combined, make up 70 per cent of outbound travel.

The study has identified several potential SME opportunities, such as entering into online business models and diversification into new value-added services. Yet, such

Tourism & Hospitality

initiatives bring their own issues, including cumbersome procedures for payment gateways and online transactions and limited net-banking options. Manoj Bhatia, business development manager at Al Rais Travel agrees, stating: “With the current trend of cost competition and exposure of web solutions, it is imperative to diversify to an online business model by offering unique services and products.

Furthermore, with airlines branching to numerous networks, there are multitude opportunities available to draw tourists from new sources.

Although the online business model has its own challenges, we still need to follow the trend to take hold of these multitude opportunities as the consumer focus is always the key.”

The study goes on to report that SMEs would need to be trained and advised in order to explore such opportunities and this may be one potential area in which Dubai SME can support with a specialised training programme.

Like the travel agency sector, the inbound tour operator segment is a fiercely competitive arena with 250 players in the market creating high cost competition especially in the area of desert safaris. Yet, the study reports a positive outlook for inbound tourism with opportunities lying with the DTCM focusing on new tourism segments and the expanding network of Emirates airline into new cities and countries offering opportunities to attract new

According to Euromonitor, outbound trips from the UAE are set to increase by 2,000,000 between 2010 and 2015 and while the outbound tour operator market is dominated by large players, a gap has been identified in the market for niche segments.

customers. SMEs can also focus on setting up representative offices in targeted countries combined with developing a solid e-commerce strategy in order to capitalise on potential revenue. Alpha Tours is already taking up such opportunity: “Our plan is to ‘Sell the World to the World’ with our new, state-of-theart online reservation system that is currently being promoted by our representative offices in the United Kingdom, Scandinavia, Australia and China,” reports general manager, Samir Hamadeh.

Initiatives The study also explains potential initiatives by the government to deal with issues ranging from operations to business development. These include a rating

system for desert safaris to help customers differentiate amongst the quality of services, information sharing seminars to improve the competitiveness between SMES, training, and the providing of incentives such as subsidising participation fees in international travel exhibitions.

According to Euromonitor, outbound trips from the UAE are set to increase by 2,000,000 between 2010 and 2015 and while the outbound tour operator market is dominated by large players, a gap has been identified in the market for niche segments. This specialised approach is where SMEs can take advantage by offering wholesale packages to a selection of countries or to niche segments, for example adventure travel. Success would lay in the SME having strong relations with suppliers and knowledgeable staff.

Matt Farr, owner of Mountain Quests, whole-heartedly agrees: “As the owner of an adventure travel company offering treks and expeditions to Nepal, I feel that it is absolutely vital to have control over our operations in the destinations we offer to our clients. Without such control we are unable to cater for our customers’ specific demands or react efficiently to changes in conditions in the areas that we provide trips. A good example for Nepal can be adverse weather conditions. If an adventure travel company relinquishes control to an agent in the country it provides trips, the agent may not be motivated to provide alternative travel arrangements for clients in the event of weather-related problems.”

The study concludes on a positive outlook on the tourism industry for the future with further enhancement allowable through the coordinated efforts of industry leaders, SMEs and the government to implement initiatives that will take advantage of future trends and support SMEs representative of the travel and tourism industry. 

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SME pulse

SME Pulse: Moderate, but steady trend The Q3 SME Business Confidence Survey reported slow performance in the third quarter of the year 2011, with key performance indicators sales revenue, volumes sold and selling prices witnessing a moderate but steady trend, writes Alexandar Williams.

D

ubai SME, the agency of Dubai Department of Economic Development, recently conducted the quarterly business survey for the third quarter of the year, surveying a total of 475 SMEs across Dubai.

The sample included a mix of small and medium enterprises, as per the Dubai SME definition, and ensured a representation from manufacturing, trading and services in proportion of their respective contribution to Dubai’s GDP.

The current quarter performance of the SME sector mirrors the performance of Dubai’s overall business.

The current quarter survey results reveal a downward pressure on sales revenues of SMEs in Dubai, with almost 50 per cent SMEs reporting a drop in revenues in the third quarter of the year (Q3). In comparison, the sales revenue performance of large firms reflects a trend of stability.

The SME trading sector performed marginally better, with respect to sales revenues in Q3, in comparison

SME PERFORMANCE – Q3, 2011

Current Business Performance (SME) - Q3, 2011 Sales Revenue

29%

Selling Prices

49%

18%

Volumes Sold

29%

27%

No. of Employees

18%

Profits

18%

New Purchase Orders

43%

54%

Cost of Raw Materials

38%

6%

62%

52%

Rental Cost

10%

Cost of Finance

5%

15% 22%

0%

10% Increase

The results of the survey reveal a slow performance of SMEs across sectors on key business performance indicators between Q3 and Q2.

The Intelligent SME

67%

31%

32%

20%

35% 75%

5%

49% 30%

Decrease

40% No Change

50%

Cost of finance The performance of the current quarter reflects a trend of stability on cost of finance, with 49 per cent SMEs stating a ‘no change’ on this parameter, significantly 22% higher than a net balance of positive 17 per cent.

30%

15%

26%

Cost of labor / human resources

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53%

same levels of employment in Q3 as compared to Q2, with 67 per cent of business respondents indicating stability in the size of their current workforce. Although employment is stable for the overall SME community, manufacturing SMEs have indicated a net increase in employment, while trading and service-orientrd SMEs have cited a marginal net decrease.

60%

70%

Not Applicable

with the SME manufacturing and services sector.

Employment Overall, SMEs maintained the

80%

Trends in rental prices also reflect stability, 28% largely reflective of the prevalent / current 5% market trends in Dubai’s commercial 8% leasing market. A few respondents (10 per cent) who experienced 24% an increase in rentals have attributed this 90% 100% increase to an actual increase in per square feet rental rates in select commercial areas such as Deira and other shopping malls.

A small proportion also indicated a rise in rental payout attributed to expansion of shop floor / warehouse facilities on the back of expansion

SME pulse

plans undertaken by these firms.

The cost of labour has also remained stable in the current quarter with 62 per cent SMEs citing stability in labour costs, compared to a corresponding 49 per cent of SMEs in the previous quarter that cited ‘no change’ on labour costs.

Cost of raw materials It is also apparent from the current quarter results that increasing costs of raw materials had a downside impact on margins. As expected, this increase impacted trading and manufacturing SMEs more than the service SMEs (net balance of positive 61 per cent and 54 per cent for cost of raw materials for trading and manufacturing, respectively against a corresponding net balance of positive 37 per cent for services).

The profit performance results of the current quarter show that profits are under pressure (net balance of negative 35 per cent in Q3 vs. negative 30 per cent in Q2) largely due to decrease in sales revenues coupled with increasing costs of operations, particularly the cost of raw materials. SMEs across manufacturing, trading and services sectors witnessed a decline in profit margins (net balance of negative 41 per cent for manufacturing SMEs, negative 34 per cent for services SMEs and trading SMEs).

SME performance on profits has

still been better when compared to large firms with large companies registering a net balance of negative 48 per cent on profits in Q3, higher than the corresponding SME net balance of negative 35 per cent.

In terms of SME community’s perceptions on the overall current business conditions in Dubai, the majority of the respondents cited the current business situation in Dubai to be ‘average’ and another 25 per cent cited the business situation to be favorable.

SME Business Confidence Index The Business confidence Indices (Composite BCI, and Large Company and SME Index) for Q3 are as follows:

(Base Quarter, Q2, 2011)

The composite confidence index for the SME community in Dubai in Q3 is at 115.7 points, indicating that business outlook for the coming quarter is positive and rising for the SME community in Dubai (A score of 100 indicates stable or neutral sentiments). Notably, the confidence score for SMEs is higher as compared to the confidence score for large businesses as well as the overall business community with scores of 114.9 and 115.2, respectively.

Overall business outlook A look at overall business expectations for the coming quarter (Q4) shows positive trends, with 58 per cent of firms optimistic about sales revenue prospects. Another 30 per cent expect that their sales will remain stable. Service and trading

SMEs are more optimistic, in terms of expected sales revenues in Q4, as compared to their counterparts in the manufacturing sector.

It is also interesting to note that these optimistic forecasts are driven by expectations of higher volumes, while prices are expected to remain stable (at an overall SME level), which signals a rise in the level of real economic activity in Q4 compared to Q3. To add to this, manufacturing and trading companies are also optimistic on rising selling prices in the coming quarter.

The Intelligent SME

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SME pulse

Commensurate with the positive expectation in volumes, new purchase orders placed by SMEs are expected to either increase or remain stable, as stated by an almost equal number of SMEs. These expectations are the strongest amongst trading SMEs. In terms of outlook for employment, on a consolidated basis, SMEs are planning to maintain their current workforce levels, which is a positive development. In spite of relatively lower optimism on sales revenue expectations, the large businesses are more optimistic as compared to the SMEs on hiring new employees in Q4 (as reflected by a net balance

on this factor of positive 20 per cent for large businesses, as compared to 10 per cent for SMEs. From a sectoral perspective, service SMEs are the most optimistic on hiring in Q4 as compared to the manufacturing and trading SMEs. SMEs are also optimistic about their future profits as 45 per cent expect rising profits and another 39 per cent forecast stability in profits.

On a relative basis, SMEs engaged in services are most upbeat about future profit expectations. Around 53 per cent of service SMEs expect increases in profits in Q4, as against 42 per cent manufacturing and only 33 per cent trading SMEs.

Alexandar Williams is the director of strategy and policy with Dubai SME. He has over 20 years’ experience in strategy and policy planning for SME sectors of various countries. He has an MSc in Public Administration from the London School of Economics and Political Science.

Expectations on key business performance indicators look promising and reflect a high level of optimism for Dubai’s SME community. This is further reiterated by the fact that 54 per cent of business respondents expect an improvement in the overall business scenario, while 37 per cent expect their situation to remain stable. 

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The Intelligent SME

International accreditation

Role of international standards to meet global challenges Quality never comes accidently, but can be achieved through effective management systems, explains Dr. Sameer Kumar.

G

one are the days when companies enjoyed a monopoly in their marketplace. In the current scenario, irrespective of the growth of economies, business sustenance and survival for existence are some of the biggest challenges for companies, especially for companies in the small and medium business sector.

On the other hand, a customer is much more aware and seeks not only quality in a product or service, but also value for money spent.

Therefore, companies are focusing on customers, while adopting international standards for quality, products, and management systems in order to get an advantage over their competition.

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

What is ISO? The International Organisation for Standardisation (ISO) was set up in 1947. Presently headquartered

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at Geneva, Switzerland, the ISO is the world's largest developer of international standards. Between 1947 and the present day, ISO has published more than 18,500 international standards for business and commerce, ranging from standards for activities, such as agriculture and construction, mechanical engineering, to medical devices, and the breaking information technology developments.

Although ISO's primary activity is the development of technical standards, ISO standards also have significant economic and social impacts worldwide. ISO standards make a positive difference, not just to engineers and manufacturers for whom they solve basic problems in production and distribution, but to all society as a whole.

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

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

International accreditation

Benefits Independent research clearly shows that ISO standards give organisations a clear competitive advantage over rivals. Consistence in quality, increased customer satisfaction, added sales and profits, customer retention, lesser wastage of resources, and a defined system to manage are just some of the advantages. Moreover, an international standard result in better trained staff and gives each resource, clarity in responsibility and authority.

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

food safety, among others. There are many other technical standards for specialised sectors.

Compulsory or not?

ISO Management Standards, such as ISO 9001, are very generic in nature and is applicable for all types of organisations, whether manufacturing or service regardless of its type of business. They are not compulsory standards, rather best practices for all organisations that seek to consistently and successfully manage their operations. This in turn, results in quality products and services, with a focus on customer satisfaction.

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

Most governments, public sector agencies and local authority tenders and contracts now usually stipulate ISO management standard certification as one of the key criteria for selecting contractors. The same is now the case for corporate sector tenders and contracts and especially within most supply chains.

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

However, having a standard is only the first step. Certification is a constant process that requires updating. Certified companies should have their management systems externally audited by a certification body each year. Organisations are also required to undertake an annual internal management system audit. 

Selection of Right Consultant and Certification Body

GAP Analysis of Existing Management System

Awareness Training on Respective Standard

Design & Development of New Management System

Closure of Non Conformities found during the Internal Audit

Internal Audit

Progress Review of Implementation

Implementation of New Management System

Final Audit for Certification by Certification Body

if OK

CERTIFIED!!

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Human resources

Hiring and firing at will John Lincoln writes on the significance of emotional intelligence, a very important characteristic that is desired in employees in order to function satisfactorily in a company.

I

know that the title above might seem a bit alarming to some folks. No, I am not espousing that you treat your employees like disposable assets. As people are really the most important assets (and occasionally liabilities) that any business has, it is important that due prudence and diligence is given when hiring key employees for your small business.

Further, if a hiring mistake has been made, then it is more important to get rid of a wrong hire, than keep a potential parasite or virus that often has the ability to outgrow your capability to control it.

I will also assert that the hiring of key employees might be among the most important decisions that you, as a small business owner or investor, will be making on behalf of your company. This article is not a best practice in hiring or firing. It is rather advice on key areas that are often overlooked.

Over the years, I have had the privilege and opportunity of hiring across different countries, many highly talented folks. During my professional career, I have made some grave errors in my judgment when it came to hiring. The key to know is that, there are common threads and characteristics in hiring that you need to know and watch

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out for. At the same time, if mistakes are made, then they will have to be limited and or mitigated.

Most countries around the globe have laws that regulate and govern how companies treat their employees. Unscrupulous employees and businesses often take advantage of the complexities of these laws to dismiss or sue the other party.

As a small business owner or investor, you may not be able to

In every day work environments, especially in a challenging small business, emotions have a way of getting in the way of some very important relationships between the owner, the key manager employee, a key customer, supplier and supporting staff.

fully avert such legal actions against you. However, there are tools, frameworks and traits that you can apply and identify to ensure that you minimise your risks.

What really matters No matter which position you are seeking to fill in your company, there are some basic and functional expectations from a candidate that you, as a small business owner, will require to check out.

These expectations could range from having a relevant functional professional degree to a certain number of years of experience, doing a relevant job. You would probably add additional expectations, like the ability to communicate well and the ability to work flexible hours, and so forth. For good measure you would, in all likelihood, add the requirement that a candidate should be an excellent team player, flexible, and hardworking among other qualities.

In addition, for most management roles, you would expect a certain level of functional knowledge and intelligence as well as analytical and creative intelligence.

Most small business investors or owners will go through the mechanics of verifying the obvious.

However, most small business investors and owners miss out

Human resources

two very important characteristics that determine whether a potential candidate is going to succeed or not.

I personally call it the EPIC factor. It is an acronym that I have personally formulated. It stands for Emotionally and Practically Intelligent Candidate, hence the word EPIC!

for your small business, you need to be able to visualise the candidate who can combine intellectual and creative capability with emotional intelligence. This way, you will be able to identify one that can relate to others, versus someone who is drab and ineffective.

What is emotional intelligence?

In every day work environments, especially in a challenging small business, emotions have a way of getting in the way of some very important relationships between the owner, the key manager employee, a key customer, supplier and supporting staff.

There are six primary emotional intelligence factors that you should look out for a candidate that you are hiring: Practical There is a requirement for a person to have a sense of reality check, despite, or, in spite of all the bullishness or bearishness around him. Practical intelligence enables employees to fix problems realistically based on the environment or the situation that they are in.

Therefore, you need employees with emotional intelligence; which is the ability of your candidate to evaluate, determine, and perceive one and others around them.

This is very important, as in most business situations a conflict or disagreement is not on the strategy or the tactic itself, but rather, the emotion of the moment. I know that this seems too farfetched for most folks. Reflect on each of your conflicts and disagreements during the past 30 days. I bet you that it had nothing to do with the strategy, direction or tactic and instead with the emotions surrounding the situation.

Anger management Emotional intelligence is often mistaken for a person who is controlled in his or her temperament and one who is not angry. This is certainly not true.

The wise ancient Greek philosopher Aristotle said of anger: “Anyone can become angry -- that is easy, but to be angry with the right person, to the right degree, at the right time, for the right purpose, and in the right way -- this is not easy." This is emotional intelligence at its best.

Importance Let us assume, for example, that a potential candidate interviewing

for a job in your company gives a response. This response from the candidate includes his or her cognitive ability to articulate the issue at hand. Do keep in mind that it is the emotion that provides the intonation, the sighs, gasps, gestures and animation. Just imagine your view of the candidate if there is no emotion but a robotic, matter of fact and boring discussion!

Therefore, for me, emotion is like beautiful picture with no one to admire it. It has the instinctual, intellectual and creative aspects to it. Or, take a house or building that is designed with brilliant architecture, but has no furniture or fitting or even no occupants. The building is said to have no emotion.

The best description of emotional intelligence that I have come across is this - emotional intelligence is like an orchestra or band playing music to the lyric. A lyric unto itself is boring without the music. You will never recall a lyric without the right recall of music!

When you are hiring a key candidate

Assertiveness This is the ability to constructively state one’s position, beliefs, and take a stance without offending or belittling others. This is critical requirement for leaders. It does not mean that one has to bark orders or threaten. It just means the ability to challenge conventional wisdom, or the status quo in a positive but reinforcing manner.

Deliberate It is important not to be impulsive, or, not to take sudden or rash decisions based on a whim. Being deliberate in how a person responds to provocation, situations, deal negotiations, and other business situations could mean the difference between losses and profits, for the business and the individual.

Flexibility This is the ability of a person to adjust his responses, thoughts, emotions, actions and others to reflect the situation. This is especially critical when you are hiring a marketing or sales individual, as the job requires dynamic adjustment to market environment, customers, competitors and other extenuating

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35

Human resources

factors, beyond anyone’s control.

Flexibility might not be an attribute you would expect of someone managing your purse strings!

Emotional self awareness This is the ability of an employee to recognise his or her feelings and emotions, and relate and differentiate them. Candidates with high emotional intelligence will know what caused them and why. This is a critical requirement to enable successful work place resolutions on areas of disagreement.

Empathy This is the ability to put oneself in someone else’s shoes: it’s an innate ability to relate, understand and empathise with the other person’s point of reference. I am sure that you would agree that understanding others’ feelings and emotions on a particular situation or subject will lead to better work place collaboration When I am conducting interviews, I normally test the candidates on each of the areas in different ways. As a small business owner or manager, you probably cannot hire expensive human resource consultants to test the attributes discussed above.

However, these could be tested with scenarios related to your industry or business situation.

Keep each of these required attributes in mind and challenge the candidates in various scenarios.

You need to ensure that you get a candidate who can succeed in your often challenging environment and that you get someone who can make that difference!

The firing at will Now that you have hired champions, how do you then deal with the occasional lemons that you pick up?

It is never easy and often heart wrenching to say good bye to an employee. These emotional feelings, we as humans feel, are often exacerbated in these trying times.

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Strategies and tactics You have to assume that every termination will or might result, in a legal suit against your company.

As a small business owner, you do not have the time or appetite to be caught in a legal tussle with an exemployee. Have a well-documented file outlining misconduct, non performance, breach, harassment or whatever reason you have, prior to terminating the employment of any employee, regardless of the reason.

Exude confidence when you have to terminate an employee. If you are not confident, this could be misconstrued as firing someone illegally. Treat the employee with respect and dignity even if he or she had stolen from you!

Exercise fairness. Your other employees are watching! You need them to succeed in your business.

Compensate your employees humanely within the limits of your affordability.

Be open, frank and candid when you have to deal with an employee whom you deem is no longer suitable for your business. Have witnesses around you, when you are dealing with a termination. You do not want to be accused of harassment or anything worse.

If an employee has not been terminated for performance, breach of trust, violence or harassment, offer reference.

A note on labelling the termination You have to ensure that a termination is labelled appropriately. You have to be acutely aware of the labels that you use when you have decided to separate an employee from your small business. This is important to avoid legal action and emotional over reaction from your separating employee. Always address the appropriate labels such as dismissal, resignation, retrenchment or lay off, or exceptional circumstances.

I cannot stress here enough that

John Lincoln has over 20 years of experience in telecommunications, worldwide and is currently the vice president of marketing (enterprise) at Du. He has extensive senior expertise in international telecommunications sales, marketing, business development and customer service delivery.

your hiring actions will determine the success of your business. Don’t do the obvious. Functional and creative intelligence are important and are verifiable. The sum total of the practical and emotional intelligence of your employees will make the difference between just surviving versus having a sustainable and growing business.

When dealing with termination of employees, be deliberate and structured. You have no other choice as the opportunity costs of time, money and morale of your employees are just too high!

As the saying goes, “time spent on hiring is time spent well.” Also keep in mind that emotional intelligence is not the opposite of intelligence as we know it.

As someone once famously said: “It is very important to understand that emotional intelligence is not the opposite of intelligence, it is not the triumph of heart over head -- it is the unique intersection of both.” 

The Intelligent SME

Logistics

Logistics industry offers immense opportunities in the UAE The UAE’s transport and logistics industry is not only on the move, but is doing extremely well, boosted by increasing global and regional trade. A TIS report. facilities, including air cargo, freight transport, ports management and materials handling.

Operators worldwide feel that there is an immense scope for growth in the Middle East. According to them, the Middle East growth potentials, particularly for the logistics and transport sectors, is 25 per cent more than in North or South America.

T

he UAE logistics sector is the gateway to commerce in the Middle East, which has become one of the world’s top trading regions after diversifying its economy into non-oil products and services.

Imports and exports within Gulf countries have increased manifold over the years and, along with it, the UAE’s logistics industry has also developed phenomenally.

In fact, to help support and sustain the development of the UAE’s logistics industry, a slew of international trade events, including exhibitions and trade fairs have been launched in Dubai and other emirates, to showcase the UAE’s transport and logistics industry

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Industry observers are of the opinion that Dubai’s logistics sector is doing extremely well despite the volatility in the global markets. The emirate’s total direct trade increased 27 per cent in the first five months of the year, according to figures released by the Dubai Chamber of Commerce and Industry.

Trading hub The UAE has secured its place in the world as a regional trade hub between Europe and Asia. Today, the UAE logistics industry is in a position to capitalise on the increasing trading opportunities between the two regions because of its strategic geographic location and easy accessibility. The leadership of the country is also paying great attention to this sector.

Three influential front-running organisations have joined hands in the UAE to operate the Khalifa Port and a free trade and logistics zone in Taweelah. The UAE government is providing the necessary backing to sustain this growth and also to trigger economic expansion, which can be possible only by developing projects with support from the private sector.

Built on an area of 2.2 square kilometres, the Khalifa Port is a multipurpose port, which became operational late last year, and is already attracting a lot of small and medium enterprises in logistics,

Logistics

transport and freight forwarding business.

The UAE envisages a vision of creating state-of-the-art facilities at Taweelah, and to achieve this it is partnering with some of the reputed business entities in the world. Once completed, these projects will take the UAE logistics industry to its zenith, according to Jim Caruthers, a Dubai-based independent expert.

even say that the boom in the sector is helping sales of property in these areas, even at these times when the real estate sector is not at its best in terms of development and sales. There are five main reasons why property in the logistics corridor is being swept up by the logistics freight train, explains Niall McLoughlin, senior vice president corporate communications at Damac Properties.

In addition, the Jebel Ali Port and Port Rashid of Dubai are also growing at a steady rate of 20 per cent. To provide further boost to the sector a logistics park has been set up at Al Jazera Al Hamra industrial zone in Ras Al Khaimah.

The UAE with its immense business potential is bound to become the region’s most essential logistics hub, Caruthers adds.

Firstly, logistics and trade are creating employment, and which in turn is stimulating demand for nearby housing. People will always want to live close to where they work. “We have observed a very strong correlation between the growth of Dubai’s logistics sector and interest from investors seeking to buy property within this growth area,” he says.

Booming sector Industry observers are of the opinion that Dubai’s logistics sector is doing extremely well despite the volatility in the global markets. The emirate’s total direct trade increased 27 per cent in the first five months of the year, according to figures released by the Dubai Chamber of Commerce and Industry.

Secondly, there has been an influx of new SMEs that are purchasing residential property for expatriate employee accommodation. Last year alone, 480 new companies,

The emirate’s total value of exports and re-exports surged to over US$44 billion (AED162.1 billion) in the first eight months of this year, with a major share of these goods passing through Dubai’s trade corridor, a massive area of approximately 200 square kilometers, linking sea, land and air, bridging together the Jebel Ali Port – the sixth-largest container port in the world, Jebel Ali Free Zone – host to more than 6500 companies, and Dubai World Central – home to Al Maktoum International Airport, which upon completion, will be the world’s largest airport.

Some real estate developers

including 55 multinationals, launched operations in Jebel Ali. Thirdly, property prices in Dubai are at an all-time low, which means Dubai’s real estate now presents an extraordinary value for money.

Fourthly, buying property in the logistics corridor is a good way of gaining exposure to Dubai’s logistics growth story. Logistics and trade is one of Dubai’s main economic growth engines creating employment, which is stimulating demand for nearby housing.

“The potential for growth in the logistics sector is enormous. We are predicting there will be a flow on effect to demand for residential property within the logistics corridor. Sure, you can buy shares in DP World, but for investors who recognise the long-term growth prospects of Dubai’s logistics corridor, property is one of the best vehicles to leverage on the mid- to long-term outlook for the sector,” McLoughlin explains.

Finally, it’s a safe and secure tax-free investment. Investors who have accumulated significant holdings of cash assets can find excellent returns by investing that cash in property in Dubai.

Cities with greater logistics capabilities tend to attract more foreign direct investment. Dubai is on the move, which is creating an extraordinary opportunity for property investors to jump on board and enjoy the ride, McLoughlin adds.

Jayakrishnan Nair, manager of a small freight forwarding company in Dubai, says: “Dubai is a very vibrant place. It’s never idle. Even in the worst years of crisis it was constantly on move. Some leave the place, but some move in as well. And, all this requires our services. As long as Dubai and the UAE are there, there will be the need for efficient and smooth logistics and freight forwarding.” 

The Intelligent SME

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Management Consultancy

Doing business in Dubai just got easier Zed Ayesh explains how a new business law issued in Dubai will further enhance the emirate’s position as a regional business hub.

U

nderstanding business needs of small and medium enterprises requires much foresight and a larger consideration of market forces.

One person who has understood this in the best possible manner is H.H. Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai.

His vision has taken Dubai to new heights, as today the emirates is one of the most strategically important international commercial hubs. It is a vision that understands business dynamics and market forces.

The law No.13 that was passed recently, subscribes to this same vision, as it will help SMEs, the backbone of this country’s economy, to do well, going forward. Dubai is one of the most attractive places in the world for investors to do business, and the new law gives a fillip to that position.

The new law has been developed with a view to regulate economic activities in the emirate, and create a successful environment for investments across various economic sectors. It will establish a single portal for various government bodies to co-ordinate and regulate economic activity in Dubai. The law promotes economic development, focusing on accuracy of information, transparency, the deployment of the newest technologies and strengthening marketing and promotions. It also covers important principles for regulating economic, professional and marketing activities.

Given the importance of incubators in the development of business, especially small and medium

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The Intelligent SME

enterprises, the law has coined a special definition for them and identified their framework and tasks.

In comparison with other major commercial hubs in the world, small and medium businesses in Dubai are set to witness significant growth in the near future, as these can now expand their commercial activities beyond their current market areas of free zones. The new law allows free zone companies to establish new branches within the emirate, giving these companies a further push for growth, while being committed to the laws and regulations applicable in the emirate.

As a result, more investors and entrepreneurs will enter the market, and it will be far more convenient to get all necessary documentation and registration procedures done more quickly and efficiently.

Regulations To create a stable business environment and manage market dynamics, communities require proper regulations to solve disputes and grievances. The new law will simplify these regulations and reduce the time for resolving issues.

This will not only help SMEs, but all types of businesses, as these would be wasting lesser resources, time and money, going forward. It cannot get any easier than by allowing investors and entrepreneurs to suspend commercial activities for a period of time, without needing to pay fines and or renewal fees during such period in accordance with the rules and regulations.

Consumers The law marks a new phase in dealing with all issues related to the rights of consumers. The true

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

He is currently the managing director of Flagship Consultancy based in Dubai, and works with clients on many aspects of the business from strategic planning, business development, marketing strategies, pre-sales and sales management, across different sectors such as government agencies, real estate, media companies, manufacturing, contracting, engineering firms, retail and shipping companies. drivers of economic growth and increased business activities are the consumers. With the new law in place, consumers will have more rights and increased protection from commercial fraud, misleading advertisements and infringement of trade. More protection for small businesses develops goodwill and trust which will, in turn, make it easier for consumers to spend in the emirate with simplified commercial transactions.

It will take few months for the full effect of the new law to be clear for everyone, and it will be noticed immediately by experts, investors and savvy consumers that doing business in Dubai just got easier. 

Are you insured?

Everybody needs health insurance. A mandatory health insurance scheme in Dubai will enhance the quality of life for the local and expatriate population.

However, the increase in health care costs and premiums is another issue to consider. The Intelligent SME investigates.

Special Focus ď ¸ Health care insurance

H

ealth care is a basic amenity that is required by all. In the UAE, a country that sees the influx of millions of expatriates from all over the globe, the issue of reasonably priced health care gains further prominence.

Owing to the increased cost of health care in this country, the use of insurance coverage has reduced the burden of employees to pay huge sums for every visit to a clinic or hospital. Most companies provide their employees this advantage to see that they are healthy and use their work time effectively.

However, this is not the case with all employees. Many still are labouring without any insurance and still have to spend a minimum of AED100 at a clinic, which is a drain on their resources. At least 77 per cent people in the low income group do not have health insurance cover, according to a recently conducted Dubai household survey.

government in Dubai has been pondering on enforcing mandatory health care insurance in the emirate, in order to give all residents an added advantage. This law was proposed in 2008, but was shelved later owing to the unviable economic climate. Companies are now being given two more years in order to

A mandatory health insurance scheme will increase health awareness among expats and will increase the quality of life.

But over time it may increase the health care costs and increase premiums. So, who will bear the cost?

This being the case in point, the

prepare themselves. Under the authority's original plan, employers would pay the government between AED500 and AED800 a year for each employee, who would register with an outpatient clinic for basic health care services.

Government stand Regulatory framework of the health insurance law is ready and is currently being reviewed by the Dubai Executive Council. The Dubai Health Authority (DHA) is still considering the right model for Dubai, according to Laila Al Jassmi, CEO strategy and policy, DHA. Under the law, the sponsor will be responsible for providing insurance cover to those under his sponsorship, be it his family or employees. Like all regulatory frameworks, the law will also address penalties for non-compliance. “The Health Funding Department has been working on the law, while keeping in mind employers, providers and insurance companies. Though many companies provide insurance

Timeline In 2007: UAE minister of health Humaid Mohammed Obaid Al Qatami announces federal insurance law for expatriates residing in Dubai and Northern Emirates in 2008. The draft law has been finalised and submitted to the Legislations Committee. It awaits approval of higher authorities.

Meanwhile, a panel of international experts is set to give their recommendations on the Dubai mandatory health insurance scheme before it becomes a law.

May 2008: A survey conducted among 100 hospital professionals reveals that although this new legislation will benefit most employees, it will also have a major impact on the health care industry in Dubai.

Mid 2008: Dubai Health Authority unveils and outlines the mandatory health insurance policy by which all employees will get access to health care facilities.

Hospitals were set to be phased into the plan by 2011.

Nov. 2009:

Jebel Ali Free Zone Authority issues regulation that mandates medical insurance for all employees sponsored by the authority. Meanwhile the mandatory health insurance scheme in the emirate of Dubai is suspended temporarily, owing to change in financial climate.

July 2010: A survey by the Dubai Health Authority reveals that three quarters of Indians, other Asians and Arab expatriates in Dubai have no health insurance. The government in Dubai considers a new minimum level of health insurance for expats.

Oct. 2011: Health insurance to cover every employee in Dubai has been delayed for up to two more years.

The insurance scheme first proposed and originally scheduled for 2009 now has a deadline of 2013.

The Intelligent SME

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Special Focus  Health care insurance

cover to their employees, it is done randomly and is not mandatory,” said Dr. Yousuf Haider, director of health funding Department at the Dubai Health Authority at a recent press conference.

Public health care facilities in Dubai provide 39 per cent of outpatient services, and the rest is provided by the private sector.

Another part of the three-year plan is to improve health funding. To do this, the DHA is proposing a National Health Account that would monitor Dubai's health care spending and compare it to that in other emirates.

”The UAE spends 2.5 per cent of its GDP on health care. In the US, 17 per cent of the country’s GDP is spent on health care services. Before we can project increases in budget, we must first know exactly where all the spending is going.”

"The UAE spends 2.5 per cent of its GDP on health care. In the US, 17 per cent of the country's GDP is spent on health care services. Before we can project increases in budget, we must first know exactly where all the spending is going," Al Jassmi explained.

Another objective of a National Health Account is to determine the level and type of spending by private hospitals and clinics, which the authority hopes to expand.

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Laila Al Jassmi CEO strategy and policy Dubai Health Authority

"This is a good figure because our strategy is to embark on the private sector. To maintain a sustainable health care system, you have to shift the spending on health care services towards the private sector, and allow it to grow. This would create a good economic system, crate jobs for SMEs and encourage medical tourism," she said.

Many companies that fall under the SME category have very short term planning horizons, and therefore insurance schemes are most often never a part of their plans, said Alexandar Williams, director of strategy and policy at Dubai SME, an agency under the Dubai Department of Economic Development.

“Firstly there is no legislation in place that encourages SMEs to take up insurance in a bid to protect themselves and secondly, SMEs do not have the tradition of protecting themselves with insurance in the event of a catastrophe,” he adds.

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Special Focus  Health care insurance

Although free zones like Jebel Ali Free Zone Authority have enforced mandatory insurance for all registered companies, more needs to be done outside the free zone. SMEs need to be educated on industry specific schemes, such as for food safety and hygiene, and so on, Williams points out.

Companies However, many insurance companies are looking forward to the implementation of the law, which is expected to be in place by 2012.

“The regulations on the subject

“We are already in the process of implementing our medical claim system, expanding human capital and enhancing existing infrastructure, due consideration for the increased demand has been given to these projects, in case health insurance becomes mandatory in year 2012/13.

However, the ideal scenario would be at least a six-month notice for us, prior to health insurance becoming compulsory for everybody, so that we have enough time to prepare ourselves to meet the eventual increased demand, going forward,” Jaber adds.

While drug price increases are controlled, hospitals have raised their rates on a slew of services, consulting fees, lab expenses, and others by well over 20 per cent in the last three years and more, a Dubai-based insurer says. companies have already started to put pressure on medical insurance companies to reduce costs. All that remains to be seen is how far insurers are willing to go to raise premiums and, just as important, stick with them. Having made the decision, they would need to stick to it and not let any short-term drop in premium collection get in the way,” another Dubai-based major insurer says.

matter were communicated by the concerned authorities in the end of year 2008 with implementation in beginning of 2009, however, the whole project was later postponed till 2013. The industry is now looking forward to see the new regulations to be announced in 2012,” said Abdel Muhsen Jaber, AGM operations at Emarat Takaful.

The company’s portfolio currently caters to 80 per cent small and medium enterprises.

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In the event that the government enforces the mandatory insurance law, insurance companies will have to install separate software where information is sent online, regularly to the regulatory authorities.

“Every little detail is documented and sent, so that the authorities have all the information they need,” said Dr. Beena, head of life and medical division with Arabian Scandinavian Insurance Company.“Employers, especially of small and medium sized

Rising costs Meanwhile, health care premiums in the UAE could be in for a 10 to 20 per cent increase this year, following the government’s announcement of the mandatory health insurance program, industry sources say.

While drug price increases are controlled, hospitals have raised their rates on a slew of services, consulting fees, lab expenses, and others by well over 20 per cent in the last three years and more, a Dubaibased insurer says.

Although insurers have a range of SME packaged insurance products to choose from, employers fear they will have to bear the rising costs once the law is in place.

An owner of a small trading company in Dubai says: “I have a staff of six people and I have to provide insurance for all of them. With rising costs of operating in Dubai, this will be another burden to our budget.”

Special Focus  Health care insurance

Types of health insurance Many SMEs have not had the opportunity to apply for an appropriate insurance scheme, or are not aware of the various schemes on offer.

Here are a few policies one may consider: General liability insurance Liability can arise from either negligence, out of a provision in a law, or failure to abide or inadequate performance as per the signed and agreed contract. In simpler terms, liability arises from the premises owned, occupied or used, products manufactured, sold or distributed, and services rendered.

Group medical insurance A comprehensive medical insurance cover for companies (comprising employees and/or their dependents) can be tailored to meet specific requirements with a direct billing facility. Wider scope can be achieved at better rates through various prominent medical insurers in the region.

Cover is usually arranged for compensation in respect of legal liability towards accidental third party property damage and/or third party death or bodily injury and the resulting Legal Defense costs and expenses.

Workmen’s compensation insurance As an employer you have liability towards your employees on two fronts: Under labour law and Sharia law. Labour law generally stipulates that if an employee gets hurt whilst working, the employer is responsible for the resulting medical expenses, salary during absence and compensation for disability suffered. This is irrespective of whether the employer is at fault or not. The amount payable is stipulated under the labour Law of that country and it differs from one country to other. This exposure is protected under our Workmen’s Compensation Policy.

Under Sharia law, if an employee suffers injury where he can reasonably attribute such injury to employer’s negligence or fault, he may proceed for compensation.

“Our employer is already threatening us (company employees) that he will cut insurance costs from our salary,” a worker in Dubai says. “He told his staff of 15 people that we will have to share the cost of insurance.”

“A mandatory health insurance scheme will increase health awareness among expats and will increase the quality of life. But over time it may increase the health care

costs and increase premiums. So, who will bear the cost?” a Dubaibased employer of a medium-sized company queried.

“My total staff strength is 11 employees. I provide health insurance for all without any employee involvement. Providing my staff with this basic amenity creates goodwill and loyalty among the staff members. It pays in the

long run,” said Pankaj Jain, managing director of Radiant Holdings.The mandatory insurance law would be a positive development in the interest of employees; however, as an SME operating in the UAE, the question is whether the company heads are ready to bear the cost of insuring their employees. Perhaps it is time for the government to survey the SME sector in particular, in order to understand the situation better. 

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Special Focus  Health care insurance

Mandatory health insurance in Dubai – A risk carrier’s perspective

T

he emirate of Dubai has been in the process of making health insurance compulsory for the last few years, but somehow the process has been delayed, perhaps an effect of the general economic slowdown.

Benefits to economy Mandatory health insurance has a direct positive impact on medical providers in the country – clinics, hospitals and pharmacies; it generates higher revenue for them.

The growth in the health industry, in turn, adds to the GDP of the country as different sectors in the economy are benefitted. Mandatory health insurance will provide huge boosts for the country’s health insurance industry, which is a key and growing part of the economy of the UAE. However, if medical insurance is not managed well, then it could lead to disastrous results for insurers.

Health care has always been a sensitive issue as it touches one’s life so closely; a slip here and a miss there could make a difference between life and death!

Mandatory health insurance is a topic that is sensitive to the country’s economy as a whole, explains Dr. Beena Nair.

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Compulsory health insurance is a positive development for expatriate employees and their dependents.

Employers might, perhaps, find in medical insurance an additional cost, but they are also likely to reap the benefits also, albeit indirectly; after all, a healthy worker is a better asset for any employer, it results in lesser man days lost to sickness.

Abu Dhabi experience Abu Dhabi has made health insurance compulsory for all residents in the emirate since 2005.

Abu Dhabi’s Health Insurance Law states that active employers or sponsors in the emirate must provide some form of insurance to all employees and their family members, including an employee’s spouse and up to three children under the age of 18. Failure to

Special Focus  Health care insurance

provide insurance will be subject to a fine of AED300 per month per employee.

Only those insurance companies registered with the Health Authority of Abu Dhabi (HAAD) are allowed to transact business in Abu Dhabi. The entire system is online, including registering new products; giving monthly updates of policies issued and claims paid to various providers.

Since the health insurance policy is linked to the visa formalities, the government has ensured that all the residents of Abu Dhabi are insured.

Survey A survey was conducted in 2010 to understand the needs of Dubai’s nationals, residents and visitors.

Results of the survey showed three quarters of Asian and Arab expatriates in Dubai have no health insurance. The survey could help the Dubai Health Authority identify and address priority health care issues and develop effective, long-term solutions to address the emirate’s major health care concerns.

Health insurance scenario There are many insurance providers in the UAE, but one can’t expect all providers to adhere to customer focused professional ethics and internationally accepted standards.

It could also be a difficult task for people to choose among the providers.

Undoubtedly, price remains currently the foremost consideration for people seeking health insurance.

However, since there is no benchmarking, some of these insurance companies are offering schemes at very low premiums.

And so, it is essential for clients to consider benefits and restrictions when comparing quotations.

Medical insurance policies are annual contracts, and clients should beware of the fine print, which could also contain interim cancellation provisions; clients could lose heavily and may find it difficult to

replace their insurers, on premature cancellation.

In Dubai, some companies already provide insurance for employees, while some others contract with health care providers for treatment, but uninsured workers still struggle to pay their medical bills. Spiralling costs of health care in the UAE could increasingly make affordable medical care a dream for many people. If regulations aimed at making health care affordable, are not soon set in, and if the costs of medical care keep rising, insurance companies will be forced to raise their premiums to make heath insurance schemes viable.

Some providers have been increasing their tariffs every year, assuming that insurance companies are there to facilitate their operating cash flows.

Authorities would do well to rein in such unwarranted tendencies in the health care sector.

Health insurance in Dubai A compulsory health insurance scheme for private sector employees, as applied in Abu Dhabi, was to be implemented across the country in 2009.

The proposal then stipulated that companies will have to provide health insurance both for UAE nationals and expatriates. This initiative was to protect workers’ rights and give them security. Dubai had earlier looked at introducing a health levy on businesses paid per employee to provide universal healthcare. However, nothing came out of those proposals.

Mandatory health insurance will provide huge boosts for the country’s health insurance industry, which is a key and growing part of the economy of the UAE. However, if medical insurance is not managed well, then it could lead to disastrous results for insurers.

A report early this year had mentioned that it may take at least two years for compulsory health insurance to be implemented; however, there are conflicting reports that insurance may be made compulsory as early as the beginning of 2012.

To ensure every resident in Dubai is insured- once health insurance is made compulsory - health insurance policy will be linked to one’s visa, as it is done in the emirate of Abu Dhabi. However, one can hope that the online claims reporting in Dubai would be more insurance friendly, and will offer a level playing field to all the players in the sector. Such an arrangement will encourage healthy competition amongst the bidders and ultimately, benefit the end user – the resident in Dubai. 

Dr. Beena Nair is the head of Life and Medical Division with Arabian Scandinavian Insurance Company (Ascana), the views expressed here are her own and not necessarily subscribed to by her Employers. ASCANA has been providing Group medical insurance in the UAE since 1996 and is one of the first companies to be licensed to provide medical insurance in Abu Dhabi.

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F&B industry

Where do we go for Chinese food tonight?

Branding strategy is as important as the taste in the food and beverage business, explains Dr. Rinsho Shin.

C

hinese cuisine has become a very important part of the palate these days, although authentic Chinese food is hard to find.

There are over 60 Chinese restaurants in Dubai, run by Chinese expatriates, and probably another 100 Chinese restaurants that are operated by other nationalities..

With a history of 5000 years, Chinese cuisine has always been an integral part of Chinese traditional culture.

But China is large country with 50 ethnic groups, and all Chinese

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A good location, despite the fact that it costs money, is necessary to run a successful restaurant business. It is easy to understand that the best location brings best footfall, but few, probably, understand this simple logic better than the Chinese do.

cuisines are not exactly the same style and taste. Generally speaking, it is divided into eight different categories. The most famous and leading dishes are considered as Cantonese, Shanghai, and Beijing and Si Chuan cuisines. These are all different from each other, and come with their own strong characteristics.

For example, Si Chuan cuisine is always considered as one of the spiciest dishes in the whole world, while on the other hand the Cantonese cuisine is well-known for its mild and delicate taste.

About 10 years ago, when the first

F&B industry

large scale Chinese restaurant in Dubai, called China Sea hung, up its red lanterns (considered a tradition in China symbolising the start of operations), there were only about four to five Chinese restaurants that were being operated by Chinese expats in the UAE. But now, the number has increased tenfold. As a result of tough competition in the market, there is an ongoing battle for these Chinese restaurants to survive the difficult times, today.

Peng Antai , the owner and general manager of Nihal Chinese Restaurant, who has invested over six million dirhams in his venture,says: “The size of a restaurant matters in this market.

We have about 200,000 Chinese residents in the UAE, and only a large restaurant can cater to this large population. We also cater to the other nationalities, as a large number of tourists visit this country.

To meet the needs of large groups of tourist, we need ample space in a restaurant.” .

Location So, what are the key points to consider when opening a restaurant?

Firstly location is an important consideration in the F&B industry. A good location, despite the fact that it costs money, is necessary to run a successful restaurant business. It is easy to understand that the best location brings best footfall, but few, probably, understand this simple logic better than the Chinese do.

diversified into catering services for birthday parties, weddings, and so on. Some even have art galleries housed within their premises to attract crowd. This is all good, but one should not forget that foremost in restaurant business is offering authenticity and originality in taste to customers. Branding follows.

Antai notes: “We strive to retain the original taste of Cantonese cuisine, and it is as important as the branding strategy. This along with our Chinese art works, gives our customers the feeling of being back home. It is a major selling point that keeps our Chinese customers loyal to the restaurant.”

PR message A strong PR message is also of paramount importance for the sustenance and enhancement of a brand. Although this requirement is quite similar to other businesses, successful restaurants must come up with a new concept, creative strategies and strong implementation.

It is expected Dubai will see many more Chinese restaurants opening in the near future. However, the tougher the competition, the better it is for consumers who will have more choice and value before them.

Even for Antai, more restaurants the

Dr. Rinsho Shin is a management consultant from Beijing, China with 15 years experience in strategy and marketing consultancy for manufacturing, retail and service sectors. He also has worked at executive positions in the US, Japan, China and UAE. In recent years, he has expanded his business portfolio into the cultural and art fields by introducing multiple culture exchange programs within the Middle East, China and Japan.

merrier the business gets, and which is strange to hear, at first. However, he has his logic to the statement, as he clarifies: “The more Chinese restaurants come out to serve our market, the more consumers will know the difference between us and them. We aim to create the best brand in the market.” 

Besides, for a high class restaurant, a large size is important to meet the needs of customers. The food and beverage business is all about reputation and brand, as Nihal Chinese Restaurant and other players such as Yin Zhuang Chinese Restaurant in Baniyas Square and Splendid Chinese Restaurant in International City have understood.

Unique proposition As any other marketing strategy, a unique proposition is what sells.

Many restaurants these days have

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Social media

Let’s get social!

Do you have a question about social media and promoting your business online? UAE-based social media consultant and award-winning marketing strategist Farrukh Naeem answers your queries on using Facebook, Twitter, YouTube, AdWords, SEO and any other online services. Send your questions to email@farrukhnaeem.com Q I have heard that business and brands can now have their own corporate pages on Google+. How do I set up my business page on Google Plus?

A Google+ was first launched only for individuals, and businesses were held back from creating corporate or brand pages. But, recently, Google has launched pages for businesses on Google Plus. And, unlike the phased roll-out of personal profiles, you can easily create a business page on Google+ with a few clicks.

First you need to have a personal profile on Google Plus. If you don’t already have one, you can create it as an owner of the business or brand at http://plus.google.com using your Google account. Once you have a personal profile of your own on Google Plus, you will find a

link to “Create a Google+ page’ on the right hand side column of your Google+ profile, at the same URL given above, while logged into your Google account. The direct page creation URL is https://plus.google. com/pages/create

your page’s profile photo. After that, you can promote your new page through your personal profile. You will also see a URL that is unique to your business page on Google+ and instructions on how to connect your page to your website.

You will get an option to create a page as a local business or place; as a product or brand; as a company, institution or organisation; as arts, entertainment, or sports; and, in the ‘Other’ category. Once you have chosen your page category and filled the name of the page, its subcategory, and visibility settings, and agreed to the terms and conditions, press the big red ‘Create’ button to create and start filling your page profile. Once you have chosen your page name and category, you will be asked to insert a tag line, up to 10 words long, and an image for

Useful Links: http://googleblog.blogspot. com/2011/11/google-pages-connectwith-all-things.html https://plus.google. com/115200251016762857369

Q Why doesn’t my website get traffic? I have invested heavily in its design and look. I also had a very senior copywriter work on its content. What am I missing?

A Before you start thinking of web traffic, it really helps to understand search behaviour that is relevant to your business. What is your target audience searching for online? What are the unmet needs people are trying to fulfill online that you have a solution for? What keywords do they use to search for solutions?

While having a greater understanding of your industry will inform you of your consumer’s needs and purchase behavior, online search trends can be spotted and researched using various free and paid tools. You can start off with the Google Keyword Tool, Google Insights tool and even the ‘Related Searches’ feature in Google to see the type of phrases used to search for solutions you provide. In addition to looking for high volume

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searches, it is always good to see the competing pages. In the example below, a search for “iPhone apps” at http://www.google.com/insights/ search yields these trends which could be a goldmine for someone looking to market app services.

picture captions and alt tags, inter-site links add value to your site’s SEO. Try to stay away from applications and designs that slow down your loading time which is looked down upon by search engines as well as users.

Once you have found keywords that have significant volume of searches and less competition, you can structure your web content based on these trends. This helps you in two ways – your web pages speak the language your customers use on search, and your chances of coming up for phrase matches on search engines increase when you leverage already popular search queries in your content strategy.

Useful Links: http://www.viperchill.com/keywordresearch http://www.hubspot.com/searchengine-optimization-kit

A very important aspect of being chosen for a keyword or phrase by search engines is also how many inbound links point to your website and its pages using those keywords (this is called anchor text).

You should have a strategy to get inbound links – the most organic way of course is to have valuable and shareable content. In addition to these broad starting points, using keywords in page titles, headings,

Q How can I use Facebook ads for my business? I do not see how a platform people use for sharing pictures and updates can be useful to businesses.

A The power of Facebook advertising is in its various levels of segmentation. Many business advertisers and their agencies use the shotgun approach and target everybody in the country or, at the most, people in a targeted age group.

To make sure that you are not wasting your marketing budget, you must use Facebook advertising, targeting features in a more focused

Farrukh Naeem is a digital strategist and social media consultant based in Abu Dhabi, UAE. His marketing blog (copywriterjournalist.com) has a readership across 140 countries and his tweets (@farrukhnaeem) are followed by more than 11000 people worldwide. Farrukh has worked with global brands like Microsoft, adidas, HP, Honda, Xerox, Siemens, the United Nations, etc. and has over 12 years of marketing experience in Asia and the Middle East. way. Facebook ads let you target by the name of a university, even by a course taken. So, if you were a business recruiting interns, you could easily use Facebook and target the top colleges.

Facebook lets you communicate directly to them through their advertising interface. There are even ways to target specific designations, by company, city, country and interests.

The multiple levels of segmentation make Facebook advertising a unique model, where the cost of entry can be as low as US$5. But if you do not have a focused strategy, you could end up losing money, or targeting those who might not convert into paying customers.

Useful Links: https://www.facebook.com/ help/?page=203882222982239 https://www.facebook.com/business/ ads. 

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Motivation

How to start enjoying your work Trapped in a rut? Anesh Jagtiani offers tips to overcome this barrier.

A

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

If so, you might have heard that the heart attack rate is 30 per cent higher on Monday mornings (Sunday mornings if you’re in the Middle East). And that working for someone you don’t like can increase your risk of obesity by nearly 50 per cent?

Considering this, how important would it be for you to start learning to enjoy your job more? Pretty important I assume; so, here are eight things you can start doing today that will help.

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

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

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

Own your mornings Your day is likely to get a lot better if you spend 10 to 15 minutes in the morning doing something that is important to you. For example, if you have plans to get in better shape and you take care of it first thing in the morning, you’ll have confidence

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Motivation

that you’ve already “paid yourself” that day.

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

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

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

Enroll in ‘four wheels university’ The material which you listen to in the car on the way to work and on the way home has a profound influence on your attitude both at work and at home. You’ll also be a lot more confident about yourself if you use the time in your car to educate yourself about something that is important to you.

Get some motivational or inspirational CDs, which you can listen to (or perhaps even some recordings of your favorite comedians) and start committing your commute to work time to your own personal growth.

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

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

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

Get an emergency fund Start putting away money into your savings account or a money market fund, and keep doing this until you

have anywhere from three to six months of expenses put away.

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

Opportunities to prove yourself Start looking for more opportunities and work to improve your worth with both your co-workers and your superiors.

Sometimes all you have to do is ask, and you might be surprised at what kinds of opportunities arise from it.

This will also help your employer to see you as a more viable asset to the company.

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

Give your best and start now Even if you don’t like your job, and plan on doing something different in future, start giving your best to it right now. No matter how much you dislike your job, you have to remember that the habits you’re building are the same habits you’ll take into your next job.

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

So give yourself the best opportunity to be successful in everything that you do by giving your best, starting right now. 

No matter how much you dislike your job, you have to remember that the habits you’re building are the same habits you’ll take into your next job.

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Is your audience seeing your real value?

Kevin Abdulrahman emphasises on the value of world class communication skills in order to influence business decisions.

I

will start by making a bold statement.

Far too many SME owners are leaving money on the table. This is money that can and should be theirs, and yet, they are leaving it on the table. The chances are that, you too, are doing the same.

How and why is this happening?

Well, as a professional (no matter what position you hold), a significant percentage of your time is spent communicating, explaining, formulating, informing, influencing, inspiring, presenting and selling.

Your ability to speak to impact, inform, influence and inspire will reflect on how others will perceive you, your idea, your story, your value, your people, your business, your brand, your credibility and your competence.

As a professional, you have to ask yourself whether you are

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communicating to your audience in a way that allows them to see your real value.

Is your audience seeing your rightful position and real proposition of ability as a professional, group, service, or brand?

Just imagine that you deserve to make hundreds of thousands or even millions of dirhams because of the fact that you have an edge, perhaps by way of your knowledge, abilities and skills. What you have to offer is both useful and valuable, yet it is difficult for your audience to realise this because you haven’t developed the skills to communicate well enough. Worst yet, you have left the door wide open for your competition to come right through and enjoy a share of your pie.

“Crazy!!!” you might say. You would probably continue to declare, “This would never happen to us. We are competitive and sharp. We won’t allow it.”

Yet, time and time again, I continue to see savvy, smart and sensible professionals and groups fail to show their audience their real worth.

They overlook the crucial value enhancing trait of developing and refining their public communication skills to a world class level in order to ensure that their audience recognises the true level and real position of their knowledge, skill and abilities.

Many SME owners spend a vast amount of money ensuring that their brochures, magazines, videos, website, advertising, press releases and overall communication is of the highest of qualities - and so they should.

However, all that great work fails to reap the full reward because not enough people end up buying it.

The world is fiercely competitive with countless options. It is filled with so much noise that the audience

Leadership

has to sort through thousands upon thousands of messages, as they seek authencity and direction to make the best choice for purchase.

It would be interesting to find out what are people really buying today?

The following may come to you as a new realisation or perhaps serve as a reminder of what you may already know to be true in today’s economy.

that you hold (what ever it may be).

This is why many advertising, communication, PR agencies and heads of departments of global entities request for me to work with their most crucial piece of the puzzle in their campaigns – their professionals (from top to bottom) who have to present and speak in front of audiences of five, 50, 500 and 5000.

People aren’t buying your brand.

People aren’t buying your message.

Even leading groups and professionals, that have already developed their speaking and presentation skills over the years, realise how refining their ability to communicate publicly at world class levels make a significant difference.

More so now than ever, the first and foremost transaction on every level is

Truth is, you can continue to spend money on ensuring that

People aren’t buying your business.

People aren’t buying your product or service.

Kevin Abdulrahman is considered to be Asia’s most sought after motivational and leadership speaker who has athletes, celebrities, CEOs, executives, government entities, models, musicians, private companies, public organisations, royalties, schools, sports teams and universities as his client list.

He is sought after to consult, coach, train, work with and speak to groups, helping them take their results to the next level. Kevin Abdulrahman is also the creator of countless training programmes in the fields of self improvement, motivation, leadership and speaking to impact, influence, inform and inspire. Visit Kevin’s website www.KevinAbdulrahman. com or contact the Management Team on lubna.allaham@ kevinabdulrahman.com.

making it difficult for you to reap the full rewards of all that you put in by way of time, energy and investment.

I hope that the thought I’ve shared with you today serves as either a realisation and/or reminder of the importance of developing and refining your crucial value enhancing trait. rather clear- people buy people.

Which means that, your audience today, will first have to buy you, and then will they only choose to buy into your message, your service, your business and ultimately the real value

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every element of your business communication is great, but if you fail to work on the value enhancing trait of presenting with power and speaking with impact, then your audience will fail to see the real worth and value of your offering, thus

Just imagine what it would do to your bottom line when your audience realises your real value as a professional, business or brand?

Has the time come for you to present with power and speak with impact? 

THOSE WHO MADE A MARK.

WOMEN

entrepreneurs

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Women entrepreneurs

Staying ahead of the curve Lama Bazzari, owner of NStyle International, gives an account, to TIS, of her journey to being one of the top business women in the country.

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any might not know Lama Bazzari, but the beauty industry is awash with NStyle International, Bazzari’s booming, grooming business with 15 outlets spanning the Middle East, welcoming 40,000 customers on a monthly basis.

NStyle International opened shop first in Bahrain, after which Bazzari scouted for viable business environments, shortly setting up in the UAE. “Setting up a business in UAE is quick and very efficient,” says Bazzari, who very proudly states that she currently owns 12 stores in the UAE, in the most prestigious locales and shopping destinations.

Dubai, now, houses the regional headquarters for the company that employs a 40-strong senior management team, offering day to day support to more than 450 beauticians working across NStyle’s brances, ensuring consistent, high quality services.

NStyle was the brainchild of Bazzari after she identified a niche need in the market for premium services in the beauty industry. “My experience in this market comes from the US, where I had my nails and beauty regiment done in luxurious beauty

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havens,” recalls Bazzari. Working on this idea, the first NStyle Nail Lounge opened its doors in Bahrain, offering high quality services in a plush store environment, while offering affordable prices. “With the success of our first branch, the company grew its presence regionally, with branches in Jordan, Kuwait, Bahrain along with the UAE,” says Bazzari.

The brand is now diversifying its portfolio of products and services, one of which is the launch of NStyle’s own nail polish, which is manufactured in the US. “We have already signed up several distribution deals for the polishes across the MENA region, and have several US-based distributors keen on carrying the brand, as it’s nice to see a homebred and regionally inspired brand exported globally,” Bazzari excitedly offers.

It might seem like a very pretty picture now, but the journey has not been as easy as it seems. “Setting up a new business is definitely a mass learning curve that every budding entrepreneur experiences first hand, from the strenuous working hours, to the pitfalls and obstacles along the way. But as the business evolves, you learn to sweat out the small stuff, turn obstacles into opportunities and keep your eyes set

Women entrepreneurs

You have to love what you do and be passionate about it. This will lead to rewards.

on the big picture,” Bazzari advises.

Women entrepreneurs face the same obstacles as their male counterparts, sometimes even more. The gender divide in the region, although significantly improved, still needs more consideration.

Bazzari laments the fact that more women are not entering the workforce. “I believe women in the UAE and across the region have made remarkable progress in the past decade, with more women entering the work force and setting up their own businesses. However, statistics show we are way behind our western counterparts that see over 75 per cent of women entering the workforce compared to our region’s 36 per cent,” she says.

“If we are to compete on a global level, and boost our economies in the long-term and create more jobs, we must engage and tap into the skill and knowledge of the female population, and collectively do our part in driving change on the ground, allowing more women to enter the workforce and start their own SMEs. I believe the private sector can contribute greatly in driving this change by offering women the tools necessary, such as launching impactful mentorship programmes,

offering angel investments that spearhead innovation and create new jobs and facts on the ground.

With over 60 million Arabs living on less than US$2 a day, creating jobs is integral to the growth prospects of our region as a whole,” Bazzari adds.

As for spearheading this effort of giving back to the community, Bazzari makes no excuses. NStyle launched its corporate social responsibility programme in 2001.

Give N Style actively supports thousands of women across the region by offering them micro loans, allowing them to raise their standards of living and enriching their lives.

Additionally, the proceeds of all retail sales of the NStyle nail polish brand will be sent to Dubai Cares and Palestine Children’s Relief Fund with the aim of bettering the lives of children by supporting their education and medical assistance.

More CSR projects are in the pipeline and Bazzari is keen on activating them in the near future.

The future is quite predictable for Bazzari. In the next few years, NStyle will expand into existing and new markets regionally and internationally, owing to a robust beauty industry.

“The beauty industry in the UAE is firmly established and competitive.

As a business owner, you need to continue to innovate and stay ahead of the curve and ensure you maintain the highest of standards at all times, geared at total customer satisfaction.

Women, be it a professional career woman, a socialite or a busy mom, grooming plays a huge factor in a woman’s life and has become an essential part of our daily regimen, and it undoubtedly allows a woman to enjoy some personal time as she sits back while being pampered from tip to toe. If you continue to offer a consistent and high quality service, you will gain client loyalty and firmly retain a strong market share,” Bazzari points out.

Her priorities are well established.

As a mother of three children, a wife and a business owner, Bazzari has learned to perfect multitasking of all three roles and sets herself on fulfilling these roles well, by managing her time.

When she is away from the office, Bazzari loves to read and unwinds by catching a movie or spending quality time with her family and friends.

“You have to love what you do and be passionate about it. This will lead to rewards,” she finishes. 

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Women entrepreneurs

Work hard, network harder Sue-Sharyn Ward (SW), owner of Productivity Solutions, gives The Intelligent SME (TIS) a run down on her experience of doing business in the Middle East and her journey to success.

TIS: How easy was it to begin a business in the UAE and run it?

Was it easy to get licensing in your area of business?

SW: Until the establishment of the free zones, it was an extremely long, laborious and expensive process to legalise a fledgling business. Many entrepreneurs were forced to put off the idea of a start-up because of the difficult laws, and it is only in the last 10 years, when things began to change, that people started believing in achieving their dream of owning their own business TIS: What kind of research did you have in place before you began your business? Did you have some sort of advisory board, or was it a peer group of like-minded individuals?

SW: My research involves 30 years of living and working in the Gulf, firstly Kuwait and then UAE, where I constantly saw the need to support expatriates in both setting up their own businesses and in managing and streamlining the processes, so they could get on with the task of growing their companies.

TIS: What were the different types of challenges you had to face in the course of running your business?

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SW: In the 1970s women were not accepted into management roles in the GCC and, it was only once the UAE economy started growing quickly in the 1980s and 1990s, that the skills and knowledge of business women were taken into account, and accepted for other assignments other than the traditional roles of teacher, nurse or secretary.

Also, the majority of companies in the UAE did not recognise the need for support and services to organise and manage administration and back office areas of businesses.

They grew organically, successfully selling their product or service, while their own infrastructure was underpinned by a small group of clerks and secretaries who created their own filing systems, accounting processes and office practices, which ensured them a job for life because no one else in the company could understand and follow their systems.

TIS: What is your opinion of the gender divide in the UAE - Does it exist, or not? Do you see a shift in the opportunities that are in the market for women entrepreneurs currently? Have you noticed an upward trend in the growth of women entrepreneurs?

Women entrepreneurs

SW: Yes, there is still a massive gender divide in the expatriate and national areas of the business community, but for different reasons.

However, Emirati women are being given tremendous opportunities to be creative, spread their wings and grow in a very nurturing society, supported by both governments and their rulers..There is also an extraordinarily dramatic increase in the number of young Emirati women establishing themselves as entrepreneurs straight out of tertiary education.

For expatriate women the story is completely different. SMEs, many of them run by women entrepreneurs, are seen as the backbone of the economy. However, there is little or no support for these pioneers, unless you have substantial wealth to pay for such support. There are neither government run nor private sector institutions that are prepared to provide support.

TIS: As a productivity specialist, what is your opinion of entrepreneurship in the UAE? SW: Anyone who sets up on his/ her or their own in business is considered entrepreneurial here in the UAE, although, by rights, many of them are just working for themselves – it is never their intention to put a business structure in place or take more than a rudimentary interest in establishing a company. An example would be the wife of an expatriate who decided to get a tour guide licence in either Dubai or Abu Dhabi and then freelances with tour companies, taking on tours as and when the time or money suits.

Those entrepreneurs who take the big leap and get licences, rent offices and employ staff to set up their businesses, are always faced with the dilemma when deciding

where and how to structure their business to their best advantage.

TIS: What shortcomings do you see and how are you bridging the gap?

SW: There is not enough transparency of processes, costs, regulations and financial restrictions entailed in setting up to help these people make an educated decision on which free zone or economic department to go with when setting up. We set up the Small Business Incubator to address just such issues, and because it is open to male and female SME owners and operators, we get a really nice mix of newcomers and experienced hands, all of whom take some benefit from our meetings, whether it be the networking, advice from experts or just the assurance that there are others in the same boat and they have been able to achieve.

We have also set up a mentoring programme for university students who are doing MBAs as working adults. This is an opportunity to impart advice and experience to these enthusiastic businessmen and women who are looking to progress their careers here in the UAE. TIS: How do you network? Do you prefer going to networking events, or do you target niche clients?

SW: I network everywhere, every day, in some way or the other, from specific events, to business breakfasts and lunches, to organising networking workshops, to teaching networking skills, to just chatting to someone in the lift for 30 seconds.

TIS: Please give us an outline of your routine. How do you manage a large business and manage to spend quality time at home?

SW: I am and have always been a single woman; so my work-life

balance tends to be somewhat lopsided. Also, many of the things I do, as part of my work routine, are actually more on the social side of the fence. Networking is one of my strongest attributes, and I acquire the majority of my clients during face to face get-togethers and word of mouth recommendations.

Every working day is different for me because I have so many strings to my bow. Productivity encompasses all aspects, both business and personal, of your daily life and I cover a large portion of those areas; so, one day I may be working from home and designing a process to set up a tailored filing system, the next I may be project managing the installation of a local area network and IT workstations for a new company.

TIS: What are your special preferences? Do you have hobbies or passions that you enjoy?

SW: My greatest passion in my life has always been dance, I studied and worked as a dancer in the 1960s and early 1970s and even up to my mid 50’s I would be depressed if I did not dance everyday, even if it was only a jig or polka around the room followed by my dog! There are many other delights in my life, such as a good book, a great film, a wonderful meal with friends or a quiet evening with my cat sitting on my lap purring contentedly.

TIS: What insights would you like to give to new women entrepreneurs?

SW: Networking is a time-honoured tradition going back thousands of years in this part of the Arab world.

The ‘majlis’ is the perfect example of a strong, supportive networking culture. Here, in the UAE, networking and face to face meetings will help you achieve your goals faster than sitting on the internet or browsing Facebook. 

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Gives your business an unfair advantage

inspiration series seminar

OWN YOUR CROWD

"Speak to Impact, Influence, Inform & Inspire"

“Y

our ability to speak will reflect on your results,” said Kevin Abdulrahman, Asia’s number one leadership and motivational speaker. Abdulrahman was speaking at The Intelligent SME’s Inspiration Series seminar held at Media Rotana recently. The topic being “Own Your Crowd,” Abdulrahman gave succinct points to business owners and decision makers on effective communication. He pointed out that working out a strategy for a presentation is important, in order to make sure the audience listens. He included many real-life scenarios of effective communication, and gave tips on how to make a presentation more interesting, result-oriented and effective.

If you would like to give your business the unfair advantage by participating in the Inspiration series, just SMS your name to 055 9023185 / e-mail: events@spiholding.net

T

he Intelligent SME’s fourth edition of the Fashion Club Mega Party took off with a bang recently, with designers from Preston University, Ajman, showcasing their design collection.

Sawsan Hussain, Zanab Ramah, Kanwal Khan and Samah Ali gave splendid show of creativity and personal expression, while focusing on the latest trends in the fashion industry. Themes in each designer’s collection were Fabric Manipulation, Modern Architecture, Ma Liberte and Luxury Dubai. With fabulous music

by DJs Sugar Beat and Paul Hamilton, the Fashion Club Mega Party was an unforgettable event, sponsored by Du, RAK Bank, Top Ten Beauty Salon, Media Rotana and MMI.

Presents

Supported by

An Initiative by

Events calendar

Networking opportunities Important business events across the globe INTERNATIONAL PAINT, RESIN, COATINGS AND COMPOSITES FAIR 2011 Date: December 28 – 31, 2011 Venue: Tehran International Fair Ground, Dr. Chamran highway, Tehran, Iran Paint, resin, coating and chemicals have special significance with regard to the protection of goods. Meet the industry peers and find out significant developments in the industry with reference to the Middle East at IPCC 2011.

Website: www.ipcc.ir MUBADALA WORLD TENNIS CHAMPIONSHIP Date: December 29-31, 2011 Venue: Abu Dhabi International Tennis Complex, Zayed Sports City, Abu Dhabi The Mubadala World Tennis Championship, now in its fourth year, is one of the region’s most eagerly anticipated sporting event bringing six of the world’s top tennis players to the Abu Dhabi International Tennis Complex in Zayed Sports City. Don’t miss out on three days of thrilling action to entertain the entire family leading up to the new year.

Website: www.abudhabievents.ae VOLVO OCEAN RACE - ABU DHABI Date: Dec. 30, 2011 - Jan. 14, 2012 Venue: Abu Dhabi Corniche Be in Abu Dhabi at the turn of the year against a backdrop of aweinspiring racing yachts and among sea hardened sailors and more than 100,000 fans of the 39,000 nautical mile round the world race, widely regarded as ëThe Everest of Sailing.

Website: www.abudhabievents.ae HEELS AND DEALS NETWORKING EVENING Date: December 30, 2011 Venue: Media Rotana, Tecom Heels and Deals presents a

networking evening with guest speaker Cynthia Trench of Trench & Associates legal firm. She will present on the legal aspects of owning and operating a business in the UAE including Inheritance (Wills), Intellectual Property and Company Formation followed by a Q&A session. The timings for the event are 6:30 pm to 10 pm and the fees are AED120 (members) and AED150 (Non-Members) in advance, AED170 (members), AED200 (Non-Members) at the door. Registration & online prepayment can be made on the Heels and Deals website.

Website: www.heelsanddeals.org 2012 SILICON VALLEY INTERNATIONAL AUTO SHOW Date: January 5-8, 2012 Venue: San Jose McEnery Convention Centre, San Jose, California, USA An exciting, polished event for the public and industry personnel to understand trends, get a first look at new models, and attend technical discussions.

Website: www.motortrendautoshows.com LONDON BOAT SHOW Date: January 6-15, 2012 Venue: London Exhibition and Convention Centre London’s biggest and best-loved boating experience, the Tullett Prebon London Boat Show returns, bringing a host of great show attractions and regular show favourites to the capital. The show is an unmissable day out, where everything to do with activity on, in and under the water is there to be discovered and enjoyed.

Website: www.londonboatshow.com STEELFAB Date: January 9-12, 2012 Venue: Expo Centre Sharjah SteelFab is the largest exhibition of

its kind in the Middle East and Africa.

SteelFab provides a complete range of machinery & equipment in metal forming, welding & cutting, surface preparation & finishing, grinding & cutting, machining & other allied engineering disciplines.

Website: www.steelfabme.com HONG KONG TOYS AND GAMES FAIR Date: January 9-12, 2012 Venue: Hong Kong Convention and Exhibition Centre The Hong Kong Toys and Games Fair is the largest toy industry event in Asia and the second largest in the world. Exhibits include educational toys and games, hobby goods, magic items, outdoor & sporting items, paper products and toy packaging, video games, along with Brand Name Gallery for branded toys.

Website: www.hktdc.com ‘INVITE A COLLEAGUE’ NETWORKING LUNCH Date: January 10, 2012 Venue: World Trade Centre Club, World Trade Centre, Sheikh Zayed Road The IBWG Dubai invites members and guests to introduce emerging professional female talent to the group under the banner theme of sharing the knowledge wealth and mentoring the next generation of entrepreneurs at a special 60-minute live mentoring session. Pre-booking rates: AED150 (members) & AED170 (non-members); rates on day of event: AED170 (members) and AED190 (non-members).

BETT SHOW 2012 Date: January 11-14, 2012 Venue: Olympia, London BETT is the world’s leading event for educational technology where education professionals can evaluate and purchase a comprehensive

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Events calendar

Networking opportunities Important business events across the globe range of ICT products and services.

From early years to universities, BETT is an indispensable part of the annual knowledge-gathering process, coming at a time when establishments are planning and budgeting for the new school year.

Website: www.bettshow.com INTERSOLUTION 2012 Date: January 12-14, 2012 Venue: Flanders Expo, Maaltekouter 1, Ghent, Belgium A multi-pronged approach to harnessing solar energy solutions, Intersolution 2012 will address the latest developments with regard to solar energy. Participants include professionals active in the areas of solar cells, PV modules, sola panels, silicon, production equipment, fixation systems and system components.

Website: www.intersolution.be TRAVEL AND TOURISM FAIR 2012 Date: January 13 - 15, 2012 Venue: Gayatri Vihar, Palace Grounds, Bangalore, India TTF is India’s leading exhibition for the travel & tourism industry.

Since 1989, it provides an annual opportunity for organisations from India and abroad to showcase their products and services to a large cross-section of the travel trade industry and consumers across major markets in India.

Website: www.ttfotm.com INTERSEC DUBAI 2012 Date: January 15-17, 2012 Venue: Dubai International Exhibition and Convention Centre Intersec is the leading regional trade event in the security, safety and protection industries. It features a brand profile of four niche vertical sections, namely: commercial and information security; homeland security and policing; safety and

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health and fire and rescue, providing a current reflection of the industry portfolio and the latest trends.

Website: www.intersecexpo.com WORLD BOUTIQUE Date: January 16-19, 2012 Venue: Hong Kong Convention and Exhibition Centre, Hong Kong As the first independent show in Asia dedicated to promote brands in fashion, the World Boutique, Hong Kong features designers’ collections and brands from around the world.

It is held concurrently with the Hong Kong Fashion Week for Fall/Winter. www.hktdc.com WORLD FUTURE ENVIRONMENT EXHIBITION Date: January 16-19, 2012 Venue: Abu Dhabi National Exhibition Centre World Future Energy Summit is the world’s foremost annual meeting committed to advancing future energy, energy efficiency and clean technologies by engaging political, business, finance, academic and industry leaders to drive innovation, business and investment opportunities in response to the growing need for sustainable energy.

Website: www.worldfutureenergysummit com ARAB HEALTH 2012 Date: January 23- 26, 2012 Venue: Dubai World Trade Centre The Arab Health Exhibition & Congress is the largest event of its kind in the Middle East. Now in its 37th year, Arab Health provides an unrivalled platform for the world’s leading manufacturers, wholesalers and distributors to meet the medical and scientific community from the Middle East and beyond.

Website: www.arabhealthonline.com EUROPEAN AMUSEMENT AND GAMING INTERNATIONAL EXPO Date: January 24-26, 2012

Venue: London Exhibition and Convention Centre EAG has established itself as the major international event for all involved in Amusement and Gaming.

2011 saw 5,800 visitors from over 78 countries. Top industry decision makers must attend to view the latest amusement, gaming products and services the industry has to offer.

Website: www.eagexpo.com AMBASSADOR'S BREAKFAST Date: January 26, 2012 Abba, the Ambassador for South African will give a brief overview on the business environment between South Africa and the UAE Website: www.sabco-uae.org STANDARD CHARTERED DUBAI MARATHON Date: January 27, 2012 Venue: Downtown Dubai One of the most popular sporting events in Dubai, the 2012 Standard Chartered Dubai Marathon is scheduled to start and finish in Downtown Dubai adjacent to the Burj Khalifa. The starts for the Marathon, 10km Road Race and 3km Fun Run will be from the same start gantry location just up from the Burj Khalifa outside the Pavilion. The finish area for the Marathon, 10km Road Race and 3km Fun Run will be through the same finish gantry location on the opposite side of the road from the start gantry. Competitors looking to sign up for the full marathon distance of 42.195km, the popular 10km event or the 3km Fun Run can register online. Registration will close at midnight on December 31, 2011.

Website: www.dubaimarathon.org.

CISCO LIVE 2012 Date: January 29 - February 3, 2012 Venue: ExCel London Cisco Live is Cisco’s annual IT and communications conference. It’s the

Events calendar

Networking opportunities Important business events across the globe home of Networkers, Cisco’s premier education and training program, and also features Service Provider, Developer and IT Management programs.

MIDDLE EAST RAIL 2012 Date: January 30 – February 2, 2012 Venue: Madinat Arena, Madinat Jumeirah, Dubai.

Middle East Rail is the region’s largest dedicated rail event - a four day strategic conference and technology exhibition. It brings together rail leaders to address the challenges and opportunities in building the Middle East region’s rail networks.

Website: www.terrapin.com IBWG DUBAI JANUARY NETWORKING BREAKFAST Date: January 30, 2012 Venue: Thiptara Restaurant, The Palace, Downtown Dubai Join a dynamic group of business women from 7:30 am to 9 am for a lovely interactive forum session that will address key business topics impacting the local business community. Price-AED100 for members and non-members.

Website: www.ibwgdubai.com TAWDEEF 2012 Date: Jan. 31, 2011 – Feb. 2012 Venue: Abu Dhabi National Exhibition Centre.

The TAWDHEEF exhibition is the region's leading Recruitment event that offers the perfect platform for companies interested in developing their Emiratisation programme and workforce by meeting qualified Emiratis and other professionals.

Website: www.tawdheef.ae SIGN AND GRAPHIC IMAGING M. E. EXHIBITION Date: January 31 – February 2, 2012 Venue: Dubai International Convention and Exhibition Centre.

Sign and Graphic Imaging Middle East (SGI) exhibition is one of the most anticipated events of the year in the region for exhibitors and visitors in the signage, outdoor media, screen and digital printing industries. SGI Middle East brings together the largest gathering of both exhibitors and visitors from across the GCC, Egypt, Lebanon, Iran, Iraq, India, Pakistan, East Africa, and other countries.

Website: www.dwtc.com AIRCRAFT INTERIORS MIDDLE EAST 2012 Date: February 1-2, 2012 Venue: Airport Expo, Dubai.

This two day exhibition and conference provides the ideal platform for interiors suppliers, providers and buyers to network and establish new relationships in the Middle East. Middle East operators and passengers are seeking the ultimate in aircraft refinement, connectivity and efficiency.

Website: www.aime.aero MIDDLE EAST ELECTRICITY Date: February 7-9, 2012 Venue: Dubai International Exhibition and Convention Centre Now in its 37th year, Middle East Electricity provides the biggest platform in the region to do business in the power, lighting, new and renewable, nuclear and water sectors. This year the new additions to the event are a Smart Power conference, power and utilities infrastructure conference, and Middle East electricity awards among others.

Website: http://www.middleeastelectricity. com/ BRIDE ABU DHABI 2012 Date: February 8 – 11, 2012 Venue: Abu Dhabi National Exhibition Centre Bridal and Fashion exhibition filled

with the latest trends in bridal gowns, haute couture, wedding organisers, jewellery, photography, honeymoon destinations, flower designs, wedding cakes and much more.

Website: www.thebrideshow.com GOURMET ABU DHABI 2012 Date: February 8-23, 2012 Venue: Abu Dhabi Gourmet Abu Dhabi is a lifestyle gastronomic extravaganza that marries culture and cuisine impeccably, reflecting Abu Dhabi’s advanced modernisation and its rich Middle Eastern heritage. This annual epicurean occasion is exclusively crafted and exceptionally satisfying to the most discerning individuals who seek gourmet enjoyment in perfect grandeur.

Website: www.dubaimoves.com CITYSCAPE EGYPT Date: February 20-23, 2012 Venue: Cairo International Convention and Exhibition Centre Capitalising on the outstanding real estate investment and development opportunities in Egypt, Cityscape Egypt will bring together the entire spectrum of real estate professionals and high net worth individuals to conduct business in a professional and structured environment, view projects from those developers making headlines, discuss strategies to develop and regulate the real estate industry, meet private and institutional investors actively seeking to invest in the Egyptian real estate market, and create profitable and transparent joint venture partnerships.

Serving both business and private interests, Cityscape Egypt truly offers a first class opportunity to access one of the most dynamic markets in the world.

Website: www.cityscapeegypt.com

The Intelligent SME

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A business network of smart service providers

The Intelligent SME

A business network of smart service providers

The Intelligent SME

A business network of smart service providers

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Column

Leave thy ego, not thy consultant Utpal Bhattacharya on why you can ignore a good consultant at only your own peril.

I

t is always easy to make judgements on others. It does not take anything to make a few comments, especially for people who have seen success in their lives.

I have come across some of these successful individuals, who, at times, go to the extent of bragging about their achievements. This is what I have always described as success going into one’s head, the Hubris stage, which is followed either by stagnation or downfall from thereon.

The other side of the extreme, of course, is hyperactive entrepreneurs that are never, ever satisfied, micro-managing even the smallest work within a small company. They consider themselves experts in everything from accounts to service delivery and product development.

They always want to have the final say. These are the ones that do not allow consultants to come near them, until, of course, that moment, when they are in real bad shape, and are forced by circumstances to ask for help.

What I am driving at, is the strange reservation that a majority of SME owners hold against the idea of speaking to consultants, listening to them, and paying them for their time in this part of the world. It is always good to get a feel from third party, independent consultants, on how successful or efficiently a company is run, or gauge the potential upside or protect a possible downside by taking expert advisory. And, the areas of advisory could be as diverse as communication to finance, or consulting in different areas of processes and products in different industry verticals.

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I want to mention, here, a personal experience when a friend referred me to a potential SME client that required help in a couple of areas, which is not my domain expertise, a couple of years back. However, I decided to go and meet this chairman of this company to listen to his needs, and possibly suggest names of a few consultants with expertise in those respective areas.

It was quite funny that when I landed up in the company, I realised that the first area of help they needed was in communication, which is my domain expertise, as their touch-points and, up to the chairman, had no idea about messaging. They were neither speaking in unison nor giving the right message to either their external or internal audiences; in fact, they all looked a befuddled lot to the outside world, and were stagnating.

When I explained to the chairman where his problem stemmed from, he sort of understood, but would not accept the fact that they needed consulting in that area. So, they decided to change things on their own. Of course, they couldn’t. And very recently, when they needed to raise funding, and approached for help, they were not perceived too

well by the financing fraternity. To top it all, when finally, a prospective investor agreed to go to their office, as a first step to a possible fund infusion, wrong communication in the very first meeting stalled the proceedings. In fact, the potential investor came out of the meeting, and the first thing he said was, “They do not know-how much money they require and for what, or they might be just too secretive.”

My last word for this edition to SME owners is that expert consultancy is extremely important for growing successful businesses. You need to be constantly on the lookout for help, across processes, products and services, and other areas like finance and communication to get independent, expert advice. I regard good consultants as banks of industry experience, wisdom and intelligence. Buying their time will only add to your book value. So, take advantage when you can get hold of a good one. 