Trade & Export ME - Country Focus - New South Wales by Trade Export

COUNTRY FOCUS Bilateral trade

Building the food chain The Australian State of New South Wales (NSW) has a global reputation as an industry leader in agriculture and food production. The Hon. Andrew Stoner, Deputy Premier, New South Wales along with Mr. Moin Anwar, Trade and Investment Commissioner, Middle East and Meat and Livestock Australia (MLA), highlight the importance of the food sector when it comes to bilateral trade and investment relations.

ood producers and suppliers from NSW are among companies, from all over the world, that will be exhibiting at Gulfood 2014 in Dubai. The Deputy Premier of the Government of NSW, Mr Andrew Stoner, encourages visitors to visit the Australian Pavilion to find out more about some of the world’s finest quality and variety of food available from NSW. “The NSW companies include beef, lamb, seafood and poultry suppliers, butters, sauces and condiments producers, and suppliers of equipment for commercial kitchens,” Mr Stoner said. “When I visited the UAE last year, I found there was great interest in our agriculture industry. NSW has the most diverse agriculture and food production of any State in Australia and we produce some of the finest food, wool and grain.” “NSW has developed extensive links to international markets and maintains an excellent biosecurity status to ensure continued access to crucial trade markets.With the 32

JANUARY 2014

sector’s extensive capabilities and competitive positioning, the NSW agriculture and food industry has the potential for enormous growth,” he further remarked. Mr. Stoner was quick to point out that the NSW Government is working with industry to increase innovation across the sector, from production, to processing and packaging, marketing, supply chain management and more and welcomes foreign direct investment in agribusiness and food processing, both wholly-owned or in partnership that can harness local expertise.” The table shows the products traded between the UAE and NSW and it’s clear that food products hold an important place. According to Mr. Anwar, the bilateral trade between Australia and the UAE stood at AUD 5,592.7 million in 2012-2013. Agriculture and food industry NSW is an industry leader in the field of food through active management and investment in the sector.

Hon. Andrew Stoner, Deputy Premier, New South Wales

Food processing in NSW is highly automated, with highly efficient operations, including: • Rice mills, wheat flour mills, and corn mills • Canola seed oil and soybean oil plants • Meat packing and poultry slaughtering plants • Sugar cane refineries.

Research and development is an important focus for the NSW Government to drive improvements in agriculture and invest millions of Dollars each year to support up to 900 projects across the State. According to MLA, which is a producerowned company that provides marketing and research and development services for the Australian cattle, sheep and goat industries, NSW has Australia’s second largest cattle herd, after Queensland, with 5.8 million head of cattle (2012), 20% of Australia’s herd. Australia produced 2.2 million tonnes cwt of beef in 2012-13, with NSW producing 22% of the total. Beef cattle are raised on an estimated 50 million hectares throughout all agricultural areas of NSW, although most are found in the Upper Hunter, North West Slopes and the Northern and Central Tablelands. Beef cattle production was carried out on more establishments than any other agricultural enterprise in NSW, with over 14,000 farms and lot feeders receiving most of their income from beef production. MLA in the MENA region works with retailers, foodservice operators, importers, manufacturers and Australian Exporters to maintain and increase the demand for halal red meat and livestock to the region. MLA creates opportunities for livestock supply chains from their combined investments to build demand and productivity. According to the organisation, strong international demand for Australian beef and sheepmeat, including from the Middle East,

will continue to drive Australian production. Exporting 67% of all beef production and 51% of lamb production, Australia is focused on supplying high quality product for export markets. NSW, with its varied climate and strong history of beef and sheep production, will continue to be an important location for high quality red meat production. The NSW sheep flock comprises 37% of the 75 million sheep in Australia and is the largest flock amongst the Australian state and territories. NSW accounts for 23% of Australian lamb production and 26% of mutton production. The agriculture and food industry has strengths in wheat, meat, wool, fish, seafood, dairy, fruit and vegetable products, wine, edible oils and fats, flour milling, cereal foods and bakery products; pet food and animal feeds; soft drinks and more. Meat, meat preparations, cereals, dairy products, fruit and vegetables are major NSW exports to the Middle East. Many NSW producers are gaining Halal certification. Most effort has focussed on red meat (lamb, mutton and beef) exporters who have established processes to enable them to meet customer requirements in markets as far away as Morocco. Other Halal-certified produce includes honey and edible oil. The highest standards of food safety and hygiene are enforced in NSW, whether the produce is being exported or sold on the domestic market. Food, grain and produce

suppliers from NSW have a reputation for their reliable produce. A large proportion of national and multinational agriculture and food corporations have based their Australian operations or established substantial manufacturing facilities in NSW. These include well-known companies such as: Allied Mills, Arnotts, Bega Cheese, Cargill, Coca-Cola Amatil, Ferrero, George Weston, Goodman Fielder, H J Heinz, Inghams, JBS Swift, Kelloggs, Lion Nathan, Manildra, Mars, Masterfoods, Wrigley, McWilliams, Nestle, Primo, Sanitarium, Sara Lee, Simplot, Sunrice, Unilever and Viterra. These plants are very globally competitive. Nestle has major food manufacturing operations in NSW, and in June 2013 Nestle announced it would invest AUD 300 million to expand its Australian operations because its factories in Australia are among the top 25% of the most efficient factories in Nestle’s global operations. Sector strengths NSW producers are ideally positioned to supply counter-seasonal markets in Asia, Europe and North America during the Northern Hemisphere winter months. NSW is close to some of the largest and fastest growing food markets in the world, including Japan, China, India, South Korea, Taiwan and the ASEAN countries. JANUARY 2014

COUNTRY FOCUS Bilateral trade

Australian and NSW agriculture and food companies enjoy an international reputation for being “clean and green.” Stringent quarantine policies and sound management practices allow NSW produce to be grown free of many pests and diseases found in other parts of the world. The State’s relatively low population density and strict environmental controls protect the farming sector from contaminants that are commonly found in heavily industrialised, densely populated countries. NSW is the only Australian State with a fully-integrated food safety regulatory system. Administered by the NSW Food Authority, this system underpins the safe supply of food to both domestic and export markets, by providing high-level, sciencebased food safety information and access to leading-edge expertise.

Moin Anwar, Trade & Investment Commissioner, Middle East, New South Wales

NSW’s multicultural society has introduced the State’s food businesses to different cuisines, flavours, ingredients, techniques and practices – encouraging the development of new industries, such as wine, olive oil and Asian vegetables, to name a few. It continues to inspire the development of new products, as well as business links to many of the State’s most prospective export markets. NSW has a great diversity of natural environments, as well as wide-ranging agricultural production systems that allow farmers to grow a broad array of high-quality, 34

JANUARY 2014

ABOUT The NSW Government has a Trade & Investment Office in Abu Dhabi which provides a contact point for businesses and people who want to do business in Sydney and NSW. For more information, please contact uae@sydneyaustralia.com

low-cost produce. This gives NSW strengths across the full spectrum of product categories. NSW hosts some of the best food research and development and training institutions in Australia. They include: • The Department of Primary Industries’ integrated network of 28 research stations, centres of excellence and institutes (DPI is ranked in the top 1% of world research institutions in agricultural science, and plant and animal science) • Technical and Further Education NSW’s network of ten institutes and over 130 metropolitan and regional campuses • 11 major universities • CSIRO’s Food Science Australia; and • BRI (formerly the Bread Research Institute).

Driving growth As the world’s population continues to increase, and Western food trends spread, the demand for animal-based protein (i.e. meat, dairy, seafood) and processed foods grows, opening up new export opportunities for NSW agriculture and food companies. The State’s international reputation for quality and robust traceability and certification systems have put NSW agriculture and food

companies in an ideal position to make the most of consumer mega-trends such as ethical consumerism, premiumisation, convenience and functionality, as well as demand for culturally-certified foods, such as halal. There is also enormous potential opening up for NSW agriculture and food products that help address health issues such as obesity, diabetes, celiac disease, heart disease, allergies, some forms of cancer and alcohol abuse. NSW agriculture and food companies are at the forefront of novel technologies such as genetic modification, nanotechnology, new processing technologies (irradiation, high pressure processing, low-energy electron beam processing, pulsed electric field processing), “smart” logistics control and e-commerce. These technologies are opening up new product ideas, new market opportunities, and new, more cost-effective business processes. In Dubai, Qantas in association with Australian Business Council Dubai and supported by the NSW Government will promote and host a series of events across the Australia Day weekend. The highlight is on 25th January when there will be a G’Day Dubai Gala Evening at the Park Hyatt, Dubai Creek with live gourmet cooking stations.

COUNTRY FOCUS Virtual office

Why Servcorp works?

Laudy Lahdo, General Manager, Servcorp Middle East, tell us how virtual offices are the solution to doing business in a cost and time effective way. Please tell us about the concept of virtual and serviced offices.

Servcorp was founded on one principle - sharing the costs of the day to day running of an office will give a company the infrastructure, people and fit out that will allow them to compete and become more successful. The serviced and virtual office solutions allow companies to compete in global markets, with the IT infrastructure and presence of a multinational company and without capital overlay. A virtual office is a solution that enables a company to work from anywhere in the world and still have a prestigious CBD address. This is ideal for businesses who understand the significance of having a presence in a central business address without committing to a physical office lease. The Servcorp Virtual Office takes the offering even further, thanks to the global IT and communications network. This exclusive benefit gives Servcorp clients access to a portfolio of IT and communications saving them money and time. This is especially beneficiary for business people who work remotely or are mobile and on the go. These services include real-time meeting room reservation, real-time receptionist instruction panel, fully secure faxto-email, commercial grade voice over internet protocol phone technology built around a single landline number, online meetings (via WebEx) and large file transferring. It is everything, but the physical office! Serviced offices on the other hand are fullymanaged and equipped office suites complete with an already set up IT and communication systems, dedicated receptionist to answer calls and additional support staff to take care of the day to day requirements. 36

JANUARY 2014

THE SERVCORP NETWORK

Your business network of locations, people and communications technology

A US $50 MILLION NETWORK LIKE NO OTHER.

SERVCORP

The Servcorp global network ensures performance and quality, with a guaranteed 99.98% uptime providing you with massive savings. This is the only global network owned and operated by a Serviced and Virtual office provider. Our global network is like a facilities cloud combining virtual with actual physical capabilities. Run your business from anywhere in the world whilst Servcorp give you the local physical presence that your customers expect. LONDON

BRUSSELS PARIS

SAN FRANCISCO LOS ANGELES IRVINE

BOSTON CHICAGO NEW YORK CITY TYSONS CORNER PHILADELPHIA WASHINGTON D.C. ATLANTA DALLAS HOUSTON MIAMI

ISTANBUL

BEIJING

NAGOYA TOKYO YOKOHAMA OSAKA SHANGHAI HANGZHOU KOWLOON HONG KONG FUKUOKA

BEIRUT KUWAIT CITY AL KHOBAR-DAMMAM RIYADH JEDDAH

CHENGDU

MANAMA DUBAI ABU DHABI DOHA MUMBAI

HYDERABAD BANGKOK

MANILA

KUALA LUMPUR SINGAPORE

BRISBANE PERTH ADELAIDE MELBOURNE

SYDNEY CANBERRA

AUCKLAND WELLINGTON

HOBART

Please give us some background about Servcorp’s operations globally and in the Middle East. Servcorp is the world leader in serviced and virtual offices and IT services providing business solutions to multinational companies as well as small and medium enterprises in over 140 locations across the globe. Servcorp was founded in Sydney by Mr. Alf Moufarrige in 1978, and within 12 months, had two floors in Sydney’s MLC Centre and a location in Melbourne’s business district. Over the following years, Servcorp expanded into Singapore, France, Japan and across South East Asia, closely followed by expansion into Belgium, the Middle East, China, India and New Zealand. Servcorp entered the Middle East market in 1999 renting two floors in the iconic

Emirates Towers in Dubai. Demand for the premium services led to further expansion in the Middle East. Servcorp now has 15 locations in the Middle East in the UAE, Qatar, Bahrain, Kuwait, Lebanon and Saudi Arabia and is still looking to expand in this region.

For a company looking at availing your services – what advantages do you offer?

Servcorp offers multiple advantages to any company looking to be one step ahead of the rest. First and foremost, is the strong first impression a CBD address and professional environment can create for a business. Secondly, the 5 star service the professional support team provides plays a significant

reduction in stress and time of a business owner and results in increased productivity. And the final advantage is the proprietary technology Servcorp offers exclusively to its clients, such as Servcorp Online, a powerful system which allows total call management online, book boardrooms and meeting rooms at any of the Servcorp locations instantly, access to store, share and distribute electronic files, host a web conference via WebEx, reserve multilingual administrative assistance and even enables a Servcorp client to convert their computer into a VoIP phone with Servcorp Onefone. All are business-savvy ways to ensure a business is on track, whether they’re in a meeting, at their desk or out of the office on travel.

How is it cost and time effective to use the services of a company like Servcorp?

The formula behind “Why Servcorp works” is simple – by providing a corporate presence, an infrastructure of a multi-national corporation and administrative support without having to commit to the normally required long term contracts or large capital investments, a business owner can then focus on running his company without having to worry about managing the office as well. Servcorp’s solutions can save a business the time, costs and hassle of setting up their own office space which can take months and which usually require fit-outs, hiring staff, finding furniture and setting up the communication and IT systems. For example, the minimum term for a traditional office lease is three years, but with a serviced office, it can start at just one month. The beauty is that the client can walk in with their laptop and be operational from day one. A receptionist will handle the calls, the support team will manage all office requirements, all the phone and internet connections are setup and the client doesn’t have to worry about repairs, maintenance or multiple bills because the serviced office provider is also their dedicated landlord and everything will be billed in one invoice at the end of the month. With a serviced office, a business can save on the cost and enjoy all additional perks such as premium fit-outs and furnishings.

What differentiates you from competition? What is your USP? Servcorp is committed to being the world’s best serviced office and virtual office provider, and to do that the following factors cannot be compromised: The people The Servcorp team is proactive, efficient and hands on with clients so that they can focus on growing their business. The team is highly trained to international standards, multi-lingual and provide excellent customer service.

Technology Servcorp has invested over USD 50 million in building a global interconnected data network designed to help clients improve their sales while saving them on time and money. From cloud computing, to communications and an online integrated facilities system, the benefits are many. The address Servcorp only adds the finest hand selected iconic locations in the best cities in the world to its portfolio, providing a consistent and unbranded customer experience. Flexibility The serviced and virtual office solutions allow a business a great deal of flexibility, starting with the monthly contracts, monthly payments, options of upgrading or downgrading an office or even moving to another Servcorp location. Even boardrooms, meeting facilities and the team can be booked in ten minute increments, one hour slots or for the whole day.

In the UAE and the Middle East, how do you see the future for serviced and virtual offices?

As awareness increases, demand for virtual and serviced offices continues to grow. The end client has become a lot more sophisticated and demanding in what he’s looking for in his business solution. It is no longer a real estate game – people are looking for real IT solutions. Servcorp is a benchmark in the industry and continues to raise the bar.

Laudy Lahdo, General Manager, Servcorp Middle East

The changing macroeconomic environment means national markets are shifting powers, affecting things all the way down to local businesses. This means businesses need to be aware, stay competitive, and have the ability take their business wherever it needs to go to match the market’s demand.

What are your expansion/growth plans in the coming years?

2011 was Servcorp’s biggest expansion year in its history, with 40 new floors in 29 cities in 12 countries and it has continued expanding over the past couple of years. Globally, Servcorp’ s goal is to provide flexible business solutions that help companies succeed. Today, steady expansion of the Servcorp global network of offices is continuing in the Middle East and beyond. Servcorp has 140 locations in 52 cities around the world, including Singapore, France, Japan, South East Asia, Belgium, the Middle East, China, India and New Zealand. Servcorp now has fifteen locations in the Middle East spread across the UAE, Qatar, Bahrain, Kuwait, Lebanon and KSA and is still looking to expand in this region. JANUARY 2014

Country focus Education

Building the

future

Education is an important sector for New South Wales and offers very attractive opportunities for businesses as well as students. Belinda Howell, General Manager, Market Development and Jalal El Nasar, Regional Manager, Middle East, UTS:INSEARCH speak about how this sector is a pathway to prosperity and cooperation.

JANUARY 2014

tudents who travel from the UAE continue their education in Sydney are key to creating an even closer bond and economic relationship between the Middle East and Australia. Not only are young people who gain an international tertiary education one of the most valuable assets for the UAE, those students will bring a wealth of experiences and benefits to both countries as they exchange ideas, knowledge and skills. The relationships they form, gained through studying together with students from all around the world, last long after their studies end, and support strong international relationships and economic ties between Australia and the UAE.

Commitment to close ties The University of Technology, Sydney (UTS) is the preferred university for thousands of international students coming to Australia, many of whom gain entry through UTS’s pathway provider UTS:INSEARCH. As a leading tertiary institution, UTS sees opportunities to build its relationships in the Middle East. Supporting this aim, last year UTS:INSEARCH appointed its first manager for the Middle East, Jalal El Nasar, to work with government bodies, education agents and students across the region. Having completed his Masters of Business Administration abroad and worked in the tertiary

Jalal El Nasar, Regional Manager, Middle East, UTS:INSEARCH

education sector in both the Middle East and Europe for several years, Jalal, who is based in Dubai, is well positioned to advise students on the opportunities available at UTS and the benefits of studying internationally. “Attending UTS:INSEARCH is a really valuable way for UAE students to develop their English skills and prepare for studying at UTS, which is one the world’s top 50 universities under 50 years old,” Jalal said. UTS:INSEARCH diploma graduates qualify to enter UTS courses in areas

Country focus Education

such as engineering, IT, business, architecture, communication, design, nursing or science.

Growth in education With, both the, UAE and Australia seeing university graduates as central to their economic future, both have made strong commitments to increase the number of tertiary-qualified people. This commitment is demonstrated by the ongoing support the UAE Ministry of Higher Education provides in its forward-thinking approach to investment in students’ tertiary education, maximising the number of students who can study abroad. Each year, more than 100,000 international students choose to undertake education in New South Wales (NSW), with an IBISWorld’s Industry Report on University and Other Higher Education in Australia forecasting the sector will grow at an annualised rate of 3.7% nationally, reaching AUD 31.9 billion in 2018-19. Australia’s International Education Advisory Council predicts there will be a total of 1.3 million higher education students in NSW by 2020, which will support more investment, education and cultural opportunities. General Manager, Market Development at UTS: INSEARCH, Belinda Howell, said the experience gained by students in studying in Sydney is invaluable. “Not only are tertiary students looking to gain strong university qualifications for success, employers of the future will be looking for students who can interact in an international environment,“ she said. “Their studies will help them develop and apply cognitive skills and achieve a level of sophisticated thinking that will enable them to develop innovative solutions to the challenges faced by organisations in the future. “At UTS:INSEARCH, we are ideally placed to prepare international students with the skills they will need and combine the benefits of an English-language education with being in one of the most desirable cities in which to live and study.” According to the 2013 Bank of Communications Sea Turtle Index, Sydney is in the top 10 cities in the world for potential returns on investment in international education, while QS Best Student Cities 2014 ranked Sydney fourth globally, based on factors such as lifestyle, cost of living and quality of education. As NSW’s largest city, Sydney is an international business hub and is home to the headquarters of 40

JANUARY 2014

Belinda Howell, General Manager, Market Development, UTS:INSEARCH

90 per cent of the international banks operating in Australia, and 60% of the ICT regional headquarters and operations centres.

Multicultural immersion Australia’s strengthening relationship with UAE also helps to create a meeting point between cultures, ensuring students can follow their own religion and customs while developing their intercultural experiences. Multicultural immersion not only enhances students’ English skills, but also prepares them for a dynamic career, whether that be in their own communities and economies or as part of global teams. “We really work hard to help students to make their transition into a new country and culture as easy as possible, and our students benefit from our small class sizes, making it easier to be successful at study, make new friends and get to know Sydney,” remarked Jalal. “We can even help students find accommodation in a home-stay environment, providing a welcoming family atmosphere.” Preparing for the future Yaser Bani Hammad, a student from the UAE currently studying in Sydney, successfully completed a Diploma of Engineering at UTS:INSEARCH before commencing his Bachelor’s degree in Mechanical Engineering at UTS. His choice to study at UTS:INSEARCH and UTS was motivated by wanting to go to a leading university to receive a quality

education, preparing to capitalise on the boom in infrastructure in his home country. “I wanted to go to the best university in Australia,” he says. “I’ve always liked engines and turbines, and want to go into the mechanical engineering field.” Yaser’s ambitions include plans for further study at a Masters’ level at UTS, and he then intends to return the UAE to establish his career. “There is a big demand for engineers. I will go home and work in mechanical engineering, perhaps in the petroleum, airlines, electrical or nuclear energy sectors,” he remarked. In particular, Yaser has been impressed by the quality of the UTS:INSEARCH campus facilities and range of amenities. “The campus is really nice, with modern technology and smart boards, and there are many places for students to relax and study.” With a AUD 1 billion investment underway as part of the UTS Campus Master Plan, the UTS education precinct is being transformed with iconic new buildings, renovated facilities and increased public spaces embody its innovate approach to quality education. UTS has an enviable international reputation for the quality of its premises, teaching and research, which is recognised by the international QS Stars Ranking System, which awarded it five stars for excellence in higher education, including five stars for teaching, facilities, innovation and employability of graduates. As one of Australia’s leading universities, UTS is also known for its distinct and practical model of learning, its commitment to international students, strong research performance and enjoys an excellent reputation for working with business. “With an enormous demand for tertiary educated professionals in UAE, I would particularly encourage students contemplating courses in engineering, business, IT, science and the healthcare sector to seriously consider the benefits of UTS:INSEARCH’s approach and the fantastic opportunity to study in Sydney in a supportive and vibrant environment,” said Belinda. “We are very optimistic about the long-term relationship between NSW and the UAE, and we value our relationship with students from the Middle East as part of a wonderful education, cultural and economic exchange, “ she added.

COUNTRY FOCUS Technology

Mobile analytics on steroids Mobillytics is an innovation driven company and specialises in business intelligence exploitation and App innovation. It is recognised for delivering significant value and competitive advantage to well known enterprises across different industries globally. As part of its growth, Mobillytics intends to leverage its innovative expertise to deliver niche business solutions and provide businesses in the MENA region a competitive advantage.

obillytics is a dynamic software development company that specialises in building mobile business intelligence applications for enterprise customers. With a worldwide customer base that spans a number of different industries, the company has experienced rapid growth over the last few years. The company is rapidly expanding its operations and now has a presence in Australia, New Zealand, the Middle East, Africa and United Kingdom. Mobillytics 42

JANUARY 2014

prides itself on its focus on innovation and has recently established its unique â&#x20AC;&#x2DC;Innovation Tankâ&#x20AC;&#x2122; brainstorming facility in Sydney, Australia to facilitate rapid development of innovative mobile business applications.

Innovative solutions Mobillytics assists large enterprises to create superior value and competitive advantage for them by influencing the ultimate business intelligence end user experience.

It mobilises and develops best of breed, simple and efficient mobile apps that execute transactions that can generate new Intelligence. Its mobile powered apps seamlessly integrate with native device specific capabilities to create a rich, fully immersive user experience, while also providing off-line access when connectivity is limited. Its solutions integrate effectively with large enterprise systems, such as SAP, Business Objects, Oracle, Microsoft

SQL & Sharepoint, Salesforce, Siebel CRM, Hyperion and Teradata systems. With a range of hosted and enterprise configured solutions, Mobillytics provides organisations and business functions the agility and cost effectiveness with significant return on investment within a shorter span compared to traditional BI and Data warehousing solutions . Mobillytics have successfully provided m a rke t l e a di n g so l u t i on s o fferin g competitive advantage to well known major brands within Australia and globally enabling business teams across various industries such as financial services, telecommunications, retail, airlines (aviation), automotive, manufacturing and fast moving consumer goods, to realise significant business value and operational efficiency through their unique innovations. Solutions across industries Mobillytics has been championing and leading the mobility solutions space for some of the largest banks in Australia, such as ANZ and Westpac Group. They have offered these large enterprises solutions with differentiation and competitive edge by harnessing their key business intelligence insights to enable diligent decision making. They have also developed innovative mobility solutions for the aviation industry, with Qantas, the leading Airline in Australia experiencing transformation in airport operations, ground operations and baggage handling through these solutions. In the retailing and FMCG space, Mobillytics has helped large enterprises such as Coca-Cola and Red Bull impart new innovative ways of looking at business performance and consistent field force data intelligence gathering solutions. Mobillytics have developed several innovative solutions in the telecommunication industry for large clients such as Vodafone Procurement Group and Optus (SingTel) which has transformed the supplier spend monitoring and retail network management capability for these organisations. Mobillytics has been providing leading organisations with innovative and rich mobility solutions that include: • Providing executives, business unit heads, country heads, territory managers and in

ABOUT For more information about Mobillytics in the Middle East, please contact, Irfan Malik, General Manager, at malik.irfan@mobillytics.com

the field staff with simple and effective metric frameworks enabled on mobile devices such as iPads and SmartPhones to materially lift business performance. • Delivering pragmatic and fast outcomes to teams who are disjointed and are struggling to keep up with the business. • Channelling and aligning the decision making of the senior ranks to a single version of the truth/consistent set of key performance indicators resulting in great reduction in analytical waste. • Transforming the decisioning culture from rear view to looking across and looking forward, by leveraging a number of performance, benchmarking and opportunity metric frameworks developed for a diverse set of multinationals.

Innovative delivery approach Mobillytics has mastered a well-recognised 4-step Design & Delivery methodology with its various client engagements to maximise the value realisation and speed to market for the clients. This approach provides clients flexible and transparent mode of engagement in an agile and collaborative manner to design and develop the mobile solution with the ultimate end user experience at the forefront. From “Sensing” stages of “AS-IS” state to “Shaping” the “TO-BE” state, this unique methodology ensures stakeholder engagement , cross team collaboration, value-benefit prioritisation leading to maximum value generation & significant ROI. This fast prototyping approach provides the organisation and transformation leaders/sponsors the capability to demonstrate on a small scale in real terms the targeted “TO-BE” state and help them influence broader transformation and further stakeholder buy-in. Mobillytics in the Middle East Mobillytics has established its presence in the Middle-East region with regional head office

based out of Dubai and current operations in Abu Dhabi & Qatar with several leading organisations across banking & financial services sector, telecommunications, aviation & airline operations and hospitality. It aims to drive further strong growth across other services and government sectors with its innovative solutions supporting the local large enterprise to leverage international thought leadership and also create local innovations. Mobillytics is committed to leverage its cross industry and cross domain innovation expertise to impart to businesses in this Middle East region the capability to realise maximum potential from their data assets enabling them to derive competitive advantage globally. Mobillytics intends to work with large enterprises in this region to innovate ways to use intelligence from: (a) Hindsight past performances (Looking Back) (b) Insights benchmarking (Looking Across) (c) Foresight opportunities (Looking Forward) to maximise business opportunities. With strong directions from the government to embrace technology, m-governance and operational transparency measures, Mobillytics is positioned very well to cater and tap into the strong business needs for its innovative and highly effective mobility solutions. The continued and buoyant growth across various sectors in this region also augurs quite well for this transformation within the business intelligence landscape. Mobillytics intends to expand their operations, development and support capability within this region to service their growing client base in this region. They are also aligning and partnering with local business networks and large Business groups for supporting this growth as part of its core strategy within the MENA region. JANUARY 2014

Country focus Finance

Your guide to investing in

New South Wales When the financial crisis struck, Sumo International Director Suren Pather, knew it was an opportunity to dramatically transform his financial planning business. It has now evolved into the Sumo Group of Companies, a multifaceted venture that offers an array of services to enrich its clients in holistic and positive ways. Tell me about the name Sumo. You’re not offering Japanese wrestling lessons, are you? No, we never did, and we don’t envisage doing that in the future. The term is an amalgamation of my name and the name of one of my business partners. Its Japanese connotation was clearly an oversight! Sumo also stands for ‘super money’ – a fun play on the superhero theme. It is also fitting that the word implies largesse, as our service proposition is indeed grand in scale.

To what extent did the financial crisis ravage your business?

The crisis had a devastating effect on my financial planning business. It was crippled as clients became fearful of investing. I knew I had to change my tack to survive.

purpose of wealth. From this musing, I developed products and services that transcended traditional wealth generation and management. I came to realise that financial independence is the ultimate opportunity to search for meaning in your life, and should not be the end result of wealth creation. My clients were, and remain, the absolute core of my business, so when creating new concepts I kept their needs and wants in mind. From this I devised five ‘pillars’ – health, wealth, leisure, life, and products/services. Each serves a discrete purpose, yet together, they work to achieve life balance for clients.

So what did you do?

Tell me more about these pillars – the first of which is ‘health’. Why make health services the cornerstone of your business when financial planning is your specialty?

Firstly, I didn’t simply try to pick up the pieces. I took this crisis as an opportunity to re-evaluate the meaning and

I believe good health is a critical prerequisite to everything. What’s the use in being financially successful and luxuriating

JANUARY 2014

in your wealth if you’re physically or mentally unwell?

ABOUT Suren has over twenty years of experience in the finance industry( BEc (Hons), LLB (Syd), CFP, FFPA, LREA, JP). He is the Founder and Director of all of the entities within the Sumo Group of Companies, including the Sumo SIV Managed Fund. Suren holds bachelor degrees in Law and Economics (with Honours) from Sydney University. Additionally, he is a licensed chartered financial planner and real estate agent, and is a Fellow of the Financial Planning Association of Australia. He can be contacted at suren.pather@sumosiv.com

That’s a sound point. Aside from healthcare, what else does ‘super money’ offer?

Yes – as I mentioned, the second pillar is ‘wealth’. This is where my financial planning business, Sumo International comes into play. It was established over 20 years ago and, although temporarily battered by the global financial crisis, is once again thriving. The third pillar is ‘leisure’. I reasoned that once people had worked hard to create wealth; there should be an outlet for enjoyment of it. Thus, the Sumo Platinum Club was born. It offers members unique and luxurious life experiences, such as bespoke holidays, and premium access to exclusive events, such as worldwide Formula One races. On a more local level, prestige car drive days and luxury yacht trips are a just a taste of what the Club has offered so far, and it has only been operational for seven months.

I’ll get back to the remaining pillars shortly; I’m just wondering, how you manage so many businesses at once? You must be a multi-tasker par excellence!

I am extremely busy! Though I must pay credit to the directors of each business with keeping the Group running. Being a financial planner by trade, I focus on ‘wealth’, and am also responsible for overseeing the Group as a whole, yet each business is managed by a director who specialises in the relevant field. For instance, Sumo Health is run by a team of qualified medical doctors and nutritionists, while the Sumo Platinum Club is run by Thevan Krishna, whose travel expertise is derived from his tenure as head of South Africa Airways Australasia for decades.

So, back to the pillars…

Yes, the fourth pillar is ‘life’. Although it sounds all-encompassing, it’s not! While the other pillars address clients’ physical requirements and desires, this one appeals

to their emotional and spiritual needs. By drawing on a diverse range of philosophies and practices, from Eastern spirituality to psychology, it offers strategies for personal enrichment. The head of this pillar is internationally-acclaimed motivational speaker, Kamal Sarma.

What is the fifth pillar?

Last but not least, ‘products and services’. They were devised to complement the other pillars, and range from a boutique, highend Australian real estate agency to the SUMO SIV Managed Fund, a unique vehicle for UHNW individuals who wish to attain Australian residency through the 188/888 Significant Investor Visa (SIV). The Fund is my proudest creation to date. To my knowledge, it is the only governmentapproved SIV Fund that is completely investor directed and offers every asset permitted for investment, as determined by the Minister for Immigration. That makes it the most flexible and broad legitimate SIV fund on the market. Other products and services offered by the Sumo Group include an end-to-end selfmanaged super fund service, accountancy, and a specialist Indian property sales agency. Due to demand, our product list is ever-expanding. I’m sure more products will be developed and proffered in due course, so check our website regularly for updates.

You mentioned that the various entities in the Sumo group complement each other. How does this work in practice?

I will answer this question by providing an illustration. Investors in the SUMO SIV

Managed Fund can do all of the following (and more) by harnessing the services of the Sumo Group: • Invest in Australia thereby securing residency status; • Access the financial advice required for prudent investment decisions; • Secure a prestige Australian residence for themselves and their families; and • Become acquainted with their new environment and expand their social and professional networks by attending Sumo Platinum Club events. We have purposefully designed the Group so that it caters for all conceivable needs and wants of our clients.

I noticed your logo incorporates life bubbles – a Buddhist symbol, and your holistic business philosophy seems Buddhist in nature. Was this intentional?

I suppose it was. I have always been drawn to the Buddhist notion of equanimity – the state of being balanced, which is one of the ‘Four Immeasurables’ that the Buddha taught his disciples to cultivate. Perhaps this inclination stems from my Indian heritage (although I was born in South Africa and reside in Australia, my background is Indian).

From what you’ve stated, it is clear that the Sumo Group is literally large! If you had to summarise what it offers in five words, what would they be?

I could go with literalism, and say ‘health, wealth, leisure, life and products’. However, I’ll settle on security, prosperity, indulgence, wisdom, and balance [instead]. JANUARY 2014

COUNTRY FOCUS Business set up

How to do business in New South Wales? New South Wales (NSW) has low barriers to trade and investment and welcomes foreign investment. David Yates, Partner, Corrs Chambers Westgarth, gives us a synopsis of the rules and regulations.

hy New South Wales? Each year over USD 54 billion investment is made in private business in New South Wales (NSW). Over 80% of NSW’s industry income is generated from services and it also has the largest manufacturing sector in Australia. NSW is Australia’s economic powerhouse and contains 43% of the top 500 companies in Australia. It has 7.3 million residents, which is 30% more than the next largest state. The State’s population is highly educated. Of the working age population, 55% hold tertiary qualifications. A key characteristic of Sydney is its multicultural society and its large number of multilingual citizens. One in three people in Sydney can speak a non-English language and over 200 languages are spoken in Sydney. It is cheaper to establish commercial offices in Sydney than in most other Asian cities. Prime commercial office space in Sydney is cheaper than Singapore, Hong Kong, Mumbai and Tokyo. Leasing prime bulk industrial space in Sydney is similarly affordable. 46

JANUARY 2014

Legal system The Commonwealth of Australia is a federation of six States (including New South Wales)1*, two internal Territories2* and a number of minor external Territories. The Australian Constitution gives the Federal Parliament the power to make laws relevant to foreign investment, including laws concerning corporations, taxation, trade and commerce, communications, banking, insurance, bankruptcy and insolvency, intellectual property, immigration and industrial disputes. Consequently, most of the issues concerning foreign investors are consistent across the various States and Territories. Each State, including NSW, has legislative power to make any laws it desires, except in relation to the matters reserved to the Federal Parliament by the Constitution. Federal law prevails over State or Territory law to the extent of any inconsistency.

Business structuring and regulations The World Bank ranks Australia fourth in the world for the shortest time needed to

David Yates, Partner, Corrs Chambers Westgarth

set up a business – approximately two to three start-up days.3 In Australia, business may be conducted by way of several types of legal structures, including companies registered in Australia, registered foreign companies, partnerships, joint ventures, trusts and sole proprietors. The Corporations

Act 2001 is the primary source of company regulation in Australia, and is administered by the Australian Securities & Investments Commission (“ASIC”). Companies that are incorporated outside of Australia that wish to carry on business in Australia must register with ASIC, which issues an ‘Australian Registered Body Number’ (ARBN). Unincorporated bodies wishing to carry on business in Australia must also register with ASIC if they do not have their head office or principal place of business in Australia. Alternatively, foreign investors may incorporate a company in Australia. Subject to certain exemptions, registered foreign companies must annually lodge with ASIC a copy of their balance sheet, profit and loss statement and cash flow statement for the previous financial year, which must be prepared in accordance with the laws of the company’s place of incorporation. These financial reports must be accompanied by other documents that the company is required to prepare under the laws applicable in its place of incorporation, such as an auditor’s report or director’s statement. ASIC may require registered foreign companies to provide further information if the statements do not sufficiently disclose the company’s financial position. A small proprietary company controlled by a foreign company must prepare a financial report and directors’ report only if it was controlled by a foreign company for all or part of the year and it is not consolidated for that period in the financial statements for that year lodged with ASIC by a registered foreign company.

Overview of foreign investment regulation Foreign investment in Australia is regulated principally by the Foreign Acquisitions and Takeovers Act 1975 (Cth) (“FATA”), the Foreign Acquisition and Takeovers Regulations 1989 (Cth) (Regulations) and Australia’s Foreign Investment Policy (Policy) issued by the Australian Government. While elements of the Policy are a restatement of what is contained in FATA and the Regulations, certain aspects of the Policy (such as the national interest considerations and the requirements on foreign government investors) are not dealt

with in FATA. Given the significant discretion of the Australian Treasurer under FATA, investors should comply with the Policy as if it had the force of law. The Australian Treasurer is responsible for the foreign investment framework and reviews investment proposals against the national interest on a case by case basis. The Foreign Investment Review Board (“FIRB”) is a nonstatutory body which advises the Treasurer on the foreign investment regime. Under FATA the Treasurer examines investment proposals and may: • prohibit a proposed investment which the Treasurer decides would be contrary to the national interest; or • raise no objections to an investment subject to the satisfaction of particular conditions which the Treasurer regards as necessary to address any national interest concerns. Direct investments by foreign governments and their related entities (including stateowned enterprises and sovereign wealth funds) are assessed on the same basis as private sector investment proposals. However, the Treasurer considers a number of additional factors in respect of an investment proposal by a foreign government or a related entity. FATA and the Policy require notification to FIRB of certain proposals by foreign persons. These include, but are not limited to, proposals involving: • an acquisition of a substantial interest in an Australian business or corporation in a non-sensitive sector that is valued above AUD 248 million* • a takeover of an offshore company whose Australian subsidiaries or gross assets are valued above AUD 248 million* • a proposal to invest 5% or more in the media sector, regardless of the value of the investment • a direct investment by foreign Governments and their related entities irrespective of the value of investment, including starting a new business or acquiring an interest in Australian urban land

Taxation Amongst the 34 member nations of the OECD, Australia has the sixth-lowest tax to GDP ratio, ahead of Switzerland and Ireland. Each level of Government (Federal, State and Territory, and Local Government) imposes its own taxes. The Federal Government imposes the most significant taxes. It levies income tax (on “taxable income”, which includes net capital gains), Fringe Benefits Tax (FBT), Goods and Services Tax (GST), customs duties and excise duties. There are no gift, death or succession taxes. As a State government, New South Wales imposes no taxes on income or capital gains. However, State governments impose stamp duty, pay roll tax and land tax to raise revenue. Companies that are residents of Australia for taxation purposes will be taxed on income and gains from sources both in and outside Australia, reduced by any allowable deductions. Conversely, companies that are non-residents of Australia will be generally only be taxed on income with sources in Australia and gains arising from dealing with certain assets that have the “necessary connection” with Australia. Incentives The New South Wales government considers assistance for major projects on a case-bycase basis. Major investors should contact the Department of Trade and Investment as the first step as incentives typically vary from practical advice to potentially funding and regulatory assistance. Tax concessions may be accessible from the Australian Taxation Office for research and development activities. The research and development entity must be one of the following: • an Australian company • a foreign company that is an Australian resident for tax purposes • a foreign company carrying on business through a permanent establishment in Australia • a public trading trust with a corporate trustee (taxed like a company)

The other states are Victoria, Queensland, South Australia,

Western Australia and Tasmania

* Threshold figures are indexed on 1 January annually

against the Australian Consumer Price Index (the most

Northern Territory and the Australian Capital Territory

widely accepted measure of inflation in Australia).

australia/#getting-credit

http://www.doingbusiness.org/data/exploreeconomies/

JANUARY 2014

COUNTRY FOCUS Food sector

Go big or go home! Former NRL superstar Sean ‘Garlo’ Garlick turned his once fledgling retail pie business into a wholesaling empire, supplying the likes of Australian supermarket chains such as, Coles, the Australian Navy and countless New South Wales outlets. We bring to you the details of their operation in the Middle East.

he problem with success as a professional athlete is that it can’t last. The body can only do it for so long before calling it quits, and fame deprivation syndrome is inevitable. But does it have to mean financial deprivation as well? Sean Garlick had two key assets as an National Rugby League (NRL) superstar: his body and the name “Garlo”. One of those has now faded as a money-earner; the second is coming into its own. Garlo’s Pies is Sean Garlick’s answer to the age-old problem for professional athletes of what to do next. Sean was lucky: he had a catchy nickname and a brother who could 48

JANUARY 2014

make a decent pie. And everyone – not just sport stars – can learn an important lesson from Sean. Go big or go home. A room full of pies, famous rugby league players, a stopwatch and TV cameras. That’s how Garlo’s Pies was introduced to the world in 2001 and now it churns out 12,000 pies a day. Employs 40 people and turns over AUD 8 million a year. So how did he do it? By getting three crucial moments right: the launch, heading into wholesale and a huge one-off gamble on advertising. Sean’s brother Nathan (seven years younger) had finished his baking apprenticeship and,

while fantastic at making pies, became frustrated with the people he was working for and gave it away to start driving a truck. Sean didn’t like what he saw. “This is a waste of your talent,” he said to his brother. “Would you be interested in getting back into this game if we had our own shop?” They wasted no time recruiting their dad, Terry who was wrapping up a 40 year career as a wharfie. Sean’s sister, Dana, and wife Samantha soon joined in too. A family business was born. Nathan started baking his pies like a madman and Sean set about using his fame to market the business. He was no ordinary player. He’d played for NRL team of South Sydney Rabbitohs as a

young man, then switched to Eastern Suburbs, then came back to the Rabbitohs and was captain in 1999. In his early days, believe it or not, he appeared in movies alongside Rachel Ward and Nicole Kidman as well as starring in Home and Away in 1991. And he was a policeman throughout his whole playing career. During a famously hard time for the club in 2001, Sean stepped up and was a key fighter alongside Russell Crowe in the battle to get Souths reinstated to the NRL. He’s one of the NRL’s favourite sons. So when he said he wanted to launch his business with a pie-eating contest, The Footy Show happily broadcast it. Big Artie Beetson, along with greats like Mark Carroll, Craig Salvatori, Mark Geyer and Daryl Broham all stuffed themselves until Geyer was crowned champion after eating a staggering 14 meat pies. He won the contest but would have been nursing his guts for days. The real winners were definitely the Garlicks. Over the next couple of years Garlo’s Pies took over Sydney. “We had 13 stores in Sydney in the next four years – eight of them owned and five were franchise. We had to start finding sites that were equally as profitable, which was difficult,” said Sean. It’s a seasonal and volatile business because, as Sean found out, people are keen on pies when it’s cold and rainy but not so much when the weather is good. It was wholesale, not retail that turned their pie domain into an empire. Australian supermarket chain Coles approached Sean in mid-2009 wanting to sell the pies and instead of diving into the deep end, he played hard to get. “I’d heard they screw small business on price and terms and I didn’t think it’d be good for our business if they were selling our pies for AUD 1 each – how would we get AUD 4.50 for them in our stores?” But Coles agreed to his terms and prices and stocked Garlo’s in 20 stores right away. Six months later they came back wanting to stock the pies in 206 stores around NSW. This is where things got tricky. Garlo’s had to beef up their production and throw money at bigger and faster machinery. And Sean was worried people wouldn’t know to look for the pies in

the supermarkets and so wanted to get the word out. At the worst possible moment, one of his franchisees went bankrupt owing the business a stack of money. With his back to the wall, Sean decided, against the advice of pretty much everyone around him, to double down and risk the lot. He took out a AUD 50,000 loan plunged it all into intensive one-month advertising campaign. They also started going around to the supermarkets giving free sample, something they still do regularly. It worked. Brand recognition skyrocketed and they were set. On top of Coles, they now supply IGA and the Australian Navy, plus countless schools, sports grounds, hotels, food trucks and service stations around NSW. It’s yet to be seen if they can perform away from their home ground but they are giving it a shot. The pies are all halal certified and with that, the first order is being shipped to the UAE. Garlo’s will be supplying pies to various 2014 Australia day events, which will be held in the UAE, including the Australian Embassy hosted event. Garlo’s will also be supplying pies and sausage rolls to the Aussies Abroad Australia day event in Abu Dhabi and Dubai Discussions are also underway with various supermarket chains and other distribution points both in the Middle East and Europe. A UAE enquiries desk is now setup to accept orders for the EMEA region. So is this the start of a family business dynasty? Too early to say. He’s still only 44 and has plenty of ideas for the future. If he was approached to sell, he’d have a good think. But a family rugby league dynasty could be a handy fall back plan. He’s got three sons and the oldest two, Jackson (19) and Bronson (17) have already been scouted to pull on the red and green for the Rabbitohs like their famous dad and the third, Campbell, is one to watch too (he’s in year seven). When they’re not training or at school they work at Garlo’s. So there you have it, sports stars – you could do worse than go big like Sean “Garlo” Garlick.

For more information, please contact EMEAenquiries@garlospies.com.au

*This is an amended version of the original article, which was published in the Family Business Magazine, Australia, November 2013.

JANUARY 2014

Country focus Food

Over a hot cup of coffee!

Aparna Shivpuri Arya spoke to Nabi Saleh, Executive Chairman, Gloria Jean’s Coffees about their business in the Middle East.

strategy across many fronts, both in the format of our coffee houses and the product offer. For example, we built many of our coffee houses here attached to institutions such as government departments, hospitals, offices and universities, placing Gloria Jean’s Coffees close to where our guests live, work and relax, which, along with our superior product offering and quality service, is a significant reason why we are regarded as the UAE’s premier coffee house.

Nabi Saleh, Executive Chairman, Gloria Jean’s Coffees

Please tell us briefly about Gloria Jean’s Coffee foray into the UAE in 1998. While the original agreement was struck in 1998 before we acquired the worldwide brand rights in 2005, it shows an enormous amount of foresight by the Master Franchise Partner who saw an opportunity for Gloria Jean’s Coffees in the UAE long before coffee was popularised in this market, and certainly long before the rapid development of Dubai. Only a relatively young player in the market, Gloria Jean’s Coffees opened its doors in Sydney in 1996, growing to 400 locations in Australia with 800 coffee houses in 39 markets globally.In the Middle East, there are 77 coffee houses across the UAE, Kuwait, Kingdom of Bahrain, Kingdom of Saudi Arabia, Qatar and Oman Since 2005 we’ve built upon this strong platform, while also having to adapt our 50

JANUARY 2014

As a global leader in your sector, how has your experience been on doing business in the UAE? Are there any dos and don’ts that you would like to highlight?

We understand that the UAE market, although one of the most mature retail markets in the world, is still very much a developing market when it comes to lifestyle coffee houses such as ours. In order to be successful in UAE you need to be flexible in the delivery of your business model and also adapt your product offer to suit the preferences of our Emirati guests. We approached the UAE market with a focus on attracting Emirati guests rather than only focusing on expat customers. As a result, we have a competitively priced offering and many of our coffee houses are strategically located to attract local guests. In many ways this has insulated us against the financial crisis when many expats left the UAE. One thing we’ve come to learn is that in the Middle East, relationships and local partnerships are the keys to success. If you get this right then you will be positioned well

to grow your brand in the market. If you get it wrong, it doesn’t matter how good your brand and product are, you will struggle to succeed.

What are your expansion plans in the Middle East?

We have a strong vision for Gloria Jean’s Coffees in the Middle East. We have just launched in KSA, with flagship coffee houses located in Riyadh and Khobar and expect to drive significant growth for our brand across the Middle East in years to come. We presently have partners and a presence in the UAE, Oman, Kuwait, Bahrain, Qatar and Saudi Arabia along with coffee houses in Jordan, Lebanon and Egypt.

If you had to give some advice to international businesses looking to enter the food and beverage sector in the Middle East, what would it be?

There are a few key pieces of advice I would pass on. Certainly, having a long term perspective when developing a market is crucial – be patient, as anything worth doing takes time. Secondly, it may seem obvious, but I would say to ensure your product offering delivers on the preferences of local guests; and further to that, be prepared to adapt your business model to suit the market, as we have. Join hands with experienced local partners, and ensure you are well resourced. Last, but not least, recruit a great team to execute your strategy and tell your story to your guests.

What are some similarities and differences between doing business in Australia and doing business in the UAE?

Some similarities between doing business in Australia and the UAE include the presence of mature retailers, the healthy amount of competition and the high rental rates for prime retail space; while the differences include the high expat base in the UAE, the limited breakfast dine out culture in the UAE – there is a much greater focus on evening dining – and franchising is not as mature in the UAE as it is in Australia.