The Intelligent SME: Issue 11

facebook.com/theintelligentsme

Corporate partners Strategic alliance partner

www.intelligentsme.com

@intelligentsme

linkedin.com/company/spi-holding

Issue: 11TM

AED 10

A journey with an ideaand a dream:Samir I. Abdul Hadi,Founder, SamTech Middle East

20

18

Meet UAE’s business icons once a monthwww.dubai-gbs.com

Architect in telecomUp close and personal with Osman Sultan, CEO, du, a visionary with extraordinary business acumen

No.1 Platform for Small & Medium Enterprises

Give your business an unfair advantage

Intellegent ME B2B GMS 260x190-E.indd 1 11/14/12 5:52 PM

40858 ANA Panamera Tactical - Intelligent SME.indd 1 12/9/12 10:25 AM

ContentsDecember 2012 - January 2013

20

A visionary architect in telecom

11 Rare & Fabulous High end luxury products for CEOs and decision makers.

18 Innovation, excellence & determination Samir I. Abdul Hadi, founder of SamTech Middle East, shares his experience of

establishing a business in the UAE.

24 Announcements What has been happening in the business marketplace? Here are some updates that

you might have missed.

ISME got up close and personal with Osman Sultan, CEO, du, at the Emirates NBD Global Business Series.

Supported by

Be a Connector

Alliance partners

28 A positive change for entrepreneurs Zia Hassan, co-founder of Entrepreneurs of Arabia, gave

up a secure, comfortable job in the UK to give back to the entrepreneurial community in the Middle East.

30 Pitching for a cause Loulou Khazen Baz, winner of The Entrepreneur reality

television show organised by du, spoke to ISME recently on her experience on the show and her future plans for Nabbesh, her online venture.

38 The ‘passport’ to European markets While exporting, product safety is a priority and can be

ensured by CE marking, writes Dr. Sameer Kumar.

40 The benefits of offshore banking Thebenefitsextendfarbeyondtheverywealthy-ranging

from access to more innovative banking products to asset protection and anonymity, writes Rupert Connor.

42 Being equipped to succeed Sandi Saksena outlines key measures for insuring a

business against operational losses.

46 Insights to grow your business Sometimes sheer common sense can give a marketing

campaign the edge over others, writes Simon Hodges.

48 Stand out or get out What makes a company rise

above competition? Zed Ayesh urges businesses to differentiate themselves from industry peers.

56 Making yourself ‘secure’ in the Middle East

Living and working in the Middle East is a treat, but it could easily turn into a tragedy in the event of unexpected death, writes Nita Maru.

58 Tribal tips for leaders Michael Tolan explains classic traits to guide a

business leader through challenges.

82 The many hues of entrepreneurs Utpal Bhattacharya notes that it is not necessary for

a successful businessman to be a team player. He needs good instincts, though.

50 Your vital 3 seconds Phil Bedford gives you tips on opening up

conversations and developing relationships.

52 Getting started on the corporate governance journey

John Merrigan outlines basic concepts of corporate governance.

Chief Executive Officer& Publisher Shantanu A.P

Account DirectorVijay G.

Editor Sandhya Divakaran

Consulting EditorUtpal Bhattacharya

Expert ContributorsAnesh JagtianiCraig HewettJohn MerriganMichael J. TolanNita MaruPhil BedfordRupert ConnorSameer KumarSamir I. Abdul HadiSandi SaksenaSimon HodgesV. RamkumarZed Ayesh

Art DirectorAneesh Varghese

PhotographerArzai Zafar Editorial Enquiries & ContributionsTel: 04-2659704, 04-2650312Fax: 04-2690566E-mail: [email protected]

Advertising EnquiriesTel: 04-2659704, 04-2650312E-mail: [email protected]

Subscription EnquiriesTel: 04-2659704, 04-2650312E-mail: [email protected]

Response ExecutiveEvelyn V. Bernasol

SPI PublishingP.O. Box: 89735, Dubai, UAETel: 04-2659704, 04-2650312Fax: 04-2690566, 04-2651708E-mail: [email protected]

www.theintelligentsme.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.

Follow us on twitter: @intelligentsmeFacebook: facebook.com/theintelligentsme

Gives your business an unfair advantage

Recently we bore witness to the launch of Connect the Dots, a business playbook by our writer John Lincoln, VP- Marketing (Enterprise Segment) at du. The

publication is a practical guide to doing business, and refers to many aspects of running a business. SMEs are finding a lotmore attention amongst experts,policy makers and, now, even among financial institutionsthat would not take them seriously a few years back. Sharjah Islamic Bank’s allocation of AED1 billion towards SME companies under the Ruwad Establishment is more likely than not indicative of a trend that SMEs are becoming ever more acceptable as a business partner. Among many other reasons, SMEs have a much higher rate of growth than the bigger companies. At a Dubai Chamber of Commerce and Industry seminar we were informed that the proposed SME law will be submitted to the Federal National Council soon. This was endorsed by the Cabinet. Once the law is in place, the UAE will attract many more global investors. In addition, the Dubai SME100initiativehascreatedsignificantawarenessamongstall the stakeholders in the country about what SMEs bring to the economy, and today, entrepreneurship is a buzz word that everybody wants to hear. It is heartening to note that many of the companies we have known in the course of the Dubai SME 100 are now receiving so much exposure and accolades at various forums and platforms. While on the topic of entrepreneurship, ISME recently helditsfirsttwosessionsoftheEmiratesNBDGlobalBusinessSeries. We would like to thank our chief guests Yogesh Mehta, MD, Petrochem Middle East and Osman Sultan, CEO, du, for their insights. The interactive sessions with these two leaders revealed poignant memories, while establishing that only pure passion for one’s work can lead people to success. Through these sessions, we hope to inspire other entrepreneurs with practical insights that will guide them on their journey. On a separate note, it gives us much pleasure to announce our plans for the New Year. We have two new magazines coming up and this has been a cause for much excitement. We look forward to giving you more useful content. Give us your feedback on what topics you would like covered and which personalities you would like to meet. We wish you all a happy, healthy and prosperous beginning to the next year.

Sandhya [email protected].

Editor’s Note

wu china b2b ideas_eng_19wx26hcm.indd 1 10/11/12 3:32 PM

It’s unlikely that you would take car repair advice from a lawyer. Similarly, it makes little sense to take insurance advice from just about anyone who claims they have the ‘perfect’ solution for you.

With Al Nabooda Insurance Brokers, we employ experts with sharp minds and their hearts in the right place, so you can be sure you’ll get an accurate evaluation and the right advice, whatever your insurance needs may be.

Plus, you get exceptional value and a worry-free experience, because as brokers, we’re neutral and can offer the best solutions from the best providers based on your exact requirements.

Talk to us today. It’ll be a reassuring experience.

T: 600 5 25502 E: [email protected]: www.naboodainsurance.com

Is the right ‘specialist’ giving you the wrong advice? Trust only an insurance expert with your life, medical, car, home or business insurance.

• Comprehensive range of insurance solutions • Competitive rates • Swift, hassle-free solutions

• Speedy claims assistance • Excellent customer support • Choice of 'A' rated insurers • In-depth yet easy-to-grasp comparisons

Commercial Lines Broker of the Year 2011

THE POLICY 6TH MIDDLE EAST INSURANCE AWARDS

ANIB-2012 - AD (MAY)_LAWYER_ 26x19cm - 07 High Res.pdf 1 12/9/12 5:25 PM

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

12

December 2012 - January 2013Intelligent SME

Rare & Fabulous

Perrelet Turbine RacingCollection

The Turbine Racing collection by Perrelet features the Turbine, equipped with a 44 mm

diameter case, and the 50 mm Turbine XL. Colour takes pole position, with bold shades vividly expressing the sporting spirit of Perrelet’s most iconic timepieces. Red, yellow, blue and white, inspired by the gleaming bodywork of racing cars, take over the rubber straps. The chromatic impact is accentuated by the additional colour accent on the inner bezel ring on which

the hours are indicated by luminescent Arabic numerals. Further nuances are provided by the fan-shaped line pattern adorning the dial, beneath the 12-blade turbine. The collection features luminescent hour and minute hands, as well as a central second’s hand. The Turbine Racing collection by Perrelet features DLC-treated steel cases in red, blue and yellow versions, while the incomparable design is naturally further enhanced by the pure gleam of steel in the stunning white variations.

13


Rare & Fabulous

Exclusive jewellery parure for the UAE

The Italian master jewellery designer Roberto Coin, famous for his bespoke designs, launched an

exquisite one-of-a-kind jewellery parure to the Gulf. The signature set, which consists of a matched collar, bracelet, earrings and ring, was unveiled during a preview event organized recently by Damas Jewellery, retailers of Roberto Coin in the UAE. The special parure, which is part of the Mauresque Collection, is made up of a 3.21 ct collar set with 60 individual diamonds, a 6 ct bracelet with 110 stones, earrings set with a total of 22 stones and a 1.03 ct ring studded with a total of 20 diamonds. Roberto Coin’s highly-sought after creations are extremely popular among thediscerningclienteleforfinejewellerythroughout the Arab World. The collections are available worldwide through various sales points and also through exclusive boutiques in the United States, Dubai, Venice, Rome, Prague, Baku and Moscow. Roberto Coin jewellery is revered around the world and is known for producing the most beautiful, intricately crafted artisan pieces. Price on request.

14


Rare & Fabulous

Revolutionising digital technology

mode that is supremely effective with moving subjects. The 19-point AF system provides reliable depth focusing information. It is complemented by the 102-point multi-point focal plane phase-detection AF sensor to seamlessly manage subjects traversing the focal plane. Packing the imaging quality and responses of a DSLR into compact mirror-less camera, the NEX-5R and NEX-6offerthebenefitsofDSLR-quality imaging with less to carry. Both the models feature a resolution of 16.1 megapixels, an APS-C image sensor in the ultra-compact body and a new, fast, hybrid autofocus system, enabling users to catch precious moments in DSLR quality. Inafirstforcompactinterchangeable lens cameras by Sony, Fast Hybrid Auto Focus (AF) combines phase and contrast detection autofocus methods to suit the demands of any shooting situation. The NEX-5R, A99 and NEX-6 feature built-in Wi-Fi support for transferring photos directly to smartphones and tablet PCs. All three models, the Alpha SLT-A99, the NEX-5R and the NEX-6 will be available across Jumbo Electronics showrooms and other leading electronics retailers in the UAE.

Alpha SLT-A99

NEX- 5R

Sony, recently unveiled three of its latest cameras: the Alpha SLT-A99, the NEX-5R and

the NEX-6. Hiroyasu Sugiyama, managing director, Sony Middle East and Africa, said: “The new Alpha A99 camera is the ultimate combination of Sony’s expertise and rich history of image sensor production coupled with our truly innovative approach to cameradesign.Itredefineswhatcanbeaccomplished with a full frame professional camera.” The successor to the flagshipSonyAlphaA900DSLR, the new A99 is the firstcamerawithTranslucentMirror Technology from Sony to feature a full-frame 35mm image sensor. Translucent Mirror Technology is an innovative optical system that opens up dramatic new shooting possibilities such as high speed shooting and quick auto-focus. The A99 also debuts an advanced new AF-D continuous autofocus

15


Rare & Fabulous

Performance worth an encoreExcellence in performance,

comfort, luxury and styling have come together seamlessly in the

2013 Lexus GS to provide exhilaration like never before. The new model delivers sophisticatedrefinementandleadingedge innovation that has set the benchmark for all future performance luxury sedans. The Lexus GS is built toreflecttheLexusphilosophy.Thecombination is one of world-class luxury, evocative design and highly innovative technology. This car

continues to challenge the dynamics of the existing mid-size luxury automotive segment. The GS was engineered for responsive power and superior handling. Be it the GS 250, the GS350, the performance-tuned F SPORT, or the GS 450h F SPORT hybrid, Lexus GS is the result of the pursuit of perfection. Designers of the GS were inspired by the Lexus LFA supercar to create a high-performance, driver focused vehicle with precision and purpose. Al-Futtaim Motors offers

Lexus GS in 2.5L and 3.5L engine variants as well as the GS 450h that incorporates the advanced Lexus Hybrid Drive. The V6 2.5L vehicle offers an output of 207hp, the 3.5L V6 GS delivers 312hp and the F SPORT hybrid delivers a total system output of 340hp. The hybrid model is powered by a newly developed 3.5-litre V6 Atkinson cycle petrol engine with a two-motor hybrid system that makes it a front engine rear-wheel drive vehicle.

16


Rare & Fabulous

Thinnest smartphone in the world

Apple iPhone 5 is completely redesigned from its predecessor, the i Phone 4S, to feature a new 4-inch

Retina display; an Apple-designed A6 chip for fast performance; and ultrafast wireless technology—all while delivering even better battery life. iPhone 5 comes with iOS 6, with over 200 new features including: the all new Maps app with Apple-designed cartography and turn-by-turn navigation; Facebook integration; Passbook organisation; and even more Siri features and languages. Designed with precision, iPhone 5 combines an anodized aluminum body with diamond cut chamfered edges and glass inlays foratrulyincrediblefitandfinish. The all-new A6 chip was designed by Apple to maximise performance and power efficiencytosupportalltheincrediblenewfeatures in iPhone 5, including the stunning new 4-inch Retina display—all while delivering even better battery life. With up to twice the CPU and graphics performance, almost everything you do on iPhone 5 is blazing fast for launching apps, loading web pages and downloading email attachments. The new 8 megapixel iSight camera is redesigned with incredible optical performance, yet amazingly, it is 25 per cent smaller than the camera in iPhone 4S. iPhone 5 comes in either white and silver or black and slate, and is available with Etisalat and du networks in various prepaid and postpaid options.

4-inch Retina displayUltrafast wireless technology

A6 chipiOS6

8 mp iSight cameraMore Siri features

Maps App

Intellegent ME B2B Security 260x190-E.indd 1 11/14/12 5:52 PM

18


Open Forum

Innovation, excellence & determinationSamir I. Abdul Hadi, founder of SamTech Middle East, shares his experience of establishing a business in the UAE.

My entrepreneurial journey began 35 years ago in another country. Therefore, I am not an

entrepreneur who set up a business and immediately rose to success. I have had my share of trials, beginning with my firstcompanythatintroduced computer technology and telecommunication services to the Occupied Palestinian Territory. However, this business was short lived owing to political instability, as a result of which I had to close the company and leave the country, which was when I came to the UAE. I was determined to start all over again, prepared to take the risk, having had the right experience, and nothing but a dream and an idea to serve the community. So at the age of 46, in 2003 I established SamTech Middle East. I believed in the uniqueness of my idea - a new technology - which was a GPS trackingsystemandfleetmanagementsolution, quite like the ones in the James Bond movies. Being new, it was allthemoredifficulttoeducatethe

19


Open Forum

community and make them understand thebenefits.

Hiring process Myfirsttargetaftersettingupthecompanywastofindtherightstaffmembers to join me in this journey. I think, this is one of the critical stages of beinganentrepreneur,becausefindingemployees who have the same passion, determination to grow, and courage to help one build a dream into an empire is noteasy.ButIwasluckyinfindingtheright people at the right time. More importantly, an entrepreneur requires self-motivation. Being your own boss is entirely a different side of the coin, when compared to a salaried employee who gets to go home and relax at the end of his or her work day. Entrepreneurs are different, we need to be persistent to see that our dream is coming true and believe that this dream is sustained for years to come. So we set our priorities right and focus on the goal, and while achieving this goal

we enter this journey that positively changes who we are.

Accolades This mindset has affected the way we function as an organisation and SamTech is now in the path of growth, achieving accolades all the way. The year 2010 was our golden year, a time of many professional accomplishments. But the best moment arrived in 2011 when we were ranked 18 in the Dubai SME 100 list. Concentrating on the values and beliefs that are core to the company is

what differentiates us from our competitors. Attuning our personal beliefs with these values and aligning these with the interests of a team will help a company to grow. Conveying passion, determination, and persistence to the team will create an environment and work culture that will help the company excel and focus on quality service for the customer. I would have to say, I love being an entrepreneur and running my own company. It gives me a reason to wake up every morning, because I enjoy helping the community. My company offers a smart, green solution to control vehicle usage and, thereby, reduces fuel consumption and pollution.

Values My mother once told me, “A quitter is a loser…stand up and

continue in your path” and instilled in me a sense of responsibility to never give up, in spite of my abilities. I have never forgotten these words and use them as my motivation. My father was the one who taught me commitment, courage and a positive attitude towards life. They have been my value system and made me what I am today.

Learning As an entrepreneur who has learned the hard way, I believe some key points would be helpful when trying to run a successful business: it is important todefinestakeholders.Stakeholdersare the company’s assets, and it is important to understand their needs in order to deliver value. Ultimately the goalistohavesatisfiedcustomerswhosustainthedemand,satisfiedemployeeswho drive the company to excellence, andsatisfiedsupplierswhohelpservecustomers better. Budding entrepreneurs should know that Dubai is a business hub with comprehensive rules and regulations that help a business thrive. The government has been much focused on innovation and entrepreneurship and as SMEs in Dubai, we are proud tobehere.I’mprivilegedinfindinga home away from home, and feel like any other citizen here with rights to own, trade and build a company. However, the banking system needs to be improved, and this is something most SMEs will agree on. We need far more support than offered at present in terms of funding a business. As contributors to the economy we need to be supported. And we strive harder than ever, trying to bring about a change. An SME’s journey, therefore, is one of innovation, excellence and determination.

However, the banking system needs to be improved, and this is something most SMEs will agree on. We need far more support than offered at present in terms of funding a business.

20


Meet the CEO

A visionary architect in telecomIntelligent SME got up close and personal with Osman Sultan, CEO, du, at the Emirates NBD Global Business Series. Here’s an excerpt of the interactive session* moderated by Tariq Qureishy, CEO, Vantage Holdings.

Tariq: Who had the most impact in your formative years? Anything interesting or just a normal youth?

Osman: When you grow up in a country like Lebanon and you see what happened in that country, you cannot remain the same person. All other things would be PR talks but certainly, when I was at the age of 15 and the civil war took place. Life started to change radically for me because it took me through a different journey than the one that I had planned. I would consider this a fundamental event in my transformation.

Tariq: So how did it define you? Did it make you more bold or creative in your approach, because you left a war-torn country and you moved to France? And then you went to university. What were your emotions then?

Osman: I think it started with teaching me what one would call “crossing borders.” And that, in my life, has been something very important. It teaches one to start trying to understand the “other” especially during dramatic conditions. And this follows me, because every time I am in a business discussion or meeting with a team with different opinions, I develop this way of thinking: why is he thinking like this? Where is he coming from? Then Ifigureouthowtobridgethings.Itcanhappen at the level of a discussion with two executives, but it can also happen at a more vital, or fundamental level. And this way of structuring things probably started when I was 15.

Tariq: What are the disappointments in your early days, and if you lived your life again, what would you do differently?

Osman: I come from a very conventional environment. My father is a banker, he worked in a bank all his life. My mother is a housewife and is very traditional. I was raised to think of things in a traditional way. And at that time probably, I was supposed to follow a path in terms of education,

* Get the full transcript at www.theintelligentsme.com

21


and I thought of taking up philosophy or poetry, things that I am passionate about. And then the civil war happened. So I thought I had to become an engineer. I had what it took to become one as well. But at some point I realised that I would never work as an engineer. So I am an engineer by accident and that is what I consider a waste. I studied this without passion.

Tariq: In terms of relationships and communication between parents and children, everything is changing and you are at the helm of this. What is your opinion?

Osman: I want to give an example for this. My son Salim, when he was seven years old, was asking his mom the usual general knowledge questions that children ask. And his mom was busy with lot of other things, and all of a sudden I heard him say, “I will just discover it, I will just google it.” I believe, this is changing the scheme or pattern of learning, because when we were younger, we learn from the parent or from the teacher in school or from our mentors and professors. And authority is built on that. So, not only is this a paradigm shift in scheme of knowledge,thisisthefirsttimeinthehistory of humanity, where the younger generation is more knowledgeable than the older one. And I believe in this. We need to embrace this new mindset.

Tariq: You had a great opportunity when you were at France Telecom, and you joined Mobinil. What insights do you have for the people, especially the CEOs here, to take the bull by the horn when you do get a nice break?

Osman: Actually, Mobinil was not an accident, as this time I was stubborn. When I was at France Telecom, we were preparing with experts on business planning, and back in 1997, these guys predicted that the number of users of mobile phones in a country like Egypt with a population of 80 million people, would be after 10 years of business planning, seven million people - a penetration rate of eight per cent.

I looked around me, even in Lebanon and Europe, where mobile phones were not really in use by everyone, and I was standing in the street and next to me there was nothing at the time. Suddenly a phone rings, and it wasn’t mine. This was in 1996, and there was this guy who was a shoe shiner, who opened a drawer in his supply box and took a phone and said “Hello.” So how can we make the relation between the ability to pay, or the purchasing power of the masses? So I came away realising that this is a phenomenon that will be prevalent everywhere. I said, “A mobile in the hand of everyone.” That phrase was the turning point for the mobile industry in the Middle East. That was probably one of the most accurate things on which I built an entire vision and I delivered on that.

Tariq: What is your working style? Are you like Naguib Sawiris?

Osman: Naguib Sawiris is a warrior. I’m not a warrior, I’m an architect. People have styles. Some people, the way they are, they’re all warriors. They go there, they want to win the battle. Sometimes, not having a battle is better than winning a battle. Very often, there are architects like me who sit and think of the system.

Tariq: To take a quote from Dr. Marshall Goldsmith (who’s here), "what got you here, won’t get you there." Whatever you learnt in the past 25 years in Mobinil and France Telecom is probably not going to help you and get you into the future.

Osman: I totally agree. Today I’m convinced that if we think even in the mindset of telecom in this digital space, we will lose.

Tariq: That was my follow-up question because the telecom companies are being marginalised,

basically becoming dumb pipes, and do you consider this a big threat?

Osman: We need to think differently because our brands are at the risk of being more and more irrelevant. In European markets we can see brands that started 16-17 years ago, the phase of the internet that I call the knowledge phase. The search engines - Google, Yahoo - and we started to use the Internet like we go to the library. Then we began to use the Internet like we go to a shop and this is the transactional phase. Today we use the Internet like we go to a café. This mindset is making sites like Facebook that did not exist six to seven years ago relevant. They have changed history in the Arab world radically. So the process of changing history is also changing. Our generation knew of a world without mobiles and Internet. The new generation is born with both. I’m fascinated by this, and I consider myself so privileged because everyday I can discover something and learn something new. That’s really a blessing.

Tariq: So you have Apple, Google, Facebook and Twitter here, enjoying the profits and you’re providing the networks, the pipes. What action are you taking against this?

Osman: I will tell them, quoting a beautiful sentence, what got you here, will not get you there. Because I believe that they will have to go in for a different business model. The business model will change like ours certainly will. We talk about the ICT companies, but everything is becoming digital. You asked me what needs to be changed. Let me ask all of you - did any of your children ever tell you that they wanted to go to the du store or the etisalat store? They will tell you about Magic Planet, or the Virgin Megastore. I call this the dentist syndrome. You go to these shops only if you have to. The

Meet the CEO

A brand is everything that a company breathes.

22


expectation is hoping that this will be as painless as possible, exactly how you go to the dentist. I would love to see children nag their parents to take them to the du store. My responsibility is to think how to make this happen.

Tariq: In an article in Kipp Report you mentioned that you would like to create the equivalent of a pan-Arab Facebook. That’s an interesting challenge. Your thoughts?

Osman: Let me use a metaphor. You said “dumb pipeline” and we telcos use another word. We built roads in the beginning. And how do we charge? By time and distance. We all know the time where if one spoke more, one had to pay more. And if you speak longer distance, you pay more. And we have cars to take them to big shopping centres called YouTube or Facebook. And they start doing things. They walk in the mall, see ads, and advertisers are paying Google because they bring the customer. So they come out with big shopping bags and tell me, the telco, that the bus that we have built is not big enough, that it has to be bigger. So I’m paying the money for the infrastructure, and the extra revenue is not coming back to me. I quote Sunil Mittal, owner and founder of Bharti Telcom, “We can’t share their gain, and they don’t want to share our pain.” Why can’t we be the ones to build the mall? The problem is scale. An advertiser will not discuss with

du, Etisalat, Mobily etc a campaign for the young Arab world. Why can’t we create an entity just in the digital space where we all lay out the pipes intelligently, each keeping his or her assets where

we create a MENA digital platform? That’s the dream I have.

Tariq: Now let’s move to your current role and your current job. You had to start from a clean sheet of paper and no incumbent operator there to lean on. What possessed you to take this job?

Osman: I was thinking of the late days in Mobinil where I asked myself, what is the next phase? And I had some ideas about different dimensions of mobility and I was talking about this. I came here in late 2002,with my wife for a conference where I gave the keynote speech. When we were leaving, I believe I told her, “I could live and enjoy this country.” The second thing was something I wrote on a piece of paper - three unique characteristics of this venture - one, the launch of a second operator in a country with more than 100 per cent penetration was unheard of anywhere. Two, that no start-up had started on all fronts suchasfixedline,mobile,internet,broadcasting, etc. Third, there was no start-up that had set up shop without the backing of an existing operator. Building a mega brand today is different. You collect data on your customers, their usage, and so on. If you want my advice, I’m more and more convinced that you need to know and monitor what your users and others are saying on their social network about you. This is how your brand is going to live. Consumers today don’t want to

hear from us. It’s much more powerful when they hear it from their circle on Facebook or Twitter. This is now your new adviser - your peers. And we need to build in our DNA now this new medium that is happening.

Tariq: I read your nine-month report and it spoke of operational efficiency. Don’t you want to talk about vision?

Osman: I have a mandate to my shareholders.Operationalefficiencydoesn’t necessarily mean that I am doing this process and it cost me 10, and I need to make it cost less. It’s thinking the entire process. In this digital space, do I need this process, or is there a way for me to do it differently. And then if I say, this customer has asked for something at the shop and it’s complicated, is there a way by simplifying the life of this person - between online, and between processes, Igainefficiency.

Tariq: What is your core philosophy of leadership?

Osman: There are types of leadership. There is leadership by authority - you see styles of a leader who is more authoritative. There is leadership by consensus, and leadership by what I call adherence. I did not have the choice of making it by consensus because I was in a start-up. And I discovered that is not even my temperament. And obviously, my character is that of a story teller, so it makes it easier start with, “Guys, let me tell you this story…” The recipe is that I really care about people. Sometimes, too much, in the sense that I care about people. When you are a CEO, you can’t leave anything, you have to handle it all. And few things I have focused my attention on, are the image of the company, the brand, and the culture of the company, and the people. People imagine that brand is a campaign or a logo, or colours, a jingle or a slogan. A brand is everything that a company breathes. When one of my employees is talking about vision of the company, that is the mindset that we want.

Meet the CEO

Call 04 3150283 or visit www.axa-gulf.com

Do you think small & medium business deserve tailor made health insurance products?

Chosen as the Insurex Awards Medical Insurer of the Year for the second year in a row, you’re sure to get the best health coverage. With AXA , get the top of the range health insurance for your SME.

� In-patient and out-patient cover on direct billing basis from day one

� Choose from a range of 7 products with local, regional or worldwide covers

� A worldwide network of hospitals for in-patient treatment

� Out-patient treatment in over 1,300 hospitals, clinics and pharmacies

� Access to a medical platform servicing over 500,000 members in the Gulf, 24/7, 365 days a year

� Additional cover such as well being, personal accident and more

A W A R D S 2 0 1 1

THE POLICY 6TH MIDDLE EAST INSURANCE AWARDS

At AXA, we do

Terms & conditions apply

24


Announcements

Souq.com gets second round of funding

Online retailer Souq.com announced a new round of investment from Naspers Limited and Tiger Global. The South African multinational

media and internet group Naspers joins existing investors Tiger Global and Jabbar Internet Group through a minority interest. With eight million unique visits per month and a customer base of 3.5 million covering the UAE, Saudi Arabia, Egypt and Kuwait, Souq.com is the largest e-commerce site in the MENA region, offering a mixed model of retail and marketplace. The funding will support the growth of the Souq.com group of companies, which includes souq.com, sukar.com and run2sport.com, as well as their expansion into regional markets. “We will use the capital from this investment to offer our customers even more choice with a best in class online shopping experience, expanding into new categories such as Fashion and Lifestyle and opening our own logistics centres in the UAE, Saudi Arabia and Egypt”, said Ronaldo Mouchawar, CEO of Souq.com. Samih Toukan, chairman and CEO at Jabbar Internet Group, the group of leading internet sites and web properties in the Middle East and North Africa, commented: “This funding is a major milestone for e-commerceintheregion,andisthemostsignificantinvestment of its kind in the Arab world since Yahoo! acquired Maktoob in 2009.”

Zomato expands reach in the Middle EastZomato, a restaurant and nightlife guide which had entered the

Middle East market with its Dubai section has now expanded its reach with the launch of its services in Abu Dhabi and

Sharjah. Providing in-depth information on over 6,500 restaurants across the three cities, Zomato has become an extensive restaurant discovery platform for anyone looking to eat out or get food delivered. Zomato’s biggest strength is that it provides scanned menus, photos and coordinates for most of the restaurants listed in the three cities. Users can also explore or search for restaurants in their city through the Zomato app, which is available for free across all major smartphone platforms - WindowsPhone, BlackBerry, iOS, Android and others (zomato.com/mobile). Albinder Dhindsa, head of International Expansion, Zomato said “We launched our Dubai section last month and have received a phenomenal response so far. In a short span of one month, we have over 5,000 users visiting Zomato Dubai every day to decide where to eat out or order from. This response has further strengthened our belief that there is a huge need of Zomato’s services in the entire Middle East and we are looking forward to a successful launch of our Abu Dhabi and Sharjah sections.”

Global Entrepreneurship Summit opens in Dubai

His Highness Sheikh Mohammed Bin Rashid Al Maktoum inaugurated the third

Global Entrepreneurship Summit - Entrepreneurial Ventures of Arabia at the World Trade Centre in Dubai. In his address, he advised entrepreneurs to believe in the pillars of creativity and innovation. He added that the GDP of the country has doubled

due to courage and leadership and remembered the efforts of the founders of the country, the late Sheikh Zayed Bin Sultan Al Nahyan and the late Shaikh Rashid Bin Saeed Al Maktoum, in building the nation. He highlighted that UAE is

a centre for creativity and innovation on the regional and global levels and provides the ideal environment. The Arabyouthcanbenefitfromthis,develop their talent and exploit their energy and use it to serve the goals and objectives of their respective countries, he added. The inaugural ceremony saw

the presence of Crown Prince of Dubai Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, UAE foreign minister Shaikh Abdullah Bin Zayed Al Nahyan, minister of highereducationandscientificresearchShaikh Nahyan Bin Mubarak Al Nahyan, deputy minister of presidential affairs Ahmad Juma Al Za’abi, and a numberofministers,seniorofficialsand business leaders. US president Barack Obama participated in the event through a televised statement on the importance of encouraging initiative and entrepreneurship in the region.

25


UAE is No.1 in ease of starting business

The UAE improved its ranking in the Doing Business Report 2013 of the World Bank to 26 among 183 countries, from 33 in 2012, and stood

second behind Saudi Arabia in the region. The country was also ranked 22 globally, compared to 46 in 2012, andfirstintheArabworldineaseofstartingabusinessin 2013. The report relies on 10 key indicators, including the ease of starting a business. Business start-up in Dubai has witnessed steady growth during the past consecutive two years due to the various landmark initiatives progressively being launched by DED. Sami Al Qamzi, director general of DED, said: “I thank His Highness Sheikh Mohammed Bin Rashid Al Maktoum for his trust in DED and his directives to enhance the business environment in Dubai. The Business Registration and Licensing sector is one of the main sectors in DED that provides varied services for the business community, and it actively contributes to enhancing the ease of starting a business in coordination with the Emirates Competitiveness CouncilandtheauthoritiesconfirmedinDubai.”

Announcements

SME Evolution Program woos over 4000 participants

Potential.com, an international business consultancy, announced that its SME Evolution Program

is gaining more recognition as over 4000 participants from 29 countries have joined the program so far. The free program has become a great tool for business owners and a one stop shop for their development, funding and business needs. Potential.com also announced that the new edition of its SME Evolution Program, due to kick off with a series of webinars, will oversee new features that will enhance overall experience. One of the key new features is the advanced mobile application, which allows members to access webinars from their Apple iOS mobile devices. Commenting on the launch of the new edition of the SME Evolution

Program, Shadi Banna, managing partner, Potential.com, said: “The launch of our new SME Evolution Programconfirmsourcommitmentto providing a platform which will take SMEs to higher levels. We are delighted to see that many SMEs are benefitingfromourprogramandweareconfidentthatthenewfeatureswillprovide further resources to support their expansion.” The new SME Evolution Program will also feature a new content methodology and will allow SMEs and partners to promote their products and services on an online platform through the website’s new marketplace feature, which was recently launched. This feature is one of the Resources online platform components that Potential.com offers to its members.

7 new categories in YBL Awards

Dubai SME, the agency of the Department of Economic Development mandated to develop the SME sector, has introduced seven new categories for the UAE and

Arab world to the ‘Mohammed Bin Rashid Award for Young Business Leaders’ (YBL), thus taking the total number of award categories to 27. The new categories were added to build on the success achieved by the YBL Award since its inception in 2003, and in view of its growing popularity among local and regional entrepreneurs as well as its role in supporting the SME sector. The new categories for the Arab World awards include Best Higher Education Institution Promoting Entrepreneurship, Best Mentor Network, Best Entrepreneurship Development Fund for Women, Best Entrepreneurship Development Fund, Most SME-Friendly Bank, Best Corporate Social Responsibility Initiative in Entrepreneurship Development and Best Organisation Supporting SME Initiatives. The entrepreneurial awards for UAE SMEs are in the Manufacturing, Services, Trading, Home-based Business in Dubai (Intelaq) and the Entrepreneurial Personality of the Year (male and female) categories.

Shadi Banna, Managing partner, Potential.com

28


A positive change for entrepreneursZia Hassan, co-founder of Entrepreneurs of Arabia, is an entrepreneur himself. Having worked as a consultant for SAP over the last 10 years, he finally decided to give up a secure, comfortable full-time job in order to give back to the entrepreneurial community. An ISME report.

An MBA holder from Cass Business School London, Zia Hassan set up Entrepreneurs of Arabia

along with his MBA classmate and friendTariqAlNajjarin2011.Hisfirstexperience of working with young entrepreneurs was in his previous company where he led an initiative to bring young Arab nationals into the private sector. With a burning desire to do more to bring about entrepreneurship and create jobs for young people, Zia came to the Middle East and set about

facilitating entrepreneurs with mentors and investors. Entrepreneurs of Arabia connects entrepreneurs with investors and mentors and advises on business ideas/plans. ISME recently spoke to Zia Hassan. Below is an excerpt of the discussion.

ISME: How has the platform of Entrepreneurs of Arabia evolved?

ZH: Getting the business off the ground has been pretty straight forward as the case for Entrepreneurship and Youth employment has been top

of every country’s agenda here in the Middle East. In the beginning, planning and setting up the business was straightforward because there is no need to convince young people to take up entrepreneurship. Even the government has focused on innovation and private ownership in order to create more jobs. During last few months as the business and time has evolved, it has become evidently clear that business plans also require an evolution. Due to dynamic and rapid changes across the MENA region and the UAE, business plans are also evolving due tomaturitychangesinthefinancial,legal and commercial spheres. This ultimately means that entrepreneurs needaleanerandmoreflexiblebusiness plan / idea to keep pace with changes in the business climate. However, in my experience, business plans keep changing. This could be due to market trends, changes infinancialconditionsorlegalclimate.Therefore, a business plan might seem out of date after six months. Our platform has also evolved- we now offer a number of services. We’ve seen there is a need to help young entrepreneurs with their business plans by telling them how to pitch their idea. A lot of banks are rejecting loan applications, as proposals are not clear enough. Many entrepreneurs getboggeddownbythefinerdetails

SME Development

29


in their business plans. If one can’t communicate an idea in a manner that indicates commercial viability, then there’s no point making a business plan. So, over the years, we have introduced additional services for these areas to help entrepreneurs. We’re also now in a partnership with Dubai Silicon Oasis Authority and Dubai University. According to our agreement, we will provide high-quality entrepreneurs to the incubation centres of these institutions. Theywillbescreenedandfilteredrigorously by us. The entrepreneurs in turn will receive incubation services.

ISME: How do you ensure that entrepreneurs are not disappointed?

ZH: We get numerous ideas on a daily basis. We try not to discourage an entrepreneur’s spirit. If the idea is not good, we advocate a variation of an original idea to see that it is commercially and economically viable. We don’t de-motivate entrepreneurs because they need that spark, and we don’t want to kill that. Ideas are wide ranging - from food to technology, but mostly conventional ideas. Most ideas are localised, they conform to local aspects. We help anybody who has a genuine and great idea. We don’t have a criterion to judge, and we only request entrepreneurs to come with an idea that is thoroughly thought out. We screen investors and entrepreneurs to ensure theyarefittoexecutetheirideas.Thenwe register them onto our platform. Most often, we ask entrepreneurs if they have a partner involved in their ideasorbusinessplans.Thisisthefirstindication that they have thought this through and aren’t wasting their time.

ISME: How do you differentiate Entrepreneurs of Arabia from other such organisations?

ZH: We differentiate ourselves from other organisations by providing support as well as advisory. The platform is quite unique, because it has all the components of the ecosystem.

We’ve got the organisations, the investors, the entrepreneurs, and the mentors, and that’s where we’re unique. We’re trying to offer a faster process to introduce an entrepreneur to an investor. Business cycles are normally longer in this region and, so, by providing a shorter time to market for an idea, we aim to support and contribute towards accelerated economic growth. We are developing a network of independent domain experts on the platform. They have volunteered onto this platform, and they provide consultancy to entrepreneurs. If they are interested in the business they are invited to take a stake in it as well. Our operations are spread over the Middle East. Our domain experts currently are mainly in Dubai. Our plan is to roll out operations across the region with theUAEbeingthefirstdueitsvibrantinfrastructure and talent pool.

ISME: How much do you charge entrepreneurs?

ZH: We don’t charge entrepreneurs any fees because we realise that they are starting off, and money is very hard to come by. Therefore, our business model is not to charge entrepreneurs. Our charges come in when we are successful in a transaction that introduces an entrepreneur with an interested investor. It is a nominal fee, anything from two per cent to 10 per cent for an investor, and we take a stake in an entrepreneur’s business after it has secured funding.

ISME: How do you protect the business model?

ZH: Sensitivity and protection of intellectual properties are core to our business. Protecting people’s ideas and investor’s credentials is also very important. We’ve embedded it in the platform in each process. For instance, when an entrepreneur registers, we don’t immediately give total access. We interview them, screen them. This sort of example is applicable in whatever we do. Our non-disclosure agreement

tells entrepreneurs not to disclose what we tell them. In turn we ask entrepreneurs to send us their own non-disclosure agreements to protect them.

ISME: Do you handle financial transactions between investors and entrepreneurs?

ZH: The minimum investment entrepreneurs seek is US$50,000 from an investor. Once an idea has gone through the necessary approvals, we hand it over to an investor who has the regulatoryapprovalstohandlefinance.Investors have their own terms and legal framework. We don’t execute the legal framework around an investment ourselves (although we stay involved throughout the entire cycle). We are merely facilitators who see that an entrepreneur receives what he/she wants, and we see it through to the end. If we take a stake in a business, we work with the promoter throughout, providing support and seeing that they grow.

ISME: What is your sense of investor confidence here?

ZH: Without marketing and just an online presence we’ve received about 100clients.Investorconfidenceishigh, especially from the government side, which is keen to see young people grow. We also have established businesses coming to us for support. As these companies have a proven track record, it is easier to receive funding.

SME Development

We’re trying to offer a faster process to introduce an entrepreneur to an investor.

30


Out & About

Pitching for a cause

Loulou Khazen Baz,winner of The Entrepreneur reality television show organised by du, spoke to iSME recently on the show and her future plans. Her online project, Nabbesh (www.nabbesh.com), is a resource for SMEs who want to take on a specific project, without needing to recruit on a full-time basis.

31


Khazen Baz’ winning title and much-coveted prize includes a guaranteed officespaceforaperiod

of one year, media exposure, the chance to grow her company value, and recognition, adding up to another AED1 million in prize value.

ISME: How did Nabbesh come to life?

LKB: When we created the brand, we wanted something friendly, because our target audience is individuals with skills, so we wanted to have a very amiable feel to the website instead of becoming corporate and rigid. When introducing a character, we had an owl in mind because it denotes wisdom, knowledge and vision. “Nabbesh” means search in Arabic. We went live in April 2012 and we’re a very small team - four of us on full time basis. My co-founder who is also the CTO Rima Al Sheikh as well as two other people are working on the development of the platform. We also haveaboutfivefreelancerswhoworkon other aspects of the business. The freelancers provide us with the skills thatweneedforspecifictasksandworkaround six hours a day so they are quite committed to Nabbesh. The idea is to stay agile. As a start-up, cash is critical to sustain the business, we want to grow incrementally and we do not want to burden ourselves with overhead costs.

ISME: Why did you choose to be an entrepreneur after working for 10 years?

LKB: The last job I had was in a venturecapital(VC)firm.Throughoutmy career I met so many entrepreneurs, came across so many ideas. That sector is so exciting. It’s full of young, ambitious people who want to change the world and make a difference. To borrow a phrase, I was bitten by the entrepreneurship bug.

ISME: How is the response at Nabbesh since you began operations?

LKB: The journey has been very exciting. There’s learning every day. The more time passes, the more I feel that the concept is fantastic and the need for it. People are using Nabbesh and we’re seeing that in the numbers. There’s a lot of growth from when we launched till today. We’ve been quadrupling our sign-ups and this is with very minimal investment and marketing.

ISME: What was your experience when you joined for The Entrepreneur?

LKB: First of all, I think I was applicant Number 6. I must have been oneofthefirstpeoplethatsawit.I’ma social media person. I’m always on social media, especially Twitter. I get all my news, especially in the morning for an hour on Twitter. I saw this announcement as a tweet. It seemed interesting especially since I was starting up Nabbesh. So I checked it in detail. And I thought to myself, why not, I’m an entrepreneur, and I have a great idea, which not only a commercial venture, but a social project that has impact on millions of people around the region. The offer of a million dirhams was too good to pass up. At the time, I didn’t think I was going to win, but, as an entrepreneur, I know that I can’t pass up any great opportunity.

ISME: Who do you think were the toughest judges?

LKB: I think the toughest judge was Abdul Baset Al Janahi, CEO of Dubai SME, although he was tough with all the contestants. One had no idea where they stood throughout the competition. There was never an indication of the positives and negatives of each person. You had to be very careful while listening to the questions asked. Even when I was in top ten, I never did feel

Out & About

And, over the years, I felt that this is what I was born to do. The market conditions were right. Entrepreneurship is the focus of the day because it leads to job creation, which leads to a better economy. The time was right because there were a lot of VCs coming into the region and even internally more money was being spent in the region. The culture was changing because people are beginning to invest in the youth of this region to create greater opportunities. There is a big focus on the role of women and the fact that they are not included in the work force leading to a huge gap in the market. So, all these elements - the time, market conditions, culture of spending, and focus on women, combined with ten years of work experience in

investments, marketing and working with entrepreneurs - helped me decide to set up a business.

ISME: What do you like about entrepreneurship?

LKB: Being your own boss is obviously a great motivating factor. But it comes with a lot of responsibilities. I found a gap in the market, and Nabbesh wassetup.Ihadthepassiontofillthegap. So I thought I should go forward and do it.

ISME: What was the gap you saw in the market?

LKB: There is no platform at the moment in this region that helps people withskillstogetexposureandfindproject-based opportunities. I decided to create that platform because people have the right to work and we have vast unemployment in this region. The need is so clear. I’m providing people with a basic need, which is a chance to work, be productive and make money. There was no one else doing this for to join them, so I set about creating the platform.

32


that I would be the winner. However, my attitude about the competition changed, because I became more focused and determined to win this.

ISME: What was the format?

LKB: It was a series of workshops. Obviously you had to show that you were a quick learner and showed a markeddifferencebetweenyourfirstpitch and the last one. There were some sessions with some industry experts who would listen to your concerns, would learn more about our respective businesses and give us advice, and at the same time they will also have an evaluation with the judges of what they experienced. This evaluation was followed by our pitch. Winning the show provided me with a great push to continue building my business.Who would dream of a million dirhams as a prize, or vote of confidence,orasanendorsement?I’m the kind of person who is slightly cynical by nature, even during the show. But now it’s different, we celebrate every small milestone we cross at Nabbesh. No matter how insignificantinthegrandschemeofthings, we celebrate it, because it is important. It’s motivational for the team to stop for a bit, enjoy the small successes, let it sink in, and then continue on.

ISME: What areas do you think you excelled on the show?

LKB: I think I’m very personable. I had the combination of what a TV show needed - a superb concept, and a presentable nature, and a venture that will not only make money but also contribute to the community. I’m expressive too and this is what one wants to see onscreen. We have to be good at selling ourselves and selling the product. It’s so important to get these four judges inspired. It’s hard. I dare anybody to stand in front of a camera crewof30people,fourdifficultjudges,with so little time and make a perfect pitch. It was a lot of pressure. Nabbesh was already live for three weeksbythetimethefilmingstarted.I

think that helped in winning, because even if you’re looking at something that is a complete disaster, it’s still better than looking at just an idea. Ideas are a dime a dozen, everybody has millions of them. But ideas are worth zero without anything to show for it. When you’ve takenthefirststepandbuiltsomething,you’ve already shown the people that the idea is tangible and that you are serious and committed to the business. Maybe the product isn’t great, but people will understand because of lack offinance,resources.Whenyoutakethatfirststep,itgivesyoualotmorecredibility than people who have their business on paper. There is something to see and experience.

ISME: How is this exposure going to help you in your business?

LKB: Obviously the exposure that will come from the show will be immensely helpful. The biggest challenge for any start-up is to build a database. I think the exposure would help us achieve that to a certain degree. I think it is fantastic to be the winner of such a show because it is a good endorsement for our business. Moving forward, we see a lot of value for SMEs. An SME’s challenge is talent acquisition and immediate acquisition. It’s a nightmare for SMEs tofindtherightpeople. Not only do you have a challenge tofindthem,butyouhavetomakesurethey are available immediately. SMEs are not restrictive either in terms of territory. A skill could come as far as Jordan. So there is an available talent pool, and in the future the talent will be rated by their peers. We just crossed 5000 skill providers in a short span of time.

ISME: What are your targets for 2013?

LKB: We want to have a regional user base. We want to be in Arabic and be present on mobile platforms and hopefullyturningaprofit.

Out & About

Ideas are a dime a dozen, everybody has millions of them. But ideas are worth zero without anything to show for it. When you’ve taken the first step and built something, you’ve already shown the people that the idea is tangible and that you are serious and committed to the business.

34


Out & About

A playbook to flourish in businessWhether you are young or old, female or male, about to start your own business or merely thinking about starting your own venture, Connect the Dots will help you see your path clearly. An ISME report.

Connect the Dots, a guidebook for entrepreneurs by John Lincoln, vice president-marketing ( Enterprise

segment), du, was successfully launched recently in Dubai. The publication is a playbook for an entrepreneur, an everyday pocket guidetosurvivingandflourishinginbusiness. This publication provides a wealth of experience that has been put together by Lincoln himself in 30 chapters. Lincoln noticed that there was a lack of basic industry knowledge and that he wanted to share his experiences by writing Connect the Dots in the most simplest of forms so that all businesses

and individuals could connect. “This is my tribute to SMEs,” he added. “Most people start up their business and projects based on opportunistic decisions as opposed to a strategic decision, they don’t think about sustainability and growth, and because of that we see many businesses fail. This analysis got me thinking and led me to decide

that I want to share my expertise and knowledge,” he explained. With the diverse and challenging

market conditions, Lincoln continuously found himself hiring large multicultural teams. He has recorded his observations and applied the thought process in his publication stating the obvious failures and success stories. Some topics mentioned in the bookaresecretsofhiringandfiring,cashflowandsourcesoffunding,marketing to women, pricing strategies and tactics, and sustaining a business, among others. Lincoln’s business knowledge spans from a truly global perspective. He is a transplanted American, who has worked in several countries, such as Japan, India, the UK, Malaysia, Thailand, and Brazil. He has held senior management positions with global organizations such as Vodafone, Japan Telecom, Bharti Airtel and AT&T. Connect the Dots is now available at all major bookstores in the UAE.

du SVP network development Hatim Bamatraf, du chief commercial officer Farid Fraidooni, senior director SME (Enterprise marketing) Vikram Chadha amoung attendees at the launch ceremony of Connect the Dots.

35


Out & About

Leading the way to successful loan applicationsDubai Chamber’s ‘Guidelines for Enhancing SME Finance’ provides a list of required documentation as well as tips designed to help SMEs apply for finance successfully. An ISME report.

The Dubai Chamber of Commerce and Industry launched its ‘Guidelines for Enhancing SME Finance’

duringaseminarheldatitsheadofficerecently. The seminar, held in cooperation with the ministry of economy, sought to highlight efforts aimed at reducing the gap between supply and demand of SMEfinance.ItprovidedSMEswitha unique opportunity to learn what essentials are required when applying forfinancing,howtomaximisetheeffectiveness of an application, and how to speak to bank representatives on the spot. Dubai Chamber chairman Abdul Rahman Saif Al Ghurair, said that enhancingSMEs’accesstofinancewas an effective way of ensuring Dubai’s continued development as an international trading hub. “Despite their integral role in Dubai’s economy many of our SME members continuetofacedifficultiessecuringfinancingatsustainablerates.Infact,the UAE’s total bank lending to SMEs is around 3.85 per cent, when its target is 24.3 per cent, so addressing this issue has been a primary task for Dubai Chamber,” he said. Eng. Mohammed Al Shehhi, undersecretary of the ministry of economy, delivered the keynote speech about the importance of adequate financingforSMEs.HesaidthatSMEscontribute an estimated 40-46 per cent of nominal GDP for Dubai and more

than 60 per cent of GDP of the UAE. He said that SMEs host the majority of employment opportunities in Dubai and the UAE, and that these enterprises provide 86 per cent of the employment in the private sector. “Unfortunately, the banks’ focus on big loans for big corporations is also affecting government efforts to encourage private businesses as a step towards reducing unemployment among Emiratis. The ministry of economy is aware of the immense potential and contribution of SMEs to national growth, and is making all efforts to support this sector. In this context, it will be the ministry’s effort to launch the SME Law at the earliest. The Ministerial Committee has just approved the draft law and it will be sent soon to the Federal National Council,” Al Shehhi added. Dubai Chamber’s ‘Guidelines for

Enhancing SME Finance’ provides a list of required documentation as well as tips designed to help SMEs make more successful applications. The guide also provides applicants with contextual examples to help identify the most important aspects to focus on, while providing guidance on what to emphasise in discussions with a bank’s relationship manager. The seminar featured speeches by Mohammed M. Abdulrazzaq, head of Business Banking, HSBC Dubai, who talked about application-relevant documentation requirements, and Douglas Stoneham, head of SME for UAE and Middle East, Standard Chartered Bank, who gave tips on how to ensure a successful interview with afinancier.Followingthespeechesapanel discussion between bankers and SME owners was led by Dr. Belaid Rettab, senior director, Economic Research and Sustainable Business Development Sector, Dubai Chamber.

The seminar, held in cooperation with the Ministry of Economy, sought to highlight efforts aimed at reducing the gap between supply and demand of SME finance.

Eng. Mohammed Al Shehhi, undersecretary of the Ministry of Economy,

36


SME Financing

The many advantages of life as a listed company

Craig Hewett lists out the benefits of carrying out an IPO and how it can streamline a business.

Themostobviousbenefitofcarrying out an initial public offering (IPO) is to raise capital to help a

company grow. With loans hard to come by for many businesses in the current banking climate, or else prohibitively expensive, going public is an

increasingly attractive alternative way to acquire funds. But the advantages of an IPO do not end once a company has received money from its new investors, in exchange for some of its shares. The achievement of listed status is the beginning of a journey that can bring many other short-term and long-term benefitstoo.Anycompanywondering

whether an IPO is right for them should beawareofwhatthesebenefitsare,to help them reach the appropriate decision.

In the spotlight One advantage usually becomes clearontheveryfirstdayofthelisting,when a company’s shares start to

37


SME Financing

trade on its chosen exchange for the firsttime.Thecompanyfindsitselffirmlyinthepublicspotlight,withthemedia writing and broadcasting its share price and plans for the future. Congratulations on the listing often pour in from customers and business partners, who see it as a positive step that underpins the company’s reliability and prospects for growth. New business can quickly follow. If the selected exchange is NASDAQ Dubai, with a profilethatisinternationalaswellasregional, the listing can make a truly global impact. It is likely to catch the eye of the international press, which is interested in companies that have an international investor base of the kind that NASDAQ Dubai can provide. Many issuers on NASDAQ Dubai take advantage of the exchange’s links with the NASDAQ stock market in New York to place a message on the giant NASDAQ Tower in Times Square, overlooking one of the best known locations in the city. The Tower can be used to advertise not only the listing, but subsequent important developments at the company too.

New capital Media interest in a company is maintained after the listing, as journalists follow movements of its share price and developments in its

business over time. Another lasting benefitthatfollowsanIPOisthatlistedstatus can make it easier for a company to raise further capital. This can be achieved by issuing further shares on the same exchange. The regulatory regime governing NASDAQ Dubai provides a streamlined procedure to enable its listed companies to take this route. Or they might decide to issue a bond or sukuk and list that as well. A NASDAQ Dubai listing can also make it easier for a company to borrow money from a bank, as the status of being listed on an exchange that operates to international standards helps to address many of the concerns that lenders have when assessing customers, such as transparency and quality of governance. AfurtherbenefitofanIPOisthatshare options can be used to attract and retain talented staff. Options are an important part of employee packages in many successful companies, providing motivation as well as reward for success. Shares can also be used as payment, instead of cash, to enable a company to take over another one as it expands its business. And a listing on an exchange provides company owners with a simple route to sell some of their own shares if they wish to, by selling them on the open market.

Craig Hewett is senior vice president- head of business development at NASDAQ Dubai with responsibility for the commercial activities of the exchange. These include product and market development, membership, training and market data. Prior to joining NASDAQ Dubai in July 2011, he held the position of chief business officer at the Bahrain Financial Exchange (BFX) from 2008. He brings a wealth of international expertise in trading a variety of asset classes.

A well run business The good governance practices that go with being a listed company help to keepitrunningefficientlyandalerttoopportunities and challenges. The Dubai Financial Services Authority, which is the listing authority for companies whose shares trade on NASDAQ Dubai, requires companies to comply with certain internationally respected principles in the way they operate. For example, every listed company should have an effective Board of Directors that contains a balance of skills, experience, independence, and knowledge of the company’s business; and the Board must ensure that the company has a robust risk management and compliance framework. The Board must also ensure that the company’s financialreportsareaccurateandclear. Many SMEs, are of course, extremely well run long before they list, but a sound regulatory framework reinforces best practices. A company that operates according to these principles has a high chance of outperforming a rival that does not. Another long-term advantage

of a listing on NASDAQ Dubai is that the pre-IPO owners of the company can stay in control, as only 25 per cent of the

shares need to be sold in the IPO. On many other regional exchanges, more than half the shares must be sold. Being a listed company is not a guarantee of success. The usual ups and downs of business still apply. Buttheongoingbenefitsoflistedstatus keep working in a company’s favour long after it has raised capital in its IPO.

A further benefit of an IPO is that share options can be used to attract and retain talented staff. Options are an important part of employee packages in many successful companies, providing motivation as well as reward for success.

38


International Accreditation

The ‘passport’ to European markets While exporting, product safety is a priority and can be ensured by CE marking, writes Dr. Sameer Kumar.

Competitive and much valued, the European market is easier to access than ever before. Many

exporters, particularly SMEs, refrain from entering this market owing to the technical requirements for entry that seemtoocomplicated,difficult and expensive. However, manufacturers who have accessed this prized market know that although the process is cumbersome, it is well worth their while. The European Union alone is amarketofaffluentconsumers,approximately 500 million of them. The European market is a large area that comprises more than 25 countries. Therefore, for an exporter, Europe as a whole has become a market whose technical requirements have beengreatlysimplified.Beforetheformation of the European Union, each country imposed its own technical requirements. Different standards and conformity assessment procedures forced exporters to target one or two countries or avoid exporting to Europealtogether.Theunificationof these European countries into European Union and the consequent harmonisation of laws, standards, and conformity assessment procedures, are advantageous for exporters. Further,ISO9001certificationiswidely accepted in Europe as a sign of credibility of a manufacturer's product. However, it is important to note that a manufacturer with a quality system, such as ISO 9001 in place, should not

assume that his or her products are CE compliant because of the quality system alone. The appropriate New Approach Directive will prescribe the correct and full route to conformity assessment. TheCEmark,whichisaffixedto a product or its packaging, is considered proof that a product has met all the requirements of the

Communauté Européen, meaning the European Community. The European Commission describes the CE mark as a passport for goods to be sold freely within the internal European market. ItismandatedbylawtoaffixtheCEmark if the product falls under one of the New Approach Directives. This is not a quality mark, nor is it a mark for consumers. Intended for member

Reference of directive/regulation Subject of directive/regulation

2000/9/EC Cableway installations

(EC) 1907/2006 Chemical substances (REACH)

89/106/EEC Construction products (CPD)

(EU) 305/2011 Construction products (CPR)

EC) 1223/2009 Cosmetics

92/42/EEC Ecodesign – hot-water boilers

2010/30/EU Ecodesign and energy labelling

2009/125/EC Ecodesign and energy labelling

(EC) 1221/2009 Eco-management and audit scheme (EMAS)

2004/108/EC Electromagnetic compatability (EMC)

94/9/EC Equipment for explosive atmospheres (ATEX)

93/15/EEC Explosives for civil uses

2009/142/EC Gas appliances (GAD)

95/16/EC Lifts

2006/95/EC Low Voltage (LVD)

2006/42/EC Machinery (MD)

2004/22/EC Measuring instruments (MID)

93/42/EEC Medical devices (MDD)

90/385/EEC Medical devices: active implantable

98/79/EC Medical devices: in vitro diagnostic

(EC) 765/2008 New legislative framework (NLF)

2009/23/EC Non-automatic weighing instruments (NAWI)

94/62/EC Packaging and packaging waste

89/686/EEC Personal protective equipment (PPE)

97/23/EC Pressure equipment (PED)

2007/23/EC Pyrotechnic articles

1999/5/EC Radio and telecommunications terminal equipment (RTTE)

2008/57/EC Rail system: interoperability

94/25/EC Recreational craft

2011/65/EU Restriction of the use of certain hazardous substances (RoHS)

2009/105/EC Simple Pressure Vessels

2009/48/EC Toys safety

List of New Approach Directives for CE Marking

39


International Accreditation

state authorities, it is the visible sign to those authorities that a product is in compliance with the New Approach Directives. All manufacturers are requiredtoaffixtheCEmarktoproducts that are governed by New Approach Directives. CE marking on a product indicates to all authorities that the product is in compliance with the essential health and safety requirements of all directives that apply to the product. Thefirststeptocomplianceisdetermining which directives apply to the product. A product may be regulated by more than one directive. The CE mark does not disclose which directive or standards apply to a particular product, nor will it indicate the method of conformity

Reference of directive/regulation Subject of directive/regulation

2000/9/EC Cableway installations

(EC) 1907/2006 Chemical substances (REACH)

89/106/EEC Construction products (CPD)

(EU) 305/2011 Construction products (CPR)

EC) 1223/2009 Cosmetics

92/42/EEC Ecodesign – hot-water boilers

2010/30/EU Ecodesign and energy labelling

2009/125/EC Ecodesign and energy labelling

(EC) 1221/2009 Eco-management and audit scheme (EMAS)

2004/108/EC Electromagnetic compatability (EMC)

94/9/EC Equipment for explosive atmospheres (ATEX)

93/15/EEC Explosives for civil uses

2009/142/EC Gas appliances (GAD)

95/16/EC Lifts

2006/95/EC Low Voltage (LVD)

2006/42/EC Machinery (MD)

2004/22/EC Measuring instruments (MID)

93/42/EEC Medical devices (MDD)

90/385/EEC Medical devices: active implantable

98/79/EC Medical devices: in vitro diagnostic

(EC) 765/2008 New legislative framework (NLF)

2009/23/EC Non-automatic weighing instruments (NAWI)

94/62/EC Packaging and packaging waste

89/686/EEC Personal protective equipment (PPE)

97/23/EC Pressure equipment (PED)

2007/23/EC Pyrotechnic articles

1999/5/EC Radio and telecommunications terminal equipment (RTTE)

2008/57/EC Rail system: interoperability

94/25/EC Recreational craft

2011/65/EU Restriction of the use of certain hazardous substances (RoHS)

2009/105/EC Simple Pressure Vessels

2009/48/EC Toys safety

assessment used to bring that product into compliance. This information is provided by other accompanying documents, such as the Declaration of Conformity. A manufacturer or an authorisedrepresentativeaffixestheCEmarkingtoaproduct.Itisnotaffixedbyanotifiedbody.

Passport The European Union's New Approach Directives are mandatory for all member countries to enact through national legislation. It’s an offence to place a product on the market without CE marking. A manufacturer is legally responsible for ensuring that its product confirmstoalltherequirementsofthe directive and CE marking. Due to stringent safety standards, many

countries outside Europe, especially in the Middle East, are adopting CE mark as basis of product safety standards in their own country.

Benef

its The EU introduced the CE marking scheme to make trade easier and cheaper between EU countries. It means that a product conforms to the minimum legal requirements for health and safety as laid down in EU directives. Thegreatbenefitformanufacturersis that there is now only one set of requirements and procedures to comply with while designing and manufacturing a product for the entire EU.Thevariousconflictingnationalregulations are eliminated. As a result, a product no longer needs to be adapted tospecificrequirementsofdifferentmember states of the EU. In addition, it may be considered abenefit,thatbyimplementingtheserequirements, a product will be safer for users, while also reducing damage and liability claims. CE marking is a product certificationfororganisationsthatwant to penetrate or develop a particular market or sales opportunity. TheCEmarkingcertificatehelpstomeet sales and quality objectives. The certificateopensthedoortoEurope.

Dr. Sameer Kumar, CEO, Universal Consulting FZE, is a Quality, Food Safety & HSE 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, Qatar, Jordan, 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. To know more about International standards write to Dr. Sameer, Email - [email protected] .

The European Commission describes the CE mark as a passport for goods to be sold freely within the internal European market.

40


The benefits of offshore bankingWealth Management

The term “offshore” describes nothing more than a jurisdiction other than the one in which you are usually

domiciled. Therefore, any jurisdiction can be offshore. For example, the US is one of the world’s largest offshore jurisdictions (for non-US citizens). In most cases the word “offshore” is used to describe low or no-tax jurisdictions that have promoted special legislation to attract business and interest from other countries. Therearesignificantadvantagesto investing, holding assets, doing business or residing offshore. It can give you broader access to global markets and, therefore, yield more investment opportunities. Your assets can be protected from unsubstantiated

lawsuitsandunjustifiedclaims.You can enjoy privacy and personal security and, of course, there are many possibilities to reduce taxes legally.In most countries around the world, your residence is the primary basis of how you are taxed, and since the early twentieth century, people from high-tax jurisdictions have sought to relocate themselves to lower-tax ones. Places like the UAE, for example, levy very low or nil rates of income tax. Many such jurisdictions are also capital gains and inheritance tax free. However, that is not to say that those residing in the UAE and other parts of the Arab world do not stand to benefitfromoffshorebanking;quitethecontrary. Yourfinancialadvisershouldbe

able to recommend a range of banking institutions, which are tax-friendly to non-residents in locations such as the Isle of Man, Jersey, Gibraltar and Guernsey, among others. Here I take a lookatthebenefitsofdoingso:

Protect your assets Protecting your money, whether in a current, deposit or investment account, is an important consideration. Holding assets offshore can help to protect you from a bank’s collapse. A good example of this is that in late 2008, at the height of the global credit crunch, the States of Guernsey resolved to establish a deposit compensation scheme to protect retail depositors with local banks. Like Britain’s Financial Services Compensation Scheme, the

OFFSHORE BANKING

Keep it private How to find a good wealth manager Ask about service levels

Protect your assets

Know what you’re looking forPass on assets as you wish

Get recommendations

Consider all your options

Many people associate offshore banking with the super rich, but the benefits extend far beyond the very wealthy - ranging from access to more innovative banking products to asset protection and anonymity, writes Rupert Connor.

41


Wealth Management

schemecoversthefirst£50,000ofdeposits by individuals. Meanwhile, the Isle of Man protects 90 per cent of assets held withlifeassurancefirms,shouldtheybe unable to meet their liabilities to policyholders. This scheme operates globally, providing protection to policyholders no matter where they live. Banking offshore will also provide you with the added security of banking inahighlyregulatedfinancialmarket,unlike that of the UAE, which is in the embryonic stage of being regulated.

Pass on assets as you wish Many expatriates are unaware of Shari’ah law and how it affects the financialsystemintheMiddleEast:in some cases, your assets could end up being frozen, and ultimately be distributed contrary to your desire. One of the big advantages of offshore banking is that you can choose who your assets are passed to in the event of your death.

Keep it private Offshore banking ensures your accounts are kept strictly private. Theconfidentialityofalloperationsconducted through the account is protected by legislation. The account is protected from creditors, tax authorities and other interested parties.

A good wealth manager Financially speaking, expatriates who reside in the east tend to be more affluentthantheircounterpartsinEurope and west. If you live in the Arab world and have survived the hard times of the past few years, there’s a strong chance thatyou’refinanciallybetteroffthanifyou were working in your homeland or another western country.

Having said that, I’m always amazed that many of the expats I meet are unaware of their offshore advantage and fail to embrace the opportunities legitimately available to them to advance, enhance, protect and effectively manage their wealth. Expats often aren’t sure where to gotoreceivequalifiedandqualitativeadvice. So as a newly-arrived expat, livingabroadforthefirsttime,howshould you go about sourcing a wealth manager to help you?

Get recommendations Clearly, it’s wise to seek out areputableindependentfinancialadviser. Independent, in this instance, means someone who does not work foraspecificfinancialinstitutionandwill offer you a much wider range of options than an adviser who is tied to a specificcompany,suchasabigbank.But how do you know that the adviser is reputable? Recommendations count for a lot, so ask around to see if any neighbours or colleagues can recommend an adviser they have had a good experience with. It’s important to feel that your wealth planning is in good hands and that you can enjoy a good rapport with your adviser.

Know what you’re looking for Primarily, it is your adviser’s duty to recommend a clear path towards

reaching your lifestyle goals. Don’t be afraid to ask very direct questionsandbespecificaboutyourindividual investment needs. It’s not all about investment returns: you should be just as interested in preserving your capital against inflation,reachingadesiredincomelevel from a lump sum, making your investmentastax-efficientaspossibleand securing the smooth passage of your estate.

Consider all your options You might think that your old adviser is best placed to help you. However, they might simply suggest repatriating your wealth back to your home country and investing it in taxable savings and investment solutions, property or perhaps even bonds or cash-based bank accounts. However, this is not the best solution for many people for a number of reasons. Alternatively, you may feel that you have to save your newly-acquired wealth onshore in your new nation of residence. Enquire, too, about offshore investment procedures as this might be the best route for you.

Ask about service levels Many advisers will recommend similar products. What differs, to great varying lengths, is the service offered. Ask your adviser to state in writing the level of service you can expect in a clear and concise manner. Be extremely wary of advisers who make you feel uncomfortable in any way. A reputable adviser will not offer an investment that must be taken out immediately, nor will they promise unrealistic levels of return. The right adviser will also be interested in your ownfinancialcircumstances:bewareofthose that aren’t.

Rupert Connor is an independent financial advisor with Acuma Wealth Management. As a qualified advisor in the region, he helps expats get their finances in order, and maximise the financial opportunities available offshore and plan for future events.

Don’t be afraid to ask very direct questions and be specific about your individual investment needs.

42


Being equipped to succeed

Sandi Saksena outlines key measures for insuring a business against operational losses.

As an SME, you are part of the fastest growing segment in the UAE economy. You must do everything you can

to ensure that, as a major contributor to the UAE’s economy, you are equipped to succeed in the present business

climate and to develop in the future. Various surveys conducted on SMEs reveal that SME business owners generally do not perceive preparedness as a priority, perhaps because they are preoccupied with managing their operations, perceive a low risk of crisis

or because they lack clear business rationale for preparedness. Thefirstinsuranceyoushouldtakeis key person insurance that protects the business if a key person becomes disabled or dies. Why should you insure your business? Business insurance protects your business against any operational losses. Whatever your business— be it an employment agency, IT consulting, management or marketing consultancy, photography or videography agency, cateringfirm,oraccountingfirm,consider business liability insurance cover, which includes general liability and professional liability. What type of loss is covered by your insurance policy depends on your company, policy, and its limitations. There are several types of coverage for business insurance.

Business liability insurance is one of the most important types of insurance a company needs. It protects against liabilities or claims made by third parties due to negligence or a mistake on your company’s part. It can come into effect in the event of bodily injuries or death or property damage caused by your business to a customer, general public, property owners among others. Depending on your policy, it could cover legal costs, medical expenses (for the injured) and other types of compensatory damages.

Public liability coverage protects a business against claims of bodily harm or property damage caused to the public or another third party resulting from business operations. This could include coverage for when a customer or visitor slips and gets injured on company premises because of a water spillage, for instance.

Product liability insurance comes into effect for any harm caused to a third party (often to customers) from

Insurance

AIG SME Insurance Solutions

All businesses face similar exposure and risks but we at AIG recognize that each and every business is unique; with this in mind we have designed a product especially for you.

We understand that customers are the centre focus of small businesses and that even the smallest incident can interrupt your daily operations; this is why we at AIG believe that it is not about replacement or repairing, it is about restoring your business to its original capacity.

You can relax in the knowledge that our fast, reputable claims handling service will get your business back up and running promptly, just give us call and we will handle the rest.

Our SME Portfolio

; Office

; Clinicare

; Property Owners

; Retail

; Select

; Food & Beverage

; Personal Care

; Educare

The information contained herein are not complete descriptions of the products and services, but are for general informational

purposes only. These products and services are underwritten by American Home Assurance Company, a member company of

AIG. Certain names, words, titles, phrases, logos, icons, graphics or designs may constitute trade names, registered or unregistered

trade-marks of AIG used under license by AIG

American Home Assurance CompanyTel +971 4 214 3000

www.aig.com

The Intelligent SME.indd 1 12/11/2012 2:07:15 PM

44


Insurance

the use of your company’s product. For example, if you are an FMCG company, it can provide coverage in case a customer sues you for getting food poisoning after consuming your product.

Professional liability is also known as professional indemnity insurance, and is meant for companies that provide professional services, such as management marketing accounting or computer consulting. Often referred to as “errors and omissions” coverage, professional liability protects your business should a customer claim that you committed negligent acts or made errors or omissions when performing your professional services. This type ofinsuranceisbeneficialbecauseprofessional liability claims can be very costly. Many SMEs, here in the UAE, are in the business of event management conferences, exhibitions, corporate events, outdoor and other special events. There is risk in every event, and though some companies may purchase basic cover, few SMEs purchase contingent business interruption policies to cover events that indirectly impact their company, including events that effect key suppliers or other factors. Even small events involve time, effort and expenses, which can go to waste if an event has to be cancelled, curtailed or postponed. Additional costs can be incurred if an event is disrupted. The cause can be anything outside your control and which is unforeseen - from the key speaker or performer falling ill, to severe weather, to transport disruption, among others. Fortunately, event cancellation and disruption insurance can be taken, and there are event assured policies for every event type corporate, product launches, road shows, hospitality,

conferences, incentive travel and others, which also cover equipment at events from tables and chairs to sophisticated audio visual systems and computers, all of which are someone’s responsibility.

Cost The cost of business insurance depends on basic elements, such as size and nature of business and the number of people involved in that business. The larger your business is, or the risk involved, the more expensive cover you would require for every individual, vehicle, and building. For example, if you have a construction business that involves operating heavy machinery, dangerous power tools, and working from large heights, your insurance rates will be much higher than a simple delivery business. If you are in a business that involves warehouse work,orhandlingheavy,difficultand/or delicate machinery, materials, or packages, then you will have to pay more costs. You should always apply for business insurance and receivable insurance to make sure that your company can handle any losses. Beitjustyouroffice,professionalservices, retailers, property owners, or professional indemnity - no matter the nature of your business or jurisdiction under which you operate - besides the mandatory insurance, take that extra step and the insurance appropriate to your SME. As the person responsible for researching and purchasing business liability insurance coverage for yourcompany,findingtherightgeneral liability insurance, workers’ compensation insurance, and umbrella liability insurance policies at a reasonable price can be a challenge, because buying small business insurance isn’t something you do every day, the many available options can

be confusing and even intimidating. Work with an independent broker who can help and guide you through the risk prevention strategies, products and pricing and will give you the cover most suited to your business.

Sandi Saksena is a financial planning counsellor with over 15 years’ experience in advising on life, disability and critical illness insurances. She focuses on exit planning for SME owners, working with accountants and lawyers to provide holistic solutions.

Some of the useful general insurance covers include: Fire and other events cover for damage to buildings, contents and stock from events such as fire, storm, malicious damage and impact. Cover for theft of business contents and stock as a result of a break in to your building. Money covers for loss of money at your business premises during business hours, in a locked safe, in transit or at your private residence. Business interruption covers for the loss of your gross profit, resulting from an interruption or interference to your business by insured events such as a fire, storm damage or theft. Public and products liability cover for your legal liability for personal injury or property damage as a result of an occurrence in connection with your business. Glass cover for breakage of glass and signs. General properties cover for items you regularly take away from your premises, such as tools of your profession, laptop computers and other electronic equipment. Equipment breakdown cover for the cost of repairing or replacing machinery and electronic equipment, which suffers a breakdown. Marine transit cover for loss or damage to goods in transit within UAE or abroad.

Intellegent SME BSP 260x190-E.indd 1 11/14/12 5:57 PM

46


Insights to grow your business

Sometimes sheer common sense can give a marketing campaign the edge over others, writes Simon Hodges.

In a previous article in this column, Ibrieflyoutlinedfivegeneralareas you should consider in order to grow your business. To

remind you, these are: recognising that all businesses are in the sales and marketing business; understanding the market you are in; creating a bond of

trust with your customers; standing out in the marketplace and concentrating on a chosen segment or niche. In this article, we will look at the area of sales and marketing, and I want to introduce you to some powerful and profitablebusinessbuildingprinciplesthat form part of the “street wise” and

“common sense” business school, proven time and time again to provide business owners with advantages over their competitors.

Ultimate leverage Too many businesses remain grounded in one-dimensional

Sales & Marketing

47


marketing habits. But marketing is a tool of the mind and it is in the mind where true wealth is made. Before this starts to sound like some kind of new age lecture, let’s look at an example. Let’s say you send out a sales letter that costs AED10,000 and gets a poor response. There is a tendency to give up and say “why should I spend AED10,000 and go through all that work and only achieve a small return.” However, what you need to think about is the content of the sales letter. It is highly likely that something in the sales letter can be improved to increase response rates. Often, simply using a stronger headline or using better copy in the body of the letter, can increase response rates dramatically. By improving the content of the letter and doingitscientifically,youemploytheleveraging action of marketing. You are still sending a sales letter, but it’s not about the physical tool of thesalesletter.It’sabouttheinfinitepossibilities that marketing concepts give you in order to make that tool more effective.

Test and measure effectiveness No matter which strategy you employ or which method you choose to incorporate in your business, you must always measure its effectiveness in small tests before you roll it out in a grand manner. Once the test proves itself, use that test as a control. Then change one item or detail of the strategy or method and do another small test. If the second test brings better results thanthefirsttest,thesecondtestthenbecomes the control. While this testing is a never ending process, whatever you do, don’t lose sight of the total picture. For sure, concentrate on areas where

you can see the greatest improvements but do not neglect the other areas. Remember, that by making small incremental improvements in several areas the overall results you will get will be exponential.

Grow your business You are now running successful marketing campaigns so, other than availablecashflow,thereshouldbenosuch thing as a marketing budget. It is a ridiculous idea based on the assumption

that marketing is a cost rather than a revenue generator. If an advertisement costs AED2000andtheprofitgenerated from the ad is AED1200 (you would know this as the revenues generated as a result of the advert

would be measurable, right?), why would you stop the advert just because your budget dictated it? Providing cash is available, the marketing effort should beunlimitedwithascientificapproach.It is self-generating. Understanding this self-evident truth is the key to marketing leverage and massive

Sales & Marketing

business growth. All marketing efforts carried out by an SME can be measured and remember, you can never truly run out of ideas. In marketing, persistence almost always pays off. Marketing can leverage an average idea into something spectacular- if you have what it takes to make it happen! Look no further than MacDonald’s and their simple burger and chips concept! I can hear you saying, “This sounds all too theoretical but when it comes to the practice, it’s different.” The truth is that you can be successful like millions of other SME owners operating round the globe but the real trick to making effective use of marketing istofirstunderstandyourmarket.By concentrating on a niche and promoting a well researched unique selling proposition that sets you apart from your competitors, you will have the simple task of communicating the benefitsofyourproductorservicetoanaudience that already wants what you have to offer (your promise). When you have these elements you can then earn the trust of your customers by simply delivering against this promise to create a sustainable growth model.

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

The truth is that you can be successful like millions of other SME owners operating round the globe but the real trick to making effective use of marketing is to first understand your market.

48


Stand out or get outWhat makes a company rise above competition? Zed Ayesh urges businesses to differentiate themselves from industry peers.

An open market, such as the UAE, is an excellent location to begin a business. It is no wonder that

entrepreneurs come from all over the world with ideas to start-up in Dubai, seeking to provide solutions to satisfy needs in the market. However, an open market is also crowded with all sorts of ideas, businesses, and people; everything that you need or want is available in many shapes, forms, styles, and offerings - this is competition. Competition is good for the economy, the clients, and businesses alike because it makes a business strive to become better, and an economy benefitswiththefittestsurvivingthiscompetition. In addition, it makes both consumers and suppliers more sophisticated, better informed and up to date with the latest market tends. The complexity of the local market with its diverse segmentation and

steep competition makes it mandatory for an SME to constantly monitor its core business idea, its communication strategy, channels, delivery methodology and how it all stacks up with both consumers and competition. In summary, SMEs must examine its overall marketing elements from products, place, packing, promotion, price and people. If a company offers “me too” products and services, then chances of success of such a business becomes slimmer. Offering new and different products, services and solutions is the way to go. An SME should stand out from the crowd, and that difference could be one or more aspect of the business. Myfirstquestioninthemarketingclasses that I conduct for SMEs or large companies is: why would I buy from you? Why not the competition? It is important to understand that in most cases we don’t just compete with other businesses in the same industry, but we

also compete with alternatives for our products and services, which add to the complexity of the situation. The usual answer I receive is: we have the best service, or we have good quality, or we have the lowest prices, which all translates to nothing but a cliché in the mind of customers. Such answersraiseredflagsinmymind;Isee it as a big dysfunctionality of any business when it focuses on a product or service rather than customer needs.

Differentiation Differentiation of your business is a popular subject in marketing and other areas of the business world, but many entrepreneurs, including SMEs, don’t have a clear approach to differentiate their business from their competition. Basic elements of having a sound business, such as having a reasonable offering with a clear core proposition and evident core competencies are a must before considering a differentiation strategy. Assuming that these elements are in place, we then work out an appropriate differentiation strategy. The process of differentiation is logical not creative; differentiation should be thought of thoroughly, it should be simple, clear and straightforward. Four basic steps make the differentiation process clear and simple as I have summarised below.

Make sense When trying to differentiate your business, keep in mind that it has to make sense or the industry in which the business is categorised. The message to differentiate a product or service has to be very clear and describe what can bequantified(suchasbeingthemarketleader),specificattributes(beingthefirstinthemarket),orspecialisation(how the product is made or delivered). Messages, such as having the best quality, lowest prices, and best services are not differentiation factors, as these slogans are so overused in the market that they have become meaningless. They present neither facts nor a clear idea about what a customer will get when such a transaction is done.

Sales & Marketing

49


It is becoming a classic practice of business thinking to consider that a market has only two sides: a company and a consumer. Now more than ever, this is far from the truth. The purchase process nowadays is even more complex, and that is why differentiation is needed more than ever. It is crucial to know and understand that differentiation is a logical process that requires rational thinking and clear,specificideasthatmakesenseinrelation to the product and the industry we are working on differentiating. We are not talking about the marketing and advertisement campaign, the difference should be in the product and or service, and that difference should be communicated to the market.

Focus on the idea It is important for an entrepreneur not to get carried away with having many things to be different about; a company can have more than one thing to differentiate it from other companies, but it should focus on one clear idea - to position the company in the mind of a consumer. A consumer gets exposed to overwhelming number of messages everyday; too much noise forces consumers to be more selective in the information they process and keep in their minds. It is much easier for the brain to remember what stands out from others; it is also the notion of the mind to consider the specialist better in what they do and in what they can deliver. Moreover, it is more impactful to connect a company with a single attribute, as the mind does not like to be confused. As I mentioned earlier the differentiation factor should be clear from the consumer perspective andbequantified.

Have the credentials This is an area where many companies in this market can take advantage. Many companies don’t have the credentials to provide customers with what they want. In other words the level of services and products is not where it needs to be which creates an opportunity for many start-ups to excel in this area. It is the norm in this market for companies to say one thing and do another. As I mentioned earlier, this stems from the idea that the selling has only two sides to it. I call that the short-sided experience; many entrepreneurs lack deep and thorough understanding ofmarketforcesandmarketinfluences.When working with individual SMEs, I found that most challenges are internal

and not external, which translate to lack of credentials, resulting in poor customer engagement or poor customer experience. The struggle of SMEs in this region, as I mentioned is an internal one; it can be clearly seen in their processes, human capital management, management

abilities,targetmarketidentificationand understanding. Such a struggle presents itself as a huge opportunity to the newcomers into the entrepreneurial world; new SMEs can enter into same industries as existing companies and with better internal processes, thus gaining an advantage of operational excellence, which is a larger differentiating factor. Therefore, a new SME is running the same race faster. The gap between what companies communicate and what they deliver add more value to the differentiation strategy to separate a company from all the noise in the market.

Communicate your difference Opening your doors for business

doesn’tmeanthatcustomerswillflockin to buy your products or services. Being different is essential, but it is not enough to sell your product or service, the same goes for your target market segmentation. Customers need to know,firstofall,thatyouasacompanyand as a business exist. They also need to know how they can buy from you and how they will get the product or service that you are selling. In addition, they need to know about your offering and what value it offers. In summary you need to communicate with your targeted market segment in all possible ways: with a clear message about your company, simple and logical communication, focused on one consistent idea, while all communication tools and channels should speak the same language carrying the same message. With all the competition in the market and the global changes, the world has become a much smaller place. The reach of businesses can cross borders and different cultures. It is more essential now to be different.

Sales & Marketing

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.

It is becoming a classic practice of business thinking to consider that a market has only two sides: a company and a consumer. Now more than ever, this is far from the truth.

50


Your vital 3 secondsSales Strategy

They say you never get a second chance to make a first impression. Phil Bedford gives you tips on opening up conversations and developing relationships.

Have you ever walked into a new group of people, networking event, social gathering or even a

meeting and started a conversation with someone? Then with no apparent reason, you decide you either don’t like them, are not comfortable with them or you may think they feel like “a long lost friend?" Depending on this outcome, do you think you are more or less likely to do business with them; will they want to get to know you, or even do business with you? Harvard studies claim that we

make these decisions within three seconds. That’s three seconds to make afirstimpressionandastheysay,younever get a second chance, to make a firstimpression.Infact,thereisabeliefit is even less now (Books such as Blink by Malcolm Gladwell are a good follow-up read). One of the challenges with this three-second timeframe is the person you are looking to meet could be making these unconscious choices as you approach them and even before you shake hands. It’s hardly fair is it? That someone can be making these assumptions when

they do not know anything about us. So, here are some tips that might at the least make them more open to a conversation where you can prove your worth and move on to develop a relationship. At a fundamental level we are comfortable with “people like us” - we look for the synergy and our unconscious mind says: “I am safe, I am comfortable, I recognise myself.” Firstly, we need to understand that there are four types of behavioural styles. This knowledge has been around forcenturies.Thiswaslaterrefinedbyothers, such as Dr. William Marston

51


Sales Strategy

properly and professionally. They seek efficiencyandperfectioninalltheydo. Like the Nurturers they are more deliberate (or slow) and take their time thinking and acting. Unlike the nurturer, they are very task focused and are often uncomfortable with relationships andpeople.Hence,findingthematanetworking event is often only because they have researched it and know that this will help them hit a business goal. They will often leave as soon as they can. You will often see them moving out of and away from any big groups. When shaking hands they may have an outstretched hand to keep people at a distance. Personal space is important to them. Discussions should be around businessandefficiency.Personalfamily questions and complements will not go down so well. They also do not trust people who smile too much. Newsflash!Allstylescanbegoodat networking. It’s about learning how to maximise the strengths of your style.

How to adapt Some basic tips would be “mirror” or copy the other person’s speed, words and mannerisms. Discuss what they want to talk about based on their style. Remember; treat people as they want to be treated.

StylesStyles

Further studies on the subjectThe Platinum Rule -online assessment

www.platinumrule.comRoom full of Referrals

www.referralinstitute-me.com

“Treat people how they want to be treated” - The

Platinum Rule, Tony Alessandra.

An experienced business trainer, Phil Bedford brings over a decade of experience to his role as master franchisee for the Referral Institute. His expertise and experience of working with both companies and networking associations, coupled with a passion for training have helped him immensely. He regularly appears as a speaker in the UAE and abroad, educating people on how to build their business by word of mouth and “Creating Referrals for Life.”

into DISC and Dr. Tony Alessandra as “The Platinum Rule”. Let’s have a look at the four styles:

‘The Go Getter’ They move quickly, talk quickly and act quickly and are very task focused. They are direct and to the point.Confidentand result-driven, this style likes to win. There is no place such as second place. They want to know what’s in it for them in everything they do and ultimately what’s the “bottom line”. They are great problem solvers, enjoy a good argument and can forgive in a heartbeat. Becausetheyaresoconfidentanddirect they are often seen as arrogant and aggressive, even scary!

‘The Promoter’ This style, like the Go Getter is fast paced. However, they are more people focused rather than their task at hand. They are highly sociable and love to be around people. The Promoter needs to be having fun no matter what they do. They enjoy change and often have many things going on at any one time. When talking to them their eyes will keep dashing around the room. Not because they mean to be rude but because they don’t want to miss anything. They tend to be highly connected and will know lots of people. You can normally spot them because of their huge smile and wild hand movements. They are mainly motivated by meeting new people, making new friends and are great to team up with for the more nervous networker. They can tend to go off track when networking, and often forget why they went there because they are so busy chatting. They can appear to be unprofessionalandflippantbecause

they are so enthusiastic and fun loving and especially

as they often arrive late because their time keeping is normally a bit poor. When awkward

they will often crack off-colour jokes.

‘The Nurturer’ As the name implies, the nurturer likes to care for and look after people and relationships. They do not like change or big groups of people and prefer to be “one on one.” They can often be overlooked because they may be timid and uncomfortable in groups, but they are often the people with whom you can build the long-lasting relationships. They will support you to the ends of the earth once proven to them. If they are networking at an event regularly, they will tend to have a lot of belief in the network and may be a long standing member. They are motivated by helping people. In conversation, they like to get to know people and will tend not to discuss business. The more task driven styles would do well torememberthis.Relationshipfirst,business second, very much like some of the people from the Gulf States. They may get overlooked by the fast “styles” who judge success by dress andothermoresuperficialmarkers.They will often not want to try new things and tend to miss opportunities. Be aware they will often not choose the best option for their business because they are uncomfortable with the person.

‘The Examiner’ Our examiners like to know the reason behind everything. They are inquisitive and will spend all their efforts making things perfect. They like things to be done

52


Getting started on the corporate governance journey

John Merrigan outlines basic concepts of corporate governance that can be easily understood.

Most leaders and entrepreneurs I have met totally understand thebenefitsofgood

corporate governance for their business. But why do relatively few succeed in implementing it

successfully? This is the story of the Carpenter, Entrepreneur, Shamrock and Adviser. On the face of it, they have little in common, but I hope, in the next few minutes, it will inspire you to commence on the journey of corporate

governance, and more importantly to continue it as your business grows and prospers.

Carpenter A key problem with the concept of corporate governance is the term

Corporate Governance

53


itself. The words conjure up images of bureaucracy and administrative burden that generally succeed in creating misunderstanding, fear or just plain resistance. This is where the Carpenter comes in. My grandfather was a master carpenter and he lent me one phrase that I use every day in business: “Measure twice, and cut once.” Amongst all the definitionsofcorporategovernance,this for me is the essence and most understandable. It is that second measure or extra validation before acting that leads to good decisions and fewer mistakes. Measuring twice as much as you act is a sound ratio to take profitableactionsinyourbusiness. Corporate governance simply ensures that there are procedures, policies and controls in the business to create the “second” measure, both written and more importantly culturally, like the habits of a skilled craftsman.

Entrepreneur In his book The E-Myth Revisited, author Michael E. Gerber describes why many small enterprises don’t work and what to do about it. He describes three central characters in each business: the entrepreneur who supplies the vision, the manager who supplies order and systems, and the technician who supplies the output or products. I have never seen a single individual who combines all three skills. Trying tobeallthreeisfrustrating,inefficientand potentially fatal for the business. So, this is the simple but profound insight: recognise this personally and focus your own strengths and those of your team. Corporate governance is connected to the vision of the company, led by the entrepreneur,

but success requires others to make it happen. It is a team effort with each member contributing their skills and perspectives.

Shamrock Apart from being a national emblem of Ireland, my home country, the Shamrock also combines a form that comprises three leaves in one cluster. This also symbolises three components in the journey of corporate governance. Firstly, the governance framework equates to say, 25 per cent of the task, consolidating formal written procedures and policies on operation of the board and management structures, successionplanning,financialandbusiness reporting, delegation of

authority, and if applicable, the family council. The second 25 per cent is stakeholder engagement; a critical process that ensures all levels of the organisation are involved, and that there is an appropriate change management to re-align the business stakeholders. This phase

often involves deep soul-searching, sometimesconflict,andrequiresgreatskill, patience and determination. The remaining 50 per cent is implementation, based on a clear 12-24 month plan, with regular milestones, accountability and updating (it never ends). All these elements are essential to start and sustain your corporate governance journey.

Adviser In my experience, the corporate governance journey will only be

effective by engaging outside help - this is the role of the last character, the Adviser. An independent external adviser will bring fresh perspective, momentum and expertise that is essential for good corporate governance. Selecting the right one is vital, based on personal chemistry, integrity, proven track record and relevant skills. Again, my grandfather’s advice to measure twice and cut once will be in your mind when you do so. When that selection is made, consider corporate governance as a discrete projectinthestart-upphase,anddefineupfrontthescope,thefixedprojectfees, milestones, project deliverables andthetermsaroundconfidentialityofbusiness information. At the end of the engagement of around 6-8 weeks, you should emerge with a formal corporate governance framework and a 12-month action plan. Form a small team along with the adviser to implement and review regularly. You will be amazed how quickly progress is made. I hope the four central characters in the story have helped to simplify the journey of corporate governance and will have inspired you to make a start on one of the most important aspects for the long-term success of your business. The Carpenter’s words willkeepitsimpleandfitforpurpose.The Entrepreneur (or Owner) needs to focus on his or her strengths and build the team around them. The Shamrock shows three parts of the journey to success, and the Adviser brings outside expertise and momentum. Start today and make corporate governance work for you!!

Corporate Governance

John Merrigan is a seasoned senior manager and company director with extensive experience in wide-ranging industry sectors. His career spans more than 25 years in multinational, SME and family businesses, internationally and in the Middle East Region. He advises and supports small and medium organisations to successfully implement fit-for-purpose strategies in corporate governance.

Corporate governance is connected to the vision of the company, led by the entrepreneur, but success requires others to make it happen.

54


The power of planningWhat cannot be measured cannot be managed! V. Ramkumar delves into the core of a business initiative- its planning.

Business Management

If you are failing to plan, then you are planning to fail! So simple in its expression, yet the potency of thisstatementpossiblyreflectsthe

core reason for billions of dollars that are pilfered globally. If an organisation does not have a plan, then it has no means to measure if it is progressing - and what cannot be measured, cannot be managed as well! Core of any enterprise, business initiative, or even the regular day-to-dayoperationsistheefficacyofplanning. It only becomes more critical in the context of SMEs where the enterprise has limited resources which have to be managed carefully. Planning is not an isolated activity,

Planning for the enterprise More often than not, this tends to becomeasimplefinancialtargetsettingprocess, and worse still, sidelined to become an accounting exercise at the end of the year, where the targets are increased by a percentage of previous year’s performance. In reality, this has tobemuchmorethanjustafinancialplan - it also needs to set the objectives for the enterprise on what will be

but needs to be an integral part of any enterprise, venture or initiative. This is at a macro level - for the overall business, and also at a micro level - for the individual running the business.Ithastoreflectthevisionof the organisation from a long-term standpoint, and still needs to have an annual, quarterly and monthly target. Similarly, at an individual level, one should be cognisant of his or her performance measurement at the end of a year, and also should have a day-to-day planning calendar that lists down the to-do list for the day. Let us explore a little, from two perspectives: planning for the enterprise, and planning for the individual.

55


Business Management

achieved, delivered through which initiatives, to be executed by whom, and by when. The Balanced Scorecard framework helps facilitate this to be definedinastructuredandholisticmanner, across four perspectives:

Financial: If we succeed, how will we look in terms of revenue, growth and profitability?

Customer: How do we want customers to view us in terms of price, service, and quality?

Process: To satisfy our customers, what management processes must we excel at - cycle time, productivity, costs, etc?

Organisational: To achieve our vision, how must our organisation learn and improve - people, technology, climate for action, etc? While the above sets the business plan in terms of objectives that need to be established, it has to be aligned with the set of initiatives that the enterprise must be engaged in, and the responsibilities that must be bestowed on key people from within the organisation. The objectives are their direct responsiblities, initiatives that will deliver these objectives, and by whenthesearetobeachieved.Definingquantifiablemeasuresthatcantrackthe progress is integral to this planning process, as it then helps effectively monitor the progress. Whilethishelpsindefiningtheorganisational objectives for a medium to long term period, the more short term measurement is driven by the targets and performance reviews, which are obviously broken down from the overall annual targets. The key here is in ensuring that the tracking is not just intermsofthefinancialobjectivesand

alignedinitiatives,butthattheyreflectall the four perspectives - which is how you ensure it is a ‘Balanced’ Scorecard!

Planning for the individual Howmanyofusdefineaplanfor the year, let alone for the day, and reflectbackattheendofthedayonourperformance? The answer lies in the list of New Year resolutions that went by without a murmur into the oblivion! Now, while that may still be seen as a personal wish-list, it is imperative that for every professional to have a well definedsetofobjectivesandplanforexecution for the long-term, medium term and even for the day! A well-designed performance management system of any organisation ensures that the enterprise objectives,asdefinedintheBalanced Scorecard, dovetails into that of the individual performance measures of its employees. Now that in itself helps bring in clarity to what needs to be achieved by the individual, and the means through which this ought to be achieved. More importantly, there should also be clarity on how one definesthesuccessfulachievementor execution of the stated objectives -whichisdefinedbyquantifiedmeasures that are in direct control of the individual and related targets.

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

Defining quantifiable measures that can track the progress is integral to this planning process, as it then helps effectively monitor the progress.

At an even more operational level, I have seen successful senior executives have a very structured approachtodefiningtheirdailyactivities, and ensuring there is time for executing everything. And the secret isinspendingthefirst15minutesofyour day in listing down the to-do for the day, and in prioritising it. The issue, then is, how do you prioritise the list? Generally, the thumb-rule to follow is to categorise the list into fourquadrantsofthepage,classifiedby sense of urgency and sense of criticality. Obviously, those that are both of high urgency and criticality assume the highest priority, followed by those with high urgency but less criticality. The trick is in appropriately classifying the list of things to do, in

a manner where not everything is urgent!

A last word on successful planning: you do not need to have a 100-page plan for any initiative to be successful. As long as the

plan is precise, is holistic and provides clarity, any

plan is good to go. There will always be a course correction to

the plan as visibility increases through its execution. However, just because the plan is “expected to undergo a change,” refraining from making the plan in the firstplaceisarecipeforadisaster.Nowgobacktothefirstparagraphofthisarticle - are we still surprised?!

56


Making yourself ‘secure’ in the Middle East

Business Law

Living and working in the Middle East is a treat, but it could easily turn into a tragedy in the event of unexpected death, writes Nita Maru.

57


Business Law

Oft-repeated concerns about safety and security in the Middle East are traditionally associated

with safeguarding human lives. What many expatriates living in the region often don’t remember or recognise is the more pertinent aspect of protecting posthumous life. An unexpected death is one of the most devastating things that can happen to any family, anywhere in the world. But imagine if, in its wake, there are troubles and traumas ranging from bank accounts being frozen to family assets being distributed to warring factions. After a lifetime of planning how to make money and managing the wise spending and saving of all your wealth, death puts a full stop to all these decisions. If you have struggled to build up your assets, want to preserve and grow your riches, and ensure that yourfamilyenjoyitsfullbenefits,itisimportant to know about the instrument to achieve these goals. For expatriates living in Dubai, or in most places in the Middle East, there is a pressing reason to make a proper will.TheDubaiGovernment’sofficialwebsite states that ‘the UAE Courts will adhere to Shari’ah law in any situation where there is no will in place’. This just means that if you live and work here, and you die without having made a will, the local courts will examine your estate and potentially distribute it according to Shari’ah law. While this may appear risk-free or even pleasing in theory, its implications and implementation may not prove very practical. Shari’ah prescribes to a set method of distributing a person’s wealth after death, and this is based on Islamic principles which are biased towards the men in the family. For instance, a wife who has children

qualifiesforonlyoneeighthoftheentire estate, and without a legal will, this distribution is automatically applied. Unpaid bills, debts and mortgages do not automatically die with the death of a person. All personal assets, including bank accounts of the deceased, are seized and frozen until such time liabilities have been discharged to the satisfaction of the courts. Application of Shari’ah law is particularly pertinent in circumstances where the deceased is under the sponsorship of his or her spouse and has a joint bank account or shared assets (cars, rental agreements, freehold homes). These may be frozen until the issue of inheritance is determined by the local courts, and surviving family members are often left without access to money until the authorities decide how the estate should be distributed, which could take months or even years. Distribution under Shari’ah law tends to be at odds with what most expatriates would have intended. Dying

intestate could leave a great deal of debt unpaid - and cause endless grief on the legalfront-untiltheestateisfinallydealt with by the UAE Courts, and the family’songoingfinancialrequirementsare met. Not only does the absence of a will affectthefamilyfinancially,butitcanalso goad the authorities to intervene concerning guardianship of bereaved children. This is especially true in cases where death befalls both parents simultaneously.Unlessawillspecifiesarrangements which members of your family or friends should raise your children, there is a possibility that their care may be entrusted to other parties. In summary, if you live and die in Dubai and don’t have a will, you simply cannot be sure what happens after your death: whether your family will be provided for, who will look after your business, and when and how your beneficiarieswillactually standtobenefit. The consequences of not having a will are not restricted to the uncertainty of how an estate is distributed, but also implies hefty legal fees, the length of time for eventual settlements and emotional upheavals. Protection of family legacies in the Middle East is a complex, complicated, and often underestimated area of the law, and as a team of lawyers dedicated to this business, we have seen Shari’ah law operate in completely different ways from the laws of various other nations. Many expatriate families continue to harbour the notion that living and working in the Middle East is a treat, but they forget that it could easily turn into a tragedy in the event of unplanned death. While the concern of ‘securing’ lives is misguided at most times, secure planning for the future is most definitelyamust.

After a lifetime of planning how to make money and managing the wise spending and saving of all your wealth, death puts a full stop to all these decisions.

The author of this article is Nita Maru, solicitor and founder of legal consultancy firm, The Wills Specialists, licensed by Dubai Legal Affairs Department and The Rulers Court, Government of Dubai. The Wills Specialists is located in 1305, Saba 1 Tower, Jumeirah Lakes Towers, Dubai. Nita can be contacted at 04 448 4284 or by e-mail at [email protected]. Visit www.willsuae.com.

58


Tribal tips for leadersMichael Tolan explains classic traits to guide a business leader through challenges.

Leadership

Ask any entrepreneur what is the most important quality they must exhibit to drive their vision and reach their

goals and you will, no doubt, hear a litany of responses ranging from determination to strategic thinking. Several research-based studies on this question have pinpointed classic traits to guide the leader of an organisation through the testiest of storms and challenges. Some of these were highlighted quite by accident due to a failed promotional launch of a fashion line by Victoria’s Secret, the high-end lingerie makers. It was revealed that a protest was instantly levied against Victoria’s Secret, by the Native American community leaders, who took offence

to their use of a traditional feathery headdress on a supermodel, wearing next to nothing else. The revered headdress is typically reserved for the most honoured members of the tribes. To understand why this offended the Native Americans on the surface, it seemed that it was considered racist and insensitive. However, the deeper meaning revealed an insight to leadership that must not go unnoticed for leaders today - serendipity. The traditional tribal headdress was laced with bird feathers, and was worn by the most respected members of the tribe. They varied in size and color, using feathers from birds that were indigenous to that geographical region. The feathers were not merely decoration; they were and

are symbols of recognition. They could only be earned. Tribal leaders earned feathers through acts of bravery, honesty, and benevolence, in other words, good deeds. Therefore, the leaders with the most amounts of feathers ‘earned’ were imbued with the highest amount of respect. They had a code, and this code modelled the way for all others in the tribe to know that these were the behaviours of sustainability, survival and respect. One could only humorously imagine the reaction of tribal members if, one day, the chief addressed his followers and said: “This is Dave; he has worked with a famous printingcompanyforfiveyears,andhiscompany just acquired the rights to our land; so, he is our new leader.”

59


If at that point they were to look at Dave, and inspect his bald head, how much respect, based on their culture could Dave expect to garner? None. Why? Simply because apart from this being a ridiculous scenario, no respect could ever be given to any person until they have earned it. As we fast-forward to the challenges facing leaders in 2013, what will leadership require over the next year and beyond? Are people today really so different? Let us put this question to the test. Start with your suppliers.Whenanybusinessfirststartsits operations, do they immediately receive unlimited lines of credit from every supplier? Of course not, suppliers will be too eager to take on new business with new partners, but these new partners will be obligated to succumb to the rules, procedures and policies of the supplier. Why is this? The new business has not earned enough feathers; it is untested and, therefore, will most likely be compelled to follow the policies of the supplier for payment conditions, volume discounts, and so on. Cash will be trading commodity, not trust, nor respect. So, how can a start-up leader change this paradigm? By building relationships, executing their business with the supplier according to the required policy and over time, earning trust as a reliable partner. While every business has its variations on strategy, pricing, sales channels,cashflowmanagement,itseems apparent that apart from instant commercial success, a business leader must take the golden steps toward nurturing key relationships, adding value and earning respect. Now the tribal leaders and the modern day ‘C’ level executives are onthesameplayingfield.Respectis

the most fundamentally important product that a leader can manufacture. Great leaders understand that this product must be freshly squeezed daily; thereisnoartificialalternative.Theyunderstand that, their suppliers are partners in waiting, as are the people they assemble on their team. Leaders like it or not, are always on the stage of judgment. Their behaviours are always noticed, as are their moods and attitudes. The people who entrust their futures to their bosses have always behaved the same whenever that leader has betrayed trust with them, the market, and the customer base, deserts them. Ask yourself the question; if you were an employee of a business that had a leader who proved him or her to be less respectable and below standards,couldyouconfidentlygotoyour bank for a home loan? Leaders do not have the luxury of living and behaving like normal everyday people who can occasionally lose the plot, get angry with others, display animosity and be spiteful or even hurtful. A great leader knows that their team members are in fact their suppliers. This takes more than just an understanding of the concept of continuously earning trust and

respect; it requires a deep resolve of commitmentandpersonalsacrifice.How can leaders today then, gain from the wisdom and experience of great and fallen leaders? Micro-focus and practise these principles: instill in themselves a deeper desire to achieve their goals to the point where they not only desire this positive outcome, but also can visualise it with all their heart. Thisdefinesameaningfullife. Understand that the people around them will naturally need to be inspired, often, daily, by being able to look up with pride to the person at the helm. Decide to become the beacon, the example, the model that speaks through action and deeds. Embrace the notion that respect must be freshly squeezed, daily, so that others will be nourished and feel secure that they too are on the right path. Be bold enough to ask why not, and to be ready to take apart a process and re-engineer it through innovation and by collaborating with others in their camp. Give strength to others by rewarding them with a publically recognisable feather of achievement, sending the smoke signal to others that it pays to participate with zest and zeal. As the leader accepts these responsibilities as not only duties, but also a way of life, they will begin to gain momentum, and build life credits for themselves. And no matter how good things were yesterday, the true leader knows that from today, they can go anywhere when they take on the qualities of great leadership and put them into daily practice, from sunrise to sunset. If these principles are followed then it will be easier for all of the members of the tribe…to follow the leader. That is, the naked truth.May all of your actions and deeds bring you many feathers. Go native.

Leadership

Michael J. Tolan is a speaker, writer and corporate mentor and board advisor to several organisations. He is the creator of Mission I’m Possible series of motivational workshops through FirePowerLeadership.com and is the Chief Inspirational Officer of the World Class Academy of Excellence (Follow him on Twitter mtolan@worldclassgroup).

As the leader accepts these responsibilities as not only duties, but also a way of life, they will begin to gain momentum, and build life credits for themselves.

60


7 ways to reduce stress in your lifeAnesh Jagtiani gives strategies on leading a fruitful and peaceful lifestyle.

Anti stress ball

Leadership

61


Did you know that too much stress can cause problems with your metabolism which can have a dramatic

effect on your physical and emotional health...and your longevity? Let's face it, most of us hate having excess stress in our life... but how often do we really think about the fact that stress could be killing us? If this concerns you, and you're looking for a strategy for eliminating 90 per cent of the stress from your life, then this might be one of the most important articles you'll ever read. What you're about to learn are seven strategies which you can use to reduce the stress in your life:

Low media diet It's no mystery to anyone that the majority of information which comes through the media is negative and causes fear and worry. Yes, it's good to stay connected to the outside world, but a lot of the information which the mediaisdeliveringtousisfilteredaccording to what sells. Since bad news sells better than good news, too much influencefromthemediaisexposingyou to a negative view of the world which isn't fully grounded in reality.

Eliminate toxic relationships Your relationships have probably themostprofoundinfluenceonthe quality of your life, and toxic relationships can be a source of extreme stress. If you have people in your life who are obnoxious, controlling, disrespectful or unnecessarily intimidating, either get them out of your life or start drawing some strict boundaries with them to vacate their influencefromyourlife.

Get a "rainy day fund" Financial worries can rob you of your happiness and security almost quicker than anything else. Start setting aside 10 or 20 per cent of what you make for the sake of building up a "rainy day fund." In other words, you've probably heard that it's wise to save money for a rainy day, meaning for any emergencies that might come into your life. Having three or four months of expenses set aside will make it much easier for you to deal with financialstressandjobstress.

Proper nutrition The body's ability to cope with stress is greatly hindered by poor nutrition. Start making a commitment to cut unhealthy fats and preservatives out of your diet and to keep sugar and sodium consumption to a minimum. Then, begin replacing these with foods which are natural and which have a positive impact on your metabolism. This will make it much easier for your body to deal with physical and emotional stress.

Physical activity The body's ability to cope with stress is also greatly determined by your level of physical activity. Research reveals that consistent balanced exercise such as cardiovascular three times a week, and two or three strength training sessions a week builds up your body's resistance to stress- both physical and emotional. A good exercise routine also helps your body to get restful sleep and helps you to focus for longer periods of time.

Meditation Meditation is the best way to cleanse your mind and it helps

eliminate obsessive thoughts which worry you unnecessarily. Meditation also gives you an opportunity to focus your attention on developing practical plans of action for getting what you want and for creative problemsolving. You don't even need to meditate 30 minutes to an hour a day. Simply start with 10 or 15 minutes and practice it until it becomes a habit.

Get a pet This is especially good advice if you are single, but studies also show that couples who have pets have a better chance of having a healthy relationship. Pets add a great deal of joy to your life because their love is unconditional and they are always there when you need them. Having a pet also gives you a greater sense of purpose in your life because you have something counting on you for survival.

Anesh Jagtiani is the CEO of Empowering Leaders Group (M. E). He is a professional speaker and trainer. His leadership programme 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 [email protected] or www.elgme.com

Leadership

Let's face it, most of us hate having excess stress in our life... but how often do we really think about the fact that stress could be killing us?

TIPWork on each of these seven steps one at a time until you have eliminated these sources of stress from your life.

Entries for the inaugural Gulf Finance SME Golf Cup are now open. Dubai’s SMEs are invited to enter this exciting corporate team golf event taking place over the coming months at Emirates Golf Club, offering SME companies a unique platform to establish new business opportunities.

Corporate teams of four, compromising of a minimum of two employees, select two of the four qualifying rounds to try and secure a place in the Grand Final, where the top 24 teams based on the aggregate total of the two qualifying rounds will compete. Each team member must have a valid handicap.

Fixture Location Date TimeQualifying Round One Faldo Course Monday 19th November 2012 1pm shotgunQualifying Round Two Faldo Course Monday 17th December 2012 1pm shotgunQualifying Round Three Faldo Course Monday 14th January 2013 1pm shotgunQualifying Round Four Faldo Course Monday 18th February 2013 1pm shotgunGrand Final Majlis Course Thursday 18th April 2013 1pm shotgun

Tournament FeesAED 3,500* per team of four and AED 3,200* for companies registered with Dubai SME

*entry fees include two qualifying rounds (eight green fees), four team shirts, dinner buffet on the Clubhouse terrace at both qualifying rounds as well as four places at the Gala Dinner regardless of qualification.

For further information and to enter your team, please email [email protected]

The Gulf Finance SME Cup at Emirates Golf Club

Official Magazinein collaboration withTitle Sponsor

ENTREPRENEURSWOMEN

THOSE WHO MADE A MARK.

64


The Female ProjectShereen Mitwalli is an Australian-born finance major who ventured into entrepreneurship when she was only 24 years old. Running a successful business in Australia, and living in Dubai, she gave ISME an account of her latest online venture - The Female Network.

Mitwalli has gone through the entire cycle of entrepreneurship from the hardest times of being

the last in the chain of getting paid, being constantly self-motivated, to the rewarding moments of being able to focus on both her business and further an alternate career. She has learnt to bravely take risks and surrounded herself with mentors who are delighted in her professional growth.

ISME: Explain The Female Network.

SM: The Female Network is an interactive platform for women from all walks of life. It is one of the only networks in the Middle East that can show off such large interactions among members. We support women and provide them with information that they can use in various spheres of life, such as beauty, fashion, lifestyle and career, and cooking. The aim of The Female Network is to motivate, inspire and educate women in a fun and dynamic environment.

ISME: What is the response you have received?

SM: Since the launch in July 2012, our page on Facebook has generated more than 8000 likes, which means there has been a great response. In fact, the feedback that we have received has been overwhelming. With this particular network, we’re trying to provide an umbrella of services that encompasses different aspects of life. The concept is a dynamic one, and more importantly, we’re trying to give people a voice. In this new age, women want to be heard, and this space caters to that need. We aim to be the number one source of information in the UAE for women.

ISME: How is The Female Network a platform for women to be heard? What services do you provide?

SM: Being a page on a social media network, it is crucial to have constant

Women Entrepreneurs

65


interaction among members. If fans are not sharing, or even reading updates, they are not utilising the content and, therefore, it defeats the purpose. We focus on content that people want to know about and share with their friends and family. Our members are allowed to post job vacancies that need tobefilled,orwritetousforalittleextra help in promoting their business. We know how it is for a start-up and would like to help as much as possible. So for instance, if a business needs to be promoted or a product needs to be tested, then we offer to promote the business with the help of online contests, or give the members an opportunity to try out a product and give their feedback. We aim to have 20,000 fans by March 2013.

ISME: What are the next steps in The Female Network growth ladder?

SM: We need to take a qualitative approach to the content we are providing. We’re soon going to be launching a website, whereby we’ll be able to collect data on our members qualitatively. Then we can beginsegmentingandfindoutexactlywhat content they would like to read and share. The website would also have a classifiedsectionwherepeoplecanposttheir job listings absolutely free. These also become feeds for our Twitter and Facebook pages. We’re also in the processoffinalisingfourcontributorsin fashion, beauty, lifestyle and career, and cooking. These contributors would be the faces of The Female Network and will be highly respected, prominent figuresthatinfluenceahugenumberofwomen through blogs and short videos among other content.

ISME: Being a networking platform, would there be face-to-face interactions in the future?

SM: Absolutely, we’re going to launch monthly events from December 2012 that will bring women together, get them to learn something new and socialise. It’s going to be educational and very interactive. We’re also

working on a VIP membership that will, for a nominal fee, offer more services and networking opportunities. Our segmentation of fans would yield ideas for the nature of topics that would interest our members at each event.

ISME: How do you market The Female Network?

SM: Currently, we are a three-member team, but we’re in the process of embarkingonafull-fledgedmarketingcampaign. Conventional methods of marketing do not suit this business model, hence we use a lot of social media marketing on Facebook and Google, and the news gets around by word of mouth. Women play a huge part in The Female Network. A networking group such as this becomes a very interesting platform for advertiserswhowanttoinfluencethisgroup of women.

ISME: How do you streamline your business and The Female Network, whilst pursuing your present career?

SM: In the beginning, while setting upmyfirstbusiness,itwasdifficult,but over the years, one learns how to streamline work. I think it has a lot to do with the trust factor. I have a great team with me. I get my micro-detailed reports on a daily basis. I handle the financialsofthebusinessinAustralia.We compare dates from the previous year to this year to measure progress. An online business is much easier to measure as all the statistics are available online. As I’m not involved in every little detail, I’m able to devote more time to strategy and planning for that business; even introduce a few marketing techniques from this market.

The Female Network is a lot of fun. I love connecting with other women myself and providing them with content and information that will ultimately impact on their lives. I’m investing in this platform now and building it to become investable in the future. Being an online business model, we don’t need our activities to beconfinedtoanoffice.Thestaffhasthe luxury of working from home and I’m not the kind of person who needs to beinanofficetobeproductive.Idon’tmicromanage as I’m result-oriented. My philosophy has always been: as long as we’re using the power of the internet, we don’t even need to be in a country to provide services to the people residing there.

ISME: What advice would you give to new start-ups and entrepreneurs?

SM: The UAE market is very different from Australia in terms of social demographic, purchasing power, budgets and so much more. My advice to business owners is - Have a strategic plan and JUST DO IT! Procrastination kills ideas. Have good mentors around you that you respect and admire in business and set up monthly meetings with them to review your progress and get their input. I always surround myself with mentors who are far more successful than me. Another great idea is to break down long term targets into monthly, weekly and daily targets to help achieve them easily. Have fun in your business and don’t look at it as a ‘JOB’… this was the biggest advice I picked up from interviewing Richard Branson. If you love what you do… the results will come!

ISME: What are your long term plans?

SM: I have so many plans! I’m looking at impacting as many people as possible, and this will come through media and communications. We will be starting our video segments through The Female Network. In addition I have my own TV show, which is being produced around entrepreneurship and business success.

Women Entrepreneurs

The aim of The Female Network is to motivate, inspire and educate women in a fun and dynamic environment.

Venue (No Catering)

Venue (Light Coffee Break)

Packages for 3,6,9 & 12 MonthsUpto 25 Delegates.

Packages for 3,6,9 & 12 MonthsUpto 25 Delegates.

Prices Starting From


Venue (Heavy Coffee Break)Packages for 3,6,9 & 12 MonthsUpto 25 Delegates.


AED

Only

Venue (Coffee Break & Lunch)Packages for 3,6,9 & 12 MonthsUpto 25 Delegates. Prices Starting From

AED

Only

AED

Only

AED

Only

FACEBOOK.COM/BVDUBAI

@BVDUBAI

Tel: + 971 4 3613024, Email: [email protected]

TRAVEL & TOURISM ADVERTISING ADVOCATES & LEGAL FINANCIAL CONSULTANTS ISO CERTIFICATION WEB DEVELOPMENT & CONSULTING

HOSPITALITY COMPUTERS FREIGHT FORWARDING & SHIPPING HR CONSULTANTS IMAGE CONSULTANCY SECURITY PROVIDERS

SOCIAL MEDIA CONSULTANTS SOFTWARE INSURANCE PROVIDERS REAL ESTATE INTERIOR AND EXTERIOR DESIGN AUTO RENTALS

Auditing & Advisory

Services

Auditing & Advisory

Services

308, Block "A", Plaza, Oud Metha, Dubai, UAE.Tel: +971 4 3547557Mob: +971 55 4145900Fax: +91 4 3547535PO Box 115144, E-mail: [email protected], www.quantumauditing.com

OUR SERVICES Audit and Assurance � Statutory Audit and Assurance� Internal Audit and Internal Control� Compliance Audit and Procedure� Forensic Audit and Investigations� Information Systems Audit� IFRS Implementation and Convergence� XBRL Reporting Advisory Services� Enterprise Risk Management and Business

Continuity Planning� Business Process Reengineering� Revenue Augmentation� Business Valuation

� Due Diligence� Mergers and Acquisitions� Joint Ventures� Project Advisory� Debt Syndication� Strategic Planning� SME Support Solutions� Wealth Management

Specialized Consulting Services� Company Incorporation � Company Liquidation� Business Process Outsourcing and

Knowledge Process Outsourcing� Human Resource � Intellectual Property

MarketingConsultancy

Auditing & Advisory

Services

Auditing & Advisory

Services

308, Block "A", Plaza, Oud Metha, Dubai, UAE.Tel: +971 4 3547557Mob: +971 55 4145900Fax: +91 4 3547535PO Box 115144, E-mail: [email protected], www.quantumauditing.com

OUR SERVICES Audit and Assurance � Statutory Audit and Assurance� Internal Audit and Internal Control� Compliance Audit and Procedure� Forensic Audit and Investigations� Information Systems Audit� IFRS Implementation and Convergence� XBRL Reporting Advisory Services� Enterprise Risk Management and Business

Continuity Planning� Business Process Reengineering� Revenue Augmentation� Business Valuation

� Due Diligence� Mergers and Acquisitions� Joint Ventures� Project Advisory� Debt Syndication� Strategic Planning� SME Support Solutions� Wealth Management

Specialized Consulting Services� Company Incorporation � Company Liquidation� Business Process Outsourcing and

Knowledge Process Outsourcing� Human Resource � Intellectual Property

MarketingConsultancy

International certifications

Auditing & Advisory

Services

CorporateService

Provider

Coaching& Training

With 25 years experience and through our 28 offices worldwide, The sovereign group has been assisting entrepreneurs, property owners and local residents with their international tax and succession issues since 1987.

Contact us for a free consultation on 04 448 6010 | 800 OFFSHORE www.sovereigngroup.com

Looking to set up a business

in the UAE?

Want to set up an

offshore company? How does sharia lawaffect your property?

Worried about local inheritance laws?

WealthManagement

InteriorDesign

Experience and expertise in a wide range of financial products and services makes it easier to create the right strategy for your circumstances; personal or business.

THROW A COIN IN THE WISHING WELL AND HOPE FOR THE BEST, OR YOU CAN SPEAK TO RUPERT.

PERSONAL SERVICES

- PERSONAL PROTECTION

- SAVINGS & INVESTMENTS

- ESTATE PLANNING

- RETIREMENT PLANNING

CORPORATE SERVICES

- HEALTH INSURANCE

- LIFE & DISABILITY COVER

- GENERAL INSURANCE

- END OF SERVICE BENEFITS

Rupert J Connor | Private [email protected] | +971 50 429 8440

Up close & PersonalInteractive sessions with UAE’s business icons

Strategic alliance partner Title sponsor Gold sponsor

Associate sponsors

Official Television partners Official Print partner

An initiative by

Official Technology partner

Only by invitation to entrepreneurs and senior executives

Yogesh MehtaMD, Petrochem Middle East

October 17, 2012

Osman SultanCEO, du

November 21, 2012

Dr. B.R. ShettyCEO, NMC Group of Companies

Stay tuned. January 2013.

Register free: www.dubai-gbs.com

74


Emirates NBD Global Business Series

1st EditionYogesh MehtaMD, Petrochem

Middle East

17.10.2012

Yogesh Mehta, managing director, Petrochem Middle East, graced the first Emirates NBD Global Business Series with his presence as chief guest.

The concept behind the ENBD GBS is to have personal interactive sessions with iconic business leaders who can lend insights to the business community.

Mehta was felicitated by Dubai SME CEO Abdul Baset Al Janahi, for his contributions to the business community.

He was also felicitated by Vikas Thapar, head of business banking, Emirates NBD and general manager of Emirates Money.

Many facets of Mehta's life were discussed from childhood to his days of being a start-up to becoming a billionaire. He recalled his days of despaire and his journey to becoming a successful entrepreneur. He emphasised that every entrepreneur has to be passionate about what he or she is doing, in order to excel in his or her entrepreneurial journey.

75


Emirates NBD Global Business Series

2nd EditionOsman Sultan

CEO, du

21.11.2012

Calling himself an architect, Sultan is one of those business leaders who are also thought leaders. He sees the change in the technological world a positive development and sees how best he can adapt himself to it. He also predicted the power of the mobile phone, that of becoming a tool of the masses and not in the hands of the wealthy few. He is credited with the rise of du telecom as a successful brand in the market.

He was felicitated by Vikas Thapar, head of business banking, Emirates NBD and general manager of Emirates Money.

Sultan is a true visionary with insightful thoughts on leadership and business acumen.

Sultan gave an up close and personal account of his professional and personal experiences of leaving a war torn country, to working with Fast Telecom, Mobinil and finally, du.

Osman Sultan, CEO, du, was the chief guest at the Emirates NBD Global Business Series.

76


Intelligent Talk

Ben Constance, senior associate in the corporate and commercial group of Taylor Wessing gave a talk on the journey of going public, at the Intelligent Talks by Intelligent SME. The event was held at Business Village, Deira. Going the IPO way requires many considerations and a good understanding of the stock

exchange policies, Constance emphasised. The session focused on reasons for listing, conditions for listing and preparation of a prospectus. He gave an idea of the background for listing and the reasons for listing, while familiarising the audience with the popular jargon used in the listing process.

He emphasised that listing requires fair reorganisation of a company, and the appointment of sponsors, lawyers, accountants, share registers, printers and PR agency. Since this is an expensive proposition, it is beneficial to plan 12-18 months ahead, he added.

78


Intelligent Talk

John Lincoln, vice president - marketing (enterprise segment), gave a talk to business owners on 'Connecting the Dots' in the course of doing business at the Intelligent Talks by Intelligent SME. The event was held in Business Village, Deira. Connect the Dots is also Lincoln's recently published playbook for business owners. The publication is is an everyday pocket guide to surviving and flourishing in a business.

Lincoln gave succinct points on the secrets of hiring and firing, cash flow and sources of funding, marketing to women, pricing strategies and tactics, and sustaining a business, among others. He added that SMEs start up their business and projects based on opportunistic decisions as opposed to strategic decisions, without thinking about sustainability and growth, which may lead to failure.

Lincoln's business knowledge spans from a truly global perspective. He also advised business owners to give special attention to the way their company lent an experience to the consumer. "The experience is the proposition," he added.

80


Events Calendar

Networking opportunitiesImportant business events across the globe

ABU DHABI INTERNATIONAL MOTOR SHOW 2012Date: December 19-23, 2012Venue: ADNECThe Abu Dhabi International Motorshow will feature the latest and best vehicles from around the world, with all the big names in passenger cars and automobile accessories being present.www.admotorshow.com

STEELFAB 2013Date: January 14-17, 2013Venue: Expo Centre, Sharjah

SteelFab is the most-attended and highly anticipated trade fair that caters to the regional metal working, metal-manufacturing and steel fabrication industry.www.steelfabme.com

INTERSEC DUBAI 2013Date: January 15-17, 2013Venue: Dubai International Convention and Exhibition Centre

Interest in new technical solutions is growing to a greater extent than previously experienced, releasing tremendous sales and turnover potential. Intersec is of unique value to all the target groups in the security and safety industry. www.intersecexpo.com

WORLD FUTURE ENERGY SUMMITDate: January 15-17, 2013Venue: ADNEC

The World Future Energy Summit (WFES) 2013 will bring together global leaders in policy, technology and business to discuss the state of the art, develop new ways of thinking and shape the future of renewable energy. www.worldfutureenergysummit.com

SIGN AND GRAPHIC IMAGING MIDDLE EAST 2013Date: January 20-22, 2013

Venue: Dubai World Trade Centre

Sign and Graphic Imaging Middle East (SGI) exhibition is the most anticipated event 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 in one ideal venue exhibitors from across the UAE, Egypt, Lebanon, Iran, Iraq, India, Pakistan, East Africa, and other countries.www.signmiddleeast.com

GULF ECO 2013Date: January 20-22, 2013Venue: Oman International Exhibition Centre, Oman

Equipped with the latest cutting edge technologies, solutions and effective services, the event will serve as a platform for all industry sectors to lay emphasis on their “eco-friendly” campaigns by showcasing their products, services or green initiatives.www.gulfeco.net

OFFSHORE MIDDLE EASTDate: January 21-23, 2013Venue: Qatar National Convention Centre, Doha

With the Middle East offshore industry rapidly growing, Offshore Middle East Conference & Exhibition plays an important role in the expanding market and provides an annual forum dedicated to the advancement of the offshore industry, whilst addressing technological challenges associated with safely and cost effectively developing subsea resources.www.offshoremiddleeast.com

AIRCRAFT INTERIORS MIDDLE EASTDate: January 22-23, 2013Venue: Dubai World Trade Centre

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.www.aime.aero

ARAB HEALTHDate: January 28-31, 2013Venue: Dubai International Convention & Exhibition Centre

Arab Health, now in its 38th year, is one of the world's longest running healthcare exhibition and congress. Interact with experts from the healthcare industry, learn about cutting edge technology showcased and discover the latest product demonstrations.www.arabhealthonline.com

BRIDE ABU DHABIDate: January 30-February 2, 2013Venue: ADNEC

With collections from haute couture designers to boutique ranges, Bride Abu Dhabi is a haven that caters to bridal fashion in one location.www.thebrideshow.com

MIDDLE EAST RAIL 2013Date: February 5-7, 2013Venue: Dubai World Trade Centre

Middle East Rail is the region’s largest rail exhibition and conference attracting government, rail operators, transport authorities and world-class solution providers.www.terrapinn.com

MIDDLE EAST ELECTRICITYDate: February 17-19, 2013Venue: Dubai International Convention & Exhibition Centre

Middle East Electricity is positioned as the meeting place for international companies to showcase their products and services for the power, lighting, renewable and nuclear sectors, to a proven audience of key decision makers from over 100 countries.www.middleeastelectricity.com

Intelligent SME-Exe plan-190x260-E.indd 1 11/14/12 5:56 PM

82


The many hues of entrepreneursUtpal Bhattacharya notes that it is not necessary for a successful businessman to be a team player. He needs good instincts, though.

Column

Summing up

In my career, spanning over two decades of journalism across countries, I have interviewed many successful business leaders,

and have also had the opportunity to meet a few that could not deliver on the promise they showed in their initial years. There are many reasons that separate these two breeds of businessmen, but I am not going to discuss them in this column, as it requires a lot more than just 600 words to do justice to such a topic. I am just going to draw attention to a couple of remarkable insights that I got over the years interacting with businessmen of all hues. In the last decade, I discovered that I was advising a genius, who continues toheadamultibilliondollarfinancialgiant. He was a much smaller entity with a few core team members, who were highly skillful in their own areas, whenIfirststartedtoconsultthem.However,asthefirmgrewbigger,theteam could not keep pace with their genius of a leader. Forthefirsttime,Irealisedthatnot all successful businessmen were good leaders. As his team members fell away on the roadside, new members

joined in, and some of them left again. I realised that this leader was a loner. I have concluded that his institution will remain as long as he is around, and then gradually fade away, unless something drastic changes in the mindset of the leadership. I have always wanted to write a book about another entrepreneur, who I have known for more than 20 years. He is a conglomerate today in his own right, and the one thing that has always amazed me is his ability to identify a potential entrepreneur. In the many years that he has been doing business, numerous managers have left him, some to set up their own firms.Hefollowedanumberofthesemanagers as a founding shareholder in

their start-up companies. He created many, many successful entrepreneurs, while his personal wealth grew more than he could have achieved, if he had tried to do it on his own. He is a great team player, unlike the loner mentioned above, and his institutions are likely to continue to do well without him. Lack of success could result from any number of reasons, but a big let down in business could come from lack of instinct. I know of an investor, who was brilliant many years back, when I methimforthefirsttime. In the later years he stopped heeding to his instincts. I saw him increasingly getting obsessed with numbers, and over analysing them. It was his belief in these numbers and business plans, more than his instincts, that got him into big trouble when recession hit us last decade: he had invested his and others’ money in a very large project, based on numbers and the people behind the project, but without considering the special circumstances. The project is in shambles today, as the numbers never stacked up in these last few years, and will probably not for some more time. Hopefully, he will get back to trusting his instincts like in the past, when he started off.

Lack of success could result from any number of reasons, but a big let down in business could come from lack of instinct.

BBL_Serv_26x19_TheIntellingentSME_O.ai 12/11/12 5:58:59 PM

Documents

The Intelligent SME: Issue 11