march 2013 vol. 2 - no. 2 enterprise · mishal kanoo: “your brain is your biggest weapon”...

News update

>> UAE annual inflation drops to 0.43% in Jan on lower housing prices

>> Expo 2020: Infrastructure produces rich returns for businesses

>> Number of new firms up in Dubai

>> Dubai Chamber seeks to revise franchising law

>> Foreigners spend over AED2.16bn during DSF

>> Dubai airport starts 2013 with new passenger record

>> GCC private education sector represents 14% of USD36bn market

>> Dubai’s property market set to witness USD1bn influx

>> Is the sun setting on gold?

>> Saudi spending poised to touch SAR1trn this year

Currency conundrum: Handling forex risk in your business

Building on a firm foundation: GCC cement and steel

Like global real estate, Dubai property returns to form

Mishal Kanoo: “Your brain is your biggest weapon”

>> Read more >> Read more>> Read more >> Read more >> Read more

MARCH 2013 Vol. 2 - No. 2

enterprise A NEWSLETTER FROMBUSINESS BANKING

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Currency conundrum: Handling forex risk in your businessSmall businesses and high net worth individuals find that currency trading is lucrative, but look for ways to minimize risk. By Dirk Flaherty

Dubai-based Aruba Forwarding LLC, with an annual turnover of USD 12 million, imports fast-moving consumer goods from more than 10 countries worldwide, and re-exports them to another three or four nations. Its largest revenue risk comes from foreign exchange fluctuations.

“We pay in multiple currencies and earn in multiple currencies,” Aruba general manager Faris Younes said. “We have two people dedicated to tracking currency trends and making currency purchases and sales at just the right time so as to ensure we do not lose money between the buying of the goods and selling them.”

Dubai being the re-export hub of not just the region but also the world, it hosts several small and medium-sized businesses for which currency is a large concern. The entrepreneur has little time available from growing the business, forcing them to employ forex geeks who spend their days and nights tracking the currency “pairs” relevant to their geographical business spread.

A currency pair is a means of determining the value of a particular currency against another. The first currency of a currency pair is called the “base currency”, and the second is the “quote currency”. The currency pair shows how much of the quote currency is needed to purchase one unit of the base currency.

For instance, if the USD/EUR currency pair is quoted as being USD/EUR = 1.5 and you purchase the pair, this means that for every 1.5 euros that you sell, you purchase (receive) USD 1. If you sold the currency pair, you would receive EUR 1.5 euros for every USD you sell. The inverse of the currency quote is EUR/USD, and the corresponding price would be EUR/USD = 0.667, meaning that USD 0.667 would buy EUR 1.

“Not only is the learning curve pretty steep, if a company want to stay ahead of the currency market, but it is also pretty expensive to hire effective and knowledgeable people to do this for you,”

said a trader at a Dubai-based currency house.

“My margins on re-export are already pretty thin. When I add the cost of employing people solely to track currency trends, they become even thinner,” Younes added.

Aruba’s two forex geeks often use algorithms to track pairs, handle margins, effect rollovers and bet on spreads, futures and options. Currency trading being a highly dynamic market, sometimes they come out ahead of the curve and at other times they crash and burn.

“Clearly, there is an element of risk in the trillion-dollar global forex trading market,” the trader said. “If currency trading is not your primary business, where risk is factored into your activity, it can create situations where it actually has a negative impact on your balance sheet.”

But affordable alternatives to doing your own currency management are few and far between.

“Affordability is a secondary concern,” the trader said. “The primary concern is whether you want to add currency risk to your existing core business risk. My advice would be to let the professionals handle it.”

Sanjay Haldar, a finance professional employed at an investment bank, says he trades foreign exchange but refuses to do it himself. Haldar, who has been designated as

a “high net worth individual” by his bank, believes that there is money to be made in trading currency, to supplement his already considerable salary income.

“But currency is not my core strength. I outsource it to professionals, to whom I give clear parameters concerning my risk appetite and purpose of trading, and let them handle it,” he said, adding that his consultants use a mix of long and short positions as well as cross trades.

Haldar believes currency and equity trades on his account are best left to professional market watchers, because that leaves him free to focus on his core strengths, which he is quick to add “do not include staring at a screen all day and sometimes at night just to track my trades”.

Currency trading can be used in multiple ways. You can be a Haldar and supplement your income. You can be a Younes and reduce currency exposure in your business. Or you can use it as a hedge for other investments. The bottom line for most non-core forex traders is simple: it is not an easy market to become acquainted with, the learning curve is steep, and the risk of losses increases if you do not devote significant time and attention to it.© Zawya

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OPPORTUNITY

Building on a firm foundation: GCC cement and steel By Jude Hardy

A slew of upcoming mega-scale projects has breathed new life into the GCC’s construction sector, according to industry data compiled by Zawya. Five years after the real estate bubble burst, the region appears to be entering a new phase of development boom, spurred by hydrocarbon giants Saudi Arabia, Qatar and the UAE.

So why are these projects good news for small and medium-sized businesses?

“First of all, when people look at cement and steel in terms of construction, in the typical building 33% of the building cost is in the materials,” Stuart Curtis, group

managing director, the Links Group, said.

“So, there are a number of initiatives that we have seen, where start-ups and entrepreneurs can be involved in that sector. We have seen everything from people who are doing specialist tiles, to floor covering protection and a number of those have been very successful,” he said.

Overall, the construction pipeline across the GCC is valued at USD 1.8 trillion, according to Alpen Capital’s 2012 ‘GCC Construction Industry’ report. The sector also contributed 5.4% of the overall GDP for the entire GCC region. As a percentage of GDP for the UAE, the sector increased from 8.9% in 2006 to 11.5% in 2010.

Key drivers for this sector include the willingness of GCC governments to develop non-oil sectors – including construction and real estate. An expanding population and increased urbanization will also keep residential demand high, as well as the need for commercial office properties. The region’s 16 million expatriates, who wish to own their own homes, will likely drive housing demand as well.

“What drives the industry right now is not what drove the industry three years ago. It was very much a market that was sold off-plan three or four years ago. Now the demand is for something that people can touch and feel. They want something that

is quality that they can pay for, that they can afford. So the demand here right now – not just in the UAE but across the GCC – is for quality affordable housing,” Curtis continued.

“The opportunities for SMEs in that area are from building material supply to actual construction companies themselves. We as an organization are continually setting up construction companies; in fact 40% of our base is construction or construction-related companies. And we are not seeing any slowdown in that sector, in fact we are seeing more joint sectors in that area,” he said.

However, there are some negative aspects related to the sector, which smaller businesses need to watch out for.

According to the Alpen Capital report, oversupply is still an issue facing the GCC construction and real estate sector – which in the past has led to a number of project cancellations. Weak investor sentiment will also affect the sector, the report states: ‘Investor sentiment is expected to be weak in the near-term due to tightening credit conditions. Numerous large projects were cancelled across the GCC in 2010 and 2011 due to weak investor sentiment and lack of funds’.

Increased competition and fragmentation is also a factor to consider: ‘The increased

competition within the sector is likely to result in competitive bidding by the players which is expected to drive down the margins of construction companies further’, the report states.

The labor-intensive nature of the sector also means high attrition rates amongst expatriate labor workforce ‘remains a hurdle, as the skilled expatriate workers are drawn towards their home countries due to better job opportunities. This is likely to act as a major barrier for the labor-intensive construction sector’, the report reads.

For Curtis, however, another aspect that smaller companies need to watch out for is when they’re paid for the work they’ve completed.

“You are in a very difficult part of the food chain. So you are going; developer, sub-contractor, contractor and down, so the SME space goes further and further down from there. So, in that sector, you need to be very, very careful how you get paid… that is the most important thing there,” he concluded.© Zawya



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MARKETS UPDATE

Global equity shrugs off the sequesterGlobal markets shrugged off the US sequester fight, close elections in Italy and even China’s signal that it is pulling back infrastructure spending, leaving many analysts to wonder whether financial markets’ rally is coming to an end.

The Dow Jones Index hit record levels, while the Standard & Poor’s index inched closer to its own record on March 6, as investors ploughed funds into the rally and traders repeated the newly-popular investment philosophy – TINA: There Is No Alternative.

Despite concerns of overheating, the S&P 500 Index is trading at 13.6 times estimated 12-month earnings, compared to 14.9 times in October 2007 when the index reached an all-time high, according to Reuters data.

An improved US job market, a fast-growing services sector and the US Federal Reserve’s continued support of the economy has largely offset the embarrassing political fight between the White House and Congress on sequester, or automatic cuts that kicked in as the two parties failed to agree on spending cuts.

Meanwhile, Fed chairman Ben Bernanke has argued that the benefits of keeping interest rates low outweigh the risks.

“While the recent crisis is vivid testament to

the costs of ill-judged risk-taking, we must also be aware of constraints posed by the present state of the economy,” Bernanke said in a speech on March 1.

“In light of the moderate pace of the recovery and the continued high level of economic slack, dialing back accommodation with the goal of deterring excessive risk-taking in some areas poses its own risks to growth... Indeed… a premature removal of accommodation could, by slowing the economy, perversely serve to extend the period of low long-term rates.”

Still, it is unclear whether China’s decision to cool off on infrastructure spending will start weighing on global markets. Domestic spending on affordable housing is set to decline from a 2012 high as Beijing scales back construction targets. Certain transport projects will see growth, but moderation sets the overall tone, analysts note.

The drop in Chinese activity could also lower oil prices, which would hurt Gulf market sentiment, but for now the momentum is

largely positive.

The Dubai market has retreated after rising 18.5% year-to-date. It currently stands 15.5% higher than the start of the year and remains the best performing market in the region. Abu Dhabi (14.1%) and Kuwait (10.5%) have also posted double-digit growth year-to-date, suggesting a region-wide rally that continues to take root.

Kuwait’s price-to-earning ratio is the highest in the region at 16.9 times earnings, but the UAE markets stand at 10.6, still lower than most other regional markets, suggesting more headroom for growth.

Currency

The euro fell against the dollar as the European Central Bank was widely expected to maintain interest rates. In fact, some analysts believe the ECB could cut interest rates in the future to recharge the lackluster Eurozone. The euro has consistently fallen below USD 1.30 this year.

The dollar also gained against the Japanese

yen and was at the 94.10 level. The British sterling has fallen nearly 7.5% this year against the dollar and stood at USD 1.5032 on March 6 as the American greenback emerged as the strongest currency this year.

Oil

Brent crude is down a mere 0.7% for the year, at USD 111.18 per barrel, even after the death of Venezuela’s Hugo Chavez, president of OPEC’s sixth-largest crude producer. Most analysts predict that instability in the Latin American country would only serve to raise crude prices and call upon Saudi spare capacity, benefiting the Gulf region.

Gold

Gold has fallen 6% year-to-date and currently languishes at USD 1,576.8 per ounce. Market observers believe the sun may have set on the yellow metal for now.© Zawya


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KSE Also Rises Market Mcap % Change P/E (x) P/B(x) D/Yld(%) ROE(%) USD Bn YTD 13E 12A 12A 12A

Saudi 373.2 2.9 11.1 1.8 4 15.3Abu Dhabi 78.98 14.1 9.4 1.16 3.88 11.87Dubai 39.79 15.5 12.08 0.88 3.38 6.27 Kuwait 98.5 10.5 16.9 1.5 2.2 7.4 Qatar 126.8 1.6 11.6 1.7 3 13.6 Bahrain 16.2 3 10.3 0.8 3.5 7.5 Oman 20.6 4.1 8.8 1.6 3.2 16.8 GCC 753 3.1 11.1 1.5 3.3 12.5

Source: Zawya, Reuters, as at March 6, 2013

GULF MARKETS IN 2013 (YTD)


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Like global real estate, Dubai property returns to form After being in the doldrums for a few years, the real estate sector in most emerging and developed markets is showing signs of a recovery.

Much of the leveraged investments that had pumped up real estate prices prior to the global financial crisis have been cleansed from the system and an environment of low interest rates is bringing investors back to the property markets.

Real estate consultant Jones Lang LaSalle expects investments of up to USD 500 billion in real estate globally in 2013 – the highest investment level since 2007.

For high net-worth individuals in the Gulf, which are shrewd real estate investors, the US commercial property sector offers the strongest upside potential, especially as it is expected to grow 15%-20% during the year.

“In Europe, we anticipate that this year will see a similar level of investor activity to last year but with upside potential, particularly from the secondary markets, which are starting to see greater investor interest given their more attractive yields,” said JLL.

“Investment volumes in Asia Pacific are forecast to increase by around 15%, with Asian sovereign wealth funds and pension funds deploying more capital in their home

region.”

Closer to home, Dubai’s real estate market is also coming in from the cold after a few years of hibernation.

The emirate’s real estate market continues to experience higher levels of residential sales and the prime market is now well into an upturn, notes JLL.

“The recovery in prices is most pronounced in the villa sector (where prices increased 24% in 2012, compared to 12% in the apartment sector). Rents have also started to recover (7% for villas and 6% for apartments in 2012). However, the improvement in prices is largely confined to prime established locations, with

less established locations seeing little or no growth in values.”

Buoyed by the business optimism, Emaar Properties – the emirate’s flagship real estate company – announced it will launch new projects such as the Dubai Modern Art Museum and Opera House District.

The company delivered 31,230 residential units apart from two million square feet of commercial space, as the real estate market picked up last year.

Emaar says its business strategy includes “taking advantage of the recent buoyancy in Dubai’s real estate market by developing new iconic projects.”

Still, it needs to be put in perspective, as vacancies in Dubai’s prime central business district (CBD) remain high at around 31%.

“Non-CBD locations have even higher vacancy levels, as much as 80% in some sub-markets,” said JLL. “While the overall office market

continues to be tenant-favorable, demand is still concentrated on just a few buildings/locations, and the range of prime buildings in single-ownership is more restricted than the overall vacancy figures would suggest.”

Meanwhile, the emirate’s hospitality property market is also picking up, primarily as instability in other lodging markets in the Middle East and Africa (MENA) flare up, said Ernst & Young in a report on the global travel market.

“Continued unrest in countries such as Egypt, Libya and Syria has enabled leisure destinations, such as Dubai, to benefit from the redirected lodging demand…. An increase in tourism from Chinese leisure travelers is anticipated to boost room rates in popular tourist destinations, such as Dubai, in 2013.”

The emirate ended 2012 with an overall occupancy rate at 83.3%. In addition, RevPAR increased by 6.4% and average room rate also increased by 6.3%, said E&Y.

Analysts expect the global real estate market to pick up even further in the second half of the year as the clouds of economic doom disappear and businesses are more confident of the future. And Dubai is poised to get a lift as the high tide comes in.© Zawya

REALTY CHECK


National GDP National

Investment Volumes

Capital Value Change

Prime Yield Yield Gap Rental Change Net Absorption Vacancy Rate Supply Pipeline

Dubai 302% 0.00% 8.30% na 0.00% 4.90% 31.00% 20.30%Frankfurt -‐1% 0.00% 4.80% 350 0.00% 2.10% 11.90% 3.60%Hong Kong 2% 2.00% 3.00% 232 -‐11.10% 1.90% 3.80% 2.80%London -‐1% 0.00% 4.00% 219 0.00% 0.50% 6.10% 7.20%Moscow -‐7% -‐4.20% 9.00% 215 -‐4.20% 5.70% 13.50% 15.70%Mumbai 70% 2.70% 10.10% 205 1.90% 9.90% 24.10% 17.70%New York 11% -‐6.00% 4.70% 295 2.80% -‐0.80% 11.20% 1.80%Paris -‐8% -‐2.10% 4.50% 251 -‐7.20% 1.10% 6.80% 3.70%Sao Paulo -‐36% 26.40% 9.50% na 20.10% 8.60% 15.00% 31.90%Shanghai -‐26% 0.40% 6.00% 238 2.20% 13.90% 13.90% 38.10%Singapore -‐8% 0.80% 3.40% 214 -‐9.80% 8.30% 8.40% 7.00%Sydney 6% 2.50% 6.90% 359 -‐1.80% 0.70% 8.90% 1.60%Tokyo 6% 2.80% 3.60% 281 2.80% 6.90% 4.10% 15.50%

Global Real Estate Health MonitorReal Estate Investment Markets Real Estate Occupier Markets

Source: Jones Lang La Salle, real estate data as at end of Q4, 2012.

Currency 2012% 2011%Change in % points

2012 2011 Change 2012 2011 Change

Dubai–Beach AED 83 81 2 1,433 1,364 5.10% 1,194 1,109 7.70%

Dubai–City AED 83 84 -‐1 820 772 6.30% 685 649 5.60%

Dubai–Overall AED 83.6 83.3 0.3 1,048 985 6.40% 876 820 6.80%

KEY TO GROWTH: DUBAI HOTELS

Occupancy Average Room Rates Room Yield

Source: Ernst & Young


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NEWS UPDATES

UAE annual inflation drops to 0.43% in Jan on lower housing pricesAnnual inflation in the United Arab Emirates fell slightly to 0.43% in January, from 0.66% in December, driven by mainly by a decrease in the housing component, the country’s national bureau of statistics said in an emailed statement.

A rise in the food, beverages and tobacco, and transportation prices were mitigated by housing prices, which dropped a 1.64% on year. The housing category makes up nearly 40% of the U.A.E.’s overall Consumer Price Index. – Zawya Dow Jones

Expo 2020: Infrastructure produces rich returns for businessesDubai’s focus on competitiveness and sustained investment in infrastructure has produced rich returns for the businesses. Various business setups, growing links to new markets and growth options in the emirate are attracting more investors to leverage these advantages.

With buoyant and growing sectors of the global economy, a resilient economy and an infrastructure that is second to none, the UAE is arguably the most competitive nation bidding for Expo 2020. – Gulf News

Number of new firms up in Dubai The Department of Economic Development (DED) witnessed a 9% increase in licenses issued in January 2013 compared to the same month of 2012 as economic activity in Dubai remained on an upward curve. While 1,310 licenses were issued in January 2012, 1,428 were issued in January 2013 reflecting increasing investor confidence in Dubai.

The commercial sector saw a 69% increase in the number of licenses, the highest among all sectors in January 2013, while the professional sector accounted for a 28% rise, followed by the tourism and industrial sectors at 2% and 1% respectively. – Emirates 247

Dubai Chamber seeks to revise franchising lawDubai Chamber of Commerce and Industry attempts several endeavors to revise the franchising law with the aim of easing business and protecting brands and investors in the UAE market.

With the participation of leading legal firms, a workshop reviewed and discussed UAE franchising laws, setting up a franchise and the challenges and risks associated with franchising and how to mitigate them.

The Dubai Chamber felt that modifying certain aspects in the franchising law will enhance the business of the local and international brands in the market as well as give more flexibility to organize business perspectives under proper legislative umbrella. – Gulf News



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Foreigners spend over AED2.16bn during DSFInternational visitors to the UAE spent over USD 589 million (AED 2.16 billion) on their Visa cards during the Dubai Shopping Festival (DSF) 2013, registering a 19% year-on-year growth over DSF 2012, according to data issued by Visa Inc., the world’s largest retail electronic payments networks and a lead sponsor of the region’s premier shopping event.

The results collected by the company’s VisaVue Travel data service indicated the month-long retail and shopping extravaganza got off to an excellent start, with spending on overseas-issued Visa cards in the first week of DSF touching USD 153.35 million. The Friday of the first weekend of the sale also witnessed record spending, with over USD 25 million spent on overseas Visa cards. – Emirates 247

Dubai airport starts 2013 with new passenger record Dubai International saw more than 5.5 million passengers throughput in January 2013, setting a record for the maximum passengers in a single month, Dubai Airports said in a statement.

The airports body said the boost came on the back of holiday traffic in January, which is also the month Dubai Shopping Festival was held.

Passenger traffic rose 14.6% to 5,559,760 in January 2013, up from 4,852,139 in the same month in 2012, according to Dubai Airport’s traffic report. Whereas, aircraft movements totaled 31,332 in January 2013, climbing 5.6% from the 29,680 movements recorded in January 2012. – Gulf News.

GCC private education sector represents 14% of USD36bn marketEducation sector is one of the focus areas for the GCC governments with a growing share spending being channeled to build new schools, colleges, and universities, Kuwait Finance House report said.

According to the report, sector data shows that the total students in GCC region is expected to grow by 1.8% to reach 11.3 million in 2020 from 9.5 million in 2010. – Saudi Gazette

Dubai’s property market set to witness USD1bn influxDubai’s real estate market, which is witnessing a resurgence this year, will get another major shot in the arm when the USD 1 billion Investment Corporation of Dubai (ICD)-Brookfield Dubai Real Estate Fund gets underway.

A move to start the fund was made with ICD and Brookfield Asset Management, the co-promoters of the fund, named Douglas Kirkman, Senior Vice-President of the Brookfield Property Group, as Chief Executive Officer of ICD-Brookfield Management Limited, the firm that will manage the fund. – Emirates 247

NEWS UPDATES



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Is the sun setting on gold?After climbing 500% in a decade, perhaps it is time for gold investors to accept that the yellow metal is a spent force.

The secular bull cycle that thrust gold into the limelight as the world’s most rewarding investment is finally waning and the metal is finally taking a well-deserved breather, some analysts believe.

Gold is down 6.5% year to date and there is a good chance this could be the year it records its first annual decline in more than a decade. –alifarabia.com

Saudi spending poised to touch SAR1trn this year Investment in infrastructure projects could provide a significant opportunity for investors in Saudi Arabia, as government spending is set to touch SAR 1 trillion (USD 266.6 billion) in 2013, according to Emirates NBD Wealth Management, a part of the Middle East’s leading bank.

Speaking at an investor road show in Riyadh, Mark McFarland, chief investment strategist, Emirates NBD Wealth Management, said: “Across the GCC, government spending will be a key driver of GDP growth in 2013, as regional economies focus on upgrading their physical infrastructure and social facilities in line with world-class standards. This is particularly true of Saudi Arabia, where public spending is set to increase by 15% in 2013 to touch SAR 1 trillion.”.

© Zawya

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Truth: He dreams of his business going places

Reality: Business Financing Solutions to empower his dreams

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Mishal Kanoo: “Your brain is your biggest weapon”

On growing up

As I was growing up I was a spoilt brat. I believed that the world revolved around my own little stupid head. I discovered quickly from my mother that it did not. I remember one specific moment: I was seven years old where my mother taught me one of the best lessons I’ve ever learnt. Our cook had put a bit more spice than I could tolerate, so I threw a tantrum. I called the cook and said a lot of things; my mother observed quietly and allowed me to say what I wanted to say.

Then later she took me to this place behind the Jumeirah mosque, where there used to be old houses occupied by less well-to-do people who battled economic conditions and you could see how poor they were. My mother, before we went there, took me to Satwa where we bought crates of oranges and apples.

She made me give bags of apples and orange myself to those people. The moment they opened the door I could see straight inside the house and the type of people living there. It struck me at that tender age of seven that I was a spoilt brat and I understood clearly that there are people who were underprivileged. And If I don’t do something in my life then I am no

better off than they are today. So, that was one of the best lessons I had growing up.

On education

Well, you know, it’s simple: we train monkeys. When people are trained, they are taught to do a repetitive action. Let aside being cognitive or creative, they are just doing a repetitive action and if we can do that with a monkey we can do that with a person. On the other hand if we educate a person, we are telling that person ‘don’t repeat what I am doing but understand what I’m doing; then if you build on it and do something better than me so much the better.’ Today it’s become more a norm to engage people in repetitive things; we do not want to engage their minds.

Your brain is your biggest weapon, for it’s the moment when you think – that’s when you threaten people. People who get threatened by your thoughts and ideas are those people who deserve to go. I want more people to challenge me and argue with me and to vest me because at the end of the day you raise my bar.

On managing

The only thing I will credit myself with doing is empowering people who are smart, intelligent, able and capable to reach their full potential rather than me taking credit for it. I have seen in this part of the world, people are more than happy to take credit for other peoples’ work and I find this despicable. The idea to help people must resonate in our heads. We must

credit others for doing something or thinking, facilitating their growth.

On family business

There are many issues you will encounter in a family business. I think the biggest problem is succession planning and most likely it’s a plan to fail; there is no succession planning. Most families fail to plan. Within the Islamic society we go by the Sharia law in which God has talked about ownership and not management. I can’t force my son to have a football club just because I want that for him. When it comes to succession planning I shouldn’t plan to have someone succeed me who fits ‘my mindset’ but rather what they will need in the future.

Then there is conflict management. As long as there are humans, there will always be fights.

On greed

If I give you charity, I pity you, I’m saying you’re not good enough. I give you the facilities and say use your internal drive and do something with them – you don’t owe me after that. You will feel good because you have achieved something. Hence, I want you to have that greed and want more; not in a malicious way but in a productive way. I want people to have that internal heat and drive. Get up, do something.

On SMEs

Most people have the impression that what SMEs need is finance – that’s a factor. While money can be obtained from your friends or family, the need of the hour is education,

support mentoring and people to help you move. The worst part is we talk a beautiful game – ‘we support SMEs’ – really? Show me. A big company looks at an SME doing well and says I will set up a competitor in that segment and milk that SME to death. Firstly, we need to protect the SMEs. The whole purpose of creating these SMEs is so that they can breathe and the more they breathe the better for the economy. One of the reasons why you have entrepreneurial spirit in other countries is because you have government protection for these things, which we don’t have.

Another important thing is when you reach a medium size you need to have a venue to grow overall that helps you go public. Like other countries we need to have a two-tier public listing system. The primary one has the big boys and the secondary one is where all the medium enterprises exist.

Watch out forthe next Global Business Series event featuring Mohammed Al Fahim, chief executive of Paris Group, on 27 March 2013 at the Raffles Ballroom, Raffles

Hotel. For an opportunity to attend this exciting and informative evening, please register on



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Introducing Investment Week at our

Sharjah Business Banking Centre

Visit us to get a detailed analysis of your personal and business investment objectives. Take advantage of this special investment session with our

team of wealth advisors and your Relationship Manager.

Get key market information and discuss investment strategies for greater financial success with our range of investment products and solutions

Date

18th to 20th of March 2013

Venue

Emirates NBD Business Banking Sharjah centre,

Opposite Citibank, King Abdul Aziz Road, Sharjah

Time

8.30am to 4pm

RSVP

SMS ’BIW’ to 4453

or

email [email protected]



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