the intelligent sme - issue 13

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Issue: 13

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Gives your business an unfair advantage

April - May 2013

No.1 Platform for Small & Medium EnterprisesMeet UAE’s business icons once a month

The simple man of luxury

Mishal Kanoo

A 360-degree view of the man behind Paris Gallery- Mohammed Abdul Rahim Al Fahim

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Mohammed Abdul Rahim Al FahimCEO, Paris Gallery Group

“Most universities in the region are pro�t ventures”

deputy chairman, Kanoo Group of Companies

ContentsApril - May, 2013

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Mishal KanooThe ever pragmatic Mishal Kanoo, deputy chairman, Kanoo Group of Companies shared his priceless philosophies at the Emirates NBD Global Business series.

11 Rare & Fabulous High end luxury products for CEOs and

decision makers.

16 Creating new spaces Carla Conte, Founder and CEO of Brand

Creative, gives an insight into her interior designing business and strategic outlook.

32 Announcements What has been happening in the business

marketplace? Here are some updates that you might have missed.

40 Zomato.com striding across the globe

Pankaj Chadda, co-founder and COO, Zomato.com, talks to ISME about the success of his venture.

46 Five ways to boost your savings

Phil Bedford takes a through look at how a company can increase its credibility and reputation.

48 Read the fine print Do not skip reading the terms and

conditions when buying insurance, advices Sandi Saxena.

50 Insights to grow your business

Simon Hodges, returns with some more innovative ways to grow your business.

52 SMEs effective marketing: Where to start?

Zed Ayesh gives a thorough run-down of effective marketing practices.

Supported by

Be a Connector

The simple man of luxury

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56 Termites and our personal brand

Phil Bedford takes a through look, at how a company can increase its credibility and reputation with the right ingredients.

58 Why corporate governance? John Merrigan takes an in depth look at

the benefits of corporate governance.

60 7 corporate governance mistakes that trip up SMEs

Mark Fisher lists out the seven pitfalls that SME’s commit, that result in their failure.

62 Fit CEO Take a look at how to 'beat the heat' this

summer with some top tips from VLCC.

64 Intellectual property and sustainable business growth

Katie Withers explains, how an organisation can leverage on a patent or copyright.

66 The power of passion in your organisation

Consider restructuring your vision statement on a regular basis writes Michael J. Tolan .

At the Emirates NBD Global Business Series, Mohammed Abdul Rahim Al Fahim, CEO, Paris Gallery Group, spoke about the simplicities of his life in contrast to the luxurious family-owned business that he runs.

Gives your business an unfair advantage

Small and medium enterprises (SMEs) have some cause to celebrate in the UAE, as more lenders are coming forward to take risk on them. The country’s financial services industry is becoming ever more proactive in seeking out the better SMEs to give them loans. We can cite recent examples of Virtuzone and the United National Bank, which have announced asset products targeting the SMEs, and these institutions are only joining some of their peers..

Beyond capital, SMEs are finding help from unexpected quarters like du, which has taken an initiative to boost the digital presence of the SMEs in the UAE with the launch of their Entrepreneur Plan, which comes bundled with a smartphone, data, 10 customisable e-mail id’s and a website builder template from the Microsoft cloud. Our sources say that SMEs love the plan, as it just helps them boost their business. Some more good news with Dubai SME’s continued efforts towards fostering growth in the sector having moved up a notch. The government-body has signed a MoU with two more world-renowned firms: financial experts Deloitte and insurance brokers Nexus, to offer a financial diagnostic assessment to all members of the Dubai SME100.

At SPI, our own Emirates NBD Global Business Series is attracting even more attention now with many more CEOs expressing their interest to be part of it. In February, Mishal Kanoo, deputy chairman, Kanoo Group, was our guest of honour, and he shared his views on a wide range of topics at the Ritz Carlton DIFC. We also hosted Mohammed Abdul Rahim Al Fahim, CEO, Paris Gallery Group, in March. The group’s CEO is known to be a strong advocate of corporate governance and he shared with our audience how these standards were applied in his company. Corporate governance is one of the underlying themes in this edition of the Intelligent SME. So, don’t miss out on reading about some of the important issues raised by our experts on corporate governance in this issue.

You may be aware that we have launched another event, called the Intelligent Workshops. The workshops conducted for SMEs across the region in February and April have been well received in the business community.

Finally, a new wave of change has arrived at SPI publishing with a revamped editorial team taking-up from where Sandhya left off. In a bid to make ISME more reader friendly, a few categories have been renamed: ‘Open Forum’ has been renamed to ‘From the Entrepreneur,’ while ‘Out and About’ is now ‘Get Informed’. We hope these subtle changes result in a better reading experience.

Nikhil Pereira

Editor’s NoteSPI Groupwww.theintelligentsme.com www.spi-holding.comFollow us on twitter: @intelligentsmeFacebook: facebook.com/theintelligentsme

Publisher & CEO Shantanu A.P.Account Director Vijay G.Asst. Editor Nikhil [email protected]

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Asst. Editor-Digital Jochebed MenonConsulting Editor Utpal BhattacharyaExpert ContributorsCarla ConteMark FisherJohn MerriganKatie WithersMichael J. TolanPhil BedfordRupert ConnorSandi SaksenaSimon HodgesZed Ayesh

Art Director Aneesh Varghese

PhotographersShibu ParameswaranArzai ZafarNaila Abdul Karim

Response and communications

Response Executive Evelyn V.B.MIS Executive Yolanda Pedemonte

Distribution Department

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DisclaimerDisclaimer: 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.

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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

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April - May 2013Intelligent SME

Rare & Fabulous

Parmigiani launches crystal timepiece Designed with the Middle East’s highly

discerning taste for luxury and beauty in mind, luxury Swiss watch maker

Parmigiani Fleurier announced the regional launch of the glittering 15 Days objects of art, a crystal celebration of precious time crafted in collaboration with Lalique. The timepieces are a masterly representation of the partnership between Parmigiani Fleurier and the designers of crystalware Lalique. The 15 Days timepieces are true collectors’ items, the latest in the list of exquisite objects of art produced by the craftsmen at Parmigiani Fleurier. Each piece is encased in a silver plated cabinet, 142 mm high, 80 mm deep and 96 mm wide. The 132-component movement comes with a patented power reserve of 15 days and possesses double key winding and time-setting. The entire piece is set off by Lalique’s handmade glass crystals. “The 15 Days timepieces are a triumph of creativity and precision and a celebration of our cooperation with Lalique,” said Jean-Marc Jacot CEO of Parmigiani Fleurier. “We chose to launch these unique objects of art in the Middle East as we consider the region to be one of our most significant markets.” Silvio Denz, CEO of Lalique said: “We

are extremely pleased with the results of our collaboration with Parmigiani Fluerier. The 15 Days timepiece is truly a collector’s dream and we are sure it will be well received by the large number of luxury connoisseurs in the Middle East.”

Parmigiani Fleurier watches represent the very acme of cutting edge design and innovation married to the best of Swiss watch making heritage. With a dedicated effort by the company to bring watch making to the world, the manufacturers have tried their best to give the users the true Swiss heritage.

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February - March 2013Intelligent SME

Rare & Fabulous

Next generation Jewellery The fifth season by Roberto

Coin is a line of jewellery expressing the elegance

which is typically represented by the tradition and philosophy of Roberto Coin, and which is perfectly suited for today's metropolitan dynamism. The jewellery-makers are billing this as the informal expression of the world of Roberto Coin, with a charming casual-chic touch added. Style and manufacturing techniques remain the same to create a new, fresh and modern variety of jewellery creations. This is the perfect collection for women who are looking for quality jewellery for the different seasons

of their life, when the idea of a piece of jewellery is connected to an attitude more than to an ideal concept. As usual, much attention is paid to the choice of precious and natural elements. The jewels of the fifth season are produced inside the Italian factory “La Quinta Stagione Spa”, under Roberto Coin’s son Carlo Coin. The unconventional patterns and designs complement today’s demands with a diverse and unusual look. From this exclusive and uncommon match, innovative and fresh jewels have been unveiled; jewels with clean and refined lines, high quality and precision that aptly describe the world of luxury, Roberto Coin are guaranteeing the highest standards and quality levels. If the TFS is anything to go by the company’s previous reputation rest assured the collection will deliver on those counts. The collections TFS by Roberto Coin presented till today have been welcomed by the international public with an enthusiastical clamor, which you can see only when the public at large finds exactly what they've been

searching for a long time. Since 1996, a small ruby is hidden inside each piece of jewellery created by the manufcture. Legend has always been according this marvellous gem, which is considered eternal, the power to promote a long, healthy and happy life. This very same wish has been now taken over by TFS by Roberto Coin.

Roberto coin crafting the future of jewellery This extraordinary collection interprets the most provocative aspect of Roberto Coin’s inexhaustible creative vein. High-end jewellery works of art, enchanting talismans that sing, eccentrically magic. The company has crafted the future of jewellery, they have produced over 1000 new jewels in 2012, among those are the 300 Roberto Coin unique pieces of which 290 have already been sold, and some successful special collection like: cocktail ring collection, diamond classic collection, primavera collection, unique pieces collection and shanghai collection in the market.

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Rare & Fabulous

The new Porche Cayman comes to UAEPorsche Centre Abu Dhabi, Ali

& Sons Co., as well as Porsche Centre Dubai, Al Nabooda

Automobiles, revealed the new generation Porsche Cayman at exclusive evening receptions in both cities. The third generation Cayman has changed dramatically. It is lower and longer, lighter and faster, more efficient and more powerful than ever. A longer wheelbase, wider track and larger wheels enhance the driving performance of the mid-engine sports car. The new Cayman is – after the 911 Carrera and Boxster – the third sports car model line from Porsche to feature innovative lightweight body design. The new generation is up to 30 kg lighter, depending on the specific model and equipment, and consumes up to 15 per cent less fuel per 100 km than the previous model despite higher engine performance. Featuring a new lighter design and powered by a 2.7-litre flat-six cylinder engine, the new Cayman produces 275 horsepower. It accelerates from zero to 100 km/h in 5.4 seconds, depending on the equipment, and reaches a top speed of 266 km/h. Its NEDC fuel consumption is 7.7 l/100 km when equipped with Porsche Doppelkupplungsgetriebe (PDK).

Its bigger sibling, the Cayman S makes use of a 3.4-litre naturally aspirated flat-six cylinder engine for an output of 325 horsepower. Acceleration time from a standstill to 100 km/h time is 4.7 seconds with a top speed of 283 km/h. The NEDC fuel consumption value is 8.0 l/100 km with PDK. Aesthetically, the sports coupé stays true to its heritage. It has been redesigned to become even more distinctive. The new model features an extended wheelbase with shorter overhangs. The standard 18 and 19-inch Cayman wheels give it not only a sportier appeal but also better lateral stability and handling properties. The car’s styling is marked by precise lines and razor-sharp sculpted edges. They emphasise the car’s low, extended silhouette with the windscreen shifted forward and the roof line that reaches far back. Typical of the more advanced styling is the shoulder line, which runs from the wings towards the rear side panels. The door mirrors are newly positioned near the top shoulder. Especially expressive characteristic are the dynamic recesses in the doors, which guide

induction air into the distinctive air scoops on the rear side panels and then directly to the engine. From the front end, the new Cayman is marked by its dominant cooling air inlets, which increase in size towards the sides of the car. Integrated in them are the round front lights with four-point daytime running lights or position lights – an unmistakable identifying feature of the new Cayman. Just as unique to the new generation of the sport coupé are the large, low rear lid made of aluminium and the rear section with its wrap-around edges. At the upper end of the rear window, an LED brake light spanning the entire window width warns traffic behind. Mounted directly to the rear lid is the thin blade of the rear spoiler, which – in contrast to that of the Boxster – is higher and deploys at a steeper angle. The new Porsche Cayman is retailed at 200,800 AED whereas the Cayman S is being sold at 227,300 AED. A total of 800 invited guests were invited to the unveiling of the completely redeveloped two-seater sports coupé.

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Rare & Fabulous

The Galaxy Note 8.0

Samsung have launched a new member to their note family named the Galaxy Note 8.0;

that’s set to re-ignite the mid-size tablet category that Samsung established in 2010. The Note 8.0 is slotted in between the Note II and Note 10.1. The mid-sized device promises unrivalled multimedia performance within a compact one-hand-grip screen, the Note 8.0 has the power and advanced technology to evolve the tablet experience giving the end user high levels efficient multi-tasking while benefitting from voice call functionality. Furthermore, the intelligent S Pen brings together the latest innovation with the ease of using a traditional pen and paper. “Back in 2010 the launch of the first Samsung Galaxy Tab with 7 inch screen opened a new chapter in the mobile industry. Now almost three years later, Samsung continues to evolve the

sector that meets the demands of modern life.” said JK Shin, president of the IT & Mobile Communications Division at Samsung Electronics. “The Galaxy Note 8.0 breathes fresh life into the category as it delivers the perfect fusion of portability and everyday productivity - the result is a pioneering,

pocket-sized solution that enhances and enriches our everyday lives, whether at work or play,” added Shin. The Note 8.0 has innovative features such as multi-window options to split the portable 8 inch screen and allow optimal access to a number of live applications; a new generation of Samsung’s intelligent S Pen with advanced usability; access to a suite of S Note templates and tools that allows user to create, edit, manage and

share everyday documents; the Samsung “reading mode” technology to enjoy e-Books with optimized resolution, video and voice calls. Samsung is slowly making the physical diary obsolete as its S Pen is gaining popularity for its sensibleness. Practical S Note templates and S Planner feature help to manage everyday tasks, including meeting notes, to-do lists and even personal diary entries. All content can be entered and updated with the finest of detail thanks to the evolution of the intelligent S Pen. The Handwriting-to-Text conversion and advanced productivity tools have become more precise and support formula and shape recognition. The Note 8.0 is packed with pre-loaded content and apps specifically for the value maximising, mass multimedia user. Along with Chat-On the easy instant and group chatting

application, Awesome Note has debuted in an android tablet for the first time with Note 8.0. Awesome Note is capable of unlimited note-taking uses including Memo, Diary and Must-remember lists. Meanwhile Flipboard integrates news, social network and other feeds in one stylish, flippable format that ensures the users gets all his news and entertainment in one unified location. Flipboard developed a customised version of its application exclusively for Samsung that allows users to take the S Pen’s hover feature and preview article headers beneath Flipboard’s main screen tiles. Finally, Smart Remote, gives you a universal remote control and electronic programming guide allowing you to manage TV and video watching seamlessly. Optimised to aid personalised creativity, the Samsung S Pen has evolved into a smarter and practical piece of hardware that lets new realms of creativity and expression loose. For example, removing the S Pen from the device will automatically launch innovative features such as Pen Detection that will suggest adapted menus that it thinks you’ll need and Page Buddy, a feature that will intuitively activate your most recently adapted S Note home screen. S Pen technology is now so advanced that it doesn’t even have to touch the screen. With Air View, the S Pen needs only to hover over the screen to see previews of videos, emails, photos and appointments on the SPlanner app without having to open the file or application. S Pen Gesture allows images and content to be easily edited and cropped, whilst Paper Artist and Photo Note allow photos to be artistically personalised. In addition, for the very first time in its lifecycle you can use S Pen to control the physical menu/back buttons on the device thanks to WACOM technology. The Galaxy Note 8.0 is expected to be available from Q2 of 2013.

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From the Entrepreneur

Creating new spacesCarla Conte, Founder and CEO of Brand Creative, gives an insight into her interior designing business and strategic outlook.

I started my design career in 1998, interning for one of Toronto’s top design and branding agencies. I was

given this opportunity via a Global Internship program that only accepted students with an exceptional grade point average. To be honest, I wasn’t entirely convinced that a design placement was right for me as I had decided on a career in medicine – I wanted to be a dermatologist. Although I excelled at math and science, it was art and design that I was passionate about. When my

teachers approached me with a chance to work with this particular agency, I didn’t know how to react. I questioned if people were actually making money in art and design focused careers. My parents’ influence on me at the time was quite strong. Being Italian immigrants to Canada during a time where people were encouraged to be entrepreneurial, affected their thinking and, in turn, my upbringing. Though they recognised that I had raw talent and passion for the arts, they were adamant that working for

other people in a field that was known for its “starving” achievers, would never yield any exciting or substantially life changing results. Their advice was clear – whichever path I chose, they wanted me to consider opening my own business when the time was right. I ultimately accepted the intern position at the agency and saw first hand how big brands developed sales strategies utilising design as a tool to convey their message and attract customers. I began to experience the business potential that design offered the world and decided this was something I could commit to. After my internship I obtained my interior design degree (Hons) from the prestigious Ryerson University in Canada, and won the coveted “Designer of the Year” title when I graduated. I took my education very seriously and hoped it would eventually pay off – not necessarily financially, but I wanted to be known as a branding expert. I decided early on that I would focus on the retail segment and never deviated into residential, institutional or office interiors. I spent over a decade with Watt International, working with Fortune 500 companies in North America, Latin America, Europe and Asia, before being named head of design (Dubai) for a boutique London retail design agency in 2009. I made the move to Dubai in 2006 to work on Dubai Festival City – an experience that opened many doors for me. I was exposed to the design and construction processes in the region and made important industry contacts that I am still linked to today. I had spent nearly 13 years climbing the proverbial “ladder”, learning all I could from my

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mentors and being recognised with awards and publications before deciding that I wanted to start my own agency in February 2011.

Brand CreativeIn just two years, interior design and branding agency, Brand Creative, has established a respectable name in the market for strategically branded interiors specialising in the retail, hospitality and entertainment sectors in the UAE, GCC and internationally. Our ability to connect with consumers on an emotional level is the driving force behind our success. We guide our clients through a true design process and share with them the trade secrets learned from top international

retailers. We understand brand spaces, and imbue them with a personality of their own. It’s not just about what colour the walls are or which lighting to use. We know what makes consumers enter a space and how to encourage them to spend time and money in the environment we create. Since its launch, Brand Creative has built up an impressive portfolio of clients and projects, from the new look of Bin Sina Pharmacy at Mall of the Emirates (with the concept being rolled out nation-wide) for Al Khayyat Investments, building brands from scratch for Saudi group Al Hokair and repositioning Kuwaiti fashion house Anotah for the UAE market, to name a few.

In February of 2011 my partner Mohammed El Hijazi and I decided the timing was right to open a design business in the region. The retail market was just re-surfacing after the recession and businesses that had maintained funds to build or expand their store portfolios were ready to start spending again. The difference was – no one was willing to pay any large agency “pre-2008 type” fees but more importantly many of the large agencies had pulled their branch offices from the Middle East all together in 2009. We felt as though we had nothing to lose, and, after years of studying and learning from my superiors, I also felt I was well prepared. My promise was to offer local retailers the opportunity to tap into my international experience and design sense without costing them a fortune.

No regrets till datesWe haven’t made any detrimental mistakes as of yet, but there are definitely situations where valuable lessons have been learned. We are building a team around us that we are truly proud of and sometimes that means letting go of those who aren’t the right fit. Since we’re in a growth phase, we are cautious in adding designers to the studio at the moment. We’ve learned that one negative individual can affect the well being of the others. It has been difficult trying to decipher true talent and passion in a sea of candidates, but we’re learning

Our ability to connect with consumers on an emotional level is the driving force behind our success.

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to ask the right questions during interviews and look beyond who is available locally when necessary.

The X factorWhen we sit with our clients and discuss their competition and their aspirations they often compare themselves to other local brands. Although this is important we stress that it is essential for every brand to study upcoming international trends and to stop benchmarking themselves to what’s currently “best” in the region. The UAE has a sophisticated demographic (both local and expat of a certain age group) that are well-educated, travelled and stylish consumers. Most importantly, not only can they afford the best but they expect it. Our approach to design incorporates a strategic research stage where we study each client’s market and positioning before ever offering any visual concepts. We deem a design as being successful only once we know that our concept is either positively affecting sales or increasing the brand’s awareness. Another point to mention is that I have a very hands-on approach to every project. I can afford to do this because we carefully select our clients and keep only a manageable amount of projects “live” in the studio. I insist on meeting each client, directing each concept with my talented and experienced team and attend all major presentations as well as site

visits during construction. Clients appreciate that they aren’t pushed to a junior member of staff once the “deal” has been signed to work with us. Brand Creative has been completely self-financed since inception. After reviewing our personal assets we realised we didn’t have to approach banks. In two years of operations, we have

signed and collected a total value of over AED3,500,000 in design contracts and have projected the same value for 2013 alone. Since 2011 we have designed nearly 50 projects (of which half are built and the other half are in process). The year 2013 looks to be quite promising with two large scale projects that could easily keep the studio busy for the next two to three years. We do want to stress that we will never lose interest in speaking to small, new, upcoming brands or those existing ones that wish re-position within the market or expand abroad. We have been able to manage up to 14 live projects in the studio at one time, and so, we feel confident that we can deliver even when the demand is high.

SMEs in DubaiDubai is an exciting place in which to set up an SME. We recognise a unique opportunity in the emirate for business owners to introduce products and services that are new to the region and to establish themselves in a city, which is still developing and encouraging growth. Unlike North America and Europe where SMEs suffer from saturated markets and crushing competition in every sector, there is an opportunity here to establish yourself as a credible leader – as long as what you offer is unique, good quality and genuine.

Promising futureWe are going to try our hand at the retail market by developing a furniture and accessories line that is not only sustainable and supportive of a particular developing country but stylish and affordable too. We figure we have enough of the tools and experience with not only retail but also designing custom furniture and the combination of these two specialties could yield great results. We would love to see Brand Creative open official branch offices in both Toronto and Casablanca – this way we can spend time doing what we love most, while also being near to our families back home. I don’t think I’ll ever live what most people deem a “normal” life and, quite frankly, I’m not only at peace with that – I look forward to it!


Unlike North America and Europe where SMEs suffer from saturated markets and crushing competition in every sector, there is an opportunity here to establish yourself as a credible leader

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Meet the CEO

Mishal KanooThe ever pragmatic Mishal Kanoo, deputy chairman, Kanoo Group of Companies, shared his priceless philosophies at the Emirates NBD Global Business series.

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Meet the CEO

TQ: In your early days, when you were setting out and you were a young man, who influenced you the most? Who affected your life in a positive way?

MK: A lot of people in this part of the world say, “my father did this and my father did that.” I will tell you unabashedly that the most influential person in my life has been my mother. The reason I say that is because all of us grow up in a cocooned environment in and around our mothers. They help us grow, understand and create a world around us. I am not trying to discount a father’s role because I am one, but in reality, it will always be the mother that helps influence a child how things will be and my mother did that to me. 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 in the afternoon, she took me to this place behind the Jumeirah mosque where there were old houses that do not exist there anymore. They were occupied by less-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 and she made me give it those people myself. 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 of than they are today. So, that was one of the best lessons I learnt while growing up. What also helped me is within our family we are taught to say please and thank-you all the time.

TQ: Born in a privileged environment, have you ever seen a difficult day in your life?

MK: If I have to compare my life with the people I just mentioned, then no, but compared to a jet setting, then yes. There are physical, emotional and mental difficulties. When my father passed away that was an incredibly difficult emotional rollercoaster. The idea of having a difficult time is a relative term. If you are talking about going one day without eating, I have not experienced that and I cannot imagine experiencing that. I wouldn’t want myself or anyone else to experience that because it’s a horrible thought.

TQ: Your father died at a young age. Who was there to guide and take you through the paces of life and fine tune you?

MK: (Mishal laughs) – Being part of a family business makes it tough to interact with your family. On one hand you have the family bond and on the other you have business issues which sometimes overlap. That makes it hard as you go along; I cannot pin-point a specific person who helped me as a lot of people at one point influenced me.

TQ: So you joined your company at the age of 21 and after a while left. Why? Was it arrogance?

MK: The best example I can give you; I was 26 and it was at the start of the internet era in the 90’s. I was buoyed by the thought of investing, so I did. It didn’t take a brain or a genius to make money in those days. I thought I was a genius and knew how to make money which led me to take margin calls. My family members refused to get into this (internet) business. I thought I am smart and, one day, I would show them. Then the internet bubble burst and I realised how stupid I was because instead of understanding every aspect of the company, I was buying into a dream.

TQ: You wanted to be an architect and then also tried your hand at computer

science; you ended up becoming an economist.

MK: Back in university I had a professor who happened to be the dean of the computer science department and she really hated me, so that killed that one. One day, I sat with my friend who had an exam in economics and picked up one of his books and started to read it. A quote that stuck into my head which is the best quote I have heard in a long time, “No two economist’s can agree on one thing.” This meant I could not be wrong, which is fantastic. I was always interested in macro-economics; I think micro-economics is useless as you are taught to manage people.

TQ: What were you referring to when you said ‘to educate people is to train monkeys’?

MK: Well, you know it's simple, we do train monkeys. What I’m saying is 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.’ In the world 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 from your organisation. I want more people to challenge me, argue with me and to vest me because at the end of the day you raise my bar. One of the best things I learnt to do is play chess because within that limited space you have to learn what moves to make, how to anticipate what others are going to do etc. Be ready to be surprised by others' intelligence, because that’s how you learn and correct your

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mistakes – hopefully never repeat them again.

TQ: Let’s look at the Kanoo group. Over the last 20-25 years you have been with the company. What has Mishal Kanoo done for the century old Kanoo group?

MK: Honestly nothing! 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. I went to university with the same mindset that existed in this region – I am the boss I know everything and you don’t know anything – this is micro economics. This means you fear the other people working around you. You must give authority to your employees and along with that comes responsibility. When things go pear shaped nobody wants to take responsibility and instead they find a scapegoat. It’s not wrong to admit you have made a mistake, because we all make mistakes.

TQ: You are a world-renowned speaker, and one topic that you are widely called upon to speak and write about is family business. In one of your articles you have mentioned the seven deadly sins of family business. What are these sins?

MK: Well I cannot remember all of them now. 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 if there is no succession planning. Most families fail to plan. Within the Islamic society we go by the Shari'ah law in which God has talked about ownership and not management. I also need to understand as a family I’m prepared to go by what I want or what is needed. 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

who is going to fit ‘my mindset’ succeed me, but rather what they will need in the future. Let me explain, I had visited a family business conference along with my cousins and a few other Arabs. The in-law to the owners of New York Times was talking on behalf of the business, something that would never be accepted in our region. After he completed, a woman from Finland stood up and said, “In Finish society we will never accept an in-law coming and talking on behalf of the family.” So these family issues are global. There are two distinguishing things in businesses as a whole. The world is split into different categories, according to me. One category is comprised of the northern Europeans, which include Scandinavian countries, the Benelux countries, UK and I will also throw Hong Kong and Singapore in there. Then there is the rest of the world. The first category is an exceptionally

impolite society, and the rest of the world is a

very polite society. Superficially what

I’ve said is insulting to the northern

Europeans and the first category, and very nice

thing for the rest of the world. Let me explain, in an impolite society I can actually tell you what I think, without having a lot of negative repercussions. Therefore, I can tell you and we

can interact to a certain degree. This

means I can tell you that I really don’t like you, but within the sphere of things we can work together. In a polite society I will never say I don’t like you, or I can’t stand you. I will never tell you any of the things you need to know because socially it’s unacceptable.

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This means you don’t know the boundaries of each others and, in turn, don’t know what the other one is thinking.

TQ: Mishal is a prolific writer and columnist and is known for his provocative comments on topics that most people avoid speaking.

MK: They have censored me by the way.

TQ: However, today we have obtained the licence to speak about those touchy topics from Mishal. Do you feel discrimination of any kind is permissible?

MK: Yes, you should be allowed to discriminate against Manchester United Fans. (Laughs)

TQ: Do you feel positive discrimination of any kind is a good thing? Do you feel there should be more women on some boards?

MK: I personally think the more women on board the better (chuckles). In all honesty, you should not discriminate either positively or negatively. Hire an employee on his or her merit and ability. In family businesses or other businesses the most influential person is always going to be the mother; a woman. Would I discriminate against a person for his or her gender? Not really; against the religion? Not really; on basis of race or political reasons? I personally would not discriminate. However, this is one thing I would strongly discriminate against, and that is stupidity. When a person makes a mistake, it’s okay because mistakes happen. When a person commits the same mistake for the second time, it’s still forgivable. When the person commits the fault habitually, I’m sorry he /she is stupid, and I have a really hard time respecting a person who can commit the same mistake infinitely.

TQ: Mishal was actually one of the select few people who foresaw the bubble burst prior to 2008, for which he was flagged as unpatriotic and controversial.

MK: Talking about the property scenario in 2008 and for the people who actually bought land in 2008, here is a question. If there was a wall on the road and I was driving my car really fast what are my chances of surviving the crash? You could, but when you crash do you blame the wall? Do I blame the car? Or do I blame my stupidity for stepping on the accelerator. Which is obvious, and it was too obvious, and I am sad to tell you I am starting to see the signs of what happened in 2008 again. I don’t like to cause controversy just for the sake of it, although my family members might disagree. I will state what I think is in front of me. I am always open for correction as far as you can show me where I am going wrong. The problem is when something is too glaringly wrong and no one wants to call it. However, when you do, you are called a guru. I am no guru or fortuneteller or a sage; if you don’t have the courage to say the obvious, then that is one of the worst possible things.

TQ: Moving on from there, the earlier point on discrimination, I was also going to talk about emiratisation, nationalisation v/s meritocracy. Where do you stand on that?

MK: I want people to win their jobs not as a charity, but because they deserve it. The same thing I will also say to the people who feel the minority or a specific gender should get jobs. It just means that those people are incapable and I need to create jobs for them. How many people in their businesses want charity cases in their organisation? I want people in my organisation, whichever nationality they are from – to be the best they are and for us, as an organisation

to raise the game. There are people who will stay in their little cliques and hire within those cliques and although there are many factions the trend needs to stop.

TQ: Given you run one of the biggest travel and tourism companies under the Kanoo Group; What is your take on the mushrooming of 100’s of airline companies and claims by them doing great business,

MK: I haven’t seen the financials to be honest, but if someone tells me they are doing profit I will believe it because it makes sense. However, does it make sense to have eight or nine legacy airline companies in the Gulf? I heard someone say it is to bring business in the country, but there are more efficient ways of doing it. Now if you are running an efficient airline, do it. If you are running an airline that has been loosing money year on year why keep it other than ego?

TQ: What are your thoughts on the new weapons on mass destruction – slavery and debts?

MK: The view of slavery has shifted; you are no longer in physical bonds but in financial/metamorphic bonds. How many of you will go take a loan, or take out a mortgage, is that not slavery? It does not mean we blame the banks for this; we have to start blaming ourselves for this. We are the ones who want new things and have crazy demands at times. Do not blame the drug seller but the drug user. Let me clarify I am not advocating use of any drugs but just love.

TQ: You say greed is good, how can that be?

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I don’t like to cause controversy just for the sake of it, although my family members might disagree.

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MK: If I give you charity, I pity you, and I’m saying you’re not good enough. I need to take care of you; I will act as baba. Versus, I give you the facilities and say use your internal drive and do something with them. You don’t owe me after that; in turn 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 and do something.

TQ: Since we are touching on difficult areas, lets throw them all in – Islamic finance; Where are we on this one? Is it about religion or semantics?

MK: I don’t have a problem with its concept, but the way it is being portrayed. Today, it’s nothing more than beautiful marketing that aims at plucking on the heart strings; if that’s the case it’s wrong. While the actual purpose of Islamic Finance is to help, which I don’t see period. Most people think of Islamic finance as banks and that’s wrong. There are concepts that Islamic finance mentions which are not incorporated. One of the things that you have to declare in Islamic finance - if you are going to make profit, break even or you’re at loss. Similarly, while making a sale you must declare if there is a fault in it or not. Now this is a big issue, how many people have seen something they wanted to buy, where the seller and buyer agree and a third party comes in with a higher price and the seller immediately sells it to him. This is highly unacceptable in Islam. Again, these aspects are not talked about. This is not a package you are selling to people and that is why you need scholars, as well as people from the business world to understand different aspects; if you don’t understand them you cannot marry the two.

TQ: Should the system of residence visa for expatriates be changed? There are many people who have been in this country for decades and yet have to go to renew their visa every two years.

MK: Let me put it this way, from a business aspect that makes sense.

However, from a political aspect it might not make sense. As I am not the person who is going to make the judgment on these lines, I cannot answer that question. Please don’t get me wrong I am not trying to defer from it, but I cannot comment on it. It is also a reason it hampers people investing in this country. It’s an issue a government

and extremism and Dubai is the greatest beneficiary of that and anything goes wrong with them then Dubai benefits.

MK: Look at all of that has happened in the Arab spring. We have a saying in Arabic ‘your death is my reprieve’ – other people are suffering and people here are benefiting. Money is a coward it will not stay where it is needed it will move to where it benefits the most. I am not going to filter the people who have done wrong and right in country ‘x’ because that makes me a moral judge, which I can never be. However, I can open the market and allow you to come here and utilise your money and benefit.

TQ: Are we supporting the SMEs in our country and our region?

MK: Categorically no! Most people have the impression, 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. The trend today is a conglomerate looks at an SME doing well and sets up a competitor in that segment, which milks the particular SME to death. Firstly, we need to protect the SMEs; the whole purpose of creating 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 protecting SME interests which we don’t have. Another important thing is when SME’s reach a medium size there needs to be a dedicated channel that helps them grow and 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. SMEs grow on the backs of available finance and a young workforce; These youngsters need high-quality education for which we need good universities. Most universities in the region

body has to properly study; what are the benefits of changing the law v/s what are the benefits if you keep it as it is, for the overall population.

TQ: You have said in the past the Arab world has two ills - nationalism

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are profit ventures. SMEs require well educated youngsters, whose mind can be infused to think and not regurgitate like a parrot. The government also needs to play its part in this.

TQ: Unemployment is one of the biggest challenges the Arab world is facing today, how can we create more jobs?

MK: If you want to create opportunities it will be created, but you need to change the existing structure to allow these opportunities. What types of jobs do people want? Jobs are available but to many people it’s below their dignity. To many, it is socially unacceptable to clean the streets, but a job is a job. Do it! There is a lot of voluntary unemployment due to this reason in the peninsula. In certain parts of the Arab world financial conditions can be

resolved, the one country in the Arab world that is going to become a successful democratic country will be Tunisia.

TQ: What are your worst fears?

MK: The most frightening thing in my mind on a personal level is anything happening to my family. On a professional level – We will end up growing as a population bigger and bigger and there will be greedier, nastier people, and bloodier wars; forget about wars, people will distance themselves more from each other. What I have noticed in a horizontal office structure is that people talk to each other more than in a vertical structure. We as human beings need to communicate physically, whether it’s verbal, visual, or hand gestures. What we end up doing is tweeting, Facebook updates, etc. And the young generation think

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this is the norm, I hope to God I’ll be dead before they take power.

TQ: What wakes you up in the morning? What drives you?

MK: I want to see a better world; I cannot control a lot of things, but as much as I can I want to make peoples, lives better and not worse, being polite and using kind words go a long way. I want to see that change where people appreciate the things done. I’d like to facilitate that change in people; everyone can have that paradigm shift.

TQ: If you had to write a book what would it be about and what would be the title?

MK: Several books, one on ‘How to survive your family’ (chuckles). The other one on, all the things I have seen, I wish I never saw. I can’t tell you how many people I have come across who’ve lied, cheated, were despicable and got away with it.

I’d like to

ensure those people do not get away with

it. It annoys me and I want

justice. When someone does wrong they should be

punished and when someone does a good deed they should get rewarded, which, I think, is paramount to us as humans, for us as a society, community, and as a being. We need that justice. This is what I want to write about because it’s incredibly important for me.

TQ: Let’s all imagine it’s your 85th birthday today, what would we be celebrating? What would you like to be remembered as?

MK: I would want to be remembered as a good father and a good husband. I really don’t care about anything else.

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Meet the CEO

The simple man of luxuryIn an exclusive candid chat at the Emirates NBD Global Business Series, Mohammed Abdul Rahim Al Fahim, CEO of the Paris Gallery Group, spoke about the simplicities of his life in contrast to the luxurious family-owned business that he runs. Following is an excerpt of the interactive session with Tariq Qureishy (TQ), CEO, Vantage Holdings.

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Meet the CEO

TQ: Let us go back to the earliest days of your life. What is that moment you remember that inspires you till today?

MF: Both parents have unique influences in shaping up the characters children. Sometimes you find that a father is more influential at some points, whereas your mother is more influential at other aspects. I learnt precious values of life from my father, whereas I learnt the softer morals of life from my mother. I remember my father, around the time I was a teenager, would never dictate to me what to do and what not to. This taught me how to lead by example and not to dictate terms to others. He used to tell me stories and incidents of his life and take me along with him for events that let me observe him and his actions. In my mother I learnt different emotions; how to love and care. This is because women have those qualities, which are essential to shape us at a young age.

TQ: As a father of three beautiful children are you trying to pass on the same values?

MF: I am trying my best, but believe me its not easy. Let me tell you it does not work the same way how it used to work with me when I was a young boy. When my eldest daughter Dana was 12, she was at an age where she needed me to explain various things of life. I did simplify things and enlighten her, but she would not understand me and this would upset me until I visited her school one day. Her teacher told me that I need to be there for her. I explained to the teacher I was indeed there to do so, and, I also used logic to explain things to Dana, but that was my mistake because logic does not work at that age. She wanted more simple interactions where I was expected to give her more attention. A few years ago I was extremely busy setting up the corporate governance framework at Paris Gallery. This distanced me from my kids.

TQ: Do you project a lot of these learnings in your business life? Are your staff like your children, or do you

like to lead them by example?

MF: Things always don’t happen the way you want to at work. I like to be one of them and I like them to be in a position of honour, which allows them to engage in problem solving and a chance to show their creativity. I like to show all my staff ‘I am one of you and you joined this company because you can add value to the organisation.’ I like to give my staff maximum space where they can interact and work creatively. In fact in many cases my employees, both younger and older, respect me as their brother.

TQ: People look up to icons such as yourself and wonder whether or not you have made mistakes, or did your parents always provided for you?

MF: Well if you don’t mess up you are not human and that is the beauty of life. When you make mistakes you learn and rectify your actions, but to answer your question, I make mistakes till date.

TQ: It’s very important to know then

how you are able to move forward after making a mistake.

MF: I never regret anything that has gone wrong in my life because when you regret you loose. I don’t have any regrets about any thing but I try to learn from my mistakes. I made many mistakes but I always learnt from them every single time. I remember when I was 16, I was travelling back to Dubai from the US via Frankfurt where I stopped over and stayed for a few days. Somehow, on the last day of my trip, I lost everything except my passport, which was with me. I was petrified and I did not know what to do. Having seen the distress on my face a gentleman approached me. He asked me if everything was fine and I told him I lost my bag and all my belongings except my passport. He told me not to worry and asked me whether I would like to stay with him. I thought for a while and agreed to go with him. This man lived in a single room apartment, I could tell he was a hard working person and I saw how he lived but nevertheless he took care of me. I called back home and they transferred money to me through his account. This incident taught me that all people don’t have it easy and live an easy life.

TQ: Moving on to your business life, when did you start working with Paris Gallery?

MF: My father had a partnership and he had to work across the GCC. The Paris Gallery you see today started formally in 1994-95. I opened a shop in Souk Sharjah that many still remember vividly, I guess. I used to work part-time in that shop supplementing it with my office work which was more like a passion. After me, my younger brothers continued to manage it. One of my brother’s Ismail loved the business so much so he did not want to continue with school. I did all the things a salesman would do, I bought and sold and interacted with customers.

TQ: What was the revenue of your establishment when you started?

MF: It was three million for the

I like to give my staff maximum space where they can interact and work creatively. In fact in many cases my employees, both younger and older respect me as their brother.

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retail part of these two shops in the early days. This figure still remains the same for these shops.

TQ: How much is the Paris Gallery Group worth today?

MF: Approximately one billion dollars.

TQ: From three million to a billion, a lot of entrepreneurs want to know how you managed to scale.

MF: I was part of the process; I did not do it all alone, I need to thank my father, brothers and the whole team. Now what ever I am going to say might not apply to another business, but in the beginning it is usually the entrepreneurship. It is that want to do more and achieve success. It was the passion and the people who were driving me. Many employees who started with us are still there in the organisation today. The circumstances are important as well, like Dubai and the UAE on a whole along and its economy were favorable, and its leaders developed the infrastructure to get to where we are today. Hence, when you open another shop many factors contribute to its success.

TQ: The reason I am asking you this is because a lot of your business is commoditised, you could find a perfume in Dubai Duty Free as well as at your store. You can also find them in the backstreets of Karama at half the price, and despite these chanllenges what makes Paris Gallery work?

MF: Firstly I have to appreciate our customers; it is because of their loyalty. Many of them have grown up along with Paris Gallery and that’s one of the major factors. It is also the environment of Paris Gallery, the way we arrange the merchandise along with some of the services we provide. We try to treat our customers as guests in a typical Middle East fashion.

TQ: There are certain facets about Mohammed Abdul Rahim Al Fahim that would resonate within many here; you have a very modest office,

you still travel economy class, and you even pay for your own parking at your office. How do you manage to maintain such high levels of modesty?

MF: Like I said ‘lead by example’; if I lay down a policy and don’t follow it myself it will be very wrong. When we started doing the corporate governance we decided to do away with the multiple offices and keep just one floor for our operations that would have open offices. In the beginning a few employees resented the move because they were used to their private office spaces. So I agreed to their demand but went ahead with redesigning the office the way I wanted keeping in mind these few people. When it was ready I spoke to those employees again who did not want to change the system. I explained to them the different kinds of internal and external meeting rooms while the rest of the office area would be open. I told them that an open office promotes communication within the employees; there will be more discipline and a homely atmosphere at the office. You won’t believe it took just one day for the new design to work. I was amazed as I thought there would be some resistance. My office too is a small cabin that seats no more than two people.

TQ: On the one hand you live a very simple and humble life, on the other side you work in luxury, which is an

excess of life. Why did you go towards luxury and not medicine, because we don’t really need it do we?

MF: If you put it that way, man does not require any additional things to survive, every single thing is an excess. If you take a look at medicine and hospitals, they are still charging for their services, it isn’t free. We must remember it is a business at the end of the day. We are in the business of beauty, and I believe with our kind of lifestyle we live today across the spectrum, the products we provide compliment those ways of living. Our wives and daughters like to use cosmetics to enhance their beauty and smell good. However there are some people that overdo it. It depends what they have in mind. When you are buying excess of something that you have no use for, it is not good.

TQ: Many a times we end up buying more than what we planned for because a salesperson suggested we should take another one. Just to get to understand your philosophy a little better – are you in the business of excess, or to make people happy or are you in the business of beauty?

MF: I hope we can make people happy, but we are in the business of beauty. We want to make people feel good about them. I’m sure when we look neat we feel more confident. I know when we talk

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about sales it is a bit contradictory, a salesman works on commission and tries to sell more. When you push a customer he does not feel comfortable coming back to you and we strictly prohibit our salespersons from doing that. We always tell our sales team to leave our customers alone and try to help them make an informed decision.

TQ: Within the luxury industry most companies are family based businesses, but you have been talking about IPO’s and corporate governance. You are a great proponent of corporate governance; could you tell us more about it?

MF: This is how you can grow your business because when you get to a certain size you need to take a serious look at your business practice. You want to instill corporate governance in a way that you don’t kill the creativity, but at the same time don’t let creativity kill you. You have to be able to expand with a feasible up-to-date business plan. When you have reached a certain size you need to practice business in the best possible, standard method. Doing so you will encounter some disadvantages. On the other hand you will be at a level from where you can continue having sustainable growth keeping your competitive edge. It also puts you in a position to operate within your territory or move outside. The way family business is practiced isn’t simple. You will face a block that leads to disappointments, which leads to mistakes. Yet it is something that you have to do, because family businesses that fail to do it, fail. You have to instill corporate governance with a lot of supervision. It has to be done in a structured and professional way where the whole company has to have the right set of checks and

balances. A system that ensures every senior is looking after his colleague in terms of accountability and responsibility. What you believe as a leader will reflect in your business.

TQ: Around 40 to 50 per cent gathered here are entrepreneurs, what is your advice to them on corporate governance as a lot of people feel the whole process is quite expensive.

MF: Generally, I would say start building it, it’s not expensive. It’s a fear we have within ourselves since we have built our businesses from scratch. But let me tell you if you do not start practicing corporate governance then you are making a mistake, your killing your business yourself. When your business is at the highest possible standard and there is clarity of processes you will find that the decision making process can be done in a much more professional, creative and profitable way. This will enable you (CEO) and your senior workforce the necessary time to contribute to the future of the company instead of getting stuck in the day-to-day affairs of the organisation.

TQ: What is your business philosophy? Are you one that likes to have a lot of control or you welcome new partnerships given you have a lot of brands under the Paris Gallery umbrella?

MF: Every partner has an added value to your business; those values should be made clear at the outset. We don’t like to have partners for the sake of having them. At the same time when you are in the process of selecting your partner the guidelines and expectations should be very clear.

TQ: If someone wanted to be a partner with Paris Gallery, what are

the three key aspects you are looking for in them?

MF: There is a partnership on the level of IPO that I hope will happen soon which will empower our customers to be part of us rather than just buy from us. As part of where we are today a potential partner will believe in what we do not just in terms of business but in our value system. This system is embedded in every company that comes from its founding fathers. If these two do not match, then it is a temporary partnership to make money, which will not work over a period of time.

TQ: You’ve mentioned IPO many times and why are you heading that way? Is it because you need money? Since corporate governance can be achieved without an IPO. Is it really necessary?

MF: Yes. There are stages of life of an organisation and when you do the corporate governance at a certain stage of your company’s life it does not stay where you like. The market environment changes and competition becomes fiercer. If you want to stay in the lead, maintaining your current market share, then you need to create that space for the company to grow. An IPO, by default, enforces you to keep the corporate governance alive and strong. It gives you the access to know what is happening at various management levels. This enables you to do business across different territories, which means you can do acquisitions and diversify your business. This broadens your horizon in a big way, much more than you can ever imagine.

TQ: Moving on, what are you going to do with your life over the next 10 to 20 years?

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You want to instill corporate governance in a way that you don’t kill creativity.

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MF: If I live that long that is (laughs). Well initially I thought I would retire when I reached 45 years of age. That did not happen and will not happen, but I want to retire from my current position in the next few years. I would like to free myself so I can get time for my part, my family and the society. According to a survey, it was revealed that there are five things that people regret in their lives of which three are very striking to me. One is not having given enough time for oneself, secondly people are always afraid of what others think of them and, thirdly, people regret losing touch with their friends and close ones. I don’t want to be one of those guys. From 2005 to 2008 my younger children did not know me because I barely spent time with them. Hence it is very important for me to divide my time between myself, my family and my organisation at this moment. I had an advisor not too long ago who told me it is not possible to do it, but here I am executing what I set out to do. Physical exercise is very important to me and I make sure I do it. I make sure no one works after 5 pm in my organisation and there are no meetings post 3 pm come what may.

TQ: You contribute a lot towards society, both individually and as a

group, you have always been modest and do not like to speak about it, but we would love to get an insight into the kind of service you put in for the society.

MF: As an organisation it is our duty to contribute towards society especially the government founded initiatives. We try to participate in a way and align our capabilities every now and then. We help locals who have been unfortunate and not been able to receive proper education and training. As a person I don’t contribute a single dirham in any foundation because many a times it does not reach the needy. I know people to whom even one dirham can make a difference; it is mostly for people seeking education, especially women. So I try to contribute to those individuals and families that I have come across in my life because I believe if you make a person use his/her capabilities to the fullest you have made a contribution.

TQ: Speaking about giving back to the SME sector, would you take a step forward and help a young entrepreneur set up his business? Do you feel the private sector should fund young entrepreneurs?

MF: The Sheikh Khalifa and Sheikh

Mohammed funding are doing a great job already in this regard. But before becoming an entrepreneur there are many who want a job to begin with and it is this kind of assistance that I would like to give. I don’t think the private sector should create another fund because there are already many prominent ones doing a good job and serving the purpose.

TQ: Let’s step into the future for a moment, it’s your 85th birthday today. What is it that you are proud about leaving behind?

MF: One is personal and one is not. When it comes to business I would like the people who are associated with us to remember that whatever was built with the Paris Gallery group also contributed to their growth. That is why I will want the leaders who will take over from me to continue building the group in a better way. I would like my family to feel that I cared and contributed to their growth in a positive way. Towards the little I contribute to society very confidentially, I would like them to be very successful and when they grow old and have families they would remember what happened in their lives. I want them to help the next generation thereafter.

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

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Announcements

Dubai Government’s eTransformation Strategy put under the microscope

Dubai eGovernment (DeG) Department recently concluded its third

eTransformation Forum, “Together towards Leadership” as part of its efforts to push the wheel of eTransformation forward towards an integrated, digital and knowledge-based society. The Forum mainly focused on Dubai Government’s eTransformation strategy presented by the Department and aimed at boosting Dubai’s transition into a creative knowledge-based city in the 21st century. In his inaugural speech to the forum, Ahmad Bin Humaidan, director general of Dubai eGovernment, underlined the importance of this forum as an interactive platform to look into the components and

themes of Dubai Government’s eTransformation strategy. “The eTransformation strategy has been designed to raise the bar of excellence of government work and government services with the aim of putting Dubai forward as the perfect example of integrated, knowledge-based cities in the 21st century. This necessitates government efforts to be unified for optimal investment in human resources, sophisticated technologies and existing potentials to carry on this successful path towards creating a highly competitive economy based on knowledge and innovation, in line with the UAE National Charter 2021, which aims to transform the UAE into one of the best countries of the world.”

NMC Health grows financially in 2012NMC Health delivered a good

performance in 2012 at both the Group and divisional

level, respectively. Consolidated Group Revenue increased from USD443.7m in FY2011 to USD490.1m in FY2012, a growth of 10.5 per cent. Dr B.R. Shetty, Chief Executive Officer, commented: “This has been a pivotal year for NMC Health, and

we are proud to have been the first Abu Dhabi-based business to list on the Premium Segment of the London Stock Exchange. Our full year results show that we have made strong progress across our existing facilities during 2012."He added that the year 2013 will again be a year of transformation. "We are likely to open three of the four capital projects, which we

committed to as part of our IPO, and they are likley to drive our future growth," Shetty further said. Moreover, he explained that the ground breaking ceremony at the site of the planned Khalifa City Specialty Hospital in December was a significant achievement to end the year 2012.

Creative Zone & Intelligent SME join handsCreative Zone has partnered with Intelligent SME as an

Intelligent Service Provider. Creative Zone is a business setup consultant, providing clients with balanced

professional advice and transparency in terms of costs, procedures and timelines. Creative Zone prides itself as much more than just a conventional business-setup company that helps an entrepreneur in setting up his business from infancy. Right from finding a suitable location in any of the free zones to processing the employee visas. Needless to say Creative Zone delivers on all counts and simplifies the entire process, befitting of their company tagline - Business setup simplified!

Ahmad Bin Humaidan, director general of Dubai eGovernment

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Announcements

As part of its ongoing commitment to develop, organise, promote and build a robust and safe maritime industry, Dubai Maritime City Authority (DMCA), the government authority charged with

regulating, coordinating and supervising all aspects of the maritime sector in Dubai, has officially launched a handbook titled: “The Dubai Powerboat Handbook”. This initiative aims to develop guidance services, as well as highlight the best ways to take advantage of safety, security practices, and techniques while using different means of marine transportation within territorial waters. The handbook is particularly useful since it is was drafted in collaboration with the Royal Yachting Association to develop comprehensive regulations and guidelines, as well as integrated maritime laws in accordance with international standards and best practices.

Dubai Airport Freezone, Dubai Customs sign MoU to improvise facilities for tenants

Dubai Airport Freezone (DAFZA) and Dubai Customs have formed a strategic partnership aimed at providing

tenants with quality services and facilitate trading. The two organisations plan to collaborate to study local obstacles, if any, and find suitable solutions to improve the procedures and mechanisms of business services. The Memorandum of Understanding (MoU) was signed by His Excellency, Ahmed Butti, executive chairman of Ports, Customs and Free Zone Corporation, director general of Dubai Customs, and Dr. Mohammed Al Zarooni, director general of DAFZA, during a meeting held at the Freezone’s headquarters. “Dubai Customs is a working partner for all Dubai business organisations, aiming to streamline and facilitate customs procedures in order to support commercial exchange between Dubai and the rest of the world” said Ahmed Butti, “Through our partnership with Dubai Airport Freezone we will continue to support the UAE’s economic development and further Dubai’s image as a business hub globally” he added. He further elaborated that we are extremely grateful to Dubai Customs’ support throughout the years. "Foreign investors and international companies are given the opportunity to operate freely and achieve their targets in Dubai. Our partnership will facilitate their day-to-day activity and help us to build a package of unique services to cater to our tenants needs” concluded Dr. Mohamed Al Zarooni.

HE Ahmed Butti, Executive Chairman of Ports, Customs and Free Zone Corporation, Director General of Dubai Customs, and Dr. Mohammed Al Zarooni, Director General of DAFZA, at the MoU signing ceremony.

DMCA launches Powerboat Handbook to safeguard marine operations

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SMEs that take the right sort of risks benefit from it but getting the balance right is

paramount. “Sometimes you need someone to guide you. You need someone to tell you that your business is good, but you also need to be aware of the risks that go along with quick growth,” said Humphry Hatton, CEO, financial advisory service, Deloitte, Middle East. Adnan Fazli, director, financial advisory service, Deloitte explained in detail on raising

Get Informed

finance: debt and equity, types, terms, investor type, dilution of control, motivation, exit strategy and implications. “You have to be internally ready for the window of change,” stressed Fazli. The seminar highly benefited the SMEs as the entire process from an embryonic stage of an SME to an IPO was outlined. Fazli added that different sector require different amounts of working capital, when choosing between equity and debt. “Equity has a lower risk while debts have a very high risk rate”

emphasised Fazli. The financial advisor also gave insights on private and public equity, “Moving from private to public is essential, but it carries more responsibility along with aspects that can get quite tedious” he said. David Stark from the firm’s reorganisation services was very informative on the Sukuk market for SMEs. He claimed that since banks aren’t lending much to companies, organisations can borrow from Sukuk, which in turn is good for SMEs. However the

Knowing your business, first step to financial planningDubai SME recently organised a seminar in association with Deloitte on SME finance. Financial reporting and control, business planning and raising finance were the key issues discussed, to assist Dubai SME100 organisations. The seminar focused on financial diagnostic assessment, financial reporting and control, cash flow optimisation and business planning. An ISME report.

Dubai SME recently organised a seminar in association with Deloitte on financial reporting and control, business planning and raising finance for SMEs

35


Get Informed

repayment terms are very strict. “Businesses struggle when they fail to communicate what they want to achieve, hence it’s crucial to communicate the right message to your clients. Understanding the market and competitors is very important but SMEs also need to look at the competitive landscape,” advised Stark. “Finding an investor is a process, but an entrepreneur needs to pursue properly, long term finance is much better than short term, although short term is what SMEs prefer” said Stark. “For a medium enterprise to reach higher ground, sound financials are required along with a robust business plan. Historical track records play an important role in attracting investors,” said Fazli. Fazli also presented SMEs with what Deloitte have called the entrepreneurs shopping list; this includes three years audited financial statements signed off by a reputable, independent and objective auditor, business plan of three to five years, budgets and forecasts (income statement, balance sheet, cash flow) corporate governance and control environment, articulating performance to date and planning for the future, explaining key drivers of your business, demonstrating understanding of market – dynamics, competitors, opportunities and challenges, explaining how funds will be used and future obligations managed, guarantees, collateral, personal endorsements and lastly patience and perseverance! The firm’s assistant director Alyson Baynes threw light on cash flow optimisation, financial reporting, control asserting and generating cash, which is the key to any business’ survival. “Numbers need to be relevant and should have an outcome as an analysis, financial reporting begins with reviews, analysis and explanation of the financials. Finance department activities need to be documented properly. Your company should not stop functioning just because your team is on leave” she advised SMEs. Baynes also advised SMEs to make payments periodically, review, analyse and explain financial information. She also stressed on assigning individual

responsibilities, accountability and consequences to key members of the team and to rely on the entire team instead of a particular individual. Shane Tonkins, director, business modeling team, Deloitte, stressed on the importance of a business planning. “Articulate your business plans properly, it should all be in a business plan. It is like the architect’s plan of a building or a house. Your business plan should be a simple document that can be read and understood by all. Be open for challenges from others on that plan and be very clear with profits and losses with the business and lastly it must be regularly accessed and updated” he emphasised. Alyson Baynes also shed light on financial diagnostic assessment and its requirement for SMEs, explaining the need for assessment and objective. The firm also explained key findings, recommendations and practical guide to implementation of financial planning.

A few of the SME 100 CEOs who gathered listened intelty to the Deloitte exoerts.

Humphry Hatton, CEO, financial advisory service, Deloitte, Middle East.

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Get Informed

Medical insurance could become mandatory in Dubai: Expert Dubai SME conducted a seminar on business risk and insurance management as part of a series of workshops being organised for the Dubai SME 100 companies. The prime objective of the seminar was to give a detailed report of the various kinds of insurance an SME needs to be aware of. Nikhil Pereira reports.

Medical insurance is mandatory in Abu Dhabi, whereas Dubai-based

employees could soon enjoy similar benefits. This was disclosed by speakers at a seminar conducted by Nexus Insurance Brokers. The seminar is part of a series of workshops being organised by Dubai SME targeted towards the SME 100 companies. Risk is a factor that a company takes into account while insuring its employees. Age, medical history and gender are factors that are out of an insurer’s hands; on the other front one’s profession, academic grades, a healthy well-being, vices etc. go a long way in affecting the kind of cover an employee could receive.

Ian Walton, director - corporate solutions, Nexus, shed light on the various commercial insurance offerings available. “If an employee loses his life and you (SME owners) have not insured his life, you face a fine of AED 200,000” said Ian. This is a something all SME owners should take note of, he added. Commercial insurance needs to be flexible and adapt to the evolving industries, hence, there are sector-specific insurance packages, tailor-made for different industries. For example, the food and beverage industry can insure against food poisoning and loss

of property. This particular type of insurance is considered by various catering services and fast food joints. Off late, the big outlet eateries and conglomerates are taking food and beverage insurance seriously as well. Educational institutions too, need to insure against food poisoning and fatalities of students, while travelling by school transport facilities, hence the Educational Institution Insurance is also gaining regard in the region. A consultancy firm can face huge losses if they do not have a suitable cover. “Setting up a consultancy might not be the most expensive task, but one has to be ready to the prospect of court action and, hence, the importance of professional indemnity grows with every passing day” said Ian. “Professional indemnity should be considered by all organisations at large, not just consultancy companies.” A growing business results in added pressure on the directors of a company. They face potential liabilities from all angles. The risk factor associated with a director’s job can be non-quantifiable as the repercussions of an error in decision can cost an organisation handsomely. The resulting legal action on the director or chief officer can cost the firm heavily; hence Directors and Officers Liability Insurance keeps in check the expensive legal fees. Duncan Crerar, head of employee benefits, Nexus, spoke on employee benefits. He said: “Employers should provide

Alexandar Williams, director, Strategy and Policy, Dubai SME addressing the SME 100 companies at the seminar.

Duncan Crerar, head of Employee Benefits, Nexus Insurance Brokers, presented on employee benefits.

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medical insurance and healthcare benefits to their employees, as this promotes a healthy workforce. A decision has to be made whether insurance cover is being provided for common colds or, something more serious like heart or knee surgery. Medical insurance is mandatory in Abu Dhabi, whereas Dubai residents can breathe easy as the day is not too far when the similar rule is adopted here

(Dubai)”. Peter Ellen, CFO, Nexus, noted: “We don’t need money to be happy, which is a fact, but if you stop your wife from shopping as you are low on funds, she will be displeased with you. Hence, indirectly money controls our happiness. Therefore, it’s very important to plan our retirement and gratuity funding, which ensures peace of mind post retirement. Once a man retires he looks to go out with his wife frequently on holidays, visit his

children and relax on a beach without having to worry about his next pay cheque. This can only be achieved if one has planned his future well. The earlier you buy into a retirement plan the more you can enjoy its benefits”. No SME owner wants to be in a predicament where company funds are heavily drained due to compensations and property loss. Insurance premiums may seem like a useless expenditure, but in the long run it balances out.

Get Informed

Shabnam Ansari, head of strategic planning & special projects, Nexus Insurance Insrance Brokers.

Peter Ellen, CFO, Nexus Insurance Brokers illustrated how he started a busbusiness late in his career, and successfully managed it, thanks to proper planning and insurance.

There are several tailor-made commercial insurance packages for company's across all industries such as food and beverage, educational institutions etc.

38


Get Informed

Networking expert Ivan Misner coming to UAE

Dr. Ivan Misner will be coming to the Middle East and will conduct a one-day seminar

entitled ‘Networking Like a Pro’ in Dubai on June 4. Ivan Misner is a best-selling author and the founder and chairman of BNI. Dr. Misner will be talking about how to master the art of networking based on his best selling book Networking like a Pro. “Dr. Misner has this amazing ability to connect with people from any culture or background. With over 200 nationalities represented in Dubai and business people from all walks of life, attendees will have the unique chance of learning how to master the skill” said Bijay Shah, national director, BNI Middle East Over 800 professionals, business owners, CEO’s, entrepreneurs and executives are expected to be part of this full-day live event in Dubai, with the morning session open to BNI members, while non-members will be invited to join Dr. Misner for networking lunch followed by the afternoon session. “Networking is not a numbers game, it is about working smarter,

it is about building relationships and generating business and Dr. Ivan Misner is the world authority on the subject, his knowledge in networking and referral marketing are second to none, and the result from implementing his teachings are amazing” says Phil Bedford, Middle East Master Franchise owner of The Referral Institute. Named the "Father of

Modern Networking" by CNN and the "Networking Guru" by Entrepreneur magazine, Dr. Misner is considered one of the world's leading experts on business networking and has been a keynote speaker for major corporations and associations throughout the world. Intelligent SME is the official magazine for the Dr. Misner’s seminar “Dr Misner's premiere presence in Dubai is a privilege to this growing community of business entrepreneurs. Learning from him will dramatically improve their networking, quality referrals and building long lasting relationships with customers to increase their success and profitability,” said Gautam Ganglani, managing director, Right Selection Group. “Even with the growth of social media and online networking, the principles and fundamentals of networking and building relationships remain unchanged and it is more important than ever to master it,” said Mohamed Kaabi, digital marketing consultant of Think WSI Net. Since Dr. Misner founded BNI in 1985, the organisation has generated over US$27.7 billion in business for its members. In 2012, BNI members passed 7.1 million referrals resulting in over US$3.3 billion worth of business for the members. “Networking is not an activity, it is a way of life and Dr. Ivan Misner’s teachings and philosophy has changed how business is done around the world and in Dubai, it is the right time for more business professionals to learn about the power of networking and use it to effectively to grow their business,” said Hussein Hallak, cofounder & CEO of TheContentPeople. The event will be held at The Address Dubai Marina on June 4, and is organised by Right Selection in conjunction with Referral Institute and BNI Middle East.

Networking is not an activity, it is a way of life and Dr. Ivan Misner’s teachings and philosophy has changed how business is done

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Success Story

Zomato.com striding across the globeWithin a span of five years Indian-based Zomato.com has grown to a monstrous stature. As South Asia’s largest restaurant guide, listing over 94,000 restaurants across 21 cities in seven countries, Zomato is growing by the day. ISME caught up with Pankaj Chadda, co-founder and COO, Zomato.com, to find out the latest developments in the company.

Q1) What is the secret of Zomato.com’s success? What makes such a simple idea attract so much attention?

A) While working at Bain and Company, Deepinder (CEO, Zomato.com) and I used to notice everybody queuing up at the cafeteria during lunch hours to get a peek at the menu cards, as these were banned from taking back to desks at work. And that’s when the idea engendered that it’d be much easier if we put the menu online for everyone to access. We then went on to build a database, and soon thereafter we went live with menus of 1,200 restaurants in Delhi NCR in July 2008. By the end of that year, we expanded to 2,000 restaurants. The fact that we launched our product after we identified a gap is what has made our business sustainable. The Zomato website and mobile apps are driven by our data, which is refreshed every 90 days. We provide key features like scanned menus, pictures, mapped coordinates, user reviews and ratings for over 94,000 restaurants across 21 cities in seven countries: India, UK, the UAE, the Philippines, South Africa, Qatar and Sri Lanka. We try to keep Zomato's interface clean and simple across all platforms. This, along with the rich information we publish,

41


Success Story

differentiates our product and enables users to get what they want. Users can also access Zomato wherever they are - be it online, on their smartphones, or using the print guide. We are focused as a reliable source of information in our domain for users. Even our social features have been implemented taking into account our everyday interactions with friends about places or dishes to eat. All these factors combined have contributed to the success we have enjoyed so far.

Q2) Please describe Zomato’s journey since setting up in 2008?

A) The last four years have been nothing short of exhilarating for us, both personally and professionally. From zero to 11 million users per month, two million-plus app downloads, over 200 young and enthusiastic Zomans spread across 15 offices, across seven countries, 94,000-plus restaurant listings and over 1500 clients. We expanded to the UAE, UK, Qatar, the Philippines, and Sri Lanka in the past seven months and launched a section for Johannesburg in South Africa on April 10, this year. After the initial success of our Dubai section in the international markets, we gained the confidence we needed to further our international expansion, and haven't looked back since.

Q3) Zomato has forayed into international markets. What fruit has this venture borne?

A) We have been focusing on increasing our reach beyond India over last one year. Dubai was our first choice as it is one of the most popular business and tourist destinations globally, and has a very vibrant restaurant industry. The emirate’s high internet and mobile penetration makes it a great market for us. Dubai was the first market out of the gate, and the overwhelming response we got in the emirate has vindicated our decision to expand beyond India. Post Dubai, we went on to launch operations in Abu Dhabi, Sharjah, London, Doha and Colombo. The response we have received in all these cities is way better than we expected. In our first month in London we saw over 100,000 users on the London section of our website; we have over 500 mobile app downloads a day in the Philippines in less than one month of our launch there; and we are already topping the charts in South Africa where we are hardly a few days old.

Q4) How has your portal been received in the markets in the UAE?

Now, we're in 21 cities in seven countries, serving over 11 million users a month

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In just about seven months, the response we have received from the markets in the UAE has been excellent. We are already the largest restaurant search and review website in the UAE, with 75 per cent of the market share. Our Dubai section alone gets over 300,000 users a month across the web and mobile platforms. Information for approximately 5,000 restaurants is available on our Dubai section, clients are coming on board steadily, and we see it as a key centre for our business and user base. Abu Dhabi and Sharjah, although much smaller markets right now, are increasingly becoming significant source of traffic for us. In fact, we are in the process of opening an office in Abu Dhabi shortly to cater to that market separately.

Q5) Share with us your strategy behind entering each of the six countries Zomato is present in. Why have you chosen London for example, or what makes Sri Lanka a viable destination to do business in?

A) We actually do a very detailed on-the,-ground study to evaluate a market. This means picking a list of cities that we think are feasible on a macro level (demographics, regulatory, etc.) and then sending people to go through our entire operations process – from collecting information to talking about possible partnerships with local merchants to engaging with users by showing them the product. It’s like doing a miniaturised city launch. This is the best way for us to figure out what customisations a local market may need, and, in the process, it gives us a very good idea of the market. We analyse our competition, understand the advantages we have and the limitations we might face in a market and, above all, if there are enough merchants willing to play ball. London was a slightly different case, where we were up against fierce competition from players who have been around for a long, long time. That's where the comprehensiveness of our product

gave us the confidence we needed to jump headlong into the market. We now have comprehensive information for over 16,000 restaurants in London, and this is almost twice as much as the next biggest player.

Q6) How is Zomato funded? Please take us through your funding sources from the beginning till date.

A) So far, we have received four rounds of funding from Info Edge (Naurki.com) amounting to INR 86 crores (USD16.5 million) in total.

Q7) You are in an expansion mode. What next?

A) We are currently focused on furthering our international expansions. We just launched the Johannesburg section as our first market in South Africa. We hope to expand operations to other African countries in future. Also, depending on the response we receive in London, we plan to extend our operations to Canada, the US and Australia.

Q8) Anything planned specifically for the UAE market?

A) We have already customised our portal specifically for the UAE and launched an additional Sheesha filter to the website and mobile apps, as Sheesha Cafes are

very popular in the UAE. We will soon introduce a sports bar filter as well as a water view section specifically as our users would like us to introduce these features. We believe in staying in constant touch with our end users, as they are our best source of feedback. Also, we are in the process of bringing print versions of Zomato to the market in the UAE in the near future.

Q9) On a personal note, are you happy with the way business has turned out for you?

A) Yes, very much! It's natural to have detractors when you give up a comfortable job to start something of your own. But it's been a fantastic run, the response has been overwhelming at times, and I think the work we do speaks for itself. We started out of a living room and it took us almost two years to actually move into something that resembled an office. Now, we're in 21 cities in seven countries, serving over 11 million users a month, and are over 200 people strong as a company. As a company, we like getting things done, rather than working on processes to get things done. That means we're always on the move, and looking forward to the next challenge, something I personally really enjoy!

Success Story

The fact that we launched our product after we identified a gap is what has made our business sustainable.

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

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Bridging SMEs digital problemsdu has always kept SMEs at the forefront of its plans. It has worked in coordination with numerous bodies to bridge several telecommunication gaps, providing a platform for young entrepreneurs to reach their true potential. Going one step further, du has launched The Entrepreneur Plan in conjunction with Dubai SME and Microsoft; a one stop ICT (Information, Communication, Technology) package for UAE start-ups. The Entrepreneur Plan has enabled du to become a cloud space provider in the SME sector for the very first time. Nikhil Pereira spoke to Hatem Bamatraf, executive vice president Enterprise Business, du, following is an expert.

SME Booster

Q: What drove du to launch The Entrepreneur Plan?

A: One of the key objectives for us is to be a one-stop shop for SMEs. With The Entrepreneur Plan we are giving the customer convenience and flexibility by delivering customised and focused products for the SME sector. If an entrepreneur is going to get a new business license, we want to make sure he also gets a premium smart phone, online presence (this is possible because we provide an entrepreneur with a domain name, a website builder template along with online storage space), and finally the tools to facilitate collaboration (ideally, through 10 email ids which we provide) The entire cost of this full package is AED 11,000 dirhams, but the entrepreneur only pays a nominal AED 2,200. Apart from the significant savings in cost, customers are saved the hassle of meeting four to five different providers to obtain all these services, which helps him focus on building his business.

Q: Did du work with the government authorities to formulate the plan?

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SME Booster

A: Yes, we worked in collaboration with the Department of Economic Development (DED) and Microsoft. We collaborated with Dubai SME (the DED agency mandated to develop the SME sector) to be one of the key proponents to bring the companies digitally into the market place. Key elements are availability and distribution, and when we worked on the concept of the plan, we found it useful to have DED as one of the main channels to distribute the product itself. This makes it really easy, as when a prospective entrepreneur is coming to register for his license he can also subscribe to The Entrepreneur Plan, and get a huge part of his organisation up and running. By collaborating with Microsoft we ensure a high quality online experience for the SME. Even the website builder for that matter is a Microsoft product, and the email ids are hosted on the Microsoft Exchange platform.

Q: The Entrepreneur Plan is virtually a government plan from du, given the subsidized nature. But is the telecom giant plunging into a loss with this plan?

A: This is our way of empowering companies and fostering the growth of SMEs in the region. In the broader picture we want to position ourselves as a major ICT player in the SME space, not just restricting our image to that of a telecommunication player. With this plan, we are offering cloud services to SMEs for the very first time. Taking a leaf out of your publication’s philosophy, this is how we are embedding innovation in our DNA.

Q: What has been the response of SMEs who have taken the plan?

A: We have just launched it so these are early days for the plan, but the initial feedback we have received for The Entrepreneur plan is extremely positive.

Q: Du has worked for the SMEs in the past which is reflected in the television show ‘The Entrepreneur’.

A: The Entrepreneur plan is a follow-up to our successful television show – The Entrepreneur. We created a really high brand salience with ‘The Entrepreneur’, and so, to build on the platform, we have launched a plan which signifies the culmination of results. We wanted to invent an innovative platform with new set of audiences and entrepreneurs who want to take it to the next level. We want to achieve this with a one-on-one marketing concept hence we had the show and now this plan. No body really does anything for the SMEs, everyone promises but the results are not there to be seen. Hence with the television show we did not only want to give them a cash reward but more importantly we also provided the winner of the show priceless services such as office space, media spend, advertising creation and financial mentoring sessions. We also want to provide SMEs with a platform where they can network. This will help them grow their business and in turn explore new commercial avenues. We go beyond being just any other telecommunication service, especially for an SME.

Q: The Entrepreneur Plan is a step in the right direction for SME amelioration, what more can be done for the SMEs in the region.

A: If you look from 2010 to 2011, the SME space has grown from 30 per cent to 60 per cent which is a clear indication of the future potential. Sustaining the growth of

the sector is very important. Dubai has clearly done a lot up until now but there is always scope for taking it to the next level. Obtaining a license has been simplified along with creating instant digital presence for an SME thanks to The Entrepreneur Plan. However, an entrepreneur still has to go through a lot of channels to set up the other facets of his company, for example setting up the interiors of the organisation. Maybe the government can look at a one-stop solution for the companies which will make setting up your organisation a simple task. Secondly, financing options should be improved upon giving SMEs more options while simultaneously focusing on mentoring and guiding the young executives and CEOs. This will give rise to some genuine innovation from the small and medium enterprises. There also needs to be strategic direction to attract four or five big companies that will result in the creation of thousands of jobs. This will automatically develop the ancillary industry.

Q: What has been du’s success mantra?

A: There are several factors. Firstly, we lay strong emphasis on innovation – we analyse how we can create incremental value for our customers. The second crucial factor is passion and the dedication of our team, that’s made up of self-motivated individuals and lastly, every step we take is with confidence which reflects in our products.

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Five ways to boost your savingsRupert Connor explores various types of investment to help you save valuable capital.

Long-term investments are not always a good idea: many people who are sold 25-year plans soon realise

the folly of their ways. Having a disciplined monthly savings or investment plan and sticking to it over a long period of time is always advisable, but some contractual schemes should come with a wealth warning. Non-residents in the Gulf region are often well advised to hold their money offshore. Typically run from well-known tax havens such as the Channel Islands, Isle of Man etc – where a higher proportion of your money is protected by law – investment accounts are predominantly made up of two types of plans: contractual and flexible (non-contractual). Flexible investment plans are the ideal place for people looking to make hay while the sun shines, and are not very active investors after making their initial deposit. Here, you still receive returns on your money, in line with how underlying investments perform, but can withdraw funds within allowed limits penalty free.However, these may not be the most ideal vehicle for longer-term investors. Contractual plans reward investors with generous bonuses for tying their money up.

In many cases, though, these people are encouraged to set a term for as long as 20 or 25 years often with false assurances that you can take your money out early without penalty.

Be particularly aware of an ‘18 month plan’ with a 25-year term: if you sign up for this, you’ll have agreed to make every payment due from the date of inception until the specified maturity date and not

Wealth Management

47


simply for the first 18 months.If you don’t meet this requirement, you will most likely be liable to pay penalties and these could wipe out any investment returns – and some of your initial capital – upon encashment. Follow this five-point guide to avoiding the pitfalls and making the most out of regular savings:

Invest regularly A disciplined savings approach leads to optimal benefits. Take for example, an endowment policy for the purpose of repaying a loan or a property purchase upon maturity.You keep up your monthly contributions for the full term of your policy to maximise your chances of achieving this goal rather than discontinuing the endowment policy with potential exit penalties. Similarly, an offshore investment plan can create the incentive to maintain the payments and, therefore, achieve the original objective.

Boost your returnsIn addition, saving regularly can significantly boost your returns. This is due to what is known as ‘dollar cost averaging’.World stock and bond markets inevitably go up and down, but by regularly drip-feeding money into your chosen investments, you are able to smooth volatility and mitigate risk. This is for two reasons: when markets plummet, you’ll merely be getting more for your money, and as you’ll be committing funds on a regular basis you don’t need to worry about investing all of your savings at the top of the market. In this way, dollar cost averaging means that you don’t have to concern yourself with fluctuating markets or identifying the best time to invest.

Know what you can affordIn financial planning terms, it’s important to cover short, medium and long-term objectives. Here, much is based on what you can

Wealth Management

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.

locked-in commitment to long-term savings, is incentive in itself to build wealth for the future.However, in many cases, a five, 10 or 15-year term is long enough to commit for.

Seek sound adviceIt’s best to be aware of all the risk factors when taking out a contractual plan and understand the commitment. Always ask to see your adviser’s qualifications and how long they have been qualified for within the offshore market. Find out the reputation of the company they work for, and make sure that it has all the correct licences in place to be providing financial advice.

afford. If you know you’re going to need some of your money in the shorter-term, then don’t commit to investing large amounts over the longer-term or the penalty may outweigh any benefits.

Don’t lock in for too longOffshore contractual investment plans can be a good option for those who can view long-term savings with a degree of certainty. This type of product, with its

Non-residents in the Gulf region are often well advised to hold their money offshore.

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Insurance

Read the fine printWhile roaming with a magnifying glass in your pocket is not always feasible spending some time reading the terms and conditions could save you valuable cash in the long run explains Sandi Saxena.

“I was told this by the sales representative and so I signed” Let’s be honest how many of us

just sign papers for bank loans, insurance companies, investments, sales agreements and the likes, without as much as glancing at the fine print. All I can say if you are foolish enough to commit on the dotted line based on someones promise, you have to simply bear the consequences!! Lets take a closer look at the insurance business. Insurance acts as a cushion that covers your risks and protects you. But like many financial products, your cover — be it life, health, motor, property or householder’s policies to name just a few , come with fine print exclusions that could, in some cases, lead to the rejection of your claims on technical grounds. Every insurance policy has four parts: Declarations, insuring

agreements, exclusions, and conditions. Insurance policies contain many common words that have special meaning within the context of insurance. Most policies contain "Definitions" where they explain the special meaning of the designated words. An insurance policy begins by declaring what it covers and then proceeds to restrict, limit, and exclude coverages. Therefore, you cannot just read the insuring agreements to understand the coverage. You must read the entire policy and refer back to the various insuring agreements and

other provisions. The more common types of Insuarnce are Life, Property, Car, and Health. Life insurance is a simple product. Generally speaking it pays out if you die. Some insurers may exclude certain people in certain circumstances if they are deemed to present too great a risk. An insurer may list other situations in which it might not pay out, for example if the insured party was in some way culpable for their own death, some policies will not pay out under the following circumstances:If the insured party’s death is due to alcohol or drug misuse.If the death occurs as a result of involvement in war or terrorism.

If the death is the result of suicide or self-inflicted

injuries.If the death is the

result of gross negligence or

a similarly reckless

act.

Full disclosureInsurers have the right to cancel any type of policy if they find that a customer has not disclosed “all material facts” when applying for cover. With life insurance, applicants must be honest enough to tell insurers about any serious health problems. Other clauses in your policy’s terms that you should check are premium levels, are these guaranteed to remain level for the duration of the policy? Can the insurer reassess them after a fixed period of time? The cost of cover

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Insurance

can increase substantially if you have suffered any health problems in the interim.

Household insurance This policy covers the entire range of risks that a householder would wish to cover-loss or damage to the building and its contents, burglary, risks to jewelry and valuables, glass, domestic appliances, baggage, and so on. Here are some twists you should look out for. For the building and its contents, only the contents mentioned in the policy are covered; loss or damage to livestock and pets is not accounted for. Nor is damage to jewelry and valuables due to cracking, scratching or breakage of parts, and breakage of plate glass during removal and/or repairs, disfiguring or scratching of glass other than fractures extending through the entire thickness of the glass. The cover for breakdown of appliances and television excludes damage to external fittings like antenna and cost of transport to and from the repair shop.

Motor Insurance Comprehensive or Third-party liability: Claims can be rejected if the person driving the vehicle at the time of accident does not have a valid driving license or was drunk, or if the policy premium has not been paid beyond the grace period. Some policies do not insure cars when driven off-road. This might include parking your vehicle on the sand behind the building. Even if an insurance policy insures vehicles for off-road driving, don't expect it to apply if you damage your 4 wheel drive SUV while dune-bashing in the sand behind your house! Drinking + driving + crashing = no insurance (including the AED 200,000 blood money you have to pay if someone dies).

Medical Insurance Most health insurance plans don’t cover pre existing diseases or injuries at the time of taking the cover, non-allopathic medication, congenital diseases, and cosmetic/aesthetic or related treatment, pregnancy, dental and eye test

Other slippery placesSoftware agreements- given the multimillion-dollar costs of today's software deals, customers often devote surprisingly little time and resources to scrutiny of contracts that are rife with obscure terminology, vague expansion charges, and mind-boggling license conversions. As a result, they end up paying in ways they had never imagined long after the deal is signed.

Exclusions Every insurance policy has exclusions or policy provisions that eliminate coverage for specified exposures. Exclusions clarify the coverages granted by the policy. Most policies have a section entitled, "Exclusions." However, an exclusionary provision can be anywhere in the policy.

Conditions Within an insurance policy there are various promises made by the insurance company. The company will impose certain requirements or conditions on the insured, such as premium payment or duties to

follow after a loss.

Before buying any coverage try and follow the Checklist:

Does the insuring agreement cover each expected claim?

Is there any exclusion or other provision that eliminates or restricts coverage?

Are there any exclusion exceptions that restore coverage?

What policy conditions must the organisation comply with?

Are the people or operations affected by the conditions aware of them? For example, if the policy requires that a burglar alarm always be operational, have you informed the office manager, maintenance staff, or other appropriate personnel?

If the loss is covered, is it deductible? How much is it?

How much will the policy pay for each loss?

Taking the time now to understand your policies can pay off in the long run. So sit back, relax, and try to enjoy the reading!

An insurance cover is only as good as its exclusions. A clear understanding of precisely what your policy doesn’t cover will, therefore, shield you from unpleasant surprises.

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. Sandi can be contacted by email ([email protected]) or by mobile (0506517963).

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Insights to grow your business

Sales and Marketing

In the previous articles published in this magazine, we have looked at some basic principles that you should

adopt in your business. We looked at why all businesses are in the sales and marketing business and how to establish an effective sales and marketing function. We then discussed why even small businesses need to establish good

systems and processes to deliver sustainable growth. In this article, we will look at how to position your business. The simple fact is that all of us face lots of competition and the problem is “why should anyone select me, rather than the other guy? We all have about the same level and quality of service, we all have prices within the same basic range,

we are all equally accessible, and so on.”

You cannot compete on price aloneMany business leaders answer this by saying “Customers tend to choose the one with the lowest price.” But this is simply not true. Study after study shows that price is seldom the primary

Simon Hodges follows-up to his previous article with more insights on how to make your brand stand out with effective marketing tools.

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Sales and Marketing

factor for customers in making a decision. If it was true then no luxury, premium or high quality goods would ever be sold. The fact is, there are many facets that come to play when a purchase is considered, and often the choice is merely random. While not everyone is a discriminating shopper who weighs every factor before choosing a product or service, everyone is looking for all round value rather than just simply the price. This is where positioning comes in. If you want customers to choose you, then you need to position yourself against the competition in a way that makes you stand out, and which gives good reason for people to use you. One of the best ways to do this is to become an expert in your field. For you personally, this can be achieved by writing a book, publishing a regular newspaper column, giving seminars or simply by your business providing your customers with great service levels.

Through positioning SMEs can offer something large businesses can’tAs you become the recognised expert, you can build on your reputation by introducing tailored advantages within your business that benefit the customer. Large businesses cannot easily adapt to changing clients, and market trends, which puts you at an advantage. Remember, shopping, dining and buying is as much an ‘experience’ as it is anything else. Make your selling environment a special experience with a unique personality, and you will build a core of loyal customers, who will not only come back again and again, but spread the experience about your place by word-of-mouth, which is the best kind of advertising you can have.You should not only create such an atmosphere, but advertise it as well. This is classic position marketing – you position yourself against your competition in a way that makes you stand out. You tell your market base audience that if they’re tired of being ‘one of the crowd,’ and want a unique experience, they come to you.

Product knowledge is paramountMore than ever with the growth of information on the internet, customers need a lot of questions answered. Thus the business who does all they can to clear any and all questions helps the customer make a fast and informed decision they can feel good about. In other words you have to educate your customers. Tell them about the effort and skill that goes into your product or service, the features, the benefits and what these benefits mean to them. It all adds dimension, value and power to your marketing message. Most of the time, the problem is simply that the sales pitch is indistinct. For example, read the following ad headline: “We sell car insurance for less.” The statement makes a vague and general point and it’s practically invisible to the reader. After all, everybody claims to be “selling for less.” A better headline would be “Keep an average of AED 1,000 of your own

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.

money and get better insurance coverage on your car.”With this, the customer can visualise just what they will save or gain when taking out their car insurance. Communicating and spelling out your offer clearly is as important as the offer itself. Specify not only the benefits but how these benefits apply and can be utilized by the purchaser. Details, if you articulate them well, help your potential customers know exactly how they benefit and exactly how they gain by doing business with you. So, know what sets you apart and make sure your customers understand this. Articulate this well and it will almost compel prospects and customers to buy from you and not your competitors It’s a powerful combination that you can use to make your operations stand out and capture a loyal band of customers and repeat business. See you out there…

What we are talking about here is a combination of three marketing concepts

• Unique Selling Proposition, • Position Marketing • Persona

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SMEs effective marketing: Where to start?

Sales and Marketing

Zed Ayesh gives a thorough run-down of effective marketing practices.

For many entrepreneurs marketing is an everlasting challenge, both internally and externally. Internally

because SMEs don’t have enough capital resources to successfully gain the attention of their target markets, while they also lack the required skills to successfully promote their products and find the best ways for allocating financial resources for marketing.

They also find it difficult to coordinate their spending so that all target markets get consistent messaging. Besides, SMEs are usually disorganised; they lack standard measurement tools for reviewing marketing efforts, while lacking control over marketing activities. External challenges could be many. For example, one of the external challenges could come in

the guise of customers becoming increasingly demanding, seeking better quality and reliability of products and services they buy. Customers’ wants, needs and expectations can change rapidly, as newer products and services come to the market, while an SME could face competition from well established players that offer more choices and more alternatives. Competition in sales is intense, as

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Sales and Marketing

in the modern market place, goods do not just compete locally, they do globally: today’s customers are overwhelmed by the large number of advertisements in various media, and business practices are significantly impacted by internet and e-commerce. Entrepreneurs are constantly looking out for the most effective ways to market their products and services. Unfortunately, many of them get marketing, promotion and advertisement all confused with each other. I want reiterate, here, again that any marketing strategy has to primarily deal with: product (or service), target market, packaging, pricing, distributions (place) and promoting the product (service). If you want to promote your products and services, then you focus on advertising, public relations (publicity), direct marketing (including web marketing), personal selling and sales promotions. In short, promoting a product (service) is the bridge between an entity, its product (service) and its target market. What differentiates a successful entrepreneur from a failed one is his better understanding of the marketing mix and the implementation of marketing activities in relation to his business compared to the latter. We also come across a number of entrepreneurs that are content to struggle while waiting for their business to take off. But nothing happens unless there is an effort to make it happen. Below are some tips for entrepreneurs on how to plan their marketing and where to begin.

Core competencies (Strength):It is the source of sustainable competitive advantage; it is the collective skill set and technology that enable an organisation to deliver value to customers, and without core competencies an organisation will not have the competitive capacity to sustain itself in the market. It will not be able to offer anything different from the market; it is all about how a business creates an edge over its rivals. Core competencies can be one thing or many things at the same time, such as: job knowledge,

quantity of work that can be done at a period of time, communication excellence, customer service, problem solving skills, attention to details, flexibility, organisation, quality control, responsiveness and innovation. Market segmentation (Position):It is a marketing strategy that involves dividing a target market into subsets of consumers that have common needs, then design and implement communication to target specific customer segments, addressing needs and/or desires that are believed to be common in these segments by using communication that is fit and compatible with these chosen segments. Market segmentation can be done in many ways; some are more complicated than others. We can have gender, age, income, martial statutes and ethnicity segmentations; then one needs to decide which organisation is providing for these segments, and what is it that an organisation offers in this segment.

Differentiation (Why):This is, probably, the most

important question that an entrepreneur should ask himself or herself before starting a business: “Why a customer will buy my product (service) and not of my competitors?” If an entrepreneur does not have the answer to the question, then it will be very difficult to market his product. In other words, if your business is the same as the next guy who has already established his name in the market with more resources than you, offering the same product or service, then your chances of survival are slim. Differentiation increases the perceived value of a product as a way to entice buyers to choose your product over a similar one offered by competitors. Differentiation doesn’t always mean ‘better’, in most cases it means being ‘different’ from the other offerings. It cannot be the same consumed words like ‘better product’, ‘better service’, ‘best quality’ and ‘good value’. It has to say why a product is different from the one offered by competition. For example, a business can communicate to its customers that they have the best service because they offer longer working hours, guaranteed return policy, a twenty-four hours hotline, free delivery, free assembly or other facilities based on the business core competencies. Entrepreneurs can use many different methods to differentiate their products and/or their businesses such as: enhancing functional design, adding more features, taking advantage of distribution timings, expanding distribution networks, product customisation, enhance customer support and service, operational excellence and distribution location.

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.

What differentiates a successful entrepreneur from a failed one is his better understanding of the marketing mix and the implementation of marketing activities

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Personality (Identity):The business personality is not just the use of logo and colour. It is the way a business expresses itself, its core values and characteristics. It is the marriage of the logo, colours, name, publicity, profile, packaging, slogan, style, advertisement, practices and promotional materials, which have to all speak the same language in the same tonality. Does it all reflect the business values and what a business stands for? Do all employees, including front office staff, middle managers and top managers reflect the same personality? Is the business personality clear and obvious? All these questions should be addressed when thinking about any business and its marketing efforts and effectiveness.

Communication (External & Internal):An entrepreneur also needs to work on creating communication plans to attract customers to his product: communication is the bridge between a business, its employees, suppliers, products and the targeted market. The objective of any business is to create sustainable profits through generating sustainable revenues and, for that, entrepreneurs must focus on the four steps, mentioned above to ensure satisfaction and, in turn, repetition of business. It is very important for a business to communicate internally with its employees also along with other stakeholders and, externally, with target customers, competition and suppliers. Internal communication can be done through training, email updates, recognition programs, events and meetings, welcome packages, newsletters, manuals, internal memos and promotional items. It is important to understand that employees are a crucial part of marketing your business. Employees are the front line of any business, they are where the business happens, they are where the business-customer interaction happens, it’s up to an employee to make a difference in your business and take it to the next level up or down. It is important to know that the core competency of a business compromises the collective skill set

of that business, the efforts made and the employees themselves as a crucial part of the business personality. External communication is the way a business can tell its story. Advertisements can talk about its core competencies, its operational excellence, its differentiation factors and how it can be the answer for customers’ needs, wants and the way it will solve their problems. An organisation can communicate with the outside world in several ways. The most effective methods that don’t require huge investments can include, but is not limited to: business cards, signage, direct mail, events, existing clients, inserts, packaging, mobile phones, local community communication, newsletters, web marketing and employees.

Sales and Marketing

Measurements (Metrics) It is necessary for any organisation to keep a track of how good a job it’s doing in different areas of its business. When the going is good, entrepreneurs are not too bothered about measuring an organisation’s efforts, not on any level; but when an organisation cannot produce enough income to sustain itself, then all aspects of the business activities become important. One must remember that marketing activities shouldn’t

be treated any differently from any business activities. It is important to understand that a good marketing strategy can make a significant difference to the bottom line of a company, and intelligent and focused marketing activities created from such a strategy are essential to attain the desired results of growth and profitability. Failure to do so will be like shooting darts in the dark, you don’t know if you hit the bull’s eye or not.

An entrepreneur also needs to work on creating communication plans to attract customers to his product.

Intellegent ME Business Optimiser - 260x190-E.indd 1 2/14/13 2:10 PM

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Sales Strategy

Termites and our personal brand

Phil Bedford takes a through look at how a company can increase its credibility and reputation with the right ingredients.

Many companies spend a small fortune building their brand, whether it is by design or

through their actions and resultant reputation. It’s a wondrous thing to be known as a company that “walks the talk”, being known as having great customer service; the place to go to if you want things done right. Sometimes it’s the little things, like the guy who fixes my computer turning up at exactly the time he says he will. Rather than other companies that state “sometime between 8am and 2pm sir” and then the follow up phone call that says “I came round at 4 pm but you weren’t there” Hmm, I think we have all experienced it at some point or the other! When this wastes our time, our precious time, what do we think of them?Often these are the first steps to real loyalty from customers, which is not just the perceived loyalty we mistakenly think we have because customers keep buying from us. More often than not, they continue to be customers because they do not yet have another option.

Customers who stay with a company through thick and thin; customers who will stay with your organisation even when there are cheaper products in the market or other brands claiming enriched options. That is when you know that you have a loyal customer-base even when there are better alternatives. So what about our own personal brand? This has always been important and even more so now with social media impacting our lives the way it has. Our actions good and bad can now be amplified like never before. Unfortunately, people hear more about the negative actions than the positive; because that’s the way we tend to work as human beings. Professional behavior and expectations seem to be different depending on whom you speak to. I was always bought up to believe that a reasonable time to reply was within a maximum of 48 hours, but I personally try to reply within 24 hours. I know other people who simply do not reply at all and simply excuse themselves saying “sorry I had too many emails and I

was too busy“ In my mind I think, “well you must be too busy to handle any more business” or “you are just so disorganised that maybe you won’t reply to people I may refer to you” the result being I do not refer them to such an organisation. By setting this standard on myself, my contacts now know that if I haven’t replied within this time then the message hasn’t got through or there has been a problem. In a world where so many introductions and requests are sent by email we have to wonder how many opportunities have disappeared into cyber space and we weren’t even aware we had an opportunity and all because of internet failure or spam filters. I have my safe guard in place- its 24 hours and my trusted network know that. By setting standards for our behavior we impact the perception of the world around us. If we also believe the law of attraction then by behaving and welcoming certain behaviors we also attract people of a similar belief. If we are looking for people to

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Sales Strategy

want to do business with us and especially refer people to us, then we need to consider what our level of credibility is with our network. There is a difference. We sometimes buy from a company or individual we find less than ideal professionally, because we have no choice or they are the best of a bad bunch. Yet if asked to refer that same company, we most probably will not. This is because to refer them we put our own reputation on the line or we feel in control of our own risk, but won’t impose that risk on others.So, if we want to grow our business by referral, and ask other people to put their reputation on the line then we have to take our credibility to another level- take it seriously. We cannot afford to fool ourselves that what we are doing is ok, just because some people buy from us. Dr. Misner states “Credibility is the quality of being reliable, worthy of confidence. Credibility grows when appointments are kept, promises are acted upon, facts are verified, and services are rendered.”

How to build credibility? DressDress appropriately for a professional engagement in your field. You can always dress down if you are overdressed, but not visa versa. Consider your audience and what they would feel is appropriate.

Turn up on timeTurn up on time or at least a few minutes early. When we turn up late what messages are we perceived to be sending?• I don’t respect you

or your time• I cannot manage

my own time

Just turn up !Confirming our attendance at an event and then simply not showing up may not appear important. Organisers of events are often very connected people. They will know who has not turned up and will have locked this away in their

WebsiteDo you have a cheap one with poor functionality or a professionally designed and operated tool that reflects your business brand? A website is often the first place people will look, after they are referred to you to checkout your credibility. I do know people who do not have a website and are reasonably successful. It does, however, make it much harder to refer them to people with whom I do not have such a strong relationship. Arguably, they could be more successful with a website!

GroomingPersonal grooming is one area that is often overlooked. Polished shoes, well shaved, clean teeth, fresh breath, clean nails; shirts and suits, and in fact any clothes that are in good condition.

Do what you sayIf you say you are going to do something, then do it. If you don’t want to do it, or can’t do it, then say so. People will respect this. As Yoda said, “There is only to do or not do, no try.”

Walk the talkIf you expect other people to do it, then do it yourself. I remember a web design company that didn’t have its own website.

In summaryPeople are making assumptions about us at a conscious and unconscious level all the time. Hence, they may not even know why they do not feel comfortable with us or don’t trust us. It could be one big action or many little factors that stops the relationship in its tracks, just like termites eating away at the foundation of a building. Often we just don’t see it until the building collapses. It’s too late then.

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.”

brain for future reference with a warning attached. They will know people who need our service, but what’s the chance this organiser will refer us? Especially, if a number of people do not show on one night and it left them in a financially awkward situation. If we can’t make it we should advise in advance. Things happen, sometimes we just can’t attend.

Replying to communications ( phone, email, social media , texts etc)Reply to communications as soon as possible, maximum 48 hours. Especially, if there is a direct question which has important repercussions. I do not include in this replying to spam.

Business cardWhat does your business card say about you? What quality of paper is it written on? Do you have a proper email address or is it just [email protected]

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Why corporate governance?Corporate Governance

John Merrigan puts common myths of corporate governance to rest and takes an in depth look at its benefits.

The life of an entrepreneur and a business owner is incredibly hectic. Sometimes the many

challenges they confront on a daily basis make them look like certain cartoon characters where trouble follow everywhere these characters go. As soon as one issue is dealt with, another pops up. In fact, when you look at it, the topic of corporate governance may seem like a low priority compared to trouble shooting. However, I would argue that the time spent on governance is worth it as it brings focus in a business, peace of mind and significant added value.

Concern 1: It is too early for my business to set up a corporate governance structure. It is never too early to take the first steps to establish a corporate governance framework in your business. As a famous Chinese proverb goes, “The journey of a thousand miles starts with the first step!” The key point is that governance is a journey that never ends, and will evolve as your business grows and the operating environment changes around you. Indeed, it can be argued that making an early start will make it easier because there is less complexity involved and the basic framework can be put in place more quickly.

Concern 2: The cost of corporate governance is too high. Some of those against corporate governance argue that costs are not justifiable. They object to the costs of external advisors, legal fees and the appointment of staff to implement corporate governance, among others. But while raising these objections, one forgets how much

one lost when mistakes were made in business, not just financially, but in terms of time that was spent on damage control and fixing the problem, forget the loss of reputation or lost customers. For example, signing a badly drafted legal agreement, losing a key member of staff, fraud, or a business expansion that failed, or a new IT system that did not work. More often than not, the root cause would have been some failure in corporate governance. Whatever governance structure you put in place, it should be fit for a purpose relative to the size and needs of your business. A well designed framework that starts small and at low cost can be augmented in line with the growth of your business and what can be afforded along the way. Consider corporate governance on the same basis as an investment in an accounting system or a good fire safety system in your office. It is essential, not a luxury to protect your business

Concern 3: Corporate governance is only for large organisations and does not apply to small businesses. It is true that until recently the leaders is the field of corporate governance tended to be large corporations in general as it was driven by regulation and risk management for the protection of long-term shareholder value. In contrast, a study by the IFC in 2011 showed that in developing countries where small businesses are mainly family-based, only 12 per cent make it to the third generation! This startling statistic increasingly means that progressive small businesses are embracing the principles of good governance to ensure continuity and future success. Further

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Corporate Governance

evidence of this is shown in Dubai under the SME 100 initiative where the Department of Economic Development places corporate governance as one of the leading criteria to evaluate companies in the rankings.

Concern 4: Corporate governance adds no real value to my business. Corporate governance operates on two levels to add value to your business. Firstly, similar to insurance, it is a proven tool to manage risk that will give peace of mind. Secondly, a strong corporate governance structure, which is implemented over time, will provide comfort and be attractive for prospective investors or lenders when they evaluate your business. Many international studies show that well-governed companies produce superior profit returns, and there is evidence that prospective investors pay premiums of as much as 30 per cent for well-governed businesses in the MENA region.

Concern 5: Corporate governance is theoretical and has no practical application in my business. Corporate governance can indeed appear remote and complex as a concept. However, when simplified as an approach to define the rules of operating a business, the practical impact can be seen in many ways. For example, an effective board of directors or an advisory board adds significant value to business owners, providing the missing expertise as a business grows. Recently, I saw a very practical demonstration of the importance of governance when a venture capital company requested an SME client for the minutes of board meetings for the past three years, as part of the purchase due diligence process. The client did not have a working board in place, but needless to say, they quickly signed up to begin the process! In future, lenders and investors will demand more structure and transparency in terms of how businesses are run in order to engage with SMEs.

Concern 6: I have no time to set up a formal governance framework in my business. Corporate governance does

require time away from day-to-day activities to carefully and objectively consider the long-term vision for any company, and how

to develop an implementation roadmap. However, this up-front investment in strategic thinking will quickly result in time saved on operational matters, and in turn free-up time for a business owner/entrepreneur to do what he does best; working “on” the business and not “in” the business. Also, as it has been said before, make sure that it is a team effort with key aspects of the governance plan delegated among management and staff.

Concern 7: I don’t want any “outsider” to know about my business or to tell me what to do. Corporate governance is a sensitive matter that often involves sharing confidential materials and information about a company. Sharing it with an “outside” advisor or bringing in new directors can be a daunting prospect. Take time to develop trust and formalise relationships using written contracts, clear performance metrics and confidentiality agreements. The benefits of involving experienced advisors will add value to your business and it is an inevitable part of growth. Be trusting, but always measure and check along the way.

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.

Consider corporate governance on the same basis as an investment in an accounting system or a good fire safety system in your office. It is essential, not a luxury to protect your business.

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7 corporate governance mistakes that trip up SMEsMark Fisher lists out the seven pitfalls that SME’s commit that end in their failure.

Brilliant businessmen can be impatient of rules and process. They get so carried away by the adrenalin of

their ideas and ambitions that they sometimes neglect to create the structures that are needed to maintain success, once it has been achieved. They fail, in other words, to get their company’s corporate governance right. Below are seven mistakes that entrepreneurs make far too often. Some can bring a business crashing down, while others eat slowly at its foundations:

No succession planning This is one of the most common, and in many ways the saddest, causes of SME failure. After years of building a business, its leader passes away or is forced to step back through ill health or age, without anyone knowing who will,

or should, take over the reins. In-fighting involving family members and directors often follow, causing the business to suffer as much as personal relationships. This disaster can be so easily avoided if the business owner makes his wishes clear beforehand, backed by arrangements to ensure they are carried out. Dictatorial decision-makingA company owner’s authoritarian tendencies are a matter of personality. But they can be held in check by sound corporate governance structures, to the benefit of the business. These can include independent directors (appointed by the owner in one of his less dictatorial moods) and properly conducted Board meetings, with clear and comprehensive agendas and time

allocated for discussing them, together with accurate minute-taking. No clear reporting lines Many businesses achieve extraordinary success in the early years without responsibilities and duties being clearly demarcated among the staff. It is easy for owners to conclude that this informality and lack of structure is one reason the company is growing so fast, and they may well be right; but only until the company reaches a certain size. After that, the executives at the top cannot control what is going on without formal reporting lines, job descriptions and performance appraisals.

Weak communications We’ve probably all had the

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annoying experience of calling a CEO only to be told by his PA: “He’s travelling,” in a tone that suggests he is visiting the dark side of the moon and won’t be contactable for weeks. A CEO should ensure that communications don’t break down when he is away and that if he really is unavailable, other executives are on hand to show the world that the company is functioning normally.

Box ticking Because procedures are an important part of corporate governance, some people think that following them is all that matters. But procedures alone are of little use if applied in the letter, but ignored in spirit. Just ask some of the large investment banks, whose cohorts of well paid compliance officers with bulging rule books were no match for bankers who were determined to go their own way. SMEs don’t need to worry that they might not be able to hire the most expensive compliance expertise or implement exhaustive processes; a culture of integrity and common sense is probably more important.

Ignoring available adviceSo how does an SME find out what good corporate governance consists of and how to implement it? There are many readily available sources. Dubai SME has published a detailed Corporate

Governance code for SMEs, while the Middle East Investor Relations Society also offers good advice. Hawkamah, based in the Dubai International Financial Centre, is dedicated to promoting good corporate governance in the region. Good quality advice is available at reasonable cost from compliance advisory firms, tailored to the specific needs of your company. And as a business grows, an internal compliance function with proper expertise is vital. So there are no excuses for failing to implement good corporate governance before it is too late.

Poor treatment of investorsIncreasing numbers of SMEs in Dubai and around the region are considering an initial public offering (IPO), especially now that NASDAQ Dubai is planning to set up a dedicated market for the sector. Going public is a key moment in the life of SMEs, not least because they now have a new class of stakeholder with an interest in the company, i.e. investors who have shown their faith in the business by putting up hard cash. These people deserve to be treated with respect, quite apart from the regulations that exist to protect them. So, proper and timely disclosure of company accounts and significant events, such as winning new contracts and appointment or resignations of directors, is essential for listed companies. SME owners that avoid these pitfalls are well on the way to putting an effective corporate governance structure in place. With peace of mind on that front, they can concentrate on the exciting aspects of growing the business.

Mark Fisher is vice president, Corporate Communications, at NASDAQ Dubai. He has worked as a solicitor in Hong Kong and the UK.

Because procedures are an important part of corporate governance, some people think that following them is all that matters.

62


Fit CEO

Coping with summer With temperatures elevating past 50 degrees it is that time of the year one needs to be doubly cautious. Beat the heat with some tailor-made tips for executives during the most demanding season of the year.

Summer is just about setting in on the Arabian metropolitan city and it’s once again time to re-

arrange several of our day-to-day routines to get in tune with the changing season. The suns rays can be quiet harmful and fitness regimes need to be either undertaken before 9 am or post 7 pm. Through this column we want to help executives and CEO’s manage their fitness schedules. The last thing a busy executive wants is to change his/her timings of an already set habit. So let’s try and focus on some core areas to watch out for in the summer season and what we can do to combat the heat. Most executives today have a small gym in the confines of their homes but what about the times when you want to break away from the four walls and go out for a jog and work up a good sweat? Home work-outs simply do not offer you the same output and satisfaction that you get when you go for a free-run and hence there are a few crucial aspects that need to be remembered when doing so. As mentioned earlier having a jog or indulging in any other kind of physical activity in the summer season is tricky especially when the temperatures soar up to above 50 degrees during the day in the peak of summer season. So your best bet is going for a jog at the break of dawn before the sun starts belting down in full swing. Ideally you are looking at a time frame of 6 am to 9 pm. Meanwhile if you

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Fit CEO

don’t love early mornings you might want to consider working out in the evening. Conditions cool down once the sun starts setting, the surroundings become a little calm and one can go for a light run or a jog post 6:30 – 7pm. However, things can get a bit tricky in both recommended passages of the day. If you continue jogging or playing past 9 am the heat will take its toll on you. The temperature could cross 40 degrees in the morning and one can suffer from heat strokes or nose bleeds quite easily. With that big meeting coming up later in the day you simply cannot afford such a risk. The later you begin in the evening the better as it continues to get cooler as the night grows stronger. Even then one needs to take care of how much you exhort yourself. Apart from running or jogging there are other sports that you could indulge in; swimming is the best bet as not only your full body gets a through workout, but you also do not sweat too much which means you do not lose too many body salts. Whether you are into light or strenuous physical activity you must make sure you consume a oral rehydration drink during work-outs. Try and keep away from strenuous sports like football if you are not used to it. Try and pursue lawn-tennis, diving, cycling and basketball. Contact sports such as rugby are very demanding on the body and should be avoided if you are not used to playing it regularly. Don’t neglect skin and hair during the summer. Most executives commute in the comfort of their air conditioned cars but there are numerous occasions you are forced to park away from your destination and walk in the sweltering heat. While this might be a great practice during the winter months refrain from deliberately parking a few blocks away as you are running the risk of getting a heat stroke. It is simply impossible however to avoid walking during the peak hours and as such here are a few ways to take care of your hair and skin. Use sunscreen just before leaving your home, office, and workshop. Purchase a sun screen, anti-aging skin care. Use a hat in order to protect your skin and hair

from the hot summer sun. Drink more than eight glasses of water, drinking a lot of water minimizes the risk of a heatstroke. For the night, line your lips by using lipbalm. For the care of your arms, use Aloe Vera gel. Use oil-free moisturizer for face and also body. Exfoliate your skin: use an exfoliator once a week to remove the dead skin and renew the cells. In case you burn, use Aloe Vera or an equivalent lotion, this will cool as well as relieve your skin and also help you to recover faster. Use cream that contains zinc on the face at night. This is certainly an efficient way to recover after the burn by the morning. Hydrate your hair not only your skin, by using a hydrating hair mask once or twice a week. Use hair products which contain SPF to protect your hair from the sun. Men also should use sun screen before going out: use a base gel SPF to avoid the shiny look. Wash off the styling products from the hair before sun bathing. Diet is as important as any other aspect mentioned above. Try to avoid caffeinated, carbonated, and alcoholic drinks. Not only will it help you consume fewer calories, but drinks tend to contain chemicals that add to your water loss. As melons, lettuce, tomatoes, and other summer fruits and vegetables come into season be

sure to eat the recommended four to five servings a day. Most summer produce is high in water content and fibers, helping you eat less of other heavier foods and will help keep you hydrated. Foods such as lettuce, onions, tomatoes, cucumbers, pumpkins, cabbage, carrot, cauliflower and sprouts should be found on your dinner plate this summer as they all serve to cool down your body from within while providing you with the daily quota of nutrition. For those who feel empty without their regular quota of meat, there is a tasty alternative available in fish. These fish are not only cooler on consumption as compared to the red meat or chicken that would have been the preferred otherwise, but also have high amounts of fatty acids such as Omega -3 and Omega - 6 which are found in very few other food items such as eggs and some other vegetables. Cut out high fat and high calorie foods avoid greasy and fried foods like hot dogs and margaritas. These types of foods have a heated thermal effect on your body and make you feel lethargic. By cutting these out of your diet you will have more energy and consume fewer calories making it easier to burn more calories than you consume, boosting your summer diet. Let’s face it; during the hot summer months the urge to eat frozen treats is constant.Instead of grabbing an ice cream bar, go for frozen yogurt instead. It is low in fat and adds additional calcium to your diet. Use breath mints or gum as the taste of mint helps naturally curb your appetite. You will not feel as hungry and your mouth feels fresh and clean you will be less likely to eat when you are not actually hungry. It is very easy to slip into an extra cautious mode and keep completely away from any sort of physical activity. But that could prove dire as well. Do not stop your day to day activities but merely modify them to outsmart the harmful rays of the sun. Wear loose-fitting, lightweight, light colored clothing. Choose fabrics that pull moisture away from your skin. Beat the heat and have a cool summer.

If you continue jogging or playing past 9 am the heat will take its toll on you. The temperature could cross 40 degrees in the morning and one can suffer from heat strokes or nose bleeds quite easily.

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Business Law

Intellectual property and sustainable business growthFailing to have a strategy in place could cost your organisation the opportunity to leverage of patent or copyright, Katie Withers explains how to stay alert and act fast.

Businesses in Dubai and across the region that experience the most commercial success and

longevity are those who pay appropriate attention to corporate governance, and to seemingly small things like having proper agreements in place. Successful businesses with sustainable futures thoroughly assess and mitigate business risk from the outset. Full awareness and understanding of

the legal framework in which they operate is no longer a nice-to-have feature, it is often the difference between business success and failure. One of the most important steps that an SME can take in order to enhance its chances of growth and success is the appropriate protection of its intellectual property (IP). In the case of protecting its brands (i.e. the words, phrases and logo's

it uses in order to "badge" its products), securing protection means registration as a trademark in order to be granted an exclusive right to use that brand in relation to specific products. Similarly, securing a patent over the SME's discoveries and inventions can help SMEs retain their competitive advantage. In addition to trademarks and patents (both of which require registration in return for monopoly rights), other types

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Business Law

of IP arise automatically, such as copyright. However, effective use of this type of unregistered IP depends on the SMEs procedure for gathering, retaining and storing valuable information and documents. For SMEs, the effective management of intellectual property rights can create vital competitive advantage. Often, their creative and innovative abilities, as well as the value of the business, can be threatened by counterfeiting, piracy and straightforward copying. Many businesses lack the resources adequately to protect or enforce their intellectual property, and IP protection is often seen as a low priority until the business is established, by which time it may be too late to act. Large or small, it is critical for the longevity and sustainability of every business that it has an effective IP strategy in place. The use of NDA's is recommended, as are clearance searches and registering rights at the earliest opportunity. In addition, it is recommended that businesses audit their IP regularly to ensure they have an up to date picture of their IP assets at all times. SMEs also needed to ensure that their IP position is protected under agreements to which the

business is a party. For example, employment contracts should clearly vest IP in the employer, to avoid the risk of it being owned by the employee. Similarly, when commissioning copyright works under agreements, careless drafting could mean that the company does not own the IP in that work which may severely restrict the ways in which it may be used. The wrong clause could lead to the loss of competitive advantage to a competitor, or a costly settlement. At DLA Piper, our specialist IP team offers advice and support at every stage of the IP life cycle, and across all areas including trademarks, copyright, patents, designs and domain names. We provide strategic advice on IP management and protection to both regional and multinational organisations, large and small. At first, these areas of law can seem complex to navigate but due diligence can create real

Katie Withers is a senior legal consultant in the Intellectual Property and Technology Group DLA Piper Middle East

commercial advantages as companies strive to move to the next level of growth and development. This article is the first in a series of six articles on the key legal issues affecting small to medium size companies as they grow and expand. Our specialists in areas such as corporate law, employment law, banking and finance, litigation and real estate will shed light on some of the pitfalls small and medium sized businesses face in their daily operations as they progress towards sustainable growth. Published throughout 2013, we hope that by highlighting legal issues that that can determine business growth, we can help to guide the next generation of multi-national organisations emanating from the Middle East.

SMEs also needed to ensure that their IP position is protected under agreements to which the business is a party.

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There is no point in having big plans for your company without keeping your employees in mind. Michael J. Tolan asks you to dig deep even if it means restructuring your vision statement.

What would it be like if everyone in your organisation felt they were part of an

important mission? What possibilities would there be for developing holistic

The power of passion in your organisation

excellence if your working culture supported the spirit of striving for excellence and rewarding people for their value? Entrepreneurs usually begin with a vision, a purpose to get their idea from paper to start-up

and then into actual operation. The challenge is to grow the team as the business grows, with the nurturing that will strengthen their purpose. Organisations which embrace the idea that “people matter” will

Leadership

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Leadership

Use this opportunity to really reach down into the layers of your organisation that will easily communicate and polarise the unity your organisation desires and deserves. Decide, and its all about a decision, to begin a campaign of recognising the people within your ranks that have accepted their future as a mundane task, and re-invent their future. Point out through holding a company meeting; what is the destination of the team coming set of three months, six months and two years. Make them feel part of a compelling future by creating and committing to an excellence recognition program that is not a mere thank you once a year, but a flamboyant bon fire like race to the excellence lane on the highway to success. If you feel your budgets are tight and cannot see how to deliver this, you may have missed the point. It’s not about paying more; it’s about paying attention. It’s about screaming out bravos to the lowliest of tasks done well, and it’s about being consistent. Remind your team members why you have chosen this journey, how important

their contribution is, and what they mean to everyone’s future. Discover what passions the people in your organisation have outside of the workplace and create occasional events and internal clubs that galvanise their interests with yours. People require a purpose and a reason to do well. Entrepreneurs are driven by their dreams, their lenders, debts, overheads or future acquisitions. These are not at all necessarily in line with everyone’s opinion. Use the power of passion in your organisation to get the maximum results out of your every new day of business. Do your clients have passions? The spark of passion within the leader can create combustions of purpose with everyone they influence. The domino effect can even create a perkier “good morning” from the receptionist that though he or she did not really matter and the magnetism of attracting new business will be more powerful than ever.So, if you believe that you have members on your team that do not seem to care enough with one eye on the clock the whole day while absentees and tardiness is more than you can tolerate; Then do your inventory of your own transmissions of passion back to them before you go on blaming them. If you are thinking that is basic emotional intelligence and you know all about it, share it with your team. Humans are not the computers they type into, they are all emotional creatures, who can be easily motivated if someone strong enough will take the time and care to rekindle their purpose with passion for what they are doing as individuals and as team that makes a real difference.

rule the summit of excellence. They will discover greater loyalty, greater output from their team, have a low attrition rate, and exceed their clients expectations. So how can businesses today create more excitement and fire up the very people that motor them forward? If the founder or leader can re-engage their own vision and see how others might benefit from being a proud part of the outcome, we can begin to make a new path to igniting passion with the people around us. Try something new; take a look at your vision and mission statement. Does it reach out and speak to everyone in the organisation, or does it simply look nice on the back of some door in the office? You can restart your company from today. Rip up what you may have written one month ago, or three years ago and try again.

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).

Make them proud to be a part or organisation and the future is yours, and that is the power of passion.

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Intelligent workshops

Creating a world class organisation

Intelligent SME organised the first of its workshops earlier this year titled "Creating a World Class Organisation. Seen here are Carole Spiers, CEO, Carole Spiers Group and Iyad Mourtada, CEO, Open Thinking, presenting their topics.

Carole, spoke on the different ways of releasing stress and practical methods to toughen up the mind and body. Whereas, Iyad highlighted creative ways to energise team building, sales presentations, staff meetings, brainstorming and more. The audience had plenty of food for thought.

The Intelligent Workshop proved to be a great networking hub for the thought-leaders and executives of Dubai's small and medium enterprises.

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Intelligent workshops

Innovation & Creativity

The Congress Level at the Emirates Hotel Towers was transformed into a networking arena, with several like minded executives bridging connections before the beginning of the workshop.

The attendees eagerly paying attention to Sajith speaking on the topic 'Getting into consumers mind.' Sajith highlighted the importance for an entrepreneur to think like a consumer.

Six teams were formed, each comprising of 13-14 members. These teams were given a business propostion which they had to then develop from scratch. The activity saw the utmost creative brilliance being brought out of the attendees.

Iyad Mourtada, CEO, Open Thinking spoke on 'Disruptive innovation.' Inorder to come up with the next big gadget an entrepreneur needs to think completely out of the box, emphasised Iyad. He also stressed on, customer retention is as much important as, attracting new customers

Sajith Ansar, Founder and CEO, Idea Spice Holding speaking at the Intelligent Workshop.

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Emirates NBD Global Business Series

4th EditionMishal Kanoo

Deputy ChairmanKanoo Group28.02.2013

Mishal Kanoo, deputy chairman, Kanoo Group interacting with the guests at the Emirates NBD Global Business Series. Mishal captivated the audience with his views on several important topics, ranging from business to social and public affairs.

The ever pragmatic Mishal Kanoo in deep conversation with Tariq Qureishy, CEO, Vantage Holdings. The former spoke about how his mother influenced him at a tender age of seven. Humility and compassion are what define Mishal and he credits his mother for this.

"When we educate a person, we should tell that person ‘don’t repeat what I am doing but understand what I’m doing; then build on it and do something better" Mishal Kanoo.

Over 180 CEOs, thought-leaders and business executives listened keenly to Mishal Kanoo as he enthralled the crowd with his opinion on several issues. Mishal was one of the few people, who foresaw the economic bubble burst prior to 2008, and he is beginnging to see the same signs again.

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Emirates NBD Global Business Series

5th EditionMohammed Abdul

Rahim Al FahimCEO, Paris gallery27.03.2013

Mohammed Abdul Rahim Al Fahim, CEO, Paris Gallery Group relived his young days and shared anicdotes of his teenage that helped shape his future,.

The simple man of luxury Mohammed Abdul Rahim Al Fahim in conversation with Tariq Qureishy, CEO, Vantage Holdings, at the Emirates NBD Global Business Series

Vikas Thapar, head of business banking and GM of Business Banking, Emirates NBD felicitated the guest of honour, Mohammed Abdul Rahim Al Fahim.

The Global Business Series has always been a great place for networking. Goulam-Raza Amarsy, CEO, Meydan IMAX theatre and Brian G. McCarthy, COO and director, Elekta Intr. LLC, sharing a light moment after the interactive session.

Several SME owners took advantage of the Emirates NBD Global Business Series with Mohammed Abdul Rahim Al Fahim. They expressed eager willingness to partner with the iconic Paris Gallery Group, and the group's CEO welcomed new partnership during the interactive session.

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Networking opportunitiesImportant business events across the globe

Events Calendar

WORLD ECO CONSTRUCT 2013Date: April 16 - 18, 2013Venue: Abu-Dhabi National Exhibition Center

ecoConstruct Expo 2013 will showcase the leading and most innovative sustainable building solutions available on the market, advancing the construction industry in its aim to build a more profitable future.www.ecoconstructexpo.com

CITYSCAPE ABU DHABI 2013Date: April 16 - 18, 2013Venue: Abu-Dhabi National Exhibition Center

Cityscape Abu Dhabi is the annual meeting point for governmental authorities, key investors and developers, consultants, architects, designers and other real estate professionals to drive growth in Abu Dhabi’s real estate market. The event is the outlining of the future of Abu Dhabi’s master plan and key developments will be revealed.

ALUMINIUM DUBAI 2013Date: - April 23 - 25, 2013Venue: - Dubai International Convention and Exhibition Center

The exhibition is on its third edition and brings together international industry front-runners including producers, manufacturers and processors of raw materials and end products made with aluminium components, as well as suppliers of technologies and accessories for aluminium

production, processing and refinement.www.aluminium-middleeast.com

CAREERS UAE 2013Date: - April 28 - May 02, 2013Venue: - Dubai International Exhibition Centre

Careers UAE enables talented UAE nationals, in all fields, to come face-to-face with recruiters and hiring managers from leading employers. Careers UAE is designed to expose job seekers to a wide range of educational, training and career opportunities.www.careersuae.ae

INTERNATIONAL PROPERTY SHOW DUBAI 2013Date: - April 30 - May 02, 2013Venue: - Dubai International Exhibition Centre

The event focuses on investment opportunities regarding the prices and latest developments in the real estate and property industry. It also serves as a place to meet prospective clients, network with government officials and policy makers from across Europe, Middle East and the Asia Pacific region and showcase existing projects to an international audience. www.internationalpropertyshow.ae

AIRPORT SHOW 2013Date: - May 06 - 08, 2013Venue: - Dubai International Exhibition CentreThe Airport Show is a B2B event in the aviation industry providing

the MENA region and Indian Subcontinent with the latest technologies and solutions from around the world. The Airport Show will be collocated with the Global Airport Leaders' Forum, a biennial gathering of high profile aviation regulators and civil aviation authorities (CAAs) from around the world addressing the major challenges in the industry.www.theairportshow.com

PROJECT QATAR 2013 Date: - May 06 - 09, 2013Venue: - Doha Exhibition Center, Qatar

Project Qatar has entered the 10th edition; it's an International trade construction, building, environmental technology & materials exhibition. The event attracts key buyers and industry leaders looking for the most up-to-date technology and state-of-the art equipment available on the market. www.projectqatar.com

PETROCHEM ARABIA 2013Date: - May 19 - 21, 2013Venue: - Dhahran International Exhibition Centre, Saudi Arabia

Petrochem Arabia has established itself across the region as a major forum for the downstream sectors. With over 100 exhibitors and 5000 visitors, the Petrochem Arabia exhibition is by far the largest downstream exhibition in the Kingdom and one of the largest in the Middle East.

Intellegent ME DED - 260x190-E.indd 1 2/17/13 10:26 AM

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www.petrochem-arabia.com

IZDEHAR SME 2013Date: - May 19 - 21, 2013Venue: - Jeddah Hilton Hotel, Saudi Arabia

Izdehar SME is the premier exhibition and conference supporting small and medium sized enterprises (SMEs) in Saudi Arabia. The event will prove to be the arena for local business people, aspiring entrepreneurs, government agencies, finance and service companies, plus other stakeholders to meet, network and do business in a vibrant business environment.www.izdeharsme.com

MIDDLE EAST EVENT SHOW 2013Date: - 21 - 23 May 2013Venue: - Dubai International Exhibition Centre

This is an event for the event industry itself. The Middle East Event Show 2013 is a route to market for MICE, event and entertainment industry suppliers in the region.www.me-eventshow.com

SAUDI ENERGY 2013Date: - May 26 - 29, 2013Venue: - Riyadh International Exhibition Centre, Saudi Arabia

Saudi Energy is one of the largest and most specialized energy exhibitions in the region, covering all energy sector aspects from electricity generation and distribution to alternative and

Networking opportunitiesImportant business events across the globe

Events Calendar

renewable energy technologies; modern lighting products and technologies; water and water resources management technologies; and HVAC.www.saudi-energy.com

CITYSCAPE QATAR 2013Date: - May 27 - 29, 2013Venue: - Doha Exhibition Center, Qatar

Cityscape Qatar is an event that focuses on real estate growth by providing a platform that will highlight high growth investment opportunities, showcase innovative products and underline sustainable developments. Cityscape Qatar serves as a platform to bring together international, regional and local investors, architects and designers, real estate developers, governmental authorities and senior executives involved in the design and construction of public and private real estate developments from Qatar and internationally.www.cityscapeqatar.com

WELLNESS & SPAS MIDDLE EAST 2013Date: - May 28 - 30, 2013Venue: - Dubai International Exhibition Centre

Beautyworld Middle East is a representation of the global beauty products, hair, fragrances and well-being industries for the wider Middle East region and continues to provide a very optimistic outlook to those who shape and help evolve this vibrant and

colourful market.www.wellnessandspas.com

HARDWARE & BUILDING MATERIALS - DUBAI 2013 Date: - May 28 - 30, 2013Venue: - Dubai International Exhibition Centre

This event is a sourcing platform for businesses looking to sell to the growing consumer markets in the region. www.globalsources.com

HOSPITAL BUILD & INFRASTRUCTURE\ MIDDLE EAST 2013Date: - June 03 - 05, 2013Venue: - Dubai International Exhibition Centre

Hospital Build & Infrastructure is a global business-to-business platform dedicated to bringing together investors, commissioners, backers and managers of healthcare-related building projects with key players in planning, design, construction, operations, management, supply and refurbishment.www.globalsources.com

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Summing up

Column

Innovation is a mustUtpal Bhattacharya argues in favour of innovating and thinking out of the box, especially in times when people are being still laid off.

What goes up must come down; we have seen that in the economic cycle that has taken

us through some agonising times in recent years, and continues to affect us in so many ways. But we are also, now, witnessing an economic recovery in our region, including in real estate and trade, although our lives have changed dramatically, as we have many more new entrepreneurs in our midst. Many skilled professionals that were laid off, have been forced to set up their own businesses, and the wheel of production has continued to turn, gaining some pace in recent months. For small businesses, capital has always been difficult to come by, but following the recession, it has been even more difficult to access funds. Successful entrepreneurs, however, have been always found innovative ways to solving their financial problems. I have known a restaurateur in India, who, when he found it difficult to pay salaries on time and his staff deserting him, decided to offer partnership to key employees. He had the business acumen to offer large stakes to his chefs and market managers, while reducing their cash benefits drastically. He had offered them their equity at a valuation, which was too lucrative for those that wanted to be part of that business, to reject the offer. He had also given them a buy back option at the market rate in five years. Of course his offer worked, and of course his restaurants have done well. In recent times, I have come across bankers and financiers, who have had cushy jobs in international markets like Dubai,

Singapore, Hong Kong and London, desperately looking for opportunities in “once remote” African countries. Not only have skills started to move to Africa, but that continent is also benefiting

from capital that was focused on Europe, the US or even the Middle East. I describe this as loss for one market and gain for another that desperately needed both capital and skills. This also means that many financiers and bankers are trying new things, as structured products and hedge funds are not working and many of them do not have jobs any more to sell these products. The problems start when, after being made redundant from selling hedge funds, or say publishing, somebody starts a business of selling hedge funds or decides to get into publishing on his own, especially in times like this when large, established, successful institutions have failed. Most people have this approach because they do not know what else to do, but the result is not always positive and at best indifferent, as I have found out over the years. A more effective result can be expected from retraining, re-positioning and adapting to new realities and innovating. The chances of success are much higher in trying something new than trying to reinvent the same old thing that had made one redundant. Bold strategies like what my restaurateur acquaintance adopted does make a difference, after all.

A more effective result can be expected from retraining, re-positioning and adapting to new realities and innovating.

SME_Award_IntelligentSME_O.ai 2/11/13 5:34:25 PM

the intelligent sme - issue 13

Documents

business marketplace

interior designing business

business simon hodges

better smes

smes effective marketing

medium enterprises smes

smes mark fisher

pragmatic mishal kanoo