BC Middle East - September 2018

MIDDLE EAST EDITION SEP TEMBER 2018 middleeast.businesschief.com

Top 10

Most expensive hotels in the Middle East

KEMPINSKI HOTEL GOLD COAST CITY

Engaging guests through technology

City Focus

Muscat

Equinix and the digital ecosystem Jeroen Schlosser on the data centre giant’s latest expansion plans for the region

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FOREWORD

elcome to September’s Middle East Edition of Business Chief.

This month’s cover story introduces Equinix’s Middle East Managing Director Jeroen Schlosser, who details the company’s continued work in the region, building and managing some of the biggest data centres on the planet.

A joint venture with local telco Omantel (Oman Telecommunications Company) sees the two companies delivering a new network-dense data centre located in Barka, near Muscat, the capital of Oman.

Schlosser sees the latest announcement as a strategic pin in the company’s ongoing activities in the region.

“Oman represents a very good gateway into the whole Middle East, home to more than 60 carriers,” he explains.

Despite decades of progress, women remain significantly underrepresented in the technology workforce.

With PwC’s Tech She Can charter looking at ways to break down barriers, LEWIS’ Managing Director Ruth Jones discusses how technology is reshaping career pathways.

Elsewhere this month, we also talk to business leaders at Kempinski Lebanon & West Africa and Middle East Broadcasting. Muscat is our city in focus while we also take a look at the ten most expensive hotels in the Middle East.

We hope you enjoy the magazine and if you have any feedback, then we’re available across social media: @Business_Chief ­ Andrew Woods Editor andrew.woods@bizclikmedia.com

W

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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CONTENTS

EQUINIX AND THE

D I G I TA L ECOSYST EM

LEWIS DRIVING CHANGE THROUGH TECH SHE CAN

08 18

42

30

City Focus

Kempinski Lebanon and West Africa Food & Drink

52

Middle East Broadcasting Supply Chain

66

LEADERSHIP

08

EQUINIX AND T

D I G I TA L ECOSYS WRITTEN BY

ANDREW WOODS

We talk to Equinix’s Middle East Managing Director Jeroen Schlosser regarding the company’s continued work in the region, building and managing some of the biggest data centres on the planet…

SEPTEMBER 2018

09

THE

ST EM

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

LEADERSHIP

G

lobal data centre developers Equinix recently announced Oman as the latest location for its expan-

sion across the Middle East.

A joint venture with local telco Omantel (Oman Telecommunications Company) sees the two companies delivering a new networkdense data centre located in Barka, near Muscat, the capital of Oman. According to Equinix, this joint venture will “establish the first world-class, carrier-neutral hub in Oman where carriers, content providers and cloud providers colocate critical IT infrastructure”.

Jeroen Schlosser, Managing Director of

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Equinix Middle East, sees the latest announcement as a strategic pin in the company’s ongoing activities in the region. “Oman represents a very good gateway into the whole Middle East, home to more than 60 carriers,” he explains.

Omantel is a global communications provider with cable landings and connectivity to more than 120 cities globally with investments in 20 subsea cable systems, leveraging six diverse landing stations in Oman and one in France. The new IBX data centre in Oman will benefit from connectivity to strategic cable landing stations (CLS) and subsea cable systems that terminate directly inside the facility. It will also benefit from the investments by Omantel in multiple strategic SEPTEMBER 2018

subsea cable systems throughout the region and world. This subsea cable connectivity will provide customers with signifi-

“Instead of sending data in between those networks in Europe and perhaps 14-15 regional carriers, we wanted to localise the exchange” — Jeroen Schlosser, MD Middle East, Equinix

cant cost savings and an increase in performance and security.

“There are huge capacities on the cables from Omantel,” says Schlosser. “That will represent a huge opportunity for internet traffic in the region, whether it’s private enterprise traffic, content social media or cloud companies or carriers bringing compute and data to the region. This centre has a great entry point into the Middle East region and it’s an opportunity we’re going to leverage.”

AN EXPANDING FOOTPRINT IN MENA Equinix will operate the new IBX data centre, which will include 18,600 sq ft of colocation space and approximately 750 cabinets at full build. The first part of the three-phase build will include 250 cabinets and is expected to be completed and open for business

by Q2 2019.

Equinix has a proud history of work in the region. Schlosser m i d d l e e a s t . b u s i n e s s c h i e f. c o m

11

LEADERSHIP

points to the vital role the Middle East

and shipping,” says Schlosser.

has played in its growth as Equinix

“We can easily deploy people and do

identified an increasing demand for

business there, and so that’s where we

digital infrastructure within the area,

started our first IBX data centre. Instead

having previously used Europe as its hub.

of sending data in between those

“Instead of bringing their data back

networks in Europe and perhaps 14-15

to Europe, we wanted to install intercon-

regional carriers, we wanted to localise

nection within the region through digital

the exchange. For example, if I sent an

ecosystems. The first thing we did was

email from Dubai to Riyadh that email

to speak with older telecom operators

would first go to Frankfurt and then from

in the region to bring their networks to

Frankfurt back to Riyadh. We wanted

Dubai. Dubai was already an accepted

to get that email straight from Dubai to

hub for many industries, such as aviation

Riyadh without travelling to Europe.”

12

Click to watch: ‘Equinix: Creating Tomorrow Today’

SEPTEMBER 2018

That was how Equinix started in the

work with service providers in addition-

region. The moment it started to become

al fields, whether it’s cloud providers,

a small ecosystem of regional carriers

integrators or carriers. “I expect this

connecting with global carriers. “We

opportunity will have a wider impact

saw an opportunity to own a single

and will enable the region to benefit

location to meet multiple, if not all, Middle

from having that good interconnection

Eastern carriers in order to distribute

to attract a lot of international compa-

their data. Then we saw financial compa-

nies into the region to deliver their

nies coming in requiring compliance.”

services and content from entities

The Omantel project is hoping to

and operations in Europe or Asia.

create more visibility for the country

“It’ll be easier and more secure for

and, indirectly, deliver more opportuni-

them to bring those operations into the

ties for locally-based companies to

Middle East. Some of it might land in 13

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

LEADERSHIP

Oman and some of it might land in other locations in the Middle East, depending on the individual business models.”

STRATEGIC POSITIONING Oman is strategically positioned between Asia, Africa and Europe, and the new Equinix International Business Exchange data centre will create a regional interconnection hub with ultra-low latencies between global business markets.

14

Based on demand and requirements, customers in the GCC and wider MENA region can also leverage other Equinix data centres in the region for dual access, allowing carriers, content providers and cloud providers to further build resilience into their IT and network infrastructure.

“If you would look at the map of how the regions connect internet traffic then you will see most of the global traffic runs through submarine fibre cables that run between Asia and Europe. They run past the coast of Oman to Egypt and from Egypt they go SEPTEMBER 2018

“The region can now give all the countries the opportunity to really leverage digital transformation and be more competitive and efficient in global markets as they’ve never been before” — Jeroen Schlosser, MD Middle East, Equinix

into southern Europe. Most of those cables also have branches that go into the Middle East and that is the way the region connects to the global, digital markets. One country that particularly stands out in ensuring that almost all those cables land, or has a branch from that cable, is Oman.”

After a little over five years in the region Schlosser now views the next phase of growth in the Middle East as the most exciting. “First you bring all the networks, then content will come, finance will come, cloud service providers, and then the enterprise. The region can now give all the countries the opportunity to really leverage digital transformation and be more competitive and efficient in global markets as they’ve never been before.

“We will keep listening very carefully to our customers, whether it’s cloud providers, content providers or large enterprises to see where they need their interconnections to their digital supply chain and the customer base. That will drive where and how we grow.”

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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TECHNOLOGY

LEWIS DRIVING CHANGE 18

THROUGH TECH SHE CAN

Despite decades of progress, women remain significantly underrepresented in the technology workforce.

With PwC’s Tech She Can charter looking at ways to break down barriers, LEWIS’ Managing Director Ruth Jones discusses how technology is reshaping career pathways WRITTEN BY

SEPTEMBER 2018

CATHERINE S TURM AN

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m i d d l e e a s t . b u s i n e s s c h i e f. c o m

TECHNOLOGY

T

he fourth industrial revolution is significantly disrupting the way we live, work and interact.

Traditional industries and ways of working are

being fully transformed through digitisation, yet

it is imperative that a diverse, global workforce can adapt to such change.

However, despite such a monumental shift, women continue to be underrepresented within the global technology workforce. A recent report

by PwC entitled Women in Tech: Time to close the gender gap, highlights that women, on this occasion in the UK, remain discouraged from working in technology, with 83% of female students unable to name a famous female role model in technology 20

and only three per cent stating a career in technology to be their first choice.

“As our personal and working lives become increasingly shaped by technology – technology products and services are being developed and delivered based on the perspectives of only one half of the population, and not designed with the needs of everyone in mind,” the report states, adding: “If half the population is being overlooked as a source of technology talent, then the UK is effectively trying to compete internationally with one hand tied behind its back.”

Global professional services network PwC has found that gender bias starts in schools and carries on through each stage of a child’s education. 61% of females indicated that they have been dissuaded from a career in technology due to the limited SEPTEMBER 2018

“ WE’RE FINDING A SHIFT IN THE INDUSTRY, WHERE IF WE PUT CREATIVITY, CONTENT AND CONTEXT AT THE HEART OF EVERYTHING WE DO, WE’RE ABLE TO OFFER CLIENTS A SINGLE VIEW BUT ARTICULATE IT ACROSS TECH-BASED PLATFORMS” — Ruth Jones, Managing Director, LEWIS

21

advice given. “Although heavily involved in STEM subjects at a younger age, I was discouraged by the sexism that surrounded me when I took part in competitions and conventions,” a female pre-university student noted.

“There is a stereotype that empirical studies are male subjects only, and the institution to which I currently belong perpetuates this belief obliquely. I felt discouraged from taking the sciences,” another female pre-university student added. This must change. m i d d l e e a s t . b u s i n e s s c h i e f. c o m

TECHNOLOGY

“ THE INDUSTRY AS A WHOLE IS NOW LOOKING AT HOW TO SHAPE LEARNING FOR THE FUTURE, AND THIS SNEAKS INTO ADULT LEARNING, AS WELL AS THE FUTURE CAREER PATH” 22

— Ruth Jones, Managing Director, LEWIS

TECH SHE CAN CHARTER In order to take a closer look at the root causes of women’s reluctance at a societal level, PwC has launched its Tech She Can charter. Joining over 30 organisations across the UK, global integrated communications business, LEWIS, has made commitments to promote careers in technology for both genders, looking to enable workers to reach their potential and to share best practices.

Established by former Financial Times SEPTEMBER 2018

23

journalist Chris Lewis in 1989, LEWIS has

held by women, where flexible

evolved from a news-driven agency into

working schemes have enabled

a company that defines a central market-

working mothers to return to

ing strategy stemming from brand develop-

work, alongside the enhanced

ment and PR, to sales enablement and

maternity packages and shared

digital execution.

leave on offer to staff.

As part of the charter, LEWIS will work

“When women think of a career

to show how women can enjoy the technol-

inside technology, it doesn’t

ogy sector but also develop great careers.

necessarily need to be working

In the company’s UK workforce, 55% of

directly with data, digital or ICT.

senior positions (Director and above) are

It can be a career in the creative m i d d l e e a s t . b u s i n e s s c h i e f. c o m

TECHNOLOGY

Click to watch: ‘LEWIS Global Communications, Does gender or age matter in creativity?’

24

industries that supports companies in

tions, there is wide recognition that

technology and applies technology to,

customer journeys need to become

for example, marketing services,”

one, common conversation. We’ve

explains Ruth Jones, Managing Director.

seen that in the industry.”

“We’re finding a shift in the industry, where if we put creativity, content and

PROMOTING EDUCATION

context at the heart of everything we do,

At present, only 15% of people working

we’re able to offer clients a single view but

in STEM roles in the UK are female,

articulate it across tech-based platforms

indicating that the country’s future

and channels – from infographics

technology talent will remain heavily

through to 3D experiences, as well as

male-orientated. In addition, recruiters

the traditional written word.

have expressed their concerns

“Through a collision of marketing, digital, technology and communicaSEPTEMBER 2018

surrounding the difficulty of recruiting knowledgeable, skilled individuals

FACTS

within STEM. A Global CEO survey has revealed that two thirds of UK CEOs say recruiting people with digital skills is difficult, compared with only 43% of CEOs in the US and 24% in China.

With this in mind, providing in-house training, as well as funded apprenticeship pro-

PwC’s Tech She Can Charter The Tech She Can Charter was launched by PriceWaterhouseCoopers in February 2018, joined initially by over 12 firms including giants such as Tesco and JP Morgan, with many more having since been added.

The main commitments organisations have made as part of the charter are:

grammes, LEWIS remains keen to offer permanent positions, with the aim to be part of the personal and professional development of its employees.

By partnering with schools, providing female role models and ensuring inclusive access to the sector, UK organisations will then gain the ability to build a robust upskilled and adaptive workforce, introducing technology modules which can be delivered in schools by teachers or through virtual reality to develop the UK’s technology talent.

“We also go to universities

• Working with schools to inspire pupils and teachers about careers in tech • Supporting social mobility by targeting schools in the UK Government’s defined social mobility ‘coldspots’ • Promoting and celebrating successful female role models at all levels • Ensuring inclusive access to technology training and technology roles within their own organisation • Supporting formal work experience and internship programmes to encourage more females to consider a career in tech • Sharing best practice with all other organisations across the charte

and spend a lot of time giving talks around careers at various different universities, here at LEWIS. We also have a partnerm i d d l e e a s t . b u s i n e s s c h i e f. c o m

25

TECHNOLOGY

“THROUGH A COLLISION OF MARKETING, DIGITAL, TECHNOLOGY AND COMMUNICATIONS, THERE IS WIDE RECOGNITION THAT CUSTOMER JOURNEYS NEED TO BECOME ONE, COMMON CONVERSATION” — Ruth Jones, Managing Director, LEWIS

26

ship with Chelsea College of Art,

continues to evolve the way in

so connecting through educa-

which individuals can develop

tion is something that embodies

a technology career, with a num-

us,” explains Jones.

ber of roles available.

“We’re looking to invest more.

“Technology is central to every

The industry as a whole is now

part of our lives. Children and

looking at how to shape learning

young adults are coming into the

for the future, and this sneaks

workforce digitally enabled.

into adult learning, as well as

Everyone’s going to have a nat-

the future career path. Ultimate-

ural affinity for technology and

ly, we’re entering a world where

they’re going to see a much

continuous learning is an abs-

clearer path to why technology

olute necessity.”

plays a central part in our every-

While only 5% of leadership positions in the technology

day lives,” notes Jones.

“The single most important

industry are presently held by

thing for me is attracting more

women, where girls are less

people into technology so that

likely to study STEM subjects at

we can support the economy

school or university, technology

going forward.”

SEPTEMBER 2018

27

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

ConferenCe

CITY FOCUS

City Focus

30

SEPTEMBER 2018

31

The beautiful capital of Oman is a thriving hub of industry and tourism… WRITTEN BY

ANDREW WOODS

m i d d l e ewawsw. t . b u s i n e s s c h i e f. c o m

C I T Y F O C U S | M U S C AT

32

SEPTEMBER 2018

O

man’s capital has occupied an historically strategic trading point – along the country’s north-eastern coastline

– that dates back to the ancient Silk Roads, linking as it does Asia, Africa and Europe.

Still a thriving port to this day, and with a major international airport, Muscat still places a strong economic focus on visitors to its bustling stretch of shoreline.

Muscat International Airport – located 16 miles from the city’s business district of Ruwi – has just undergone a $1.8bn expansion as part of a decade-long reconstruction. The revitalised airport includes a new runway, air traffic control tower and civil aviation building. The grand opening last March marked the completion of the first phase of expansion which increases passenger capacity to 12mn – up massively from the previous 1.2mn passengers recorded in 2017.

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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C I T Y F O C U S | M U S C AT

360 V I E W

34

The new airport capacity and infrastructure were commissioned after research projected a 40% increase in Oman’s visitors by 2019. The airport will undergo further upgrades in three consecutive phases which aims to boost the number of passengers to 24, 36 and 48mn respectively. Muscat International Airport is ranked in the top 10 airports in the Middle East, with an average annual growth forecast of 8%.

SEPTEMBER 2018

Muscat International Airport Al Riyam Park Sultan Qaboos Grand Mosque

3

1 2

Tourism is a booming industry in Oman with Muscat taking centre stage. The Ministry of Tourism is making significant efforts to enhance Muscat’s tourism sector while placing a strong emphasis on sustainable development. A signatory to the United Nations Agenda 2030, Oman has adopted several measures to enhance 360 V I E W

tourism facilities in a sustainable manner.

The Oman Tourism Strategy 2040 hopes to accelerate the pace of tourism and cultural development through the appropriate utilisation of its rich resources while keeping in mind the core principles of sustainable development. The Sultanate’s first snow park, part of the Palm Mall Muscat project, is being hailed as a new-generation Alpine winterthemed ‘real snow and ice’ leisure park. m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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C I T Y F O C U S | M U S C AT

MoT’s Ahmad Bin Nasser Al Mahrizi told reporters: “Our main long-term objective is to achieve economic diversification, together with upgrading the direct and indirect contribution of the sector in Oman’s GDP, provision of direct and indirect employment opportunities for the national labour force, enhancing government revenues, supporting the balance of payments and achieving the highest level of regional development.

“The adoption of the principle of tourism sustainability is the result of ongoing concern and awareness 36

towards responsibilities, not only in the progress and development of the

Expats make up 40% of population and 60% of workforce Size

1,400 sq.m 1.56mn Population Nearest airport

14km

Muscat International Airport

current generation, but also future generations.” Oman’s tourism is forecast to contribute to the country’s GDP by 6% over the next two decades, according to UN figures.

The ocean-facing Muscat offers much to its visitors, set as it is against a stunning backdrop of mountain ranges. The city and its 1.56mn inhabitants are renowned for having a unique laidback vibe which resonates with those visiting the city, whether for business or pleasure.

There are numerous luxury hotels and resorts in the city – Chedi Muscat SEPTEMBER 2018

Click to watch: ‘A short overview of Muttrah and Muscat’

rated as one of the best – and Forbes recently ranked Oman as the best place to travel in the region. “While in Oman we never once felt unsafe, even as two female travellers who clearly did not belong. We were welcomed at every turn, fed incredible meals in restaurants only known to locals, and had deep eyeopening conversations with some of the most interesting people we’ve ever met. It fed our souls in a way that no other place has done recently, and that alone is why Oman is the best place to travel to in the Middle East right now.”

Still a thriving port, Muscat plays a pivotal role as a gateway in and out of the country and the wider region. The UAE represents 23.6% of imports into the port, followed by Japan at 12.6% and India at 8.5%. Oil, agricul-

‘Still a thriving port, Muscat plays a pivotal role as a gateway in and out of the country and the wider region’

ture and fishing represent the traditional industries in Oman.

Dates and limes, grown extensively in the Batinah coastal plain and the highlands, make up most of the country’s agriculm i d d l e e a s t . b u s i n e s s c h i e f. c o m

37

C I T Y F O C U S | M U S C AT

tural exports. Coconut palms, wheat,

is expected to have positive impacts

and bananas are also indigenous.

across the Sultanate’s property market.

Other areas grow cereals and forage

The government’s strong push to boost

crops while Dhofar is an area heavily

overall economic growth has resulted

focused on cattle. Poultry production

in a number of very encouraging devel-

is also rising steadily, as are fish and

opments for the property market, such

shellfish exports, which totalled

as the much-anticipated decision to

$34mn in 2000.

allow the creation of a real estate

The property market remains healthy in

investment fund (REIF). This will pave

Muscat. Buoyed by higher oil prices,

the way for investments in larger scale

Oman’s economy is recovering well from

real estate projects at significantly

the lows of 2016, and is projected to grow

lower price points and with far greater

by 3.6% in 2018. If sustained in the longer

liquidity, in comparison to more tradi-

term, according to Cluttons, this growth

tional real estate investment.

38

‘As Oman tries to diversify away from oil-related industries, banking is tipped as another growth area’

SEPTEMBER 2018

As Oman tries to diversify away from

ing, transport, hospitality and tourism.

oil-related industries, banking is tipped

Thus, one of the biggest factors that

as another growth area. Mohammed

will drive growth at Bank Sohar will

Mahfoudh al Ardhi, chairman of Bank

be focusing on economic diversifica-

Sohar, detailed his outlook on Oman’s

tion. Bank Sohar expects to unleash

banking sector to Muscat Daily recently.

a progression of strategies to

“The government has unveiled its

increase market opportunities in

current five-year plan outlining

Oman’s approaching non-oil era.

reduced dependency on oil and gas

This will subsequently benefit both

revenue and further depreciating the

retail and corporate business, yield-

sector as a significant contributor to

ing improved performance, while

GDP,” he said. “Instead, the plan pro-

helping to identify new opportunities

poses increased focus on key

within each major economic segment

industries such as manufacturing, min-

as they continue to emerge.”

39

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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Ho Stak

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r 5-6, 2018 Arab Emirates

500+

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Industry expert Speakers

T O P 10

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SEPTEMBER 2018

Top 10 most expensive

Hotels in

the Middle East

A surging economy, combined with governmentsponsored efforts in countries like Qatar to expand their tourism footprint, means hyper-luxury holidays in the Middle East are rapidly growing in popularity. We take a look at the ten most expensive hotels in the region, taking into account the basic room rate for one night according to Luxuo WRITTEN BY

HARRY MENEAR

m i d d l e a s t . b u s i n e s s c h i e f. c o m

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T O P 10

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Four Seasons Dubai Also located on the Jumeirah beach front, the Four Seasons Dubai is the hotel in the district closest to downtown Dubai, close to the 1,200 shop

10

44

Dubai Mall. The hotel’s facilities include a 24-hour fitness centre,

Jumeirah Al Qasr

water sports, tennis courts, a beauty

Located in Dubai, the Jumeirah Al

ments drawing on the region’s ancient

Qasr is a single-building beachside

pearl diving industry. A double room

hotel and resort with attached shop-

costs on average $291 in the low sea-

ping mall. The hotel lies in the centre

son, with prices more than doubling

of the Madinat Jumeirah, a 40-hec-

during the other half of the year. www.fourseasons.com

tare resort and is decorated in an Arabian Fantasy style, with a fivetonne Swarovski crystal chandelier in the lobby. A double room in the off season costs an average of $264 per night, although guests are also granted unlimited access to the nearby waterpark. www.jumeirah.com

SEPTEMBER 2018

salon and the Pearl Spa, with treat-

07

Jannah Place Hotel Located beside the Dubai Marina, the Jannah Place Hotel offers both deluxe studios and two-bedroom suites. The hotel is staffed by Karims, traditional

08

Jumeirah Dar Al Masyaf Also owned by Jumeirah Hotels and Resorts and located on a private stretch of the Jumeirah Beach looking out across the Arabian Gulf, the Jumeirah Dar Al Masyaf, is a collec-

Bedouin butlers, who provide roundthe-clock service to guests. A double room costs, on average, $330 per night. Jannah Place received the Haute Grandeur Hotel Award for the United Arab Emirates’ Best Family Hotel in 2016, and the World Luxury Hotels award for best Luxury Small Hotel in 2017. www.jannahplace.com/hotels

tion of private summerhouses. Each of the resort’s 29 summer houses have at least nine bedrooms, on-site staff and access to over 50 restaurants across the resort. Additionally, the resort’s hotel contains 283 rooms.

A double room in the off-season costs $299 per night on average. www.jumeirah.com

m i d d l e a s t . b u s i n e s s c h i e f. c o m

45

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05

Six Senses Zighy Bay Situated on ten miles of private shoreline on Zighy Bay in The Sultanate of Oman, and accessible only via a 4x4 vehicle, the Six Senses Zighy Bay is a luxury hotel with villas and suites in beachfront locations, each with a private infinity pool. The hotel’s architecture draws from traditional 48

06

Omani designs, utilising soft wood and stone to provide naturally cool interior

Mina A’ Salam

spaces. A double suite costs an aver-

Yet another Jumeirah hotel, located in

season, and a one-way shuttle service

the company’s beachfront resort, is

from the nearest airport costs $157.

the Mina A’ Salam (‘Harbor of Peace’).

sixsenses.grandluxuryhotels.com

The facility comes with standard access to the private beach and Wild Wadi Water Park. The hotel contains 292 rooms and recently underwent refurbishment. A double room costs, on average, $337 per night during the off-season. www.jumeirah.com

SEPTEMBER 2018

age of $524 per night in the low

03

Zaya Nurai Island Resort Located on a natural island in the northern bay of Abu Dhabi, the Zaya Nurai Island Resort is only accessible via

04

speedboat. The resort is made up of 34 villas and guest facilities include an out-

The Palm, Dubai

door cinema, wave pool, book cellar

Owned and operated by One & Only

bedroom beach villa costs, on average,

Resorts, The Palm, Dubai sits on an

$718 per night during the off season.

artificial island, overlooking the Dubai

www.zayanuraiisland.com

and teepee-style sun loungers. A one-

Marina and the Jumeirah beachfront, as well as looking across to its sister hotel, the Mirage. The Palm contains 90 rooms and four villas - “low-rise sandstone-coloured buildings” with “Moorish and Andalusian architectural themes”, according to the Daily Telegraph. A double room costs, on average, $667 per night in the low season. www.atlantisthepalm.com

m i d d l e a s t . b u s i n e s s c h i e f. c o m

49

T O P 10

50

02

Al Maha Overlooking an oasis in the Dubai Desert Conservation Reserve, the Al Maha specialises in intimate getaways, drenched in the theme of ‘Old Arabian’ luxury. Full board encompasses all meals, and two activities per day, including falconry, archery and camel trekking. Guests in the off-season can expect to pay an average of $766 per night for a double room. www.al-maha.com

SEPTEMBER 2018

51

01

Burj Al Arab With its distinctive sail-shaped construction, the Burj Al Arab dominates the Dubai skyline from its home atop a man-made island off the shore of Jumeirah Beach. The Burj Al Arab is, according to the Daily Telegraph, “regularly touted as the world’s most luxurious hotel”, with an interior that “screams opulence with a soaring atrium flanked by golden columns, vibrant colours inspired by the elements, lashings of gold leaf and more than 30 different types of marble”. Guests at one of the Burj Al Arab’s 202 rooms can also expect shuttle services to downtown Dubai in one of the hotel’s fleet of Rolls Royce Phantoms.

A double room during the off-season typically costs $1,276 per night, making it easily the most expensive destination in the region. www.jumeirah.co

m i d d l e a s t . b u s i n e s s c h i e f. c o m

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Kempinski Hotel Gold Coast City: Engaging guests through technology WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

CR AIG DANIEL S

SEPTEMBER 2018

FOOD & DRINK

53

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

KEMPINSKI HOTEL GOLD COAST CITY

Khaled Koro, IT Manager for Kempinski Hotel Gold Coast City, discusses how technology will support the group to deliver exceptional customer experiences

A 54

strengthening worldwide

a visit to Kempinski Summerland

economy has led to a significant

Hotel & Resort, Beirut reflects the

boom in global tourism.

culture of the destination” explains

The hotel business is thriving, where

Khaled Koro, IT Manager for Kempin-

smaller enterprises are competing

ski Hotel Gold Coast City.

against large corporations in

Joining the Group in 2016 to support

developing new products and

the opening of Kempinski’s first

services to entice travellers.

European luxury hotel and Resort in

Situated within the hospitality

Lebanon, Koro believes that technol-

industry for over a century, Europe’s

ogy has been a significant driver

oldest luxury hotel group, Kempinski

across the group’s operations. Working

Hotels, provides guests with unforget-

alongside designers and contractors,

table experiences, inspired by exqui-

Kempinski has overhauled its digital

site European flair. Believing that life

infrastructure and outdated network

should be lived in style, its growing

to radically enhance its performance.

collection of distinguished properties provide a five-star, European luxury

Implementing new digital tools

service, wherever the destination may be.

Implementing high standards across

“If you visit Kempinski Hotel Gold

its entire portfolio, Kempinski Hotel

Coast City, Accra you’ll immediately

Gold Coast City has adopted new

observe the European cultural fusion

digital tools to support staff and

engaged with technology. Likewise,

engage with customers.

SEPTEMBER 2018

FOOD & DRINK

“ Technology is going to further reshape the way we do business. All the big enterprises worldwide are focusing on the Internet of Things (IoT) and virtual reality (VR)” — Khaled Koro IT Manager for Kempinski Hotels

55

From migrating its fibre connection and increasing its bandwidth capabilities, the group has worked alongside esteemed technology leaders to install wireless and mobile technologies, network switching capabilities, point-of-sales systems for restaurants and more. Hence improving efficiency and reliability. m i d d l e e a s t . b u s i n e s s c h i e f. c o m

KEMPINSKI HOTEL GOLD COAST CITY

MANAGED PRINT SERVICES

Hardware

Supplies

Services

MANAGED DOCUMENT SOLUTIONS

Solutions Document Management

Capture

Webforms

Multi-year contract

www.waspltd.africa sales@waspghana.com

Process Automation

Reporting & Compliance

FOOD & DRINK

“ From video and audio conferencing to banquet conferencing, we are implementing a new digital solution to promote our events” — Khaled Koro IT Manager for Kempinski Hotels

For guests, Internet Protocol

“These applications will

Television (IPTV), is installed

instantly communicate the

in all rooms where they can

rooms’ status update, addition-

gain full access to view bills

al requests and more. Nowa-

and other interactive services.

days, Kempinski Hotel Gold

“We also use technology to

Coast City has invested in

enhance check-in and check-

migrating into mobile technol-

out experiences for guests

ogy. So, from having every

and suitable applications for

room attendant having

housekeeping, engineering

a smartphone, this particular

and other operational depart-

application has enhanced the

ments,” he adds.

employees’ productivity.” m i d d l e e a s t . b u s i n e s s c h i e f. c o m

57

KEMPINSKI HOTEL GOLD COAST CITY

Disrupting present business models Fully enhancing its network and guests’ services, Koro is continuing to seek new ways to further utilise data and analytics to transform ways of working and guarantee further business growth.

“Whether it’s a hotel property, museum, or tourist destination, guests are able to take a look without even leaving their living room due to upcoming 58

inventions in the next 10 years.

The goal is to offer a preview of what guests will experience, or offer the next big thing.”

“Technology is going to further reshape the way we do business. All the big enterprises worldwide are focusing on the Internet of Things (IoT) and virtual reality (VR),” explains Koro.

Recreating success Following the successful opening of its first hotel in Lebanon, Koro is expected to deliver the same success by moving to Accra, Ghana, and SEPTEMBER 2018

FOOD & DRINK

BIO

Khaled Koro joined the Kempinski Summerland Hotel & Resort, Beirut in 2016 as an IT Assistant Manager overseeing and managing the pre-opening phase of the Hotel. Which he played a main role in creating the successful story of Kempinski Lebanon.

Khaled joined Kempinski from the CampbellGray Hotels in Downtown Beirut, where he worked as an IT Administrator from 2014 to 2016 managing the IT operations of the 103 boutique key Hotel and leisure facilities. Khaled studied Information & Communication Technology at the American University of Science & Technology in Beirut. A Lebanese national, Khaled speaks basic German and Turkish, fluent in English and his mother tongue Arabic.

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

59

KEMPINSKI HOTEL GOLD COAST CITY

Click to watch: ‘Kempinski Hotels - An Iconic Resort in Beirut’

60

SEPTEMBER 2018

FOOD & DRINK

implement policies, standards and keep the technology upto-date with the latest software and hardware releases.

However, with limited technology providers available, challenges will be clear from the outset.

By partnering with authorised dealers and suppliers, Kempinski Gold Coast City has worked tirelessly to upgrade systems and servers and implement customer-focused tools and services. Eradicating the use of traditional newspapers, mobile applications and iPads are provided which enables e-newspapers to be accessed.

Guests can also stream media over TV, mobile and tablets.

For corporate guests, the hotel in Accra has successfully delivered exceptional banquet events by providing advanced technology and support. “From video and audio conferencing to banquet conferencing, we are implementing a new digital solution to promote our events at the hotel premises,� says Koro. m i d d l e e a s t . b u s i n e s s c h i e f. c o m

61

KEMPINSKI HOTEL GOLD COAST CITY

“Unlike the old days, the hotel lobby is equipped with a stateof-the-art digital screen guiding guests to the hotel events and their location.

“Future will utilise the VR technology in running more efficient “virtual” meetings whereby the individual won’t feel distant or remote from the other participants and would feel as all in one venue.

“Technology is going to further reshape the way we do 62

business. All the big enterprises worldwide are focusing on the Internet of Things (IoT) and virtual reality (VR),” explains Koro.

There will be truly no end to the value technology can add to travel and tourism, but we need to be careful it doesn’t become so good that guests prefer technology over the real thing.”

By embracing technology, eliminating all paper-led processes and reaching business maturity, Kempinski Gold Coast City is no stranger to change and will continue to train its staff members on all technology SEPTEMBER 2018

FOOD & DRINK

“ There will be truly no end to the value technology can add to travel and tourism” — Khaled Koro IT Manager for Kempinski Hotels

63

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

KEMPINSKI HOTEL GOLD COAST CITY

64

SEPTEMBER 2018

FOOD & DRINK

FACTS

• Khaled joined Kempinski Hotels in 2016 to support the opening of its first European luxury hotel and resort in Lebanon • Following the successful opening of its first hotel in Lebanon; Koro is expected to deliver the same success by moving to Accra, Ghana, and implement policies, standards and keep the technology up-to-date with the latest software and hardware releases.

• Kempinski Gold Coast City Hotel provides guests with unforgettable experiences, inspired by exquisite European flair

which it believes to be essential to business growth, catering for luxury and offer memorable experiences for our guests.

“We are always up-to-date with technology; we invest in our employees for them to serve our guests at their best.” notes Koro.

“There are few hotels that can match us. Our service, believe me, is more exquisite, and more guest-oriented — technology is set to take us to the next level.” m i d d l e e a s t . b u s i n e s s c h i e f. c o m

65

MIDDLE EAST BROADCASTING GROUP (MBC)

66

Procurement excellence for the small screen WRIT TEN BY

JA MES HENDERSON PRODUCED BY

HEYKEL OUNI

SEPTEMBER 2018

S U P P LY C H A I N

67

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

MIDDLE EAST BROADCASTING GROUP (MBC)

MBC’s procurement division is driving real value for the flourishing Middle Eastern broadcaster

A 68

s the first broadcaster

the last decade. When Lorraine Black joined MBC in 2007 – as the company’s new Head of Procurement, she helped build a team numbering just four which was very transactional in its nature.

to provide a satellitebased free-to-air

Changing perceptions

24-hour television network

“There were no specific pro-

across the Arab world, The Mid-

cesses, it was a basic operation,”

dle East Broadcasting Center

says Black, who led and man-

(MBC) holds a unique place in the

aged the process of CIPS

region’s “Media & Entertainment”

Organisational Certification,

industry. Established in 1991,

which resulted in MBC being the

MBC now offers 16 channels,

first company in Dubai, UAE to

broadcasting a varied line-up of

achieve CIPS certification of

programs and series, including

excellence of its purchasing poli-

flagship shows such as: ‘Arab

cies and procedures in 2008 (a

Idol’, ‘Arabs Got Talent’, ‘theVoice’,

number of MBC’s team are work-

‘theVoice Kids’, and ‘Project Run-

ing on achieving their CIPs

way ME’… among many others.

certifications currently).

MBC is a premium content-

An analysis of the department

centric, audience-focused

was undertaken to understand

company whose success has

the skills of the existing staff and

been underpinned by a procure-

pinpoint gaps that needed to be

ment team that is setting new

filled to create an effective and

standards in the MENA region -

valuable procurement function

thus proving itself to be of real

for the business. An enterprise

added-value to the business, over

resource system (ERP) was

SEPTEMBER 2018

S U P P LY C H A I N

“ The main challenges we faced was shifting the mind-set of our key stakeholders. Now, we work closely with all of our stakeholders, understanding the business and demonstrating where we add value” — Lorraine Black, Head of Procurement, MBC Group

69

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

S U P P LY C H A I N

implemented, processes and procedures introduced, and skills added, gradually building a well-rounded team.

As all procurement professionals know, the support of key stakeholders in the business – especially in the C-Suite – is vitally important, and Black says MBC is no different.

“The main challenges we faced was shifting the mind-set of our key stakeholders. Now, we work closely with all of our stakeholders, understanding the business and demonstrating where we add value.

“We also got support from MBC CEO office which made it a lot easier to drive our ideas forward and get buy-in from the company’s senior management. That’s been really important in working with various departments in a collaborative way, rather than as a standalone function. After we showed that we can add value and leverage our relationships with suppliers, the decision was taken that departments would stop getting quotations without the support and involvement of the

“ Our revenue is largely derived from advertising, and as we have little direct control over regional ad market fluctuations, it is critical to keep our costs under control. That makes Procurement strategic to our long-term profitability and success.

Their support has been essential to our migration from in-house systems to outsourced cloud services as part of our digital transformation efforts” — Joe Igoe, Group Director of Operations, MBC Group

procurement team. This has been a real positive shift,” Black concluded.

But don’t just take the procurement team’s word for it; Joe Igoe – Group Director of Operations, comments: “Our revenue is largely derived from advertising, and as we have little direct control over regional ad market fluctuam i d d l e e a s t . b u s i n e s s c h i e f. c o m

MIDDLE EAST BROADCASTING GROUP (MBC)

SERVICES

THE TECHNOLOGY DRIVING A PROCUREMENT TRANSFORMATION AT MBC

72

Business Intelligence Reports Business Intelligence reports have been the ERP solution to monitor spend managed through Procurement. The various dashboards are utilised for monitoring the compliance, category and contractual spend, procurement KPIs, procure-to-pay cycle, and supplier delivery performance.

This data analysis has been utilised by the procurement team for further discussions on process improvements/potential opportunities for savings and value addition.

E-Procurement The procurement team rolled out the E-Tendering system to modernise the procurement strategic sourcing activities. The use of this system has given a 360-degree view of the complete tendering process to all engaged parties.

Automating the system which provides quick comparison tools and reduces the scope for human SEPTEMBER 2018

errors has helped create a more efficient sourcing platform with reduced human effort.

Contract Management System Effectively managing and monitoring the financial and operational performance is critical to every organisation. Bearing this underlying factor in mind, the manual contract administrative and management process was assessed and an in-house Contract Management System was customised and developed to meet our requirements. This system has been effective and efficient in: Automating and accelerating the contract administration and management; managing all procurement contracts and related milestones; Strengthening governance/compliance; stakeholder engagement and collaboration; better visibility through reports; and complete transparency of contract process.

S U P P LY C H A I N

73

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

S U P P LY C H A I N

Click to watch: Middle East Broadcasting video: Studio City 75

tions, it is critical to keep our costs

and drive forward efforts to grow the

under control. That makes Procure-

business sustainably. These included:

ment strategic to our long-term

spend analysis across the group,

profitability and success. Their support

encompassing various categories, sup-

has been essential to our migration

plier segmentation using the Krajlic

from in-house systems to outsourced

Model, assessment of procurement

cloud services as part of our digital

technologies and the alignment of

transformation efforts.�

MBC’s corporate and business strategy with that of the procurement depart-

Driving growth As part of its effort to shift attitudes

ment.

On the benefits of the thorough

about the role of procurement, the team

research and planning that has been

at MBC carried out detailed analysis of

undertaken, Black comments: “With the

key strategic activities to understand

development of the procurement techm i d d l e e a s t . b u s i n e s s c h i e f. c o m

MIDDLE EAST BROADCASTING GROUP (MBC)

“ As a team we were at the centre of a lot of conflict resolution, so we had to be skilled at providing solutions for the site. It took all of our expertise to make the project a cohesive one, pulling everybody together, making sure that all of the elements and all of the pieces of the puzzle actually fell down at the right time, in the right location”

76

— Durdana Farid, Procurement Manager at MBC Group

SEPTEMBER 2018

S U P P LY C H A I N

nologies, we have been able to cater for

notably MBC’s $20mn facility in Dubai’s

the growing needs of business and ena-

Studio City district.

bling the shift from the cost only to the cost-plus-value model.

Completed in May 2017, the state-ofthe-art studios used for programming

“Efficient use of technology through

for MBC’s satellite network, primarily

effective collaboration with stakehold-

MBC1 and MBC3, and online portals,

ers has been leveraged for operational

complement its headquarters in Dubai

excellence and alignment of strategies,

Media City. At least seven shows are

while collaborative negotiation plans

produced at the studios, which the com-

have brought the best of industry knowl-

pany says are key to being able to

edge and commercial leverage on the

attract top talent, the right expertise,

table enabling multitude of benefits in

and bright, creative minds of the various

securing interruptive value propositions.

disciplines that are related to the crea-

“In addition, supplier value management is imperative to the success of

tive and production fields.

The nature of TV schedules meant

procurement. So, a 360 degree view of

that the deadline was tight, with a pleth-

supplier positioning and business per-

ora of stakeholders to manage. In the

spective has been used to align our

absence of a contracting consultant,

critical suppliers with business strategy

the procurement team worked to

and growth.”

ensure all the elements that were needed to being the project in on time

Building the future

were in place.

With the company fully bought in to the

“A lot of the detail on a project like this

value offered by a skilled and dynamic

are small, but really important to its suc-

procurement function, the team has

cess,” says Durdana Farid, Procurement

grown, and now numbers 26 profes-

Manager at MBC. “The timeline was

sionals across MBC offices.

very demanding, and to hit our tight

As well as the best-and-braces work

deadline we had to ensure we were

the department oversees, it has proven

accurate with all of the detail, such as

invaluable on some major projects,

ensuring all elements of the project m i d d l e e a s t . b u s i n e s s c h i e f. c o m

77

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S U P P LY C H A I N

were compliant to their timelines, from authority approvals to contractors meeting their milestones, to the equipment being delivered on the right time and all the way down to the carpet and furniture for the studios.

The deadline – four months, to be exact – meant that the procurement team had to be a highly effective conduit to bring together all stakeholders working on the project.

“There was a lot of back and forth; and a lot of input from the procurement department,” Farid continues. “As a team we were at the centre of a lot of conflict resolution, so we had to be skilled at providing solutions for the site.

79

It took all of our expertise to make the project a cohesive one, pulling everybody together, making sure that all of the elements and all of

budget target. We spoke to hun-

the pieces of the puzzle actually fell down at

dreds of parties, leveraging the

the right time, in the right location.”

relationships we have built over

The procurement department’s established

the years, both within the com-

relationships with suppliers that have been

pany and with external partners,

developed and nourished over the years were

and were able to bring them

critical to the project’s overall success.

together to agree on really impor-

“The budgets were very tight, with minimum contingency,” says Farid. “So, despite of the

tant issues for the good of the project.”

fact that we had contracted system integrator and contractors, we went to each manufac-

Procurement never sleeps

turer, we have built relationships with and

The business of round-the-clock

negotiated with them directly, which helped

television means MBC’s procure-

the contractor bring down costs and hit the

ment team is not perhaps typical of m i d d l e e a s t . b u s i n e s s c h i e f. c o m

MIDDLE EAST BROADCASTING GROUP (MBC)

80

SEPTEMBER 2018

S U P P LY C H A I N

81

“ We’re not working in a manufacturing plant, or for a bank; we’re working in a fast-paced and competitive creative industry. It means we have to be really dynamic, versatile and slick at what we do” — Lorraine Black, Head of Procurement, MBC Group

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

MIDDLE EAST BROADCASTING GROUP (MBC)

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S U P P LY C H A I N

have our budgets and ensuring we’re onboarding the correct partners and suppliers, and we also know that we have a duty to make sure the end product is a

1991

Year founded

high-quality one.”

Again, says Farid, the work that the procurement team has put in over the years to build relation-

1,800 Approximate number of employees

ships is paying dividends. “We often work in a live environment, so we need people who we can call in to come in and fix an issue at 2am, or ensure a delivery is made in the middle of the night.

We need to have that flexibility and

those working in other industries.

As Black puts it: “We’re not working in a

that’s when we need something to be free of charge or if some-

manufacturing plant, or for a bank; we’re

thing goes wrong and we need a

working in a fast-paced and competitive crea-

new camera, so it’s important our

tive industry. It means we have to be really

suppliers understand our needs.

dynamic, versatile and slick at what we do.

“We cannot have suppliers that

“Procurement in this region can often be

we don’t have that kind of relation-

very fast, transactional and functional, so it’s

ship with, because the outcome

often about pricing structures and cutting

or the effect that it could have on

costs. But, we work in an environment where

one of our shows on the commer-

the content and quality that we put on-screen

cial impact it could have could

has to be good. The production values on

be huge. So, we ought to be very

shows such as Arab Idol, The Voice and Top

careful when we deal with our

Chef have to be first-class, so on one hand we

suppliers, that we are getting m i d d l e e a s t . b u s i n e s s c h i e f. c o m

83

MIDDLE EAST BROADCASTING GROUP (MBC)

84

“ MBC procurement team has not only saved us a lot of money in a challenging market, but has helped us get closer to our most important suppliers and partners, at a time of major industry changes” — Sam Barnett, CEO, MBC Group

SEPTEMBER 2018

S U P P LY C H A I N

suppliers who actually understand our business and what our requirements are.”

value,” she says.

“Even with the big productions, we need the buyer there so they

The efforts have been recog-

understand any problems and

nised across the company, right

are able to resolve issues. That

to the very top, says MBC’s CEO,

relationship with the supplier on

Sam Barnett, who comments:

the ground is really key.

“Our procurement team has not

“As a department, our people

only saved us a lot of money in a

have to be versatile and have

challenging market, but has

really good communication

helped us get closer to our most

skills. We can teach buying

important suppliers and part-

skills and negotiation, but the

ners, at a time of major industry

ability to adapt to situations and

changes.”

communicate effectively is what we want.

Buying power

It is a strategy that appears to

In a bid to improve the procure-

be paying dividends, says Farid:

ment function yet further, Black

“I deal with a lot of suppliers and

says MBC is changing the behav-

one constant feedback that we

iour of its buyers to ensure they

always receive is that MBC pro-

are recognised as influencers

curement is one of the most

within the business. The days of

engaged procurement depart-

buyers sitting at their desks,

ments in the industry.”

removed from stakeholders, are gone – it’s all about engagement and interaction.

“We need our buyers to be on the ground and understand the dynamics of the business if we want to continue to add real m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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