Business Chief Middle East – December 2018

MIDDLE EAST EDITION DECEMBER 2018 middleeast.businesschief.com

Emaar, The Economic City A digital transformation of the student experience

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E XCLU S IVE I NTE RVI E W

A $20bn procurement transformation MICHAEL GUSTAFSON DISCUSSES THE COMPANY’S INNOVATIVE PROCUREMENT STRATEGY

Rotana Hotel Management: a story of sustainable growth

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WELCOME

W

elcome to the December issue of Business Chief Middle East!

In our cover story this month we speak with Petro Rabigh’s General Manager of Material, Procurement and Contracts, Michael Gustafson, who outlines how the petrochemical company is responding to the Saudi Vision 2030 amidst significant change. Investing in their supply chain strategies, Gustafson details the way the firm continues to thrive in a country diversifying its economy away from oil. With around 80 projects expected to be completed in Saudi Arabia by 2030, Gustafson believes it’s an interesting time to be involved in such a historic process.

Elsewhere this month, we also speak to Abu Dhabi University, Emaar and Rotana Hotel Management in what is another jam-packed edition.

We also zone in on international IT services business, Halian, who showcases how leveraging new technologies through building strong partnerships has led to its ongoing expansion within the Middle East. CEO and cofounder, Levon Antonian, discusses how technologies can be utilised as an enabler and an equaliser within its ongoing transformation.

Additionally, we look at how Manama is transitioning its economy away from oil and is set to embrace new ventures.

A city rich in history; Manama provides its visitors with a unique experience.

And our top 10 also ranks the richest people in the Middle East.

Enjoy the issue!

Sean Galea-Pace. sean.galea-pace@bizclikmedia.com

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

05

CONTENTS

10 Petro Rabigh

06

disrupting IT in MENA

44

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simplicity is key amid its digital transformation

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70 07

80

Top10

Wealthiest people in the Middle East

CONTENTS

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92 Emaar, The Economic City

112 Abu Dhabi University

126 Rotana Hotel Management

10

DECEMBER 2018

S U P P LY C H A I N

Transforming supply chain strategies at Petro Rabigh WRIT TEN BY

SE AN GA LE A-PACE PRODUCED BY

HE Y K EL OUNI

11

w w w.busi ne ssc hief. com

PETRO RABIGH

Michael Gustafson, General Manager of Material, Procurement and Contracts discusses the procurement methods that Petro Rabigh is utilising through significant change in Saudi Arabia

12

I

n a country driven by change amidst the incoming Saudi Vision 2030, companies in Saudi Arabia have an obligation to

adapt to and embrace the latest trends in order to thrive in a competitive petrochemical industry.

With ambitions of becoming one of the most profitable refinery and petrochemical plants in the world, Petro Rabigh knows first-hand just how vital the next few years are to the future of Saudi Arabian businesses.

Originally formed in 2005 as part of a joint venture between Saudi Aramco and Sumitomo Chemical, Petro Rabigh produces 18.4mn tons per annum (mtpa) of petroleum-based products and 2.4mtpa of ethylene and propylene-based derivatives.

With the plant’s Phase I and recently launched Phase II together valued in the region of $20bn, Michael Gustafson, General Manager of Material, Procurement and Contracts, believes that these DECEMBER 2018

S U P P LY C H A I N

“ We have two incredible foundation partners in Saudi Aramco and Sumitomo Chemical; a terrific partnership with aligned goals that have brought the strengths and diversity of two great organisations into this project” — Michael Gustafson General Manager of Material, Procurement and Contracts

mi ddl e e a st .busi ne ssc hief. com

13

PETRO RABIGH

foundation partners laid the ground

MAINTAINING PROCUREMENT STRATEGIES

work for the company’s success.

As a way of affirming Petro Rabigh’s

“We have two incredible foundation

14

commitment to the Saudi Vision, the

partners in Saudi Aramco and Sumi-

company has confirmed the imminent

tomo Chemical; a terrific partnership

arrival of The Petro Rabigh Phase II

with aligned goals that have brought

expansion project, which provides an

the strengths and diversity of two

even more diversified product slate

great organisations into this project,”

with the implementation of a number

says Gustafson. “Both companies

of new high added value petrochemical

possess a deep set of technical and

products. The project is set to cost

commercial experiences and world

approximately $9.4bn with capital

class product mix that continues to

project debt funding. Gustafson

improve with expansions to capitalize

outlines the procurement strategy his

on the strategically placed location

company is utilising in this exciting

and resources.”

new era for the Kingdom.

DECEMBER 2018

S U P P LY C H A I N

“ People think of procurement as being some sleepy, back office support group.

But, it’s not. You’re actually on the front line and if this spare part, chemical additive, or catalyst doesn’t arrive on time, you could shut down a facility” — Michael Gustafson General Manager of Material, Procurement and Contracts

15

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S U P P LY C H A I N

“We’ve almost finished Phase II to

under the same roof. Gustafson

expand our business. It’s like you’re

maintains its current procurement

running on a treadmill and the speed

strategy is to enhance its existing

is set at a six-minute mile but you’re

arrangements.

used to running an eight-minute mile,”

“In general, the majority of our

he explains. “People think of procure-

strategy is to push our agreements

ment as being some sleepy, back

and expand into MRO and chemical

office support group. But, it’s not.

agreements,” he explains. “This is

You’re actually on the front line and if

opposed to the ongoing spot buying

this spare part, chemical additive, or

that takes place, which decreases the

catalyst doesn’t arrive on time, you

time it takes to turnaround, as well as

could shut down a facility.”

the cycle time.”

Procurement is certainly an area

In a bid to handle its supply chain

that Petro Rabigh prioritises. The

items more effectively, Petro Rabigh

firm has three different departments

has made the decision to split into

operating in that area of its organisa-

two separate groups.

tion; with contracting, material handling and procurement all housed

“The group here in Saudi Arabia handles all the inbound supply items

E X E C U T I V E P R OF IL E

Michael Gustafson Having joined Petro Rabigh in 2017, Michael has used his 25+ years of experience and knowledge from working in commercial and business development, acquisitions, divestiture and supply chain management to develop the supply chain infrastructure for the $20bn Refinery & Petrochemical business in Saudi Arabia.

Michael has outlined his intention for Petro Rabigh to embrace the incoming Saudi Vision 2030 and is responsible for driving the company’s procurement strategy.

mi ddl e e a st .busi ne ssc hief. com

17

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S U P P LY C H A I N

CLICK TO WATCH : PETRO RABIGH ENRICHING LIFE 19

and we have a separate organisation that is responsible for the finished goods and products. It’s primarily more of a marketing and sales function,” explains Gustafson. “Alongside that, there’s the production planning which coordinates what the needs of the refinery and petrochemical business are, as well as the requirements of our customers. I believe it’s very much a collaborative effort to enable the supply chain to get going.”

With the company investing almost $400mn annually on its supply chain

“ The group here in Saudi Arabia handles all the inbound supply items and we have a separate organisation that is responsible for the finished goods and products. It’s primarily more of a marketing and sales function” — Michael Gustafson General Manager of Material, Procurement and Contracts

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S U P P LY C H A I N

21

activities, Gustafson is well aware

EMBRACING SAUDI VISION 2030

just how big Petro Rabigh’s supply

In a bid to reduce Saudi Arabia’s

chain is. “The magnitude of it is that

reliance on oil and diversify its economy,

it spans to over 2,000 suppliers

Crown Prince Mohammad bin Salman

worldwide that are split evenly

announced plans in 2016 to launch

between America, Asia and Europe,”

Saudi Vision 2030. With around 80

says Gustafson. “Of those, we have

projects expected to be completed in

around 1,200 really active, highly

Saudi Arabia by 2030, Gustafson

consumable suppliers. They deal

believes it’s an interesting time to be

with everything from highly danger-

involved in such a historic process.

ous explosive and chemical addi-

“These are exciting times for Saudi

tives, all the way to papers and pens.

Arabia. When I tell my friends about it

We cover the full spectrum.”

back home in America, I feel like I’ve mi ddl e e a st .busi ne ssc hief. com

C OMPA N Y FA C T S

22

Rabigh Refining & Petrochemical Co. — Petro Rabigh — was founded in 2005 by the Red Sea in the Kingdom of Saudi Arabia as a joint venture between Saudi Aramco and Sumitomo Chemical from Japan. The original 10-billion dollar Phase I of the plant is the world’s largest single-phase integrated refining and petrochemicals complex, making the company one of the Kingdom’s largest producers of polypropylene, polyethylene and mono ethylene glycol, and the sole producer of propylene oxide in the Middle East. The Phase II expansion, which came into full operation in early 2018, diversifies the product slate with new high value-added petrochemicals aimed at making the Kingdom’s downstream industry more competitive and affording potential investors the opportunity to manufacture new products and create new jobs and skills.

DECEMBER 2018

S U P P LY C H A I N

23

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Axens is a leading global

OIL REFINING

provider of technologies, catalysts, adsorbents, services and equipment.

PETROCHEMICALS

Axens solutions are used at major industrial plants around the world.

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S U P P LY C H A I N

“ These are exciting times for Saudi Arabia.When I tell my friends about it back home in America, I feel like I’ve got a front row seat,it’s a major transformation in the Kingdom and these are fabulously exciting times.There are things going on in Saudi Arabia that are truly historical” — Michael Gustafson General Manager of Material, Procurement and Contracts

25

got a front row seat,” explains Gustafson. “It’s a major transformation in the Kingdom and these are fabulously exciting times. There are things going on in Saudi Arabia that are truly historical.”

Petro Rabigh has responded to Vision 2030 by embracing all 24 areas highlighted in the vision to provide a thriving economy, a vibrant society and an ambitious nation for the Kingdom of Saudi Arabia. In order to meet these requirements, Petro Rabigh has rolled out a number of initiatives such as plans to increase women’s participation in the mi ddl e e a st .busi ne ssc hief. com

PETRO RABIGH

to logistics and building relationships

FORMING KEY STRATEGIC PARTNERSHIPS

for additional direct foreign invest-

Establishing and maintaining key

ments. However, Gustafson insists

partnerships are vital to any success-

Petro Rabigh isn’t finished yet.

ful business. Over the last five years,

workplace, supporting improvements

“We could and will do more in the

Petro Rabigh has collaborated with

area of women participating in the

Germany-based logistics firm, DHL,

workplace; I just hired the first female

to provide all of its inbound logistics

secretary at Petro Rabigh and she’s

activities, in addition to operating its

doing a great job,” says Gustafson.

warehouses. However, having consult-

“We also have several women within

ed their Key Performance Indicators

the supply chain organisation and we

(KPIs), Petro Rabigh recently split the

intend to hire more in the future.”

contract with Kuehne & Nagel to

26

DECEMBER 2018

S U P P LY C H A I N

handle all of the company’s interna-

hip. DHL and Kuehne & Nagel are

tional forwarding activities.

two world class organisations and

“We’re very excited with this joint effort between the two

they’ve done a great job.”

Gustafson affirms how much

companies. It will enable us to draw

Petro Rabigh relies on the consist-

on the strengths of each company

ent performance of its suppliers.

to ensure a smooth supply chain

“The notable suppliers that have

process,” says Gustafson. “They

been consistently reliable for our

are our two primary partners that

business include the likes of CS

we’ve got on the logistics side and

Japan, Gold Wing, Axens, Eable-

they’re absolutely essential to us.

Burgmann and SPIG. We’re highly

Our partners have to over-commu-

dependent on the performance of

nicate and be joined with us at the

these five outstanding suppliers/ 27

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Range of products and services

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Seal supply systems

Magnetic couplings

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Compression packings, Gaskets

Expansion joints

Special products

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S U P P LY C H A I N

vendors in particular, as well as to

investment opportunities to local

the other 1,200 active suppliers in

and foreign investors in conversion

our network.”

industries. Gustafson believes it’s

The introduction of Petro Rabigh’s

an ideal investment opportunity.

collaboration with Rabigh PlusTech

“This large scale, secure complex

Park saw it become the first private

also houses the Sumitomo Chemical-

industrial estate for conversion

run Rabigh Plastic Technical Centre

industries in Saudi Arabia. Located on

that provides tenants with technical

a site adjacent to the Petro Rabigh

support and training in plastic

refinery, it provides a place to convert

processing technology, warehousing,

petrochemical products into down-

plug and use utilities and feedstock

stream products and offer substantial

supply agreement opportunities for

29

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S U P P LY C H A I N

31

sustainable, competitive prices,” says Gustafson. “Rabigh PlusTech Park provides for 37 investors, including nine manufacturing companies that have started production, eight that are under construction and over 30 under negotiations.”

SUSTAINING A SUCCESSFUL FUTURE Petro Rabigh has begun to explore options to fully automate its warehouse operations and review the way they receive, monitor and move spare parts

“ Rabigh PlusTech Park provides for 37 investors, including nine manufacturing companies that have started production, eight that are under construction and over 30 under negotiations” — Michael Gustafson General Manager of Material, Procurement and Contracts

mi ddl e e a st .busi ne ssc hief. com

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S U P P LY C H A I N

$10bn Approximate revenue

2005

Year founded

3,600 Approximate number of employees

33

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How have we maintained top sales in the logistics equipment field since our founding in 1972?

Chiba Sogyo has continued to support the distribution which is the core of our economic activities. Ever since our founding, we have constantly led the logistics equipment industry.

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S U P P LY C H A I N

35

around. This ability to consistently adapt to change is something Gustafson places a lot of importance on.

“In the area of supply chain, I believe we still have work to do in digital transformation,” explains Gustafson.

“However, in other areas of the company there has been much more progress made, especially in operations.”

“When things start to change, you’ve got to be able to adapt very quickly.

Whether it’s changing your grades or

“ When things start to change,you’ve got to be able to adapt very quickly.Whether it’s changing your grades or the type of product mix that you can develop” — Michael Gustafson General Manager of Material, Procurement and Contracts

the type of product mix that you can mi ddl e e a st .busi ne ssc hief. com

PETRO RABIGH

Our Website Contact us DECEMBER 2018

S U P P LY C H A I N

37

develop. You’ve got to stay ahead. We’ve got a lot of big changes going on at

ongoing operations,” says Gustafson.

“Our processes and practices must

the moment with climate change and

change and this will be enabled through

environmental conditions. And if we

the finalisation of the ARIBA implemen-

don’t change, then it’s going to hurt us.”

tation, integration with SAP and further

As far as the future is concerned at

digitalisation of the processes.”

Petro Rabigh, the company has lofty

“This is crucial for us to handle the

ambitions of becoming the best in class

increase in volume due to the expand-

in the Gulf Cooperation Council (GCC)

ed capacity of the operation. We must

within the next 18 months. “We have to

reduce the number of touches on work

deliver on the business expectations in

orders from procurement to pay with

two areas: 99% availability and on-time

seamless vendor integration through

delivery of materials to support the

the process.” mi ddl e e a st .busi ne ssc hief. com

Tel +966 13 341 0515 | Fax +966 13 341 1052 | E-mail info@goldenwing.com.sa | www.goldenwing.com.sa

Golden Wing has been providing industrial solutions for the petrochemical bulk material and wrapping industry in Saudi Arabia for almost 40 years. The portfolio comprises the installation of total systems for filling, palletizing and wrapping as well as conveyor technology.

From its history as an equipment supplier, Golden Wing grew into an EPC contractor.

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S U P P LY C H A I N

39 Petro Rabigh also plan to begin to take steps to become a world-class service minded organisation that will enable the firm to provide exceptional customer service that goes beyond expectations.”

“This can happen when we break down silos, over communicate to customers and provide proactive service levels with their absolute best interest in mind,” explains Gustafson. “We will do this through cross development opportunities with operations, by co-locating people closer to the customers they

“ Our processes and practices must change and this will be enabled through the finalisation of the ARIBA implementation, integration with SAP and further digitalisation of the processes” — Michael Gustafson General Manager of Material, Procurement and Contracts

serve and rewarding people for delivering on their commitments.” mi ddl e e a st .busi ne ssc hief. com

PETRO RABIGH

Petro Rabigh also plans to increase its employee development, training and planning to ensure everyone successfully obtains their Certified Supply Chain Professional certification as well targeting an 85% or higher Saudization level and a 40% rise in the hiring of women. In addition, the firm expects to make a more deliberate effort in its supply relations and strategic sourcing.

“We will be conducting a major supplier recognition conference soon 40

in order to build deeper, strategic relationships with key suppliers and vendors,” says Gustafson. “This will take time, but the idea is to personally visit our key suppliers for them to understand the direction we’re going, how they can optimally support and ways we can further collaborate together to meet the Saudi Vision 2030 plans.”

With major changes incoming at Petro Rabigh and in Saudi Arabia itself ahead, Gustafson remains determined that the future is bright for the company in the next 18 months and beyond.

“The vision for the future is to continue to make the Material, Contracting and DECEMBER 2018

S U P P LY C H A I N

“ The vision for the future is to continue to make the Material, Contracting and Procurement organisation a great place to work” — Michael Gustafson General Manager of Material, Procurement and Contracts

Procurement organisation a great place to work. We also envision becoming a leader in driving collaborative value through matrixed processes, creativity commercial acumen and focused commitment to the priorities that will make Petro Rabigh the most valuable company in the region.”

mi ddl e e a st .busi ne ssc hief. com

41

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LEADERSHIP

44

disrupting IT in the Middle East Business Chief caught up with Levon Antonian, co-founder and CEO of Halian, and learned how the challenger is leveraging new technologies with its partners to deliver IT services across the Middle East WRITTEN BY

DECEMBER 2018

DAN BRIGHT MORE

45

mi ddl e e a st .busi ne ssc hief. com

LEADERSHIP

B

ack in 2009, while sat on a ski lift in the mall of the Emirates at Ski Dubai, Levon

Antonian had what he describes as

a “eureka moment”. Having just spent three days meeting with customers, the co-founder and CEO of IT services challenger Halian realised although everybody seemed to be leaving Dubai, there was a great opportunity to step in and, through alliances

with its partners, set up a hub in the Middle East.

“We’ve since deeply evolved the UAE part of our business to a point where it’s now the biggest part of our overall IT services offering,” says a proud Antonian. “We found a niche market here where 46

we’ve gone from being a frontier start-up to the mainstream partnering with major organisations in finance, healthcare, education and more to help them deliver their IT services across the region.”

Following an established pattern from the UK and Europe, Antonian believes by being entrepreneurial in spirit and retaining the agility to understand and meet its customers’ demands allows Halian to be open to delivering across a range of sectors from end user customers to big outsource players who need the help of a skilled third party. “We’ve been around for over 20 years and grown from an IT sourcing business to add value by evolving our services from delivering talent through our Resourcing Services, providing Managed Services (typically outsourced BAU services) and end-toend Project Services. We’ve found our customers DECEMBER 2018

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47

LEADERSHIP

CLICK TO WATCH : ‘THE HALIAN WAY’ 48 find the integration of all three difficult to find elsewhere and it’s one of the things that sets us apart.”

This commitment to tailoring better ways of working is something Antonian defines as ‘The Halian Way’: “Our approach is to build a realistic picture of where you are today, identify what you want to achieve - and then help you deliver it as rapidly as possible. So, you see the benefits of your investment in weeks, not months or years. How do we do this? By working alongside you as a partner, not just a supplier. By employing talented people with rare DECEMBER 2018

skills and enormous experience. And by protecting your bottom line as if it were our own.”

Building alliances and partnerships with brands like HP and Oracle to leverage a breadth of services and technologies is more than just good strategy for Antonian: “We help them deliver on their promise to their customers,” he pledges. “I worked in that arena for one of the big vendors, way back when, and it’s not necessarily an easy thing…

You need to know how to work around them.

These partnerships help us rapidly scale up and deliver across different geographies.

They may have their own resource pools and capabilities but they don’t always mobilise them efficiently which is where we can provide speed of execution for customers as well as partners like HP and RedHat. We know it’s in our benefit to work with customers on multiple projects so our whole ethos is geared towards establishing lasting partnerships with deep services - not just an accreditation with a vendor but a working partnership with organisations. Some of our best customers have been with us from the start and we’re still working with the likes of Dell EMC in the UAE going back to 2009.”

Antonian believes companies should use technology as an enabler and equaliser, so how does Halian approach innovation and mi ddl e e a st .busi ne ssc hief. com

49

LEADERSHIP

“ We’re working with Microsoft on the Azure platform (Halian boasts Microsoft Gold Partner Accreditation) where the biggest gate that’s just been opened is the announcement from Microsoft that data centres will be developed in the UAE” 50

— Levon Antonian, Co-founder and CEO of Halian

harness new technologies to develop

person’s capability. We need to carry

its offering? “We’re a challenger,

out deep talent research across global

constantly taking on the big guys…

markets so we’re looking at ways to

One of the levellers can be the smart

harness AI to capture people from

use of the applications becoming

a diverse range of networks. It’s a way

available. We’ve recently announced

we can move faster and stay sharp.”

a partnership with Talent Cracker,

The biggest challenge for Halian in

a unique assessment tool. In our

the Middle East is the bureaucracy

business we’re constantly looking

surrounding visas and work permits

for talented people and envisage this

reveals Antonian: “It’s all about getting

tool helping us to find the right talent

people in and out compliantly and

first time and be able to assess that

requires a large investment in dedicated

DECEMBER 2018

51

government relations - we’ve fostered

like the Philippines and India allows us

that. It’s one of the first things we learned

to mobilise teams of people to work

when we arrived here as a business as

both effectively and competitively on

it facilitates getting our people started

mission critical operations.”

on engagements. We have to look at

Antonian notes a huge take up in the

this carefully as when we’re sourcing

cloud provision approach to IT services

we have 35 different nationalities working

which demonstrates increased produc-

for us with 50% of our workforce hailing

tivity and security, reduction in costs

from the Indian subcontinent. The

and environmental benefits. “We’re

combination we can achieve of high

working with Microsoft on the Azure

skills combined with the cost advantage

platform (Halian boasts Microsoft Gold

of the workforce coming from places

Partner Accreditation) where the biggest mi ddl e e a st .busi ne ssc hief. com

LEADERSHIP

H A L I A N ’ S PA R T NE R S

HP A key partner for HP’s Technology Services division, working on some of the biggest and most ambitious projects in the Gulf region while collaborating on major European Union infrastructure services.

52

Oracle A Gold Level Partner, we’re delivering services across the Middle East, Africa, and Europe for some of Oracle’s biggest enterprise users. The combination of Oracle’s product strategy and Halian’s service capability provides flexibility and choice to customers across their IT infrastructure and applications base.

DECEMBER 2018

gate that’s just been opened is the announcement from Microsoft that data centres will be developed in the UAE,” he adds. “There was a previous reluctance around data security with putting information in the cloud when it was outside national borders - that’s been blown away.”

A certified SaaS partner with PwC, providing software asset management services on a multi-year basis to help customers manage and optimise their cloud services to get the best out of their investment, Halian is well placed to deliver on the promise of cloud as it matures from adoption to optimisation.

With a growing presence across the Emir region, Halian deliver at scale across different jurisdictions and markets, helping customers with their procurement, compliance, insurance and risk management from offices in Doha and Dubai. The synergy with the company’s international focus allows it to draw from different locations to deploy staff. “From a practical point of view, in Emir we have senior sponsorship in one region capable of rubbing shoulders to make introductions which helps us with cross-selling our services,” adds Antonian. mi ddl e e a st .busi ne ssc hief. com

53

LEADERSHIP

54

H A L I A N ’ S PA R T NE R S

Red Hat A Red Hat Premier Business Partner in Luxembourg, with a certified technical team delivering high-value solutions to a variety of corporate and governmental enterprises. Red Hat is the world’s leader in enterprise Linux and the most recognised open-source brand in the world.

Since 2012, Halian have been working with the Ministry of Health & Prevention’s Wahid program across the UAE on its one patient record system. “If you go into any public hospital or health clinic in the UAE doctors and clinicians can access your records wherever they may be. We’re executing this in partnership with Cerner and their Millennium product delivering application support across the UAE utilising 70 of our staff. It’s driven a significant transformation

DECEMBER 2018

“ We’ve been around for over 20 years and grown from an IT sourcing business to add value by evolving our services from delivering talent through our Resourcing Services into offering Managed Services (typically outsourced BAU services) and end-to-end Project Services” — Levon Antonian, Co-founder and CEO of Halian

55

in health care facilities and will continue

in the cloud. We’re also hoping to engage

to save lives so we’re very proud to be

on a smart city project in the near future.”

involved,” says Antonian. Halian is also

Antonian predicts that the key

involved with the government’s Smart

component for the future provision of

Dubai initiative and working with HPE

IT services will be integration, whether

(Hewlett Packard Enterprise) to deliver

it’s the integration of services or the

ongoing infrastructure support. “At

way we access them in terms of the

a project level we’re also working with

way business processes, security and

the likes of ENOC (Emirates National

data need to be integrated. “Simplifica-

Oil Company) and Emirates to help

tion is an aim but with that aim comes

them with their optimisation and cloud

complexity,” he maintains. “The future

investment,” he adds. “We’ve just finished

will be around improving the integration

a project with ENOC which is enabling

of all aspects of technology, it’s a long

them to save 27% on their annual costs

and hard road we’re happy to be mi ddl e e a st .busi ne ssc hief. com

LEADERSHIP

journeying on.” Antonian asserts that journey into 2019 will see increased demand for the outsourcing of IT services, which plays well to Halian’s Managed Services offering, with a continued focus on efficiencies, cost reduction and security: “Finding the right talent to do all of this is key. We’re fairly bullish about what we can achieve with a bigger sales and technical team here in Dubai for the delivery of our services across the region than ever before.”

It’s a bullishness that’s well founded as Halian is currently working with the Ministry 56

of Finance around the eDiram, and partnering with DXC to deliver what Antonian promises will be “a very significant project”. Halian will also be expanding its work with Cerner while partnering on a cyber-security operation centre with Symantec. Underpinning this, the company has also been appointed Dell EMC’s partner of choice in the region for data centre and cloud migration projects. To get to this point Antonian stresses that being different in a very crowded market is important to add value and maintain relationships.

“I previously worked for the Digital Equipment Corporation (DEC) and Sun Micro Systems,” he remembers. “At the time they were among the market leaders in enterprise tech along

DECEMBER 2018

“ We’re fairly bullish about what we can achieve with a bigger sales and technical team here in Dubai for the delivery of our services across the region than ever before” — Levon Antonian, Co-founder and CEO of Halian

CLICK TO WATCH : ‘COMMVAULT — AN INTRODUCTION’ 57 H A L I A N ’ S PA R T NE R S

with the likes of IBM. These were

CommVault The first CommVault partner in the Middle East & Northern Africa territories, including Greece, Cyprus, and Malta, to offer CASP services. These include a 24/7 Arabic-speaking help desk, on-site health checks and critical support services while helping customers gain greater benefits from Simpana’s data management platform.

leaders who lost their edge. It taught me that however big you are you shouldn’t get complacent and you still need to work hard to find that extra value. We are a people business so having a humility about the people you work with and having good people around you is the big thing you realise over time - it’s not just about a product or a service… At Halian we believe it’s important for our people to feel they are doing something worthwhile.”

mi ddl e e a st .busi ne ssc hief. com

TECHNOLOGY

58

Spreadshirt

simplicity is key amid its digital transformation AS TECH ADVANCES, KEEPING THINGS SIMPLE CAN DRIVE EFFICIENCY AND HEIGHTEN CUSTOMER EXPERIENCE, SAYS PHILIP ROOKE, CEO OF GLOBAL ECOMMERCE COMPANY SPREADSHIRT WRITTEN BY

DECEMBER 2018

OLIVIA MINNOCK

59

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TECHNOLOGY

F

rom promoting snappy slogans and allowing people to create to helping entrepreneurs and small businesses

thrive, global self-expression company Spreadshirt made its name as a European

T-shirt printer, but is now fast becoming a much more diverse, global entity. When we last spoke to CEO Philip Rooke, the company was just starting to expand in the US. Now, it has reached over €100mn revenue thanks in part to this new market and is looking to optimise efficiency and stick to its customer centric vision in order to help the European business grow in uncertain times where 60

productivity is ever more important.

“The majority of our business is European,” says Rooke. “That’s what drove us over €100mn (US$114mn) revenue.” Last year, Spreadshirt reached €106mn (US$121mn) in revenue, making €8.6mn (US$9.8mn) EBITDA. “This probably makes us the most profitable in our industry, and that’s because we’re able to concentrate on the right things.”

For Spreadshirt, the US marks a mammoth opportunity, but the region is not without its challenges. “America is a huge market – the average American buys 9.4 T-shirts per year, while the average German buys 4.5,” Rooke explains. “More importantly, in most European countries we have three DECEMBER 2018

61

“American companies are very good at being lean, agile and customer focused” — Philip Rooke, CEO, Spreadshirt

or four competitors – and are nearly always number one – but in America we’re tracking 200 companies to compete with.” In this relatively new territory, Spreadshirt must step up to the plate and enhance customer experience for the modern, tech-savvy consumer. “Americans are not very patient,” Rooke observes. “If your usability is poor, they leave for a competitor. We really had to work on getting the experience much simpler.

“American companies are very good at being lean, agile and customer focused,” he adds.

As such, a key transformation Spreadshirt has implemented, not only in the US but mi ddl e e a st .busi ne ssc hief. com

TECHNOLOGY

throughout its business, is to simplify

our customers do that in their spare

everything from production processes

time? I look with horror at how much

to its user platforms – not least mobile,

money I’ve spent on Amazon recently

which is important to nail down since

– most of it on mobile as it’s so simple,”

55% of Spreadshirt’s traffic last year

he adds.

was mobile. “With a lot of ecommerce,

Now, all development of the ecom-

all the browsing takes place on buses

merce platform happens mobile first,

or in bars when people are on the move

forcing the business to

or have a spare moment.

ensure the experience is

“By concentrating on mobile, it forces

62

as simple as possible.

you to simplify the consumer’s journey

“You can always imagine

so they can not only browse but easily

extra features, but they

buy on mobile. Is the platform simple

can make it harder

enough to create your own T-shirt or

to use. Every feature and

browse the creations of others? Can

function must be simplified,

DECEMBER 2018

right down to marketing communication

Coupled with the number of markets

because you can’t write two paragraphs

it operates across, Spreadshirt in

on why a premium T-shirt is better than a

2018 is in many ways a complex beast

normal one – nobody’s going to read that

in which, as Rooke puts it, “there are

on mobile. It forces everyone from web

10,000 things that could go wrong.” This

designers to purchasing and assortment

in itself has forced Rooke to simplify his

teams to simplify.

own outlook and that of his leadership

“Five or 10 years ago, the more

team. “There’s no way to manage all

features you added the more exciting it

that end to end – I’d go crazy. So, over

was, but now people want to achieve

the past couple of years, there’s been

tasks really simply and as such the

a big shift in how we manage the

80/20 rule is cutting back in,” adds

business.

Rooke. “You have to concentrate on what 20% of features, stocks, offering,

“I don’t manage or oversee all elements – I’ve employed people who are a lot

makes up 80% of your business.”

63

Across the board, from mobile ecommerce to the factory floor, digital transformation is certainly “forcing a lot of simplification,” according to Rooke.

This is especially challenging for Spreadshirt when its business model is anything but

“Five or 10 years ago, the more features you added the more exciting it was, but now people want to achieve tasks really simply” — Philip Rooke, CEO, Spreadshirt

simple – it has several businesses within it including people who sell on Amazon, directly to market, or create and buy their own items. mi ddl e e a st .busi ne ssc hief. com

TECHNOLOGY

better than me,” he explains. “People used to write reports and ask for approval on what they were doing, but now we say ‘if you can turn this around, we don’t really care what you’re doing – we care what results you’re achieving.’”

Spreadshirt now uses a system called Objectives and Key Results (OKR), which is used by the likes of Google and LinkedIn, to empower various teams. Objectives for the quarter are agreed among directors and it’s up to individuals and teams to go away and achieve these however they see fit.

64

“That’s the only way to manage a complex international business,” says Rooke.

OKR allows empowerment to run right through the business. “People take responsibility. They care. They like the freedom of being able to think about how they can do things differently. Teams and individuals can really take ownership of what they’re doing.”

This is vital when as CEO, Rooke lives on a different continent to some of his teams and might only see them a few times a year. Having trust and empowerment in place means C-level executives have their time freed up to communicate where it matters. “When I’m talking to the Las Vegas factory, I’m DECEMBER 2018

“In the past, we thought things were clever if they were complex.

But actually, if someone can work out how to make something complex simpler – that’s the cleverest thing” — Philip Rooke, CEO, Spreadshirt

65

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TECHNOLOGY

66

DECEMBER 2018

talking about quality and cost improvements and why they matter – before, I was worrying about processes.

“We’ve abandoned nearly all the internal reporting – with the OKR system, and daily reports that show the KPIs that come out, it’s so much simpler and there’s less red tape. The whole mantra is around simplicity – trying to achieve something in a quarter is the simplest way to move it forward. People get rid of the big, complex ideas and brainstorm how to do things in a more complex way.

We celebrate that at Spreadshirt. In the past, we thought things were clever if they were complex,” Rooke adds, “But actually if someone can work out how to make something complex much simpler – that’s the cleverest thing.”

mi ddl e e a st .busi ne ssc hief. com

67

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CITY FOCUS

MAN City Focus

70

As the Kingdom of Bahrain diversifies its economy away from oil, the country has received increased attention from Chinese e-commerce companies WRITTEN BY

DECEMBER 2018

SE AN GA LE A-PACE

NAMA mi ddl e e a st .busi ne ssc hief. com

71

CITY FOCUS | MANAMA

72

B

ahrain has seen an enhanced interest from China’s tech sector as Manama looks to develop its digital economy

in a bid to reduce its dependence on revenues from energy.

Speaking to CNBC, Simon Galpin, managing director of the Bahrain Economic Development Board, said: “Chinese e-commerce companies recognize that the Middle East and the GCC [Gulf Cooperation Council], in particular, are really good markets.”

DECEMBER 2018

A GROWING FINTECH SECTOR Described as being the fastest growing economy in the Gulf region, Bahrain is set to see the launch of a new $100mn fund dedicated to its upcoming fintech sector, according to a report by The Economic Times. In a significant step aimed at developing the funding ecosystem for the high growth sector, it was reported that the fund will be raised by the private sector. The new fund is in addition to the already confirmed $100mn investment by Bahrain Development Bank which will invest across a number of sectors.

Manama is a vital part of Bahrain’s business offerings. The Central Business District (CBD) is located in Manama with the city showcasing Bahrain’s tallest towers, The Bahrain World Trade Centre and Bahrain Financial Harbour.

BUSINESS IN MANAMA Bahrain’s busiest and most successful market place, Al Hilal Group’s Arabian Business Community (ABC) Bahrain, has seen a record 1.2mn referrals to businesses following the end of the third quarter this year. mi ddl e e a st .busi ne ssc hief. com

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CITY FOCUS | MANAMA

After a report by Trade Arabia, the ABC Business portal has seen its total visitor numbers increase by a total of 9.7% in 2018 and position itself as the vvleading business reference resource for consumers searching for companies in the Kingdom.

Kamal Al Yousif, the sales manager for ABC Bahrain, said: “In today’s challenging market, businesses are looking for an edge on their competitors. ABC Bahrain provides that competitive advantage by generating quantifiable business referrals to their 74

corporate profiles on the portal.”

As the main banking hub of the Persian Gulf, banking is a very important part of Bahrain’s financial income with Ahli National Bank considered the largest bank in Bahrain. The bank is situated in Manama and has a market capitalisation of $5.18bn, as of 2017 with the National Bank of Bahrain second with $2.2bn. In addition, Gulf International Bank also bases its operations from the city with the bank providing its services in the GCC and internationally.

MANAMA’S ANNUAL ALFRESCO MARKET In an article by the Economic Times, it DECEMBER 2018

‘ Bahrain is set to see the launch of a new $100mn fund dedicated to its upcoming fintech sector’ was explained that Bahrain has historically always been open to the world.

“With plummeting oil reserves, we’re increasingly focused on cultural tourism to power our economy.” It was also discussed in the article that “Bahrain’s biggest strength is the legacy of art and culture. The nation did not acquire art; it is an organic inheritance over generations.”

The Economic Times article also reported of “Public and private sector investments that are being funneled to promote arts under the patronage of the royal family.” Due to this, Manama’s yearly alfresco art market, The Nest, has become a prestigious event in Bahrain’s annual calendar and wider Gulf region.

Following the opening of The Nest mi ddl e e a st .busi ne ssc hief. com

75

CITY FOCUS | MANAMA

at last year’s event in 2017, BTEA Chief Executive Officer Shaikh Khaled bin Humood Al Khalifa commented: “This event aims to revitalise the tourism sector and attract both Bahraini visitors and tourists from the GCC countries and beyond.”

“The BTEA appreciates Al Riwaq Art Space’s efforts which contribute towards further positioning the kingdom as the centre for family tourism across the region by launching various festivals and events as well as provid76

ing a unique experience to visitors of all ages. This will contribute towards further strengthening the position of the Kingdom as an ideal tourist destination for families,” he added.

A CITY FULL OF HISTORY In recent years, Manama has become an increasingly popular destination for tourists. According to new data from analysts STR, Hotel occupancy in Manama reached its highest level in August, 2018 for over a decade in 2018. It saw the hospitality market rise over 17% to reach more than 60% in August compared to the same month the previous year.

DECEMBER 2018

‘ Manama is focusing on building a digital economy in an effort to reduce its reliance on revenues from energy’

Currency

Dinar 1921

Became a capital

157,000 City population Nearest airport

7.8km

Bahrain International

mi ddl e e a st .busi ne ssc hief. com

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CITY FOCUS | MANAMA

‘ Hotel occupancy in Manama reached its highest level in August, 2018 for over a decade’ Tours are very popular in Manama and wider Bahrain itself, with the city offering an in-depth tour of the country’s major archaeological sites such as Saar Burial Complex and Burial Mounds, the Saar Ancient Settlement, 78

the Barber Temple among other mon-

DECEMBER 2018

79 uments. Manama is home to the largest public museum in Bahrain, Bahrain National Museum, and consists of two buildings covering 27,800 square metres.

Manama also boasts The Al Fateh Grand Mosque which is considered as one of the largest mosques in the world with over 6,500 square metres and possesses the facilities to hold over 7,000 worshippers at the same time. Originally opened in 1987, the building has a library which is home to more than 7,000 books with some over 100 years old. mi ddl e e a st .busi ne ssc hief. com

T O P 10

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DECEMBER 2018

Top10

81

Wealthiest people in the Middle East

Business Chief Middle East presents the Top 10 richest people in the Middle East, according to Forbes Magazine’s 2018 rankings. The combined wealth of the Top 10 richest Arabs comes to US$41.9bn WRITTEN BY

HARRY MENEAR

mi ddl e e a st .busi ne ssc hief. com

T O P 10

www.mansourgroup.com

82

10

Mohamed Mansour ($2.7bn) Born in Alexandria, Egypt, in 1958, Mohamed Mansour is a businessman and former politician (having served as the Egyptian Transport Minister from 2006-09) who led the Mansour Group after his father’s death in 1976. The Group “established General Motors dealerships in Egypt, becoming one of GM’s biggest distributors in the world,” according to Forbes. The Mansour Group also distributes IBM, Hewlett Packard, Microsoft and Compaq products in Egypt, according to Egyptian newspaper Al-Ahram. Mansour attended North Carolina State University and received a master’s in business administration from Auburn University, where he also taught for a three year period.

DECEMBER 2018

www.investcom.com

83

09

Taha Mikati ($2.8bn) Born in 1944, Lebanese telecom mogul Taha Mikati is the co-founder of Investcom, the M1 Group and the Mikati Foundation. According to Forbes, the M1 Group’s investments include: South African telecom firm MTN, fashion retailer Pepe Jeans, and prime real estate in New York, London and Monaco. The Mikati’s formed Investcom in the 1980’s in order to exploit opportunities in African “under-penetrated, high growth mobile telecoms markets.” In 2005, MTN purchased Mr Mikati’s shares in Investcom for $3.8 bn, according to Forbes.

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T O P 10

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www.alfuttaim.com

08

Abdulla Al Futtaim ($3.3bn) Emirati businessman Abdulla Al Futtaim is the owner of the Al Futtaim Group, which is the exclusive distributor of Toyota products in the U.A.E (representing 30% of the auto market). Al Futtaim is also licensed to operate Hertz, Ikea, Toys ‘R’ Us and Zara in the U.A.E. according to Forbes. The group also possesses retail holdings, through which it operates its licensed brands, controlling the Dubai Festival City and Cairo Festival City shopping centres. Mr Al Futtaim’s yacht, according to Wealth X, is equipped with sonic ‘guns’ that can rupture the eardrums of approaching assailants.

DECEMBER 2018

www.suhailbahwangroup.com

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07

Suhail Bahwan ($3.9bn) Born in the Kingdom of Oman in 1938, Suhail Bahwan’s career started with a single dhow (a traditional single-masted sailing ship ubiquitous in the Red Sea and the Indian Ocean) which he inherited from his father. He worked as a small-scale trader, transporting goods between Oman and India. Now, the Suhail Bahwan Group is “one of the largest conglomerates in Oman,” according to Forbes, operating in the fertilisers, healthcare and construction markets. Bahwan’s daughter Amal is the vice chair of the group and “another daughter, Hind, is the founder of an IT firm called CyberTek.”

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T O P 10

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www.otmt.com

06

Naguib Sawiris ($4bn) Born in Egypt in 1954, Naguib Sawiris is a member of the nation’s wealthiest family. He attended EHT Zurich, where he received a Master’s in Technical Administration. Joining Orascom in 1979, Mr Sawiris pursued investments in the railway, information technology, and telecommunications sectors, helping to transform his family’s company into Egypt’s “largest private sector employer.” He currently owns a 20% stake in Australia-listed gold mining firm Evolution Mining, and another 20% of Toronto-listed Endeavour Mining, which operates in West Africa, according to Forbes.

DECEMBER 2018

www.cevital.com/en

87

05

Issad Rebrab ($4bn) Born in 1944 in Algeria, Issad Rebrab initially taught accounting but moved into steel investments in the early 1970s. After large portions of his company’s infrastructure was destroyed by terrorists in 1995, Mr Rebrab temporarily left Algeria. He then founded food company Cevital, which has since become the country’s largest private company. According to Forbes, Cevital owns one of the world’s largest sugar refineries, and is planning “ to build a steel mill in Brazil to produce train tracks and improve transportation logistics for sugar, corn and soy flour exports.”

mi ddl e e a st .busi ne ssc hief. com

T O P 10

www.damacproperties.com

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04

Hussain Sajwani ($4.1bn) Born in the U.A.E in 1953, Hussain Sajwani is an Emirati property and real estate developer and chairman of Damac Properties, which Forbes ranked first on its list of fastest growing companies in 2017.

Mr Sajwani’s career began in the catering industry, selling food supplies to the US Military. He moved into real estate in 2001, when Emirati law changed, permitting foreigners to own property. According to Forbes, “Sajwani is known for extravagant marketing, sometimes offering free Lamborghinis to apartment buyers. He has co-branding deals with Versace and Bugatti.�

DECEMBER 2018

www.majidalfuttaim.com

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03

Majid Al Futtaim ($4.6 bn) Emirati billionaire Majid Al Futtaim is the founder, owner, and president of retail and entertainment conglomerate Majid Al Futtaim Holding, according to Forbes. The holding company owns and operates “12 hotels and 21 malls, including Mall of the Emirates in Dubai and the Mall of Egypt in Cairo.� The company also operates locations of the French supermarket Carrefour across the Middle East, Africa, and Central Asia. MAF Holding owns and operates leisure brands VOX Cinemas, Magic Planet, Ski Dubai, Ski Egypt, iFly Dubai, Orbi Dubai and Wahooo!

mi ddl e e a st .busi ne ssc hief. com

T O P 10

www.mashreqbank.com

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02

Abdulla Bin Ahmad Al Ghurair ($5.9bn) Born in the U.A.E. in 1954, Abdulla Bin Ahmad Al Ghurair is the founder and chairman of Mashreqbank, a leading Emirati financial institution. The bank was the first to introduce Automated Teller Machines to the U.A.E. Mr. Al Ghurair is also the owner of a holding company with investments in the food, construction and real estate sectors, according to Forbes. “Al Ghurair Foods claims to have the biggest pasta factory in the Middle East� and the construction arm of the holding company build the exterior cladding of the Burj Khalifa, the tallest building in the world.

DECEMBER 2018

www.orascom.com

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01

Nassef Sawiris ($6.6bn) Born in Egypt in 1961, Nassef Sawiris is the youngest of three brothers born to Egypt’s wealthiest family. He took over the construction arm of the Orascom conglomerate in 1982, which he “split into two entities in 2015: OCI and Orascom Construction,” according to Forbes. OCI is one of the world’s largest nitrogen fertiliser producers, and Orascom Construction was Egypt’s first multinational conglomerate. Orascom Construction announced this year that “Natgasoline, the largest methanol production facility in the United States, has achieved Provisional Acceptance”, several months ahead of the facility’s mechanical completion.

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DECEMBER 2018

S U P P LY C H A I N

Emaar, The Economic City: building a city of the future WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

HE Y K EL OUNI

Juman Park , Baylasun District mi ddl e e a st .busi ne ssc hief. com

93

EMAAR, THE ECONOMIC CITY

94

In order to build the largest privately-owned city in the world, Emaar, The Economic City has undergone a significant procurement transformation

DECEMBER 2018

A

Tadawul-listed real estate development and management company, EEC’s primary focus

is the planning and development of KAEC. When it launched its successful IPO in July 2006, EEC made history: more than half of the Saudi population subscribed. EEC is headed by Emaar Properties PJSC and a number of high-profile investors from Saudi Arabia.

KAEC focuses on five essential sectors, including logistics, non-oil industries, leisure and tourism, quality

S U P P LY C H A I N

of life “real estate development� and,

consultants and suppliers to the new

finally, youth support.

city to facilitate its ongoing growth.

Building more than 10K residential

Situated on the coast of the Red Sea,

properties, the company has devel-

the new city, named King Abdullah

oped six residential neighbourhoods

Economic City (KAEC), has become

outfitted with the highest standards of

the largest privately funded new city

facilities designed to suit all types of

worldwide. Spanning an impressive

residents. EEC is passionate about

181mn square meters the area is the

building a city for the future. Working

home to 30 tourism projects, 10 of

with partners, such as Creet Contract-

which are already operational, such as:

ing who are currently undergoing the

The Royal Greens Golf and Country

second phase of building the local

Club and Bay X Conference and

village, EEC has moved contractors,

Entertainment center, with 20 other 95

Baylasun beach, Baylasun District mi ddl e e a st .busi ne ssc hief. com

YOU START...

WE DELIVER EMAAR, THE ECONOMIC CITY

DESIGN & BUILD TURNKEY TURNKEY CONSTRUCTION MEP CONSTRUCTION

Mission Maximising our long term benefits by satisfying customers’ needs through value added design, construction and project management services.

Vision To become the quality leader in KSA, and the preferred choice by our current and future clients, in all the business sectors we are specialised in,

VISIT OUR SITE CONTACT US DECEMBER 2018

S U P P LY C H A I N

The World Academy school, Murooj district

97

projects set to launch later this year.

international brands such as Mars,

EEC also aims to provide high-standard

Ikea and pharmaceutical giant Pfizer.

educational and healthcare services.

Additionally, the city has King Abdullah

It currently has two medical institutions

Port, the first port in the Middle East to

and has launched The World Academy

be fully owned, developed and operated

in collaboration with Global GEMS,

by the private sector, and is one of the

a well-known educational establish-

fastest growing ports in the world.

ment. Additionally, Prince Mohammad

However, to facilitate this process,

Bin Salman Collage for Management

Emaar, the economic city has sought

and Entrepreneurship has already

to transform its procurement capabilities.

welcomed its first batch of students.

Working for a multitude of multinational,

KAEC’s Industrial Valley attracted more than 100 companies, including

regional, local and private companies, Senior Director Hesham Elabd mi ddl e e a st .busi ne ssc hief. com

EMAAR, THE ECONOMIC CITY

98

Waha district DECEMBER 2018

S U P P LY C H A I N

“We are moving into the partner phase where a lot of CEOs have procurement officers to help them get better economy of scale, leverage business and find new technologies” — Hesham Elabd, Senior Director, Emaar, The Economic City 99 E X E C U T I V E P R OF IL E

Hesham Elabd Graduating as an Electronics Engineer from Alexandria University, Hesham has worked in a number of senior management roles for companies such as Procter & Gamble Company, Alfozan Building Materials/Madar Holding, Savola Group, Rezayat Group and Emaar, the economic city.

Working across various business areas, such as: General Management, Business Development Planning, Purchasing Sourcing and Procurement, Total Supply Chain & Initiative Management including Operations logistics, Administration, Systems Re-engineering, Projects Management and Manufacturing, Hesham has successfully led operations, built strong organisations and delivered significant results.

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EMAAR, THE ECONOMIC CITY

has witnessed how the procurement industry has evolved and looked at ways to remain ahead of the curve, leading the organization to move procurement from a reactive participant to a proactive, trusted partner.

“We’re the developers of a new city. Procurement for such types of a mega scale project is very challenging. Procurement is no longer about handling documents and being just processors and raising purchase orders. Our procurement model is way beyond that,” he says.

“Now, we are moving into the partner 100

phase where a lot of CEOs have procurement officers to help them get a better economy of scale, leverage business and

Prince Mohamed bin Salman Collages for business and Entrepreneurship

DECEMBER 2018

S U P P LY C H A I N

find new technologies. We’ve moved over the years from followers to leaders taking part in setting the company’s strategies and execution programme.”

As companies continue to face increased challenges such as a global economic downturn, focus on cost reduction and global supply issues, the term ‘innovation’ has repeatedly been thrown around. Yet many businesses remain unaware of what this ultimately entails.

“Most of these challenges are linked to the market dynamics, so procurement is a key enabler to overcome such challenges.

Management are regularly pushing for

EEC offices, Baylasun District

value-add and how to get more for the money spent,” explains Elabd.

“The best ways to do this is to go to a business, ask them for their requirements, share their plans, align with them on their needs and give them a procurement strategy of how to move forward. Through this, procurement can start developing plans to ensure sourcing the best value, share with business leaders the risks associated with what is being sourced, the available technologies and the expected outcome. For this to succeed, it is vital to have the right technical capability, what I would call the right buyer.

The systems and processes supporting the mi ddl e e a st .busi ne ssc hief. com

101

EMAAR, THE ECONOMIC CITY

“KAEC’s vision is to become a great enabler of socioeconomic development in the Kingdom of Saudi Arabia.

It provides investors from all over the world with unique business opportunities while working towards securing the future of Saudi Arabia’s youth by creating new skilled job opportunities and total housing solutions” — Hesham Elabd, Senior Director, Emaar, The Economic City

102

King Abdullah Port DECEMBER 2018

S U P P LY C H A I N

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EMAAR, THE ECONOMIC CITY

104

Baylasun and Marina Hotel

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S U P P LY C H A I N

day to day operations have to be simply designed to allow smooth work flow.”

Strong leadership and committing to deliver on objectives are something which Elabd stresses as essential. This should be coupled by having a good internal networking, alignment and strong communications.

“To tackle our challenges, we undertook a six-strategy plan. First, we needed to understand our customer needs, develop our KPIs, set the goals, design the structure, re-defining our culture as procurement and finding the right people, skills and systems,” he explains.

“For our KPIs, we asked different departments, companies and business units on their expectations from procurement. We had 12 questionnaires sent out and based on the findings, came up with the goal of “10 in 10 through Smart Buying,” which means 10% savings in 10 years.”

Through the strategy, the organisation has overhauled its structure mix between centralisation and decentralisation. Adopting the approach of appointing the Right Business Partner, who takes the lead in sourcing strategies, tending and contracting for the Business Unit (BU), the move has ensured a single point of contact across the organisation.

“The Business Partner also works alongside the Business Units’ CEOs and Head of Pro-

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105

EMAAR, THE ECONOMIC CITY

curement, enabling all parties to gain a complete understanding of what procurement is expected to achieve, an important element which has filtered into its cultural shift,” adds Elabd.

“We now provide the needed procurement services based on the needs of the business – this is a huge cultural change. Introducing the customers’ experience was a very big thing. We also engaged with a consultant who looked at our employee capabilities in order to provide essential training.”

106

Shorooq District

DECEMBER 2018

Pfizer factory at Industrial Valley

S U P P LY C H A I N

CLICK TO WATCH : ‘A SPIRIT OF TRANSFORMATION’ 107 By developing the skills of its employees, Emaar, the Economic City has sought to address its digital infrastructure. Investing in Advanced Procurement Systems has enabled the business to implement the iSupplier portal which covers its entire procurement capabilities. Fully eliminating all paper-led processes has simplified the process by more than 90%, and also boosted customer satisfaction figures.

Additionally, to ensure complete transparency across its procurement activities, EEC has placed all upcoming developments on its web site to enable contractors to look at each project with all basic essential informami ddl e e a st .busi ne ssc hief. com

EMAAR, THE ECONOMIC CITY

108

“In 2015,our organisational engagement survey rated procurement at 44%.

Last year it jumped to 86%.

Customer satisfaction has reached 70%” — Hesham Elabd, Senior Director, Emaar, The Economic City

tion supplied. Companies which are awarded the business are also revealed, with project awarded values.

reached 70%,” Elabd says with pride.

“Looking at the way forward, we have already launched the trusted supplier

“In 2015, our organisational engage-

programme. We have signed long-term

ment survey rated procurement at 44%.

deals with partners and fixed prices for

Last year it jumped to 86%. Our procure-

three years for our requirements such

ment team won four customer experi-

as building materials. In KAEC, a lot of

ence awards from the CEOs of the BU’s.

companies work in the Industrial Valley.

Overall Customer satisfaction has also

We recently launched a programme

DECEMBER 2018

S U P P LY C H A I N

109

Royal Greens, Golf and country club, Murooj District

offering them free procurement services

“Future Construction Initiative.” We as

through our “A Friend to Call” service.

EEC will be working with designers,

If they want any procurement advice,

suppliers and contractors to define the

they can call us and we can help. We’re

ideal new innovative construction

also extending this support service to

method for our upcoming developments.

SMEs operating in the city and introduc-

The aim is to make KAEC the hub for

ing them to potential partners.

advanced construction solutions and

“Our latest initiative that will soon be launched in a worldwide RfP is our

technologies enabling fast track, high quality, sustainable and cost-efficient mi ddl e e a st .busi ne ssc hief. com

EMAAR, THE ECONOMIC CITY

“I am positive about the recognition we have received in such a small space of time” — Hesham Elabd, Senior Director, Emaar, The Economic City

110

Business park and Marina , Baylasun district DECEMBER 2018

developments in KAEC and possibly other Saudi cities.”

Throughout its procurement transformation, Emaar, the economic city will continue to look for new opportunities to deliver savings, boost transparency and, at the end of the day, guarantee customer

S U P P LY C H A I N

satisfaction. Such commitment has

“Although we were unsuccessful,

even seen EEC Procurement become

I am positive about the recognition we

recognised by global institutions.

have received in such a short space of

The Chartered Institute of Procure-

time,” he says. “In November, we were

ment & Supply (CIPS) shortlisted

also nominated for two further awards,

EEC procurement for two global

by the Procurement Leaders, so we

awards, something which Elabd is

are being recognised internationally,

keen to highlight.

highlighting our upward trajectory.”

111

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112

Abu Dhabi University puts students at the centre of its technology transformation WRIT TEN BY

OLIVIA MINNOCK PRODUCED BY

CR AIG DANIEL S

DECEMBER 2018

TECHNOLOGY

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ABU DHABI UNIVERSITY

Joseph Aninias, Director of IMTS (Information Management & Technology Services) at Abu Dhabi University, discusses the university’s commitment to student satisfaction and improved overall experience through digitalisation

114

A

bu Dhabi University (ADU), already one of the UAE’s major educational institutions, is working toward an ambitious goal: by 2020, the whole

facility will be a smart campus, using artificial intelligence (AI), data and information management, as well as working to improve energy efficiency and personalise services on offer.

In September this year, it was announced that the University has invested more than US$5.44mn (AED20mn) in expanding and enhancing its facilities across Abu Dhabi, Al Ain and Dubai.

Improvements have been made to teaching facilities, such as specialised laboratories and classrooms, including the upgrading of internet connectivity forming a key focus on overall student experience.

The University currently has over 7,500 students of 80 different DECEMBER 2018

TECHNOLOGY

115 nationalities and as such must provide first-class facilities at an international quality, while catering to the needs and culture of the local community. As such, ADU is striving to become ever more connected and aims to improve student life through significant technology transformation – from a newly developed platform bringing together all the information needed by students and staff, to location technology helping students find their way around campus. All this and more puts students at the heart of ADU as it strives to compete in an increasingly competitive space. mi ddl e e a st .busi ne ssc hief. com

ABU DHABI UNIVERSITY

CLICK TO WATCH : ‘ADU CORPORATE VIDEO 2018’ 116 The man behind this technology transformation is Director of IMTS (Information Management & Technology Services), Joseph Aninias, who has previously worked in Dubai for a prominent Australian University. Prior to the education sector, he has worked on a logistic group in Jebel Ali Free Zone and an Internet Service Provider Company in the Philippines. Through this experience, Aninias has developed a natural customer-centric attitude and a hospitable personality which positively contribute to Abu Dhabi (UAE) culture.

“Coming from that background, customDECEMBER 2018

TECHNOLOGY

er interaction is always the top priority

offering free internet access. ADU has

– in the Philippines for example, there

four different campus locations, all of

are lots of service providers so competi-

which are linked with a dedicated private

tion is very high. If they don’t like your

network from ANKABUT, which serves

service, they’ll move to another,” Aninias

a national private ISP for educational

explains. “Similarly, here in the UAE,

institutions. Many universities can

there are a lot of universities offering

benefit from a quality network conne-

the same programme so you have to

ction at special educational pricing

develop a competitive advantage while

from ANKABUT. “Anywhere you go,

keeping in mind the quality of service.

there should be a wireless network,”

Why would a student, or indeed a parent,

says Aninias. “Even cafés or restau-

choose your university?”

rants, if they don’t have wi-fi they’re

Across the UAE, internet connectiv-

seen as a bit backward. I’m exploring

ity is a basic service with the majority

what a difference this makes when it

of commercial and business premises

comes to the university.”

“ In the UAE, there are lots of universities offering the same programme so you have to develop a competitive advantage while keeping in mind the quality of service. Why would a student, or indeed a parent, choose your university?”

— Joseph Aninias, Director of IMTS, Abu Dhabi University

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ABU DHABI UNIVERSITY

One development reflecting ADU’s student satisfaction commitment is the implementation of an indoor navigation platform which will work like Google Maps to help new students find their way around campus. “This is something I’m exploring at the moment, at a proof-of-concept stage, to see if it gives added value for students.”

Student satisfaction runs through the veins of ADU, and its technology transformation is no exception. “The education industry is changing,” says Aninias. “If you put yourself in a student’s shoes, what they’re learning for those first four years 118

is just a foundation.” He cites technology, economic factors and social media as elements impacting a future workforce which must learn life skills and sees this as an area in which a University must add value. “The services we offer should be aligned with what’s going on in the outside world, so we can prepare students for the challenges of adulthood.”

The significant developments Aninias has achieved thus far at the university have not been without their challenges. Since ADU is a renowned institution people remain at for a long time, it risks being one with a workforce set in its ways. “When an organisation is used to a process, it is a challenge to persuade people to adapt to changes. You DECEMBER 2018

TECHNOLOGY

119

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need to walk the walk, as well as engage

it is very difficult to track the KPIs

and educate. Present drivers from

(Key Performance Indicators), SLAs

external factors are relevant and add

(Service Level Agreements) or overall

value to your internal change drivers.”

effectiveness of Information Systems

In managing this significant culture shift,

and Technology. One project I’m

Aninias points out that “awareness is

working on is to develop the central-

a critical point – enforcing awareness

ised portal for the University,” he

and centralising communication”.

explains. “This will present current

Communication is indeed being

information for ADU and will have

centralised across ADU, with Aninias

a responsive interface, with a device

and the team developing a single

agnostic as every individual has its own

platform for student information.

preferred gadget or device – this is by

“There are so many piecemeal tech-

default now, not a choice. Discoverable

nologies all spread across depart-

interface and user experience should

ments – without a service catalogue,

be the scope of every implementation:

DECEMBER 2018

TECHNOLOGY

if this doesn’t run on mobile, tablet

rtment is to bring all student informa-

or PC, if I can’t present the information

tion together. “Information System

well on the phone or the user’s preferred

management is critical – especially

device, it’s not a good investment. We

in educational institutions, a signifi-

have all these different types of platforms

cant component of the operation is

so you need to put this into a seamless

managing the information of the

interface, which is also a challenge –

student: prospective students, current

with cost being a significant factor.”

students, alumni, classrooms etc.

In meeting these various challenges,

Everything that runs under the uni-

Aninias maintains student centricity is

versity processes, and revolves around

key. “When we implement any new

student life.

project, we do so with input from the

“You have to consider the implication of

students. We have a student council

the older, manual form in digital format,”

which is part of the decision making.

he continues, and indeed moving from

This strong representation from the

various legacy systems to a fully digital

student side is a critical strategy for

environment has been a challenge

ADU because every organisation claims

which involves flexibility. “Paperless,

to put students first, but some do not

for example, was in discussion for ages –

really involve them in the decision making.”

but how can you move to paperless if

A significant focus for the IMT depa-

a significant number of users need

E X E C U T I V E P R OF IL E

Joseph Aninias Joseph Aninias is Director of IMTS at Abu Dhabi University, where he has worked since February 2017. Aninias previously worked as Manager of IT at University of Wollongong, an Australian University, in Dubai since 2001.

He holds an MBA from the University of Wollongong and previously attended Far Eastern University, where he studied Computer Engineering and IT.

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ABU DHABI UNIVERSITY

printing services ‘I want print’?

You still have customers who prefer, and are maybe more efficient at, doing things the old way. So that is a challenge not to fix, but to improve. The biggest point is to gain people’s trust on technology initiatives.”

The student information system, finance, HR and procurement are all united

“ The services we offer should be aligned with what’s going on in the outside world, so we can prepare students for the challenges of adulthood”

under one enterprise resource planning (ERP) system from Oracle. Again, 122

as well as cost, student needs have been placed at the fore, with a student survey gaining feedback on how the improvements have impacted those who matter most.

“After taking action on the IMT department capability assessment, all these technological changes in the classrooms, building governance and strengthening the overall IT infrastructure and behavior of the team, the total response was 75% satisfaction across ADU,” says Aninias. “Now the next challenge is to achieve 80-85% satisfaction for the next cycle. If I cannot measure the things I’m delivering, how can I implement them?

DECEMBER 2018

— Joseph Aninias, Director of IMTS, Abu Dhabi University

TECHNOLOGY

123

How can I improve a service if I don’t have actionable feedback?”

ADU is currently in its 15th year of operation and working towards Vision 2022, which will involve student engagement and a holistic learning experience through innovation, as well as delivering an efficient, seamless experience for all stakeholders while improving collaboration. “We’re in a process of continuous mi ddl e e a st .busi ne ssc hief. com

ABU DHABI UNIVERSITY

improvement,” says Aninias, noting that in his two years at ADU he has inherited an enterprise resource planning (ERP) system which was adopted from an older process.

Collaboration and effective communication is also key, whether with other members of staff or vendors.

“There’s a lot of collaborative effort here to get the best value – most IT projects are primarily driven by the value of the investment. The budget must be justified and preferably contributing to the bottom line. This requires a lot of planning and preparation to avoid project delays.” Currently, Aninias is in the midst of getting a number of projects he has inherited and which have been delayed up to speed. “I made sure 124

certain projects were executed in an acceptable timeline and have to be prioritised, otherwise it would affect the future development of the university.”

DECEMBER 2018

TECHNOLOGY

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126

Rotana Hotels: developing a sustainable portfolio for the future WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

K ARIM M AS SA AD

DECEMBER 2018

127

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R O TA N A H O T E L M A N A G E M E N T PJ S C

Recently recognised as ‘Company of the Year’ at this year’s Gulf Business Awards, Rotana Hotels is on its way to becoming a leading sustainable hospitality company

C

ombining a unique understanding of the culture and communities of the Middle East with a collective, international team,

Rotana has acquired extensive experience in the hospitality industry. With the aim to reach a total of 100 properties by 2020, the business is focused on delivering its sustainability objectives as it contin128

ues to develop its diverse portfolio.

Launching its sustainability objectives in 2012, Rotana has expanded its vision through its global corporate sustainability platform, Rotana Earth.

Not solely placing emphasis on consumer demands, but remaining conscious of its ongoing environmental, economic and social impact, the business wants to enhance communities, whilst placing a unique touch within all hotels under its umbrella.

Fully guiding its transition, Head of Sustainability, Christiane Zeidan, works with the company’s corporate sustainability committee, as well as Rotana’s President & Chief Executive Officer to develop policies and strategic goals, in alignment with its core values.

“There are Environmental Health and Safety managers in every property at Rotana. I work with the DECEMBER 2018

129

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“ Customers are more aware and are expecting a lot from the places they stay, particularly in terms of sustainability practices. We have to make sure we meet that expectation” — Christiane Zeidan, Head of Sustainability, Rotana Hotel Management

team, guide and support them to achieve a mature sustainability programme implementation,” says Zeidan.

“Hotels report on key-performance indicators (KPIs) and day-to-day operations, while we integrate sustainability in different audits to ensure progress towards the company’s sustainability goals.”

Publishing three sustainability reports in 2012, 2014 and 2017, 50% of the company’s portfolio, located in the United Arab Emirates (UAE) has obtained ISO 14001 environmental management certif131

E X E C U T I V E P R OF IL E

Christiane Zeidan Christiane A. Zeidan is an Agro-Industrial Engineer, who received her three M.Sc. degrees in Science & Food Technology, Enterprise management and Quality control from the “Institut National Agronomique Paris-Grignon, Institut Superieur d ‘A gronomie de Beauvais, France and the Lebanese universities.

Subsequently she held several positions in management & Quality Control until she joined Rotana Hotel Management Cooperation where she oversees the environment, health & safety management system in the company. Her work experience has gradually raised her personal interest in sustainability issues in general and set in 2012 the company’s sustainability strategy and is leading its implementation.

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R O TA N A H O T E L M A N A G E M E N T PJ S C

“ It’s essential to have a smarter balance, supporting sustainability standards whilst ensuring the guest does not have pay more.

This has been a challenge” — Christiane Zeidan, Head of Sustainability,, Rotana Hotel Management

132

DECEMBER 2018

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R O TA N A H O T E L M A N A G E M E N T PJ S C

ication, something which is recognised by guests and suppliers.

“Guests are more conscious and their expectations are increasing, particularly in terms of sustainability practices. We have to make sure we meet those expectation,” notes Zeidan.

“It’s essential to have a smart balance, that the level of guest’s satisfaction should be maintained while ensuring that destinations continue to be attractive and retain their commercial potential.”

PROMOTING ENGAGEMENT 134

Undertaking a sustainability materiality assessment to gain a deeper understanding of all material issues, Rotana has sought to track its performance, in order to fully reach

DECEMBER 2018

CLICK TO WATCH : ‘ROTANA HOTELS AND RESORTS – TV COMMERCIAL’ 135 its goals, as well as engage all associated stakeholders.

“Our stakeholders range from our guests, our investors, our suppliers as well as communities and local governments. When we are expanding into new countries, we look at ways of investing in local economies, whilst placing emphasis on our environmental concerns and social responsibility,” observes Zeidan.

“Complexities occur when country-specific sustainability regulations are missing, whether the local community is attracted to sustainability or if the required infrastructure is not in place to support our goals. This is where the challenge of our investor’s economic priority mi ddl e e a st .busi ne ssc hief. com

R O TA N A H O T E L M A N A G E M E N T PJ S C

C OMPA N Y FA C T S

• With the aim to reach a total of 100 properties by 2020, Rotana is focused on delivering its sustainability objectives whilst expanding its diverse portfolio

136

• Launching its sustainability objectives in 2012, Rotana has expanded its vision through its global corporate sustainability platform, Rotana Earth • 50% of the company’s portfolio, located in the United Arab Emirates (UAE) has obtained ISO 14001 environmental management certification • Rotana has strived to guarantee supplier compliance, where all data is thoroughly integrated into a sustainability assessment, forming its supplier qualification programme

DECEMBER 2018

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R O TA N A H O T E L M A N A G E M E N T PJ S C

138

comes over environmental concerns

From a lack of awareness regarding

and social responsibility which

financial saving, to how sustainability has

requires more efforts from our man-

an impact on driving profit for the com-

agement team to educate and raise

pany, employees feel proud, more eng-

awareness in order to achieve our

aged and wish to continue working for

sustainability objectives.

a company which is keen to reduce its

“The immediate notion is that imple-

impact on the environment.

menting sustainable practices will increase operational cost, which is

SUSTAINABLE PROCUREMENT

completely the opposite. We try to

Through the Rotana Earth platform,

show how much we’re going to save on

the business has sought to introduce

operational cost and by how much we

sustainable procurement, resulting in

can drive business by adopting these

a greater understanding of its supply

sustainability practices,” she adds.

chain capabilities. Creating value-

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139

“ We have implemented the Rotana Code of Responsible Purchasing.

Through this framework we are educating our suppliers and challenging them to become more sustainable” — Christiane Zeidan, Head of Sustainability, Rotana Hotel Management

based suppliers, the business has worked to address all ethical and social issues, such as child labour within the supply chain, whilst supporting local families and its guests.

“A thorough understanding of our supply chain enables us to create value for suppliers and our community at large. Wherever we source products, we believe the workers that have produced them, the communities living near the sourcing locations and the environment around it should not be negatively impacted. We want to mi ddl e e a st .busi ne ssc hief. com

R O TA N A H O T E L M A N A G E M E N T PJ S C

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DECEMBER 2018

ensure that there is no link between our business activities and adverse environmental and social impacts through our suppliers business relationships,” reflects Zeidan.

“We take a holistic approach to managing these supply chain risks. This includes the development and implementation of the Rotana Code of Responsible Purchasing and continuous monitoring to evaluate compliance and manage foreseeable risks and social impact from our supply chains. A sustainability assessment criterion incorporated within our supplier qualification programme and procurement survey.”

Whilst a large number of products remain imported, the company has strived to guarantee supplier compliance, where all data is thoroughly integrated into a sustainability assessment, which forms part of the company’s supplier qualification programme.

“We have integrated sustainability criteria in our supplier’s audits which includes community contribution, environmental sustainability, the employees’ management of those suppliers, their labour practices and their compliance, etc.

“This will help us cutting long term procurement costs, averting sustainability risks, reducing operating costs, building a marketable image of Rotana brand, benefitting to society and suppliers and minimising or reducing harm to the environment.

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R O TA N A H O T E L M A N A G E M E N T PJ S C

SUSTAINABLE ACTIVITIES Focusing on two key goals, poverty and hunger, Rotana has looked at ways to reduce food waste. Signing an agree-

1992

Year founded

ment with Winnow Solutions, 26 hotels in the UAE will monitor all products by size and weight, enabling all hotels to adjust menus accordingly. It will also promote the hotels to reuse food waste as much as possible and reduce its impact on the environment.

142

DECEMBER 2018

11,772

Approximate number of employees

end of this year with the aim of eliminating plastic water bottles.”

“Among other achievements, 20 of our UAE hotels are ISO 14001 certified on the environmental management system, accounting for approximately 45 % of Rotana’s total operating hotels, we have reduced our energy consumption (kwH/guest) by 8.5 % and water (cbm/guest) by 21.5% per guest from 2013 baseline, while in the kitchens we recycled 97,490 litres of cooking oil to biodiesel. Similarly, we have reduced general Waste (kg/guest) by “We’re also doing a lot in terms of plastic reduction. From November,

21 % from 2012.

“With workplace diversity and equal

we’re going to stop serving plastic

opportunities being among Rotana

straws in all Rotana facilities unless

most integral values, it proudly employs

requested by guests and gradually

11,772 colleagues from 107 nationali-

replacing it with more eco straws. We

ties. “To date, our colleagues have

are also stopping the use of plastic

participated in 1,352 community engag-

bottles in all our colleagues dining

ement activities since 2012, with

areas, collecting around 97,000 litres

78,531 volunteering hours to the

of frying oil and converting this to

community. 2,740 colleagues have

biodiesel” states Zeidan.

donated 812 litres of blood during 74

“Additionally, we are also working

blood donations campaigns 64.4 %

with Drinkable Air, where we challenged

of our activities have supported health

them to prepare a unit prototype prod-

& well-being causes, 20.4 % environ-

ucing drinkable water form air. We will

mental causes and 7 % supporting

be putting these in guest rooms at the

human rights issues.” mi ddl e e a st .busi ne ssc hief. com

143

R O TA N A H O T E L M A N A G E M E N T PJ S C

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DECEMBER 2018

LONG-TERM EXPANSION With several properties planned and new projects in the pipeline across the Middle East, Africa and Turkey, the business is on its way to becoming one of the most sustainable hospitality businesses worldwide.

Recently recognised as ‘Company of the Year’ at this year’s Gulf Business Awards, Rotana Hotels aims to further deepen and consolidate its leadership position, with its strategy to establish 100 properties by 2020 and double this to over 200 by 2030.

“As we expand into various cities and countries, we will ensure this is done responsibly. We want to make sure that the people in the region come to our hotels, that they will love it and respect our brand,” concludes Zeidan. “It’s essential that companies realise the total true value of their business and focus not just solely on making a profit. That’s our understanding and belief at Rotana. We believe in the enforcement of creating value for our stakeholders and to society at large. It’s really important as it will help us with our long-term strategies and maintain our sustainable vision.”

mi ddl e e a st .busi ne ssc hief. com

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