MEA Business - November 2020

News, Reviews and Interviews.

November 2020 Issue

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The Future of Flight Rolls Royce showcase their groundbreaking Future Systems Simulator and the world's fastest all- electric aircraft

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Introduction

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he Covid-19 pandemic has changed the world we live in as well as the entire business landscape. There is no way to sugar coat the devastating impact the current situation is having on businesses throughout the region, especially when most analysis speculate that the worst is yet to come.

Despite the apparent doom and gloom, it is important to remember that change is the only constant in life and business. As a result, just like all challenges before, we will get through this tough time and as a business community we will learn and grow as a result.

The editorial staff of MEA Business are committed to reporting the positive business developments in the Middle East and Africa, as well as highlighting the business opportunities that already exist in the two regions. We also want to provide a platform for business leaders to share ideas, engage in constructive debates and form strategic partnerships. Our ultimate aim is to equip business leaders and professionals with the practical and tactical skills to thrive in the Middle East and Africa. With an emphasis on positive news stories, case studies and inspirational interviews, MEA business will inspire readers towards personal development and overall business success.

The magazine is arranged to provide clear and concise informative sections including news sections on the Middle East and Africa, CEO interviews and market updates. We also include an essential event directory, which highlights the must-attend virtual and physical events in the region. Finally, in each issue of the magazine we include several focused reports and brand views. Our reports provide the all-important tools, to enable you to maintain a critical edge in the area highlighted. Our reports cover a range of sectors and industries, Aviaiton, Finance, Technology and Hospitality, to name but a few. The magazine and news service we offer are available on a variety of platforms, these include our printed magazine, e-magazine, website, and social media. Furthermore, we include augmented reality elements in some of our features to provide our readers with unparalleled coverage on the latest developments.

Kenneth Mitchen

Publisher, MEA Business

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CONTENTS

NEWS MIDDLE EAST 6 Arabtec building the company responsible for the Burj Kalifah, annuonces its liquidation.

8 Emirates enhances airport experience with self-check-in kiosks in Dubai

NEWS AFRICA 14 The United Nations Development Program highlights 50 African Innovators 16 UK and Kenya to host major education summit in 2021

ANALYSIS SECTION 24 Stalled demand and lack of Covid-19 vaccine may delay oil price recovery above US$ 50 until 2021

OPINION PIECE 32 AI Business Transformaion

FUTURE TRENDS 38 The trends shaping the future of the financial sector in the GCC

BUSINESS REDEFINED 40 Trends that will shape the future of Business in the GCC

30 MEA Business WEB: www.mea-biz.com EMAIL: info@cme-media.com PUBLISHED BY: Creative Middle East Media FZ LLE, 19th Floor, Creative Tower, Fujairah Creative City, PO Box 4422, Fujairah, UAE EXECUTIVE DIRECTOR AND PUBLISHER : Kenneth Mitchen Email: ken.mitchen@mea-finance.com

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Business News for the MEA region

APPOINTMENTS 42 Middle East Business Leadership appointments

COVER STORY 30 Welcome to the future of flight

AVIATION 34 Airbus reveals three new zero-emission concept aircrafts

ADVERTORIAL 36 Bombardier Global 7500 Aircraft

TECHNOLOGY 38 S ynergy Across Five Major Tech Domains Key to Region’s Smart City Success 40 Accelerated digital investment gives Middle East banks a decisive advantage post-COVID

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FINANCE 42 The rise of online trading 44 Listing on Premier Market continues Boursa Kuwait's series of milestones 46 Levelling the playing field for female entrepreneurs in Africa 48 NCB and SAMBA join forces to create a new Saudia banking champion

HOSPITALITY 50 Radisson Hotel Group launches hybrid solutions

REAL ESTATE INVESTEMENTS 51 Shari'ah Compliant Real Estate Investment

LIFESTYLE 54 The comfort of efficiency

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News Middle East

Arabtec Holdings PSJC, the company responsible for building the Burj Kalifa (the world's tallest building), announces its liquidation

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onstruction firm Arabtec H o l d i n g P S J C re c e n t l y announced its liquidation due to heavy financial losses and unfavorable market conditions resulting from the impact of the Covid19 pandemic. The shareholders voted to discontinue the Company and dissolve it at General Assembly Meeting on September 30th.

The liquidation resolution was made after considering a number of strategic alternatives considered by the Arabtec’s Board based on the financial analysis prepared by the specialist restructuring firm Alix Partners. The resolution of the shareholders grants the Arabtec’s Board a maximum period of two months to allow for discussions with the main stakeholders before a liquidation application may be submitted to the competent courts. In the meantime, Arabtec stated in a recent press release that their primary objective is to provide stability for staff, subsidiaries, sub-contractors, suppliers, and other stakeholders.

Waleed Al Mokarrab Al Muhairi, Chairman of Arabtec, stated: “In recent years, limited liquidity in the construction sector has impacted the progress of Arabtec’s projects and this has been exacerbated by the effects of COVID19. Despite efforts to pursue legal and commercial entitlements and a restructuring of the Company’s finances and operations, the situation in which Arabtec finds itself today is untenable.

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“Shareholders have therefore voted to move forward with a plan of liquidation to maximize value for stakeholders through a controlled and efficient program. Over the coming weeks, the Company’s board and management will work closely with regulators and stakeholders to maximize value for all stakeholders. Our current priority is to ensure that everyone directly affected by this decision, is treated fairly during this challenging time.”

The shareholders vote follows Arabtec reporting a net loss of AED 794 million in H1 2020. The Board, having considered the current challenging business environment as well as the accumulated losses as a percentage of shareholders equity, called for the General Assembly Meeting to discuss the options available to the Company.

About Arabtec Arabtec, headquartered in Dubai, United Arab Emirates, is a multinational construction company responsible for a number high-profile construction projects including the Burj Khalifa (the world’s tallest building), Dubai Airport Terminal 1 and the Louvre in Abu Dhabi.

Established in 1975, Arabtec Holding was privately owned before becoming the first construction company to go public in the UAE. The company was listed on the Dubai Financial Market (DFM) in 2005.

At its peak in 2014, Arabtec stock was valued at 30 billion dirhams ($8.17 billion).

Arabtec operates in a number of sectors including Hotels, Oil & Gas, Office

Business News for the MEA region

Blocks, Industrial Projects, Electrical and Plumbing, Airports, facilities management, property development, Stadiums, Infrastructure, Drainage works and Residential Complexes.

Arabtec has a conducted several international projects in a variety of countries including Saudi Arabia Pakistan, Russia, Qatar, Jordan and Syria. Arabtec construction is part of Arabtec Holding PJSC, which consists of 13 subsidiaries, each provided a range of services across the construction value chain. According to financial statements posted in 2018, Arabtec employed 45,000.

This number is widely speculated to have decreased over the last year due to restrictions and cost cutting.

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News Middle East

Emirates enhances airport experience with self-check-in kiosks in Dubai travel voucher to use against any future flight-related purchase for themselves or their family and friends. More information here.

COVID-19 PCR Testing Emirates customers who require a COVID-19 PCR test certificate prior to departure from Dubai, can avail of special rates at the American Hospital and their satellite clinics across Dubai by simply presenting their ticket or boarding pass.

Home or office testing is also available, with results in 48 hours. More information on www.emirates.com/flytoDubai Emirates self check-in and bag drop kiosks, Terminal 3, Dubai International Airport.

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mirates has introduced self check-in and bag drop kiosks for a more seamless airport experience at Terminal 3, Dubai International Airport. The service is now available to customers travelling to all destinations except to the US, Canada, China, India and Hong Kong due to additional requirements from these destinations.

The 16 new self-service bag drop machines and 8 self-service kiosks complement the desks manned by Emirates check-in agents to reduce waiting time for customers during peak periods and improve the customer experience in Dubai. More self service facilities are planned to be added in the coming months.

The kiosks allow customers to checkin, receive their boarding pass, choose seats on board, and drop off their bags.

While Emirates staff will be on hand for any assistance required, the facilities are fully self- service, allowing customers to breeze through the airport and proceed

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directly to immigration. The facilities are cleaned and disinfected regularly and hand sanitisers are also available for customers to use.

The new offering is part of Emirates’ continued investment in product and service to provide an unmatched travel experience on ground and on board.

The solution was developed in house at Emirates in collaboration with Dubai Aviation Engineering Projects and Dubai Airports. The self check-in kiosks will be continually upgraded to offer new features in the future including going touchless and allowing customers to make re-bookings on their own.

Flexibility and assurance Emirates’ booking policies offer customers flexibility and confidence to plan their travel. Customers who purchase an Emirates ticket for travel on or before 31 March 2021, can enjoy generous rebooking terms and options, if they have to change their travel plans.

Customers have options to change their travel dates, extend their ticket validity for 2 years, or convert their ticket into a

Business News for the MEA region

Free, global cover for COVID-19 related costs C u sto m e rs c a n n ow t ra ve l w i t h confidence, as Emirates has committed to cover COVID-19 related medical expenses, free of cost, should they be diagnosed with COVID-19 during their travel while they are away from home.

This cover is immediately effective for customers flying on Emirates until 31 December 2020, and is valid for 31 days from the moment they fly the first sector of their journey. This means Emirates customers can continue to benefit from the added assurance of this cover, even if they travel onwards to another city after arriving at their Emirates destination.

For more details: www.emirates.com/ COVID19assistance.

Health and safety E m i ra tes h a s i m p l e m e nte d a comprehensive set of measures at every step of the customer journey to ensure the safety of its customers and employees on the ground and in the air, including the distribution of complimentary hygiene kits containing masks, gloves, hand sanitiser and antibacterial wipes to all customers.

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News Middle East

DIFC Courts and Dubai FDI partnership to boost investor confidence in Dubai Fahad Al Gergawi, Chief Executive Officer (CEO), Dubai FDI, said: “One of the major platforms that have supported Dubai's continuing growth in FDI capital is a legal system that connects seamlessly with multiple jurisdictions around the world. Global investors and businesses recognise the importance of an advanced and mature legal framework for dispute resolution. This is especially true for multi-jurisdictional corporations.

The DIFC Courts has professionally been upgrading this value for the city which we will continue to emphasise on in our efforts to attract strategic FDI to Dubai.”

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he Dubai International Financial Centre (DIFC) Courts signed a cooperation agreement with The Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economic Development (DED) in Dubai, to support the emirate's economic ambitions outlined in Dubai Plan 2021.

Building on cooperation first initiated in 2015, the terms of the memorandum state that the two entities will continue to further collaborate on the exchange of information and research, and the hosting of joint conferences and exhibitions.

According to Dubai Investment Development Agency (Dubai FDI), Dubai attracted Dh12 billion in foreign direct investment (FDI) through 190 projects during the first half of 2020, despite the coronavirus pandemic. In terms of investment sources, nearly 25 per cent of FDI capital flows came from the US, followed by France (18%), Belgium (9%), and the UK and China (8% each).

As commerce becomes ever more global and countries ever more connected, it is imperative that judicial

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systems keep pace and remain able to support and protect businesses. And it was this basic requirement that led to the creation of the DIFC Courts in 2004.

The DIFC Courts is Dubai’s English language, commercial common law judicial system, with the specific objective to enable the international community to have greater confidence in the Emirate’s legal framework, and further strengthen the trade relations with Dubai.

HE Omar Al Muhairi, Deputy Chief Justice, DIFC Courts, said: “The DIFC Courts has recognised the need for our dispute resolution services to meet the demands that are challenging traditional disciplinary and geographical boundaries. When it comes to resolving disputes, businesses like to have a choice, whether it is litigation or arbitration, common or civil law, English language, or Arabic. While every country in the world has some kind of system for resolving commercial disputes, those ranked highest by the World Bank have recognised that investing in efficient and well-respected business courts, is essential. This is not a nice-to-have, but rather a need-to-have if they want to compete globally for investment.”

Business News for the MEA region

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Dubai ranks first in the Middle East and North Africa (MEA) region and third in the world in the number of foreign direct investment projects attracted and ranks first in the Middle East and North Africa region and sixth in the world in terms of foreign direct investment capital inflows, after Singapore, Shanghai, London, New York, and Hong Kong.

For over a decade the DIFC Courts has a track record of resolving all commercial disputes, ranging from sophisticated, international financial transactions, to simple domestic contractual and employment disputes. Big business can – and increasingly does – bring its disputes to Dubai.

Through a series of memoranda with leading international jurisdictions the DIFC Courts has now established one of the world’s strongest enforcement regimes. Money judgments can be enforced internationally through treaties such as the GCC Convention and Riyadh Convention, conventions with China, India and France, and reciprocal arrangements with leading common law jurisdictions, such as the UK, the US, Australia, Singapore, and Hong Kong.

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News Africa

The United Nations Development Program highlights 50 African Innovators The initiative seeks to contribute to a new narrative – one that showcases Africa’s potential and Africans breaking with a wait for solutions from outside approach.

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he UNDP Regional Bureau for Africa recently released a special online e-booklet, showcasing how young Africans are resourcefully helping fight the COVID19 pandemic. The initiative dubbed Africa Innovates, is timely as the world grapples with a response and recovery to a global pandemic.

As COVID-19 continues to ravage the world, only limited attention is being given to efforts Africans are making to stem the spread of the Coronavirus. The e-booklet seeks to contribute to a new narrative – one that showcases Africa’s potential and Africans breaking with a wait for solutions from outside approach.

Africa Innovates features 50, mainly young innovators, who against all odds, and limited resources, are inventing diverse home-grown solutions which are proving essential in mitigating the effects of the pandemic on their communities.

According to Ms. Ahunna Eziakonwa, Assistant Secretary General and Director, UNDP Regional Bureau for Africa, the untapped potential of Africa’s youth creates urgency in rethinking “the way to do development – a way in which the promise frames the approach, and not the problem.”

She states: “At UNDP, we believe in Africa’s promise. We are not on a problem solving project. Rather, we are investing in Africa’s abilities and its inherent capacity, if harnessed, to create its own solutions.

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For this e-booklet, we found 50 African innovators who saw in COVID-19, the opportunity to solve today’s challenges, lending hope to a future of promise - not despair.”

The compilation – which is not exhaustive, was collated by the UNDP Africa Regional Representatives on recommendation from the communities in which they serve, as well as from industry insiders endorsement and research based on the following criteria: African-produced, innovative, gamechanging, scalable, applicable, safe,

UNDP, Africa Innovates e-magazine front cover

Business News for the MEA region

impactful and can provide a long-term solution post COVID-19.

The projects featured say it all – Africa can. From drones to robots; contact tracing apps to rapid and non-invasive testing kits, portable hands-free sanitation chambers to community handwashing stations that also cater for those less able; oxygen-making machines to genome sequencing, AI-powered healthcare chat bots to online platforms providing health services to those suffering mental health problems triggered by effects of the pandemic – African is managing complexity in the world’s most daunting pandemic – through home-grown solutions.

“We see each of these innovators as an important part of the web of hands rebuilding Africa forward: delivering solutions for a new Africa,” says Ms. Eziakonwa concluding: “I hope that you will be as inspired as I am – and that you will join us in investing in Africa’s promise. Choose to believe in Africa – it is the future of development.”

Africa Innovates is one of the projects from UNDP Africa’s initiative – African Influencers For Development, launched in September 2019 by a high level panel, including the UN Deputy Secretary General, Ms. Amina Mohamed, during the UN General Assembly..

AT UNDP, WE BELIEVE IN AFRICA’S PROMISE. WE ARE NOT ON A PROBLEM SOLVING PROJECT.

News Africa

UK and Kenya to host major education summit in 2021

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rime Minister Boris Johnson and President Uhuru Kenyatta announced that the United Kingdom and Kenya will co-host a high-level summit next year to lead global action to educate every child today.

Coronavirus has worsened the global education crisis, with 1.3 billion children – including 650 million girls – out of education at the peak of school closures.

The benefits of schooling are transformative and multi-generational - a child whose mother can read is 50% more likely to live past the age of five and twice as likely to attend school themselves. With just one additional school year, a woman’s earnings can increase by a fifth.

Prime Minister Boris Johnson has championed girls education as the key to preventing exploitation and unlocking potential around the world, and the UK is the top donor to the Global Partnership for Education (GPE). Next year’s summit will raise funds for GPE’s vital work in developing countries helping to get children into school, lift communities out of poverty and prevent girls being forced into child marriage.

UK Prime Minister Boris Johnson said: "Since coronavirus struck, the number of children out of school around the world soared past 1.3 billion. It is a toll of wasted potential and missed opportunity that is a tragedy not just for those children, but for each and every one of us".

"Education unlocks doors to opportunity and prosperity. It offers girls a ticket out of poverty and exploitation to chart their own futures".

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"That’s why I am delighted that the UK will co-host the replenishment of the Global Partnership for Education in 2021.

I urge the global community to come together, dig deep and ensure we fund their vital work to give every child the chance at an education".

The Government of Kenya has made education a central part of their strategy to become a newly industrialised nation by 2030. A GPE partner since 2005, Kenya has made impressive gains, achieving universal primary education and breaking down gender barriers to get as many girls as boys enrolling in school.

Uhuru Kenyatta, President of Kenya said: "An educated population is a country’s most valuable resource. GPE has been a key partner in helping us invest in innovative solutions to get all our children, especially girls, learning".

"We must use the opportunity of GPE’s financing conference to make ambitious pledges to invest in quality education so our children and young people have the skills and knowledge they need to seize the opportunities of the 21st century".

Since its creation in 2002 GPE has already contributed to getting 160 million more children in school and doubling girls’ enrollment in the countries they work in, and is today announcing a $5 billion funding target for next five years. It is calling on governments, businesses and individuals to invest in children’s futures.

This funding will help ensure that 175 million children can learn in 87 lowerincome countries. In the longer term,

Business News for the MEA region

Boris Johnson with President Uhuru Kenyatta at State House, Nairobi- March 2017

this investment could add $164 billion to economies in the developing world, lift 18 million people out of poverty, and protect two million girls from early marriage.

Julia Gillard, former Prime Minister of Australia and GPE Board Chair said: "An investment in GPE is an investment in the world’s most powerful asset – its children and youth. By refinancing GPE, leaders can send a clear message that the world is serious about creating a brighter future for all girls and boys through education".

"Today, we’re launching our most ambitious and urgent campaign yet. We must seize this opportunity to make sure that no child is left behind. Our message to world leaders is simple: Raise your hand.

Fund education".

The summit will take place in the UK in mid-2021 and will convene key global players and decision makers, with the aim of getting all children into school and learning.

Analysis Section

Stalled demand and lack of Covid-19 vaccine may delay oil price recovery above US$ 50 until 2021 The Impact of low oil prices over longer term coupled with drop in tourism will challenge GCC economies, says Saxo Bank’s Head of Commodity Strategy, Ole Hansen

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ith oil prices likely to remain under pressure and a price recovery above $50 per barrel not expected before the end of the year at the earliest, Gulf countries face a challenging few months in balancing their economies, according to Saxo Bank’s Head of Commodity Strategy, Ole Hansen.

Speaking during an online briefing hosted today by Saxo Bank, Hansen highlighted stalling global energy demand affected by Covid-19 travel restrictions, rapidly mounting oil supplies in storage facilities and Saudi Arabia’s reduction in its oil exporting price as the key factors likely to keep the price of oil below US$ 50/barrel until 2021.

“Crude oil has been trading in a fairly stable pattern in the low US$ 40s since June, however we are seeing evidence in data from the physical market that there are risks emerging. Weak refinery margins, caused primarily by the excess of unwanted diesel and jet fuel, are leading to storage facilities rapidly filling up,” said Hansen.

Meanwhile, Saudi Arabia has reduced its official selling prices for exports to Asia, adding fuel to the growing belief that the recovery in global demand is stalling amid new Covid-19 flare-ups around the globe. The reduction in Saudi Arabia’s selling price may also be an attempt to support stronger imports from China as

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competition for this important customer heats up amid slowing demand. This comes after China’s seaborne crude oil imports in August fell 5.4% month-onmonth to 11.3 million barrels per day, still up 13% from a year earlier.

Hansen explained that a dramatic new sell-off in crude oil is not expected, but acceptance needs to be reached that Covid-19 and doubts about the availability of a vaccine may delay a further recovery towards US$ 50 and higher until next year.

“The slowness of the oil price recovery is testing the unity of the OPEC+ group, which arguably increased production before demand had recovered enough to absorb the additional barrels. In addition, the long-term impact of low oil prices and Covid-19’s negative impact on global tourism and business travel will continue to pose challenges for the UAE and other GCC economies,” said Hansen,

O le Hansen, Head of Commodity Strategy, Saxo Bank

Business News for the MEA region

adding: “OPEC members are eager to see a price recovery because, at US$ 40, oil is roughly half the price that many members, including Saudi Arabia, need for their budgets to stay in the black.”

Hansen expects global energy d e m a n d to re m a i n o n re g i o n a l governments’ agendas for some time, with the outlook for energy markets still unclear even when a vaccine puts an end to the pandemic.

“Much depends on how we individually and collectively change behaviour, and how we work in the future,” said Hansen.

“It’s entirely possible the pandemic will change the way we live and work in the future, which may negatively impact the consumption of fuel going forward. I expect the new normal will mean fewer domestic and international business meetings, a higher rate of professionals working from home, an uptake in cycling as a form of transport, a substitution of domestic holidays for foreign trips, and a preference for domestic service and goods. These factors will have a meaningful impact on energy demand, and I expect this issue to be a leading focal point in 2021 and beyond,” concluded Hansen.

THE LONG-TERM IMPACT OF LOW OIL PRICES AND COVID-19’S NEGATIVE IMPACT ON GLOBAL TOURISM AND BUSINESS TRAVEL WILL CONTINUE TO POSE CHALLENGES

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Opinion Piece

AI Business Transformation Thierry Nicault, Executive Vice President – Middle East, Africa, and Central Europe for Salesforce shares his opinion on how AI and Robotics Can Complement and Create Jobs, Cultivate a Fairer Economy, and Benefit Society

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h e re a s t h e C OV I D -1 9 p a n d e m i c h a s fo rc e d whole industries across the Middle East to transform their business models and digital capabilities by necessity.

Those industries who develop Artificial Intelligence (AI) technologies continually aspire to use technology to augment the way we work and live, with ambitions to be faster, more efficient and more insightful. In the world of work, AI is helping us to save time and boost productivity. From call centres, supply chains or boardrooms, our experiences have been – and continue to be – totally transformed. With Salesforce’s Einstein Voice Assistant, for example, AI can help users to navigate cloud services hands-free, to update meeting notes and records instantly. AI can also take on more routine and repetitive administrative tasks like data entry and finding critical information, in turn helping refocus time and resources on tasks and projects that humans uniquely can accomplish. Although making our lives a bit easier and more convenient, the development of automation has raised concerns around the future of jobs.

Whilst the combination of the public health crisis and rapid technological advancements may decrease demand for certain task-orientated jobs, like the changing priorities and practicalities of many businesses right now, a lot of jobs will be transformed entirely. The

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potential for AI to create new products, services and jobs is enormous. As the reliance on new AI technologies rise, we also have a responsibility to ensure that inequalities do not rise alongside it.

Handled responsibly, AI will help us do our jobs more efficiently and live fuller lives. It may even revolutionize how societies are governed and encourage a fairer way of distributing wealth.

Complementing and creating jobs Automation may not only complement the jobs we do, but also lead to broader levels of employment. Just as AI tools are helping sales teams prioritize leads, they’re also helping companies elevate how they interact with their customers and make better business decisions through data. This is why at Salesforce we are helping companies embrace and deploy AI. During this time of disruption, we’re seeing whole teams and roles entirely transformed. As the pandemic evolves, so too will the demands of customers and the services that businesses offer. This means companies will also need to help their employees to up-skill and possibly even re-skill entirely. In a world where companies are increasingly judged on the quality of the customer experience they provide, multitasking and learning in both the physical and digital spheres are imperative to engaging effectively with customers and with evolving a workforce.

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Cultivating a fairer economy By bringing technology, economists and governments together, we can also transform how we approach governance and taxation. Salesforce Research’s AI Economist framework, with the capability to simulate millions of years of economies in parallel, shows how economic design AI can be used to optimize the balance of productivity and social equality for everyone. In addition to the clear, longterm positive social impact this could have, the issue of taxation will become increasingly relevant as this pandemic continues and governments seek to re-adjust fiscal policy to pay for their interventions.

Benefiting everyone in society During this pandemic we’re seeing AI fastforward the process of drug discovery, revolutionize health systems with capabilities to predict service demand, and transform businesses in the context of social distancing guidelines. We are still only at the beginning of the AI journey.

There are legitimate fears around what implications automation may have on jobs and employment. To ensure everyone reaps the benefits, companies must help employees adapt to changing working environments, always to stay curious and put ethics at the forefront of everything they do in AI.

Thierry Nicault, Executive Vice President – Middle East, Africa, and Central Europe, Salesforce

Opinion Piece

FinTech is integral for economic recovery Thomas Bicknell, Partner, Financial Services, Pinsent Masons shares his opinion on the crucial role fintech is playing to support economic recovery.

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hilst the dual shock of low oil prices and the unprecedented impact of a global pandemic h a s p re s e n t e d e c o n o m i e s a n d businesses around the world with serious challenges and uncertainty, times of crisis can also present opportunities and act as a catalyst for change and disruption, both at a societal and economic level.

The entire world has faced the unprecedented impact of the COVID19 pandemic for the past few months, but with economies slowly opening up and businesses shifting gear from ‘respond’ to ‘recover’ mode, companies need to consider the

Thomas Bicknell, Partner, Financial Services, Pinsent Masons

different opportunities and begin to adopt more agile approaches to secure their future success in the ‘new normal’. While some sectors and supply chains have been hit hard due to the pandemic, some are inherently well-positioned to be resilient to the impact of the pandemic. A strong example of this is the fintech sector, which is emerging stronger than ever as people turn towards digital services.

The digitalisation of the financial services sector has been ramping u p fo r s eve ra l ye a rs n ow, w i t h FinTech companies like Softbank, Venmo, and Liv. Bank in the UAE utilizing breakthrough technologies like AI, big data, blockchain and cryptocurrencies. However, the onset of COVID-19 has accelerated the process, creating an environment ripe for the rapid digitization of financial services as social distancing and containment measures increase the appetite for mobile and online FinTech solutions for both consumers and corporates. The process has been accelerated particularly in the Middle East, as the region has already adopted technology considerably and their forward looking national visions such as UAE’s 2020 Vision: onto the

next 50 and KSA’s Vision 2030 aim for digital transformation across several industries, including the financial services sector. During the crisis, the adoption of FinTech by financial institutions has seen a new peak, one which is expected to continue to develop and disrupt traditional, often outdated, practices.

Globally, the FinTech industr y has seen a surge during the current situation with a study from financial advisory firm deVere Group showing a 72 per cent spike in FinTech mobile application usage in just one week at the beginning of the crisis. According to a study by McKinsey, more than 92 per cent of people in the UAE use smartphones which presents a substantial opportunity for FinTech companies – particularly those in the mobile payments sector, which is forecasted to grow at an increasing rate of 30 per cent per year in the UAE alone. The MENA FinTech market is also expected to grow exponentially and set to be worth $2.5 billion by 2022.

How will FinTech lead the way?

U n l i ke re g u l a r f i n a n c i a l s e r v i c e providers, FinTech providers operate in a more flexible and agile manner to adapt to new services based on ever-changing demands. This unique capability poses an excellent opportunity for FinTech firms to build their reputations, emerge stronger than ever before, and become the leading advocates while economies shift and adapt to the new normal.

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The wide adoption of FinTech has vastly improved accessibility to technology and solutions, which puts FinTech companies in a secure position to consider extending their capacity to support underbanked businesses and help them recover.

FinTech companies that transcend support to their customers during this challenging period are likely to drive extended growth post-crisis.

Therefore, investors and business leaders are pushing their portfolio c o m p a n i e s to refo c u s o n t h e i r customer service mission and core product roadmap to provide topgrade FinTech services. According to a report by FinTech accelerator Village Capital, the main FinTech innovation that will boost the financial health of the MENA region’s marginalised c o m m u n i t i e s b y d e m o c ra t i s i n g access to financial services postpandemic are; savings and wealth building tech, employment tech, digital ID, financial literacy, access to capital and alternate lending.

I n re c e n t ye a r s , m o re b a n ks have digitalized their systems and transformed the way they conduct business through FinTech companies that have introduced digital and datadriven tools. From RPA in the back

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office to customer-facing technology using AI chatbots and digital money transfers, FinTech has opened up a new field of innovation upon banks.

H oweve r, to a d a pt to t h e p o stCOVID-19 world, these new tools are not just mere add-ons but are integral to any bank’s strategy.

Now is the time for change The current situation presents the perfect opportunity for private sector entities to accelerate the digitization of financial ser vices and public sector entities to explore digital currencies by partnering with FinTech startups. The central government banks in the UAE and Saudi Arabia have been ahead of the curve and have set up a pilot program that has been in effect since 2019 to develop a shared digital currency for crossborder bank transactions to help drive the transformation of the finance industry and build investor trust in digital currencies which other retail banks can participate in. The program aims to safeguard customer interests, s e t te c h n o l o g y s ta n d a rd s , a n d assess cybersecurity risks along with determining the impact of a central currency on monetary policies. As the region’s financial sector undergoes a period of rapid digital transformation,

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UNLIKE REGULAR FINANCIAL SERVICE PROVIDERS, FINTECH PROVIDERS OPERATE IN A MORE FLEXIBLE AND AGILE MANNER TO ADAPT TO NEW SERVICES BASED ON EVER-CHANGING DEMANDS. banks and financial institutions will need to radically restructure the way they work.

To deliver their products in a more accessible way, banks need to partner with FinTech providers to offer fast and convenient digital financial services and incorporate innovative solutions to common problems and develop new products that will propel the industry digitally and meet the demands of the ‘new normal’. This will ultimately drive economic recovery in the months and years to come.

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Future Trends

The trends shaping the future of the financial sector in the GCC Abdulfattah Sharaf, CEO UAE & Head of International, HSBC Bank Middle East Limited, shares his insights and pinpoints the developing trends in the regional financial service sector.

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e have noticed several trends across the GCC banking sector. Which trends do you see shaping the future of the financial services industry for the forseeable future?

Technology, innovation and sustainability are clear priorities for the banking sector not only in the region but globally.

At HSBC, these have been areas of investment for a number of years but the global pandemic has shown us that it is more imperative than ever to be on the forefront of digital banking and innovation, while also being able to offer a wide range of green solutions to our customers.

Do you see these trends picking up pace for the next year or so?

While HSBC has been innovating and investing in new technologies for decades, we’ve absolutely seen an acceleration in the pace of change over the last few years - and the impact of COVID-19 has put an even greater focus

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on the importance of innovative digital banking solutions. Our technology and banking teams have been working closer than ever over the last six months to accelerate planned developments, such as incorporating digital signatures into customer journeys to provide contactless service, and launching a new online investment platform in the UAE, providing real time access to book equity and ETF trades at the customer’s convenience, along with robust insights to track progress on their wealth portfolio. Keeping our customers connected to their finances – whether savings and investments, or payments and international transfers – has ensured that funds have stayed flowing despite lockdowns and economic dislocation worldwide. The sustainable investing landscape is also an area where we are seeing rapid change. Led by several years of shifting societal expectations, investors are placing increased importance on the wider social and environmental impact of businesses and international supply chains. They are

Business News for the MEA region

considering more stakeholders and thinking longer term to make purpose-led investments.

When crisis manifest – particularly with social and environmental causes and implications such as COVID-19 – we see investors and corporates considering the materiality of these issues and assessing how well economies manage the associated risks and opportunities What is your organization doing differently to adopt to these trends?

Our approach at HSBC to financial technology innovations has been to partner with the fintech industry, helping to build a stronger ecosystem and provide superior products and services to customers. These partnerships are bringing significant customer and business benefits to HSBC globally, delivering insight into major innovation trends, early adoption of new technology or business models, and sound financial returns. We’ve been at the forefront of finding innovative solutions for our customers to create a bank fit for the

LED BY SEVERAL YEARS OF SHIFTING SOCIETAL EXPECTATIONS, INVESTORS ARE PLACING INCREASED IMPORTANCE ON THE WIDER SOCIAL AND ENVIRONMENTAL IMPACT OF BUSINESSES AND INTERNATIONAL SUPPLY CHAINS.

future.

On the sustainability front, in July 2020 HSBC announced the formation of a dedicated Environmental, Social and Governance (ESG) Solutions unit to help clients around the world rebuild and transition their businesses and economies in a more sustainable way post-COVID-19. HSBC has taken a leading global role in ESG financing in recent years and the new unit will more effectively focus the bank’s full range of capabilities and expertise in providing clients with ESG-related advice, strategies and financing ideas.

What are the significant challenges confronting the banking sector across the GCC region currently?

And how do you expect these to pan out in the last quarter of the year? It is no secret that COVID-19 changed the world and like many other industries, the banking sector was not immune. We are now focused on the future. New industries for future cities will need technical support and collaboration from all over the world.

This will be a challenge but also an opportunity for a bank like HSBC.

Abdulfattah Sharaf, CEO UAE & Head of International, HSBC Bank Middle East Limited

How do you envision the future of banking and if I were to sit down with you again six months from now do you think you will give me the same answer?

As we saw over the last six months, trade and supply chains have been changed, some may argue, forever. We will see supply chains move closer to the end consumer. Companies that were not digital have no choice but to digitise to be able to survive. Paper is becoming a thing of the past. Without technology, goods can’t move. Usage of our online corporate banking platform, HSBCnet, witnessed a 300% increase in the wake of the COVID-19 crisis and our investment in technology such as blockchain helped transaction times shrink from weeks to days. I think this trend is only going to exacerbate in the coming months and years ahead.

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Business Redefined

Trends that will shape the future of Business in the GCC. Ghassan Aboud Group (GAG) is an international conglomerate that operates in the Automotive, Logistics, Media, Hospitality, Real Estate, Retail and Catering sectors. MEA Business spoke to Ghassan Aboud, the company’s Chairman to obtain his unique perspective on the trends shaping the region’s business community.

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e have noticed several trends across the GCC Business community.

Which trends do you see shaping the future of regional business for the foreseeable future?

The GCC businesses have been tr ying to cope with the general economic downtrend even before t h e C OV I D -1 9 c r i s i s . O n e c o u l d see that most business leaders were focusing on optimization of costs in line with reduced revenue streams. Furthermore, businesses

Ghassan Aboud, Chairman of Ghassan Aboud Group (GAG)

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are upgrading their technologies on the digital front to ensure market penetration and enhanced customer experience.

Also, the businesses are evaluating t h e i r st ra te g i e s o n l o n g te r m sustainability more and more, as the sudden impact of the crisis hit them hard. New ways of working are emerging for employees and related technologies to ensure productivity are now coming to the forefront.

Do you see these trends picking up pace for the next year or so?

Yes, I believe these trends have gained traction and are more likely to intensify in the coming months. This is driven by the fact that organisations that are unable to pick up along these lines may become unsustainable. Today business leaders are closely watching the market for any trends that could impact their businesses. Only fittest can survive the crisis.

What is your organization doing differently to adapt to these trends?

Our group commenced acting on these areas well in advance. In a way,

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our initiatives on the digital side were quite timely as our aim is to be fully prepared when the economies pick up post-COVID. Furthermore, we have explored several innovative business models that can leverage on our existing strengths – in terms of people, infrastructure, products and market reach.

What are the significant challenges and opportunities that you are c u r re n t l y ex p e r i e n c i n g i n t h e business sectors you operate in?

And how do you expect these to pan out over the next 6 months?

The challenges are obvious – the travel restrictions, reduced economic activity driven by the pandemic and less consumption of some products and services. We hope that the situation will ease in the coming months, but may still remain challenging.

But it is important to use the time to prepare for the future. We see opportunities across several sectors including food, FMCG, logistics and digital models. Its an ideal time to look for good value assets that can provide healthy future benefits for companies.

The covid-19 crisis has taught the business community the need to be resilient, agile and innovative, which of these qualities most represent your organization?

I think a combination of all the three is critical as an effective response to the crisis. Our organisation has stood up to the challenge very effectively. Our business leaders have been united and strong in their response to the crisis.

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Appointments

Middle East Business Leadership appointments We take a look at the comings and going of some of the Middle East Region's Leading Executives and professionals.

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Business News for the MEA region

Investcorp

Huawei

Virtuzone

Investcorp, a leading global provider and manager of alternative investment products, announced that it has appointed Habib Abdur-Rahman, Principal, Corporate Development as its internal ESG lead. Within this new role, Habib will be responsible for overseeing the accelerated adoption of a standardized ESG framework, including implementing and enhancing ESG alignment across all business lines and geographies.

Huawei announced that Omar Akar will join the leadership team of the Middle East division of its new Cloud and AI Business Group, in the role of Regional Vice President and Managing Director. With extensive experience within the information and communications technology sector within the region, Akar will drive the growth and development of the Cloud and AI Business Group.

Mark Beer, former Chief Executive of the DIFC Courts, returns to the Middle East as Special Advisor to Virtuzone, the first and largest company formation firm in the region.

The collaboration aims to deliver a global, borderless jurisdiction in which companies can establish, transact and succeed internationally whilst avoiding the increasing boundaries, borders and tariffs of our deglobalizing world.

National Bank of Kuwait Group National Bank of Kuwait Group recently announced that its Group Chief Financial Officer Jim Murphy is retiring after a twenty-year career with the Bank. Mr. Murphy plans to step down from his position at NBK effective 31st October, 2020. NBK also announced that Mr. Sujit Ronghe, the Group’s Financial Controller, will be Acting Group CFO commencing November 1st.

“On behalf of NBK’s Board and Management Team, I would like to thank Jim for his commitment, dedication and highly valued contributions to the growth and development of the NBK Group during his many years of service at the Bank. Jim’s exceptional leadership skills together with his extensive financial expertise have been of tremendous value to NBK over the years,” said Mr. Isam Al-Sager, NBK Group CEO. Mr. Murphy said: “It has been a privilege and a pleasure to work at NBK over the many years, and a true honor to have worked with NBK’s distinguished and respected Board of Directors and Management Team. I want also to pay tribute to my colleagues in Group Finance whose professionalism, dedication and support have been invaluable. I wish the members of the Board, the Management Team and all at NBK continued success long into the future”. mea-biz.com

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Cover Story

Welcome to the future of flight Rolls-Royce talks to MEA Business regarding the future of flight including its groundbreaking Future Systems Simulator and its new technology set to power the world’s fastest all-electric plane

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olls-Royce is a pioneer in aviation, committed to d e l i ve r i n g n ew l eve l s of efficiency and sustainability across its business interests. Evidence of this forward looking, pioneering spirit is seen at the Aerospace Integration Research Centre (AIRC) at Cranfield University where some of its most creative thinkers are coming up with the answers to a variety of aviation’s biggest future challenges.

One of the solutions that Rolls-Royce systems architects have created is the Future Systems Simulator (FSS), and while it may look like a giant games console, it’s actually one of the cleverest pieces of digital technology developed to support research into the future of flight.

support near-term product innovation as well as facilitating the evolution of singlepilot crewing and propulsion systems electrification. The FSS works across all three pillars of Rolls-Royce’s sustainability strategy that aims to optimise gas turbine performance, improving power system and aircraft integration, and exploring novel propulsion technologies such as electrification.

Integrate and collaborate Peter Beecroft, a systems architect at Rolls-Royce, explains that the days of

The FSS provides a flight deck platform that allows future propulsion systems, controls and services to be flown in a virtual environment.

The simulation of existing and nextgeneration aircraft systems on the FSS provides the potential to maximise gas turbine integration opportunities and elevate use of data to the next level.

Customers are already engaging with Rolls-Royce to exploit this capability to

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Business News for the MEA region

independent optimisation of airframe and propulsion are coming to an end: “We are already beginning to see technologies which capitalise on better airframe-engine integration and these technologies are going to become increasingly important in the future.”

At Cranfield, Rolls-Royce already collaborates with Airbus to understand better what airline customers will want from aircraft in the future, and then use the FSS to accelerate solutions for architecture that may not be a reality for a decade or more. Some key areas of research include reducing the weight of powerplant system and understanding the best use of electric offtake in an aircraft. All of these efforts underpin Rolls-Royce’s ultimate goal of delivering better efficiency across the aircraft for its customers.

In addition, as engines for widebody aircraft get bigger, with larger fan blades and fan cases, the challenge of attaching them to the aircraft pylon gets harder.

The FSS is being used to see how this can be done in a virtual environment.

Beecroft also explains that the FSS is helping in the development of systems for airframe platforms with a high degree of electrification, such as Rolls-Royce’s eVTOL and ACCEL projects.

“The aerospace world is experiencing a renaissance of creativity when it comes to designing hybrid and electric platforms, with a bewildering array of concepts and equally diverse concepts for power and propulsion systems.

In many of the novel proposals, the propulsion system becomes an integral part of flight control, so our ability to simulate these systems and test their behaviour becomes critical.”

So how does Rolls-Royce develop systems for the management of such a broad range of concepts, potentially when many won’t even make it off the drawing board? Luckily with drawing boards being digital these days they won’t have to do so. Many of the models can be imported directly or as behavioural characteristics into the modular software of the FSS.

Peter Beecroft, Systems Architect at Rolls-Royce

THE AEROSPACE WORLD IS EXPERIENCING A RENAISSANCE OF CREATIVITY WHEN IT COMES TO DESIGNING HYBRID AND ELECTRIC PLATFORMS, WITH A BEWILDERING ARRAY OF CONCEPTS AND EQUALLY DIVERSE CONCEPTS FOR POWER AND PROPULSION SYSTEMS

The here and now It is worth noting, however, that the technologies being developed on the FSS are not necessarily all about future platforms – they can also help provide better understanding of the interactions between the pilots and current gas turbine systems and generate better information to optimise use of an engine to match a particular mission – whether that be minimising fuel burn or maximising engine life.

“Because of the highly flexible nature of the touchscreen-enabled FSS, as well as the modular nature of the software, we can represent existing platforms such as the Airbus A350 or Boeing 787 to a good

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fidelity,” says Beecroft. “With accurate representations of aircraft platforms and their systems we can investigate integration of engines into the aircraft, doing this in advance of any real-world integration or flight testing, ensuring the quality of such testing is greatly improved.”

This capability takes the use of data to a new level - Rolls-Royce is regarded as industry leaders in its use of the world’s most sophisticated Engine Health Monitoring (EHM) on the Pearl family of engines – but the FSS takes this one step further by delivering Enhanced Cockpit Decision Making (ECDM) flight deck application solutions.

These aim to address current issues caused by the fact that engine displays on the flight deck have changed little in decades, often displaying digital indications of a select few engine parameters that used to be analogue dials. ECDM gives the pilots greater contextual awareness of the condition of an aircraft’s powerplants, enabling the flight crew to make better quality decisions, especially under challenging scenarios.

The FSS is a great example of how Rolls-Royce’s IntelligentEngine vision has come to life as the platform enhances the ability of engines to become more and more connected, comprehending and contextually aware. Welcome to the future of flight.

World’s fastest all-electric Airplane Rolls-Royce has completed testing of the ground-breaking technology that will power the world’s fastest all-electric plane. All the technology has been tested on a full-scale replica of the plane’s core, called an ‘ionBird’, including a 500hp electric powertrain powerful enough to set world speed records and a battery with enough energy to supply 250 homes.

The plane is part of a Rolls-Royce initiative called ACCEL, short for

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‘Accelerating the Electrification of Flight’.

Our ACCEL project team includes key partners YASA, the electric motor and controller manufacturer, and aviation start-up Electroflight. The team has been developing the technology while adhering to the UK Government’s social distancing and other health guidelines and the systems will soon be integrated into our ‘Spirit of Innovation’ plane. There is a long history of iron-birds in aviation for testing propulsion systems ahead of flight, but in this case we have named the test airframe ‘ionBird’, after the zeroemission energy source propelling the aircraft.

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UK Business and Industry Minister Nadhim Zahawi said: “From trains to planes, our transport of the future will be powered by clean, electric sources - with companies like Rolls-Royce developing the tech to help meet our net zero ambitions. The completion of groundtesting for the government-backed ACCEL project is not only a step towards an exciting world record attempt, but a leap towards developing all-electric and hybrid-electric planes that one day could ferry large numbers of passengers around the world.”

The dedicated team have tested each and every component of the system including:

Bremont, will be the official timing partner for the all-electric speed record attempt. The British luxury watch maker has also helped develop the design of the plane’s cockpit which will feature a stopwatch, while the company has machined canopy release parts at its Henley-on-Thames manufacturing facility.

The first flight is planned for later this year and Rolls Royce are aiming to beat the current all-electric flight world record early next year. Half of the project’s funding is provided by the Aerospace Technology Institute (ATI), in partnership with the Department for Business, Energy & Industrial Strategy and Innovate UK. Mark Scully, Head of Technology for Advanced Systems & Propulsion at the Aerospace Technology Institute, said: “The significance of reaching this milestone should not be underestimated.

The ACCEL team is pioneering the integration of high-per formance batteries, motors and drives to deliver an electric propulsion system in an ambitious flight test programme.

These technologies and the systems integration needed to utilise them hold great potential for future sustainable aviation, which is why the ATI is proud to support the project.

Running the propeller up to full speed (approximately 2,400 rpm) using the most power-dense battery pack ever assembled for aircraft propulsion. When at full power during the flight-testing phase, it will propel the aircraft to more than 300mph setting a new world speed record for electric flight. Over 6,000 cells are packaged in the battery for maximum safety, minimum weight and full thermal protection.

Since January, engineering and test pilots have spent many hours optimising the system and developing operating procedures for electric flight.

Generating GBs of data every hour of operation which the team have

analysed to improve performance wherever possible.

Rob Watson, Director – Rolls-Royce Electrical, said: “Rolls-Royce is committed to playing a leading role in reaching net zero carbon by 2050. The completion of ground-testing for the ACCEL project is a great achievement for the team and is another important step towards a world record attempt. This project is also helping to develop Rolls-Royce’s capabilities and ensure that we remain a leader in delivering the electrification of flight, an important part of our sustainability strategy.”

The ACCEL project is a series of firsts for Rolls-Royce as we journey towards net zero carbon by 2050. It is the first RollsRoyce project to use offsetting to make the whole programme carbon neutral.

We are also looking to inspire young people, with the ACCEL project, to consider STEM careers (Science, Technology, Engineering and Maths). We have developed downloadable materials aimed at primary school children around the project. These are linked to the UK curriculum and everything can be downloaded from our website."

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Aviation

Airbus reveals three new zero-emission concept aircrafts To support the drive towards sustainable aviation Airbus recently showcased three zero carbon concept aircrafts that could enter service as early as 2035. Zero carbon air travel will be a welcome boost to the health of the planet as it is currently responsible for 12% of CO2 emissions from all modes of transports.

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ccording to Airbus, Liquid hydrogen, which is usually reserved for rocket fuel, will be the primary power source for a new generation of zero-emission commercial aircrafts. The three concepts aircrafts recently revealed

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by airbus could be in service in under 15 years, making them the world’s first zero-emission commercial aircrafts.

Airbus believes Liquid hydrogen holds exceptional promise as a clean aviation fuel and is likely to be a solution for aerospace and many other industries to

Business News for the MEA region

meet their climate-neutral targets.

“This is a historic moment for the commercial aviation sector as a whole and we intend to play a leading role in the most important transition this industry has ever seen. The concepts we unveil today offer the world a glimpse of our ambition to drive a bold vision for the future of zero-emission flight,” said Guillaume Faury, Airbus CEO. “I strongly believe that the use of hydrogen – both in synthetic fuels and as a primary power source for commercial aircraft – has the potential to significantly reduce aviation’s climate impact.”

The three concepts – all codenamed “ZEROe” – for a first climate neutral zeroemission commercial aircraft include:

Blended-Wing body design A “blended-wing body” design (up to 200 passengers) concept in which the wings merge with the main body of the aircraft with a range similar to that of the turbofan concept. The exceptionally wide fuselage opens up multiple options for hydrogen storage and distribution, and for cabin layout.

Turboprop design A t u r b o p ro p d e s i g n ( u p to 1 0 0 passengers) using a turboprop engine instead of a turbofan and also powered by hydrogen combustion in modified gasturbine engines, which would be capable of traveling more than 1,000 nautical miles, making it a perfect option for shorthaul trips.

Turbofan design A turbofan design (120-200 passengers) with a range of 2,000+ nautical miles, capable of operating transcontinentally and powered by a modified gas-turbine engine running on hydrogen, rather than jet fuel, through combustion. The liquid hydrogen will be stored and distributed via tanks located behind the rear pressure bulkhead.

Guillaume Faury, Airbus CEO. “These concepts will help us explore and mature the design and layout of the world’s first climate-neutral, zero-emission commercial aircraft, which we aim to put into service by 2035,” said Guillaume Faury. “The transition to hydrogen, as the primary power source for these concept planes, will require decisive action from the entire aviation ecosystem. Together with the support from government and industrial partners we can rise up to this challenge to scale-up renewable energy and hydrogen for the sustainable future of the aviation industry.”

In order to tackle these challenges, airports will require significant hydrogen transport and refueling infrastructure to meet the needs of dayto-day operations. Support from governments will be key to meet these ambitious objectives with increased funding for research and technology, digitalisation, and mechanisms that encourage the use of sustainable fuels and the renewal of aircraft fleets to allow airlines to retire older, less environmentally-friendly aircraft earlier.

Guillaume Faury, Airbus CEO

THESE CONCEPTS WILL HELP US EXPLORE AND MATURE THE DESIGN AND LAYOUT OF THE WORLD’S FIRST CLIMATE-NEUTRAL, ZERO-EMISSION COMMERCIAL AIRCRAFT, WHICH WE AIM TO PUT INTO SERVICE BY 2035.

mea-biz.com

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Advertorial

Bombardier Global 7500 Aircraft The Pinnacle of Business Jet Travel

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ith three leading aircraft families, Bombardier Aviation offers the most comprehensive line of business jets of any original equipment manufacturer. The company’s three platforms of Learjet, Challenger and Global business jets allow customers to grow within the Bombardier business aircraft family as their travel requirements evolve.

The crowning jewel in Bombardier Aviation’s portfolio is without a doubt the Global 7500 aircraft, the world’s largest and longest-range business jet.

Since entering service in December 2018, this aircraft has created a new era for aviation, redefining what is possible aboard a business jet. With unparalleled performance, countless innovations and a growing list of recognitions, the Global 7500 aircraft is the flagship of the industry.

The World Within Reach With its outstanding range of 7,700 nautical miles, the Global 7500 aircraft is the ultimate tool for busy executives, able to connect city pairs that were previously out of reach. The Global 7500 aircraft can connect Cairo to Los Angeles, Tehran to Rio de Janeiro or Dubai to

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New York, non-stop.* In addition, the Global 7500 aircraft is the largest business jet with short-field performance and steep approach capabilities able to operate out of London City Airport and to connect any city in the continental U.S., Africa or the Middle East.* Its longrange performance can go even further traveling eastward, reaching most major cities in Asia.

The Global 7500 aircraft’s unmatched range capability holds true in real-world conditions. In fact, Bombardier’s Global

* under certain operating conditions

Business News for the MEA region

7500 demonstrator business jet successfully connected Sydney and Detroit in one non-stop flight, the longest citypair in business aviation in history flown by a purpose-built aircraft.

Your home and office in the sky Given its capacity for long flights, the Global 7500 aircraft is designed to create the ultimate passenger experience.

It offers four separate living areas: the Club Suite, the Conference Suite, the Entertainment Suite and the Master Suite, all this in addition to a dedicated crew rest area. The Global 7500 aircraft also boasts the largest and most wellappointed kitchen in business aviation for a wide variety of meal options.

Setting the benchmark for the most exceptional cabin interior, the Global 7500 aircraft features industry-first innovations such as Bombardier’s Nuage seat, meticulously designed to cradle and support the body on longer flights.

Redefining comfort with its revolutionary deep recline feature, Bombardier’s patented Nuage seat is the first new seat architecture in business aviation in 30 years.

Another innovation in cabin experience aboard the Global 7500 aircraft is the Soleil lighting system, featuring Dynamic Daylight Simulation to assist

The Master Suite aboard the Global 7500 aircraft features a full-size bed for a comfortable night’s sleep. And whether for work or rest, the Global 7500 aircraft offers the smoothest ride for the best passenger experience.

in regulating the sleep-wake cycle and help synchronize passengers’ circadian rhythms to the time at their destination.

The Soleil lighting system can also be customized to a passenger’s preference for either extended sleep or productivity via the system’s unique circadian adjustment setting. The Soleil lighting system can conveniently be programmed to schedule optimal times for meal services, allowing the cabin crew to better prepare and plan more efficiently.

Cabin entertainment reaches new heights aboard the Global 7500 thanks to Bombardier’s l’Opéra, the industry’s first audio system featuring full-range speakers, advanced digital signal processing and seat-centric sound technology for a redefined—and redesigned— cabin audio experience.

Passengers can control the cabin easily and intuitively thanks to the revolutionary nice Touch cabin management system, featuring business aviation’s first application of an OLED display.

Bombardier Pũr Air In addition to the wellness advantages provided by innovations such as the Nuage seat, the Soleil lighting system, and the smoothest ride, the Bombardier Global 7500 aircraft is also equipped with a highly sophisticated air purification and circulation system known as Pũr Air, for ultimate peace of mind.

Bombardier Pũr Air features an advanced HEPA filter that captures up to 99.99% of allergens, bacteria and viruses while completely replacing the cabin air with 100% fresh air in as little as 90 seconds. Bombardier Pũr Air delivers cleaner air with better humidity levels and quicker heating and cooling than “100% fresh air”-only systems.

HEPA filters are a proven technology that clean the air of airborne contaminants and are relied upon every day in critical settings such as hospitals. The HEPA filter for Bombardier Pũr Air systems has a demonstrated test efficiency of up to 99.99% in capturing particles 0.3 microns in size, versus the minimum efficiency of 99.97% for the HEPA standard.

Accolades and Achievements With its unmatched combination of performance and cabin experience, it’s no wonder the Global 7500 aircraft has been receiving industry awards, including the 2019 Aviation Week Grand Laureate Award and a Red Dot award for design. The Nuage seating collection has also been singled out, winning the 2019 International Yacht & Aviation Award for Seating Design.

Bombardier recently announced the delivery of the first Global 7500 aircraft equipped with a dual head-up display (HUD). This first-in-class capability provides additional safety and redundancy to what is already the most advanced and pilot-friendly cockpit in business aviation.

Environmental Commitment In June 2020, Bombardier was proud to announce that the Global 7500 business jet received business aviation's firstever Environmental Product Declaration.

The Global 7500 aircraft EPD is thirdparty verified and discloses fully transparent environmental information about the product’s life cycle, such as CO2 emissions, noise, water consumption and other key environmental impact indicators. Bombardier has committed to communicating the environmental performance of all new aircraft programs through EPDs. The publication of the Global 7500 aircraft EPD is an important milestone in the advancement of Bombardier Aviation’s overarching environmental sustainability strategy, which encompasses increasing the adoption of Sustainable Alternative Fuels (SAF), reducing CO2 footprint, enhancing aircraft recyclability, and sustainably sourcing, all as a part of its Eco-Design approach and in support of industry-wide carbon reduction goals.

Worldwide Customer Support As Bombardier grows its customer service capabilities around the world, it is committed to making sure its customers around the world, including the Middle East, have access to excellent service.

With its growing network of service centers, line maintenance stations, and a Mobile Response Team that is available 24/7, Bombardier Aviation offers an exceptional customer service experience.

How to Get in Touch The use of private jets is an important tool for the business community and corporations. Private aviation connects people and businesses locally and around the world.

Contact your Bombardier Business Aircraft Sales Representative in the region for more information: Wassim Saheb Sales Director, Middle East & North Africa

M. +971-506-546-627

mea-biz.com

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Technology

Synergy Across Five Major Tech Domains Key to Region’s Smart City Success

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igital technologies are becoming deeply embedded in all areas of today’s cities—whether in urban governance, citizen life, public safety, or industrial development.

As a result, a smart city development race is taking place around the world and is driven by the growing digital economy.

Building a smart city requires more than mere investment in information and communications technology (ICT) infrastructure; it takes a fine balance of cutting-edge technologies to create an ecosystem capable of delivering seamless connectivity in an environment that leads to enhancing industry, happy people, and better governance.

The ABC+5G approach In this “ABC+5G” approach, we can set off a chain reaction that provides local industry with all-scenario intelligence

Smart cities are fast moving from a buzzy techterm to an urban reality. Safder Nazir, Regional Vice President of Digital Industries Strategy, Huawei Middle East tells MEA Business that whatever the approach to achieving smart or cognitive cities, the end goals remain the same and that future proofing your systems will require co-creation and collaborative innovation.

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Business News for the MEA region

In the Middle East today, that means implementing what we refer to as an “ABC+5G” approach – applications that leverage artificial intelligence (AI), big data, and cloud computing, all underscored by 5G connectivity. In the global race to create more intelligent urban environments, the Middle East is unique in that there are two types of smart cities evolving.

The first are those cities that have either started or are in the advanced stages of retroactive digital transformation, such as Dubai. It is an established metropolis that is incorporating smart design into existing infrastructure, driving a transition towards becoming a smart city not only in terms of technology, but by transforming mindsets, processes, and systems all at once.

The second type of smart city in the Middle East today are those that are being designed from the ground up, such as Saudi Arabia’s NEOM Project. These are essentially blank canvases, upon which developers can use the latest innovations to ensure that the final product will be a smart environment in every possible aspect.

The approach to these two models may differ. However, the end goal for both of these approaches is the same, and therefore both need the same foundation. That can best be summarized as an operation and management network that can “see” and “think”, and which is also easy to use. This requires systems that support more scenario-based services and more intelligent decision-making and command.

Looking at the landscape today, these ICT systems ultimately provide:

A foundation of connectivity, represented by 5G-based intelligent networks that leverage Wi-Fi-6 to support real-time sensing and feedback of the data generated at the city's most basic level.

The integration of vertical data systems from different industries and government agencies, to create a single network for extensive data interconnection and unified collaboration. This is where big data and cloud computing show their foremost value.

AI-enabled applications that turn a city’s knowledge into genuine value creation, available to government agencies and enterprises alike.

More progress to be made In this “ABC+5G” approach, we can set off a chain reaction that provides local industry with all-scenario intelligence. It’s a movement that is already happening, in fact. Examples of this model are currently seen in smart grids, smart ports, smart airports, and smart factories, and they are already contributing to a better connected, intelligent world.

But there is still more progress to be made. What we consider to be “future-

proof” networks will require ICT infrastructure that offers assured performance indicators on latency, speeds, and reliability.

We thus come back to the fundamental importance of 5G. This is the heart of tomorrow’s smart—or better still, cognitive—cities, when supported by complementary platforms for big data and AI. If 5G represents the heart of a cognitive city, then the Intelligent Operation Center (IOC) can rightfully be considered its brain. The IOC must have the capacity to fulfill all the responsibilities of the city, including warnings, decision-making, governance, and so on. To do this, they rely heavily upon the pillars of big data analytics, while also employing the capacity of public, private, and hybrid cloud. Artificial intelligence is certainly there also, driving many day-to-day workings across a smart city to maximize levels of efficiency, safety, and in the end, economic growth.

If it all sounds too good to be true, it’s not. The technology needed to build the Middle East’s next generation of smart, cognitive cities is largely available today.

Safder Nazir, Regional Vice President of Digital Industries Strategy, Huawei Middle East

Technology in Action.

Abu Dhabi Municipality digital transformation Earlier this year, Abu Dhabi Municipality partnered with Huawei to help guide its digital transformation journey.

This is in line with the UAE’s leadership vision to streamline services and experiences through cutting-edge technology,

IN THIS “ABC+5G” APPROACH, WE CAN SET OFF A CHAIN REACTION THAT PROVIDES LOCAL INDUSTRY WITH ALL-SCENARIO INTELLIGENCE. Solutions available now offer the faster speeds, greater reliability, higher capacity, and lower latency needed by a booming market of connected devices. What is really needed more than ever is cocreation. At Huawei, we have seen firsthand the power of working with cities to explore digital transformation based on digital platforms that converge solutions from ecosystem partners, and integrate support from various stakeholders. This collaborative innovation throughout the value chain is the only way to leverage our existing strengths in areas like ABC+5G to scale industrial applications to more businesses and governments in the region.

aiming at a sustainable and globally-competitive economy.

Abu Dhabi Municipality has deployed a custom configuration of cutting-edge solutions, sustainably designed to meet the society’s digital needs today and in the future. Key products driving Abu Dhabi Municipality’s digital transformation include Huawei All Flash Storage and a Tier 4 Data Center.

Together, these solutions build a robust ecosystem to store and protect all data, while enhancing the overall experience for Abu Dhabi Municipality employees and customers..

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Technology

Accelerated digital investment gives Middle East banks a decisive advantage post-COVID While adapting to the ‘new normal’ has presented challenges for a number of Middle East industries, the region’s banks have been quick to double down on their technology investments and enhance digital services – both for customers and employees says Yaser Alzubaidi, Vice President – Sales Specialist Organization, Avaya International.

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ccording to research recently conducted by Avaya, 50% of banking customers express a preference towards ‘digital only’ service channels such as online banking, mobile apps, chatbots and social media. In response to these customer preferences, in recent years, banks have been spending billions of dollars on digital transformations initiatives, and globally, some of the largest financial institutions globally have continue to reinvest larger percentages of their yearly revenue into technology. This trend is perhaps even more pronounced in the GCC, where the banking sector has been a clear frontrunner in digital transformation among industry verticals.

other digital innovations in a bid to deliver world-class experience and convenience for customers. These initiatives perfectly address key customer satisfaction drivers as outlined by our research, including using new digital technology to be superefficient (41%), allowing customers to communicate how they want, when they want (36%), and providing a consistent level of service every time (35%).

As an example, one of the largest banks

Moreover, recent restrictions have disrupted traditional service channels, further accelerating these digitalization efforts. Time-to-implementation cycles have shortened significantly as banks turn to the latest technologies to elevate digital services, omni-channel customer support, and team collaboration.

Pioneers Set the Pace In response to the COVID-19 pandemic, Middle East banks have accelerated roll out of fully-digital branches, virtual banking services, self-service chatbots and

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Yaser Alzubaidi, Vice President – Sales Specialist Organization, Avaya International

Business News for the MEA region

and most reputed banks in the United Arab Emirates has further enhanced its customer-centricity through collaboration with Avaya. Working with us, they have gained the ability to draw incredible customer insights from voice-based engagement between customers and contact center agents. Using voice analytics, every single voice engagement is turned into actional insights that can drive revenue while also increasing relevance for each individual customer.

Aside from this, technologies that enable contact center agents to work remotely and solutions that enable seamless, persistent collaboration between internal and external stakeholders have been foremost among those that regional banks have requested from Avaya this year. In the coming months, the need to rapidly enable remote workforces and ensure customer service capabilities are not disrupted by ongoing developments will continue to drive IT spending in the region’s banking sector. Here too, first movers will gain a competitive edge as 59% of consumer respondents in our research indicate that consultations with financial advisors by video would contribute to making them ‘happier’ customers.

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Finance

The rise of online trading 2020 has been a year of many surprises but the global trend for increased online trading and investment should not come as a shock, writes Saxo Bank MENA CEO Steve Weller

Steve Weller, CEO, Saxo Bank MENA

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he global trend for self-directed online trading and investment had been on an upward curve in recent times, but the Covid era could be seen as the perfect storm that sparked a hike in investment and trading activity.

The pandemic’s effect on the world economy cannot be overstated. But it has also made the self-directed investment space a much more tempting prospect in a number of ways.

Consider the unusually high volatility in global capital markets recently. Traders thrive on volatile markets and it is an understatement to say that 2020 has yielded plenty of extreme market highs and lows across the key commodities.

Markets take the stairs up and the elevator down, as the saying goes, with gains achieved over a period of time being scaled back much faster. A perfect case in point is gold.

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Lockdowns and pandemic fears reached a peak from March 9-16, leading to a top to bottom collapse and tumbling stocks which triggered margin calls and the selling of gold.

The global surge in online trading and investment has also been reflected in the MENA region where have seen a 150% increase in client numbers in the past six months.

From March 20-24, investors returned with a vengeance to lift prices by 13% and from mid-July to early August gold surged again by 16% to reach a new record at $2075/oz driven by strong investor appetite as the dollar weakened and stocks surged.

Now more than ever, trading and investment firms must evolve. They must ensure their long-term survival by tapping into the growing appetite for digital solutions and take advantage of rapidly changing customer behavior.

With such swings, it is easy to see why traders have been so active. It’s vastly more appealing than a stable market with little chance of profit.

The pandemic also brought lockdown conditions to our modern world. To many, that meant more downtime, more home time, and more time in the digital realm.

Put those three conditions together along with the market volatility, and it is easier to see why online trader and investor numbers are on the rise.

Digital transformation and evolution in the online investment space now means a lot more freedom for potential investors, who are becoming more aware of tools that give them the opportunity and market access to manage their own wealth independently.

At Saxo Bank we provide traders and investors direct access to the global financial markets via a reliable, stable and high-performing platform with functionality which allows them to actively manage their positions and overall risk in real-time across all devices.

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Recently we accelerated our work to support our clients through personalised news and alerts, online education, webinars and risk management tools. We have seen significant uptake in client engagement with this content with a 260% increase in webinar attendance, a 250% increase in visitors to the market analysis and thematic trading ideas hub, and a 120% increase in visitors to the education hub.

Modern-day investors have varying needs, interests and risk appetites depending on attitude, investment and time horizon. The online space offers self-directed investors a multitude of options, a completely different proposition challenging the traditional wealth advisor model.

At the heart of online investment is the democratization of trading and investing, a change which we have been championing at Saxo Bank for over a quarter of a century. Now that there is access to global markets and a wide range of products to suit each investor’s risk profile and investment level, we believe that the true potential for online trading and investment is only just now being revealed.

36 FORTUNE

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Finance

Listing on Premier Market continues Boursa Kuwait’s series of milestones

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oursa Kuwait announced that it will list its shares on the “Premier Market” following the Capital Markets’ Authority’s approval and trading of the company’s shares commenced during September 2020, under the ticker symbol “BOURSA”.

The company will be classified under the “Financial Services” sector, bringing the total number of companies on the exchange to 174, while the number of listed companies in the “Premier” Market rises to 20 companies. Boursa Kuwait’s position as a regional leader among stock exchanges is reinforced with the listing of the bourse on the local stock exchange, continuing a series of firsts for the company. It is the first stock exchange to be at least 90% owned by the private sector in the Middle East and the first government entity in Kuwait to successfully undergo privatization.

The listing is considered the fruit of the company’s labors and continuous efforts to institute long-term reforms on both the company level and in the Kuwaiti capital market since its establishment, as well as introducing products and services compatible with the best-inclass international standards, all in line with the company’s vision to develop a liquid and transparent financial market.

Boursa Kuwait saw a net profit of KD 5.63 million for first half of 2020 while the company’s total assets came in at approximately KD 41.7 million. Total operating expenses were KD 3.12 million while total operating revenue came in

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at KD 6.77 million. The results reflect the strength of the operational model and the strategy in place as well as the company’s financial solvency, which have allowed it to overcome the challenges of the Covid-19 pandemic and deliver an exceptional performance. Boursa Kuwait Chairman Mr. Hamad Mishari Al-Humaidhi said, “Boursa Kuwait’s listing today marks a historic milestone for the company as it enters the next phase in its growth and development. We are proud of our journey, which has cemented us as the crown jewel of the Kuwaiti capital market and is indeed the model of a Kuwaiti success story, which in turn will contribute to the elevation of the country regionally and internationally.

I would like to take this opportunity to commend Boursa Kuwait’s Board of Directors and Executive Management, with their solid structure consistent with the nature and activities of the company, and their efforts to develop a liquid, reliable and sound capital market that services all relevant asset classes, focusing on the interests of both issuers and investors through excellence in everything it does.”

The listing was also hailed by Boursa Kuwait CEO Mr. Mohammed Saud Al-Osaimi, who highlighted the company’s operational excellence. “The listing of Boursa Kuwait on the “Premier Market” marks another milestone in the company’s journey of excellence. Apart from the major enhancements that

Business News for the MEA region

Mohammad Saud Al-Osaimi, Boursa Kuwait, Chief Executive Office

the company drove as the engine of growth and development, the company also witnessed substantial growth in its own operations and continues to work towards strengthening the infrastructure and operational model.

Boursa Kuwait has cemented its position as a leading stock exchange that pioneers innovative approaches to market development.”

Since its inception, Boursa Kuwait has worked effortlessly to create a credible exchange built on efficiency and transparency, creating a liquid capital market, a progressive exchange platform and developing a comprehensive set of reforms and enhancements that has allowed it to compete on an international level.

Finance

Levelling the playing field for female entrepreneurs in Africa Mobilising support for female entrepreneurs is a necessary factor in improving livelihoods and transforming the global economy. Studies have shown that, if female entrepreneurs received as much support as their male counterparts, the global economy could experience a boost of $5 trillion. However, the sobering reality is that not enough is being done to enable female start-ups to thrive.

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frica is the only region globally where more women choose to become entrepreneurs than men. However, despite this startling statistic, nowhere near enough is being done to support these females who are determined to establish successful companies. Many face significant obstacles and structural inequalities, with over half of female entrepreneurs citing a lack of financing and limited access to technology in preventing them to scale their businesses.

According to the World Economic Forum’s (WEF) 2020 Gender Gap Report, women’s economic empowerment is actually worsening, estimating that closing the gender gap in economic participation and opportunity is now 257 years away. This is 55 years longer than what was reported in 2019.

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An unequal playing field for women Small businesses already have a hard time securing financing, but this funding gap is more pronounced when it comes to female entrepreneurs. The African Development Bank estimates a $42 billion funding gap for women entrepreneurs across the African continent. This gap exists at various levels of entrepreneurial funding – including bank loans, angel investment, venture capital and private equity – despite there being more female entrepreneurs in sub-Saharan Africa than men.

The WEF Gender Gap report states that women cite lack of access to finance as the largest obstacle to entrepreneurship, by far. When we take a closer look at tech start-ups, only two percent of $725.6 million in venture capital funding was invested in women-owned

Business News for the MEA region

(or led) businesses in Sub-Saharan Africa throughout 2018. This is astounding when research has shown that if female-led businesses are supported, be it through mentoring or financial support, they outperform their male counterparts, achieving higher revenues and offering a 35 percent return on investment.

Yet, the issue that we have witnessed with female entrepreneurs is two-fold: not enough financial support is available, and women often lack access to networks and mentorship. Time and time again, studies have shown that having access to a strong network is a critical element in the long-term success of female-led businesses. The Harvard Business Review found that stronger and broader networks are linked to smaller gender gaps in business sustainability and improved access to a wide variety of funding sources.

I n o rd e r to s u p p o r t fe m a l e entrepreneurs, we must look at tackling both elements to incite real change, from empowering females to believe in their ideas through a positive network to providing them with the financial capabilities to grow a sustainable business.

Taking action At Standard Chartered, we decided to tackle these inequalities head on with our Women in Tech Programme (WiT).

Running across five markets in Africa and the Middle East, WiT provides

DESPITE UNFAVOURABLE CONDITIONS, FEMALE ENTREPRENEURS HAVE BEEN FIGHTING THEIR WAY TO THE TOP THROUGH INCREASED SUPPORT FROM INTERNATIONAL ORGANISATIONS, LOCAL GOVERNMENTS, AND CORPORATE SPONSORS.

O lga Arara-Kimani, Regional Head, Corporate Affairs and Brand Marketing, Standard Chartered Bank women-led start-ups with a platform to grow their business and support their aspirations. Since its initial launch in Kenya in 2017, we have seen continuous growth of female entrepreneurs coming through the accelerator programme, with the bank providing over $500,000 to various programme cohorts in markets including Nigeria, Pakistan, Bahrain and the UAE. Along with financial backing, we provide training, mentoring and access to a wider network of other companies for these entrepreneurs. In just over three years, WiT has become one of the continent’s leading women in technology incubators, aligning with calls for more diversity in technology and providing more opportunities for women to develop entrepreneurial and leadership excellence.

We recognise that there is a growing tech ecosystem across the continent and that many start-ups are embracing the benefits of technology. WiT is a unique programme in that it not only addresses two of the key problems facing female entrepreneurs, but also tackles the digital-gap many female-led entrepreneurs experience.

It’s not surprising that most female entrepreneurs we encounter through the

programme want or are using technology to grow their business.

A prime example of a digitally savvy WiT cohort member is Bismart Insurance, a web insurance aggregator based in Kenya. Channelling a solution-oriented shift to digital, Bismart Insurance was set up to address and resolve key pain points customers faced when purchasing insurance, including a lack of disclosure of essential information and the absence of a consolidated platform for insurance products. Coupled with its participation in the first WiT Kenya cohort and vision to expand into the digital insurance market, Bismart Insurance efficiently scaled its operations and saw over 100 purchasers by the end of 2017.

We have seen a surge in start-ups that are looking to expand their businesses through eCommerce and digital channels take part in the accelerator programme.

The WiT programme is a demonstrated contributor to start-ups with promising business models, leveraging its breadth of expertise and resource to drive and scale their operations. Chief of these start-ups is Chefaa, an Egyptian, AI-powered digital platform that enables chronic patients to order, schedule and refill their recurring medications regardless of location or income. Chefaa participated in the WiT MENA cycle in 2019 and has, to date, raised over $6 million in funding and is in the process

of closing an additional $2.5 million in funding. Chefaa is now the second most downloaded application on the Egyptian App Store and the company has subsequently increased their monthly orders by 300 percent since taking part in the WiT programme.

In Conclusion Despite unfavourable conditions, female entrepreneurs have been fighting their way to the top through increased support from international organisations, local governments, and corporate sponsors.

However, adjusting attitudes towards female entrepreneurs in Africa is essential and this is something that we must build on through our networks.

It is also crucial to identify and support policy changes that can facilitate the development of female-led businesses.

This is where private sector plays a vital role in providing the necessary training, mentorship, and seed funding that would otherwise be difficult to receive elsewhere. As female-led businesses provide an important flow of capital for local communities, every effort should be made to support and grow these businesses, in service of countless families and communities throughout Africa. Most importantly, we need to inspire girls and young female adults with a business dream to have the confidence to make it happen and know that they will be aided both financially and socially.

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Finance

NCB and SAMBA join forces to create a new Saudi banking champion The new bank will be headquartered in Riyadh with Ammar Abdullah Alkhudairy proposed as Chairman, and Saeed Mohammed Al-Ghamdi as Managing Director and Group CEO

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he National Commercial Bank (NCB) and Samba Financial Group (Samba) recently announced that they have entered into a binding agreement to merge. If approved by shareholders and regulators, the merger will bring together two highly complementary banks to create Saudi Arabia’s largest bank with the ability to generate significant value for customers, shareholders and the overall Saudi economy.

Both banks will continue to operate independently until shareholders have voted on the merger and all legal requirements and regulatory approvals are met. The deal is expected to conclude in the first half of 2021. NCB will be the surviving entity into which Samba will merge. New shares in NCB will be issued to Samba shareholders by way of a capital increase.

The Merged Bank’s headquarter will be in Riyadh.

The merger will create a new Saudi banking champion with more than SAR 837 billion ($223 billion) in assets. The new larger bank will support the Kingdom’s landmark deals and mega projects with its strong capital base and lending capabilities. The merger will fuse NCB’s position as the largest institutional lender in the Kingdom with Samba’s leading transaction banking and corporate finance capabilities.

Leadership and Governance Subject to the receipt of relevant regulatory and shareholder approvals, the board of

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Saudi Arabia’s trade and capital flows with the region and the rest of the world. Our ambition is to create a national champion that can facilitate the transformation envisaged under Vision 2030 and create a pioneer for next-generation banking services that nurtures tomorrow’s industry leaders.”

the combined bank will be increased from 9 to 11 members: The new leadership will assume their new roles after the conclusion of the merger in the first half of 2021, subject to approval of the nominations by the new Board of Directors. Further announcements on the future structure and the direct reports to the CEO will be made in due course. The two banks have jointly appointed a branding consultant to review the branding of the future bank which will be revealed in due course.

There will be no immediate change for customers as a result of today’s announcement. Both banks will remain independent and separate and both will continue to operate a business as usual service until the merger has completed.

NCB Chairman, Saeed Mohammed Al-Ghamdi commented: “Saudi Arabia is undergoing a historic transformation with Vision 2030. Such a transformation requires a robust financial services sector, especially highly capitalized, resilient banks that can fund economic development, as well as support

Business News for the MEA region

Ammar Abdullah Alkhudairy, Chairman of Samba said: “Our merger with NCB will create a local leader and a regional powerhouse that can unlock considerable value for shareholders, provide exceptional banking services for the people of Saudi Arabia and help local entrepreneurs capitalize on opportunities for domestic and international business growth. This merger process marks the start of a new era for Saudi banking supporting the realization of many Vision 2030 goals. We are focused on making sure that the combined and larger bank comes together seamlessly to serve our customers, partners, investors and talent across both teams."

THIS MERGER PROCESS MARKS THE START OF A NEW ERA FOR SAUDI BANKING SUPPORTING THE REALIZATION OF MANY VISION 2030 GOALS.

Hospitality

Radisson Hotel Group launches hybrid solutions Radisson Hotel Group’s Hybrid Meetings combine the best of meeting in person and virtually, offering a reliable image, sound, and video conferencing system, dual screens, wireless presentation clicker, high-speed internet connection, and more

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s the world continues to a d a pt to “ n ew n o r m a l s” and ongoing travel limitations, meeting and event organizers can now choose to offer virtual participation options and hybrid formats that allow for small local gatherings, while also broadcasting to remote attendees and satellite locations.

Tim Cordon, Area Senior Vice President, Middle East & Africa, Radisson Hotel Group said “We are thrilled to announce the launch of our Hybrid Meeting Solutions, which directly addresses some of the meetings and event challenges the pandemic has created globally. With the various government-imposed restrictions, traveling to meet in person has become somewhat impossible. However, as a hotel group with hospitality at its core, we certainly understand the importance of connections and the need to adapt and exercise flexibility, which has led to the creation and introduction of Hybrid Solutions.”

Radisson Hotel Group has partnered with Zoom, the leader

in modern enterprise video communication, to provide a smooth experience for their clients’ virtual and hybrid meetings and events.

Specialist in-house event teams will assist clients in delivering a range of events from hybrid multi-site meetings to broadcasting events, ensuring events are efficient, effective, and engaging, with flawless execution and no audio / visual problems.

the facilities of a state-of-the-art office with the comforts of a superior hotel room to create a productive, dedicated, and quiet workspace for the business traveler, leisure guest, and local day-guest alike. Hybrid Rooms offer easy connectivity to s e c o n d - s c re e n d e v i c e s , v i d e o conferencing facilities, wirelesse n a b l e d ke y b o a rd , m o u s e a n d l o u d s p e a ke r, p r i n t i n g s e r v i c e s , stationery, unlimited coffee and tea, access to on-site wellness facilities, and many other benefits.

Radisson Hotel Group’s Hybrid Solutions are currently available across 50 select hotels in Europe, the MiddleEast, and Africa, to better meet the rapid lifestyle changes of today’s travelers and their evolving expectations when they stay, work, and meet in our hotels. The roll-out will continue through 2020 and 2021.

Hybrid Rooms perfectly combine

Tim Cordon, Area Senior Vice President, Middle East & Africa, Radisson Hotel Group

Health and safety first: Radisson Hotels Safety Protocol More than ever, Radisson Hotel Group’s highest priorities are the health and safet y of its guests and employees. In May, the Group partnered with SGS, the world’s leading inspection and certification company, to implement the Radisson Hotels Safety Protocol, which ensures the highest hygiene standards and st re n g t h e n t h e G ro u p’s ex i st i n g rigorous sanitation guidelines. These guidelines include hand sanitizing stations at all entrances, the use of Personal Protective Equipment ( P P E ) a n d p rote ct i ve s c re e n s , enhanced cleaning frequency, and comprehensive staff training.

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Hospitality

IHG brings Hotel Indigo to the Sultanate of Oman The Hotel Indigo brand will make its GCC debut in Downtown Dubai this month followed by the Sultanate of Oman.

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nterContinental Hotels Group (IHG), recently signed a Management Agreement with Redhat Al Jabal LLC to debut its global upscale boutique brand, Hotel Indigo, in Oman. Hotel Indigo will be located in Jabal Akhdar, 2,000 meters above sea level in proximity to the most scenic mountains in the country. The hotel will offer 360 degrees uninterrupted views of the mountains with access to a wide range of leisure and cultural activities such as mountain biking, hiking and cave exploring.

Commenting on the signing, Pascal Gauvin, Managing Director, India, Middle East & Africa, IHG, said: “ We are pleased to announce the signing of our first Hotel Indigo in Oman in partnership with an esteemed company such as Redhat Al Jabal LLC . Hotel Indigo is a unique brand that allows every individual property to draw inspiration from the local surroundings and offer an immersive and authentic experience to guests.

Combined with an excellent location, I am confident Hotel Indigo Jabal Al Akhdar will be a destination on its own and will be a popular choice amongst international, regional and domestic visitors alike . This month, we are also opening doors to Hotel Indigo Dubai Downtown – the first Hotel Indigo in GCC. The brand is a great fit for the region - it caters to new guest segments that are visiting the Middle East

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and are looking for a more individualistic experience and want to feel immersed in the destination they are visiting.

He added: “The hospitality industry has faced the biggest challenge in its history following the global outbreak of Covid19. Underscoring industry confidence, this signing is an encouraging sign and reaffirms a strong mid to long term outlook for the sector. Oman has always been known for its hospitality and we remain committed to meaningfully grow our footprint here and bring more hotels and brands to key locations in the country to offer world-class hospitality to guests coming to the region.”

Mr. Ammar Al Suleimani, Executive Director, Redhat Al Jabal LLC, added: “ We are pleased to bring the first ever global boutique hotel brand, Hotel Indigo, to a

Pascal Gauvin, Managing Director, India, Middle East & Africa, IHG

Business News for the MEA region

distinct location in the Sultanate of Oman.

In addition to the brand’s uniqueness, freshness and appeal for the market, our confidence in this project comes from IHG’s wide experience, expertise in the industry and reputation as one of the leading and most trusted hotel companies in the world. We are excited to open our doors in early 2022 and look forward to offering a combination of authentic, unique and safe experiences to our guests visiting from all parts of the world.”

Established in 2004, Hotel Indigo now has a presence in more than 20 countries with over 120 hotels, and over 100 hotels in the pipeline. IHG currently operates 96 hotels across 7 brands in the Middle East, including: InterContinental, Crowne Plaza, Holiday Inn, Holiday Inn Express, Staybridge Suites, voco and Six Senses with a further 41 in the development pipeline due to open within the next three to five years.

HOTEL INDIGO IS A UNIQUE BRAND THAT ALLOWS EVERY INDIVIDUAL PROPERTY TO DRAW INSPIRATION FROM THE LOCAL SURROUNDINGS AND OFFER AN IMMERSIVE AND AUTHENTIC EXPERIENCE TO GUESTS

Real Estate Investments

Shari’ah Compliant Real Estate Investment

RIGHT TO LEFT: Tim Haywood – General Manager, Regional Vice President, the Walton Group of Companies, Maya Marissa Malek – CEO, Amanie Advisors, Wan Hafizi Wan Halim – Consultant, Amanie Advisors

Shari’ah compliant real-estate investments are creating more options for portfolio diversification under the umbrella of Islamic Finance. Tim Haywood, General Manager and Regional Vice President at the Walton Group of Companies, a global real estate asset management company and Amanie Advisors, an Islamic Banking and Shari’ah Finance advisory consultancy, explain how and why this opportunity is growing in the region.

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Real Estate Investments

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hat has been the driver behind Walton’s Shari’ahcompliant offering? And how does your product stand out in the industry?

We have offered a Shari’ah compliant product for around 3 years, so we were already aware of the importance of the endorsement for the Islamic Finance markets where our product is offered. Following the restructuring of that product towards the end of last year, with a focus on cash flow generation for investors, it was important to ensure that the new model was also compliant. Over the same period of time, we established our first Middle East office, so we felt it was important to work with a globally recognized and respected Shari’ah Supervisory Company such as Amanie Advisors.

Walton is a market leading real estate asset management company, offering fully packaged land investment solutions, in partnership with publicly traded U.S. homebuilders, to deliver superior returns to investors with annual cash flow distributions.

Could you tell me more about your clients that are using your Islamic offering, and what kind of feedback have you received since the endorsement from Amanie Advisors?

Our clients are generally referred to us through Wealth Managers and distribution partners, so the Shari’ah endorsement has opened opportunities for those business partners to expand their potential client pool and offer an alternative real estate product to their clients. As the demand for Islamic finance products increases across our regions in the Middle East and South East Asia, we hope to be able to fill a gap in the alternative real estate investment area, thus providing a greater choice to investors who see the U.S. housing market as a significant investment opportunity.

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The feedback since the endorsement has been very positive, and although the news has only just been released publicly, we are already receiving enquiries from different regions. Our business partners have seen the endorsement as a sign of our commitment to our expansion across all markets.

What key factors did the Amanie Shari’ah Supervisory Board take into consideration when endorsing this as a Shari’ah compliant investment product?

Ms. Maya Malek, CEO of Amanie Advisors points out that their Supervisory Board takes into consideration various factors when reviewing a particular product for Shari’ah approval.

These include but are not limited to, fulfillment of all Shari’ah requirements and principles within the context of the product, adherence to international Shari’ah standards, alignment with market practices within the Islamic finance industry and sound

Tim Haywood – General Manager, Regional Vice President, Walton International Group

South East Asia (Singapore) for over 25 years and clients in markets such as Malaysia and Indonesia, it was an obvious move to ensure that Walton’s offerings were available to the Muslim community. We opened our Dubai office in 2019 to support our business partners and clients in the GCC region and we felt that having the endorsement would further strengthen the appeal of our product range beyond the

ISLAMIC FINANCE IS A RAPIDLY GROWING SECTOR ALREADY WORTH APPROXIMATELY $2.4 TRILLION GLOBALLY, ACCORDING TO S&P GLOBAL RATINGS. legal documents which reflect the Shari’ah structure and requirements accurately. It is important for the product to be both Shari’ah compliant and commercially viable.

Why is this endorsement so important to Walton and why do clients in the Middle East choose to work with your organization?

Islamic Finance is a rapidly growing sector already worth approximately $2.4 Trillion globally, according to S&P Global Ratings. With a presence in

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expatriate client base, and open a wider distribution network for our existing and new products.

Clients choose to work with Walton because of our unique way to research, acquire, structure, and exit near term development land investment projects, providing genuine asset diversification for their investment portfolio. Clients also recognize the strength of our strategic relationships with the largest national homebuilders in the U.S., providing investors with peace of mind as they seek to secure stable cash flow

over the medium term.

How is this investment product expected to benefit investors and what are its advantages over other real estate / regional investments?

Our Exit Focused Pre-Development Land Investment (EFPDLI) product has been designed with cash flow generation in mind. Walton, in conjunction with third party real estate analysts, researches and acquires near term development land and immediately secures publicly traded homebuilder interest in the form of a signed Letter of Intent. Following the homebuilder due diligence period and the subsequent signing of an Option Agreement, investors benefit from annual cash flow distributions as the development lots are delivered to the homebuilder on an agreed, scheduled phased takedown. The U.S. residential housing market is experiencing significant growth, following a decade of recovery after the 2008/9 crisis, and Walton provides a unique opportunity for investors to participate and benefit

from the growing demand for new, affordable homes, without having to become homeowners themselves.

Our product competes with the other Shari’ah compliant investments, such as the Islamic Sukuk market for example, which recently issued a 10year Sukuk offering a 2.7% profit rate.

We believe that our product can offer a significantly higher rate of return for investors that can complement their portfolio and provide diversification.

With many GCC countries having currency pegs to the USD, investing in a USD asset removes the currency risk exposure they may face when investing in other markets or assets.

What are the biggest challenges facing your business this year? And what is your outlook for the last quarter of the year?

Undoubtedly the Covid-19 pandemic which has challenged most businesses but has also provided opportunities for others. Our focus is on the U.S. homebuilding industry which has been

a definite bright spot within the U.S. economy. Homebuilding activity is extremely strong and in a historically low interest rate environment, homebuyers are seeking affordable housing in growth markets, which offer a larger, new home with work from home space incorporated. As a result, we believe we will have a strong final quarter and a significant pipeline of exit activity.

In terms of growing business in the region, what do you have planned next?

Just recently we have launched two new land investment products which are in the process of going through Shari’ah compliance review with Amanie Advisors. We hope that these will also receive their endorsement in the near future. We are committed to the Middle East and believe that with our three land investment products, we will cater to an ever-wider audience including HNWI, Wealth Managers, Family Offices and Institutional investors.

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Lifestyle The Bombardier Global 6000

The comfort of efficiency Private aviation is largely regarded as a luxury but as Empire Aviation describes here, it can be a key component in the efficient, secure and successful conduct of business

A

private jet offers the ultimate luxury travel experience. Empire Aviation makes private aviation a personalised experience whether you are an aircraft owner or a charter client.

A private jet charter flight follows no rigid schedule with missions tailored to suit any travel need or specific itinerary, including multiple destinations.

So, your charter flight is unlikely to be cancelled or delayed because it flies to your personal travel schedule.

Ease and efficiency Checking-in is an equally personal and relaxed experience. Security and safety are paramount, and bags still need to be scanned and all travelling passengers

EXECUTIVE DIRECTOR AND PUBLISHER Kenneth Mitchen ken.mitchen@mea-finance.com COMMERCIAL DIRECTOR Nap Estampador nap.estampador@mea-finance.com Tel : +971 50 100 5488 SALES DIRECTOR Andrew Cover andrew.cover@mea-finance.com Tel: +971 50 931 3236

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must pass through security, but it is fast and without the queues of commercial flights. You really can arrive for your flight 15 minutes before departure.

Quick and easy check-in and no risk of lost bags, private jet charter always makes good business sense in terms of flexibility, efficiency and privacy.

Businesspeople travelling together on a charter flight can use the time productively to conduct meetings and review business information with the assurance of privacy. It means you can be in the right place, at the right time to complete deals effectively and efficiently. A private jet can often reach remote locations and get you to meetings faster including multiple destinations in a single working day.

EVENTS AND MARKETING MANAGER Cris Balatbat crissyb@mea-finance.com Tel: +971 58 594 4818 SENIOR DESIGNER Florante Magsakay f.magsakay@mea-finance.com Tel: +971 52 570 1811 ADMIN AND FINANCE MANAGER Marilyn Nainque marilyn@mea-finance.com Tel: +971 58 5025836

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The interior of the Global 6000

A refined environment Private jet charter is not always about business. The hushed tones and calm efficiency onboard are clear signs that you are in experienced, professional hands and experiencing one of life’s greatest personalised luxuries – perhaps the ultimate luxury.

From the quiet, relaxed settings of the private terminal, it is just a short stroll (or transfer by limousine) to your aircraft, which awaits with all the bespoke comforts, thoughtful attention to detail and dedicated personal service of the finest luxury hotel suite. In fact, some of the world’s most desirable and exotic destinations and luxury hotels are now combining stays with private jet charter.

Private aviation meets the demands of discerning travelers who expect the highly personalised level of service associated with the ultimate luxury travel experience, whether for business or pleasure, or even a combination of the two.

WEB ASSISTANT Marie Orayan web@mea-finance.com FEATURE CONTRIBUTORS: Adrian Murdoch, Mushtak Parker, Walter Sebele editorial@mea-finance.com

Dubai office: #404, Building B, Al Saaha Offices, Old Town Island Burj Khalifa District PO Box 487177, Dubai, UAE Email: info@mea-finance.com

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