Gulf Business - September 2022 by Motivate Media Group

SCAN TO WATCH A EXPERIENCEREALITYAUGMENTEDVIASMARTPHONEHONORREVIEWHANDS-ONOFTHE70ASPECIAL BD 2.10 KD 1.70 RO 2.10 SR DHS2020 SPOTLIGHT ON THE REGION’S DYNAMIC CONSTRUCTION LANDSCAPE SPECIAL REPORT gulfbusiness.com / SEPTEMBER 2022 P.60 TIMELESS APPEAL: Charting the growth of iconic watch brand Breitling P.70 BEYOND 100 AND MORE: Bentley to go fully electric by 2030 NO SHORTCUT TO SUCCESS THE CEO OF SEVEN CENTURY REAL ESTATE BROKERS, NAGHMEH SHEIKHOLESLAMI, ON RESILIENCE, RECOVERY AND THRIVING IN DUBAI

Gulf Business

An insight into the news and trends shaping the region with perceptive commentaryandanalysis

gulfbusiness.com September 2022 3

The CEO of Seven Century Real Estate Brokers, Naghmeh Sheikholeslami, talks about trends in the real estate market, and how her company has leveraged them for growth

From strength to strength

CONTENTS / SEPTEMBER 2022

The brief

On an upbeat note

The construction sector in the UAE, Saudi Arabia and Qatar is showing steady growth

Sheikha Fatima bint Mubarak, chairwoman of the General Women’s Union, president of the Supreme Council for Motherhood and Childhood, supreme chairwoman of the Family Development Foundation, and the ‘Mother of the Nation’, on the occasion of Emirati Women’s Day on August 28

The SME Story

HEAD OFFICE: Media One Tower, Dubai Media City, PO Box 2331, Dubai, UAE, Tel: +971 4 427 3000, Fax: +971 4 428 2260, motivate@motivate.ae DUBAI MEDIA CITY: SD 2-94, 2nd Floor, Building 2, Dubai, UAE, Tel: +971 4 390 3550, Fax: +971 4 390 4845 ABU DHABI: PO Box 43072, UAE, Tel: +971 2 677 2005, Fax: +971 2 677 0124, motivate-adh@motivate.ae LONDON: Acre House, 11/15 William Road, London NW1 3ER, UK, motivateuk@motivate.ae Follow us on social media: Linkedin: Gulf Business Facebook: GulfBusiness Twitter: @GulfBusiness Instagram: @GulfBusiness Cover: Freddie N. Colinares Editor-in-chief Obaid Humaid Al Tayer Managing partner and group editor Ian Fairservice Group director Andrew Wingrove andrew.wingrove@motivate.ae Editor Neesha Salian neesha.salian@motivate.ae Digital editor Zubina Ahmed zubina.ahmed@motivate.ae Tech editor Divsha Bhat divsha.bhat@motivate.ae Contributing editor Zainab Mansoor editorial.freelancer@motivate.ae Senior art director Olga Petroff olga.petroff@motivate.ae Art director Freddie N. Colinares freddie@motivate.ae Photographer Ahmed Abdelwahab

59 Lifestyle 72

Production manager Binu Purandaran

Interviews with entrepreneurs and insights from experts on how the regional SME ecosytem is evolving

Group marketing manager Joelle AlBeaino joelle.albeaino@motivate.ae

Production supervisor Venita Pinto

Chief commercial officer Anthony Milne anthony@motivate.ae

Group marketing manager Dominic Clerici dominic.clerici@motivate.ae

A green agenda: Bentley is gearing to go all electric by 2030 p.70

“I hope that each and every woman works to reach her dreams and achieves excellence to help in supporting their families and communities, and so, I would like to express my appreciation to all women who have shown dedication in driving their countries’ development and bringing about a brighter future”

Publisher Manish Chopra manish.chopra@motivate.ae

Sales executive Sonam Sharma sonam.sharma@motivate.ae

CONTENTS / SEPTEMBER 2022

Time and again: Breitling’s CEO on the brand’s enduring appeal p.60

Le Mans the word: Saudi race car driver Reema Juffali reveals her dream p.68

gulfbusiness.com4 September 2022

General manager – production S Sunil Kumar

Climate Change 06 Electric Vehicles 07 Investment 09 Calev’s Newsroom 10 Alan’s Corner 12 SEPT A balancing act

22 The

the

Lean teams can mean less support staff and more administrative responsibilities. Here’s how to deal with situation without feeling overwhelmed p.13 Brief

A STEEP DROP

IMAGES/JOBALOUGETTYILLUSTRATION:

This confluence of extreme weather events brought on by climate change has sent cotton prices soaring by as much as 30 per cent. Earlier this year, they touched the highest level since 2011, squeezing the margins of clothing suppliers around the world and threatening to raise the costs of everything from t-shirts, to diapers, to paper andIncardboard.acallwith investors last month, Children’s Place CEO Jane Elfers described the surge in cotton prices as “a huge, huge problem for us” and said the company was hoping to see some relief in the second half of the year.

A BLEAK PICTURE

The decline in global supplies has become so steep

The Brief / Climate Change

xtreme weather is wreaking havoc upon virtually all of the world’s largest cotton suppliers.InIndia, the top-producing country, heavy rains and pests have cut into cotton crops so much that the nation is importing supplies. A heat wave in China is raising concerns about the upcoming harvest there. In the US, the largest exporter of the commodity, a worsening drought is ravaging farms and is set to drag production to the lowest level in more than a decade.

ANALYSIS

The world’s cotton supply keeps shrinking, hit by drought and heat Bearing the brunt

Meanwhile, US output is set to plunge 28 per cent in the season that began this month. The US expects production to hit the lowest level since the 2009-2010 season, sending stockpiles to near-historic lows, because of a drought that has become so extreme that the US government is rationing water from the Colorado River. Together, the US and Brazil account for half of the world’s cotton exports.

HIT HARD

gulfbusiness.com6 September 2022

And now Brazil, the second-largest exporter, is battling extreme heat and drought that have already cut yields by nearly 30 per cent.

The outlook for Brazil is anything but helpful. The drought there has already dried up an estimated 200,000 metric tonnes of supply, according to Abrapa, a group representing growers. With the nation’s 2021-2022 harvest close to complete, production is now seen at 2.6 million tonnes or less.

Bom Futuro group, one of Brazil’s largest cotton producers, accounting for about 10 per cent of the nation’s planted area, has seen yields fall 27 per cent compared with the previous season. Julio Cezar Busato, a grower in Sao Desiderio, Bahia state, has su ered from a similar decline. Dryness is reducing the number of cotton bolls, making them lighter across all of the country’s main growing regions, he says.

BOM FUTURO GROUP, ONE OF BRAZIL’S LARGEST COTTON PRODUCERS, ACCOUNTING FOR ABOUT 10 PER CENT OF THE NATION’S PLANTED AREA, HAS SEEN YIELDS FALL 27 PER CENT COMPARED WITH THE PREVIOUS SEASON

Busato, who also serves as the head of Abrapa, sold 75 per cent of what he expected to harvest in advance and ended up largely missing out on the big surge in prices. Because of the weather, he only produced enough to meet his alreadyexisting obligations.contractual“Icould have made a mountain of money,” he says

All charged for growth

than $4.8bn has been pumped into the electric-vehicle (EV) charging industry this year – a combination of roll-out announcements, debt financing, investment and acquisitions. And this is just the deals that have disclosed financial figures.

Car-charging investment soars, driven by electric vehicle growth and government funds

Large corporates are competing for merger and acquisition (M&A) targets with pure-play charging companies they may previously have acquired, and new competitors are cropping up. Infrastructure investment funds’ appetite is increasing, as they see EV charging as a maturing asset class.

The weather has created a secondary headache for the cotton buyers of the world. Untimely rains in regions including Australia, Pakistan and even Brazil have also diminished the quality of the stock, says Peter Egli, director for Plexus Cotton.

Bloomberg

that it’s overshadowing demand headwinds. The US government and analysts have been projecting a drop in demand due to a slide in clothing purchases and slowing economies, especially in Europe and Asia. And yet all signs point to “much higher” cotton prices in the coming months with crops shrinking, says Andy Ryan, senior relationship manager for Hedgepoint Global Markets in Busato,Nashville.who also serves as the head of Abrapa, sold 75 per cent of what he expected to harvest in advance and ended up largely missing out on the big surge in prices. Because of the weather, he only produced enough to meet his already-existing contractual obligations. “I could have made a mountain of money,” he says.

So as not to be blindsided for another season, Brazilian farmers are set to increase their cottongrowing areas by 100,000 hectares to 1.7 million hectares for the 2022-2023 season, with plantings beginning in January.

IMAGES/AXLLLLGETTYILLUSTRATION: The Brief / Electric Vehicles $4.8bn INDUSTRYEV-CHARGINGINTOINVESTEDTHE

Now that most of the current crop there has been sold, farmers are looking to start hedging the 2023 harvest more aggressively. “We don’t want to lose Asian markets that we gained recently,” says Busato.

gulfbusiness.com September 2022 7

NEW PLAYERS CONTINUE TO POP-UP, DRIVEN BY THE FAST GROWTH AND HUGE AVAILABILITY OF GOVERNMENT FUNDS. VOLTERA IS AN EXAMPLE OF A NEW COMPANY LAUNCHED JUST THIS MONTH WITH BACKING FROM UNDERFUNDINFRASTRUCTURE,EQTAWITHEUR77BNMANAGEMENT

BNEF

New players continue to pop-up, driven by the fast growth and huge availability of government funds. Voltera is an example of a new company launched just this month with backing from EQT Infrastructure, a fund with €77bn under management.

Explosive growth is still required to go from singledigit billions of investment today to hundreds of billions worth of investment over the next two decades.

BNEF expects cumulative investment in charging to exceed $360bn globally by 2030 and over $1tn by 2040 to meet the needs of the electric vehicle fleet. More than $1.4tn is needed in a net-zero scenario where the entire vehicle ﬂeet would be on track to be electric by 2050. Around 60 per cent of this investment is expected to be used for putting DC fast chargers between 50 and 1,000 kW in the ground.

Blink Charging acquired fellow US competitor SemaConnect for $200m and the UK’s EB Charging for about $23.4m. Wallbox announced two acquisitions recently: installer Coil and circuit-board manufacturer Ares Electronics.

TOININVESTMENTCUMULATIVEEXPECTSCHARGINGEXCEED $360bn $1tn+ 20302040 GLOBALLY IMAGES/JADAMPROSTOREGETTYILLUSTRATION:

BloombergNEF estimates that over 73 per cent of investment in the public chargers that were put in the ground globally in 2021 went to ultra-fast charging. While the sub-sector continues to dominate investor funding this year, the whole EV charging supply chain is attracting investment.

To keep moving the needle on investor conﬁdence and meet requirements over the coming decades, charging companies will have to show they can scale at pace proﬁtably. The cost base for EV charging is still evolving and business models have yet to be proven.

Bloomberg

ROBUST OUTLOOK

Slow-charging operators, so tware platforms, installers, charging component manufacturers and

wireless charging companies have all received investment. Financers and larger charging companies are si ting through the EV charging field to find the right pieces to fill their technological and regional gaps.

Some of the biggest roll-outs this year include a EUR1bn ($1bn) announcement by BP and Iberdrola for 11,000 fast chargers across Europe, and a $650m investment across the US by Blackrock, Daimler Truck and NextEra Energy Resources. Electrify America also got a $450m injection from parent Volkswagen and Siemens for its US charging network.

Large corporates including Siemens (Electrify America and WiTricity), Shell (Cable Energia and NWG Charging), ABB (InCharge Energy, Numocity, Chargedot) and Schneider Electric (EV Connect) are great examples. But smaller companies are also stepping up their M&A game.

gulfbusiness.com8 September 2022 The Brief / Electric Vehicles

French energy storage and EV charging provider NW Storm raised €300m, fast-charging manufacturer Freewire raised $125m, and charging operator EVCS raised $69m. Major UK charging companies have also been on a spree, with Raw Charging and Gridserve raising GBP250m ($301m) and GBP200m, and Instavolt securing GBP110m of debt funding.

ATTRACTING INVESTMENT

Venture capital continues to attract capital, finds Zainab Mansoor

On strong ground

AREIMAGES/WEGETTYILLUSTRATION:

“Global assets under management (AUM) increased by 38 per cent between the second quarters of 2020 and 2021,

reaching an all-time high of $6.3tn. VC was the fastest growing strategy within PE, in terms of assets under management,” the report noted.

Despite several macroeconomic factors such as rising inflation and the effects of the Covid-19 pandemic challenging economies around the world in recent times, venture capital (VC) has managed to navigate the tide“Venturediligently.capital continued to attract capital on the back of a decade of strong performance,” states the McKinsey Global Private Markets Review 2022. Venture capital has outperformed other PE (private equity) sub-asset classes in eight out of the last ten vintage years (2009-2018), it added.

CLOSER TO HOME

The Brief / Venture Capital

GOING AHEAD

gulfbusiness.com September 2022 9

In the UAE, fintech was the top industry during H1 2022 in terms of the number of deals, equalling 28, and by funding, raising $234m, the MAGNiTT report added.

With investors harbouring a risk appetite and leaning towards change, this sub-asset class seems poised to leverage opportunities for further growth.

ANALYSIS

DURING H1 2022 IN TERMS OF THE NUMBER OF DEALS

CONTINUING EFFORTS

Despite a new set of global challenges this year, the VC space – based on its historical performance - may look to continue its winning streak. As the McKinsey report puts it: “The demand for VC investments has been increasing in recent years, leading VC-focused firms to inject significant capital into early-stage companies.”

half of the year, while Bahrain recorded $116m. Over H1 2022, the UAE recorded the highest number of transactions with 85 deals. Meanwhile, Saudi Arabia ranked as the second-most transacting VC market in the Middle East and North Africa region in terms of number of deals (79), rising 36 per cent year-on-year. Egypt and Bahrain recorded 78 and 10 deals, respectively.

IN THE UAE, FINTECH WAS THE TOP INDUSTRY

A plethora of initiatives have been under taken in recent months to continue the momentum. In April this year, Dubai announced a fund for startups with a cap ital of approximately Dhs370m, aimed at creating an integrated funding system. In June, Bahrain’s Al Waha Fund of Funds, a government-led initiative said that it had invested in LionBird III, an $85m digi tal health-focused fund to assist regional startups access the US healthcare market. The Saudi Venture Capital Company also announced an investment in Saudi-based Sadu Capital’s fund earlier this year to nurture high-growth startups in the king dom and the MENA region.

Regionally, the sub-asset class performed impressively as well. In the first half of the year, the UAE’s VC ecosystem accrued 47 per cent of its FY 2021 funding, equalling $699m, a MAGNiTT report, sponsored by Emirates Development Bank (EDB) revealed. VC investments in Saudi Arabia, the largest GCC economy, reached $584m in H1 2022, rising 245 per cent compared to the first six months of 2021. Egypt roped in $307m in VC investments in the first

“Saudi Arabia ranked as the second-most transacting VC market in the Middle East and North Africa region in terms of number of deals (79), rising 36 per cent year-on-year”

July 10, Israel welcomed its one millionth tourist for 2022. The visitor was given a special welcome, personally greeted by Tourism Minister Yoel Razvozov in a ceremony at Ben-Gurion International Airport. The cause for celebration was clear; Israel hit the one million mark just four months a ter li ting the strict coronavirus restrictions on foreign entry that had reduced tourism to a virtual trickle over most of 2021, hoping to return quickly to its pre-pandemic rate of over four million a year.

The implementation last October of a mutual visafree travel agreement – the ﬁrst signed between Israel and an Arab state – has helped streamline that process. And last February, Israel and the UAE signed an agreement to boost cooperation in the tourism sector, including collaboration on market promotions, expanding mutual input into tourism industry education and vocational training, facilitating the exchange of travel information in both the public and private sectors, and holding joint regional events for tourism professionals.

ISRAEL HIT THE ONE MILLION VISITOR MARK

NewsroomCalev’s Building ties through tourism

Israel must develop effective marketing campaigns for Emirati travellers, emphasising the appeal of a destination that combines rich historical attractions with the dynamism of a young, innovative nation

impactful. Despite coronavirus concerns and restrictions, thousands of Israelis have travelled to the UAE over the past two years, with normal tra c expected to average 50,000 tourists a month, taking the dozens of weekly direct ﬂights now available between Ben-Gurion Airport and both Dubai and Abu Dhabi, via such airlines as El Al, Etihad, Emirates, Israir and Wizz Air.

Israel’s tourism industry has also benefitted from the country’s new ties with the Gulf. The precedent set by the Abraham Accords was a factor in encouraging Saudi Arabia to finally authorise – in July – the opening of its airspace for all air carriers, including Israel. The move has enabled Israeli airlines to cut hours of flying time not only between Tel Aviv

The impact of the Abraham Accords has also beneﬁtted tourism to the Gulf beyond the Israeli market. The new warm relations between Israel and the UAE has helped expand the lure of the UAE to international Jewish travellers who previously may have been dissuaded by the lack of relations between the nations, and the dearth of facilities in the Gulf for religiously observant Jewish tourists. Dubai has moved quickly to accommodate the latter, expanding the number of kosher eateries to nearly a dozen, and o cially licensing three synagogues to act as houses of worship for both the local Jewish community andTourvisitors.operators are now o ering “Jewish Heritage’’ trips to the Gulf, along with non-proﬁt groups such as the US-based “Visions of Abraham’’ that see such trips as vehicles to build coexistence ties between Jews, Muslims and Christians.

NOVOKHATNIAIMAGES/KATERYNAGETTYILLUSTRATION:

In signing the Accords, both nations, along with fellow signatories Bahrain and (subsequently) Morocco, were counting on tourism as a key factor in building economic ties, and perhaps the sector that would develop the quickest.

GROWING TRAFFIC

But there was another signiﬁcant factor in this arrival; the one millionth tourist was Belinda Desoyo Lee Marcelo, a resident of the UAE, a nation that prior to the signing of the Abraham Accords less than two years earlier, had no o cial tourist tra c with Israel.

Tourism and related businesses account for some 7 per cent of Israel’s gross domestic product, and nearly double that number for the UAE. The chance of a “peace tourism’’ boom between Israel and the Gulf o ered tantalising prospects to signiﬁcantly add to those ﬁgures.

JUST FOUR MONTHS AFTER LIFTING THE RESTRICTIONSCORONAVIRUSSTRICT ON FOREIGN ENTRY

Calev Ben-David, anchor of the nightly news programme, The Rundown, on i24NEWS

gulfbusiness.com10 September 2022 The Brief / Calev’s Newsroom

Certainly on the side of Israelis, the lure of the UAE, in particular Dubai, has been immediate and

THOUSANDS OF ISRAELIS TOEXPECTEDNORMALTWOOVERTHETRAVELLEDHAVETOEMIRATESTHEPASTYEARS,WITHTRAFFICAVERAGE

and the Gulf, but many of its key Asian routes to popular destinations as India and Thailand.

The Israeli government moved quickly a ter the signing of the Abraham Accords to upgrade its investment in the country’s pavilion at Expo 2020 Dubai, transforming it into an impressive showcase for its various attractions for an audience of millions of visitors who were likely being exposed to them for the ﬁrst time.

gulfbusiness.com September 2022 11

50,000TOURISTSAMONTH

including the Al-Aqsa Mosque and Dome of the Rock shrine, should prove to be major attractions for visitors from the Gulf; but again, Israel must ﬁnd a way to coordinate with local Palestinian authorities in developing an e cient process, enabling Muslim pilgrims to visit these religious and politically sensitive sites with minimal interference and maximum security.

Another beneﬁt provided by the Emirates for Israel’s tourism industry has been its use as a marketing platform, in a region that due to politics provides limited opportunities elsewhere.

CHALLENGES FACED

The one piece of this picture still lacking is a ﬂow of Emirati tourists visiting Israel anywhere near those heading in the opposite direction. Israeli tourism o cials say their target is 100,000 visitors annually from the UAE, but so far that ﬁgure seems more aspirational, even with the revival of international travel. The Muslim holy spots in Jerusalem’s Old City,

Finally, Israel must develop e ective marketing campaigns for Emirati travellers, emphasising the appeal of a destination that combines rich historical attractions with the dynamism of a young, innovative nation, including such areas as Ja a and Haifa that feature some of the most progressive Arab communities found anywhere in the region.

The leaders of Israel, the UAE, Bahrain and Morocco have taken the ﬁrst big leaps needed to bridge the gaps between their nations; but solidifying these new-born ties will require deep people-topeople encounters between their respective populations, and mutually beneﬁcial tourist trade will likely be the best vehicle to make that happen.

on capital when he also says, “We know that climate risk is investment risk. But we also believe the climate transition presents a historic investment opportunity”. I’m okay with this, as there doesn’t have to be a contradiction between doing the right thing and making money. In this example, it’s the portrayal of responsible leadership that inspired me.

If you can’t deliver due to obstacles outside your control, then ﬁnd your voice and speak up. Provided your supporting arguments are reasonable and valid, you cannot be accused of being di cult. If however it’s a case of ‘you won’t do it’, then consider if this role is right for you.

Alan O’Neill, author, keynote speaker and owner of Kara, specialists in culture and strategy

Today I also want to spare a thought for great followers, namely middle managers. In my experience, I ﬁnd that they o ten have the toughest job in an organisation. They are the bu er between the boardroom and the front line. They are the ones who have to execute the strategies on the ground, by rallying their people and keeping them motivated to deliver to a standard, on time and onMorebudget.oten than not in large organisations, you can see a corelation between three sets of data. KPIs, customer feedback and employee feedback. For those divisions

Irecently

gulfbusiness.com12 September 2022 The Brief / Alan’s Corner

Why did it fail? It was a combination of factors that included creative market trades and dodgy accounting practices. But all of that was facilitated by bad leadership, an insider boy’s club and a terrible culture, where leaders were motivated to do wrong for high reward. Recently, I wrote a piece in this column about leaders. I shared my ‘Leader’s 6-pack’ on what it takes to be a strong leader. I was really surprised at the number of mails, texts and calls I received. It clearly excited a lot of people. But I’m happy to say that this pandemic has certainly shone a light on those great leaders that have empathy for Larryothers.Fink is CEO of Blackrock, the world’s largest investment management company. In his letter to the CEOs of the companies Blackrock invests in, he advised them to be clear about their plans for sustainability. From January to November 2020, investors in mutual funds invested $288bn globally in sustainable assets. “I believe that this is the beginning of a long but rapidly accelerating transition,” he said. I appreciate some will read this with cynicism saying that he is motivated by return

There is a fun video on YouTube that shows a lone guy dancing at a music festival. He is le t on his own for some time until he is joined by the ‘ﬁrst follower’ a ter which the crowd forms. In a nutshell, while leaders are essential, it highlights the important role of great followers. We can’t all be leaders, but we can all show up and be great followers.

that score highest in all three, much of the recognition for that deservedly goes to the localThoseleader.followers get direction from their bosses. They make sense of what they’re asked to do and they then interpret it in an appropriate way at local level. In being good leaders they are also being great followers. They take accountability for their brief and just get on with it.

SOMSUKIMAGES/NUTHAWUTGETTYILLUSTRATION:

read The Smartest Guys in the Room, The Amazing Rise and Scandalous Fall of Enron, written by Bethany McLean and Peter Elkind. It outlines how corporate greed and scandalous activities caused a level of cheating that was unprecedented. Enron was the energy giant that collapsed in 2001, also causing the demise of Arthur Anderson, one of the Big ﬁve accounting ﬁrms at the time.

When you get good direction from your line manager, be a great follower by being accountable and deliver

THE LAST WORD

TIPS ON HOW TO BE A GREAT FOLLOWER

Alan’s Corner Follow the leader

When you get good direction from your line manager, be a great follower by being accountable and deliver. In my role over the last 30 years, this is the one characteristic that I believe is in short supply. Whether we are leaders, managers or whatever, we all have a duty to take ownership for our part in the jigsaw puzzle and connect our pieces into the bigger picture.

If you are unsettled by being asked to do something that is inappropriate, then stop for a second and think. Measure what you have been asked to say or do against the agreed values of the organisation. This enables you to push back in an objective way rather than with your own subjective viewpoint. If your company does not have a set of agreed values, then rely on a common set of values that include decency, respect and honesty. Who can argue against any of those? I also appreciate that situations like these can be extremely stressful. If you need help, ﬁnd a trusted conﬁdante. But do it quickly rather than procrastinate.

LEADERS NEED FOLLOWERS

herever you cast your eye amongst knowledge workers, there has been a diminishment of support staff over the past few decades. Previously a knowledge worker spent their precious time focusing on doing work and creating value with highly trained skills. Now they spend their time battling computer sys tems, scheduling meetings, organising their own travel bookings, filling out time sheets, completing arcane expense forms, learning the latest software, completing the latest mandatory training, struggling with MS Office, and above all sending and receiving email and instant messaging all the time. The result: A decline of expert knowledge and a loss of value to the organisation. To illustrate this point, I would like to refer to a piece of research published in the 1990s. It was in the jour nal, National Productivity Review by econ omist Peter G Sassone.

Sassone’s analysis demonstrated that the organisations he studied could reduce their staffing costs by 15 per cent by hiring more support staff, thereby enabling their pro fessionals to become more productive. For Sassone, this analysis shone a light on why there was stagnating productivity in the early personal computer age. “Indeed, in many instances firms have used technology to decrease, rather than to increase, intel lectual specialisation,” he writes.

When you are really tuned-in on doing work, not talking about it, then you will find that eight hours a day is more than enough. In fact, you will probably get your work done in five to six hours.

If however, you are working in an envi ronment where you don’t have control of how you manage your work and are not given the support staff to help you focus on what you need to do, then I would sug gest try the following. Separate your time into two categories: expert and support. For example, 12pm-1pm and 3pm-5pm are support hours.

A balancing act

Instead, the way to boost productivity is to work on fewer things, but do each one with greater quality and accountability. I have personally found that by attending to what is necessary and doing it really well, the quality of my work has improved, the demand for my work has gone up, and my performance according to my managers is better. I know this only happened when I made the conscious effort to do less but do it to depth. It’s profoundly satisfying to be able to consistently produce valuable output and it is just as fulfilling to be given the room to do so by enlightened managers.

He argued that when you remove sup port staff, skilled professionals become less intellectually specialised, as they spend more time on administrative work that computers made just easy enough for them to handle on their own.

KAFANOVIMAGES/VASILYGETTYILLUSTRATION: The Brief / Productivity

At all other times you behave like a subject matter expert and attend only to skilled work that creates value. Do not respond to any support or admin tasks, such as emails or attend administrative meetings. In your “support” hours, behave like a dedicated support worker who is trying to make you in your “expert” per sona as efficient as possible.

Consequently, you now need more profes sionals to produce the same amount of val uable output for the market, because they have fewer free cognitive cycles to under take specialised work. As the profession als have significantly higher salaries than support staff, replacing support staff with professionals is actually more expensive to the organisation.

Making a case for it

gulfbusiness.com September 2022 13

Technology steered us down a path of less expert work and increased overload. Reversing this requires a return to more expertise and use of support staff and structures to handle everything else. The way we have been processing work needs to change, so that we ‘use’ technology and not be ‘used’ by it.

Between 1985 and 1991, Sassone stud ied 20 departments at five major US cor porations, paying specific attention to the impact of the arrival of new office tech nologies such as personal computers.

Highly paid knowledge workers are now doing more administrative work, as companies cut support staff

Since he wrote his paper in the 1990s, the situation has worsened, with more support staff being removed. We think we are advancing (saving money) because of fewer support staff but we are not consid ering the impact of less value being gener ated to the bottom line. I am not arguing for a return to legions of support staff, but we should recognise the reality that highly paid knowledge workers are now spend ing more time doing administrative work and this is resulting in a loss of value to the

COMMENT

Rehan Khan, principal consultant for BT and a novelist

“Few” is always better

Constant “always-on” connectivity is harming us individually and eroding value within organisations. It’s about time we changed this.

organisation. Solving a technology problem by introducing more technology, such as artificial intelligence and machine learn ing is I would say rather naïve.

Sovereigns in the Middle East also recognise that to achieve sustainable returns, there needs to be a positive narrative –reputation matters. The regulatory environment has prompted many sovereigns to take a close look at their ESG position and get in front of their own story about implementation and making a di erence.

Zainab Kufaishi, head of Middle East and Africa and senior executive officer at Invesco

The fast-growing adoption of active ESG management and impact investment strategies reflects an evolution of sovereign ESG plans – and a robust response to world events

This has prompted not only challenging questions for sovereign investors regarding the robustness of their ESG implementation

2017, 11 per cent of central banks and 46 per cent of sovereign wealth funds had an ESG (environmental, social and governance) policy in place. By 2022 those numbers had reached 47 per cent and 75 per cent, respectively.

LIMITATIONS REVEALED

To counter such challenges, a fast-growing number of sovereign funds have started to consider more closely the e ectiveness of their ESG strategies and are shi ting resources to those that deliver the best results in terms of measurable outcomes that can be veriﬁed and tracked over time.

The good news is that data shows that sovereign investors believe that they can develop strategies to overcome these issues. This includes greater use of active management, impact investing, measurable carbon targets and creative central bank strategies – such as green and sustainable bonds.

Not only are we now seeing three-quarters of sovereign funds incorporating ESG principles into their wider impact investment objectives, but we see a shi t towards more active implementation of ESG strategies. Analysis in the latest Invesco Global Sovereign Asset Management Study (IGSAMS) addresses some of the core reasons – including the impact of the crisis in Ukraine.

Such measures not only make it easier for sovereigns to enhance their reputations by making the right long-term environmental, social and governance decisions, but deliver proven value within the context of todays and tomorrow’s global geopolitical tensions.

The Brief / ESG

MAIN CHALLENGES

Measurable outcomes are driving widespread adoption of ESG strategies

gulfbusiness.com14 September 2022

Much of the problem comes from a lack of regulatory clarity and poor data, two factors that make it di cult for development sovereign funds to quantify the true impact of ESG strategies, leaving them open to accusations of greenwashing and subsequent reputational damage. To counter these challenges, many respondents to the IGSAMS research are moving toward a more active, critical and di erentiated view of ESG strategies.

Much of the problem comes from a lack of regulatory clarity and poor data, two factors that make it di cult for development sovereigns to quantify the true impact of ESG strategies”

The crisis in Ukraine has highlighted the limitations of pure passive ESG strategies: it is di cult to be an active and responsible owner if you are investing passively. For example, sovereign investors that have passive exposure to emerging markets indices hold Russian assets in their portfolios equal to the index weight of the country. As such, these investors have been le t holding Russian assets that have since declined dramatically in value or tradability due to the implementation of sanctions.

This perspective also explains why there are growing fears of reputational problems associated with accusations of ‘greenwashing.’ IGSAMS identiﬁes the root of these concerns.

This development is not surprising; IGSAMS shows that 81 per cent of respondents consider a lack of clear regulatory standards to be either a moderate or signiﬁcant challenge to their ESG success.

at a country level, but deliberation on the advantages of an active, risk-based approach to ESG investing.

HUAWEI CLOUD

Everything as a Service

Falcon Global Capital was set up by an experienced group of investment, property and financial experts. The firm prides itself on transparency and exclusivity. We deliver on what we promote, without exposing our clients to unnecessary risks. We specialise in prime proven “bricks and mortar” assets, as well as investments in up-and-coming artists and companies for our more discerning clients. We have built solid and enduring relationships based on trust with our clients, and it is a key factor in making us a preferred firm for select investors.

How are investors creating a balanced portfolio in these uncertain times?

From enabling investment in high-end watches and exclusive art, to luxury real estate and rare cars, Falcon Global Capital has been delivering value and bespoke services to its growing list of discerning clients in the UAE, says its CEO Somia Khawaja

Our open architecture strategy removes all the boundaries on traditional investment options for our clients. If they

Customising investments, delivering exclusivity

With central banks increasing interest rates, and inflation going up, those spending their savings are doing okay, however, that’s not how the majority of the world lives from day to day. While the

Tell us about the company and its key milestones.

Talk us through the “open-architecture”company’sapproach.

want to invest in art and have a favourite artist, we source the artwork for them. If they like a certain type of property, but want it in a specific location, we can identify and arrange it for them as well. We also help them invest in the “latest trend”, company or IPO, if they want. We don’t and never will put our clients in a box. Each product and each investment is tailored to what the client needs, wants and likes, be it a Falcon Global Capital product or one belonging to third parties.

The US Federal Reserve has hiked interest rates, with additional hikes on the cards. How has that affected investor sentiment?

Creating a balanced portfolio is exactly

wealthy are enjoying the increased interest rates, but demanding more from investment firms such as ours, the everyday working professional, with an increased cost of living to cover, has to now more than ever, make every dollar count. What we, at Falcon Global Capital, are seeing is people looking for new ways to make money. This could be a novice investor or a wealthy, experienced client with a great portfolio. Gone are the days when people simply hand over their hard earned cash because of the name above the door. People want ideas, a strategy, and some form of consistency and dependency in a world, which is currently experiencing uncertainty.

What key investment trends have you witnessed in the last 12-18 months?

Over the past 12-18 months, we’ve noticed

Fine beverages and classic art will always have their place. Until very recently, the luxury watch market was seemingly and almost unbelievably, unstoppable. However, one asset class that Falcon Global Capital remains very involved in is classic, super and rare cars. Not only because they are a passion of ours and we know the market well, but also because there is a level of desire and nostalgia that stirs the emotions of our clients in a changing world where the petrol engine is due for retirement, and electric is the new buzz world. With connections all over the world, we’ve been keeping our clientele of motor enthusiasts very happy, with returns to match.

Any investment firm worth investing in, in 2022, will have a dedicated user and client platform, which can either be a minefield, an unused application, or a dependable source of information. Like our approach to business, we like our platform to be clear, simple and accurate. Everything that a client needs can be provided through the platform, anything more can be discussed with a “real” person. This is important to us; we never want technology to stand in the way of a conversation that could lead in so many more positive directions.

What are the key facets of the company’s investment technology platform?

Which alternate investments have gained traction in recent times?

Fine beverages and classic art will always have their place. Until very recently, the luxury watch market was seemingly and almost andwithremainsFalcononeunstoppable. unbelievably,However,assetclassthatGlobalCapitalveryinvolvedisclassic,superrarecars”

BRAND VIEW

that, it’s being balanced. Even though we understand that cryptocurrencies are the latest hype and many people have made a serious amount of money from investing at the right time; putting all your eggs into this volatile basket is never advisable. We know this all too well. Having a hedged and therefore, balanced and calculated portfolio offers consistency and safety. We do not run a “get-rich-quick” scheme, and we do not want to lose our clients’ money where it can be avoided. If you must invest in high-risk, high-return products, such as digital currencies, then these must be financially balanced with stable, proven tangible assets that deliver and are proven to deliver consistently.

a distinct change in the sentiment of our investors, both old and new. Previously, clients were only interested in return and security, which is totally understandable for a passive investment. These days, we’ve noticed that our clients are actively interested in everything they invest in, particularly when it comes to assets such as non-fungible tokens (NFTs) and art. Many clients, with no prior knowledge or interest in art are now interested in NFTs. Perhaps they have seen their children playing Minecraft or dealing in Roebucks, but either way, its interesting to see how passive investment can promote an interest in a trend or topic.

gulfbusiness.com18 September 2022 The Brief / Infographics INNOVATION ACROSS THE ISLAMIC ECONOMY IS GATHERING PACE, PARTICULARLY ACROSS THE ISLAMIC FINANCE SPACE Opening new avenues = Malaysia 81 = Saudi Arabia 80 +1 Indonesia 65 -1 United Arab Emirates 60 = United Kingdom 50 = Bahrain 46 = Kuwait 45 +4 Singapore 41 +1 Qatar 41 +4 Hong Kong 39 -2 Pakistan 37 = United States 36 +5 Bangladesh 36 -4 Jordan 36 +5 Türkiye 36 -2 Oman 34 -2 Australia 33 +3 Nigeria 33 +11 Brunei 32 TOP COUNTRIES20 BY KEY:INDEXFINTECHISLAMICGLOBAL(GIFT)SCORES OIC NON-OICCOUNTRYCOUNTRY = NO CHANGE TO 2021 +# INCREASE TO 2021 -# DECREASE TO 2021 0 20 40 60 80 100 THE FINTECHSCURRENTSUBTOPBY$17917.9%TOISIN$79(OIC)COOPERATIONOFORGANISATIONSIZEFINTECHISLAMICMARKETINTHEISLAMICWASbn2021,ANDPROJECTEDGROWATCAGRTObn20265SECTORSFORISLAMIC 01. CROWDFUNDING 02. PAYMENTS 03. CHALLENGERBANKING 04. ROBO-ADVISORY 05. ALTERNATIVEFINANCE The index applies a total of 19 indicators across ﬁve di erent categories for each country. These categories include talent, regulation, infrastructure, Islamic ﬁntech market and ecosystem and capital

045321 LEGEND: 5 - Very important 4 - Somewhat important 3 - Neither unimportant / important 2 - Somewhat unimportant 1 - Very unimportant gulfbusiness.com September 2022 19 Malaysia, UAE and Indonesia are leader tofromArabiaMeanwhile,hubs.Saudiismovingemergingleaders Islamic Fintech Hubs MatrixMaturityDeterminingfactors in Islamic fintechs’ choice of headquarters Regional Overview: Market sizes ($m) Saudi Arabia Malaysia Indonesia KuwaitNigeriaOmanBangladeshJordanEgyptQatar Bahrain Brunei PakistanIran Türkiye UAEDORMANTMATURING EMERGINGLEADERSBUBBLE SIZE = Islamic Fintech market size for 2021 High Volume, Low Momentum Low Volume, Low Momentum 2021-26)CAGR,Size(MarketGrowthFintechIslamic High Volume, High Momentum Low Volume, High Momentum environmentregulatoryLocalindustryfiLocalntechcustomerstoProximitytargetmarketofofexperienceKnowledge/foundersthelocal etc.)accelerators(incubators/ecosystemsupportingLocal accessLocal to capitalindustryfiIslamicLocalnance ofavailabilityLocaltalent industryficonventionalLocalnance 4.6 4.3 4.1 4.1 4 3.8 3.7 3.7 3.5 = No change to 2021 +# Increase to 2021 -# Decrease to 2021 (p) = projected | (e) = estimated | CAGR = compound annual growth rate SOURCE: GLOBAL ISLAMIC FINTECH REPORT 2022, PRODUCED BY DINARSTANDARD AND ELIPSES 2021 (e) 2021 (e) 2021 (e) 2021 (e)2026 (p) CAGR15% SAUDI ARABIA $26,027.3 $52,341.3 2026 (p) CAGR16.9% UNITED ARAB EMIRATES $4,759.1 $10,368.2 2026 (p) 20.3%CAGR KUWAIT $3,748.1 $9,520.6 2026 (p) CAGR19.9% OMAN $768.5 $1,905

The Brief / Sustainability INTERVIEW

The upcoming months are particularly exciting for AMESA with the COP27 being held in Egypt. Climate change impacts and its increasing vulnerability on food systems is felt even more in the African continent. I believe that the ‘Africa COP’ presents a golden opportunity for us as a region to champion the climate change agenda by sharing best practices and driving concrete action that extends beyond

We hear you are attending COP27. What are you most looking forward to?

IMAGES/SI-GALGETTYILLUSTRATION: 11,000 ACRES OF LAND PEPSICO AMESA HAS SUCCESSFULLY ADOPTED REGENERATIVEPRACTICESAGRICULTURAL ACROSS

A crucial part of the pep+ ‘Positive Agriculture’ pillar is to spread regenerative practices for earth restoration across the land equal to our entire agri cultural footprint, to enable our efforts to sustainably source key crops and ingredients, and to improve the livelihoods of people in our agricultural supply chain

What has been your approach to championing sustainability in the AMESA region? Which area has been of utmost importance to you?

So far, we have successfully adopted regenerative agricultural practices across 11,000 acres of land and have improved the livelihoods of more than 13,000 people in our agriculture supply chain. Since 2018, we have invested over $5.7m in our flagship ‘She Feeds the World’ programme which is reaching out to 880,000 farmers and their families. The programme, especially supporting women farmers, is improving economic resilience, food security and nutritional wellbeing.

In 2021, 67 per cent of our direct potatoes were sourced sustainably through over 40 demonstration farms in AMESA. Hundred per cent of the palm oil we sourced in 2021 is RSPO certified. Since 2018, PepsiCo Foundation has invested $5.5m in the AMESA region, distributing meals to over 30 million people. Programmes like the UN’s World Food Programme, Sub Saharan Africa’s Pioneer Foods School Breakfast Programme and other local initiatives are helping PepsiCo in AMESA close the gap in food insecurity.

Delivering on our vision of ‘Winning with PepsiCo Positive (pep+)’ means becoming a more sustainable company by striving for a more sustainable food system. Sustainability doesn’t exist in a vacuum; it is a part of our DNA. The launch of pep+ last year, our end-to-end transformation strategy, guides what we do and how we do it to create growth and shared value with sustainability and human capital taking centre stage. As part of pep+, we drive action across three key pillars: Positive Agriculture, Positive Value Chain, and Positive Choices.

and our communities, with a heavy focus on economically empowering women by 2030 in this sphere.

From its long history of water stewardship and positive agriculture initiatives to supporting female farmers and food programmes, Eugene Willemsen, CEO – PepsiCo Africa, Middle East and South Asia (AMESA), shares how the company is enabling sustainability and a green economic transformation across the region

gulfbusiness.com20 September 2022

Pursuing a net zero future

On the energy front, we have pledged to achieve net zero emissions by 2040, one decade earlier than called for in the Paris Agreement. Our target aligns with the ‘Business Ambition for 1.5°C’ pledge, which we signed in 2020, joining other leading companies committing to set science-based emissions reduction targets in line with limiting global warming to 1.5°C above preindustrial levels. PepsiCo AMESA has driven the climate agenda within its manufacturing operations by achieving 12 per cent energy use reduction in 2021 vis-à-vis 2015. Additionally, PepsiCo AMESA has installed solar panels on 17 manufacturing sites and signed MOUs with multiple partners for power purchase agreements (PPA) in di erent markets in 2021.

SO FAR, PEPSICO AMESA HAS AVOIDED THE USE OFAPPROXIMATELY 5 BILLION LITRES WATER IN 2021 COMPARED TO

Throwing light on the critical food-water-energy nexus, we understand that agriculture is the focal point of your sustainability efforts. What has been your approach to water and energy?

We are demonstrating circularity in the AMESA region by unlocking rPET in nine countries as well as by diverting over 107,000 tonnes of plastic and over 19,000 tonnes of multilayered plastic (MLP) ﬁlms from the landﬁlls of across seven countries.

2020

OVER67%40 OF OUR THROUGHSUSTAINABLYSOURCEDPOTATOESDIRECT

FARMSDEMONSTRATIONINAMESA

the COP. I am proud of our marquee regenerative agriculture initiatives as well as food and water security programmes in Egypt and SubSaharan Africa that are transforming lives making them stronger, better, healthier, and empowered.

focusing on at-risk locations and improving wateruse e ciency. Since 2021, PepsiCo AMESA estimates that it has improved water e ciency by a historic 50 per cent in company-owned high-water risk sites across the region (excluding Pioneer Foods facilities in Sub Saharan Africa). Additionally, it is estimated that in 2021, PepsiCo in AMESA has replenished 2.5 billion litres of water through community partnership projects in six high risk watershed areas through with science-based interventions. PepsiCo Foundation in AMESA has invested more than $8m in safe water access programmes, impacting about 27 million people’s daily lives since 2018.

With our long history of water stewardship, we are working towards making every drop of water go as far as possible. As a foods and beverages company, we are acutely aware of the critical role water plays in the food system and our ambition is to become ‘Net Water Positive’ by 2030. To achieve this, we have adopted an approach to watershed management that includes improving water-use e ciency across our value chain: on farms and in manufacturing facilities; replenishing water and improving the health of the local watersheds that are most at risk and where we operate; and increasing safe water access for communities that face water insecurity, including scarcity and unsafe water sources. We strive to understand the water challenges at a local level, especially in high-water risk areas, and support collaborative solutions that address the speciﬁc needs of the watershed and the communities that depend on it.

gulfbusiness.com September 2022 21

“ON THE ENERGY FRONT, WE HAVE PLEDGED TO ACHIEVE NET ZERO EMISSIONS BY ONE DECADE EARLIER THAN CALLED FOR IN THE PARIS AGREEMENT. OUR TARGET ALIGNS WITH THE BUSINESS AMBITION FOR 1.5°C PLEDGE, WHICH PEPSICO SIGNED IN 2020”

Additionally, I’m proud of our ﬁrst Lay’s RePlay pitch launched in South Africa’s Tembisa to drive the circular economy and provide support to disadvantaged communities. The pitch used more than three million chip packages to form the underlayer beneath the turf. Each ﬁeld is created with a shockabsorbing layer, which is formed when reclaimed chip packs are converted into rubberised pellets. More than just a planet positive pitch, Lay’s RePlay placed a strong emphasis on including community members and local organisations throughout the planning, construction, and maintenance phases of each pitch, with the goal to develop programming that can address social issues impacting each community, while fostering safe access to the sport of football.

What about your efforts in creating a circular economy?

With our plans to mobilise sustainable innovation and entrepreneurship, we believe that COP27 will serve as a key moment to li t the region’s proﬁle as a global leader in sustainability and green economic transformation.

Eugene Willemsen

So far, we have avoided the use of approximately ﬁve billion litres of water in 2021 compared to 2020 by changing the way farmers irrigate crops,

2040,

adopted digital transformation strategies or are embarking on them. And the shi t to the cloud is a crucial component of thatBihmaneprocess.believes that organisations recognise how cloud gives them the agility, cost-e ciency and ﬂexibility they need to leverage data, reduce costs, accelerate decarbonisation, or facilitate

“Like every service organisation, we base success on our ability to stay close to customers’ needs,” says the newly appointed CEO Nourdine Bihmane. “We will provide the continuity of Atos’ existing business lines, with the additional beneﬁts of a sharper focus on our technological strengths and markets, o ering more agility to serve our customers better.”

Accelerating digital transformation

CEO,Bihmane,NourdineAtos

igital technologies and data are shaping the world we live in, and the Middle East has long understood the strategic value of both. In the region, customers desire quick, simple, seamless mobile and online services. Moreover, the constant wave of emerging technologies – from automation and artiﬁcial intelligence to cloud-enabled new business models with a strong data economy - is now emerging.

DDATA

As the Middle East continues to strengthen its digital infrastructure and

FEATURES / TECHNOLOGY gulfbusiness.com22 September 2022

MODERNISATION FOR BUSINESS INNOVATION

Atos’ Nourdine Bihmane on how the company is committed to providing high levels of service to its customers while also future-proofing its business

accelerate innovation, players like Atos are committed to providing continued high levels of service to their customers while also preparing for the future.

Fuelled by the Covid-19 pandemic, most companies in the region – across multiple industries – have either already

Keeping up with the competition in this new world will require organisations to modernise their old IT infrastructures and legacy systems.

cloud requires robust cybersecurity to protect data that’s shared across public and private cloud environments at an acceptable cost. “The native security controls of cloud providers are useful, but they have limits like misconﬁguration or unauthorised access. In today’s hybrid multi-cloud environments, enterprises must integrate all their security controls into one overall security posture.”

The challenge is getting the best value from the cloud while retaining sovereignty and ﬂexibility. With the cloud market maturing, many are investing in the hybrid cloud as the best option”

With organisations seeking a trusted, managed security partner in their ﬁght against growing cyberthreats, Atos’ aims to continue working in partnership to secure customer data along their digital journey. The global cybersecurity company that is ranked the top position worldwide in managed security service by Gartner will leverage global partnerships, local expertise and its proprietary solutions to better and more e ciently protect and govern critical data – personal data, intellectual property, ﬁnancial data, and more.

WORLD-CLASS DIGITAL

However, many businesses ﬁnd the cloud migration process to be extremely intimidating, particularly in light of the growing regulatory obligations as well as technological and security concerns.

“We’re trusted to manage our customers’ most complex and critical projects, with a track record in innovation. For example, we’re proud to have been the lead integrator for the International Olympic & Paralympic Committees, orchestrating, securing and transforming all their IT systems worldwide for the last 30 years. And with Paris 2024 on the horizon, a lot is coming up.”

BIHMANE CLEAR AND MANAGING INFRASTRUCTURES”

LEADS TECH FOUNDATIONS (ATOS) WHICH INCLUDES 52,000 EMPLOYEES SERVING OVER 1,200 CUSTOMERS. “OUR MISSION IS

The company is currently studying its separation into two publicly listed companies – Tech Foundations (Atos) as a leader in managed infrastructure services, hybrid cloud, digital workplace and technology services, and Evidian as a leader in the digital transformation, big data and cybersecurity

markets. Bihmane leads Tech Foundations which includes 52,000 employees serving over 1,200 customers. “Our mission is clear – designing, building and managing world-class digital infrastructures. We will support our clients’ challenges by evolving from core infrastructure operations to engineering companies’ digital backbone. We have strategic partnerships with hyperscalers for hybrid cloud and orchestration, and we’re positioned as a leader in edge and sovereign cloud. As a result, we can deliver more immersive data-driven employee experiences and next-generation collaboration; as a recognised decarbonisation leader, we can help customers reduce their carbon footprint with green IT.”

The emerging cyberthreats you can’t ignore

FEATURES / CYBER SECURITY gulfbusiness.com September 2022 23

Meanwhile, the new digital landscapes are expanding cyberattack surfaces with threat actors constantly evolving their tactics. Bihmane observes how the hybrid

“Atos’ strategy, rather than a binary vision of digital sovereignty, has been to create a range of risk controls to support industries and governments deploying hybrid and multi-cloud strategies regarding data segregation, infrastructure, applications, security and operations. This enables organisations to fully secure and manage their data in the edge-to-cloud continuum, in line with the highest jurisdictional requirements,” comments Bihmane.

– DESIGNING, BUILDING

We’re trusted to manage our customers’ most complex and critical projects, with a track record in innovation. For example, we’re proud to have been the lead integrator for the International Olympic & Paralympic Committees, orchestrating, securing and transforming all their IT systems worldwide for the last 30 years. And with Paris 2024 on the horizon, a lot is coming up”

remote work at scale. “They have a choice between three types of cloud: private, public and hybrid. The challenge is getting the best value from the cloud while retaining sovereignty and ﬂexibility. With the cloud market maturing, many are investing in the hybrid cloud as the best option,” he explains.

Moving forward, Atos’ core objective is to focus on its customers and align its priorities and strategy to customers’ needs. “As we look to the future, we must maintain customer intimacy and good quality of service. We are committed to continuous delivery while readying for post-separation, focusing on our strengths, insights into customers’ challenges, and working in trusted partnerships to overcome them. With our 112,000 Atos associates, I greatly look forward to this future.”

“Our launch partner companies in the UAE supported our research and development phase, enabling us to develop a ﬁne-tuned app with sophisticated features to fully optimise day-to-day business operations.”

This solution aims to tackle traditional

challenges associated with a built environment caused by independent and individual o erings for core activities like leasing, facilities management, customer service and payments. This fragmentation o ten makes

venture, PropEzy, has been gaining ground for its innovative propositions that leverage advanced technology to serve the real estate sector’s diverse needs.

roptech is disrupting and transforming the real estate industry across the globe, and in particular, the UAE, which is seeing a tremendous upsurge in the property sector. As more and more investors consider buying property in the UAE, property technology tools are streamlining processes, eliminating the challenges associated with buying a home or commercial properties, and enhancing the experience for agents, brokers and customers alike. Solutions using augmented and virtual reality, artiﬁcial intelligence, data analytics and blockchain are driving the rise of proptech and the digital transformation of the real estate sector.

FEATURES / TECHNOLOGY gulfbusiness.com24 September 2022

ONE DIGITAL PLATFORM, MULTIPLE SOLUTIONS

A cloud-based so tware-as-a-service (SAAS) platform, conceptualised in the UAE, PropEzy facilitates the residential and commercial real estate industry globally to e ectively reduce costs and increase return on investment for both asset owners and operators. Describing it as an ‘all-in-one’ solution, Uros Trojanovic, divisional CEO of EAST-O Holdings, says: “PropEzy is a pioneering platform in the industry that provides a consolidated solution to e ciently streamline and lower operational outgoings.

FULFILLING A MARKET NEED

Uros HoldingsofdivisionalTrojanovic,CEOEAST-O

A ﬁrm that is making its presence felt in this space is EAST-O Holdings. The company is the technology arm of Eltizam Group, the region’s leading physical asset management company and investor in the built asset environment. EAST-O Holdings’ latest

PropEzy is a powerful software platform for digitising real estate operations, enhancing the customer experience and providing real-time data and insights for better decision making

Trojanovic says, “We have partnered with industry leaders in the IOT, building energy and smart building sectors to jointly develop new products that will deliver greater value to our clients. We hope to be able to make some announcementsin this space very soon.”

it challenging for property and community managers to provide a seamless end-to-end service to customers.

operations. This solution enables an e cient system for payments and a community channel where customers can receive updates, and check and book amenities among other features.PropEzy Workplace is transforming how employees interact with their workplace. It uses innovative technology to keep employees secure, enabling a seamless and speedy ﬂow of communication across all verticals in anPropEzyorganisation.Property is a platform that manages customer interaction, leasing and related functions.Theplatform has a digital dashboard that generates periodical reports and analytical data and insights that can support managers with decision making.Customers can access the platform through a mobile app to raise requests, or share feedback.

IN THE PIPELINE

THE PLATFORM ITSDEMONSTRATEDHASSUCCESSWITH OVER BOOKINGS55,000 AND 50,000+ SERVICE REQUESTS SINCE ITS LAUNCH gulfbusiness.com September 2022 25

These features have been successfully received, with more than 55,000 bookings and over 50,000 service requests received since its inception.

The PropEzy team, which is based out of Abu Dhabi Global Market, is continually innovating the platform’s products and features, with the ultimate aim of creating a building operations super-app.

“We identiﬁed a gap in the market by building a suite of integrated products that ultimately lead to one multi-functional system, bringing together all stakeholders involved in operating a residential or commercial building,” adds Trojanovic.

The initial product suite built out of this partnership comprises three products –PropEzy Community, PropEzy Workplace and PropEzy Property – which can function autonomously, or as part of an integrated platform.PropEzy Community, for example, is an efficient and easy-to-use platform to manage customers, ﬁnance and community

We identiﬁed a gap in the market by building a suite of integrated products that ultimately lead to one multifunctional system, bringing together all stakeholders involved in operating a residential or commercial building”

gulfbusiness.com26 September 2022 COVER STORY SEVEN CENTURY

gulfbusiness.com September 2022 27 RESOLVEONBUILDINGSTRONG THE CEO OF DUBAI-BASED SEVEN CENTURY REAL ESTATE BROKERS, NAGHMEH SHEIKHOLESLAMI, FEELS THE EMIRATE IS A FERTILE GROUND FOR LOCAL AND INVESTORS.INTERNATIONALHERE’SWHY… WORDS: ZAINAB MANSOOR PHOTOS: AHMED ABDELWAHAB

“WithinSheikholeslami.oursalesteam, we have experts who specialise in di erent kinds of properties because we have clients from all stripes – those who are keen to purchase studio units to the ones interested in buying villas, penthouses, residential lands, commercial o ces and retail shops,” she adds.

and o er 24/7 maintenance services; and with regards to holiday homes, we manage short-term leasing and provide services for interior design and furnishing,” notes

“We started [the company] in 2007 and even a ter the 2008 global crisis, we didn’t shut shop, neither were our phone lines plugged o for a day. We were always available to assist our clients in consolidating and negotiating their payment plans,” explains Sheikholeslami. “Though we never decommissioned our services, we did reduce our expenses and focused on improving our o erings for our clients. It was challenging at the time, but the e orts paid o , as those investors continue to support us till today.

The emirate’s real estate market in the wake of the pandemic has only become stronger by the month. According to Dubai Land Department, the first quarter of 2022 registered the highest number of quarterly real estate transactions since 2010 with a sales value of about Dhs55.5bn. The government has been introducing favourable policies to facilitate progression. The ‘Golden Visa’ is also a game changer for not only this industry, but also for overall economic growth. Expo 2020 Dubai has also given a major hike to the real estate industry locally. The UAE is strategically located and growth in tourism, as well as a huge influx of people moving to Dubai, will continue to improve local market dynamics.

W THE WITHCONTINUEDSEEMSMOMENTUMTOHAVETHISYEARASWELL,THEEMIRATERECORDINGATOTALOF25,972REALESTATETRANSACTIONSINQ12022

Helming a team of around 60 employees, Sheikholeslami, who ﬁrst arrived in Dubai as a student in 2004, now oversees three company divisions, covering brokerage, property management and holiday homes. “Our one-stop solution di erentiates us from other players in the market. Within brokerage, we focus on primary and secondary residential and commercial sales. Within property management, we handle real estate assets

“From initially o ering brokerage services, we then expanded our operations to property management services, which range from property snagging and handover to lease management,” she adds.

hat does it take for a female real estate entrepreneur to build a business from the ground up and steer it successfully through a decade and a half, more importantly through choppy waters? Resolve and resilience, says Naghmeh Sheikholeslami, CEO of Dubai-based real estate agency Seven Century Real Estate Brokers.

To face a global ﬁnancial crisis a year into establishing the company must have been a daunting reality. While investors faced challenges and companies shut shop, Seven Century’s raison d’être at the time was to support its customers and stand its ground.

gulfbusiness.com28 September 2022

VISION FOR DUBAI’S REAL ESTATE MARKET

I strongly believe that policies and regulations are one of the main factors boosting the emirate’s real estate industry. Dubai’s legislative framework with regards to real estate has evolved considerably.

The company, a four-time recipient of the ‘Gold Ranked Agency Award’ from Dubai Land Department, has grown alongside the emirate, which has reshaped its real estate – and wider economic – landscape, owing to its vision, grit and technological superiority. Today, Dubai as a real estate hub, o ers fertile ground for opportunities and growth. Numbers act as a perfect advocate: In 2021, Dubai recorded the highest value of real estate sales transactions in 12 years, with properties worth Dhs151.07bn sold throughout the year, according to Property Finder’s data.

Dubai’s population has also grown from 40,000 in 1960 to a whopping 3.3 million by the end of 2020, while its urban and built area increased 170-fold from 3.2 square kilometres during the same period. Furthermore, with the city keen to chart its future course, the Dubai 2040 Urban Master Plan was also launched last year –the seventh of its kind developed for the emirate since 1960 – o ering a range of investment and lifestyle opportunities for citizens, residents and visitors over the next two decades. The number of Dubai residents is also expected to rise to 5.8 million by 2040.

Opportunities, however, aren’t restricted for domestic uptake only. Initiatives and incentives by the emirate and the country have, in large part, made a strong case to the global audience. As a result, foreign investment into the UAE’s real estate sector has been promising. More so, during the ﬁrst half of 2022, Dubai won bids to host 99 business events in the forthcoming years, advancing the broader economy and beckoning the world. Legislation is also pushing the world to stand up and take heed. A new decree incentivising property investment funds in Dubai was recently issued to bolster the emirate’s position as a real estate investment destination. The decree, under its purview, covers all real estate in Dubai, including properties located in private development zones and freezones,

Dubai introduced a law in July, which aims to promote the growth of real estate investment funds in the emirate. I believe that the new law on incentivising property investment funds will lead to a boost in foreign capital. The law e ectively creates a register for property investment funds, whose members will be given certain privileges to assist them in their investment activities in the emirate’s real estate market. The new law comes as the Dubai property market continues to rebound with prices and transaction volumes, particularly in the residential sector.

MANJINDERDAWETT Head SevenTraining,ofCenturyRealEstateBrokers

TELL US WHY DUBAI IS AN IDEAL DESTINATION FOR FOREIGN INVESTORS AND DOMESTIC BUYERS.

DEPARTMENTDUBAIAWARD’RANKEDTHERECIPIENTFOUR-TIMEBROKERSESTATEISAOF‘GOLDAGENCYFROMLAND

gulfbusiness.com September 2022 29

COVER STORY SEVEN CENTURY

BY DUBAI LAND DEPARTMENT Awarded gold RANK Agency

Strong economic backdrop

SEVEN CENTURY REAL

estate transactions in Q1 2022, making it the highest number of property transactions registered in a single quarter since 2010. Of those, a whopping 20,539 were sales transactions worth Dhs55.51bn, according to Mo’asher, Dubai’s sales and rental performance index by the Dubai Land Department. The six-month long expo event, which beckoned the world and clocked in north of 24.1 million visits – also le t a positive imprint on Dubai’s real estate market.

Apart from its skyline, a lot has changed across Dubai’s real estate spectrum over the last two decades, be it the number of players, technological advancements, new entrants, legislation or customer priorities. “There has been a drastic change from the time I started out, across all facets of the industry, be it [property] transfer, digitalisation, escrow accounts for projects or virtual tours, among others,” adds Sheikholeslami.

eligible for this visa to Dhs2m from Dhs5m. The visa duration has also been extended from ﬁve years to 10 years.

The momentum seems to have continued this year as well, with the emirate recording a total of 25,972 real

One of the recent and talked about policy to magnify the real estate industry in Dubai is the ‘Golden Visa’ which was introduced in 2019. After its launch, the policy has been further updated, which has attracted more foreign investment. The emirate has reduced the minimum investment needed for a person to be

The vast majority of these transactions were sales of apartments from top property developers in Dubai. Sales of new o -plan developments increased by around 95 per cent, and sales of properties on the secondary market increased by around 75 per cent. Moreover, we are observing a signiﬁcant demand for large villas and townhouses seen over the past year. SevenSales,ofCenturyRealEstateBrokers

MAROOFHASSAN Head

IN Q1 20,5392022WEREREALESTATESALESTRANSACTIONSWORTHDHS55.51BN

COVER STORY SEVEN CENTURY

excluding Dubai International Financial Centre. Visa reforms, including the introduction of the ‘Golden Visa’ and others, have also helped catalyse growth.

“In the wake of the Covid-19 pandemic, the entire world acknowledged how the UAE government e ciently handled the crisis. People from di erent parts of the world are now planning to establish a second home/base here

Dubai property developers just experienced one of the greatest quarters in history. The overall number of transactions from January to March 2022 had a value of over $15.3bn, making it the biggest ﬁrst quarter to date.

“Dubai’s market is moving [ahead] in a positive direction, with rising population, long-term ‘Golden Visa’s, growing infrastructure and visas for new entrepreneurs leading to increasing demand in housing,” opines Sheikholeslami.

People invest in other countries besides their homeland for two primary reasons – secure investments and good rate of return, she adds. “[In Dubai], protection by law and well-deﬁned rules help investors gain conﬁdence. Additionally, managing ready properties through registered property management companies makes it easier [for investors] to manage their portfolios.”

Changing dynamics

Several macro factors have recalibrated economies and consumer priorities in recent years. Apart from signiﬁcant health implications, the Covid-19 pandemic posed as a huge economic roadblock for industries, regionally and globally. With social restrictions, remote operations, expedited technological adoption and vaccination e orts, several countries managed to weather the pandemic pragmatically.

TELL US ABOUT THE CURRENT TRENDS IN THE REAL ESTATE MARKET FOR BOTH OFF-PLAN AND SECONDARY PROPERTIES, PARTICULARLY WITH FOREIGN BUYERS, RECESSION, UKRAINE CRISIS AND OTHER FACTORS.

gulfbusiness.com30 September 2022

The UAE’s response to the crisis, however, was immediate, e ective and widespread – in addition to o ering economic support, north of 24.92 million vaccine doses were administered to people across the country.

Long-termbehaviourstrategic plan

Tenants now prefer to live in townhouses or villas, even far from the centre of the city, as they are keen on personal spaces for remote working/e-learning, etc.,” explains Sheikholeslami.

VENTURING FORWARD

When purchasing a property, preference should be given to the quality/ layout/ surroundings of the real estate asset than a lone focus on price

However, other factors come into play. Sheikholeslami adds that residents who managed to snag convenient

ComprehensiveHonesty

understanding of market trends

Consistency in performance

“Post the pandemic, client preferences changed as the concept of community living came to the fore.

MUGHALNASIR SevenManager,GeneralCenturyRealEstateBrokers ALONG SERVICESMANAGEMENTOURCOMPLEMENT]CALL24/7TOWELEASINGTHEOFEXPANSIONWITHPLANSINCREASINGSALESANDFORCE,HAVEATARGETHOUSEACENTRE[TOPROPERTY

Though not without challenges, it has all come together for Sheikholeslami, for whom Dubai has now been home for nearly two decades. And it doesn’t stop here. The CEO harbours growth plans which include diversifying the company’s o erings. “Along with expansion plans of increasing the sales and leasing force, we have a target to house a 24/7 call centre [to complement] our property management services. An even bigger plan is to set up a training academy which will be led by experienced real estate trainers to produce qualiﬁed personnel who can contribute and add value to the [real estate] industry.”

Proactive

mortgage plans and post completion plans from developers prefer ready properties, while international investors opt for off-plan assets due to extended payment plans.

“The biggest challenge for me was to balance my work/personal life as a woman [entrepreneur]. That said, Dubai o ers an ecosystem that is holistically ideal for women. Professionally, I never encountered any hurdle in my interactions with various government departments, developers and customers. The emirate’s culture supports female entrepreneurs in all aspects, o ering equal footing, safety and security.”

With a long-haul strategy in place, grit to rise up to challenges and Dubai’s booming landscape o ering a perfect backdrop, Sheikholeslami appears to have checked all the right boxes.

KEY TIPS FOR INVESTORS

Choose an experienced real estate advisor Choose a company that understands your investment requirements

With the future in sight, Sheikholeslami, however feels that game-changing trends that will help reshape the local property market include the concept of community living, new visa reforms and conducive mortgage plans.

and many [are considering the UAE] for their retirement plans,” notes Sheikholeslami.

Apart from ushering in digital innovation and adoption earlier than anticipated, the global health crisis also helped reshape customer priorities in terms of their home choices, with buyers actively considering elements such as spacious settings, sustainability and value-added features.

The shi t in buying behaviour that resulted due to the pandemic has continued into the year as well, with customers opting for completed units, compared to oplan ones. According to o cial data, in Q1 of the year, secondary market transactions made up 58.05 per cent of the total real estate sales transactions volume.

gulfbusiness.com September 2022 31

FIVE FACTORS TO CONSIDER WHEN SELECTING AN AGENT

However, obstacles exist, in varying forms. Sheikholeslami’s biggest hurdle is to recruit professional resources as there aren’t enough. Another dilemma – though on a holistic level for the CEO – was to strike the ‘perfect balance.’

“Villa communities are [also] getting popular because of low services charges and well-designed communities by renowned developers,” she adds.

Deﬁne your purpose and nature of investment, i.e., short- or long-term, etc.

Tackling the issue of data ownership, interoperability, and data portability without compromising security

Managing data across metaverses

However, as online game makers, brands, individuals, and social networks find unlimited opportunities in the

Major global brands, including Nike, Gucci, and Coca-Cola, are also experimenting with non-fungible tokens (NFTs) across metaverse platforms like the Sandbox, Decentraland and Everdome. These brands utilise virtual reality technology to market their merchandise and products to a wider audience. For instance, brands like Gucci and Nike are setting up virtual showrooms to capture the virtual economy. Gucci, for one, launched its collection in the Roblox game, where

he metaverse has redefined how we live, work, and play. The industry has shown tremendous growth over the past two years, with organisations and brands adopting and investing in virtual worlds. Bloomberg reported that the metaverse market will be valued around $800bn by 2024. And social networks like Facebook, online game makers, and other companies have chipped in for a slice of the pie. It is deemed to be the bridge between the physical world and the virtual realms.

avatars can purchase limited editions of Gucci merchandise through NFTs. The younger generation in this space create an enormous customer base for brands and corporations. However, besides the virtual economy, the metaverse also creates a social community, where individuals can interact with each other. But the building blocks of the metaverse dictate how the metaverse will operate, creating a vast digital bazaar of disparate tools, products, and platforms. This means that it will not be owned or controlled by a central entity.

BY DR NAVEEN SINGH , CEO AND CO-FOUNDER, INERY

The growing integration of NFTs and the metaverse has unlocked new opportunities for brands and individuals. For example, brands can commercialise their merchandise in the virtual realms via NFTs, host seed rounds and virtual events to exhibit artworks and products, and engage with customers via loyalty schemes. Brands also penetrate the metaverse market to introduce their customers to new ideas, experience, and designs.

LEVERAGING THE VIRTUAL REALMS

The Inery ecosystem solves the issue of data ownership, interoperability, and data portability without compromising security.

Data portability means that users and brands can move data or transfer digital assets across metaverses seamlessly, and set their own governance policies. Put simply, brands need to access their data anywhere, anytime.

Major

across widerandmerchandisetorealitybrandsEverdome.DecentralandtheplatformsmetaverselikeSandbox,andTheseutilisevirtualtechnologymarkettheirproductstoaaudience” $800BN REPORTEDBLOOMBERGTHAT THE

BE BYAROUNDVALUED2024 BRAND VIEW

the environments open-source will enable brands to share with and access other metaverses with ease.

Therefore, brands need to ensure data portability if they intend to create resilience in the near future. It is important for brands to make sure that their customers retain their loyalty. They should also create alternatives to purchasing a ordable storage across multiple providers to cut costs.

metaverse, the data capacity keeps burgeoning. The brands’ existence in the metaverse will bring in big data, which will generate levels of data complexity, interoperability, and security concerns. Combining usergenerated content and big data will saturate the space, incresing demand for decentralised database solutions.

User data currently exists in walled garden environments, where the big tech dictates the rules and conditions. The data doesn’t leave the metaverse, nor is there interoperability within metaverses. However, having data portability privileges and making

Other key components to consider for data management in the metaverse include interoperability, data ownership, and security. New ecosystems are being developed to handle the new, complex data pipelines that metaverse creates. A ﬁrst-mover into this space is IneryDB, a decentralised database management solution. IneryDB enables cross-chain interoperability to connect the disintegrated data within the metaverse and Web3 industries. This will enable brands and individuals to transfer data from one metaverse to another at greater speeds.

The decentralised DBMS counterpart incorporates metadata management into its distributed infrastructure to enable complex query searches and access to Web3-speciﬁc data from its library. global brands, including Nike, Gucci, and CocaCola, are experimentingalso with non-fungible tokens METAVERSE MARKET WILL

GOVERNANCE: DATA PORTABILITY

Scheduled to open in the coming months, AD Ports Group’s latest milestone project in KIZAD is set to be one of the largest and most advanced food and healthcare storage hubs in the region

KLP21: A global benchmark for food and healthcare logistics

BRAND VIEW

the emirate as a major global hub for strategic industries including food, life sciences and healthcare.

Furthermore, the launch of KLP21 builds on Abu Dhabi’s growth as a global healthcare and life sciences hub, which has worked collaboratively with its partners to attract pharmaceutical research, development and manufacturing to its shores, backed by one of the most extensive cold and ultra-cold pharma supply chains on the market today.

SCALABLE STORAGE CAPACITY

KLP21 has been strategically designed to support the vision of Abu Dhabi’s leadership to establish

Its location also offers KLP21’s customers proximity to five major international airports within a 90-minute driving distance, ports such as Khalifa Port, Zayed Port, and Jebel Ali Port, and Etihad Rail’s future rail link – all working together to connect customers to a combined marketplace of more than 4.5 billion consumers.

The UAE has already gained prominence for initiatives such as its National Food Strategy 2051, which aims to put the UAE at the top of the Global Food Security Index, while building international partnerships to diversify food sources, enhance nutrition and introduce legislation to cut waste.

Situated in KIZAD, AD Ports Group’s integrated industrial zone located between Abu Dhabi and Dubai, KLP21

In addition, the hub will also support regional and international fastmoving consumer goods (FMCG), and specialty chemicals sectors.

will leverage the emirate’s strategic position as a gateway to Asia, Africa and the MENA region. It is also strategically located next to the upcoming ‘Regional Food Hub’ along the main E311 cargo corridor, ensuring direct connectivity to all major destination markets.

Two of KLP21’s four advanced

STRATEGICALLY LOCATED

A s the UAE’s leading facilitator of global trade, logistics and industry, AD Ports Group is set to create another significant benchmark for the logistics industry, with the launch of KLP21, one of the largest advanced food and healthcare warehousing and logistics hubs in the region. The hub will be available to customers seeking to leverage its significant capabilities and connectivity to extensive local, regional and international markets, within the third quarter of the year.

Connected to highway E311 Cargo Corridor, and Etihad Rail’s future rail link

Strategically located for connectivitymulti-modalto a marketplace of over 4.5 billion consumers

MAKING IT ONE OF THE LARGEST INDEPENDENTLY CONFIGURABLE COLD AND AMBIENT STORAGE HUBS IN THE GCC KLP21 BRINGS TO MARKET 4 WAREHOUSES TOTALLING 80,000m2 +25˚-26˚ ACCOMMODATES OVER 100,000PALLETS

HUB HIGHLIGHTS

STORAGE

warehouses will be operated by AD Ports Logistics, which already operates over 350,000 square metres of storage space, including its includingtheistheiropportunitiesdomesticcapacitycoldincreaseseffortsascold19,000-square-metreKIZAD-basedcoldandultra-storagefacility,whichhasservedthecornerstoneofAbuDhabi’sglobalagainsttheCovid-19pandemic.ThelandmarkfacilitysignificantlyADPortsLogistics’currentandambienttemperaturestorageandprovidesinternationalandcompanieswithoutstandingtoenterorexpandpresencewithinaregionthatprimedforsustainedgrowth.Theprojecthasbeendesignedwithlatestoptimalsolutionsinmind,theuseofadvancedinsulation

OF CAPACITY

Next to world class ports such as Khalifa Port, Zayed Port and Jebel Ali Port

15 minutes from KIZAD’s upcoming food hub

Close to ﬁve major 90-minuteairportsinternationalwithindrive

Among the many benefits available to customers at KLP21, AD Ports Logistics will offer a full suite of services, including: leasing, thirdparty logistics (3PL), fourth-party logistics (4PL), regional logistics hub operations, and value-added services.

The high-tech hub has also developedbeenin-line with the latest HSEQ and ISO standards, which assures customers that their products will be regulatoryhighestaccordinghandledtothelevelsofglobalcompliance

BRAND VIEW

and can hold 60,000 pallets, which will be managed by an advanced highcapacity VNA mobile racking system that is capable of accommodating products of varying sizes.

handled according to the highest levels of global regulatory compliance.

The hub’s four warehouses which total more than 80,000 square metres of combined space will be able to accommodate over 100,000 pallets across a network of chambers which can be independently configured to a range of sizes and temperatures, including -26°C to 25°C. The two warehouses operated by AD Ports Logistics span 40,000 square metres

BROAD SPECTRUM OF ENDTO-END SERVICES

The high-tech hub has also been developed in-line with the latest HSEQ and ISO standards, which assures customers that their products will be

COMPLETE VALUE ADDED SERVICES • RE-PACKING • SPECIALTY PACKING • ANDLABELLINGMORE

The hub will also be served by a fleet of over 400 transport vehicles, operated by MICCO Logistics, and a network of logistics partners, both domestic and international.

materials to reflect sunlight; the strategic application of skylights to reduce the need for lighting; recycling of water for irrigation; a centralised refrigeration system; and the use of primary, backup, and solar power supplies.

Most importantly, the addition is timely given the recent shift in global supply

Furthermore, one of the hub’s major advantages is that it offers accessibility to AD Ports Group’s broad portfolio of trade and logistics services, which are capable of supporting customers’ products from their point of manufacture to the point of delivery – all through a single point of entry.

Specifically, customers of KLP21 will have the opportunity to access the group’s broad portfolio of trade and logistics services, including free zone and industrial zone services, warehousing, freight forwarding and land transport, port and maritime services, air freight via AD Ports Group’s partners, and final mile deliveries.

THE FACILITY IS CONNECTED TO PORTS, AIRPORTS AND A MAJOR LAND CARGO CORRIDOR BY A FLEET OF OVER TRANSPORT400VEHICLES

AD Ports Logistics is now ready to engage with potential customers to discuss how the facility can add value to, and serve, their needs.

The new hub will also respond to increasing customer demand for temperature-controlled storage solutions to support the safe and efficient product distribution in the UAE and across the wider region.

AD Ports Logistics will offer a full suite of services, including: leasing, third-party logistics (3PL), fourth-party logistics (4PL), regional logistics hub operations, and value-added services

OPERATED BY MICCO, AND A NETWORK OF LOGISTICS PARTNERS

chains towards more robust near-shore and on-shore sourcing of strategic goods and supplies, which KLP21 is in an excellent position to provide.

For enquiries and further details, please contact AD Ports Logistics at 800 10 20 30 or visit www.adportsgroup.com

In the ﬁrst half of the year, Huawei Cloud released 15 innovative services, covering infrastructure as a service (IaaS), technology as a service (TaaS), and expertise as a service (EaaS).

By June 2022, Huawei’s Digital Power solutions had already helped customers generate 588.5 billion kWh of green power and save 17 billion kWh of electricity. These e orts have o set 290 million tonnes of CO2 emissions, equivalent to planting 390 million trees.

HUAWEI’S DIVISIONS ARE SETTING THE PACE FOR THE COMPANY’S GROWTH TO CREATING VALUE

The carrier business reported stable development in 5G, while other business modules such as optical networks, cloud core networks, services, and so tware grew rapidly. Huawei’s exploration into 5GtoB has also been rewarding. Working with carriers and partners, the company signed more than 5,000 commercial contracts for industrial 5G applications by June 2022.

In the device business, the HarmonyOS ecosystem continues to grow rapidly. It has already been deployed on more than 300 million Huawei devices and HarmonyOS Connect has attracted more than 2,000 ecosystem partners. Over 170 million third-party HarmonyOS Connect devices have been shipped.

“While our device business was heavily impacted, our ICT infrastructure business maintained steady

FEATURES / ICT gulfbusiness.com38 September 2022

IN THE COMING MONTHSCOMMITTEDH

R&D SPENDING

To ensure the business’ focus on innovation and growth, Huawei invested about $22.38bn in research and development (R&D), representing 22.4 per cent of its total revenue, and bringing its total R&D expenditure over the past ten years to over $132.5bn. Moving forward, Huawei will continue the trend.

GENERATEDHUAWEI $45bn IN REVENUE IN H1 2022 Over million170 THIRD-PARTY HarmonyOS BEENDEVICESCONNECTHAVESHIPPED

By integrating digital and power electronics technologies, the company is developing innovative digital power products and solutions that will drive the shi t towards a green and low-carbon energy sector.

CLOUD-BASED INNOVATIONS

growth,” says Ken Hu, Huawei’s rotating chairman. “Moving forward, we will harness trends in digitalisation and decarbonisation to keep creating value for our customers and partners, and secure quality development.”

The division will forge a new partner system and help partners improve their capabilities. With Huawei Cloud serving as the foundation, the company will enable developers to grow and contribute to a thriving ecosystem through programmes like the Huawei Cloud Developer Programme. It has also continued to expand its global presence. Together with partners, Huawei Cloud is currently operating 65 ‘Availability Zones’ in 27 Regions, including the UAE and the upcoming Saudi region. According to Gartner, Huawei Cloud is the 5th largest IaaS vendor in the world.

In some Middle East countries, such as Saudi Arabia and the UAE, Huawei’s 5GtoB o erings have seen large-scale commercial deployment across numerous industries, including ports, mining, manufacturing, and oil and gas. 5G Fixed Wireless Access has seen wide adoption in home applications, helping carriers achieve business success with 5G among home and enterprise users.

While our device business was heavily impacted, our ICT infrastructure business maintained steady growth”

GREEN AGENDA

uawei’s business groups have shown steady growth in the ﬁrst half of the year. The company generated $45bn in revenue, with a net proﬁt margin of 5 per cent. Its carrier division contributed $21.3bn in revenue, with the enterprise business contributing $8.1bn, exceeding 27 per cent both in and outside China. Meanwhile, the device division brought in $15.1bn.

The company has continued innovating and proposed a three-layer solution: green sites, green networks, and green operations, as part of its green agenda. The company also aims to help carriers enhance network energy e ciency in all areas.

gulfbusiness.com September 2022 39 2022Apr 2022May 2022June 2022July2022Mar2021Oct2021May 2022Feb2021Sep2021Apr 2022Jan2021Aug2021Mar 2021Dec2021Jul2021Feb 2021Nov2021Jun2021Jan2020Dec 20222022MarMar Mo’asher: Sales 20212021OctOct20212021MayMay 20222022FebFeb KEY FINDINGS • July recorded 7,092 sales transactions worth Dhs21bn, the highest number of sales transactions for the month of July in the past decade 20212021SepSep THE OFFICIAL SALES PRICE INDEX FOR THE EMIRATE OF DUBAI 20212021AprApr 20222022JanJan20212021AugAug INDEX BASE: JANUARY 2012 JULY INCREASEDVOLUMETRANSACTIONSALESBY 63.56% AND ON-YEARBYINCREASEDVALUE88.41%,YEAR59% OF THE VOLUME OF OFF-PLAN41%MARKETSECONDARY/READYWERETRANSACTIONSSALESFORTHEWHEREASWEREFORTHEMARKETMar2021Mar2021 20212021DecDec MAY TO JULY THIS YEAR 20212021JulJul ACCORDING TO PROPERTY FINDER, DUBAI RECORDED SALES TRANSACTIONS WORTH DHS21BN IN JULY, THE HIGHEST VOLUME FOR THE SAME MONTH IN THE PAST DECADE 20212021FebFeb 20212021NovNov20212021JunJun 0.81.21.410.60.40.20 20212021JanJan INDEX VALUE 20202020DecDec REFERENCE GUIDE DUBAI’S OFFICIAL RESIDENTIAL REAL ESTATE PERFORMANCE INDEX 20222022AprApr 20222022MayMay 2022JULYTO2020DECEMBERDATA,DEMANDFINDERPROPERTYPROPRIETARYSOURCE:20222022JuneJune 20222022JulyJuly0.80.81.21.410.60.40.201.41.210.60.40.20 Index value Dhs1,024,482 Index value Dhs1,164,955 Index value Dhs1,303,493 Index value Dhs1,016,208 Index value Dhs916,322 Index value Dhs1,871,675 Index value Dhs1,218,379 Index value Dhs2,162,530 Index value Dhs1,049,652 Index value Dhs2,077,358 Index value Dhs952,825 Index value Dhs1,678,567 DUBAI APARTMENTS INDEX DUBAI VILLAS/TOWNHOUSES INDEX DUBAI OVERALL INDEX

40 September 20222022JULYTO2022MAYDATA,DEMANDFINDERPROPERTYPROPRIETARYSOURCE: Mo’asher: Rental THE OFFICIAL RENTAL PERFORMANCE INDEX FOR THE EMIRATE OF DUBAI 2022Apr 2022May 2022June 2022July2022Mar2021Oct2021May 2022Feb2021Sep2021Apr 2022Jan2021Aug2021Mar 2021Dec2021Jul2021Feb 2021Nov2021Jun2021Jan2020Dec KEY FINDINGS • July 2022 recorded 42,698 rental leases, 56.04 per cent were new leases while 43.96 per cent were renewals INDEX BASE: JANUARY 2013 MADECONTRACTSANNUALUP 85.94% WHILE 14.06% WERE ANNUALNON-LEASES LEASESCOMMERCIALMADE UP 25.66% WHILE 72.98% WERE LEASESRESIDENTIAL MAY TO JULY THIS YEAR 0.81.21.410.60.40.20 INDEX VALUE Index value Dhs51,140 Index value Dhs51,104 Index value Dhs53,248 Index value Dhs52,280 20222022MarMar20212021OctOct20212021MayMay 20222022FebFeb20212021SepSep20212021AprApr 20222022JanJan20212021AugAug20212021MarMar 20212021DecDec20212021JulJul20212021FebFeb 20212021NovNov20212021JunJun20212021JanJan20202020DecDec 20222022AprApr 20222022MayMay 20222022JuneJune 20222022JulyJuly0.80.81.21.410.60.40.201.41.210.60.40.20 Index value Dhs46,888 Index value Dhs128,778 Index value Dhs48,688 Index value Dhs135,456 Index value Dhs46,998 Index value Dhs131,884 Index value Dhs48,476 Index value Dhs126,045 DUBAI OVERALL INDEX DUBAI APARTMENTS INDEX DUBAI VILLAS/TOWNHOUSES INDEX

Dubai’s most coveted residential areas A GUIDE TO THE MOST SOUGHT-AFTER AREAS IN DUBAI’S RESIDENTIAL REAL ESTATE MARKET, WITH THEIR AVERAGE SALES AND RENTAL RATES AVERAGE PRICE PER TYPE OF UNIT Studio1Bed2Bed3Bed 1.1700* 1.5 3.2 1.4 1.7 5 1.6 1.3 2.3 4.5 31.9 420* 2.8 1.2 3.3 2 DHS MILLIONS * DHS THOUSANDS AVERAGE PRICE PER TYPE OF UNIT Studio1Bed2Bed3Bed 70 105 300 200 55 65 160 11088 35 4450 110 120 72 8575 190 130 DHS THOUSANDS Dubai Marina 15.20% Downtown Dubai 12.00% Palm Jumeirah 7.70% Business Bay 7.40% Jumeirah Village Circle5.60% Dubai Marina 10.20% Downtown Dubai 7.00% Business Bay 6.80% Jumeirah Village Circle6.30% Jumeirah Lake3.90%Towers May to July 2022 combined May to July 2022 combined 2022JULYTO2022MAYDATA,DEMANDFINDERPROPERTYPROPRIETARYSOURCE: AVERAGE PRICE PER TYPE OF UNIT Arabian Ranches 2 10.50% Dubai Hills Estate 7.60% Arabian Ranches 3 6.60% Palm Jumeirah 5.50% Arabian Ranches4.80% 2 Bed 3 Bed 4 Bed 5 Bed SALES : APARTMENTS SALES: VILLAS/TOWNHOUSES 8.93 42.51.7 5.3 2.3 17 2.1 25 4.5 5.2 4 DHS MILLIONS May to July 2022 combined AVERAGE PRICE PER TYPE OF UNIT Dubai Hills Estate 6.90% Jumeirah 5.30% Al Barsha 4.60% Akoya 4.50% Arabian Ranches4.40% 2 Bed 3 Bed 4 Bed 5 Bed DHS THOUSANDS 29090 260 300 310 77 250205 230 200150 16570 225 90 110 May to July 2022 combined 12564 790*770* TOP SEARCHED5AREAS RENT : APARTMENTS RENT : VILLAS/TOWNHOUSES TOP SEARCHED5AREAS TOP SEARCHED5AREAS TOP SEARCHED5AREAS 6.3

Dubai Hills Estate 106

APARTMENTS

Downtown Dubai 1463

Damac Hills 2 (Akoya) 246

Mohammed Bin Rashid City 14

Dubai South (Dubai World Central) 393

Dubai Investments Park 24

Damac Hills (Akoya By Damac) 69

Town Square 171

Business Bay 1159

Jumeirah Lakes Towers 380

Arjan 313

Dubai Healthcare City 287

Dubai Hills Estate 223

Dubai Harbour 301

Jumeirah Park 129

Business Bay 776

International City 399

Villanova 116

Tilal Al Ghaf 76

SECONDARY

Jumeirah Beach Residence 258

Dubai Marina 734

SECONDARY SOURCE: DUBAI LAND DEPARTMENT transactions29,555 SECONDARY OFF-PLAN transactions20,544 SALES Dhs135,526,550,586VALUEMORTGAGEVALUEDhs79,690,786,947 transactions28 OFF-PLAN transactions11,321 SECONDARY

Rukan 113

Dubai Creek Harbour (The Lagoons) 746

Arabian Ranches 3 219

Dubai Creek Harbour (The Lagoons) 229

Al Safa (Damac City) 310

Dubai Hills Estate 16

Jumeirah Village Circle 424

VILLAS/TOWNHOUSES

The Springs 145

Al Furjan 85

Mohammed Bin Rashid City 510

Jumeirah Village Circle 570 Palm Jumeirah 428

Dubai Marina 378

The Valley 48

Arabian Ranches 2 93

Downtown Dubai 601

gulfbusiness.com42 September 2022 MORTGAGESALES toMayJuly2022July2022 SALES VALUE Dhs61,953,516,733 Total sales volume 22,619 Sales volume O -plan 9,213 Secondary 13,406 SALES VALUE Dhs20,970,441,313 Total sales volume 7,092 Sales volume O -plan 2,908 Secondary 4,184REGISTRYTRANSACTIONSDLDSOURCE: MORTGAGE VALUE Dhs45,824,536,814 Total mortgage volume 5,089 Mortgage volume O -plan 13 Secondary 5,076 MORTGAGE VALUE Dhs27,441,568,649 Total mortgage volume 1,668 Mortgage volume O -plan 4 Secondary 1,664 AREAS THAT REGISTERED THE LARGEST NUMBER OF RESIDENTIAL SALES TRANSACTIONS IN MAY, JUNE AND JULY Top sellers 2022 YTD (until July 30) OFF-PLAN

Villanova 110

The Sustainable City 71

Arabian Ranches 101

OFF-PLAN

SPOTLIGHT ON THE REGION’ S BOOMING CONSTRUCTION SECTOR SPECIAL REPORT: BUILDING ON AMBITION

gulfbusiness.com44 September 2022

Areport

ON THE HOME FRONT

The work-from-home concept rung in by the Covid-19 pandemic is proving to be profitable for the construction sector. Home buyers are now demanding spacious and luxurious living spaces in all-inclusive communities featuring a range of leisure facilities such as parks, gyms, and swimming pools as well as commercial outlets such as restaurants, schools, and retail outlets. The sentiment has been further bolstered by the UAE government’s new visa legislation that allows property investors to get a Golden Visa when they buy a property worth Dhs2m.

Prominent property developers across the UAE are cashing in on the trend, announcing a slew of high-end mixed-use projects. Nakheel’s master plan for its Dubai Islands (formerly known as Deira Islands) development includes a diverse mix of residential, retail, and hospitality offerings. In addition to

Dubai

by real estate investment and advisory firm JLL states that “the UAE construction projects’ market rebounded during 2021, with the residential sector being the highest performer within construction asset awards.” With the trend expected to continue through 2022, the market is witnessing several successful residential project launches.

Nakheel recently unveiled its masterplan for its Dubai Islands development that will include residential, retail and hospitality offerings

WORDS: NUSRAT ALI

Construction has begun on Murooj Al Furjan

MEGA RESIDENTIAL PROJECTS ARE HAULING THE UAE’S CONSTRUCTION SECTOR BACK TO BUSINESS

20km of beaches and two square kilometres of parks, open spaces, and golf courses, the Islands will be peppered with nearly 80 luxury and wellness resorts and boutique hotels, enhancing Dubai’s holiday appeal. Earlier this year, the Dubai-based master developer also launched Tilal Al Furjan, a collection of 220 luxury villas that overlook its flagship Al Furjan master community. Nakheel also began work on its Murooj Al Furjan development that sold out last year.

Special Report / UAE’s construction gulfbusiness.com September 2022 45

Last year, Dubai’s Deyaar appointed Gulf Asia Contracting as the main contractor on its Regalia project. To be built at a cost of Dhs750m, this will be the tallest-ever residential project by the developer. Launched in July 2021, over 85 per cent of the units were sold by September, raking in Dhs900m. The project is expected to be completed by 2024. In June this year, the developer also announced Dubai Silicon Oasis’ first luxury residential tower, Tria, which will feature studios, one-, two- and three-bedroom apartments, duplexes, and penthouses over one million square feet of built-up area. Apart from driving a spurt in construction, the demand

Due for completion in 2024, Murooj’s 620 villas and townhouses will be built by Al Shafar General Contracting.EmaarDevelopment, the build-to-sell property arm of Dubai-based Emaar Properties, delivered over 3,000 residential units in the first half of this year. During the same time, it launched over a dozen projects including Talia and Orania in The Valley, Elie Saab II and Bliss 2 in Arabian Ranches III, Greenview 3 in Emaar South, Park Field in Dubai Hills Estate and Seagate in Rashid Yachts & Marina. The Talia and Orania projects alone will add 638 luxury homes to Dubai’s real estate scene upon completion in 2025. Underpinned by these new launches, Emaar Development

EMAAR DELIVEREDEMAARARMTO-SELL(EMAARDEV),DEVELOPMENTTHEBUILD-PROPERTYOFDUBAI-BASEDPROPERTIES, 3,000OVER RESIDENTIAL UNITS IN THE FIRST HALF OF THIS YEAR

Haider Ali Khan

Deyaar’s TRIA will be the first luxury residential tower in Dubai Silicon Oasis

Emaar announced its highest ever property sales of Dhs15.21bn during H1 2022

Prominent property developers across the UAE are cashing on the trend, announcing a slew of high-end mixed-use projects. Nakheel’s master plan for its Dubai Islands (formerly known as Deira Islands) development includes a diverse mix of residential, retail, and hospitality offerings”

announced its highest ever property sales of Dhs15.21bn during H1 2022. In August this year, the developer fully acquired Dubai Creek Harbour from Dubai Holding, the emirate’s eponymously named property developer. With this Dhs7.5bn acquisition, Emaar Properties added 100 million square feet of land to its future development portfolio.

Stoked by Covid-19 lockdowns, high returns on investments, and limited supply, Abu Dhabi is witnessing a strong demand for larger, luxurious villas too. In response, the capital’s leading developers are launching several high-end residential developments. In June 2022, Q Properties (a subsidiary of Abu Dhabi’s Q Holding) appointed ATGC Transport and General Contracting to carry out the early works construction on the

Bigger homes for Abu Dhabi

Arada unveiled Phase Three of its Dhs8bn Masaar project which includes 565 villas

Later this year, the emirate’s Aldar Properties will begin construction on Saadiyat Grove, a Dhs10bn mega mixeduse project on Saadiyat Island. Sprawling across 6.2 million square metres of prime land, the integrated community will include nearly 3,000 residential units, most of which are villas. Another development rising on the Grove is the Louvre Abu Dhabi Residences, a collection of 400 luxury apartments that yield views of the famed Louvre Abu Dhabi as well as the Arabian Gulf. The property is expected to be handed over in The2025. Ain

The demand for real estate in Dubai has not slowed down over the course of the last six quarters. Initiatives like the Golden Visa have increased Dubai’s appeal as a long-term home for expats and global investors”

first phase of its Dhs8bn Reem Hills luxury residential gated community development. Anchored on the eastern face of Reem Island, the 1.8 million square metres project is being managed by Abu Dhabi-based Royal Development Company and is due for completion in 2024.

JIIC’s Ain Al Maha village will feature 240 sea- and mangrove-facing villas

for premium residences is boosting the real estate market as well in Dubai. The emirate ranked fourth in the Savills Prime Residential Index: World Cities in August 2022. The only non-US city to make it to the top five, Dubai recorded strong performance on prime residential capital values as well as rents. Prime prices grew by 4.7 per cent during the first half of the year and the city is expected to witness strong capital growth continue for the remainder of 2022.

“The demand for real estate in Dubai has not slowed down over the course of the last six quarters. Initiatives like the Golden Visa have increased Dubai’s appeal as a long-term home for expats and global investors, spurring demand in the property market. As per the data from the Dubai Land Department, there have been over 66,000 transactions in the last year alone; a 50 per cent increase compared to the same period a year before. To keep up with this growing demand and taking into account the unique preferences of end users, there is a real need to create a regular supply of new inventory in the market. The volume of off-plan transactions has also grown impressively, increasing by over 70 per cent in the last 12 months, suggesting that there is a steady interest in new projects,” explains Haider Ali Khan, CEO of Bayut and dubizzle and head of EMPG MENA.

Special Report / UAE’s construction

gulfbusiness.com46 September 2022

Al Maha village, a new waterfront community, is rising on Jubail Island next door to Saadiyat Island. Launched by the Jubail Island Investment Company (JIIC) in July this year, it features 240 sea- and mangrove-facing villas and is expected to be completed in 2025. Before this, JIIC awarded a Dhs40m contract to Al Dhafra Pipeline and Contracting Company for a new 66-berth marina in the Marfa Al Jubail community which is due for completion by mid-2024. JIIC plans to unveil the district within Marfa Al Jubail in October.

Another 257 villas will be up for grabs when Bloom Living opens its doors in Zayed City at the end of 2024. The project’s Phase 1 sold out within four hours of its market launch, and its Abu Dhabi-based developer, Bloom Holdings, is hoping to replicate the same success when Phase 2 goes live later this year. Altogether the Dhs9bn Bloom Living project will feature 4,000 villas, townhouses, and apartments across 2.2 million square metres.

Al Hamra rolled out the second phase of its Falcon Island community in July

P gulfbusiness.com September 2022 47

Northern Emirates join in Moving north, Sharjah Sustainable City has now started to welcome its first residents. Two hundred and eighty villas will be delivered in the first phase of the project which is slated to have a total of 1,250 villas, recreational areas, and green spaces spread over 7.2 million square feet of land upon completion. Recently, Sharjah-based property developer Alef announced its Dhs3.5bn Hayyan project that will span 8.7 million square feet and will include 1,836 smart villas and the largest swimmable blue water lagoon and largest community park in the emirate. Sharjah’s Arada also unveiled Phase Three of its Dhs8bn Masaar project under which 565 villas and townhouses will rise in the emirate’s Suyoh district. Masaar’s master plan includes 4,000 homes divided into eight gated communities spanning 19 million square feet. During H1 2022, Arada awarded contracts worth Dhs460m for Masaar’s Phase One. It also sold 980 homes valued at Dhs709m at Aljada, its other megaproject in Sharjah. Aljada will be Sharjah’s largest mixeduse community to be built at a cost of Dhs24bn.

Al Hamra’s group CEO, Benoy Kurien, attributes the increased investor interest in Ras Al Khaimah to booming tourism, affordable infrastructure, and attractive returns on investment. He also points to the long-term residency visa package Al Hamra is offering in partnership with Ras Al Khaimah Economic Zone (RAKEZ) which gives investors the opportunity of securing a 12-year residence visa and business licence. “This was a game-changer as investors from across the world bought into our residences at Al Hamra Village and Bab Al Bahr. Given these attractive initiatives, our residential communities are now home to more than 100 nationalities,” he says.

Driven by the UAE Vision Programmes, UAE 2022 federal budget, recovery of oil prices, and improving investor confidence there is undeniable positive market sentiment in the construction sector. The sector is expected to reach a value of $133.53bn by 2027 according to the UAE Construction Market (2022 – 2027) report. The UAE government’s infrastructure projects, comprising housing, tourism, and transport networks, will also make a significant contribution to the sector. Given the pipeline of upcoming projects, it is evident that designand-build opportunities are in plenty for the next few years.

Among the Northern Emirates, Ras Al Khaimah boasts one of the most active construction pipelines. In July, the emirate’s Al Hamra rolled out the second phase of its Dhs1bn idyllic residential community, Falcon Island, which will offer 127 luxurious townhouses and villas with prices starting from Dhs1.2m. Phase one of the project was launched in March when over five hundred villas were released and all of which were sold out within one week. Construction is set to begin later this year and will be completed over a period of 24 to 28 months. Ras Al Khaimah’s six million square feet Hayat Island is also undergoing a major transformation with its homegrown RAK Properties’ Gateway Residences 2 and Bay Residence –Central 1 projects rising there.

UAE’s smallest emirate, Ajman is capitalising on the demand for luxury housing too. Recently, Al Zorah Development Company (a joint venture between the Government of Ajman and Solidere International) launched its beachfront SeaSide Hills residential project that will feature luxury apartments and villas with private beach access.

Benoy Kurien

Much of the world is facing challeng ing times amid the acceleration in inflation and the resulting tight ening in monetary policy, which is fuelling recessionary fears. However, the pic ture in the Gulf remains brighter for now at least. This is something that has been highlighted in recent economic updates from the International Monetary Fund as well as by several other wellregarded forecasters.

Ambitious schemes linked to development, diversification and sustainability offer a positive outlook for the construction sector in Gulf states such as the UAE, Saudi Arabia and Qatar

On an upbeat note

In contrast to the severe downgrades to growth being pencilled in for many of the larger more mature economies, such as the US, Japan and much of Europe (as well as China), the likes of Saudi Arabia, UAE, and Qatar are only seeing very marginal adjustments to macro projections, if any at all.

Leading the way

This relatively upbeat environment in this geo graphical area, fuelled in no small part by rising oil prices, also appears to be underpinning the

generally favourable backdrop for both the real estate and construction sectors across much of the Gulf region. This is a clear message emanat ing from the feedback to the latest round of RICS (Royal Institution of Chartered Surveyors) market surveys which I oversee. Now just to be clear, these surveys are based on sentiment rather than hard data, but they are, nevertheless, viewed by many policymakers and multilateral organisations as lead indicators of emerging trends in both sectors.

Given the economic narrative already touched upon, the strength of the feedback received from Saudi Arabia to our questionnaires is perhaps unsurprising. We produce two aggregated indices from the surveys which are designed to provide an overarching picture of the state of the industry; and the story is the same in both. Saudi Arabia is head and shoulders ahead of all others in terms of the RICS Construction Activity Index and it also has the strongest reading for the RICS Commer cial Property Sentiment Index, out of the 40 odd countries included in the report.

Favourable factors

Significantly, from what we are hearing, the tone of responses from those members work ing in the commercial real estate market in this region is distinctly upbeat, both from an occu pier and investor perspective. Partly off the back of this, the current levels of development activity remain generally strong with key forward look ing metrics suggesting this pattern will continue into 2023.

gulfbusiness.com48 September 2022

COMMENT

The raft of huge developments underway, including Neom and The Red Sea Project, con tinues to drive RICS current workloads indicators which are running strongly, not just for infra structure, but also for private residential and non-residential activity. But the huge amount of construction does now appear to be presenting some challenges with capacity in the contract ing market increasingly stretched. This is show ing up most acutely around labour shortages; around three-quarters of respondents to the Global Construction Monitor (GCM) from Saudi Arabia identified this as an issue holding back activity. Disaggregating a little further, the concern around labour extends through a range of professional dis ciplines to skilled trades. That said, the ambitions of the kingdom represented through the drive of the Saudi sovereign wealth fund (Public Invest ment Fund) is very visible in the expectations ele ment of our results. This points to an acceleration in workloads looking ahead rather than a slowing in Themomentum.otherinteresting

aspect of the insight we are receiving from Saudi Arabia is the sheer strength of demand to take up what is being built. Just to put this in some perspective, the aggregated read for occupier demand (it is measured in a net bal ance format) rose from +53 per cent to +65 per cent between Q1 and Q2 of this year. By way of con trast, the headline global number slipped from +12 per cent to +5 per cent while in the US market, the metric while still solidly in positive territory has retreated from +37 per cent to +26 per cent. Sig nificantly, the appetite both to take up space and acquire real estate is being reflected in the belief of contributors that both capital values and rents are heading higher.

A steady pace

The economic story in the UAE is not far short, and the country has the potential to show greater resilience through 2023, if oil prices do begin to slip back a little as seems plausible. The latest RICS GCM suggests that the con struction sector in the Emirates is continuing to grow, albeit at a relatively moderate pace for now. However, this is anticipated as likely to quicken looking ahead with strong num bers not just in the infrastructure space, but also for residential and non-residential devel opment. This chimes with the government’s plans to strengthen industrial, transportation and energy infrastructure as highlighted in its key announcement last autumn. Encouragingly, much of this is interlinked with the pledge to push towards carbon neutrality.

In summing up, what is clear from our feed back is that despite differing challenges across the region, as with the macro numbers the outlook for the construction sector in the Gulf remains generally positive. Ambitious schemes linked to development, diversification and sus tainability are being reflected in the RICS sur veys which suggest industry workloads will continue to grow strongly and, significantly, that profitability will prove solid despite spe cific challenges in each of the countries that I have touched on.

“THE ECONOMIC STORY IN THE UAE IS NOT FAR SHORT, AND THE COUNTRY HAS THE POTENTIAL TO SHOW GREATER RESILIENCE THROUGH 2023, IF OIL PRICES DO BEGIN TO SLIP BACK A LITTLE AS SEEMS PLAUSIBLE. THE LATEST RICS GCM SUGGESTS THAT THE CONSTRUCTION SECTOR IN THE EMIRATES IS CONTINUING TO GROW, ALBEIT AT A RELATIVELY MODERATE PACE FOR NOW”

Interestingly, we are being told labour related issues are less of a challenge in the UAE than elsewhere. Only around one-quarter of respond ents to the monitor noting this as a problem; slightly more (one-third) did acknowledge dif ficulties in recruiting some skilled trades per sonnel. However, the main obstacles identified by contributors are around the cost of building materials as well as financial constraints.

IN TERMS OF THE RICS SENTIMENTPROPERTYRICSREADINGSTRONGESTITACTIVITYCONSTRUCTIONINDEXANDALSOHASTHEFORTHECOMMERCIALINDEX

gulfbusiness.com September 2022 49

As far as Qatar is concerned, a decade of high intensity development linked to the FIFA World Cup 2022 is now drawing to a conclusion and this is perhaps inevitably also reflected in a flat ter trend in our feedback (signalled most clearly in the RICS workload metrics). That said, the infrastructure read is still pointing to moderate growth. A broadly similar pattern is evident in the expectations data helped by projects that form part of the Qatar National Vision 2030. Interestingly, finance related issues have been raised by almost nine in ten respondents, which may help to explain why contributors are a little cautious about the outlook away from big infra structure work.

SAUDI ARABIA IS HEAD OFSHOULDERSANDAHEADALLOTHERS

Simon Rubinsohn, chief economist, Royal Institution of Chartered Surveyors

Special Report / Outlook

The Arab world’s largest economy, Saudi Arabia is looking to transform itself into an international hub for trade and tourism. And its strategy to do so is set in realty. The kingdom has announced a slew of projects along the country’s Red Sea coast such as NEOM, Amaala, and The Red Sea Project.

Knight Frank, infrastructure and real estate projects worth $1tn have been announced in Saudi Arabia since 2016 – of which $575bn is being invested into the development of the Red Sea coast as a global tourism and business hub, with 1.3 million homes, over three million square metres of o ce space, and 100,000 hotel rooms.

NEOM’s first smart connected city is due for completion in 2025

WORDS: NUSRAT ALI

According to a report by property consultancy

Star projects

gulfbusiness.com50 September 2022

Construction is making a comeback across the region with a spate of mega projects being announced across tourism, hospitality and infrastructure

The crowning glory of the kingdom’s ambition is the $500bn futuristic development, NEOM, which is backed by the country’s sovereign investment fund, Public Investment Fund (PIF). In June, NEOM awarded ground engineering specialists, Keller UK, a $61.5m contract for piling work for The Line, its ﬁrst smart connected city due for completion by 2025.

GCC: REALTY CHECK

ESTATEINFRASTRUCTUREANDREALPROJECTS WORTH $1TN HAVE INANNOUNCEDBEENSAUDIARABIASINCE2016

ith projects worth billions of dollars in the pipeline, the GCC’s construction sector is powering ahead to leverage wider economic opportunities. The total value of projects under construction across the region totalled $3.2tn in mid-2021 as highlighted at the 2nd PPP MENA Conference held in February this year – with mega projects, focusing on infrastructure development, tourism and hospitality – emerging as the biggest contributors.

Flanking AMAALA is The Red Sea Project, a mega regenerative tourism project that sprawls across 22 islands and six inland sites, offering 50 resorts and over 1,000 residential properties.

Meanwhile, Bahrain announced construction projects in excess of $30bn in November 2021, to spur investment in the country. Plans include the building of five island cities which will increase the kingdom’s total land area by 60 per cent. Fasht al-Jarim will be the largest of the five island cities, covering 183 square kilometres, and will include residential, logistics, tourism hubs and new airports. Also coming up is Exhibition World Bahrain, touted to be the the region’s largest exhibition and convention centre. With a total area of 309,000 square metres, it will have a total built-up area of 149,000 square metres.

AND OVER RESIDENTIAL1,000 PROPERTIES

gulfbusiness.com September 2022 51

In May 2022, AMAALA and The Red Sea Project, together, held contracts worth $2.7bn in the bid stage. Between the two projects, TRSDC plans to award contracts worth another $267m each month over the next 12 to 18 months, it said in a statement at that time.

Meanwhile, FIFA World Cup host Qatar has a whopping 1,000 planned developments in the pipeline with contracts worth $150bn yet to be awarded according to Project Qatar, the country’s business exhibition platform specialising in construction. Of this, $80bn is marked for new

FLANKING AMAALA IS THE RED SEA PROJECT, A TOURISMREGENERATIVEMEGAPROJECTTHATSPRAWLSACROSS ISLANDS22 AND SIX INLAND SITES, OFFERING RESORTS50

projects, with planned infrastructure projects accounting for a large portion of the overall investment. The upcoming FIFA World Cup fuelled a $157bn construction frenzy in the country leading to the development of airports, railways, highways, and stadiums. The nine stadiums set to host the games have been built at a cost of $5bn.

CompanyDevelopmentSeaRedTheCourtesy,Photo:

The upcoming FIFA games fuelled a $157bn construction frenzy in Qatar

Building infrastructure

Rising next to NEOM is AMAALA, an ultraluxurious destination spanning 3,800 square kilometres. The development will feature 800 luxe villas, apartments, and estate homes in addition to 200 high-end fashion establishments and 14 of the world’s top hotels. In 2021, the project awarded over 230 contracts worth $959.8m, 78 per cent of which were given to local companies. This year, AMAALA signed a contract for secondary infrastructure development at its Employee Village, which will house 20,000 employees upon completion.

Special Report / Giga Projects

To date, over 700 contracts worth $5bn have been signed for Phase 1 of the development which is expected to be completed in 2023. In July, The Red Sea Development Company (TRSDC) entered into a $400m joint venture (JV) with Almutlaq Real Estate Investment to develop a 159-key luxury resort on Shaura, the hub island of the Project.

The Red Sea Project

Public-private partnership projects worth $223bn are under development across the MENA region

leaders, and regulatory o cials converged in Dubai at the 2nd PPP MENA Forum to discuss economic opportunities coming out of the region’s construction boom. Industry leaders conceded that a vast majority of the projects will be conducted via public-private partnerships (PPP).

Currently, nearly 242 PPP projects worth $223bn are under development across the MENA region, with the ﬁgure expected to soar going forward.

At the start of the year, over 300 government o cials, project owners, experts, business

Mega projects planned

In comparison to its neighbours, Oman has a modest project pipeline. Its $175m Botanic Garden is on schedule to be completed by the end of 2023. The project, billed as the first-of-its-kind for the country, is led by Oman’s Diwan of Royal Court and is being executed by global engineering firm, ARUP. In August, Oman’s Ministry of Heritage and Tourism announced plans to develop tourist sites in five of the country’s governorates. In total, Oman has 21 integrated tourism complex projects planned. As part of Oman Vision 2040, the country aimed to attract $7.8bn in tourism investments between 2021 and 2023; of this $4.42bn have already been acquired.

Given the pipeline of upcoming projects and amid growing domestic and international interest, the GCC’s construction landscape appears promising.

Supporting tourism

Special Report / Giga Projects

Neighbouring Kuwait has numerous megaprojects planned, including the Madinat Al Hareer (Silk City), Kuwait Islands Development and Sabah Al Ahmed Future City. At an estimated cost of $132bn, Madinat Al Hareer will cover 250 square kilometres and will feature developments such as the 234-ﬂoor Burj Mubarak al-Kabir tower, a business centre and host of other tourist attractions and hotels. Under the Kuwait Islands Development, ﬁve of the kingdom’s islands will be transformed into tourism and leisure destinations, and will include a new airport, hotels, amusement parks and shopping centres.

Oman Botanic Garden will be completed by the end of 2023

Several megaprojects are slated to rise in Kuwait over the next few years

Exhibition World Bahrain

gulfbusiness.com52 September 2022

AT ANCOSTESTIMATEDOF $132BN MADINAT AL HAREER 250 KILOMETRESSQUARE

WILL COVER

gulfbusiness.com September 2022 53

By integrating optimised smart home automation, improved air puriﬁcation technologies, solutions optimising energy consumption and sustainability can be made a way of life by making it a part of the basic fabric of all developments.

Indoor Air Quality (IAQ) plays an important role within the planning of developments. Residents will be healthier and more refreshed in developments that incorporate modern heating, ventilation, and air conditioning (HVAC) systems and advanced air puriﬁcation technologies which enhance air quality and further optimise

Further value additions are achievable while reducing the need for plastic. This can be done by adding a centralised reverse osmosis water puriﬁcation system for entire developments. This can be a useful way to ensure that residents have access to premium quality drinking water in their apartments. E cient utilisation of this technology further reduces the usage of single-use plastic bottles on a daily basis, resulting in a considerable impact on the environment and further adding to the savings of the residents.

Yousuf Fakhruddin, CEO, Fakhruddin Properties

the energy consumed in the development, leading up to 30 per cent reduction in energy costs. The integration of these revolutionary technologies enhances the overall air quality in the building and contributes to the wellbeing of occupants.

Sustainable development is about ﬁnding a balance between economic growth and environmental protection. Understanding the use of innovative sustainable solutions and disruptive technology to reduce the impact on our planet is crucial. It is now imperative that green architecture should be at the core of every development and is integrated into the initial design itself. The beneﬁts are copious – it is practical, economical, as well as sustainable. The main focus should be to reduce the impact of future developments on the environment for a practical, eco-friendly and healthier future.

Future developments will include advanced smart home automation and optimised designs to cultivate a more energy efﬁcient and sustainable lifestyle

Special Report / Sustainable solutions COMMENT

Lifestyle requirements remain uncompromised, hence more and more existing and upcoming communities are o ering ample green spaces such as parks, vertical gardens, and green corridors, allowing people to unwind, relax and enjoy nature within the city. These small changes beneﬁt the communities greatly when made an integral part of sustainable development plans.

We need to focus on waste management by e ciently optimising use of recyclable waste, which will further work to reduce the quantum of waste that ends up in landﬁlls. Developers need to bring about a cultural and behavioural change within each household by o ering recycling facilities and separate units for easy segregation of wet and dry trash to its residents. Incorporating onsite composting facilities into their buildings will allows residents to compost their recyclable wet waste and other organic materials. A reduced load of dry waste taken out from the developments further cuts down the need for logistics and waste disposal in landﬁlls. E-waste management is also a critical component which needs to be managed well in developments.

Real estate players need to involve best practices in their developments to focus on the mentioned core points:

An increasing number of developers are deploying key energy optimisation technologies along with specially automated smart homes. This will o er energy savings and convenience while also reducing the carbon footprint of their developments. Basic smart solutions like automated lighting, blinds, temperature controls, central interface controlled via AI or mobile applications help in decreasing the overall energy consumption of each unit within a development. Moreover, smart security features such as ﬁngerprint and face recognition locks, smart security systems and access control enables developments to be in tandem with the technological advancements.

Optimised living

Currently, the construction sector is also going through a major shift. From technological advancements to a significantly larger focus on sustainability, the industry has to make many changes over the next few years. These changes, in turn, require the workforce to be fully equipped and open to constant change. Moreover, the ageing workforce soon looking at retirement is also a reality looming over the industry. The potential loss of intellectual and practical knowledge and capital means it needs to constantly prepare the younger generation and emerging leaders for the future, failing which the sector can look at a slower pace of growth and potential stagnation.

The Covid-19 pandemic has truly embedded the meaning of globalisation in most industries. Organisations are now open to global talents. The younger generation needs to be open to the idea of globalisation and understand that there are many chances for career advancements through this. While the construction industry in the region is booming, there are many underdeveloped and other developing countries that need newer talents to support the burgeoning demands of the population. Diversity is equally important, and companies must make a significant effort to diversify their workforce by focusing on the required talent.

Empowering the new construction workforce

Technological innovations and digitalisation

While education certainly plays a major role in developing the right skills and knowledge, industry expertise and peer-to-peer knowledge

sharing are also key components of building the future workforce in construction. Here are the factors that will empower the new generation of leaders in construction.

gulfbusiness.com54 September 2022

Special Report / Training

Practical knowledge and training Gaining early knowledge through internships and training is key. Furthermore, peer-to-peer knowledge sharing is important. From being part of online or offline industry communities to being actively involved in where the industry is headed by taking on mentors and peer support is also advisable.

Right skills and knowledge, industry expertise and peer-to-peer knowledge sharing are key components in building the future construction workforce

Focus on green construction Sustainability is key to ensuring the industry is headed in the right direction. The next generation of construction leaders needs to give sustainability the attention it deserves and warrants. Understanding the value of green construction and how it can help reduce carbon emissions is imperative for the workforce to build a secure future.From green concrete to the usage of biodegradable materials and green insulation to electrochromic smart glass to cool roofs, these technologies can help developments reduce the harmful impact they have on the environment.

Technology will continue to evolve, making it necessary for the construction industry to adopt and adapt now and in the future. To future-proof the sector and continue the growth momentum, the knowledge of technologies currently being used is not enough. Technologies such as augmented reality, enhanced project management tools, and collaboration software will gain popularity.

he global construction market is expected to grow by $4.5tn by 2030 to to reach $15.2tn, with its value touching $8.9tn in emerging markets in 2030, according to the Future of Construction report by Marsh, the global risk advisor and insurance broker. Furthermore, a report by Mordor Intelligence states that the UAE construction market is expected to reach a value of $133.53bn by 2027, registering a compound annual growth rate of 4.69 per cent between 2022 to 2027. Construction will continue to be a critical economic driver not only globally, but specifically in the GCC, as the region continues to expand its cities.

Matt Smith, head of School - School of Energy, Geoscience, Infrastructure and Society, Heriot-Watt University Dubai

Diversity and globalisation

Grand ambitions

Founder and chairman of ORO24 Real Estate Developments, Atif Rahman tells us how the region’s construction sector is gearing up for more growth, his company’s focus on innovation and his flagship development, TORINO by ORO24

BRAND VIEW

Global demand for real estate in Dubai has also increased to unprecedented levels, with the industry rapidly evolving in areas of sustainability, design excellence and luxury finishes”

Tell us why the construction sector in the GCC, and particularly Dubai, is booming. Dubai, and the UAE, have become global hubs for innovation and major projects, particularly with the government’s propensity to take big investment decisions swiftly. A good example of this is Expo 2020 Dubai – it made everyone believe that the world was returning to normal once again in the wake of the pandemic. The country’s leaders enabled all the resources required to make the mega event a huge success – from direct investments and quality of infrastructure, to the safety and convenience of visitors and bilateral partnerships. Expo 2020 Dubai has now made way for Expo City Dubai –City of the Future, and it will welcome the world yet again from October 1. Global demand for real estate in Dubai has also increased to unprecedented levels, with the industry rapidly evolving in areas of sustainability, design excellence and luxury finishes. Today, the UAE is a global landmark, and delivers a unique lifestyle to a global audience. This is an outcome of the historic achievements by a visionary government that works relentlessly to raise the benchmark.

Across the GCC, Qatar, which is hosting the FIFA World Cup 2022, is expected to see a similar impact, as the world descends on it come November. Neighbouring countries, including the UAE and Saudi Arabia, will benefit from the footfall too. Beyond these global events, the region continues to attract attention with mega projects like the recently-opened Museum of the Future, which is an architectural masterpiece. Regional countries are demonstrating intense competition while also complementing each other. There is a regional competition to build the next tallest tower of the world running closely between the Creek Tower at Dubai and the Kingdom Tower in Saudi Arabia. The recently announced The Line at Neom, Mecca redevelopment project and many more are putting Saudi Arabia on the world map for reasons other than crude oil. While the region has had huge amounts of wealth, its local market has been largely untapped for the past few decades.

How have challenges, including supply chain issues and material costs, impacted the construction industry?

Due to the lack of local opportunities, a large volume of domestic investments was diverted to Europe and America in the past. However, more recently, there’s a concentrated focus on developing a non-oil-based economy, liberalising trade and immigration reforms backed by visionary leadership and heavy investment

from the government in infrastructure development. The most notable fact is that the focus on sustainability is at an all-time high. Thanks to this, we will see nothing less than the best coming out from the region’s construction industry.

The rise in freight costs coupled with shortage or delay in material supplies has led to cost inflation globally and across industry verticals. The regional construction industry has felt the heat a lot more. The reason – significant quantities of construction materials are imported into the GCC from Europe, the Asian subcontinent as well as the Asia-Pacific region. Countries who supplied materials were badly affected during the pandemic in

I’ve always believed that every adversity leads to untapped opportunities. The recent supply chain issues emphasise the importance of creating local manufacturing alternatives; this opens immense opportunities for domestic and global manufacturers. In my opinion, this has the potential of adding a serious new contributor to the local GDP and transforming the region from “consumer/importers” to

2020 and couldn’t meet the growing demand, creating a shortage. Through 2021, the regional economies, especially countries such as the UAE, Saudi Arabia and Qatar, continued recovering at a rapid pace, leading to a construction boom. While the backlog from previous years is being cleared, fresh and increasing requirements are maintaining the gap between supply and demand, leading to inflation.

I have always believed that every adversity leads to untapped opportunities. The recent supply chain issues emphasise the importance of creating local manufacturing alternatives; this opens immense opportunities for domestic and global manufacturers”

BRAND VIEW

It has been the most exciting journey of my “corporate” life. After having spent over 21 years in the world of business, ORO24 is my vision of creating a people-sensitive corporation, delivering value based real estate solutions to the consumer. I am extremely passionate and emotional about the brand and I want to continue living my dream of serving the society through an ethical business platform.

BEING A PEOPLE-CENTRED BUSINESS

ORO24 is built around experiences that help change people’s lives for good and bring a smile to their face. To begin with, we first built our headquarters at a prime location on Sheikh Zayed Road right next to a metro station to offer more convenience to our staff and visitors. We’ve created a unique ambience at our office. We have our own cafe called ‘Café ORO’ brewing gourmet coffee and shakes for our team and visitors. We also have our kitchen called ‘O’Byte’, with a chef who serves a wide range of cuisine that can be ordered through our employee portal. We have an in-house medical facility called ‘La Salute’, with a licensed full-time nurse for our staff. Most importantly, we have a unique edutain ment zone called ‘Ozone’ with different elements

Our entire business operates through digitisation and artificial intelligence. To achieve this, we have invested in top-of-the-line virtual management, firewall, cybersecurity and an Oracle ERP system, which helps us run our corporate affairs in a secured way. We have recently acquired a unique printing solution that operates like a mini printing press with secured binding of all our contracts, it delivers bound agreements of up to 100 pages in less than 50 seconds. We have also used a lot of natural plants inside and around our HQ and as per our internal calculation based on standards, the quality of air in our offices are 20 per cent cleaner. We have installed water filtration units to ensure we reduce usage of bottled water.

A TECH-LED COMPANY

“manufacturers/exporters”. Today, you can buy the best Italian marble from China, though, the country doesn’t have these natural stones. Typically, Chinese companies source blocks, ship it to China and the processing happens there and then the finished products are sold to the global market. This is a great example of how imports of raw material can create new local manufacturing units. Let us remember that there is an ever-growing regional

demand, plus the UAE has been the biggest exporter of imported materials to the African continent – together that creates a huge volume that can be locally manufactured here.

What’s your outlook on the UAE’s construction scene in the second half of the year?

THE VISION BEHIND ORO24

While we are in the real estate business, what’s most important are the people who operate the business. I was fortunate to find the best set of people who are distributed in a complex yet nuclear organisation structure and departments. The workforce of ORO24 is managed by 14 qualified management employees. We also have an advisory board and six committees along with a qualified company secretary. This helps us deliver transparency, governance, and risk management in all our decision making and business operation. We’ve been investing in training and development regularly to enhance the skills of our workforce.

HIS BIGGEST INSPIRATION...

...is Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai. He is a people’s leader who has created everything revolving around their welfare. For me, ORO24 is more than just a profit-making business. It is a culture that I want to showcase to the world; it’s corporate life through my lens. We are proud to be a Dubai-born company; this city has taught me the true meaning of creating possibilities, innovation and much more. For me, ORO24 is a reflection of Dubai.

Our core objective is to become a people-sensitive brand delivering quality and value to everyone who associates with us.

I believe it will continue to get busier with some mega project announce ments. The UAE government will

SPOTLIGHT ON ORO24

We have our in-house design strategy to create and develop every project handled by our engineering department to ensure we are constantly creating new benchmarks through our real estate innovation.

continue to spend heavily on infra structure projects, which will only add to the order books of contrac tors. Commercially, the cost will continue to move north, at least for the next two-three quarters by when the manufacturing industry will be operating at full steam. It will be important to maintain healthy con tingencies for every project budget; such situations are bound to happen due to various factors and can’t

to enhance human wellbeing, including a library, gym and cinema at the ORO24 headquarters.

THE A-TEAM

contractor selection. We plan to complete the project in 22 months and once finished, it will be well within the promised timeline to the customers.

I believe there remains a huge opportunity for financial institutions, as the industry is still under-financed both at construction and real estate levels. I am personally exposed to substantial discussion in the capital market, and I am expecting some phenomenal action in this sector for the industry at large.

Tell us about the growing trend for sustainable projects.

The business is a diversified platform with the vision to deliver quality real estate in every sector possible. I have certain unique plans for the commercial property, which I aspire to deliver as a fully integrated turnkey solution for corporate businesses. We also have some exclusive plans for hospitality industry through which we want to change the way people stay while travelling. We also plan to venture into co-habitation and luxury segments. All of these are planned with the focus on delivering quality solutions with affordability as an important factor; it’s value for money to put it more simply. While we remain bullish, I am a believer of thorough process, and we will attend to them all, but one at a time. Our philosophy is to create our brand equity through our project design and delivery. To achieve this, I believe in remaining focused on the process rather than the result. And the process demands us to extract maximum value and quality for our consumers. We have laid down a diversified digital infrastructure for this purpose which is managed by seasoned top management.

The government in the UAE has created one of the fastest evaluation and approval mechanism for real estate projects. The government entities such as urban planning, development control, infrastructure delivery and regulatory support system are working on the most advanced platforms, truly acting as “business enablers”. The industry will continue to attract established builders from the global developed markets. I have personally evaluated real estate development businesses in some advanced economies, the processes are scaled and not supportive of the consumer, business or economy.

Regional governments have shown true commitment in the fight against global warming by introducing initiatives to lower carbon emissions. The private sector is equally committed to delivering sustainable projects in the region. The construction industry

Commercial and hospitality ventures are two of your other prominent verticals. What are your plans for them?

We also plan to venture into co-habitation and luxury segments. All of these are planned with the focus on delivering quality solutions with affordability as an important factor”

At ORO24, we are totally committed to increasing our efforts on delivering sustainable communities. We are extensively working on the drawing board for design efficiency, selection of efficient sanitaryware to lower water consumption, a greywater treatment plant, fresh air handling unit condensate water collection for irrigation, apart from other regular measures such as solar lamps, sensors and more. There is also a growing focus on delivering value-based eco-communities for consumers.

be termed fatal; any well-planned business is expected to have the abil ity to absorb such turbulences.

is maturing well beyond energyefficient sensor-operated lights, green concrete and bike bays to label a project “green”. There is no shortage of awareness and intent. However, I see two challenges that we need to overcome. The capital expenditure generally swells while delivering green projects and, there remains an acute shortage of turnkey solution providers for sustainable development, especially in renewable energy.

I feel the industry will also evolve with introduction of specialised consultancies in areas of sustainability, technology, cost control and project management services. The construction methods and quality being delivered in the UAE is second to none and its only poised to advance further.

By when is TORINO by ORO24 expected to be completed? We witnessed unprecedented demand for TORINO by ORO24 and its been a runaway success for us. Consumers have loved every aspect of the project and that for me is the best form of consumer confidence a business can achieve. The land on which the project is coming up was originally earmarked for three isolated buildings. I am a believer in community development and could only imagine a community in that area. That’s how we planned a six-building gated complex, with a wide range of amenities. The enabling works are nearing completion and we are in the final stages of main

Lifestyle

Hublot Classic Fusion Saudi Arabia National Day edition

22 gulfbusiness.com September 2022 59

We look at how the British luxury automaker has continued to make good on its committment to sustainable mobility that it announced in 2020 following its centennial year p.70

“Entering a new environment, especially a space primarily dominated by men, can be intimidating at first, but it’s important to put your best foot forward and remember that you’re there to and more...

Hublot has launched a special limited edition watch to mark Saudi Arabia’s 92nd National Day. The timepiece showcases Hublot’s exclusive savoir-faire and the country’s characteristic essence. The final result is a timeless watch that adapts to all moods and occasions. Reema Juffali, Saudi Arabia’s first female racing car driver and founder of Theeba Motorsport

Bentley:learn”Beyond 100

SEPT

You’ve previously said that Breitling is yet to achieve its fair market share in China. Have you capitalised on that? China still represents a small portion of our business. We’re growing strongly but BY VARUN GODINHO

The custodian

There are watches that are icons and which are commercially successful, and then there are watches which are icons, but which were commercial failures. The Navitimer was always successful and the Navitimer’s existence as part of our col lection was never threatened since it was always a commercial success. It is today, with the Chronomat, the most commer cially important line we have.

watch was never in space, but it was Glenn’s personal watch and when Gregory Breitling heard that it was on auction, he decided to buy it. This [acquiring watches at auction] is something we need to do ourselves in the future because we want to build a museum and work on our history. We have a clear focus to buy special watches that were once part of our collection, build a museum and publish books around our brand. Greg ory Breitling is very supportive of this initiative, as is Fred Mandelbaum who is probably the biggest Breitling collector in the world. Sooner or later, all these watches will be available in the museum that can be viewed by our customers and collectors.

After Scott Carpenter’s journey to space, at least seven other prototypes of the same watch were built. They were produced for the seven astronauts who took part in the Mercury programme. The John Glenn

BY THE END OF THE YEAR. THIS YEAR, WE’RE OPENING CLOSE TO TWO BOUTIQUES A WEEK

The Cosmonaute was a watch which was requested by Scott Carpenter, the fourth American in space. When he was training in Australia, he saw the Australian pilots of the Air Force wearing Navitimers and he knew it was exactly what Project Mercury needed for the upcoming orbital missions. He then wrote to Willy Breitling explaining that timekeeping was his specific respon sibility for Project Mercury. He needed a reconfigured Navitimer to retain the circu lar slide rule for calculations. He wanted a watch with a 24-hour indication and also

Give us a scale of your global operations. Last year, CVC sold a minority stake to a private equity company. Today, we are pre sent worldwide with subsidiaries. We will have roughly 250 boutiques by the end of the year. This year, we’re opening close to two boutiques a week. For the time being, the whole luxury industry is very resil ient. We have seen revenge buying because people couldn’t go on holidays, and hence have a lot of disposable income which is why the luxury industry did very well last year.

one that would read like an instrument in his capsule. Breitling then developed that timepiece which became one of the abso lute classics of the watch industry and became the first Swiss wristwatch in space.

GEORGES KERN, CEO OF BREITLING, CHARTS OUT THE GROWTH PROSPECTS OF THE ICONIC SWISS WATCH BRAND

WE WILL HAVE ROUGHLY 250 BOUTIQUES

How did the Cosmonaute come to become the first Swiss wristwatch in space in 1962?

gulfbusiness.com60 September 2022

There’s another very famous Cosmonaute worn by John Glenn that was acquired by Gregory Breitling at an auction in 2019. Why was he keen to return it to the Breitling archives?

The Navitimer itself is 70 years old this year. Was its existence ever threatened over the last seven decades?

Lifestyle / Watches gulfbusiness.com September 2022 61

Europe, the US and the Middle East. We have joint ventures in Saudi Arabia where we have opened a huge boutique in Riyadh earlier this year and are opening more bou tiques in the kingdom too.

Georges Kern

The Middle East is an important market. It’s a high-end, sophisticated and culti vated market. As a region, it’s smaller than Europe, but it’s growing and is a substan tial market. For us, the key markets are

We had in the 1960s a diving watch called the Slow Motion which was very much an instrument for diving with big hands and big indexes. So, we took the Slow Motion and added modern features to it, but kept the same broad design elements including a ceramic bezel and the square blocks on the hands. There’s a certain similarity to the look of most dive watches, but the Slow Motion always stood out from the crowd.

“There are watches that are icons and which are commercially successful, and then there are watches which are icons, but which were commercial failures. The Navitimer was always successful and the Navitimer’s existence as part of our collection was never threatened since it was always a commercial success.”

We have now launched the Superocean, but we have more products in the pipeline for the remainder of the year. As for the mid-long term, we have changed strategies four years ago and we now have a proven concept. What we’re doing now is scal ing the business in countries like China with our repositioned brand and rede signed collections.

There are important vintage watches like the Navitimer Cosmonaute from John Glenn acquired by Gregory Breitling. We work with auction houses to address that

we don’t have our fair market share in China yet if I compare it to the US, Europe or the Middle East because we just started to build our presence there four-five years ago. We are opening 25 boutiques in China this year. We have the locations, but it would take three-four years for us to be at the level where we want to be. You don’t have an established distribution network of retailers in China like you might have in Dubai with Seddiqi, for example. We don’t have a strategic problem as much as a tacti cal problem in implementing the strategies that we implement in our other markets around the world. We will have roughly 60 boutiques in China, but we should be able to quadruple that number.

How important is the Middle East market for Breitling?

Why did Breitling decide to unveil the new Superocean?

market. We have plans to address it with much more focus than we did in the past. The second area is the certified pre-owned watches which are traded on certified preowned platforms where we aren’t involved. And then there are watches that are no longer produced as part of our collection, and here we buy back the stock from the retailer and sell them through our factory outlets around the world.

What are your plans for the second-hand and vintage watch market?

What are some of Breitling’s plans for the short- to medium-term?

standard for mobile vlogging, the Honor 70 delivers a giant leap forward in mobile imaging and video performance, bringing users the first ever solo cut vlog mode and a dual primary camera, featuring a 54MP IMX800 super sensing main camera. Being the world’s first midrange smartphone to adopt the flagship

Testament to our mission to empower people with technology that helps them go beyond and our commitment to solving common consumer pain points, the Honor 70 o ers our Middle East consumers a series of software and

HONOR IS BUILDING ITSELF INTO A GLOBAL ICONIC TECH BRAND WHO’S OFFERING GOES BEYOND SMARTPHONES a smarter,connected world Innovation

for

What are the competitive advantages of Honor 70 over its competitors?

hardware enhancements and outstanding features, with the overall aim of creating a smarter, more connected world. We believe it provides a compelling option for consumers looking for a best-inclass smartphone that o ers innovative vlogging and photography solutions, with a stylish design. Setting a new

Why did you focus on bringing innovative vlogging solutions to users for the Honor 70 smartphone?

Setting a new standard for mobile vlogging, the Honor 70 delivers a giant leap forward in mobile imaging and video

With the emergence of video platforms such as TikTok, Instagram and Snapchat, more young people worldwide are prompted to shoot and share more videos. As a result, young consumers are no longer satisﬁed with only pictures but prefer ﬁlming videos to record beautiful and meaningful moments in their lives. With the ambition to deliver impressive consumer features, including fun and

Zac Li GCCHonormanager,general,

intelligent vlogging capabilities, the Honor 70 introduces the first-ever solo cut vlog mode feature. Boasting a specialised person autofocus tracking technology, the solo cut vlog mode allows users to spotlight a specific person in a group video, taking the vlogging experience to a whole new level in the industry. Furthermore, users can switch between front and rear cameras while filming using the multi-video mode, delivering a onetake recording technique commonly used in the film industry. With the flexibility to change between cameras without interruptions, the smartphone gives users greater freedom and flexibility to create video content conveniently and freely.

1/1.49-inch IMX800 sensor, it’s perfect for users who demand innovative technology to help support their creative ambitions.

mainsuperacamera,avlogﬁbringingperformance,usersthersteversolocutmodeanddualprimaryfeaturing54MPIMX800sensingcamera” BRAND VIEW

Focusing on customers who prefer online to connect and service, Honor Support helps them reach out to the service team virtually and get instant support. To ensure product quality consistency, we invest resources in key customised components, models, and manufacturing factories and independently develop and use automated equipment and procedures. This enables us to achieve “smart manufacturing”, and high quality and

What are you doing in terms of service and quality management?

The Honor Pad 8 comes with the latest Honor Magic UI 6.1 based on Android 12, offering a range of enhanced, customised features to provide a smart experience to users. For example, with Honor Share, the tablet enables speedy cross-system file transfers between an Honor tablet, smartphone and a PC supporting Honor PC Manager, keeping users ahead and connected”

To enhance customer service in UAE, we recently inaugurated a service and repair centre in partnership with Pedigri Technologies and will soon be launching

A visitor recording the programme on his phone at the Honor 70 launch

elevate their lives through technology.

Our focus on the market is to build an image of a global iconic tech brand that provides all scenario products, not just smartphones. As a brand, we focus on building our vision as an all-scenario product company as we plan to bring a range of products, including smartphones, PCs, wearables and audio products, to users in the Middle East in the upcoming months. Currently, in GCC, our products are present in more than 1,000 stores, and we work closely with KDR channels and IR in this region, KDR given maximum preference. We will also focus on building our recently launched e-commerce shop – HiHonor.com, which will provide the customers easy access to our products and services. We will also open an Honor Brand store to develop consumer trust and provide the best services.

What is the key strategy for future expansion in the UAE market?

one more repair centre in the region. Keeping consumer convenience a top priority, the service and repair store offers a one-stop solution to fit all their needs. Honor endeavours to establish a premium brand with quality and experience, by focusing on quality, innovation, and service as the key elements of their strategy. The company continues to push the boundaries of customer service, delivering a human-centric experience that surpasses customer expectations and empowers users to

all-round tablet that packs impressive features to support their work, education, and entertainment needs. In H1 2023, our focus will be the Magic series, which will include a foldable device and ﬂagship.

The Honor Pad 8 comes with the latest Honor Magic UI 6.1 based on Android 12, offering a range of enhanced, customised features to provide a smart experience to users. For example, with Honor Share, the tablet enables speedy crosssystem file transfers between an Honor tablet, smartphone and a PC supporting Honor PC Manager, keeping users ahead and connected. Meanwhile, with upgraded multi-screen collaboration capabilities, the Honor Pad 8 empowers users to multitask conveniently between the tablet and smartphone.

tablet also supports App Extender, enabling users to use two apps simultaneously using one screen. Users can switch between apps in parallel or horizontal and lock one side of the screen when they need to focus on one task”

the new devices at the launch event Visitors experiencing new features on the Honor 70 smartphone BRAND VIEW

consistency across our entire product line. In addition, we strive to provide the best-in-class user experience for users all around the world.

Encouraged by the unprecedented success of our tablet portfolio in China,

What Honor products are in the pipeline?

we are launching the Honor Pad 8 in September. The Honor Pad 8 is a testament to our continuous efforts to innovate and introduce industry-leading tablets to bolster our intelligent internet of things (IoT) ecosystem to deliver seamless navigation between devices for all our users. The Honor Pad 8 is primarily targetted at consumers looking for an

The tablet also supports App Extender, enabling users to use two apps simultaneously using one screen. Users can switch between apps in parallel or horizontal and lock one side of the screen when they need to focus on one task. Furthermore, it offers multi-window viewing, allowing users to multitask using a split-screen, boosting efficiency no matter if users are working, enjoying movies and games or reading. Up to three different apps can run on the same screen simultaneously, giving users an enhanced experience of running multiple tasks independently.

HONOR 70 INTRODUCES THE FIRST-EVER SOLO CUT VLOG MODEANDFOLDABLEWILLMAGICFOCUSFORFEATUREH12023,OURWILLBETHESERIES,WHICHINCLUDEADEVICEFLAGSHIP

The

How does Honor Pad 8 deliver an all-round intelligent experience?

Exploring

onor recently announced the launch of its latest addition to its high-end N series smartphone line-up – Honor 70. The new smartphone features a strong triplecamera system and a symmetrical curved design. It also introduces innovative performance and functionality while providing a rich user experience. For example, the industry-first solo cut vlog mode feature produces portrait vlogs that track a specific person in a group video and two high-definition videos

simultaneously. HERE’SADETAILED REVIEW OF THE PRODUCT IN THE BOX Honor 70 smartphone Honor SuperCharge Sim eject tool Type-C cable Quick start guide Protective cover Protective film THE SMARTPHONE IS AIMED AT TODAY’S SOCIAL CAPABILITIESANDLEVELSEEKGENERATION,MEDIAWHOFLAGSHIP-PHOTOGRAPHYVIDEOGRAPHY

Hands-on review: Honor 70

more light for brighter and more detailed pictures, especially in backlit and night environments. The smartphone also has a 32MP selﬁe camera at the front.

a speciﬁc person in a group video. Even when the subject is out of the frame, it can automatically return when it is back, taking creative vlogging to a new level.

Designed to meet the di erent tastes of the fashion-conscious customers, the Honor 70 is available in colours including iconic crystal silver, midnight black, emerald green, and icelandic frost.

BATTERY LIFE

The Honor 70 runs on Honor Magic UI 6.1, which is based on Android 12. But it’s the brand’s GPU Turbo X engine that maximises performance. The smartphone has a storage space of 8GB RAM and 256 ROM.

Furthermore, it also o ers 4k video recording in normal video recording at 30 frames per second. In addition, with a seamless focus switch feature, users can change the focus of the video to spotlight a di erent subject at the tap of a ﬁnger.

The device is packed with a selfdeveloped single-cell dual-loop battery design. With a 4800mAh battery, the smartphone delivers a fast-charging experience with the 66W Honor Wired SuperCharge technology, where users can charge the device to 60 per cent from 3 per cent in just 20 minutes.

Honor 70 5G (8+256GB) version is available for Dhs1,999 through Honor Online Store, Sharaf DG, Emax, Carrefour, Jumbo, Lulu, Axiom, Amazon, noon and other retail stores. Meanwhile, Honor 70 5G (8+128GB) version is available at the Honor Online Store for Dhs1,849. Both versions come with Google Mobile Services.

CAMERA CAPABILITIES

DESIGN AND DISPLAY

THE SMARTPHONE IS THICK7.91MM DELIVERSTHEANDSMALLTENDSSTYLISHHAS178GAPPROXIMATELYINWEIGHTANDASLEEKANDFINISH.ITTOSLIDEINTOHANDBAGSPOCKETSEASILYSMARTPHONEA EXPERIENCEFAST-CHARGING WITH THE 66W HONOR TECHNOLOGYSUPERCHARGEWIRED IN JUST MINUTES2060% CHARGE BRAND VIEW

Continuing the curved dual-ring design of the N Series, the Honor 70 features an axisymmetric camera design. It is said to have drawn inspiration from the craftsmanship of jewellery design. The smartphone is 7.91mm thick, approximately 178g in weight and has a sleek and stylish ﬁnish. It tends to slide into small handbags and pockets easily.

The most important feature of this smartphone is that it introduces the ﬁrstever solo cut vlog mode, enabling budding creators to produce portrait vlogs using person autofocus tracking technology. Supported by the person re-identiﬁcation and person temporal tracking technology, this enables users to put the spotlight on

The smartphone features a 54MP Sony IMX800 primary video camera and is also equipped with a 50MP ultra-wide camera that doubles as a macro camera. It also features the Sony 1/1.49-inch Sony IMX800 camera sensor, which captures

ANDPERFORMANCESTORAGE

With a rounded corner super curved OLED display, the screen’s diagonal length is 6.67 inches. The smartphone has a 120Hz dynamic refresh rate, HDR10+ certiﬁcation, and a 100 per cent DCI-P3 colour gamut.

PRICING AVAILABILITYAND

Aspiring to participate in 24 Hours of Le Mans made me realise that racing professionally was a possibility, instead of just being a pipe dream. It was my door into motor racing, but what inspired me to do it professionally was the support and backing I’ve received from everyone at home and around me.

What have you learned from your experiences as a motor racing driver? I came into motorsport quite late in life, and when you go into something new, particularly in the world of sport, you always test yourself. You must be mentally sharp and physically strong, as you’re asking your body and mind to do things that you didn’t previously think were possible. I’ve learned so much about managing pressure

in racing situations; what you learn on the track is something that you can mirror in life. I’ve learned how to manage my time, make the right decisions, stay focused and set realistic goals. In fact, a ter every race, I ﬁnd myself learning something new.

ARABIA’S FIRST PROFESSIONAL FEMALE RACING DRIVER AND FOUNDER OF THEEBA MOTORSPORT, REEMA JUFFALI, TELLS US ABOUT HER JOURNEY, MEMORABLE WINS AND HER ULTIMATE GOAL– 24 HOURS OF LE MANS

Tell us more about your journey and its impact on Saudi and Arab women. When I got into motorsport, I was pursuing my passion and therefore, focused on my own personal journey. Initially, I didn’t really look at the bigger picture or think about the inﬂuence my career could have on others. Realising how much of an impact I’m making has been one of the biggest rewards of my career so far. By sharing my story, I’m giving people the opportunity to think bigger and aspire toward things that they didn’t think were previously achievable. Motorsport, particularly circuit racing, is quite new in Saudi Arabia, and I hope that what I’m doing will inspire both men and women to strive for more, even if it’s outside of racing.

Tell us how your family has inﬂuenced you. My family has inspired and supported me throughout my career, but my decision to become a racing driver was very much

gulfbusiness.com68 September 2022

On fastthetrack

my own. At the time, motorsport wasn’t popular in Saudi Arabia; I had to go out into the world, understand the sport and learn the ins and outs of it. The whole experience was very self-driven.

Tell us about Theeba Motorsport?

BY NEESHA SALIAN

Entering the world of motorsport was a learning experience. I didn’t know how to get started and had loads of questions about how I could get involved. Now, because of the position I’m in, people o ten ask me how they can take part. In the past, I didn’t feel like I had the right answers. This inspired me to create Theeba Motorsport

SAUDI

What inspired you to get into professional racing?

You recently had to retire from round one of the International GT Open in Hungary. How did that impact your ranking?

What are some of your most memorable moments?

SUPPLIEDPHOTOS: gulfbusiness.com September 2022 69

When I started my career, I was the first female racing driver to come from Saudi Arabia and I think one of the first milestones was racing on the streets of our capital, Riyadh, in a championship called the Jaguar I-PACE Trophy. It was my first race at home, and it was a very special moment for me. I then spent a lot of time honing my skills in racing singleseaters. Earlier this year, I participated in

What’s your big goal?

“I came into motorsport quite late in life, and when you go into something new, particularly in the world of sport, you always test yourself”

the Dubai 24 Hours, which was my first endurance race. I finished on the podium, and it ticked all the boxes for me; it felt like all my hard work was paying off. Founding Theeba Motorsport and its first win were also proud moments that I will never forget.

What’s next for you?

Any advice for women looking to join the sport?

Lifestyle / Auto

in May. I started the team to give people in Saudi Arabia the opportunity to learn more about the sport. After all the support I’ve received, I wanted to give back. I want to help elevate talent in the region, and Theeba Motorsport will provide a platform for them to learn, grow and eventually be part of an established racing team. I also think of the team as a bridge connecting Saudi Arabia to the rest of the world.

I’ve just finished racing at the 24 Hours of Spa, which is probably the biggest race of my career to date. We claimed victory in the Bronze Cup class at the race. It was a race that I was really looking forward to, as it was a chance to compete against some of the best drivers in the world. Looking ahead, I have very high hopes for the upcoming races at the Red Bull Ring and if we’re able to deliver strong results in the final three weekends, I think we still have the potential to take home the title. We’re currently evaluating several winter series that we can compete in the Middle East.

Before I started racing, I was primarily working in finance and investments. I still have an avid interest in business and investing.

Reema Juffali

I’ve gleaned quite a lot from my experi ences in motorsport. I’ve learned that I can be my worst critic, but at the same time, my biggest cheerleader. Self-belief is sometimes easier said than done, but I felt that it was important that I trusted my abilities when I first came into the sport. Entering a new environment, espe cially a space primarily dominated by men, can be intimidating at first, but it’s important that you put your best foot forward and remember that you’re here to learn. It’s important to be true to your self and believe in your abilities, but also be patient.

in the championship, 20 points behind the leaders, but there are still six races to go and 60 points available. We’re very motivated for the second half of the season and we’ll be giving it our all.

If not racing, what would you be doing?

My main aspiration is to com pete in 24 Hours of Le Mans. Le Mans was the race that showed me that it wasn’t too late to pursue a career in mot orsport. I saw drivers who were older than me, competing in this world-class race and finishing on the podium and it made me realise that if they can do it, I could too.

After having a difficult race at Spa in Belgium, I think we all had very high hopes for Hungary, but unfortunately, an accident in the first race meant that we had to withdraw from the rest of the weekend. Up until that point, we were performing very well so it was frustrating to end our weekend in that way, but I think the challenges we’ve faced have made us stronger as a team. In our class, we’re currently second

“We wanted to create a strategy that looked to the next 200 years, and that is what Beyond 100 signiﬁes. It focuses on becoming a sustainable luxury brand by 2030. In fact, we aim to be the leader in sustainable luxury mobility,” says Leopold.

Best in class

propulsion, Leopold states that the Volkswagen Group is carrying out a study, but Bentley is focused solely on investing in Sustainabilityelectrification. will play a key part in modern automobile production, and Bentley aims to be a leader. Vegan interiors and recyclable materials are elements one may expect to find in the first batch of Bentley’s BEV products.

He further emphasises the brand’s ambitious product roll-out plan, which features the launch of ﬁve new batteryelectric vehicles (BEV) between 2025 to The2029.British auto giant also has a transition plan in place from a production standpoint.

In 2019, Bentley completed 100 years in the car-manufacturing industry. While the celebrations were marked by historic car parades and exclusive car unveilings, the British luxury carmaker also announced its ‘Beyond 100’ strategy.

Going green

A good half-year performance Leopold mentions that six to seven per cent

Gulf Business caught up with Richard Leopold, Bentley’s regional director for the UK, Africa, and the Middle East to know how the company is progressing on its path to electriﬁcation.

Bentley’s Beyond 100 strategy marks its move towards an entire model range powered only by battery from 2030. Richard Leopold, Bentley’s regional director for the UK, Africa, and the Middle East, tells us about the automaker’s focus on electriﬁcation, its half-year performance and new launches

BY SHIVAUM PUNJABI

gulfbusiness.com70 September 2022

“We’re developing a new production line in the factory at Crewe. We call it the ‘dream factory’ and that is separate from the internal combustion engine (ICE) production line. There will be BEV alongside ICE. It allow us to have a transition strategy. If some markets are slower or faster to adapt, we can produce more or fewer ICEs or BEVs,” explainsPlug-inLeopold.hybrid derivatives of Bentley’s products are in line to be introduced on the road to total electriﬁcation. As regards the development of hydrogen fuel-cell

Besides regional-specific customer experiences, the brand also promises to explore region-specific special edition variants. Called the Skyline edition, it has embedded motifs of the region’s skyline on the car’s interiors. The idea may have stemmed from an unusual request by a New York retailer, but now gets replicated in other regions such as China and Miami, and is now available in Dubai.

The recently announced Bentley Mulliner Batur also heralds the British automaker’s journey on the route to its ‘electric’ future. This special edition car showcases Bentley’s skill in customisation, personalisation, and coachbuilding.

Richard Leopold

“Besides thetheembeddededition,Calledspecialtothecustomerregional-speciﬁcexperiences,brandalsopromisesexploreregion-speciﬁceditionvariants.theSkylineithasmotifsofregion’sskylineoncar’sinteriors”

Bentley will also conduct more customer-oriented activities such as dynamic track driving sessions, with the new model launches. Talking about sales figures and profits, Bentley just reported a 124 per cent rise in operating profits in H1 2022 over the same period in 2021, recording an operating profit of

RevenueEUR398m.percar

The Batur is a sleek hard-top coupé, characterised by a new, minimalist design aesthetic. Beneath its bonnet lies a 6.0 litre, twin-turbocharged Bentley W12 engine – the luxury automaker’s iconic powertrain. Only 18 cars will be built, priced at $2m each, and they are already sold out.

Speaking of new model launches, Bentley has recently brought in new sporty and luxury-themed trim derivatives called the S and the Azure range, to its Continental GT and Flying Spur models, respectively across various international markets, including the Middle East.

Lifestyle / Auto

of global sales are registered in the Middle East. However, the importance of the Gulf market extends beyond sales ﬁgures, explains Leopold. “We have a lot of bespoke customer conﬁgurations for the the region. Our value per car is a lot higher in the Middle East compared to other regions.”

gulfbusiness.com September 2022 71

New launches

also climbed from EUR186,000 to EUR213,000 per car. This was achieved due to high levels of customisation and personalisation of cars by Bentley customers globally. Sales numbers by models were led by the Bentayga SUV which accounted for 40 per cent of the volume, followed by the Continental GT at 33 per cent, and then the Flying Spur at 27 per cent.

The new Bentley Bentayga EWB (extended wheelbase) with increased rear seat legroom has also been announced to please luxury car buyers who have spacious interiors on their primary list of demands.

SEPT 22

What inspired you to join houza after a successful career working for international giants such as Uber, Amazon, OLX, and so on?

A dedicated hub for the regional startup and SME ecosystem

The SME Story

A ter my initial career of advising companies and investing in successful tech ventures in the US and Europe, I returned to the UAE in 2012 and got my ﬁrst taste of entrepreneurship by starting a business in the automotive sector. While I failed, I’m proud of the great lessons I learned along the way that I carried forward with me in my career. Prior to launching Uber

What are some of the challenges that houza faces as a challenger portal?

on a challenger portal that's making its presence felt in the proptech sector and the journey of a Kuwaiti startup that is disrupting the toy and gifting segment

WeINTERVIEWshinethespotlight

I chose to join houza as it’s rare to get an opportunity to work with people you know and trust, and work on problems that resonate with you. I’m glad to be making my entrepreneurial comeback with the ‘challenger portal’ as my philosophy of challenging the status quo is mirrored by houza’s ethos and its value proposition.

to the listed unit. We surface just enough transaction data to property seekers at the right point in their journey to allow them to understand market pricing and activity. Finally, we host a selection of exclusive homes on houza you can’t ﬁnd anywhere else.

O the back of deep-rooted consumer pain points, our three core pillars address these head on: a quality search experience, unique data insights to empower seekers and access to first-to-market homes only on houza.

We onboard only the best real estate agencies with quality, unique listings and a superior customer experience. We maintain a high bar for veriﬁed properties so we know the agents have access

A ter nearly two decades of corporate work experience spanning from mergers and acquisitions and investments, to operations and marketing, all within the tech industry, I felt that I was ﬁnally prepared to pivot and add tangible value to an early-stage venture.

What is the core concept of houza?

gulfbusiness.com72 September 2022

in the UAE, I helped raise $3.5m in seed capital for tech startups in emerging markets, which exposed me to inspiring entrepreneurs and the problems they were trying to solve for their customers.

For real estate agencies, we also stand by quality, allowing agencies to rank highest on houza for quality, unique content, opposed to it being a bidding war between agents to feature highest on search results. We believe in giving everyone a fair chance for exposure. If you’re at the top of your game, you will be at the top of our page.

Turning challenges into opportunities

Our focus is to leverage our experience in online classiﬁeds and marketplaces to build products that solve recurring problems faced by both of these critical

As a startup, we have the uphill challenge of becoming top of mind with property agents and seekers in a market which already has strong incumbents that have been operating for multiple real estate cycles in the UAE. While houza is strengthening its footing in the industry, our ‘challenger’ position brings its own set of objections as well. This skepticism is expected whenever trying to challenge the status quo.

Jean-Pierre Mondalek, CEO, houza

What are some of the challenges you faced when starting o ?

Tell us about the latest funding round and how you plan to use it.

more than 250 agencies listed on houza, we will look to raise more capital to continue scaling our product andOurtech.plan is to empower real estate agents, build houza’s brand to become top of mind, and hire the best talent in the industry to join our mission and take houza to new heights.

Tell us about the co-founders of the company.

The SME Story

Ibrahim Al-Khulaifi, co-founder and CTO, Teeela

Our latest funding was a Pre-Series A funding round that raised $3.75m. It was led by Saudi Arabian investment ﬁrm Wealth Well and supported by strategic investment from Mad’a Investment Company, Al-Akeel family, and other prominent investors. The funding will be used to increase our presence and reach new audiences across the region, build our team and support product development.

What are your growth plans for houza?

gulfbusiness.com September 2022 73

We received seed funding towards the end of 2019, and then the pandemic hit. We saw a huge surge in orders and we simply hadn’t anticipated such rapid

growth overnight. We initially faced some di culties with fulﬁllment and the backend couldn’t deal with that volume of tra c. The team rallied to ﬁnd new, better ways to cope and that included investment in faster delivery, customised and personalised gi t wrapping, and extensive upgrades across delivery, automation and backend. The pandemic shaped us and helped improve our operations to the point that we could acquire new customers but also retain them through a great user experience. If people are returning multiple times, it means you are providing a valuable solution for those customers.

Now that we are seeing a healthy lead

Tell us about the latest funding round and how you plan to use it.

Since our founding in 2020, we have raised a total of $5.5m (with the most recent round held in Q2 this year) from

What are some of the key milestones of your business?

stakeholders. We aim to tell that story through thoughtful brand marketing and gain more awareness and consideration.

What inspired you to start this business?

the largest UAE real estate agencies, including Allsopp & Allsopp, Betterhomes and Driven Properties. With this initial raise, we have been investing in our product, tech, and sales e orts.

What is the core concept of Teeela? Teeela is built to provide families with the easiest, quickest, and most

Tell us about your expansion plans. The ﬁrst step is expansion into Saudi Arabia and UAE. We’ve built a strong model in Kuwait and believe that we can now target the $30bn gi ting market across the Middle East. We aim to be the number one choice for families when they are buying gi ts. Whether it’s a child’s birthday party or a special family occasion such as Eid, we want to be the ﬁrst place that people think of in the gi ting tractionspace.from

Initially, we built a website, but it became apparent that a mobile app would better suit the proﬁle of our customers, so we switched models. It took seven months to transition, but we tested, failed, learned and improved our o ering.

Growing up in the Middle East, we have witnessed the monumental transformation of shopping from o ine to online. As young Kuwaitis, we wanted to be a part of this change and identiﬁed gaps in the market we could help improve. The toys and gi ting segments are particularly interesting due to the high expectations of customers, as they are shopping for their child or loved one. But this also means if you get the experience right, you see incredible customer satisfaction. We identiﬁed an opportunity to transform the toys and gi ting segment, and much like Amazon started with books, we set out a few years ago to perfect the family gi ting experience.

personalised gi ting and toy buying experience. Through a dedicated app that is easy to navigate, customers can browse tens of thousands of gi ts, with ﬁlters and recommendations to simplify the buying process. Once a customer has selected their chosen gi t, we provide uniquely personalised and customisable wrapping. It’s online gi ting made simple.

We’ve known each other since we played together as children growing up in Kuwait. As we got older, this bond grew into sharing our common interests in entrepreneurship. All of us had our own ventures before Teeela. Our CEO Abdulwahab had a marketing agency and printing press, our CMO Yahya created content for YouTube, and I’ve developed a ﬁntech solution for students. We always talked about our experiences running our own solo projects, so when we had the opportunity to build Teeela together, we jumped at the opportunity.

04. PERSONALISED EXPERIENCES

03. USE DATA TO DRIVE SUCCESSFUL CAMPAIGNS

easily access insights through free software, open-source tools and inexpensive solu tions designed exclusively for them. These tools can help them identify opportunities quickly and easily, while helping them reduce costs and making data-driven deci sions to grow the business.

Jadd Elliot Dib, CEO andPangaeafounder,X

With smaller budgets for marketing, SMEs need to be careful about where and how much they are spending. Targeted market ing campaigns are especially useful to them. Data analysis can help reveal and unlock marketing insights so that such campaigns are not only effective, but also reach a wider audience even in newer markets. For example, a small business owner might discover a new demographic or one that seemed irrelevant. There are various online tools that help understand who your customers are, and what they are searching for.

One of the greatest achievements of data analytics is reducing or eliminating errors, especially those made with data input and management. This is just a matter of look ing at any given information in different ways and trying to identify what is hap pening. For example, your system might auto correct information, and in doing so provide erroneous information. An inten sive analysis can help business owners understand what is going wrong, where, and, at which stage.

Globally,

02. HELP SAVE TIME AND MONEY

As such, SMEs would wonder if a data analysis strategy is even worth the invest ment. The simple answer is yes. It is a much-needed tool that offers numerous benefits, ranging from helping the com pany save time and money to gaining realtime insights and more. Studies have also suggested that data analysis could increase workplace productivity.

The rapid expansion of mobile data, cloud computing, machine learning, and internet of things (IoT) will continue to power the surge in big data spending, with the global Big Data market projected to generate $103bn in revenue byPopular2027.

the big data and ana lytics market is worth $274bn.

We look at five ways at how data analytics can serve small and medium enterprises

opinion might suggest that data analysis is only used by big organisations that deal with a large amount of data every day, however, the benefits of data analy sis extend to smaller businesses that need insights to boost their growth. Sometimes, the challenges experienced by small and medium enterprises (SMEs) are in a way similar to those faced by large corporates.

With fewer resources and employees han dling multiple responsibilities, SMEs need to use tools that enable them to use time effectively. Employing machine learning, automating processes and mapping insights for business strategy can all increase the efficiency of a business. Not only time, but saving money is also a big priority for small business owners. Small businesses can

gulfbusiness.com74 September 2022 The SME Story

Here are some of the key ways in which data analytics can assist SMEs:

05. SOLVE ERRORS

Consumers want more personalised and relevant experiences, and such experi ences are difficult for small businesses to provide. Bigger conglomerates can do it easily because they have the nec essary resources and a large amount of data to operate with. However, SMEs can avail this opportunity through realtime insights and structured data extrac tion that analysis systems provide to serve their customers.

Is data the real deal?

Data analysis enables the use of details and information in real-time. This would not

only help companies predict performance or outcomes, but also allow them to deal with cur rent events and develop ments. For example, if a product is not as popular among consumers, the company could use the findings provided by a data analytics system to stop produc tion. These details can be crucial for SMEs because it can help eliminate ballooning costs and ineffective solutions that hamper the company’s growth.

01. ALLOW INTERACTIONSREAL-TIME

THE DATA MARKET IS TOPROJECTEDGENERATE $103BN IN BYREVENUE2027