JANUARY – MARCH 2022 # 177 UAE AED 20 KSA SAR 20 BAHRAIN BHD 2 KUWAIT KWD 2 OMAN OMR 2 LEADERS FOR 2022: WE PRESENT THE REGION’S FINEST WHO HAVE FOUND SUCCESS OVER THE PAST YEAR P18 NAVIGATING A CRISIS. Nour Suliman, CEO of DHL Express MENA talks CEO Middle East through how his firm navigated the unprecedented logistics crisis caused by Covid-19 P12CONTENTS JANUARY – MARCH 2022 CEO MIDDLE EAST 3 JANUARY – MARCH 2022 # 177 JANUARY – MARCH 2022 #177 UAE AED 20 KSA SAR 20 BAHRAIN BHD 2 KUWAIT KWD 2 OMAN OMR 2 LEADERS FOR 2022: WE PRESENT THE REGION’S FINEST WHO HAVE FOUND SUCCESS OVER THE PAST YEAR P18 NAVIGATING A CRISIS. Nour Suliman, CEO of DHL Express MENA talks CEO Middle East through how his firm navigated the unprecedented logistics crisis caused by Covid-19 P12 28 WELLNESS More and more people are realising that job titles, money and status are not enough, believes wellness expert Nancy Zabaneh 32 BUSINESS CLUBS Hussain Sultan Al Junaidy, Capital Club Dubai's founding member, shares his formula for success 12 2832 NAVIGATING A CRISIS Nour Suliman, CEO of DHL Express MENA, talks CEO Middle East through how his firm navigated the unprecedented logistics crisis caused by Covid-19 COVER STORY4 CEO MIDDLE EAST JANUARY – MARCH 2022 CONTENTS 36 MANAGING PEOPLE Managers need to embrace coaching to get the best out of their team, says Sallyann Della Casa, founder of GLEAC 40 WOMEN EMPOWERMENT While female-focused legal reforms are driving positive change in the MENA region, women are still fighting for their seat at the leadership table 46 HOSPITALITY Former Wall Street banker Ahmass Fakahany talks about his upcoming restaurant in Dubai – 11 Woodfire 48 TIMEPIECES The finest in watchmaking is here 18 36 46 40 48 LEADERS FOR 2022 In this special section, CEO Middle East highlights some of the biggest leaders in business that have embraced transformation, thrived and found success over the past yearTHE MOST IN-DEPTH COVERAGE OF THE MOST EXCITING COUNTRY ON THE PLANET. VISIT CATERERMIDDLEEAST.COM/SAUDI-ARABIA NEWS. INSIGHT. FEATURES. INTERVIEWS.6CEO MIDDLE EAST JANUARY – MARCH 2022 EDITOR’S LETTER H ello and welcome to the January 2022 issue of CEO Middle East. We begin the year with the increasing optimism that the world is finally emerging out of the Covid-19 pandemic, while worries remain regarding new variants, chiefly omicron, the business sentiment continues to appear buoyant. Throughout 2021 the economic atmosphere has continued to recover, and I personally have met many in the region who would now argue that they are busier than they ever were pre-pandemic. In this vein, we dedicated a portion of our CEO leaders for 2022 section (page 18) on the outlook for the rest of year. Some of the biggest names in business were kind enough to share their thoughts with CEO Middle East on what the future holds and the lessons learned from the challenges of 2021. While optimism remains high for future success, the year is unlikely to remain entirely positive. In particular, supply chain and inflation-related fears will continue to plague businesses throughout 2022, as the world continues its march towards a semblance of a “new normal”. On page 10, we dove into this subject in more depth, highlighting the critical issues that CEOs have called out as challenges in the year – both globally and regionally. The challenges that the supply chain has faced since the onset of the pandemic have been unprecedented in their nature and scope. Logistics firms were faced with the task of managing fundamentally broken supply chains. Overcoming these challenges was a significant portion of the conversation held for this month’s cover story with DHL Express MENA CEO Nour Suliman (page 12). Suliman highlighted customer centricity and technology as the keys for navigating its way through the crisis. Broadly, the pandemic heightened social isolation and increased our dependency on technology to accomplish personal and business-related communication. This trend towards increased digitalisation is something that is unlikely to recede anytime in the near future, with work-from-home and flexible-working initiatives here to stay. For businesses to succeed in the future and compete, an adapting to this trend will undoubtedly become a necessity. However, particularly in large organisations, businesses can be slow to change and embrace new ways of working. Consummate communication in the C-suite will be essential, and this issue is covered further later in this issue, turn to page 26 for deeper insights. The social isolation caused by Covid-19 has also placed mental wellbeing in the spotlight like never before. I’m encouraged to see that this is an issue that has continued to be taken with a greater degree of significance, with meaningful discussions taking place on how to improve wellbeing in the corporate world. In 2022, this subject will continue to be covered extensively by CEO Middle East as we uncover the nature of the future of work. This subject is examined in greater detail on page 28. Share your views on thought leadership and innovation by getting in touch: matthew.amlot@itp.com QUESTIONS? COMMENTS? MATTHEW AMLÔT Editor @MatthewAmlot NEW YEAR, NEW OPTIMISM Business fi gures from the region have expressed confi dence amid current challenges JANUARY – MARCH 2022 CEO MIDDLE EAST 7 To receive your copy delivered directly to your door, subscribe online at www.itp.com/subscriptions The most important business people and CEOs talk to the most important magazine The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. 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MEDIA8 CEO MIDDLE EAST JANUARY – MARCH 2022 Climate change, the energy transition and volatility should headline investor concerns in 2022 LOOKING AHEAD: 2022 WILL BE A GREENER YEAR FOR INVESTORS lobal markets continue to claw their way back from havoc wreaked by Covid-19, but with the low-hanging wins won driven by emergency interventions, further recovery is expected to slow, and with new vari- ants – like Omicron – still spreading, the pandemic still threatens market stability. Growing concerns over climate change have fuelled a sentiment shift in how investors approach their portfolio, and that shift is likely to ac- celerate over the coming years. But before moving forward entirely as the world looks to a net-carbon future, investors will still have to grapple with the fallout from the pandemic. Rising inflation, one of the major trends to take rise out of the pandemic, has investors worried, and new costs as- sociated with the green energy transition, and renewed global focus on equitable growth and income redistribution will create a fertile ground where even higher inflation rates could take root, accord- ing to State Street Global Advisors’ 2022 Global Outlook Report. “High growth and high inflation will extend into 2022; however, we think infla- tion will steadily decline from Q2 2022 onward. Despite our expectations for a moderation in inflation in 2022, we expect a more hawkish stance from global central banks,” the report’s authors wrote. The authors caution that while policy rate increases in 2022 seem to be inevi- G BY LAUREN HOLTMEIER OUTLOOK 2022JANUARY – MARCH 2022 CEO MIDDLE EAST 9 OUTLOOK 2022 table, especially given the propensity of inflation, there’s a chance that government yields have moved too high too quickly for a few reasons. “First, we think the longer-term structural low-growth, low-yield world will not change materially as Covid-19 transi- tions from pandemic to endemic in the coming years. Second, while supply chain challenges and well-above-target inflation are expected for the next six to 12 months (at least), we believe these inflationary pressures will ultimately dissipate. Finally, while short-end yields have shot higher, long-end yields have been more anchored, leading to a bear flattening year-to-date,” the report said. Supply chain disruptions have been a cataclysmic shock to routes worldwide, driving prices of certain goods through the roof. Shipping costs also rose dra- matically and the global shipping and air freight industry has been in disarray as a result – though some problems are slowly normalising. Investors should be on the lookout for volatility While global markets are looking better, risks remain. State Street advisors put inflation at the centre of risks to their expectations. They caution that if current trends continue, central banks may have no choice but to begin hiking policy rates quickly, which would dampen the recovery. “High levels of inflation plus dra- matically slowing growth is the worse-case scenario, as there are no easy solutions to deal with stagflation,” the report said. The other present risk is volatility, which State Street reported “is making a comeback.” Aggregate levels of volatility have settled in at a higher level in 2021 than has been experienced in recent years, and heading into 2022, caution is warranted. “In light of these risks – and consider- ing the growing dispersion in performance with respect to the fundamental measures, including earnings, that are most likely to drive returns – we see an opportunity for active management in the coming year,” the report said. And while “stubbornly low” interest rates are likely to persist, investors are considering alternatives to fixed income that may offer more return potential. However, fixed income can still play a critical role in diversifying portfolio exposures. “The asset allocation of the typical portfolio has evolved far beyond the 60 percent equities/40 percent fixed income standard of yesterday. Incorporating alternatives in a portfolio can bring many risk and return benefits but can also introduce liquidity constraints. The il- liquidity of many alternative investments creates challenges for investors seeking to efficiently implement asset allocation shifts and to meet ongoing cash flow needs,” the report said. The low-carbon question Another potential shock that investors need to prepare for is the gradual transi- tion to a low-carbon economy. “Recent events, country-specific incentives, and multiple positive feedback loops are setting the stage for faster movement toward decarbonisation in 2022 and beyond.” Consumers and investors alike are be- coming more environmentally conscious, and as countries set targets to be net zero by 2050, the shift to greener fuels and industry is likely to accelerate. “Investors are facing a potentially parabolic rise in climate awareness in com- ing years, and positioning for this reality is prudent for portfolio management. The drivers of increasing interest in decarboni- sation include the outcomes of COP26 and many positive feedback loops that will push climate even more to the forefront.” There are, however, opportunities for investors within the shift to green as they’re likely to benefit from greater disclosure agreements. Ultimately though, they’ll need to integrate climate risks and opportunities into financial models to properly understand their carbon exposure. The last year was marked by steady recovery, and while that recovery is set to continue in 2022, it may be slower. And looking further ahead, investors, even the already environmentally conscious ones, will need to take greater consideration of the carbon footprint of their portfolio, paving the way for adjustments to be made to promote greener industry and investing. “INVESTORS ARE FACING A POTENTIALLY PARABOLIC RISE IN CLIMATE AWARENESS IN COMING YEARS” $1 TRILLION The worth of green bond issuance expected by 2023, according to the Climate Bonds Initiative China US India Russia Japan Germany Iran South Korea Indonesia Saudi Arabia Source: BP Statistical Review 2020, World Bank data, 2019 Absolute emissions (Gigatons, CO2)Next >