< Previous10 CEO MIDDLE EAST JANUARY – MARCH 2022 CEOs around the world are very optimistic on economic growth in 2022 THE BULLISH 2022 OUTLOOK ore than 80 percent of global chief executives across 44 industries are optimistic that economic growth will remain strong in 2022, however, it won’t be without a high level of uncertainty and volatility, accord- ing to a survey by YPO Global Purse. According to the report, which sur- veyed 1,700 chief executives in 101 coun- tries, companies are optimistic about two critical business factors – revenue growth and hiring. Thirty seven percent of those sur- veyed reported a 20 percent increase in revenue or more since the beginning of 2021, while only 17 percent said they saw a decrease of 10 percent or more since the start of the year. M BY LARA ABOUELKHEIR OUTLOOK 2022 Recovery. Things are looking up for many companies when it comes to two critical business factors: revenue growth and hiring, according to the YPO Global PulseJANUARY – MARCH 2022 CEO MIDDLE EAST 11 OUTLOOK 2022 Hiring has also picked up, with 38 percent of respondents experiencing a 10 percent increase or more in the number of employees since the beginning of 2021, though 45 percent of firms said their total head count is about the same as it was in early 2021, and 16 percent said they saw a decrease. However, the global labour short- age continues to pose challenges for many businesses, with 67 percent of respondents stating it is somewhat or very difficult to find employees and 57 percent reporting the same levels of difficulty when it comes to C-suite and executive hires. Reem Osman, regional CEO of Saudi German Hospital, indicates two factors contributing to the shortage of global labour – competition in labour markets and the type of labour required. “Is it skilled labour or unskilled labour that is needed? Do they need heavy training or are they unskilled and can be trained very fast and won’t need a license to practice like in the Gulf’s medical sector?” she says. With increasingly competitive labour markets and rising demand for skilled labour, employees are at an advantage, according to Osman, compelling them to join workforces in countries that offer greater advantages. “Some countries might provide bet- ter salaries, career paths, or benefits, so labourers will prefer to work in some countries over others, forcing them to leave their home countries,” says Osman. Using the example of the health- care sector, Osman shares that sudden shortages in manpower are also not easy to account for or accommodate due to regulatory and licensing requirements for new staff, stating: “This was seen at the beginning of Covid where, all of sud- den, there was a high need for medical staff globally. So, by default, there was a shortage in manpower and medical staff globally.” While only 1 percent of executives believe employees are more productive at home than in office, 74 percent of surveyed business leaders shared that some form of flexible work arrangements will become more permanent. With pandemic pressures taking their toll on teams, businesses are also taking steps to improve mental health benefits, with 35 percent reporting some type of mental health investment or strategy for employees and 16 percent saying they don’t have one now but plan to add one. However, prospects for a mental health work strategy in MENA business- es remains low, with 72 percent of MENA chief executives reporting that they are less likely to have a plan set in place. Looking at the world of cryptocur- rency, the report illustrated that only a minority (28 percent) of global busi- ness leaders are buying into cryptocur- rencies, with 13 percent planning to in the future, and the majority (60 percent) sharing that they have no intentions to invest. The majority (58 percent) of chief executives leaning into crypto were under the age of 35. Heading into 2022, YPO member chief executives shared that all business leaders should keep their eyes focused on these key management issues: r Improving employee engagement and work culture/retention. r Exploring alternative cash streams and protecting existing cash flows. r Preparing for the impact of inflation. r Planning for any future supply chain issues. r Understanding evolving customer needs. “BY DEFAULT, THERE WAS A SHORTAGE IN MANPOWER AND MEDICAL STAFF GLOBALLY” 34% The proportion of 1,700 CEOs surveyed who said they have a very favourable outlook for their businesses for 202212 CEO MIDDLE EAST JANUARY – MARCH 2022 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 BY MATTHEW AMLÔT COVER STORY ast year saw the entire world come to a standstill in the face of a global pandemic. Almost all nations and regions went under lockdown by what would become a global crisis of epic proportions. Busi- nesses and economies were put under tremendous strain, and express and logistics companies were no exception. “Our business relies on express deliveries; our core objective is to de- liver shipments from point A to point B in minimum possible time. This is both our value-add and what deter- mines our competitive advantage,” explains Nour Suliman, CEO of DHL Express MENA. L The right mix. Agility and a people- first approach are the winning formula for DHL’s business resilience and operational effectiveness during the pandemic, says Suliman14 CEO MIDDLE EAST JANUARY – MARCH 2022 As Covid-19 spiralled out of con- trol, borders closed and flights were grounded, the express and logistics sector was faced with an unprece- dented situation. Broken links, delays, access to reduced airfreight, and concerns over employee safety put a hamper on service continuity. Although initially DHL Express was equally af- fected, the company adapted quickly to resume operations and meet the im- mediate demand for worldwide personal protective equipment (PPE) delivery. “DHL has a policy of ‘first in, last out’ in any crisis. Even in wars and natural disasters, we don’t give up and keep on doing what we can,” says Suli- man. “As a global company, epidemic and pandemic scenarios are an integral part of our ongoing risk planning. We have robust contingency and business continuity plans in place to prepare us for every eventuality, even during emer- gency situations.” After the initial shock and a short period of reorganisation, DHL’s regional and global hubs went into overdrive to deliver critical goods. Teams worked around the clock to receive, process and deliver PPE, respirators, and medicines, among other general ecommerce goods for businesses and individuals. According to Suliman, everyone at DHL was moving at double speed, even under very difficult conditions, because a timely response was critical to getting essential supplies to their destination. “In such a scenario, DHL’s expansive air and road fleet and global network of gateways and hubs, facilitated an effective supply chain. We managed to connect the different production loca- tions to hospitals, doctors and citizens across continents and regions, reaching even the most remote locations. In the first few weeks of the pandemic, DHL’s planes were the only ones flying around the world,” he says. At the same time, the company had to deal with another massive logistical challenge – making sure that business goes on while its staff were adequately protected from the virus. From the customs teams to operations employees, couriers, and customer service agents, everyone had to adapt to entirely new business processes and routines almost instantaneously, and still manage to handle the thousands of shipments pouring in daily. “This was an extremely challenging task because the volume of goods that required customs clearance, processing and delivery was huge. On top of that we had to modify our entire network and operations in ways that would nor- Delivering results. The logistics giant started to rely heavily on its own air fleet to make up for cargo capacity COVER STORY | NOUR SULIMANJANUARY – MARCH 2022 CEO MIDDLE EAST 15 NOUR SULIMAN and stayed close to our customers,” explains Suliman. The global express and logistics gi- ant also started to rely heavily on its own air fleet to make up for cargo capacity while investing in new Boeing 767-300F freighters to satisfy the growing demand for time-definite express shipments. Today, as the world has started to move into a post-Covid recovery phase, DHL has taken note of the lessons mally have taken us years of planning and evaluation,” says Suliman. “And to further complicate matters, the teams had to deal with constantly changing customs and travel regulations. But everyone stepped up, whether working from home or carrying on with their du- ties at the hubs and service centres, or, delivering to customers; they organised themselves because they wanted to help others and they knew hospitals, doctors, citizens and customers were relying on our deliveries.” Ecommerce spikes amid lockdown In 2020, DHL’s global ecommerce volumes reached historical peaks, citing a 35 percent spike. Shipment quantities jumped by more than 50 percent compared to 2019, as a result of extended store closures, social distanc- ing and lockdowns which forced people to migrate to online shopping. The same trend was seen for DHL’s cross-border ecommerce in the MENA which jumped by 77 percent. As the pandemic took its course, the company continued to navigate through volume surges, reduced manpower, and shipment backlog, while making drastic adjustments to its business processes. And with flights grounded, DHL was faced with sudden loss in commercial belly space. “It was absolutely necessary for us to put the health of our staff on the same priority list as business continuity because their mental and physical state was critical to sustain smooth running of operations. Our regional hubs were inundated with shipments, and because of border closures, we had staff stuck abroad which tested our handling and delivery capabilities. “But we were transparent and proactive in ensuring all staff stay safe, informed, and well prepared to tackle these scenarios. Every single team mem- ber did an outstanding job in fulfilling their duties, they encouraged each other learned and is setting clear priorities and a new way of working. Agility and a people-first approach have been deemed as the winning formula for DHL’s busi- ness resilience and operational effective- ness during this crisis. According to Suliman, first and foremost comes the wellbeing of the employees and DHL plans to continue to focus on bettering itself as a company to keep up with the needs of its people. “Improving the external operations is important, but it is just as important to foster a loyal internal community which will go over and beyond to guar- antee business continues to run as usual and sustain a superior customer service. At DHL we have consistently prioritised a culture of unity and trust; we foster a supportive work environment where people are motivated, encouraged and feel safe and protected. This ensures 77% The rise in DHL’s cross-border ecommerce in the MENA region in 2020 “IN THE FIRST FEW WEEKS OF THE PANDEMIC, DHL’S PLANES WERE THE ONLY ONES FLYING AROUND THE WORLD ” Industry leader. DHL has managed to navigate the pandemic due to its robust contingency plans and a strong, resilient network16 CEO MIDDLE EAST JANUARY – MARCH 2022 COVER STORY | NOUR SULIMAN that they are eager to come to work every day, and to give it their all even in the most challenging circumstances.” Focusing on the customer is key Customer-centricity is also top on DHL’s agenda and more important than ever before. Suliman explains that the post-pandemic work model has changed drastically, and so have consumer be- haviour and buying habits. These trends have accelerated ecom- merce in the MENA and globally which is expected to continue on its double- digit trajectory in the foreseeable future. “The new normal and emerging trends in retail and technology have revolutionised customer loyalty. Brands need to work extra hard to demonstrate their commitment to customers instead of vice versa. In our industry we know this all too well. Logistics is a very competitive business; you are only as good as your last delivery and we get thousands of opportunities on a daily basis to succeed or fail. DHL made a conscious effort many years ago to place customers at the forefront of its value system and we need to continue to excel in this regard.” Customer-centricity is a critical part of DHL’s training efforts and through its ‘Insanely Customer Centric Culture’ (ICCC) model, it integrates all staff, customer-facing or not, in the DHL philosophy of giving customers the high- est priority, thinking beyond services and taking personal matters to heart. ICCC serves to unify employee mind- sets so they understand that meeting and exceeding customer expectations is everyone’s responsibility and a mandate every single day. “The fact of the matter is, if you don’t obsess about your custom- ers, you will become obsolete – the customer needs to be at the centre of everything. Customer centricity starts and ends with people – we must con- stantly drive and inspire our teams to have their customers’ success as their ultimate goal,” explains Suliman. And in this regard, Suliman believes that to be truly customer-centric, you need to make it your corporate mission to help customers achieve their business goals. “If we are to continue to be suc- cessful, our customers need to succeed first, and our value-add to the customer is to do everything possible to ensure that happens. This means thinking less about how much you are selling and more on how a product or service helps customers thrive in their businesses. It requires a mindset away from operation- al to placing the customer at the core of the process and developing outwards from there.” Suliman cites the challenges faced by the retail industry, a growing segment of DHL’s B2C business, which is facing rising pressure to meet the rapidly- evolving demands and high expectations of consumers in all aspects, be it price, product, or experience. “Technology and ecommerce are sat- urating the retail market with access to endless brand choices and few barriers to entry. Retailers are constantly struggling for the attention of consumers who place great emphasis on the experience they Innovation. Suliman says DHL Express needs to continue to innovate and integrate new technology in its service offering 35% The growth in DHL’s global ecommerce volumes in 2020JANUARY – MARCH 2022 CEO MIDDLE EAST 17 NOUR SULIMAN receive throughout the journey, expecting seamless interaction and personalisation from brands at all times.” According to Suliman, the growth of ecommerce means that the logistics industry will have an even bigger role to play in maximising e-fulfilment and redesigning the customer journey to lessen the cost burden on retailers and help them stay competitive. Especially in last-mile delivery, constant inno- vation in solutions will be necessary to deliver faster, conveniently and at lower cost. “This is not an easy task and requires persistent listening, adapting, and re-engineering. It also requires both parties to work hand in hand to co-inno- vate,” he explains. Technology is the future Next on the list of DHL’s priorities is technology. Technology innovation and digitalisation is something DHL was heavily focused on from before the crisis, but this too has been accelerated. According to the MENA CEO, further investments will be essential to improve both DHL’s offering to its customers and the work of its employees. Expectations for last-mile delivery innovation remain high as the con- venience of online shopping continues to increase in popularity. Ecommerce has been a big benefactor of the pandemic, and according to Suliman, those who re- cently joined the world of ecommerce and have discovered the ease of purchasing online, and the vast choices available on the digital marketplace, will most likely stay even after the pandemic ends. “Last mile delivery is a critical component of the customer journey. We need to continue to innovate and integrate new technology in our service offering to ensure our customers are spoilt for choice in how and when they receive their shipments. The more flexibility, options and control we give them, the more seamless their delivery experience will be.” Suliman also explains that the pandemic heightened the urgency for improved health and safety in the work- place and highlighted the need for faster integration of automation technologies to optimise staff wellbeing, performance and productivity. “Certain AI and robotics innovations were specifically adopted during the pandemic to maintain social distancing in the workplace,” he says. “Moving forward, we will also be looking at technology that facilitates manual activity and reduces risk of injury and fatigue.” The operational disruptions caused by the pandemic also brought into focus the need for enhanced data capabilities in express and logistics to boost resilience. “In the face of unpredictability, access to data and analytics are critical for better planning, visibility and effi- ciency. Especially for complex opera- tions such as moving goods around the world, any unexpected change would no longer be a disaster for the delivery journey if the right insights are avail- able and action can be taken instanta- neously,” explains Suliman. While the pandemic may be wan- ing, its effects are still lingering and Suliman believes this is the right time to reflect on the performance of the company, and plan for future crises. “DHL managed to navigate Covid-19 because we were equipped with robust contingency plans and a strong, resil- ient network, and because our people were determined to keep on delivering; that’s not to say that we did not face any hurdles. But we need to learn from our experiences, build on our strengths to better prepare us in the future.” “LOGISTICS IS A VERY COMPETITIVE BUSINESS; YOU ARE ONLY AS GOOD AS YOUR LAST DELIVERY” Workforce. DHL has consistently prioritised a supportive work environment where people are motivated, encouraged and protected18 CEO MIDDLE EAST JANUARY – MARCH 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 year T he business landscape has continued to be shaped by the Covid-19 pandemic over the past year, with industries responding differently to the unique challenges wrought by the virus. While some sectors have found success throughout the pandemic, others have faced tough challenges in the face of unprecedented economic upset. Business sentiment appears to have improved over the past year, with leaders indicating that 2022 could be even further improved as the virus recedes, variants withstanding. The upset that Covid-19, and ensuing lockdowns, caused on the global economy has likely changed the face of business permanently. Leaders continue to indicate that working from home, digitalisation and increased levels of flexible working are trends that are here to stay. Indeed, technology has been highlighted as critical to adapting to the world’s “new normal” and overcome fresh industry challenges. Supply chain issues continue to plague businesses, with leaders increasingly looking to shore up procurement and build resilience to prevent any further disruption. In the Gulf, the rapid recovery in commodity prices has resulted in positivity for the region, with some businesses booming at pre-pandemic levels, although the risk of further disruption by new Covid-19 variants still looms large. In this special section of CEO Middle East we have highlighted some of the biggest leaders that have managed to embrace the challenges of the past year and get their take on what 2022 holds. Our leaders come from across the business spectrum, whether they be in healthcare, education, food and beverage, or travel, and I trust that you will find their thoughts on the future insightful. I would like to thank all of our entrants for sharing their thoughts with us. Given the limited space we have here in print, I would encourage all of our readers to visit the digital edition of this list to enjoy an expanded set of questions and answers from each leader. MATTHEW AMLÔT Editor CEO Middle EastJANUARY – MARCH 2022CEOMIDDLE EAST19 CEO MIDDLE EAST’S LEADERS FOR 2022 What is your outlook for 2022? We are optimistic about 2022. DIFC performed incredibly well in 2021 and we expect our growth trajectory to continue. Growth will come across various sectors, although we expect to continue seeing exponential growth from fintech and in- novation firms. DIFC will continue to help position Dubai as a global hub for innovation and technology to drive economic growth. We support these businesses through our comprehensive propo- sition at the DIFC Innovation Hub which includes education, accelerator programmes, regulatory and operating licenses, mentoring, networking and access to funding. We also expect to see new regulations relating to digital assets, venture funds and open finance, as well as accelerating adoption of ESG and sustainable finance. How have you adapted your business throughout 2021? DIFC supported its clients during the pandemic which provided a foundation for them to come back stronger in 2021. Beyond the pandemic, we continued to evolve our laws and regulations to ensure they are favourable and world lead- ing. This helped us attract new clients and many of our exist- ing clients expanded. This led to DIFC achieving its 2024 Strategy growth targets three years ahead of schedule with the total number of active registered companies exceeding 3,300. What fundamental changes has Covid-19 caused in your sector? Covid-19 stimulated change in the finance sector, just like it did in other industries. We have seen financial related firms accelerate their digital agendas and progress agendas that they may have been indecisive on in the past. The pandemic also saw firms and individuals become more principle centric. For example, environmental, social and governance controls are coming to the fore. At DIFC over 80 percent of our clients now factor them into their decision making. CEO, DIFC AUTHORITY UAE / FINANCIAL SERVICES Arif Amiri What is your outlook for 2022? We feel positive about the outlook of 2022, the accel- eration of the national visions in the region is driving the non-oil sectors to return to their pre-Covid-19 levels, we see a significant pipeline of infrastructure developments and spending on giga-projects across the Middle East. Concur- rently, oil prices are at their highest sustained level since 2014. These factors are helping drive a robust improvement in public spending, attraction of foreign investment and market diversification. As Egis, we expect to announce acquisitions in unique specialties that complement and expand on our current service portfolio. We also expect to embark more than 1,000 people into our business. In addition, we are optimistic that 2022 will continue on the success of 2021; with double-digit growth and penetration of new clients in various sectors and industries. How have you adapted your business throughout 2021? Throughout 2021 we focused on consolidating our region- al footprint & reorganized ourselves in a way that enhances customer centricity and agile decision making. We also took conscious decisions to focus on sustainable development in some of the projects we undertook. Another key priority we undertook was to establish strategic partnerships that focused on value creation and proved to be very successful for larger and more complex projects across various infrastruc- ture sectors. On a group level, we rolled out our new corporate strategy, named Impact the Future to support our growth and join the top 10 global majors in the profession. The driving forces be- hind our ambition and this direction is being a global player, doubling our turnover in 5 years, achieving carbon neutrality and accelerating our development in South-East Asia with the results of 2021 putting us ahead of this plan. CEO MIDDLE EAST, EGIS UAE / INDUSTRY Alaa Abu SiamNext >