< PreviousC OVER S T O RY / CHA SE CARE Y For host cities like Abu Dhabi, Formula One is big business, but can CEO Chase Carey bring back the glory days? COVER STORY By Bernd Debusmann Jr/ CHA SE CARE Y22 Vol. 20/42, November – December 2019 Jordan is referencing is not an easy one for F1. Despite a $44m rise in revenue to $1.82bn in 2018 compared to 2017, for the second year in a row Formula One Group reported a loss which grew to $68m from $37m the previous year. In the long-run, a perhaps more alarming issue for the sport is that – by its own admis- sion – it struggled to strike a chord with fans – particularly young ones. In a public discus- sion on Reddit earlier this year, F1 global research director Matt Roberts revealed that just 14 percent of the sport’s fans are under the age of 25, while the average age is 40. “It could even get worse, unless people have qual- ity time to put their phone down,” Jordan says. “[This will continue] until we are able to give them enough reason to watch Formula One by making it exciting. We need more inter- esting characters. We need more razzmatazz. We need more craziness.” Chase Carey to the rescue He’s not the first to say so. Former Formula One boss Flavio Briatore previously told Arabian Business the sport is “too boring” while F1 star driver Max Verstappen said it “needs more energy”. Indeed, it is in holding fans’ attention that F1 has strug- gled. Historically, it hasn’t helped itself either, with team bosses and F1 officials repeat- edly saying the wrong things in u Abu Dhabi has hosted the fi nal race of the season since 2008 $1.82bn The total revenue of the Formula One Group in 2018 E HAVE A PROBLEM,” Eddie Jordan says in a charming Irish lilt. “You have to understand market forces – and at the moment the market force dictates that Formula One, and sport in general, is suffering.” When it comes to F1 and motor sports, few people are more ‘in the know’ than Jordan, now a youthful and enthusiastic 71-year-old. As a former driver, F1 team owner and long-time TV analyst and commentator, he’s seen it all. But don’t let his cheerful demeanour, Rock ‘n’ roll-esque purple suit and steady stream of jokes fool you. Jordan is worried – and believes the sport he loves is in trouble. “I think a lot of the excite- ment is draining from Formula One,” he tells a group of horri- fied enthusiasts at the Dubai Motor Show. “The younger people, the teenagers, 90 percent of them are looking at their phones all the time… the world has changed.” Looking at the statistics, it’s clear that the changed world “ W “We need more razzmatazz. We need more craziness.”arabianbusiness.com 23 / CHA SE CARE Y ary 2017 as CEO and execu- tive chairman of Formula One Group following Liberty Media’s $301m take-over of the company. Armed with a stream of fresh ideas drawn from a long career at News Corp. and 21st Century Fox – as well as a memorable and well-twirled handlebar moustache – Carey is on a mission to help the sport catch up to the demands of 21st century fans. “It’s true that when we took the eyes of many fans. In 2017, for example, Enrico Galliera, chief marketing and commer- cial officer of Ferrari, said the company is more focused on technological development than racing. In 2014, perhaps more gallingly, then Formula One Group CEO Bernie Ecclestone bizarrely said F1 “doesn’t need” young fans as they don’t have the money to buy advertised products. And until recently, F1 was conspicuously absent from social media – which Eccle- stone described as “nonsense” he couldn’t see the value of. But all that has changed under Chase Carey, the 65-year old Irish-American who took over from Ecclestone in Janu- control, some areas were totally non-existent or hardly developed, such as market- ing, sponsorship and digital,” he tells Arabian Business. “[F1] does not live in a bubble and so, clearly, the way events are managed and exploited, not just in sports, is changing very rapidly and that has an impact on our sport.” To address this new real- ity, Carey and the Formula One Group have taken it upon themselves to transform the way the sport presents itself. In addition to the wildly popu- lar ‘Drive to Survive’ series on Netflix, the company has launched its own Grand Prix streaming service and F1 ‘festi- vals’, allowing fans to immerse themselves in F1 in the heart of some of its host cities. Just as importantly, Carey wants to change the sport itself. In 2021, F1 will introduce unprecedented rule changes that will mean the cars can drive closer to each other. Also planned is fairer finances among teams, with a strictly monitored $175m cost cap per team on anything that applies to on-track performance. These changes, Carey says, will end a growing spending gap between the sport’s wealth- ier teams and those with fewer resources, thus making races more competitive – a trend he says is already beginning. “It’s true that one team, Mercedes, and one driver [Lewis Hamilton] are scor- ing win after win, but it’s also true that Ferrari and Red Bull are becoming more competi- tive and that has led to some really exciting racing with the outcome uncertain right to the end,” he says. “The fight behind the top three teams is also very close with teams and drivers fighting it out from start to finish.” This on-track excitement, Carey adds, is ultimately what will keep the sport afloat. “More exciting races means more people are aware of it [Formula One], and that can be seen from the fact that the TV audience, the digital one and number of spectators at the track are all on the rise.” Time to share the wealth If Carey’s plans work, it may not be long before Abu Dhabi and Bahrain have company as Middle East host cities. Although the CEO’s lips are sealed when it comes to details, he’s quick to point out at the region “has plenty of potential for growth” when it comes to young fans. “We want to carefully evalu- ate all the opportunities that might arise in the near future, u The capital’s F&B sector has seen a major boost in sales thanks to F1 u The Abu Dhabi Grand Prix is big business for Yas Island $68m The reported loss of the Formula One Group in 2018 compared to $37m in 201724 Vol. 20/42, November – December 2019 C OVER S T O RY / CHA SE CARE Y u Chase Carey took over as Formula One Group CEO from Bernie Ecclestone in 2017 u Former F1 boss Flavio Briatore with ex-F1 CEO Ecclestone without ruling anything out for now,” he says cautiously. “You should never say never. It’s just a question of finding the right opportunity.” With Carey at the wheel, F1 seems to be racing towards that opportunity at top speed. Whether it crosses the finish line, however, will largely depend on whether those young fans can keep their eyes off their phones and on the track. Luckily, F1 today is about far more than just the racing and cars – and there remain millions to be made by hotels, restaurants and brands in host cities such as Abu Dhabi. The big party weekend When it comes to the ‘razzmatazz’ that Jordan talks about, few do it better than Abu Dhabi, where an entire industry has sprung up around the race, giving the emirate a significant economic boost. The numbers speak for themselves. According to Saeed Al Saeed, destination market- ing director at the Department of Culture and Tourism – Abu Dhabi, over the last 11 years a whopping 1.4 million visitors have come for the event. In 2018 alone, the race attracted 135,000 attendees, about 80,000 of whom were foreign visitors. Similar numbers are expected for the 2019 edition. Even as Formula One’s worldwide TV audience has plummeted 18.3 percent to 490 million viewers over the last 11 years – largely due by a move from free-to-air to pay TV networks – for Abu Dhabi, the event has grown. For the capital’s hotels, restaurants and clubs, the siza- ble crowd of visitors – includ- ing many not going to the race - means big bucks. “Abu Dhabi hotels operate at full capacity during the race weekend, and the influx of tour- ists to the capital to attend the Grand Prix affects every other aspect of the travel industry here,” Al Saeed tells Arabian Business. “During their visit, F1 tourists have a lot of free time around the Grand Prix in which they are “[F1] does not live in a bubble and so, clearly, the way events are managed and exploited, not just in sports, is changing very rapidly and that has an impact on our sport” “The problem of the Arab world is that we don’t have a national hero. We don’t have an Arab driver” $1.6m Restaurants’ approximate revenue during the F1arabianbusiness.com 25 / CHA SE CARE Y likely to take advantage of the city’s various offerings, includ- ing entertainment venues, cultural attractions, retail sites and F&B outlets,” he says. For a taste of the boon that Abu Dhabi gets from the race weekend, try to book a room in the capital on race days. On the off-chance that you get a room – with most hotels oper- ating at full occupancy – you’ll quickly find yourself paying a lot more than usual. Last year, according to DCT Abu Dhabi statistics, average daily room rates spiked significantly, rising from $94 (AED349) in October to $140 (AED515) in November, with revenue per available room (RevPar) up to $113 (AED416) compared to $70 (AED258) in the month prior. Those guests will need to eat - and many will be look- ing to party - and Abu Dhabi’s restauranteurs and nightclub operators will be waiting for them with open arms. “During F1 weekend alone, the turnover that you make is ridiculous. It’s ridiculous,” exclaims Mansour Bin Jabr, the young Emirati restauranteur who brought Italian concept Cipriani to Yas Island in 2009 before it was sold to current owner Bulldozer Group. “The numbers that Cipri- ani does, or any of the other competitors around, is $1.6m (AED6m) in three days on a weekend,” he adds. “That’s the turnover for most restaurants in Dubai for a whole year.” We need a hero But the party can’t go on for too long if on-track excitement continues to fade, which is why the Middle East could do with its own ‘national racing hero’ according to former racing driver and long-time F1 analyst and pundit Khalil Beschir. u Mansour Bin Jabr is behind concepts Mr Miyagi’s & The Scene u Eddie Jordan is a former driver, F1 team owner and TV analyst u Lewis Hamilton is a six-time Formula One World Champion “During F1 weekend alone, the turnover that [F&B outlets] make is ridiculous. It’s ridiculous” “The younger people, the teenagers, 90 percent of them are looking at their phones all the time… the world has changed.” “It’s true that one team, Mercedes, and one driver [Lewis Hamilton] are scoring win after win, but Ferrari and Red Bull are becoming more competitive” 490m The number of TV viewers who tune into Formula One He says the sport’s popular- ity in the region – particularly among young Arabs – would be given a significant boost by the presence of a top-level Arab driver. “The problem of the Arab world is that we don’t have a national hero. We don’t have an Arab driver,” Beschir says. “Look at Mexico, for example. Where was F1 before [Racing Point driver] Sergio Perez? Look at Spain before [retired F1 star] Fernando Alonso, Formula One was nowhere. We are missing these kinds of local heroes.” More so than a local hero, Formula One needs a global saviour to catch up to the demands of the younger, digi- tally-savvy generations. It’s only hope seems to be Carey. Luckily, he is up for the chase. 26 Vol. 20/42, November – December 2019 SPE CIAL / 40 UNDER 40 20 19 Athbi and Nouri Al Enezi Co-founders JustClean Age: 28 and 27 Athbi and Nouri are the joint managing partners and co-founders of Justclean. Prior to establishing the business, Athbi worked in the banking sector, and his brother Nouri took up a position as a mechanical engineer in the oil sector. Inspired by the fast- moving e-commerce industry in the region, the brothers decided to set up the first laundry marketplace application. They took their motivation from the leading local e-commerce pioneers and saw an opportunity to merge the traditional method of cleaning with the advancements that the technology sector had to offer. Together they launched Masbagti in April of 2016, and in February 2017 the business partnered with Faith Capital and was successfully re-launched under the new branding of Justclean. u Athbi (right) and Nouri Al Enezi are planning for an IPO for JustClean q YOU GET YOUR HAIRCUT AND YOU GET YOUR LAUNDRY DONE. IT’S A WAY OF LIFE”– ATHBI AL ENEZI $13.6bn The estimated worth of the worldwide laundry services market in 2019-2023 They say life begins at 40, but for the men and women profi led over the coming pages, life has already well and truly started. Whether it is retail moguls, technology entrepreneurs, up-and-coming new stars or seasoned executives and leaders who are ahead of the game while still only in their 30s, these are the business leaders of the future who are already making a big impact today. Chaker Khazaal Author Tale of Tala Age: 32 He grew up as a refugee in Lebanon but Palestinian- Canadian Chaker Khazaal has since gained international recognition for his work as a reporter, speaker and author, having written the Tale of Tala (2017) - which ranked second in worldwide book sales on Amazon - and the Confessions of a War Child trilogy (2013-2015). He has used his platform to be an advocate for refugees and aspiring young writers and has been presented with the Mentor Arabia Award by Queen Silvia of Sweden and Prince Turki Bin Talal Bin Abdelaziz of Saudi Arabia. Anas Bukhash Founder and managing director Bukhash Brothers Age: 38 He’s best known for his influencer marketing and talent management consultancy Bukhash Brothers as well as his own YouTube show AB Talks, where he hosts a variety of local personalities for in-depth discussions on societal taboos. But Emirati Anas Bukhash was an entrepreneur long before his rise in the world of online content, having opened the UAE’s first indoor sports facility, Ahdaaf Sports Club, and a football academy, high end street fashion brand Buka and state of the art hair salon Chalk. 2019arabianbusiness.com 27 / 40 UNDER 40 20 19 Ahmed Hussein Chairman Lavista Real Estate Age 33 Ahmed Hussein is an influential leader in the regional market and has been proven to possess extensive knowledge and experience in trading and investment. An ambitious businessman, Hussein managed to take Lavista Real Estate Brokers to new heights in less than six months by securing a place as one of the top real estate brokers in the region, and is Emaar’s Platinum Broker in 2019 – a record-breaking achievement in the real estate market. Moreover, his influence in the market has expanded beyond the UAE and KSA to include countries such as the UK, China, Australia and Egypt. Since the launch of Lavista in 2016, Hussein and his team of experts have been carefully building relationships that are based on trust with investors and home buyers alike. Tracing Lavista’s progress over the past three years, nothing seems to be holding it back from the slingshot effect they created in the market from the start. With hundreds of millions of dollars in sales in his record, Hussein has proved that putting in tremendous effort and coupling it with unwavering standards certainly pays off in a saturated market. The pace at which Lavista Real Estate has grown over the years breaks all myths about the inability of new players to flourish against bigger and more established competitors. Ambitious? Very. Visionary? Absolutely. But it’s the sheer amount of effort that Hussein and his team display everyday that would make any of us realise how Lavista holds its status as a multimillion-dollar company and continues to have its impressive portfolio of prestigious clients in Saudi Arabia and Gulf markets. Hussein is also a big advocate of educating potential clients by providing them with the necessary insight and market knowledge in order for them to take the best buying decisions for their investment. His tight relationship with Dubai’s major developers is a key to offering his clients diverse and solid range of real estate options. Hussein continues to look over Lavista, future-proofing it as the company steps into 2020 and he’s got his eyes set on making his company the top broker for Emaar. q WE CAN ONLY SEE LAVISTA EVOLVING AND EXCELLING IN A CITY KNOWN FOR ITS FAST PACE AND FOR MAKING WONDERS” 33% The increase in sales transactions in Dubai between June and August this yearSPE CIAL / 40 UNDER 40 20 19 28 Vol. 20/42, November – December 2019 Akbar Moideen Thumbay Vice president – Healthcare Division Thumbay Group Age: 35 Akbar Moideen Thumbay is the Vice President of the Healthcare Division of Thumbay Group, a diversified international business conglomerate headquartered at DIFC. After completing his studies in India, the UAE and Italy and working with a New York-based company, Akbar joined Thumbay Group, the multinational business conglomerate founded by his father, Dr Thumbay Moideen. He demonstrated extraordinary business acumen and initiative right from the start. His vision, enthusiasm and confidence brought him greater responsibilities and he was soon elevated to vice president of Thumbay Group’s Healthcare Division. Akbar looks after the operations of the healthcare division spread across the UAE, India and Africa, including all Thumbay Hospitals in Ajman, Fujairah, Sharjah, Dubai and Hyderabad, as well as the network of Thumbay Clinics and Thumbay Labs throughout the UAE and India. Under the company’s retail division, he initiated Nutri Plus Vita, a series of health nutrition and wellness stores, in addition to the pre-existing branches of Zo & Mo Opticals and Thumbay Pharmacy located across the UAE. One of Akbar’s key initiatives has been to aggressively promote $272m The investment made by the Thumbay Group in Thumbay Medicity in Ajman He was honoured with the Champion of Change Award at the seventh annual MENA HR Excellence Awards in 2015 in recognition of his leadership, strategic thinking and key management decisions that benefitted the organisation. He was also featured in the 25 Young Business Leaders in the UAE, profiled in a coffee table book Gen Next Indians. In recognition of his merit and professional accomplishments, Akbar was inducted into the Alumni Wall of Fame of his alma mater, the American University of Sharjah (AUS). Akbar has spoken at various conferences and seminars held in the Middle East and Europe, which included the Harvard Crossroads Summer Programme in Dubai, the International Medical Travel Exhibition and Conference held in Oman, the Borderlines in Healthcare event in Austria, the Leadership & Entrepreneurship Series 2016 at Mohammed Bin Rashid School of Government, and the AUS Enterprising Youth Forum in Sharjah in April 2016. Akbar is married to Nousheen Salma and they have three sons: Ahmed Akbar Thumbay, Omar Akbar Thumbay and Rashid Akbar Thumbay. Thumbay Hospitals in the medical tourism segment. The hospital’s world-class healthcare services and excellent facilities have brought in patients from as far as Africa and Southern Europe, seeking treatments from executive check-ups to complicated surgeries. Akbar was recognised as Young Leader Shaping the Future at Stars of Business Leadership Awards in 2017. arabianbusiness.com 29 / 40 UNDER 40 20 19 Akram Moideen Thumbay Director – Operations, Construction and Renovation Division Thumbay Group Age: 32 Akram Moideen Thumbay is the director – operations of the Construction & Renovation Division of Thumbay Group, as well as director of Thumbay Technologies. Akram was born on January 1, 1987 and did his schooling at the Lawrence School, Lovedale – Ooty, and the International School of Choueifat, Sharjah. He completed his Bachelor of Business Administration (BBA) degree from the American University of Sharjah specialising in Management and Finance in 2010. He also holds a BA Business and Management (Honours) from the University of Northampton and M.Sc. Entrepreneurship from the University of Surrey. He did shorts stints as a trainee and intern in some of the prominent international names in the automobile, manufacturing and construction sectors. In January 2001, Akram joined Thumbay Group, founded in 1998 by his father Dr Thumbay Moideen, where he spent six years (up to December 2006) as a trainee, familiarising himself with the day-to-day operations of the organisation and was involved in recommending innovative ideas, participating in brainstorming sessions and assisting in the daily tasks of the company. He was entrusted with greater responsibilities during May 2009 – December 2012, where he performed day-to- day office administration and accounting, growth, budgeting and strategic planning, consultant, subcontractor coordination and handled the overall supervision of projects, costing, inventories, HR, stores and materials, analysis and personnel. Akram was later elevated to be the director – operations of the Construction and Renovation Division of Thumbay Group, and he formally took charge on February 10, 2016. He now heads the operations of Thumbay Builders, the high-end general construction company operated by the Construction & Renovation Division of Thumbay Group. It is now one of the biggest construction companies in the UAE’s Northern Emirates, and has constructed over 1 million sq ft of development He heads Thumbay Technologies, a leading IT solutions company which has a state-of-the-art offshore productivity centre in Bangalore, India. Akram is also the chairman of the CSR Committee which oversees the CSR activities and programmes of Thumbay Group. The committee has carried out several CSR programmes across the country, promoting causes and activities benefiting low-income groups, women, children and various professional groups. q ARTIFICIAL INTELLIGENCE IS ONE OF OUR FOCUS AREAS. WE AIM TO MAKE THUMBAY GROUP AND ITS ENTITIES COMPLETELY PAPERLESS BY 2020” 5,000 The number of staff employed by Thumbay Group in 20 sectors across the GCC and IndiaNext >