< Previous10 Vol. 21/11, May – June 2020 C OMMENT / By Millicent Clarke, Regional Head of Human Resources, Standard Chartered AME and implemented out of necessity, they imply the question: is this the reality all workplaces should be adopting hereafter? At Standard Chartered, we have championed a digitally enabled workplace, and in light of the current climate, are quickly realising the efficacy of this model with 90 percent of our workforce working from home across Africa and the Middle East. In fact, we’ve recently announced that our remote working policies could exist following the abatement of the pandemic, as our THE COVID-19 PANDEMIC has beckoned the hasty transformation of workplace structures across the globe. In turn, organisations have leveraged their technological capabilities to instil an ideal and efficient ‘workplace’ reality for their employees, while also introducing employees continue to showcase their productivity and efficiency, despite the change in our working conditions and environment. Prior to the Covid-19 outbreak, the bank had exercised a series of flexible working policies across the entirety of its markets that aimed to afford employees a greater level of flexibility and maximise its workplace performance. Through this framework, employees were afforded the ability to work remotely in agreement with their people leaders. The future of work How Covid-19 is forcing organisations to rethink working ways u Virtual meetings Companies need to encourage a tech-savvy approach and digital culture throughout their operations C OMM ENNNNNNNNNNNNNNNNNNNNNNNNNN TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT / By Millicen several novel advancements to their toolbelts. The pandemic has accelerated the introduction of an entirely digital workplace, through remote working policies, online meetings and various methods of virtual collaboration. Although these processes were bred C OMMENT arabianbusiness.com 11 $38.5bn The investments made by UAE banks during the fourth quarter of 2019 As we navigate the challenges the pandemic has brought, we are witnessing fundamental and structural changes in the way organisations work. We have often spoken about the future of work, and it is now clear that the implications of Covid-19 will result in a reimagined reality for the norms of working standards worldwide. Leaders that capitalise on the new reality and are quick to leverage and implement a digital workplace moving forward will unlock a myriad of opportunities and harness the ability to optimise their operations across the board. The current situation has forced employers and organisations across all industries to face an unprecedented situation. Likewise, although differing in magnitude, changing market and business needs can impose numerous consequences on organisations that are not equipped with the necessary technological capabilities needed to adapt to these changes. An inability to align your corporate culture with the changing conditions of your business model may result in significant operational deficiencies and compromise the growth of your organisation. At the same time, progressive digital capabilities can serve as catalysts for an organisation’s growth. To accurately map this, let’s look at banks, specifically. According to Accenture, banks that invest in artificial intelligence (AI) and human-machine collaboration at the same rate as top-performing enabling our staff members to seamlessly collaborate and innovate through digital tools and solutions. As leaders look to derive the benefits of technology on their bottom-line, they must first instil a digital culture and corresponding values within their workforce and corporate culture. As organisations continue to champion their digital agendas to meet consumer demand and changing market conditions, the same effort must be exuded towards enhancing their workplace experience. By instilling a digital mindset throughout one’s organisation, companies can forge a virtuous innovation cycle and foster idea generation, thus creating more opportunities for employees to co-create on technology. A digital workplace experience that does not meet the efficiency and convenience of the commercial standard can cause a significant amount of internal dissatisfaction – contributing to a negative workplace experience overall. According to a study conducted by Deloitte, organisations with the best Q AN ORGANISATION’S DIGITAL CAPABILITIES ARE CRUCIAL WHEN LOOKING TO ATTRACT AND RETAIN A YOUNGER, AND MORE DIGITALLY SAVVY, GENERATION OF RECRUITS” Q THE PANDEMIC HAS ACCELERATED THE INTRODUCTION OF AN ENTIRELY DIGITAL WORKPLACE” businesses could boost their revenue by an average 34 percent and employment by 14 percent by 2022. Through advancements in automation and AI, organisations are able to streamline and simplify transactions between members of the workforce and the wider enterprise, fostering greater engagement and driving more productivity in both front and back office sectors. Banks such as Standard Chartered are aligning their internal measures to complement that of their larger digital strategy, in a bid to encourage a tech-savvy approach and digital culture throughout their operations. Looking towards spurring a culture of ingenuity, redesigning the workplace to adopt a digital approach will reap a string of engagement- and innovation-related advantages, specifically between employees and the wider institution. Advanced technology implemented in an entirely digital workplace will facilitate further collaboration among team members, but more so, will enable a frictionless experience underpinned by flexibility and convenience. Through streamlined services and the automation of back and front office operations, employees will be able to focus their efforts on more strategic and innovative functions, further augmenting an ideal knowledge-sharing and collaborative environment. At Standard Chartered, we prioritise the progression of a digital workplace across our markets and operations, through the implementation of numerous advancements, workforce experiences received 12 percent greater customer satisfaction than other organisations, and their three-year revenue growth rate was 2.3 times greater on average. Likewise, an organisation’s digital capabilities are crucial when looking to attract and retain a younger, and more digitally savvy, generation of recruits. Given their aptitude in technological advancements, these new-age members will expect their workplaces to parallel this proficiency. At Standard Chartered, we have altered the very fabric of our internal operations to reflect a forward-looking, digital mindset and continue to champion our digital agenda across all fronts of our business during this time. Through training programmes, communicative efforts, progressive technological tools and internal policies, any institution is able to adopt a digital approach to their workplace and reap a myriad of benefits in this regard. Covid-19 has essentially forced organisations to undergo a fundamental restructuring of their workplaces to adapt to a new, digital reality. However, in a post-Covid-19 era, organisations must leverage this opportunity to gauge their internal shortcomings and address these through the execution of a comprehensive digital workplace. The operational and developmental gains are vast, and leaders that are early adopters of this approach will be well- equipped to weather storms of any magnitude thereafter. The future of work is now. 12 Vol. 21/11, May – June 2020 INVEST ORS IN THE MIDDLE EAST are being urged to concentrate on three key areas – digital transformation, healthcare innovation and sustainability, according to David Stubbs, head of market strategy and advice at JP Morgan Private Bank. That is the advice being given out as countries around the world slowly edge their way out of Covid-19-inspired lockdowns to save beleaguered economies in what has been described as the most severe global crisis since the Second World War. should go, he explains: “There’s a huge shift to getting services online, which has been exacerbated by this. Healthcare innovation is another one. Obviously with the focus of the virus, but also because many healthcare systems have been shown to be wanting, many countries are going to build out their intensive care capabilities after this. “That’s all with the tail wind of the ageing of society and the innovation in drugs and treatment that comes from utilising digital technology in the healthcare sector.” In terms of sustainability, he adds: “It is a virus that’s caused this, but it’s a man-made issue. We are pushing the planet beyond its limits. The fact that we are so crowded in this world, means things like hygiene and natural defences are being eroded and it leads to these Stubbs tells Arabian Business that interest rates and bond yields are going to be “exceptionally low”, which is going to add up to very high equity valuations once investors steer a clear path to recovery. In terms of where the smart money $294.4bn China-Middle Eastern countries’ trade volume in 2019 David Stubbs, head of market strategy and advice at JP Morgan is advising looking at digital transformation, healthcare innovation and sustainability BY GAVIN GIBBON Covid-19 opportunities THE BIG S T O RY / INVE STMENTarabianbusiness.com 13 THE BIG S T O RY / INVE STMENT kind of issues. “I think you’ll see a new focus on sustainability and there’s also evidence of sustainable investing in the equities market outperformed before the drawdown.” Gold eased to a two-week low last Wednesday on optimism about the reopening of the world economy. Gold prices last week recovered from a 12-day low to $1,712.10, up 0.16 percent on a day, during May 28’s Asian session. Stubbs remained confident in its value to investors and “wouldn’t be surprised” if its value were to rise over $1,725. He says: “We’ve liked gold for quite a while. I think as long as the world is one where interest rates and bond yields are close to zero, or below zero in many parts of the world, I think gold is going to have a role in our portfolios.” Meanwhile, Stubbs believes Middle East companies may look to take a more local approach to production, post- coronavirus, with supply chains from China, in particular, likely to come under more scrutiny. The Belt and Road Initiative (BRI), the most ambitious and far-reaching project of its kind, has brought unprecedented potential in cross-border trade and investment between China and the MEA region. According to China Customs Statistics (export-import), China- Middle Eastern countries’ trade volume increased to $294.4bn by 2019, up from $227bn in 2018. However, with the onset of coronavirus, which originated in the Chinese city of Wuhan, has come strict movement restrictions ordered across the globe and a subsequent rethink on supply chains. Stubbs says: “I think a key trend we will see is a gradual shortening of supply chains around the world as companies realise that they can’t really trust China as a location as much as they thought they could because there was the trade war with the US and obviously the potential health concerns and construction of viruses. “And furthermore I think you will see a general pressure from governments to companies to build more resilience into supply chains and efficiency.” China is the UAE’s leading trade partner, accounting for more than 9 percent of the UAE’s non-oil trade. However, last month, a senior official from the Dubai Future Foundation (DFF) admitted that the country will have to diversify its supply chain beyond China. Stubbs adds: “They (companies) will be asked to bring production closer to home, especially for things which are now deemed essential in a way they weren’t only a few months ago, such as medicines and medical equipment. “China may not be the workshop of the world that it once was in a few years’ time. It’s a gradual process but I think it’s an important one.” “China may not be the workshop of the world that it once was in a few years’ time” u Digital transformation is among sectors that could benefi t from the current climate u David Stubbs, head of market strategy and advice at JP Morgan Private BankTHE BIG PICTURE Emirati men walk at the sprawling Dubai Mall on May 27, after the UAE authorities eased some of the restrictions that were put in place in a bid to stem the spread of the novel coronavirus. PHOTO: GIUSEPPE CACACE/AFP VIA GETTY IMAGES“ THIS IS ABOUT SURVIVAL” Gargash Group managing director and CEO Shehab Gargash has a grim short-term forecast for the coronavirus-era economy. But out of the ashes, opportunity will arise COVER STORY By Bernd Debusmann Jr u Gargash is also the founding chairman of Daman Investments, a non-banking fi nancial services company based in Dubai that has been operating since 199818 Vol. 21/11, May – June 2020 C OVER S T O RY / SHEHAB G A R G A SH industry they’re in, is survival,” he tells me. “I think we are facing worldwide, industry- wide, existential issues that a lot of us have never even dreamed of. It’s all-encom- passing and covers all sorts of areas of the economy.” Hard times ahead When it comes to the pandemic-related issues that the UAE’s economy faces, few are in a better Monetary Fund (IMF) – fore- cast that the GCC economies will collectively record nega- tive real GDP growth in 2020, with the UAE slipping to -3.5 percent from 1.3 percent growth last year. When it comes to the crisis, Gargash’s warm smile and friendly banter come to a stop. This isn’t a situation he minces words about. “The immediate issue for all businesses, in whichever u With offi ces at the Dubai World Trade Centre, Daman Investments is among the region’s leading investment companies -2.8% The projected real GDP growth of the Middle East and Central Asia region this year, the IMF reported IKE MOST GL OBE- TROTTING travellers and businessmen, Shehab Gargash’s office has souvenirs of his trips. But these souvenirs aren’t postcards, fridge magnets or cheap trinkets. Gargash collects boarding passes – hundreds of which are kept in a massive glass display case in his office, atop of which sits a silver and red aircraft wing. “Oh! I have slipped the surly bonds of earth,” reads a sonnet on the case, written by American poet and pilot John Gillespie Magee Jr, killed flying a Spitfire over England during the Second World War. “And danced the skies on laughter-silvered wings.” This, I think to myself when I see it, is a man who really loves his travel. His Instagram account proves it. From India and China to Barcelona, Monaco and the Maldives, Gargash gets around – and that’s just in the last year alone. But like the rest of us, Covid-19 has put a damper on Gargash’s travel plans. “When will I travel again? That’s a good question,” he tells me, chuckling through the grainy screen of our video teleconference meeting. “If I’m going on holiday, I want to enjoy it. So I’m not itching to get back on a plane. I don’t think we’ll be there anytime soon.” In the current climate, an Instagram-worthy trip is the least of Gargash’s concerns. At the moment, he’s preoc- cupied with facing the impact of the coronavirus pandemic, both on Gargash Group – of which he is managing direc- tor and CEO – and on the wider economies of the UAE and GCC. Some estimates – such as that of the International L “I think we are facing... existential issues that a lot of us have never even dreamed of”arabianbusiness.com 19 / SHEHAB G A R G A SH In the short-term, he says with startling matter-of-fact- ness, the forecast is grim. He predicts that many businesses will not last. “People aren’t looking at their strategies, or their plans. They’re looking at the daily details of expenses, revenue, cash in the bag. The immedi- ate oxygen for the business to live through this,” he says. “Many businesses will not appreciate the impact of what position to comment than Gargash. A scion of one of the country’s most prominent Emirati families, Gargash leads the Gargash Group, which has diverse inter- ests including automotive, real estate, hospitality and financial services. He’s also the founding chairman of Daman Investments – not to mention a long-time banking industry and prolific socio- economic commentator. they thought were very small elements, like levels of leverage and borrowing that seemed manageable a few weeks ago. These will deal a fatal blow to a lot of businesses.” Perhaps more alarmingly, Gargash believes that most businesses are “nowhere near” a stage in which they can even think of what the future holds. What businesses will look like, and how they can adapt to new realities, are still unknowns. “We haven’t even consid- ered that future yet. A lot of businesses, through no fault of their own in many cases, will not survive simply because they have underap- preciated the need to have that safety cushion,” he adds. ‘Soul searching’ According to Gargash, the businesses that do survive the immediate impact of the pandemic over the coming weeks and months will soon have to start thinking of their next moves. “You can’t afford to be fire- fighting too long. Over the weeks and months, [compa- nies will] regain their balance. Subsequent to that, strategy kicks back in,” he explains. u The company has diverse operations in fi nancial investment and real estate u Gargash Enterprises is the authorised distributor for Mercedes-Benz in Dubai, Sharjah and the Northern Emirates 1958 The year in which Gargash Enterprises was established in DubaiNext >