Dubai Riyadh Mumbai London New York Why $13.8bn UAE-UK investment deal represents a ‘critical turning point’ for the relationship between the two countries AN ITP MEDIA GROUP PUBLICATION UAE: AED 15 KSA: SAR 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 #22/15 October 2021www.arabianbusiness.comSUBSCRIBE NOW +971 4444 3000 www.itp.com/subscription 3 C OVER S T O RY UK-UAE economic deal Simon Penney, Her Majesty’s Trade Commissioner for the Middle East and Her Majesty’s Consul General for Dubai, sits down with Arabian Business in an exclusive interview F OOD RETAIL More MENA-born unicorns on the horizon Mohamad Ballout, CEO and co-founder of Dubai-based ‘cloud kitchen’ fi rm Kitopi unpacks the company’s rise and the rise of the Kitopians 24 arabianbusiness#arabian businessarabianbusiness By Scott Armstrong qNot only do employers fall short, toxic leaderships and workplaces still abound” FIR S T WORD 4234 Scott Armstrong Editor in chief scott.armstrong@itp.com Contents October, 2021 Arabian Business / FINANCIAL TE CHNOL OGY Shift to digital currencies is coming Raja Al Mazrouei, head of the DIFC Fintech Hive, shares her views on how the centre is making plans to help develop fi ntech startups in the UAE4 Vol. 22/15 October, 2021 C ONTENT S 54 S TAR T-UP Gleac human skills development platform Sallyann Della Casa’s Gleac will be powering UAE Pavilion’s Jobs of the Future section in Expo 2020 56 LIQUID AS SET S Hotel review: Jumeirah Al Naseem The hotel is more than a series of restaurants; it’s a place of modern architecture and design 18 E VENT S THE WORLD COMES TO DUBAI The world map is displayed at the Al Wasl Dome – the heart of Expo 2020 Dubai. Powerful visuals were beamed across the dome, which is the world’s largest 360-degree projection screen. More than 3,000 lighting fixtures and 1,000 speakers are installed for the event. Expo 2020 Dubai Expo 2020 Dubai opened its doors on October 1, marking the occasion with a star- studded opening ceremony 58 FIVE THINGS T O KNOW ABOUT... UPFR ONT 12 THE EXPLAINER Bradley Moran elaborates on the latest amendments to DIFC Employment Law 12 REAL E S TAT E Shuaa Capital aims to deliver $2.7bn worth of London projects in the next eight months C OMMENT 14 INNOVATION Kate Midttun says the Expo will see the launch of innovations and ideas that will change our futurearabianbusiness.com 5 Rapid technological advancements have now made digital technologies an integral part of everyday life in the Middle East. Today, the digital economy is a major component of national transformation for many countries. Policymakers across the globe have recognised the impact of this new economic construct and introduced specifi c strategies, regu- lations and initiatives to support its evolution. It is now critical that public and private sector organisa- tions alike understand the impact of the digital economy, and evolve into truly digital enterprises. Three key areas of impact Economic growth: In the digital age, producers and consumers use digital inputs – from digital technologies and infrastructure to services and data –to create value. As a result, digital econo- mies have become key contributors to GDP, significantly impacting economic growth. China’s digital economy, for exam- ple, has been growing rapidly in recent years and has become a vital driver of the country’s GDP. Numerous coun- tries have already recognised the signifi cance of the digital economy and several have made it a cornerstone of their growth and recovery strategies. Employment creation: Creating jobs and involving the labour force in nation-building has long been the focus of governments across the world. In the digitally dominated post-coronavirus economy, the fundamental shift in the ways work is done will create new challenges for the develop- ment of skills. However, this shift will also present opportunities for job creation. The rise of the sharing economy is an excellent example in this respect. Almost nonexistent a decade ago, this sharing economy today provides millions with viable livelihoods. Reaching the underserved: Rapid economic growth and urbanisation have created economic divides within national boundaries, giving rise to unequal wealth distribution and underserved, remote communities. For decades, global organisations and governments have tried to address this divide. While technology has always been a vital tool, the rise of the digital economy has revitalised efforts to bridge the gap. Indeed, in the digital economy, people can more cheaply access products and services from any location. Key organisational challenges To thrive in the digital economy, organ- isations need to transition into digital enterprises. Fuelled by data, a digital enterprise provides personalised expe- riences to customers through digital platforms, backed by constantly evolv- ing and expanding digital infrastruc- ture. Yet in the Middle East, 62 percent of enterprises have yet to reach suffi - cient digital transformation maturity to take advantage of the disruptive poten- tial of digital initiatives. How can technology be used to address the challenges that organisa- tions face in the digital economy? Data utilisation and AI-infused analytics: The success of an organisa- tion in the new economic paradigm will depend on its capacity to collect, synthesize, and analyse data as well as its ability to apply insights at scale. However, research studies indicate that more than half of organisations in the Middle East have limited visibility into enterprise data and therefore cannot use data effectively. To make the best use of available data, enterprises need to deploy analytics solutions powered by AI. AI-based automation can enhance each step in the business intelligence and analytics process, from fi nding and preparing to explor- ing, analysing and acting on data. Skills availability and process automation: In the digital economy, organ- isations are grappling with skills issues as digital technologies in work environments become rapidly widespread. One survey revealed that more than 50 percent of CIOs fi nd it diffi cult to recruit top talent with suffi cient digital skills. To tackle the skills issue and improve organisational agility, digital enterprises are increasingly investing in technologies such as robotic process automation and AI and machine learning (ML). That said, some organisations are quickly adopting intelligent, AI-enabled process automa- tion and shifting their focus from siloed tasks to end-to-end processes. Infrastructure buildouts and the cloud: Organisations seeking to trans- form into digital enterprises must master their data and use intelligent automation. A digital enterprise’s capacity to generate revenue depends on the responsiveness, scalability and resiliency of its infrastructure, applications and data resources. Accordingly, cloud-centric digital infra- structure and applications are essential for any organisation’s transition into a digital enterprise. u Nazir believes businesses in the region must transform into digital enterprises that see and use data as a strategic asset DIGITAL ECONOMY: THE IMPACT ON TRANSFORMATION AND BUSINESSES Safder Nazir, senior vice president, Digital Industries at Huawei Middle East, outlines the broader implications of technological progress “In the digitally dominated post-coronavirus economy, the fundamental shift in the ways work is done will create new challenges for the development of skills” BR AND VIE WINDEP TH NEWS S U B S CRIBE NOW www.itp.com/subscriptions +971 4 4443000 EXPER T VIEWS EXCLU SIVE INTERVIEWS PUBLISHED BY AND © 2021 ITP MEDIA GROUP FZ-LLC. NOTICE The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. 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FIR S T WORD / Scott Armstrong, Editor in chief 8 Vol. 22/15, October 2021 “ It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolish- ness, it was the epoch of belief, it was the epoch of incredulity, it was the season of light, it was the season of darkness, it was the spring of hope, it was the winter of despair.” In 1859, Charles Dickens wrote those immortal words which echo through the centuries, they retain their relevance with every cycle of history, and they are words that remind me that for every step forward we take we seem to take, at least, another one back. We are wise enough to know that mental health is out of control across the world but remain too foolish to take the steps necessary to begin helping ourselves and each other. It is the spring of hope as increasingly organisations such as Cigna, or Bupa, or Deloitte, or the Global Busi- ness Collaboration for Better Workplace Mental Health, or indeed the PRCA – set to publish new research on October 10 – highlight the issue in a way that has not been done before. But for at least one in four of us globally, or one in three in the UAE according to recent research by University of Sharjah, Zayed University and the United Arab Emirates University, it remains the winter of despair for those impacted by mental health, with not nearly enough being done by workplaces to tackle mental health issues. The best of times, we’ve never had so much research that can help us help, there has never been a stronger business case for investment in this space. The worst of times, not only do employers fall short, toxic leader- ships and workplaces still abound. However, as the immortal Sam Cooke sang, ‘a change is gonna come’. Consider Cigna’s research that showed 88 percent of UAE employees are stressed out, one of the highest rates in the world, and likewise that 50 percent want to quit their jobs. Where do we go with that? Because it cannot be sustained, we’re reaching a tipping point, if it goes North much more and hits 100 percent what then? Companies will be forced by the market to change because those that don’t will simply no longer be able attract talent. No staff, no output, no profit, no bonus for the board, no pat on the back for the CEO, that doesn’t seem like a complicated equation. Another facet of Cigna’s research – which I’m sure will be borne out by PRCA’s data, is that it is the younger generation, the Millennials and the Gen Zs, who are leading this desire to walk out on toxic environments. That means ‘the Great Resignation’ isn’t a flash in the pan, it is a generational shift. Business stands at a crossroads. It cannot continue to treat its teams like batteries, using them up and throwing them away. There will be leaders who will treat these words, and this warning, with the incredulity that Dick- ens wrote of. For the rest of us let’s hold onto the belief that an epoch in mental health is coming – it is. 68% The percentage of the UAE population who said they wanted to get some kind of mental health support from their employers, according to a report from Cigna in 2020 Why workplace mental health is a Dickens of an issue Research paper after research paper shows that mental health in the workplace cannot be ignored, and yet many businesses continue to bury their heads in the sand SCOTT ARMSTRONG @Scottiehackzero-hour. Investments are subject to a variety of risks. You should consult your investment advisor directly before entering into any transaction. Bank Lombard Odier & Co Ltd, Abu Dhabi Global Market Branch is licensed under the supervisory authority of the Financial Services Regulatory Authority (FSRA) [FSRA Permission Number 180046] to: Advise on investments or credit, Arrange deals in investments and Arrange credit in and from Abu Dhabi Global Market and provides this material as a branch of Bank Lombard Odier & Co Ltd., with its Head Office in Geneva, Switzerland. Investments are subject to a variety of risks. You should consult your investment advisor directly before entering into any transaction. Bank Lombard Odier & Co Ltd, Abu Dhabi Global Market Branch is licensed under the supervisory authority of the Financial Services Regulatory Authority (FSRA) [FSRA Permission Number 180046] to: Advise on investments or credit, Arrange deals in investments and Arrange credit in and from Abu Dhabi Global Market and provides this material as a branch of Bank Lombard Odier & Co Ltd., with its Head Office in Geneva, Switzerland. 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