< Previous40 STARTUP | 133 The estimated number of female-founded unicorns worldwide So why are women not getting the funding they deserve, especially given the fact that empirical research clearly shows that female founders can be a massive opportunity for investors. Female-owned companies generate higher revenue Research shows that businesses founded by women ultimately deliver higher revenue -more than twice as much per dollar invested than those founded by men. In fact, VC-backed companies with a female founder performed 63 percent better than companies with all male founders, in terms of return of investment. Let’s be clear. I don’t want to make this sound like its women VS men, this isn’t about superiority or competing. This is about balance, raw data and changing a perception within a speciƅ c sector that currently has a dispropor- tionate male-dominant ecosystem. Women signiƒ cantly improve startup company performance A growing body of evidence shows that organisations with a higher percentage of women in leadership roles outperform male-dominated companies. Data suggests that investing in diverse founding teams results in up to 25 percent higher valuations. This is a signiƅ cant statistic for investors. Influential tennis star, Serena Williams is leading the movement in USA for VC-backed female founders with her early-stage investment fund. Having raised over $110m for female- led investments, she aims to balance out the playing ƅ eld with more talent diversity. Other VC ƅ rms have taken note of the higher performing companies that are female-led, and we are starting to see a movement and positive shift towards more balance in the startup funding world. Women have a larger appetite for growth One of the key components of being an entrepreneur is the ability to grow Data from 2021 alone shows a 400 percent increase in the number of female-led companies reaching unicorn status when compared to 2020. A slate of female co-founded unicorns also went public in 2021. 7 out of the 19 companies that went public had female CEO’s, compared to zero, in 2021. But clearly, all the arguments in favour of supporting women-led busi- nesses have not been enough to turn the tide among investors and perhaps this is down to the male-dominated culture of many VC firms and institutional investors which is well documented. However, investors should acknowledge that current market trends and consumer behaviour makes women-owned companies’ lucrative opportunities. And let’s not forget- the data shows they perform better than their male counterparts. The solution is not for VCs to suddenly start supporting startups simply because they’re founded by women. It’s to weed out the institu- tional thinking and patterns that prevents VC ƅ rms from recognising the great potential of ideas presented to them, even if they are presented by a woman. If VC’s in the Middle East want to see more Unicorns, let’s start backing the amazing talent of female-founded startups and let the unicorn herd pave its way through the region. Female leadership VC-backed companies with a female founder performed 63 percent better than companies with all male founders, in terms of return of investment a company. Growth may be measured in the form of expansion, new ventures, new markets – a survey showed that 32 percent of female- owned businesses are in active expan- sion mode compared to 27 percent of male-led businesses. Twenty-nine percent of female- owned businesses across the MENA region are global enterprises — a greater proportion than their male peers can claim, which is largely based on the fact that women founders do not give up at the same rate as men, and they have the vision and perseverance to grow into markets outside their domestic markets. Outcome and unicorns Despite the fact that only 2 percent of all VC funding globally is directed towards female-founded startups, women-led businesses perform incredibly well. On a global scale, female-founded unicorns (a term given to a private company that reaches a value of $1bn or more) exceeded 133 companies worldwide and continue to grow in 2022. Vol. 23/11/1, November 2022FUTURE OF BIM & DIGITAL TWINS STARTS HERE! Event theme is Enabling Digital Transformation and includes a 2-day conference plus workshop on latest developments for BIM, Digital Twins, GIS, and related construction technology. Presentations focus on the role of digital construction from project concept and design, project management, to full lifecycle asset management. This timely and unprecedented event includes presentations by government and private sector organizations at the forefront of the Kingdom’s construction industry, and mega projects as part of Saudi Vision 2030. Plus, international organizations that are leaders in smart sustainable construction and built asset management. Event website with further details is: www.itpconferences.com/bimdtksa NETWORK, MEET YOUR TARGET MARKET, AND DO BUSINESS! Adjacent to the strategic level conference is the expo area where event sponsors and exhibitors showcase the latest digital construction technology and services to delegates during the conference breaks. If this is your target market, then book now as the 2022 event booked out. For further details including event sponsorship or exhibitor opportunities call: Anthony Sprange, Director of Conferences at ITP Media Group +971 (0)58 598 9062 or email: anthony.sprange@itp.com 14 & 15 FEBRUARY 2023, RIYADH This is the Kingdom’s leading event for Building Information Modelling (BIM) and Digital Twins organized with Event Partners Saudi Contractors Authority (SCA) and buildingSMART International. ORGANIZED BYDIAMOND SPONSORPOWERED BYMEDIA PARTNER BIM & DIGITAL TWINS SAUDI ARABIA 2023 CONFERENCE & EXPO OPEN BIM & DIGITAL TWINS: THE KEY TO INDUSTRY 4.0 TM EVENT PARTNER: STRATEGIC PARTNER: Scan the QR code to learn more about the event and register 42 Finding a path for private equity in the new market environment The relentless hunt for returns in an ultra-low yield environment has made the rise of private markets as one of the biggest trends in ƒ nance over the last decade Expert advice Bonzon says private markets can be especially beneƒ cial to investors in times of increased uncertainty SPOTLIGHT | T he world has entered a new paradigm. Since the beginning of the war in Ukraine, geopol- itics, rather than economics, have been in charge. For investors, this means bracing for higher average inƆ ation, as well as higher volatility. Portfolios that have been positioned for disinƆ ation and relative political stability for 30 years will now have to shift gears to successfully navigate this new environment. With inƆ ation becoming a more persistent feature, fighting against capital erosion is more important than ever. The key to surviving an inƆ ation- ary investment environment is to favour real assets over nominal claims in a portfolio. One category of investments that could be considered in the context of a well-diversiƅ ed portfolio, particu- larly in the current economic and geopolitical landscape, is private assets, most particularly the subset private equity. The relentless hunt for returns in an ultra-low yield environ- ment has made the rise of private markets as one of the biggest trends in ƅ nance over the last decade. Although the economic playing ƅ eld is rapidly changing and the era of free money has come to an end, private markets still offer many advantages; they can be especially beneficial to investors in times of increased uncertainty. The beauty of illiquidity Besides the challenges posed by high valuations and the prospect of struc- turally higher interest rates, private equity still harbours plenty of advan- tages for investors: increasing acces- sibility, a broadened investment universe and the possibility to invest sustainably via impact investing are likely to increase interest in the asset class. And while the notorious illiquid- ity of its investments may be a deter- rent to some, it may actually be an asset. We know that the average inves- tor tends to underperform a long- term buy-and-hold strategy because they trade too frequently, incorrectly rebalance their portfolios, and/or fail BY YVES BONZON, GROUP CHIEF INVESTMENT OFFICER AT SWISS WEALTH MANAGER JULIUS BAER Vol. 23/11/1, November 2022arabianbusiness.com 43 28%+ The annualised returns generated by top-quartile private equity managers in the US | SPOTLIGHT to time the market successfully. Private equity illiquidity may miti- gate the e Ƃ ects of these behavioural pitfalls. The illiquid nature and less frequent pricing information of private equity funds protects inves- tors from themselves, helping them to stay invested and, in the end, reap the gains of their long-term investments. Selection is key If there is one key takeaway for inves- tors when it comes to private equity, it’s that manager selection is para- mount. Top managers who have a knowledge advantage about a partic- ular industry and signiƅ cant resources within their ƅ rms have an increased chance of outperforming public markets. Relying on mediocre private equity managers or, even worse, selecting bottom-quartile managers will most likely lead to a signiƅ cant underperformance. It is true that the most prominent estimates suggest that average global private equity returns have either been in line or have somewhat surpassed public market perfor- mance, depending on the investment period and public benchmark taken. ‘Average’ is the key word here, as there is substantial performance dispersion across geographies and between private equity managers, much more so than among public equity funds. To illustrate just how substantial the performance dispersion is, we show the performance distribution of public and private equity managers in the US and Europe across the 15-year period from July 2005 to June 2020 (above). While top-quartile private equity managers in the US were able to generate annualised returns of over 28 percent, the bottom quartile failed to even achieve positive returns. Over the same period, the S&P 500 returned tom quartile spreads for public equity funds at around 10 percent, or one third of the spread in private equity. The considerable spread between the top and bottom performances of private equity managers can be largely attributed to the managers’ capabili- ties and their respective investment processes. In the end, the returns in this space are signiƅ cantly dependent on the sector in which they are active, the size of the portfolio companies they target, their overall investment selection, as well as the timing of investments and exits. Notably, return dispersion also greatly di Ƃ ers among the various private equity strategies. As a rule of thumb, the earlier the stage of investment, the higher the risk/return trade-o Ƃ and the higher the return dispersion between top- and bottom-quartile managers. This means that, in general, investors involved in venture capital funds should be prepared for a greater return dispersion among managers than those involved in, for example, larger buyout funds. Performance Return dispersion in private equity compared to public markets While the notorious illiquidity of private market investments may be a deterrent to some, it may actually be an asset In general, investors involved in venture capital funds should be prepared for a greater return dispersion among managers than those involved in, for example, larger buyout funds approximately 9 percent per annum. Also worth mentioning is that return dispersions in public markets are significantly lower than those in private equity funds, with top-to-bot-44 The Oslo Accords, for example, failed to provide a sustainable solution for Palestinian refugees. They left the matter as “permanent status” to be completed by May 1999, a promise that failed to see the light. As a result, many Palestinian refugees su Ƃ er daily while holding onto the right of return, a dream curbing their potential to explore other arenas of peace and prosperity to establish their lives and move forward. Today, there are no sustainable solu- tions for the over 5 million Palestinian refugees from four displaced genera- tions. Instead, they primarily depend on support from overseas relatives and aid from organisations like UNRWA. Geopolitics has always deƅ ned the fate of the Palestinian people. The latest development involving the Palestinians is the Abraham Accords, signed by the United States, Bahrain, the UAE, and Israel on September 15, 2020. Other agreements with Sudan and Morocco under the Abraham Accords were ƅ nal- ised in October and December 2020 respectively. Most recently, there have been initiatives beyond the scope of the Abraham Accords, such as the historic agreement between Lebanon and Israel on a maritime border deal. These normalisation agreements between Arab states and Israel seem promising for the region, having already shown positive results in improving diplomatic and economic relationships, promoting travel and tourism, and increasing trade and investments on both sides. In general, however, the accords will have to contend with decades of entrenched public percep- tion and widely held beliefs about Israel in most Arab countries. A good starting point would be the emphasis on how these accords would beneƅ t the Pales- tinians. In line with the policies Jared Kushner initially presented when intro- ducing the accords, the economic empowerment of Palestinians will facil- itate a better quality of life, encouraging support and acceptance of similar deals. One study from the Palestinian Centre for Policy and Survey Research (PSR) found that 86 percent of Palestin- ians believe the accords will only bene- ƅ t Israel. That being said, it’s likely that If I were President of Palestine, here’s what I’d do I would approach the Abraham Accords constructively to expedite a resolution for the Palestinian people while nurturing long-lasting, productive relations with other regional players Occupied territories There are no sustainable solutions for the over 5 million Palestinian refugees from four displaced generations, Khazaal says POLITICS | $3.48BN The value of imports from Israel to Palestine in 2021 BY CHAKER KHAZAAL, REPORTER, SPEAKER, AND AUTHOR B orn a stateless Palestinian refu- gee in Lebanon in the late 1980s, I grew up in the Burj Al Barajneh camp on the outskirts of Beirut. I was expected to endure hard- ships and trust a right of return prom- ised to my people since the exodus of thousands of Palestinians, including my grandparents, from Palestine in 1948. The ongoing hardships for Pales- tinian refugees in several Arab host countries include a lack of basic rights, such as adequate public education, healthcare, employment opportunities, and a Ƃ ordable housing. On the one hand, it is only logical and humane that everyone is entitled to live in their home country. On the other hand, the reality is that the right of return functions largely as a numb- ing doctrine promoted by the Palestin- ian leadership with contradictory poli- cies and poorly negotiated deals. Vol. 23/11/1, November 2022arabianbusiness.com 45 the world’s biggest and best designer brands, just a short, air-conditioned stroll from the hotel. We also o Ƃ er many beneƅ ts exclusively for guests, such as a personal shopper service, hand-free service when shopping and staying in the hotel, bookable appointments from shop stylists, shopping credit to spend in the mall when staying with us for more than three nights, access to exclusive retail events, as well as VIP access to all the mall’s leisure and enter- tainment facilities. What do you have planned for the Qatar World Cup 2022? We are o Ƃ ering a luxury package ƅ t for a VIP guest during the tournament, which will include room stays together with private jet travel to any match venue of their choice. For those who would prefer the comfort of watch- ing the matches from Dubai, we will be stream- ing the games live on big screens at our F&B outlets, Salero and Olea. Guests will also be able to watch the games from their rooms, and we’re putting out a special room package which enable football fans to stay longer, for less. What makes the Aspen chalets unique? A one-of-a-kind experience that can only be found at Kempinski Hotel Mall of the Emirates, the property’s indulgent Aspen Ski Chalets o Ƃ er an ideal break from desert life, transport- ing guests to Colorado and Courchevel without the need to travel, while the contemporary chic Aspen Pool Chalets were inspired by European coastal living. Guests can enjoy superior service and beneƅ ts including a dedicated butler avail- able 24 hours a day, private check-in and check-out, daily breakfast in the Executive Lounge, a special room service menu and complimentary access to Ski Dubai. Also, we are considering adding more chalets and a dedicated restaurant directly in the snow. What are some exciting plans for your property moving forward? We are establishing the hotel as one of the lead- ing dining destinations of the region, by adding unique dining concepts to the hotel in partner- ship with reputable F&B experts. We will also be upgrading facilities including our outdoor swimming pool and introducing spacious new luxury family suites to accommodate longer stays. Additionally, we will be embarking on more partnerships with luxury retailers to ensure our guests enjoy the added beneƅ t of luxury shopping throughout their stay. W hat key di Ƃ erentiating factors makes your property ideal for Dubai visitors? With our central location in the heart of Dubai, near Dubai Marina and Palm Jumeirah and with direct access to Mall of the Emirates, the hotel has managed to host tourists from all around the world and we continue to receive a high percentage of repeat business and loyal guests. We o Ƃ er 388 luxury rooms and suites including our Aspen Pool Chalets with direct access to two outdoor inƅ nity pools, and Aspen Ski Chalets. How has proximity to Mall of the Emirates leveraged your business? With direct access to the city’s ultimate shop- ping destination, Kempinski Hotel Mall of the Emirates o Ƃ ers guests shopping privileges to Explore Dubai in luxury with Kempinski Mall of the Emirates Kempinski Hotel Mall of the Emirates is a Ɔ agship regional hotel in Dubai for 16 years. General manager Slim Zaiane reveals exciting plans in store during the FIFA World Cup 2022 and into 2023 Exciting offer Zaiane says the hotel is presenting a luxury package ƒ t for a VIP guest during the FIFA tournament | BRAND VIEW 388 The number of rooms and suites available for guests at the Kempinski Hotel Mall of the Emirates 46 POLITICS | for Palestinians to benefit, they will need to work with the geopolitical changes proposed in the Accords. Therefore, if I were the President of Palestine, I would approach the Abra- ham Accords constructively to expedite a resolution for the Palestinian people while nurturing long-lasting, produc- tive relations with other regional play- ers. To this end, I would first avoid inference in the sovereignty of other countries, particularly those involved in the Accords. With over 600,000 Pales- tinians currently living in Arab states in the Gulf, I would avoid antagonism and encourage efforts to help my people rather than putting them at any risk that could arise from diplomatic crises. I would not criticise any govern- ment for signing peace treaties with Israel, particularly in light of the sign- ing of the Oslo Accords by my prede- cessor Yasser Arafat. The latter was relatively unsuccessful in recognising the real needs of the Palestinian people and had few tangible outcomes in establishing a two-state solution. It also led to the creation of the Palestin- ian Authority, which was plagued by much internal corruption, nepotism, and bribery. It also resulted in the widening of the class gap between Gaza and the West Bank. In addition, and as mentioned earlier, it has failed the Palestinian refugees. As the President of Palestine, I would approach the Abraham Accords with more constructive action and demands for my people, given the agreements are already in place and celebrated by all parties involved. I would ask for the Abraham Accords’ key players to ensure that Palestinian refu- gees obtain more rights, like facilitated immigration to other countries, compensation, and other settlement options. I would also advocate for amplifying Palestinian voices to partic- ipate in creating reforms and develop- ing means of cooperation and collabo- ration within the Abraham Accords framework. For the Accords to beneƅ t all parties involved, Palestinian repre- sentation must be maintained in economic, diplomatic, and cultural discussions with other regional players. Shireen Abou Akleh was also killed in the West Bank, an event that sent shockwaves through the media. A Humanitarian Committee, in the context of the progressive Abraham Accords, is necessary now more than ever to ensure the Accords result in regional stability and bring account- ability to curb further instances of violence on both sides. I would also work towards ending the annexation of Palestinian lands. I feel conƅ dent this goal would receive support from the major actors involved, especially the UAE. The Emirati Ambassador to the United States, Yousef Al Otaiba, went on record early in the process to state that the Accords were primarily “about preventing annexation.” Economically, I would strive to extend the same positive economic growth mutually beneƅ tting Arab states like the UAE and Israel to the displaced people of Palestine and those in the West Bank and Gaza. If I were the President of Palestine, I’d want to ƅ nd constructive resolutions to land disputes, annexation, refugees, religious violence, and other systemic issues. For many years, stagnation has made any tangible progress or peace between Arabs and Israelis impossible. The Abraham Accords would o Ƃ er any leader of Palestine a more promi- nent seat at the table with the support of major Arab states that have clout in the region. As President, it would be my prerog- ative to work with these major players to push through fundamental reforms rather than continue to give empty promises to my people. Stability Palestinian representation must be maintained in economic, diplomatic, and cultural discussions with other regional players Voice for change Khazaal believes in constructive resolutions to issues confronting Palestine Stagnation has made any tangible progress or peace between Arabs and Israelis impossible At the level of the Accords, a Humanitarian Committee should be established to monitor violations from both sides. With ongoing instability in the West Bank, two wars in Gaza, and the repetitive launch of Hamas rockets from Gaza toward Israel, violence between Israel and Palestine is impos- sible to overlook. Palestinian deaths have reached the highest levels in seven years. Israeli Major Bar Falah was killed by two Palestinian militants the day before the second anniversary of the Accords signing. The following day, 17-year-old Oday Salah, a Palestinian, was shot and killed. Palestinian doctor Abdullah Al Ahmad was most recently killed in Jenin, West Bank. Earlier this year, accomplished Palestinian-American journalist Vol. 23/11/1, November 2022arabianbusiness.com 47 In his current role as managing director of Johnson & Johnson Philippines, Krishnan over- saw all three sectors and led the transformation of the company into a modern organisation, underpinned by bold portfolio pivots, leapfrogging the digital agenda, and building new capabilities. His predecessor, Makis Kosmatos, most recently served as the Area Managing Director for AMET (Africa, Middle East, and Turkey). He led the team to double-digit growth and has consistently delivered proƅ t by focusing on driv- ing innovation and transformation of the AMET portfolio. His strong external engagement enabled him to reshape the company’s reputa- tion with strategic stakeholders. In just ƅ ve years, Kosmatos has established streamlined processes and tools to ensure align- ment across all core areas of the business under one overarching successful commercial strategy. He has played a pivotal role in redeƅ ning the organisational approach with key distributors, landing amazing results. J ohnson & Johnson Consumer Health are pleased to announce the appointment of Raghu Krishnan as the new Area Managing Director for AMET (Africa, Middle East, and Turkey), e Ƃ ective September 1st, 2022. Krishnan is replacing Makis Kosmatos who will be appointed to the position of Area Manag- ing Director for Southern Europe and France, following a ƅ ve-year stint dotted with successful growth numbers. Krishnan brings with him a strong track record – an international career spanning 25 years and seven countries across the Middle East, Europe, and Asia where he led multicultural teams and navigated highly complex challenges. He is a leader who relishes new experiences, leads with a high level of collective engagement, and fosters a culture of innovation, boldness, and execution excellence. Johnson & Johnson appoints new Consumer Health area managing director for AMET region Raghu Krishnan will spearhead all areas of the healthcare giant’s consumer health strategic development across the region Global reach Johnson & Johnson Consumer Health are uniquely positioned to help improve personal health by delivering quality products BRAND VIEW | Man for the job Krishnan has a strong career spanning 25 years 1.2BN The number of people J&J brands help live healthier lives every INDUSTRY | 48 launched by Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister and Chairman of the Council of Economic and Development A Ƃ airs. “We have all the capabilities we need to enable a competitive and sustainable industrial economy – from ambitious young talent, a distinguished geographic location, rich natural resources and the pres- ence of leading national industrial companies,” said the Crown Prince. “Through the national strategy for S audi Arabia launched its new national strategy for industry in October, aimed at making the country a manufacturing power house and accelerating its economic diversiƅ cation drive. The new industrial strategy envisages tripling the country’s industrial domestic product and doubling the value of industrial exports to reach SAR557bn ($148.2bn). It also targets to attract SAR1.3 trillion ($350bn) of additional invest- ment in the sector, besides increas- ing exports of advanced technology products by around six times and creating tens of thousands of quality, high-value jobs. The new programme was Saudi Arabia’s grand strategy Launched by Saudi Crown Prince Mohammed bin Salman Al Saud, the kingdom’s new industrial strategy looks to increase exports to $148bn Saudi Vision 2030 Crown Prince Mohammed bin Salman said Saudi Arabia will become a leading industrial power that contributes to securing global supply chains and exporting high-tech products to the world $350BN The additional investment Saudi Arabia aims to attract through the new industrial strategy INDUSTRY| Vol. 23/11/1, November 2022Thursday 26 th January 2023 Museum of the Future, Dubai, UAE Recognising the pioneers and thought leaders across the region’s business, economic and financial landscape COMMERCIAL ENQUIRIES Saraswati Agarwal Group Commercial Director Tel: +971 4 444 3352 GSM: +971 52 895 2214 E-mail: saraswati.agarwal@itp.com EVENT ENQUIRIES Daniel Fewtrell Director of Awards & Marketing Tel: +971 4 444 3684 GSM: +971 50 276 5706 E-mail: daniel.fewtrell@itp.com Scan to submit Nominations Achievement Awards 2023 NOMINATIONS NOW OPEN www.connect.arabianbusiness.comNext >