< PreviousDubai property Twitter Inc Property deals on December 19 included 476 sales transactions worth AED1.17bn and 92 mortgage deals worth AED181.95m Monthly users will fall to 50.5 million in 2024 - the lowest since 2014, according to Insider Intelligence NEWS IN NUMBERS Boosting image The event, which has attracted global attention, will help to speed up growth across a range of industries, including travel and tourism, hospitality, infrastructure, and assist Qatar in achieving its National Vision 2030. The Arab world, Asia and the world at large should learn from Qatar’s hosting of the tournament by promoting inclusivity, sustainability, and global community. The World Cup will provide a great legacy for Qatar’s reputation on the international stage. Energy ef ciency The Global Sustainability Assessment System, which de ned the criteria for the operational performance of structures and stadiums for the World Cup, was developed in Qatar. When compared to other buildings constructed in accordance with the American Society of Heating recommenda- tions, we can see the method allowed Qatar’s newly constructed stadiums to achieve energy savings of 45 percent. As a result, it established a benchmark for energy ef ciency. Economic impact The legacy of the nation’s cutting-edge technology, transportation, and utility infrastructure will improve its competitiveness in the long term. According to projections, the event’s economic impact will be $20bn in 2022, or 11 percent of GDP prior to the pandemic in 2019. The 2022 FIFA World Cup added 1.5 million new jobs to the economy in industries including construction, real estate, and hospitality. Additionally, the nation’s economic diversi cation plan has achieved momentum. GOOD MONTH BAD MONTH THREE REASONS WHY The lasting impact of a sporting event of this signi cance goes far beyond obvious economic gains Upfront The top news and business headlines from the region JANUARY 2023 The 2022 FIFA World Cup will provide a great legacy for the region Kaspersky’s detection systems discovered an average of 403,000 new malicious les daily over the past 10 months. By comparison, about 380,000 of these les were detected every day in 2021, demonstrating a 5 percent jump. In total, Kaspersky’s systems detected approximately 122 million malicious les in 2022, 6 million more than last year. 10 Vol. 24/01, January 2023 Cybercriminals attack users with 400,000 new malicious les daily in 2022 2019 310000 370000 340000 400000 410000 320000 380000 350000 330000 390000 360000 202020212022 Kaspersky experts discovers a 181 percent increase in the proportion of ransomware detected dailySMART HEALTHCARE STARTS HERE! As part of the Kingdom’s Vision 2030, the Health Sector Transformation Program will restructure the healthcare industry. Integral to this restructuring is a move to e-health services and digital solutions, as well as improving the quality of health services. Keynote presentations by government and healthcare sector will explore topics in detail, with an eye towards examining key takeaways and valuable information for industry leaders on developing a smart healthcare system. NETWORK, MEET YOUR TARGET MARKET, AND DO BUSINESS! Adjacent to the strategic level conference is the expo area where event sponsors and exhibitors will showcase the latest in smart healthcare technology to delegates during the conference breaks. It provides the perfect one-stop-shop to network with the industry and increase your business potential! Event website with further details is: www.smarthealthcareksa.com 7 & 8 MARCH 2023, RIYADH Event focuses on digital transformation of the healthcare sector to achieve Industry 4.0, and how this will improve efficiency, efficacy, meet patient demand, and realize objectives of the Health Sector Transformation Program AN ITP MEDIA GROUP EVENT SMART HEALTHCARE KSA CONFERENCE & EXPO 2023 ENABLING HEALTHCARE 4.0 LAYLA ALSALEHI Director of Virtual Healthcare Service Activation, Ministry of Health AFNAN CHOWDHURY Director of IT Applications, Al-Ahsa Health Cluster DR TAMARA SUNBUL Director of Clinical Informatics, Johns Hopkins Aramco Healthcare DR MUSSAAD M. AL-RAZOUKI Chief Executive Officer, Kuwait Life Sciences Company AHMED ALZAHRANI Director of Healthcare Technology Development, Ministry of National Guard, Health Affairs MOHAMMED ALHEFZI Digital Partner and Country lead, Pfizer DR MAHER ALDUKHEIL VP of Technology & Digital Transformation, Hail Health Cluster DR LAMYA OMAIR Head of AI & Bioinformatics, King Abdullah International Medical Research Center For further details including event sponsorship and exhibitor opportunities call: Krishna Mahbubani Tel: +971 (0)52 874 2175 or email: Krishna.Mahbubani@itp.com CONFIRMED KEYNOTE SPEAKERS INCLUDE:IND USTRY | 12 Vol. 24/01, January 2023 Corporation, The American University in Cairo and Arabian Business ESG, investing in ESG is twice as likely to be considered by female investors and policymakers than by male investors. Women disrupt ossified systems, evolve established norms, and spark collaborative movements. In the face of this overwhelming evidence, women continue to be under- represented and undervalued in busi- ness. In the Middle East, women repre- sent around 49 percent of the region’s total population but their participation in the labour force and corporate lead- ership positions is signi cantly lower. A closer look at the data also reveals the gap in the number of women owning and managing microenterprises, small and medium-sized enterprises (SMEs) and leading large corporations. Government-led initiatives, such as the introduction of paid parental leave in the UAE, o er tangible solu- tions that will help to address this imbalance going forward. The Emir- ates Securities and Commodities Authority (ESCA) has also introduced a requirement for all UAE companies The bene ts of women in business go beyond economic growth The business case for widening women’s participation in the global economy is clear Imbalance Women represent around 49 percent of the region’s total population but their participation in the labour force and corporate leadership positions is signi cantly lower SPOTLIGHT | Higher education London Business School is prioritising gender parity across its programmes BY FRANÇOIS ORTALO-MAGNÉ , DEAN, LONDON BUSINESS SCHOOL The United Nations Industrial Organisation estimates coun- tries are losing $ 7 trillion in wealth because of differences in women’s and men’s lifetime earnings. Global human capital wealth would increase vefold if women earned as much as men, according to a report by the World Bank. The contribution of women in business to facilitating wider, positive social and cultural change is also profound. According to a combined study by Arab Petroleum Investments arabianbusiness.com 13 32% The proportion of women in LBS’s Dubai- based Executive MBA programme last year | SPOTLIGHT to have at least one woman on their boards by 2025. Research released earlier last year by Aurora50 and Mohammed Bin Rashid School of Government (MBRSG) suggests 8.9 percent of companies have met the standard thus far. The percentage is a signi - cant improvement on the 2020 gure (just 3.5 percent of companies), but progress must accelerate in the coming years if business is to meet ESCA’s target. Realising this potential will require a collective effort – from government, the private sector and educational institutions. Educating women leaders At London Business School, we are prioritising gender parity across our programmes and looking beyond the typical business school recruitment pipelines, such as consulting and nance, to boost women’s represen- tation in leadership positions. Last year year, 32 percent of candidates in our Dubai-based Exec- utive MBA programme are women. We recognise the critical role busi- ness education plays in launching talented women towards C-Suite positions and are committed to seeing the percentage of women on the programme grow even further. Central to these efforts is our Forever Forward campaign, which aims to boost women’s representa- tion in business through a greater emphasis on research, innovation, and the learning environment, and a doubling of our scholarship o ering. It was a privilege to launch the campaign and meet with members of our 50,000 person-strong alumni network during my recent visit to Dubai; our MENA-based graduates are at the forefront of supporting women’s leadership development in the region. Muna Al Gurg, Vice Chairperson and Retail Director of Easa Saleh Al Gurg Group and an LBS alumna, is a prime example of this. As a leader within our community, she is showing the way. With the Muna Al Gurg Schol- arship Programme at LBS, she is directly contributing to the presence of women at the senior level of compa- nies, creating a pipeline of future female CEOs in the region. That impact is already being felt. Recipients hold senior roles in businesses across the MENA region and in sectors as diverse as nance, energy and government. Women’s Entrepreneurship Day earlier last November saw communi- ties empower, celebrate, and support women in business across the globe. It was also a timely reminder that, with so much talent and knowledge waiting to be unleashed, we all stand to bene t from championing women’s greater representation at the upper echelons of business. Developing leaders of tomorrow Improving access to world-class busi- ness education is a formidable lever through which that potential will be realised. It is through business educa- tion that the knowledge, critical think- ing skills and networks are developed that will ensure measures such as ESCA’s minimum board quota are not only met but exceeded. More broadly, it is an accelerator that will deliver not just economic prosperity, but a better, more sustainable world for all. Female empowerment Women disrupt ossi ed systems, evolve established norms, and spark collaborative movements LBS alumna Muna Al Gurg, Vice Chairperson and Retail Director of Easa Saleh Al Gurg Group Knowledge Improving access to world-class business education is a formidable lever, Ortalo-Magné believesIND USTRY | 14 Vol. 24/01, January 2023 states that a family business does not cease to exist due to the death, inter- diction, bankruptcy, or insolvency of one of the partners will take e ect in January with the intention of increas- ing the economic impact of family businesses on the nation and luring more companies to base their oper- ations in the UAE . Good governance is truly signi - cant in a region like the GCC, where family businesses play a critical role in the economy, account for more than 90 percent of the private sector and generate almost 70 percent of employment. From multigenera- tional conglomerates to neighbour- hood concepts, family businesses in the Gulf play an instrumental role as innovators. Of course, the foundation of every family business is built around a set of values and a huge part of a compa- ny’s legacy is also ensuring longevity and resilience. From my experience, it is important for founders to create companies with the intention of growing it into a conglomerate with a continual focus on sustainable business continuity. For this reason, it is essential to constantly work Good governance is the bedrock of a successful family businesses The foundation of every family business is a set of values that form a huge part of a company’s legacy, longevity and resilience Legacy Family businesses have a fundamental responsibility to create value for future generations GOVERNANCE | Leader Al Gurg says part of a company’s legacy is ensuring longevity and resilience BY MUNA EASA AL GURG , VICE CHAIRPERSON AND DIRECTOR OF RETAIL FOR THE EASA SALEH AL GURG GROUP Sitting on the board of a family business is as much a privilege as it is a huge responsibility. Our 62-year-old family business, the Easa Saleh Al Gurg (ESAG) Group, recently underwent a smooth succes- sion process, the groundwork of which was put in place over many years and benefited hugely from a growing focus on governance – an essential factor in the success of any business family-owned or otherwise. The new family business law arabianbusiness.com 15 84% The proportion of family businesses in the Middle East having some form of family governance policy in place, according to PwC | GOVERNANCE towards creating clear guidelines on roles, responsibilities, and bene ts of all stakeholders, from sharehold- ers to family to non-family member employees. At ESAG, we recently developed ESAG2025, a roadmap outlining our purpose and core stra- tegic objectives for the next three years. We involved all members of the leadership team in the process to outline future goals and reinforced the values with which we will conduct business, namely empowerment, integrity, and diversity. Why is governance important? A PwC survey conducted last year indicated an increase in family con icts in our region, therein high- lighting the importance of a well-de- ned governance structure to facili- tate succession planning and con ict resolution, among others. From passing the baton of lead- ership to clarity on shareholder participation and role de nition of family and non-family member employees, clear guidelines are key to the success of family businesses. Reinforcing the importance of gover- nance, the UAE has issued a law regu- lating family business ownership to ensure a smooth transition for successive generations. How to build a business that will last? Although there could be gaps, family businesses in the Middle East gener- ally take governance seriously with 84 percent having some form of family governance policy in place, according to the PwC survey. That itself is a step in the right direction to build a purpose-driven and prof- itable business – especially since business growth is a top priority for the next generation of family busi- ness members (65 percent). Reassur- ingly, a PwC Global NextGen Survey conducted this year found a similar percentage (64 percent) value sustainable business practices. Family businesses have a funda- mental responsibility to create value for future generations, who are often soring MBA and executive education courses at London Business School. These are open to family and non-family member employees. In the past 12 months, the initiative helped a senior female colleague undertake an intensive 11-week programme to equip her with the knowledge required to ful l a new role within the organisation. At a time when the world faces tremendous uncertainty arising from supply chain disruption, emerging geopolitical risks, and the ongoing disruption from digital, it’s time to embrace a family business formula for lasting success. While a one-size- ts- all model is a myth, good governance hinges on a collective sense of purpose, people, and community centrism. I strongly believe that the time is now to focus on legacy for future generations and deliver on promises to nurture businesses that will last. That is what we are doing at ESAG, and I believe the future will reward Gulf family businesses that succeed. Future plan ESAG2025 is a roadmap outlining the company’s purpose and core strategic objectives for the next three years I strongly believe that the time is now to focus on legacy for future generations and deliver on promises to nurture businesses that will last the driving force behind innovation and impact-making. Open commu- nication with them is vital to create policies and processes that will empower them to leverage new growth opportunities. Being mindful of this at ESAG, we have several knowledge-based upskilling initiatives such as spon-IND USTRY | 16 Vol. 24/01, January 2023 threat to the world and for NEOM an increased probability of droughts, dust storms and higher tempera- tures. Under a high emission scenario, NEOM could experience an increase in air temperature of 2–4 °C by 2050 – 2070. This will conse- quently impact the lives of all resi- dents including the wildlife of NEOM. Which is why NEOM, as part of Saudi Arabia’s leading role on climate change action, is designing the world’s most livable and sustainable society. A thriving economy and home to millions, powered by trans- formative environmental technolo- gies. A signi cant challenge but one that we are meeting head on and where we have already made inroads. Sustainable undertaking At NEOM, a climate- rst approach to sustainable development is intrinsic to all our plans and we are working with researchers, educators, startups and investors to make this a reality. We are also investing in and develop- ing clean energy generation, zero waste desalination, advanced and clean manufacturing, technology, research, and innovation across a How NEOM is preserving and enhancing Saudi Arabia’s natural capital The Gulf kingdom and the futuristic city of NEOM will play a key role in the battle against climate change Preserving nature NEOM will focus on repairing and rewilding the lands and sea, while protecting 95 percent of NEOM’s area for nature SUSTAI NABILITY | Development NEOM will build the world’s most livable and sustainable society BY PROFESSOR RICHARD BUSH , CHIEF ENVIRONMENT OFFICER AT NEOM It was clear during COP 27 that only through strong leadership and new technologies can we combat climate change, house an additional population of 3.2 billion people by 2 00, all while preserving our natural capital. Natural capital is our greatest resource, a wealth that resides not just in the environment, but also in social and economic bene ts. This is a realisation NEOM has had for years. Afterall, climate change is a serious arabianbusiness.com 17 $500BN The value of the NEOM megaproject being built in Tabuk Province in northwestern Saudi Arabia | SUSTAINABILITY broad spectrum of industrial sectors. Afterall, future solutions to the issues related to preventing and adapting to climate change discussed at COP 27 will be engineered and hosted in living labs like NEOM. It was also reassuring to see the global focus on hydrogen as a clean energy source and the creation of a Loss and Damage Fund for develop- ing and vulnerable countries. Renew- able energy will play a big factor in our long-term success. Once opera- tional, NEOM will be powered by 100 percent renewables such as solar, wind and green hydrogen-based energy. We’re already making way on that front including building the world’s largest plant to produce green hydrogen at scale, through a joint venture with ACWA Power and Air Products. Renewables drive decarbonisation through electrification, but green hydrogen can be core to sectors whose power needs exceed electri cation capabilities. NEOM will also be a leader in the development of green hydrogen solutions and the regional hub for its technology and production. Innovative clean energy storage initiatives are also being created such as a gravity energy storage system within THE LINE, a linear city of hyperconnected future communities, without cars and built around nature, stretching 170km long and 200 metres wide. The system will be operational by 2030 and will allow for a bulk energy supply to power THE LINE’s commercial and residential communities – optimising for low costs, minimal emissions, and maxi- mum reliability. Adopting the circular economy The NEOM region, leveraging the sale of the development, will also be deliv- ering a leading framework for the circular carbon economy, a way forward to managing and reducing any carbon emissions from renewable energy. A circular economy at scale will be in operation, too. OXAGON, NEOM’s advanced manufacturing centre and innovation hub, will of NEOM’s area for nature – a remarkable feat. Leveraging a succes- sional approach, we will start the regreening with grasses and plants that stabilise the sand. This will provide shelter for small animals and bring back native trees such as the acacia. Only through these studied measures we can bring back more species and habitats such as the oryx. Nature after all comes full circle, everything is connected and circular - and we must operate in the same way. Only through this philosophy can we expect transformational change on global warming. COP 27 acknowledged that the 1.5°C target will only be achieved through the protection of natural capital and a transformational shift in our economy. Achieving such targets requires fresh ideas and rm action alongside organisations like NEOM ready to do their part priori- tising the delivery of a more sustain- able future. To the world, we are open for business and welcome the inno- vators of tomorrow who together want to design and live in a sustain- able future. Energy sources Renewable energy will play a big factor in NEOM’s long-term success, says Bush To the world, we are open for business and welcome the innovators of tomorrow who together want to design and live in a sustainable future support its development with co-lo- cated industry designed to maximise synergies and help manufacturers close the loop on waste creating new industries in the process. All while through environmental conservation, to combat deserti ca- tion and other climate change prob- lems, will see us prioritise regener- ative development. NEOM will focus on repairing and rewilding the lands and sea, while protecting 95 percent IND USTRY | 18 Vol. 24/01, January 2023 ensuring clean energy supply for all and working in partnership will be two key drivers in the continuing ght against climate change. Ensuring security of energy supply is a key issue for 3M, as the drive for uninterrupted availability of energy at an a ordable price is something that is still out of reach for nearly a billion people globally. Democratising the ever-increasing need for energy is crucial to ensure that disparity between nations is minimised. During this panel we drove the discussion forward about how we can rstly ensure that supply is uninter- rupted both in near and long-term scenarios and secondly how we can ensure that the energy generated is as clean as possible. There are huge opportunities for policy makers and scientists to innovate in this area, which leads to our second panel’s focus, collaborations and partnerships. Shared responsibility The fight against climate change cannot happen in a vacuum and collectively we will only be able to meet this challenge through collab- Carbon neutrality is only possible if we work together With COP27 in the rear view mirror, it’s time to focus on achieving carbon neutrality Collaboration The United Nations (UN) said more than 3,000 businesses and nancial institutions are working with the Science-Based Targets Initiative to reduce their emissions in line with climate science SUSTAI NABILITY | Value chain Svinger says since 2019, every new product that enters the 3M commercialisation process is required to have a Sustainability Value Commitment BY LASZLO SVINGER , VICE PRESIDENT AND MANAGING DIRECTOR AT 3M MIDDLE EAST & AFRICA (MEA) Last year’s COP27 gathering demonstrated the strong inten- tions of nations, NGOs and private entities to commit to carbon neutrality and to face environmental challenges together. Now is the time to continue the momentum with a collab- orative, science-based approach to the challenges we all face. In November, 3M joined other global corporations, governments and non-governmental organisations at the 27th Conference of the Parties (COP27) in Sharm El Sheikh, Egypt to participate in the ongoing global dialogue and planning for combating climate change. We sponsored and participated in two discussion panels at COP27 centred around two key themes; energy security and collaborations and partnerships as we believe that Democratising the ever-increasing need for energy is crucial to ensure that disparity between nations is minimised arabianbusiness.com 19 $1BN 3M’s investment over 20 years in accelerating air and water stewardship and reducing the use of plastics | SUSTAINABILITY orating and bringing together thought leadership and action from government entities, NGOs, policy- makers, corporations and the scien- ti c community. Through our panel discussions we wanted to get into the detail of the technologies and policies to respond to the global energy crisis and to focus on how countries, corporates and public organisations can drive near- term solutions for energy su ciency. And something we really wanted to bring into sharp relief was dispar- ity and individualisation of solutions. We wanted to create a space where all parties could work together to iden- tify the opportunities and di erences required in technology and public policy for the Global South versus other developed geographies that will ensure energy access for all. We operate across a lot of indus- tries, so we realise that we have an immense ability (and responsibility) to enact change and provide leader- ship. We are also a company that’s firmly rooted in science, so that’s where we return to in order to nd solutions to challenges. This is why we have committed to achieving carbon neutrality in our operations by 2050 and we have also met many substantial short-term goals, including reducing our Scope 1 and 2 emissions by 75 percent since 2002, which includes a 26.1 percent reduction since 2019 and surpassing its 50 percent milestone of renewable electricity by 2025, with more to come in the next three years and are now investing $1bn over 20 years to accel- erate air and water stewardship and reduce our use of plastics. Environmental impacts Here in the UAE, we are especially susceptible to the impacts of climate change, due to our already hot and arid climate. The UAE State of Climate Report 2021 shows that in the UAE we are very likely to be impacted by rising temperatures due to the greenhouse e ect. Aside from the obvious environ- mental impacts there are wider towards innovation and new ways of thinking about how we do business as a manufacturer and how we continue to meet the needs of our millions of customers globally whilst still provid- ing them with the quality and stan- dards they expect from us. Since 2019, every new product that enters the 3M commercialisation process is required to have a Sustain- ability Value Commitment, demon- strating how it impacts social equality, circularity or climate efforts. 3M is dedicated to progress through science using its 51 technologies to develop sustainable products, while also imple- menting other leading technologies like thermal oxidation and reverse osmosis to implement carbon emissions and water reduction in our own operations. And in 2023, we will continue to push forward to ensure that we continue to help our customers reduce their GHGs by 250 million tonnes of CO2 equivalent emissions through the use of our products by 2025. The good news is that we’re already 100 million tonnes towards that goal. In 2023, we will also see the UAE host COP28, and we look forward to embracing this tremendous oppor- tunity to highlight the progress made in the collective fight against climate change. Repercussion The UAE is likely to be impacted by rising temperatures due to greenhouse effect The future of 3M as a corporation and the future of our planet are inexorably intertwined impacts, such as greater pressure being put on hospitals and medical clinics due to heat-related illnesses, impacts to infrastructure in our roads and buildings and then of course, there will be economic impacts. These will be reduction in productivity on a human level, rising electricity and production prices, just to start. So, at the very core of it, the future of 3M as a corporation and the future of our planet are inexorably intertwined. Adopting innovation So where does this lead us? This prompts us to strive more deeply Next >