October 2023 PAVING THE WAY TO A DECENTRALISED FUTURE Bijan Alizadeh, co-founder and Group CEO of Phoenix Group and visionary crypto leader, reveals the future for Web 3.0arabianbusiness.com 3 Contents October 2023 www.arabianbusiness.com SUBSCRIBE NOW +971 4444 3000 www.itp.com/subscription arabianbusiness#arabianbusinessarabianbusiness CO VER ST ORY Charting the course to Web3.0 Bijan Alizadeh has never been one to follow conventional paths. As co-founder and Group CEO of Phoenix Group, he’s spent the last decade blazing trails that few could see at the time MARKE T ING Amplifying brands Audio advertising has transcended traditional radio broadcasts and now also found their place in podcasts, streaming services and voice- activated devices 20 SUSTAINABILIT Y COP28 in Dubai Decision makers have the opportunity to walk the talk and address the commitment, implementation, innovation and leadership gaps by working together, says Dr. Dhanush Dinesh 120618 TRANSPORT Flying taxis in Dubai Advancements in electric propulsion, autonomous technology and air mobility have brought the dream of flying cars closer to reality, and the UAE is at the forefront of this evolution4 AB Leaders – October 2023 FIRST WORD | Matthew Amlot, Editor-in-Chief Sustainability takes the stage MATTHEW AMLÔT @MatthewAmlot Hello and welcome to the October mid-month issue of Arabian Business. We begin with a thoughtful cover story inter- view with Baker McKenzie Global Chair Milton Cheng. In a wide-ranging discussion, Cheng shares his views on the increasingly complex geopolitical landscape and the need to combine local expertise with a global mindset. As he notes, “It’s a complex world that is getting more complex, and local knowledge combined with a global outlook is even more critical than it’s been for a while.” This dynamic means that businesses need to “get on board or be left behind,” Cheng explains. Turn to page 20 to check out the full story. The past month saw a major announcement regarding Saudi arabia and the UAE entering BRICS. This is incred- ibly impactful and will have huge political rami cations and represents the importance of this region on the global stage. However, what are the economic bene ts? Dive into this topic on page 10. Meanwhile, the real estate sector remains a driving force of the regional economy. On page 28, we consider if now is the right time for Emaar Properties founder Mohamed Alabbar to launch a new real estate fund. Few can match Alabbar’s track record of success over several decades, so we examine if expanding his portfolio makes strategic sense. While most property news is positive, we also discuss on page 32 the lingering issue of cancelled projects, such as the Dubai Pearl development. The UAE already has robust safeguards in place for investors but navigating this is no easy task however, and we help answer this question on page 32. Sustainability is also a major theme as expectations ramp up ahead of COP28 later this year. Our dedicated section analyses the importance of the private sector to the climate debate on page 35, the UAE’s increasing e orts to combat global wildlife poaching on page 36, and inno- vative plans by the emirate of Umm Al Quwain to strengthen its eco-credentials as a tourism destination on page 40. Moving to the world of technology, we preview on page 46 the highly anticipated return of the massive annual GITEX event to Dubai this month. With major announcements and deals on the cards, we give a taste of what to expect. Our sister publication Arabian Business Leaders also features this month. The cover story profiles crypto pioneer Bijan Alizadeh of Phoenix Group, which is planning a landmark IPO. Alizadeh shares his optimism about the UAE’s growing prominence in emerging technologies such as blockchain. “Education will breed adoption, adoption will bring awareness and awareness will take us to the next stage,” with this cycle now well underway through e orts of univer- sities, accelerators and events being held in the country. With that I’ll let you get to reading. Until next time. The UAE is spearheading the ght against climate change with COP28arabianbusiness.com 5 SUBSCRIBE NOW www.itp.com/subscriptions +971 4 4443000 XPT VIEWS 24/10 • September 2023 DISRUPTING A GIANT Yasser Abdul Malak, Chairman and CEO of Nestlé MENA maps out his plan for shaking up an F&B behemoth UAE: AED 15 KSA: SAR 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 QATAR: QAR 15 Inclusive of VAT X LV interviews 24/09 • August 2023 LEADERSHIP Former UK Prime Minister David Cameron breaks down why it’s the team behind a leader that leads to success UK: £ 4.95 UAE: AED 15 KSA: SAR 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 QATAR: QAR 15 Inclusive of VAT INDEH NEWS PUBLISHED BY AND © 2023 ITP MEDIA GROUP FZ-LLC. NO ICE The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. 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PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Offices in KSA, UAE, UK, US, and INDIA I MEDIA GROU CEO Ali Akawi MANAGING DIRECTOR Alex Reeve DEPUTY MANAGING DIRECTOR Anil Bhoyrul EDI ORIA EDITOR-IN-CHIEF Rob Corder, rob.corder@itp.com MANAGING EDITOR Matthew Amlot, + 971 4 444 3264, matthew.amlot@itp.com SUB EDITOR Edward Liamzon, +971 4 444 3474, edward.liamzon@itp.com ARABIANBUSINESS.COM EDITOR AT LARGE Will Milner DESIGN SENIOR DESIGN MANAGER Geri Batara Sonny DESIGNER Mohammed Irqsosy S UDIO PHOTOGRAPHER Rajesh Raghav VIDEOGRAPHER Muhammad Kaleem VIDEO EDITOR Liju Cheruvathur RODUC ION PRODUCTION MANAGER Denny Kollannoor PRODUCTION COORDINATOR Mahendra Pawar SENIOR IMAGE EDITOR Emmalyn Robles E EN S & MARKE ING DIRECTOR OF AWARDS & MARKETING Daniel Fewtrell, +971 4 444 3684, daniel fewtrell@itp.com SENIOR MARKETING AND EVENTS MANAGER Anthony Chandran, +971 4 444 3685, anthony.chandran@itp.com DIS RIBU ION HEAD OF DISTRIBUTION AND NEWSTRADE Abdulrahim Alparambil DISTRIBUTION COORDINATOR Avinash Pereira CIRCULATION EXECUTIVE Rajesh Pillai AD ER ISING GROUP COMMERCIAL DIRECTOR Saraswati Agarwal, +971 4 444 3352, saraswati.agarwal@itp.com SENIOR COMMERCIAL MANAGER Neha Sikri, +971 4 444 3353, neha.sikri@itp.com SENIOR COMMERCIAL MANAGER Samir Glor, +971 4 444 3320, Samir.Glor@itp.com I GROU CEO Ali Akawi CFO Toby Jay Spencer-Davies CORPORATE WEBSITE itp.com CIRCULATION CUSTOMER SERVICE +971 4 444 3000 WEB arabianbusiness.com6 AB Leaders – October 2023 SUSTAINABILIT Y COP28 is a chance for businesses to walk the talk on food and climate Addressing sustainability in the food and agriculture sector is a must at this year’s COP towards meeting the 1.5°C goal. It will also identify any remaining gaps and opportunities for increased action. Additionally, the GST will measure progress in e orts to adapt to climate change impacts, particularly e orts to increase adaptive capacity, strengthen resilience, and reduce vulnerabilities. If the latest IPCC report is anything to go by, we’ll hear that we simply haven’t done enough. In fact, even if all present commit- ments to tackling climate change are implemented, we will still see global temperatures rise by over two degrees Celsius by the middle of this century. So, there’s a commitment gap – we need to commit more (time, money, and expertise) to tackling climate change. There is also an implementation gap – it’s what prevents the commit- ments that have been made from being ful lled. This is because of a number of reasons, from lack of capacity for implementation, access to nance, and changing political priorities. We are also facing an innovation BY DR. DHANUSH DINESH, FOUNDER AND EXECUTIVE DIRECTOR CLIM-EAT, HUGO HAGEN, SENIOR BAYER REPRESENTATIVE – MIDDLE EAST SUSTAINABILIT Y 1 % The estimated reduction in global GDP by 2050 if global temperatures rise by 3.2°C, the Swiss Re Institute said COP28, the annual climate summit, will be held in the UAE in less than two months. The summit will mark the conclusion of the rst Global Stocktake (GST) since the Paris Agreement. The GST is a critical process that will assess global progress COP28 can accelerate action on climate change and make the food and agriculture sector more sustainablearabianbusiness.com 7 SUSTAINABILIT Y It is important to learn from failed attempts at innovation as they o er lessons for improving future e orts gap, particularly in relation to climate change and its effects on food and agriculture. Scientists have estimated that even if all known innovations were applied at scale, we’ll only achieve 40 percent of the emissions reductions needed from the sector. This means we need more innovation. Finally, there is also a leadership gap. On the one hand we need world leaders to embrace innovation and take action. But it isn’t just the respon- sibility of heads of state; it’s also on each and every one of us, as we are all stakeholders in the food system. We need to ensure that companies or organisations we work for walk the talk on climate and food systems. We believe that by addressing all these gaps, COP28 can accelerate action on climate change and make the food and agriculture sector more sustainable. To make this a reality, we call on stakeholders to do three things: 1. Work together to test and scale innovations Agricultural innovations go all the way from better seeds (e.g., seeds of more productive, resilient food crops) and better crop protection (e.g., biologi- cals) to new, more sustainable ways of producing fertiliser (e.g., green ammonia) or digital agriculture solu- tions (using digital technologies for farming). Innovations like these are what drives regenerative practices in agriculture and can help farmers become solution providers in the ght against climate change. We have a pipeline of solutions that can help tackle the climate crisis, but these are dependent on testing, scaling and lesson learning. 2. Embrace failures and learn from them It is important to learn from failed attempts at innovation as they offer lessons for improving future e orts. For example, Thomas Edison made 1,000 failed attempts before inventing the light bulb. We need to take risks, make mistakes and learn from them to respond to the climate change chal- lenge. This is what we have been doing and education etc. Moreover, regenerative agriculture as a farming practice can help to miti- gate climate change and build resilience to its impacts. A systemic approach and national-level food systems pathways are key to enable innovation in this area, while delivering net bene ts to nature in terms of better soil health, restored biodiversity, reduced water use and sequestered carbon. In this context, the recent COP28 calls on governments to ensure food systems and agriculture are central to climate action e orts are a welcome development. Agriculture is a major contributor to climate change, accounting for around 24 percent of global greenhouse gas emissions. However, it also has the potential to be a major solution to climate change. At COP28, decision makers have the opportunity to walk the talk and address the commitment, implemen- tation, innovation and leadership gaps, by working together, embracing failure and taking a systemic view. This needs to go beyond a new initia- tive, or wording or funds, to a shift of culture to actually implement actions on the ground. But it's not just up to governments. We all have a role to play. An inclusive and action-oriented approach will be essential to bringing together the Global North and the Global South, and uniting all stake- holders and sectors—public, private, academic, civil society, women, youth, and indigenous peoples. through the #Failure4INNOVEAT campaign, and we call on you to join us. 3. Take a systemic view According to a recent survey conducted by Bayer with 800 farmers equally sourced across Australia, Brazil, China, Germany, India, Kenya, Ukraine and the US, 71 percent say that climate change has already had a large impact on their farm. Farmers are living with climate change. It is impacting them and will continue to impact them. But, as with regulation, they are adapting to it rather than trying to influence it. Innovation in the agricultural sector cannot take place in silos, and there is a need to adopt a systems approach to advance regenerative agriculture. For example, digital farming technologies o er a lot of potential. They are key to helping tailor the right solution to the speci c conditions of each individual farm and allowing farmers to make more informed decisions about how to grow more crops with fewer resources and a better climate foot- print. But to achieve scale, we need to improve access, connectivity, coher- ence in data management, training Regenerative agriculture as a farming practice can help to mitigate climate change and build resilience to its impacts8 AB Leaders – October 2023 ECONOMY Overcoming executive challenges: Best practices for e ective leadership Hiring specialists is a key tool in CEO success Leadership challenges vary depending on the size of the business. The nature of start- ups and SMEs, however, make them go more often through transformations, and much faster. Let’s delve into the dynamic world of executive leadership within these companies to explore critical strategies for success, including fostering innova- tion, managing nancial constraints, and cultivating talent, while also exam- ining the hurdles CEOs must overcome to achieve sustainable growth and maintain a competitive edge in today’s rapidly evolving market. What is a CEO’s mind like? CEOs tend to do many things at the same time, as their role itself requires a multitasking mind. However, unless these skills are honed, they end up losing focus. To develop their organisa- tion without losing this focus, particu- larly when diving into a routine or doing all things as a jack-of-all-trades / master-of-none, (for example, also overseeing HR, accounting, operations, business development and project management), they need to stop doing everything and stay resolute on what they do best, i.e. be the leader of the organisation. An example can be seen in the restaurant industry – a great chef decides to open a restaurant; however, he doesn’t know once it’s open, he won’t be able to cook anymore. He’ll need to manage the business, take care of legal- ities and day to day operations, hire a team etc. Every founder needs to make a call if he or she wants to continue doing what he/she is good at and hire a manager for their business, or to become a manager and hire specialists to do the work. Many CEOs get confused here, try to do both, losing focus, failing in managing their business and then go back to being a specialist in someone else’s business. If one does go down the route of hiring specialists, it isn't easy to attract top talent while you are still a small business and not well-known on the market. Talent management and recruitment is something that may be BY ANASTASIYA GOLOVATENKO, ACCOUNT DIRECTOR, SHERPA COMMUNICATIONS LEADERSHIP Market factors, legislative changes, rapid evolution of technologies such as AI and many other elements can completely disrupt a business overnightarabianbusiness.com 9 LEADERSHIP Leadership is many things at once, and while it can take years to master, just being on that path of learning is enough to help your business grow di cult for an SME or startup founder to do on their own as there are millions of other tasks that will keep distracting. That’s even before we start talking about how to build a full team. Finding people who can work together effi- ciently and purposefully, towards a common goal while keeping them moti- vated for months and years, this is a herculean task that many who have full time jobs in companies don’t realise the gravity of. That’s because it’s always ‘someone else’s job’ to do this when you’re a salaried employee. Once you’ve set up and have the right people in place, the next challenge a leader will face is the rapid pace of change in a volatile economy. Take for example the current situations success- ful startups are facing worldwide, which saw a spate of rings and redundancies being announced in the first half of 2023. Market factors, legislative changes, rapid evolution of technologies like AI and many other elements can completely disrupt a business over- night. A strong, efficient leader can navigate these changes due to their skills in adapting to situations no matter the intensity. This brings us to another required skill: decision making in di - cult situations. The journey to the top may have many steps, but once you reach there, it is a lonely endeavour. You have only your wits, your experience and your gut instinct to rely on. Building your corporate culture around your leadership style Managing personalities – that’s the key to building a powerful and efficient corporate culture. A leader needs to understand and acknowledge the di erence between his A-players and B- or C-players. They all need to be managed di erently. If CEO focuses on the development of top performers only, which is usually only 10 percent of a workforce, they will have an ine ective team. If they keep developing B- and C- players, A-players will leave an organisation as there is no drive and development for them there. This, coupled with the fact that every person has a di erent personality e.g. proac- tive, reactive, submissive, assertive, communicated. Your vision should be broken down into a yearly strategy, the strategy into quarterly plan, the quar- terly plan into monthly KPIs and focus areas. This helps everyone stay focused, from the top down. Balancing risk-taking and innovation with stability and consistency as a leader Everyone has a different leadership style, borne off their strengths and weaknesses. Thus, it is highly recom- mended to have a founders in a business or a founder plus executive team with varying expertise and performance styles. If your personality is that of a go-getter, it’s recommended to have an analytical person with you to balance that risk taking, outgoing approach and get second opinion to vet ideas and strategies. Quite often, an analytical person runs a business, while a go-get- ter leader is responsible for innovation and business development. Developing future leaders A business can only grow based on the growth trajectory of its people. Busi- nesses that provide opportunities for their team to grow into leadership roles usually thrive as a sense of ownership is instilled in said team members. However, two things are critical for this to succeed: A healthy feedback and coaching environment where areas for improvement and development are identi ed. It is important to remember that a business, especially, small businesses, must be accountable to itself rst, then to its shareholders and customers. The effectiveness of leadership strategies should be measured by setting clear goals, tracking progress towards those goals, gathering feedback from team members and stakeholders, and assess- ing the impact of the strategies on the organisation’s performance and culture. Without this, a business is just working on feelings and emotions of founders rather than actual results and impact. Leadership is many things at once, and while it can take years to master, just being on that path of learning is enough to help your business grow. aggressive, sublime, makes it more evident that senior leadership is more about people management than busi- ness management. Richard Branson keeps stressing that a leader should focus on his people, and the people will take care of the business in turn. Aligning your team It is critical to ensure your processes are geared towards a cohesive under- standing of the business itself among your team members. While tasks come and go, the underlying deliverable should always be the growth and success of the business itself. Once this becomes second nature to the team, all processes become attuned to this deliverable. From regular catch-up sessions with leadership teams to revisiting the company’s vision and mission from time to time, it’s impor- tant to make sure this cohesiveness is Finding people who can work together ef ciently and purposefully is a herculean task, says GolovatenkoNext >