December 2023 THE PIONEER Shaji Ul Mulk is transforming building design with Mulk International’s factor-based Qube systemwww.ftnft.comarabianbusiness.com 3 Contents December 2023 THE PIONEER Through calculated risk-taking and modular construction pioneer Shaji Ul Mulk transforms building design globally with Mulk International’s factor-based Qube system, revolutionising skyline production processes industry-wide LEADERSHIP What can Formula 1 teach us about balancing regulation and innovation? There’s a lot to learn from one of the world’s fastest sports SUSTAINABILIT Y COP28: Pressure mounts for meaningful climate action With only a few days to go until COP28 convenes in Dubai, pressures mount on leaders to turn intentions into impact after ‘disappointing’ COP27 outcome FA MILY BUSINESS Succession planning is not a sprint, it’s a marathon UAE family businesses have a unique opportunity to capitalise on their cultural heritage and create lasting value for themselves and their communities www.arabianbusiness.com SUBSCRIBE NOW +971 4444 3000 www.itp.com/subscription #arabianbusinessarabianbusinessarabianbusiness 20 062028 CO VER ST ORY4 AB Leaders – December 2023 FIRST WORD | Matthew Amlot, Editor-in-Chief In review MATTHEW AMLÔT @MatthewAmlot Hello and welcome to the December issue of Arabian Business. As 2023 comes to a close, it’s an opportune time to re ect on what has been a remarkable year for the GCC region. While economies around the world struggle with uncertainty, the Gulf has experienced a robust period of economic growth and development. Major infrastruc- ture and industry projects are transforming landscapes and diversifying revenues away from oil. This month’s cover story highlights one such entre- preneur seizing opportunities created by the region’s prosperity. Farah Zafar has built a highly promising tech platform called Lyvely after a long career as a corporate lawyer. In just weeks since its soft launch, Lyvely is on track for a lofty $3.2 billion valuation. Zafar’s vision of a social media platform that seamlessly monetizes users’ digital spaces could democratize how people earn income online. As she notes, big tech giants keep the pro ts while independent workers and creators struggle. Lyvely aims to redirect those ows. “This is for the masses, not just content creators. Doctors, lawyers, engineers, everyone can get on here, and start making money online. Big Tech does that, but it keeps all the money for itself, we put it in your pockets,” she says. Don’t miss Farah Zafar’s story on page 20. Elsewhere in this issue, we shine a light on less admi- rable practices within key industries. On page 12 is an in-depth examination of the shadowy world of reputation management. Through interviews with media profession- als, PR rms and reputation salvagers themselves, our investigation uncovers the lengths some will go to scrub their online images clean. It makes for sobering reading about human motivations and the power of the internet. Saudi Arabia continues leading Gulf development with monumental projects transforming its economic founda- tions. We pro le several gigaprojects on page 30, from NEOM to culturally ambitious Diriyah. These ventures epitomise the Kingdom’s ambitious Vision 2030 reforms. As COP28 climate talks get underway in the UAE this month, we pay tribute to sustainability leaders on page 36. In a special section called “Sustainability Heroes”, we name exemplary companies and individuals working to mitigate humanity’s environmental impact. Their e orts give hope that real change is possible. Finally, our regular Leaders supplement pro les Mulk Holdings Chairman Shaji Mulk. Through his insights on entrepreneurship and management, readers gain valuable perspective on qualities needed for success. With that I’ll let you get to reading. Until next time. Looking back there have been more ups than downs in 2023arabianbusiness.com 5 SUBSCRIBE NOW www.itp.com/subscriptions +971 4 4443000 XPT VIEWS 24/13 • 01 – 15 November 2023 UAE: AED 15 KSA: SAR 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 QATAR: QAR 15 Inclusive of VAT THE SOUND OF MONEY Kabir Mulchandani, Chairman and Founder of FIVE Holdings reveals all ahead of a massive $2bn IPO X LV interviews INDEH NEWS 24/14 • 16 – 30 November 2023 UAE: AED 15 KSA: SAR 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 QATAR: QAR 15 Inclusive of VAT BUILDING A LEGACY Thumbay Moideen, founder of Thumbay 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. Readers are advised to seek specialist advice before acting on information contained in this publication, which is provided for general use and may not be appropriate for the readers’ particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. 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 Andy Sulahian, +971 4 444 3597, andy.sulahian@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 – December 2023 SUSTAINABILIT Y As world leaders gear up to converge in Dubai this week for COP28, expectations are high that this year’s climate conference will move beyond dialogue to deliver concrete plans and commitments to tackle the climate crisis. The inclusion of oil and gas compa- nies for the first time signifies the importance of bringing all stakehold- ers to the table. However, after a “disappointing” outcome at COP27 last year, experts are questioning whether COP28 can reinvigorate global climate progress through meaningful action. One such expert is Emrah Durusut, COP28: Pressure mounts for meaningful climate action after COP27’s ‘disappointing’ outcome With only a few days to go until COP28 convenes in Dubai, pressures mount on leaders to turn intentions into impact after ‘disappointing’ COP27 outcome The UN climate conference, being held in the Middle East for the second consecutive year, will welcome over 70,000 visitors from all corners of the globe, including heads of state and industry leaders. COP28 will begin on Thursday and run until December 12. With only a few days to go, Arabian Business spoke to experts who will be in attendance to gauge their expecta- tions for the event, key areas for imme- diate action, and what a successful COP will look like – in their view. Key areas for action at COP28 “As the world converges at COP28 to BY TALA MICHEL ISSA SUSTAINABILIT Y Senior Partner at global ESG consulting rm Xynteo who believes COP27 was “hampered by all number of challenges and the watered-down results were a disappointment, not just to the major- ity of delegates, but for people and communities around the world.” Extending COP26 to include busi- ness in the conference was initially seen as a “gamechanger” but COP27 showed that “this optimism was over- stated,” he added. “If COP28 can’t get us back on track, then the whole process has the capacity to degenerate into just a glori- ed talking stop,” said Durusut.arabianbusiness.com 7 SUSTAINABILIT Y COP28’s emphasis on four cross-cutting themes – Technology and Innovation; Inclusion; Frontline Communities; and Finance confront the urgent challenges of climate change, we are reminded of the collective responsibility we share to safeguard our planet for future gener- ations,” CEO of enviro-tech company Dendra Systems, Dr. Susan Graham, told Arabian Business. “COP28’s emphasis on four cross-cutting themes – Technology and Innovation; Inclusion; Frontline Communities; and Finance – under- scores the comprehensive approach required to tackle the root causes of climate change and manage its far-reaching impacts.” COP28 is a platform to advance an integrated energy vision, to break down barriers so that net zero technology can be scaled rapidly, and to help each country participating to recognise the diverse paths they must take in their net zero transition, according to Luca Corradi, CTO of non-pro t organisa- tion Net Zero Technology Centre. enough to shift towards a net zero-emissions trajectory.” Therefore, rapid scaling of solu- tions through investments and part- nerships will be paramount to address- ing the challenge. The importance of collaboration is a sentiment shared by most experts attending the conference. Rasha Al Madfai, Acting Director of the Environmental Awareness Devlop- ment Department, Environmental Information, Science, and Outreach Management at Abu Dhabi’s Environ- ment Agency (EAD), said that COP28 will foster collaboration, empower youth and accelerate the transition towards a sustainable future. Initiatives like EAD’s sustainability education hubs and youth programmes can amplify voices driving change, which Al Madfai revealed the Agency will be pushing throughout the 13-day climate conference. He emphasised the need to “accel- erate the pace of co-development towards a net zero carbon economy.” “Many of the energy transition technologies needed to limit the global temperature rise already exist. But it is well documented that more e ort is required to rapidly scale up, reduce costs and increase e ciencies as well as accelerate the pace of co-development towards a net zero carbon economy,” he said, adding that even established technologies “are not scaling up and di using fast SUSTAINABILIT Y8 AB Leaders – December 2023 SUSTAINABILIT Y Youth will play an integral part in the world’s climate struggle as they are the guardians of our planet’s future who will monitor progress being made and help ensure goals continue to be approached over the long-run. Early education and a deep understanding of the chal- lenges facing the planet’s future will ensure that they will eventually actualise the UN’s strategic vision for strategic development and guide future environmental stewardship. Time is running out to avoid cata- strophic climate impacts, the experts warned. As Durusut said, “short-term priorities for economies and busi- nesses around the world will only create larger problems in (the much nearer) future.” If leaders continue prioritising short-term gains over urgent emission cuts, even more severe consequences will follow. COP28 also represents a commer- cial opportunity worth trillions. “Achieving global net-zero requires $3-5 trillion investment per annum… for several decades so this is also one of the greatest commercial opportuni- ties of our lifetime,” he added. Progres- sive nations and companies taking bold action now will nd themselves posi- tioned for future growth. Where COP27 fell short COP27 fell short of meeting some of its key commitments, according to several reports. “It lacked the clarity of direction and collaborative commitment from all parties which we now need to see,” said Durusut. Last year’s conference aimed to raise green nance to support coun- tries most vulnerable to climate change, however pledged funds from rich nations have remained unevenly allocated and below the $100 billion by 2020 goal, according to the Brussels International Centre (BIC), a non-pro t climate-focused thinktank. Only $83 billion was provided with just 25 percent was delivered in 2020 with just 25 percent for adaptation. It is within this context that COP27 failed, leaving key commit- This year it is even more important that COP deliver practical action plans to match its ambition and narrative arabianbusiness.com 9 SUSTAINABILIT Y ments from Glasgow’s COP26 unful- lled. A key outcome was setting up frameworks to reform financing systems and ease developing nation access to green funds, recognising only 20 percent of renewable invest- ments currently reach low- and middle-income states. Some propos- als to leverage over $500 billion privately were mentioned. However, the conference did announce the UN Secretary-Gener- al’s $3.1 billion plan to expand early warning systems in developing regions by 2027, a crucial step as 60 percent of Africa currently lacks such adaptation measures. COP27’s biggest win, however, was a breakthrough agreement to provide loss and damage funding for vulnera- ble countries hit hard by natural disas- ters. This was seen as a historic deci- sion because countries recognised the need for nance to respond to such catastrophic e ects of climate change for the very rst time. A UN report released earlier this month found that national climate plans remain insu cient to limit global warming to 1.5°C. While some countries are increasing efforts, much more urgent action is needed this decade to sharply reduce emissions as per the latest science. COP28 is seen as critical for coun- tries to regain momentum on ambi- tious climate action with the conclu- sion of the rst Global Stocktake. This year’s conference aims to take stock of progress made by di erent countries on the landmark 2015 Paris Agreement to identify gaps and nd ways to accelerate action. Expectations for COP28 and a successful outcome After over 15 years working on climate, Durusut remains “optimistic” but knows “pace and scale in our global transition” must increase. “This year it is even more impor- tant that COP deliver practical action plans to match its ambition and narra- tive. Each year the call for action becomes more urgent, and the gap between words and actions grows wider. With the global stocktake of national emissions taking place this year, there is a real sense that we are losing the opportunity for genuine transformation,” he said. The inclusion of oil and gas busi- nesses for the rst time presents an opportunity to “act seriously” on accel- erating the global net zero transition. “The level of ambition and commitment of national oil compa- nies (NOCs) and their nations will a ect the pace of transition.” However, Corradi said that a successful COP28 would involve “active engagement in addressing climate change” through fostering “profound insights and connections for impactful change.” Graham concurred, viewing collab- oration as key to addressing “climate challenges [through] joint endeavours leveraging technology and innovation.” Clear plans, investment schedules, implementation milestones and accountability will determine if COP28 moves from words to impact, accord- ing to experts energised yet wary after past disappointments. The confer- ence’s success may in uence not only our climate future, but the very credi- bility of the UN process itself. Next >