< Previous30 C EO M I D D L E E A S T JA NUA RY 20 19 SHEIKH MOHAMMED BIN FAISAL BIN KHALID AL QASSIMI FOUNDER, MBF GROUP HOLDINGS DIVERSIFIED STARS OF 2018 OR A YOUNG MAN OF 33 YEARS OF AGE, Sheikh Mohammed Bin Faisal Bin Khalid Al Qassimi has amassed an impressive list of achieve- ments, coming a long way from his beginnings as an associate at HSBC private bank in London and Jersey in 2007. Seven years later, in 2014, a sprawling company with strong legal, economic and social ties, which it uses to complete, in Sheikh Mohammed’s words, his vision of “creating high-impact, sustainable and value-driven projects in the pursuit of making a better future.” While MBF has a subsidiaries involved in education, real estate and finance in locations as diverse as Hungary and Egypt, much of his work has taken place in his homeland. Here, his projects and plans include a new hospital concept in Jumeirah Beach Residences – having already co-founded Al Zahra Hospital in 2003 – a school in Nad Al Hammar Gardens, a hospital in Abu Dhabi and a 74,103 sq m shopping mall in Sharjah. The strength of these projects, according to Sheikh Moham- med and MBF, is that they are evergreen – they stay relevant at any point in time. His projects, he says, are in part driv- en by a design to help the UAE accom- plish its long-term visions. “One thing that is certain about to- day’s world is change, and it is important our future growth strategies adapt to the rapid change the world is undergoing every day,” he says. “The projects we have created can help solve the new set of challenges fac- ing the Middle East today.” While Sheikh Mohammed and MBF currently remain focused on the greater Middle East – with projects including the sprawling 600,000 sqm, 400-bed Al Waha Medical City teaching hospital in Madinah and an international finan- cial centre in Istanbul – the group has plans to firmly establish itself among the world’s leading project development companies, and launched its first Euro- pean subsidiary, in Hungary, in 2017. BUSINESS | STARS OF 2018 WE RECOGNISE THE UAE’S FORWARD-THINKING MEN AND WOMEN WHO MADE A DIFFERENCE IN THE EMIRATES THIS YEAR F To find out who else is on the list, log on to www.arabianbusiness.com/lists/stars-of-2018 “MY VISION IS CREATING HIGH-IMPACT, SUSTAINABLE AND VALUE DRIVEN PRO- JECTS IN THE PURSUIT OF MAKING A BETTER FUTURE” Sheikh Mohammed Bin Faisal Al Qassimi has extensive experience in financial markets, investment banking and deep networks across the regionJA NUA RY 20 19 CEO MIDDLE E A ST 31 $164M The paid-up capital of Abu Dhabi-listed healthcare firm Gulf Medical Projects Company 18% Sheikh Mohammed Bin Faisal Bin Khalid Al Qassimi’s ownership of Gulf Medical Projects Company32 C EO M I D D L E E A S T JA NUA RY 20 19 THE LIBRARY BILLIONAIRE BOOKS BLUE OCEAN LEADERSHIP W. Chan Kim and Renee Mauborgne Kim and Mauborgne are the INSEAD professors who came up with ‘blue ocean strategy’, a model for discovering markets that are ripe for growth. Here, they examine how to close the gap between the potential and the realised talent and energy of employees. MANAGING DIFFICULT PEOPLE IN A WEEK: TEACH YOURSELF David Cotton The ability to manage di cult people is crucial to anyone who wants to advance their career. Written by a leadership and management trainer, this book will tell you what you need to know to successfully manage di cult people. REST: WHY YOU GET MORE DONE WHEN YOU WORK LESS Alex Soojung-Kim Pang In this revelatory book, Silicon Valley consultant Alex Soojung-Kim Pang o ers a way for us to be more productive and ful lled in all areas of our lives. Working better does not mean putting in longer hours: it means working less and resting better. TH E MANAGEMENT BOOK Richard Newton This book is structured with the busy manager in mind. You can dip into any section of the book and read it as an individual piece of advice, or read it end- to-end to gain an overall picture of management. MOVE FAST AND BREAK THINGS: HOW FACEBOOK, GOOGLE, AND AMAZON HAVE CORNERED CULTURE AND WHAT IT MEANS FOR ALL OF US Jonathan Taplin A call to arms, to say that enough is enough and to demand that we do everything in our power to create a different future. PRACTICAL ADVICE FROM THE BEST IN THE BUSINESS Don’t judge a book by its cover Six of the finest tomes that captured our attention this month TH E LEADER’S GUIDE TO MANAGING PEOPLE: Mike Brent and Fiona Dent Coaching, motivating, team building and in uencing are all essential for getting the most out of the people around you. Commonly described as ‘so skills’, there’s nothing so about the impact they will have on your business performance. SCENT OF THE MONTH THE PAST PORTENDS THE FUTURE AS WE BEGIN A NEW YEAR, WE REVISIT HOW EIGHT OF THE REGION’S MOST PROMINENT BUSINESS LEADERS IN INDUSTRIES RANGING FROM RETAIL AND HOSPITALITY TO FINANCE AND TECHNOLOGY SAW THE YEAR THAT WAS AND AT WHAT THEY EXPECT FROM 2019 JA N UA RY 2 0 1 9 CEO MIDDLE E A ST 3334 C EO M I D D L E E A S T JA NUA RY 20 19 BUSINESS | TOP INTERVIEWS 2018JA NUA RY 20 19 CEO MIDDLE E A ST 35 The same concept, he enthusiastically points out, can work for a wide variety of brands – such as Carrefour. “Let’s say you’re a vegetarian. Why would we send you a promotion for meat, or some other product that you don’t consume? Or if you’re lactose intolerant, why would we continue to push a dairy product, rather than sending you a soya-based alternative?” Such data-driven knowledge, Bej- jani says, ultimately results in a happy customer who is able to – with a smile on their face – use their time better. A COMPANY TRANSFORMED It goes without saying, but such a dra- matic shift towards the future of re- tail comes with a host of challenges that Majid Al Futtaim has had to ad- dress. A technology-based company, of course, needs tech-savvy employees to all be working in tandem toward the same goal. To that end, in December, Majid Al Futtaim announced plans to enhance its advanced analytics ca- pabilities by recruiting data engineers, scientists and translators who will be embedded with the company’s varied business units. The ultimate goal: turn- ing the vast amounts of collected data into results, in real-time. WAIT FOR IT... So when will the consumer will be- gin experiencing Majid Al Futtaim’s transformation first-hand? Bejjani says it will happen soon – months even. “We don’t actually operate in terms of years, because the world is changing so fast,” he says. S MAJID AL FUTTAIM CEO ALAIN Bejjani tells it, a seemingly- futuristic shopping experi- ence in which data analytics are used to transform the customer “experience” isn’t far off. In fact, as our conversation reveals, it’s just around the corner. Speaking to Arabian Business at his office in Dubai’s Majid Al Futtaim Tow- er, Bejjani says that digitisation – an important part of the company’s ethos – is ultimately aimed at gathering enough data to “create a relationship between the brand and the customer that is be- spoke as possible.” “Data technology allows us to devel- op digital services, as well as the brick- and-mortar customer experience, that is unique and tailored to every custom- er,” he says, adding that he sees Majid Al Futtaim’s mission going forward as “making sure that we continue to push the boundaries of what’s possible and bring to the consumer in this part of the world the best of what’s being offered worldwide.” Bejjani scoffs at the notion of “digital disruption”, saying that the term distorts the possibilities that the 21st century holds for companies will- ing to adapt to changing technologies. “I think the right way to frame it is as ‘digital enablement’. Because of, and thanks to, technology, we are now ca- pable of doing a lot of things that you were never capable of physically do- ing before, simply because of the scale of things,” he says. “Technology today allows us to better understand the cus- tomer, and make sure that what we of- fer to our customers are tailored to each one, individually.” When discussing what technology can bring to the customer, Bejjani also goes to great lengths to avoid using the term “consumer”, which he says runs contrary to the mission at hand for Ma- jid Al Futtaim. “Consumers are fungible. People don’t care who they are. They are numbers. Customers, however, are individuals. A consumer has a number. A customer has a name. A customer is actually the relationship we want to de- velop… People want individuality.” DATA ANALYTICS IN PRACTICE Data analytics, Bejjani is careful to note, has already moved beyond being theoretical and advanced toward being practically actionable. This is a reality, he says, and one that we will soon all be seeing first hand. But how does this work in practice? As a concrete example of the insights that can be gleaned from data, Bejjani points to a Majid Al Futtaim initiative to unveil digital services for VOX Cinemas. “Through our VOX app, you will be able to go and basically perform all the services you can get offline in the cinema. We will be able to know you better as a customer. “For example, if you like a certain type of movie, rather than pushing movies you may not like we will be able to understand you better,” he explains. “If you like popcorn, there is no point pushing a promotion for nachos and cheese on you. We want to be able to give you something you want, and value, rather than something which is kind of a blanket for everyone. We will be able to do that for each and every one of our customers.” A MAJID AL FUTTAIM GROUP CEO ALAIN BEJJANI SAYS DATA ANALYTICS WILL SOON TRANSFORM THE SHOPPING EXPERIENCE BY BERND DEBUSMAN JR 21ST CENTURY RETAIL36 C EO M I D D L E E A S T JA NUA RY 20 19 BUSINESS | TOP INTERVIEWS 2018JA NUA RY 20 19 CEO MIDDLE E A ST 37 that aimed to focus on the company’s core business while offloading nonperforming non-core units and initiate a re-investment in the visibility of the brand, says Massaad. “The plan involved building the product portfolio through technology that would boost brand visibility,” says Massaad, add- ing that it meant long hours because “eve- ryone had to work harder.” “The key was building a good man- agement team for whom time was re- leased by encashing the non-core units to focus on the core business and invest- ing in technology to reduce our expenses by improving our productivity across the board,” he says. By the end of 2016, RAK Ceramics had exited nearly all of its non-performing businesses including its facilities in China and Sudan. In 2017, core-business net profits jumped 73 percent and contribut- ed to a full year profit of AED 315 million. None of that would have been possible if Massaad hadn’t adapted to a chang- ing tide and crafted a plan that while at- tempting to slim the business down, still pursued an active capital investment in technology to reduce production costs and improve efficiency. This allowed it to overcome prevail- ing macroeconomic conditions using in- novative new products in markets where it operates, allowing it to maintain prices while also boosting sales. Additionally, it received a boost from the UAE itself. “We benefit from Jebel Ali, from Dubai Airports, Ras al Khaimah Airports – each part of the country’s infrastructure helps us, and that is why we are a proud UAE company.” ACH DAY, RAK CERAMICS CEO ABDALLAH Massaad begins his day with a swim. For the 46-year old, swimming helps put the world of business in perspective. “It’s a big release for me,” he says. “I always begin and end my day with a swim.” It’s a natural sport for a man who has had to ride two waves of global economic turmoil while leading a giant among gi- ants in the ceramics industry and keep it afloat. After all, ceramics is a different world today than when RAK Ceramics be- gan operations in 1991, he says. For a decade after the company’s in- ception, the red clay laden mountains of Ras Al Khaimah helped propel the com- pany to a position on the world stage in the market for wall and floor tiles. Today, the company also imports white clay from all over the world in a move helping it grow beyond its initial ceramics offering into the UAE’s largest non-oil exporter, and one of the world’s biggest ceram- ics tile manufacturers that also produces products as varied as tableware porcelain to sanitary ware. The company has strate- gic investments across the world where it manufactures products in India, Iran, and Bangladesh and at one point even China and Sudan. In the beginning, he key to success was all about getting off the board faster. “The first ten years were of speedy growth. The next 14 years saw us invest in factories and distribution companies around the world,” he says. Over 70 percent of RAK Ceramics’ to- tal production continues to come from its facilities in Ras Al Khaimah, 65 percent of which account for products marked for exports and to be sold abroad in over 150 countries. Since the turn of the millenni- um, the company’s quest for growth saw it invest in technology, facilities and expertise beyond its core businesses. That invest- ment helped the company grow in stature to a nearly $1 billion business and the most important company in the Northern Emir- ates of the UAE. However, despite its leading mar- ket position, the global downturn in the early part of the decade meant the company had to deal with its fair share of choppy waters. The latest regional economic softening, between 2014 and 2016 was “a really tough period for the company,” says Massaad. “A lot of pro- jects in the region were placed on hold, competition increased while demand shrank, and of course the oil-prices fall- ing meant expenditure on infrastructure also declined.” The turning of global economic for- tunes in the current decade precipitated the need for new thinking re-galvanise the business, says Massaad. CEO at the company since 2008, Massaad had been involved in the ceramics industry for well over two decades. That experience proved invaluable in projecting where the indus- try was headed, and foreseeing that a tur- bid global economy was about to result. He also knew what needed to be done keep its balance during the storm. Months of planning following a 31 per- cent capital injection by Samena Capital in June 2014 turned RAK Ceramics into a company worth nearly $1 billion and jumpstarted a 2014 “value creation plan” E ABDALLAH MASSAAD HAS SEEN HIS COMPANY THROUGH TWO ECONOMIC DOWNTURNS, AND RAK CERAMICS IS STILL GOING STRONG THE MOST RESILIENT NAME IN CERAMICS BY SHAYAN SHAKEEL38 C EO M I D D L E E A S T JA NUA RY 20 19 BUSINESS | TOP INTERVIEWS 2018JA NUA RY 20 19 CEO MIDDLE E A ST 39 tural change, according to Kaushal. “Generally, in the short term, reforms might slow down activity. But if you take the longer term, when you’re a bank such as us that has been around for over 150 years, you’ll see that these reforms are going to make the econo- my more sustainable. A broader rev- enue base, with funding on commercial terms in projects that are viable and participation from both governments and the private sector are all encourag- ing signs for growth. And you have to see, we’re only just beginning to scratch the surface of private sector participa- tion in the economy,” says Kaushal. Still, Kaushal remains modest when discussing the bank’s improved for- tunes, asserting that the bank has done well, instead of tremendously well, and is best poised to do better. “We are see- ing a return of topline growth. But we’re not looking for runaway growth. We have to be realistic,” he says. “Banks are a mirror image of the underlying econo- mies, and the economies are growing just upwards of one percent.” Kaushal’s attitude espouses being reverse averse and eschews brash from brash optimism, but it also belies an enthusiasm for a new digital world and future where inclusiveness isn’t binary that could almost see him being de- scribed as a millennial at heart. That he prefers “experiences over shopping,” parellels how he has trouble hiding his enthusiasm when speaking about Standard Chartered’s first fully digital bank in Cote D’Ivoire in Africa. This low-cost project, he says, will soon help Standard Charter elsewhere. “We will be able to roll out across the Middle East and Africa soon,” he says. “It is a very exciting proposition.” T WAS IN 2015, WHEN BANKS IN THE REGION attempted to weather a slow- down in the global economy that Standard Chartered’s Regional Management Team for Africa and Mid- dle East led by Sunil Kaushal decided “securing the foundations” was the need of the hour. “There were a lot of questions around our capital levels and whether our portfolio was of the right quality and adequately provided. And we needed to address that,” he says. As Standard Chartered consolidated its operations across the world to de- liver a cost efficiency program of USD 2.9bn by 2018, Kaushal was promoted to the top job in the region in July the same year. A thirty-year veteran of the industry, he is now one of the bank’s four global heads, overseeing all of Africa and the Middle East including Pakistan, and responsible for leading a remark- able turnaround in the emerging market lender’s operations in the region. “When we look back over the last couple years, Standard Chartered is a very different bank now in terms of the overall risk profile. The quality of our portfolio, capital levels and liquid- ity are now very strong, and there and there’s a strong foundation in the con- duct, compliance and control culture, where previously these urgent issues were bogging down the bank. It’s a big change,” he says. Standard Chartered’s success story is evident in its figures: The bank posted $3.0bn of profit be- fore tax, a 175 percent increase from 2016 and restored issuing dividends first suspended in 2015 when it posted its first annual loss in a quarter cen- tury. The Africa and Middle East re- gion, of which the UAE is a part, post- ed profits before tax of $642 million, which represent a 49 percent jump from the previous year. Since 2015, the year when Kaushal was appointed, Standard Chartered’s profits in the Africa and Middle East region have grown by over 325 percent. The turnaround is the result of a “laser sharp focus on managing the cost base and making room for invest- ments”. Those investments have dou- bled since 2014, according to Kaushal, and have prepared the bank to benefit from encouraging structural growth trends in the region: a growing young population, and massive infrastruc- ture development. “This is very important,” says Kaushal. “When oil was at $110, there was a lot of liquidity sloshing with local banks which were able to satisfy invest- ment demands in the local economy. But when oil prices crashed, the de- mand for capital continued,” he says. Unable to tap into local banks, that de- mand looked to the debt-capital mar- kets to be satisfied. GCC governments raised $38.9 billion in debt capital in 2016; a figure that was surpassed with $57.4 billion in issuances in just the first half of 2017. “It’s an outrageous amount of money. Instead of having local banks going out into the international markets to raise funds and finance projects, why not have international banks themselves partici- pate locally?” he says. Standard Char- tered relied on that very phenomenon in a development that has “paid off very well, says Kaushal. “Through catering to sovereign funds, Tier 1 banks and larger corporates, our share and profits among all international banks in the region has been one of the highest.” The region is going through a struc- I STANDARD CHARTERED’S REGIONAL CEO SUNIL KAUSHAL HAS TRANSFORMED THE BANK INTO A REGIONAL POWERHOUSE BACK TO FORM BY SHAYAN SHAKEELNext >