< Previous10 C EO M I D D L E E A S T M AY 2 0 1 9 CHICAGO-BASED MULTINATIONAL HOSPITALITY COMPANY Hyatt said it expects to double its num- ber of hotels in Saudi Arabia in the next four years. The New York-listed hotel operator said it will add five additional Hyatt- branded hotels by 2023, adding approxi- mately 1,300 rooms to Saudi Arabia. The expansion includes the opening of Grand Hyatt Al Khobar, marking the first Grand Hyatt branded hotel in the kingdom, which is set to open in late 2019. The opening of Jabal Omar – due to open in 2023 – will mark the entry of the Hyatt Centric brand into the country. Additionally, Hyatt Regency Jeddah Serafi Mall is slated for a 2021 opening and a dual-branded Hyatt Place and Hyatt House Riyadh/KAFD is slated for 2022. “Saudi Arabia continues to make significant strides in boosting tourism and infrastructure in a bid to diversify the economy,” said Ludwig Bouldoukian, regional vice president of development, Middle East and North Africa for Hyatt. “The ambitious expansion of Hyatt brands cement Hyatt’s brand presence, both amongst Gulf residents and the increasing number of international trav- ellers visiting Saudi Arabia.” Hyatt’s current portfolio includes Park Hyatt Jeddah, Jabal Omar Hyatt Regency Makkah, Hyatt Regency Riyadh Olaya, Hyatt Place Riyadh Al Sulaimania and Hyatt House Jeddah Sari Street. HYATT TO DOUBLE HOTELS IN KSA BY 2023 NEWS SAUDI ARABIA FIVE NEW HYATT HOTELS TO OPEN IN NEXT FOUR YEARS, INCLUDING THE FIRST GRAND HYATT BRANDED HOTEL IN THE KINGDOM BUSINESS & INDUSTRY Saudis issue 70% more foreign business licences from year ago The number of new licences approved for foreign businesses in Saudi Arabia rose by 70 percent in the first quarter from a year earlier, according to the Saudi Arabia General Investment Authority (SAGIA). Applications from British and Chi- nese companies drove the increase, rising by 86 percent and 71 percent, respectively, Ibrahim Al Omar, governor of SAGIA said. The fastest-growing industries were education – which the kingdom only opened to foreign investors in Novem- ber – and information and communica- tions technology, Al Omar said. The year-on-year growth in foreign licences follows Saudi efforts to remove restrictions on international invest- ments. Yet, fresh foreign direct invest- ment in the country has been modest. While FDI more than doubled last year to about $3bn, it remains well below the average level of the past decade, as uncertainty over the government’s economic plans, its human-rights record and the declared crackdown on corruption in 2017 have weighed on investor sentiment. FDI figures for the first quarter aren’t yet available, though Sagia is “con- tinuing to see strong momentum from foreign investors,” Al Omar said. “We’ve seen a good increase in the number of companies looking to operate in Saudi Arabia, and in the number of industries that they are looking to invest in.” KSA seeks foreign investment to help diversify the economy away from oil. SAGIA is working with the World Bank to improve its ranking on the ease-of- doing-business index, where it currently ranks 92nd among 190 countries.MAY 2019 CEO MIDDLE E A ST 11 SPOTLIGHT CLIMBING THE LADDER OF SUCCESS JYOTI KESHAVAN, FOUNDER OF XANARA INVESTMENT MANAGEMENT, SHARES HER FUTURE PLANS ow do you describe yourself ? I am a no-nonsense person, a thorough optimist, an adaptive leader looking for extraordinary challenges [and] a people’s person with an appetite to learn from others and from experiences. Being an opportunist and a self-motivated achiever, I have always aspired to become a successful entrepreneur. What do you count as your greatest achievement in life so far? First would be becoming a mother of two teen girls. The sheer experience of watching them evolve teaches you responsibility, compassion and commitment. This has helped me realize that these attributes are also so important to run a company and manage your team. For me managing my teens and managing my team feels almost similar. And second would be about becoming a successful entrepreneur. Having worked for 18 odd years in the wealth industry globally, the ability to self start and create a private wealth enterprise, create job opportunities and compete in the industry as an employer – for me this is like rediscovering myself. Your attitude towards failure? Bring it on, the more the merrier! I have learned from mistakes and always used it to my advantage. While malfunctions happen, one needs to build the courage to hear the reasons for dismissal. Failures have also taught me to envisage what could be brewing in the horizon, enabling me to take conscious and timely decisions. and self-confidence. I learnt at every corner of this episode. All those I trusted either vanished or pretended [to be] ignorant. Giving them the benefit of doubt has helped me in being forgiving and forgetting the inadvertent situational behaviours of people. Overlooking past incidences and letting go, steers one to look beyond. I also learnt, it is the circumstance that shapes the personality of a person. What is the single largest problem facing your industry today? Trust is the vertebrae in my industry. This trust has a reliance on the person and the institution. Here, we are dealing with the private money of an individual or families – wealth that has been accumulated over generations or first lineage. The ability to understand this paradigm rationale is essential to build that trust. Unfortunately, what has transpired in most recent years is the high rate of attrition of wealth managers, product pushing and inherent pricing war. What’s the biggest challenge women in tech jobs face even today? If I have to be industry agnostic: gender equality, empowerment and meritorious recognition, these would be the three biggest challenges faced by woman. I have personally managed to overcome the latter two by becoming an entrepreneur. (On) The issue of gender equality, it is a constant battle to prove oneself. Interestingly, when I look back now, this challenge has probably made me the successful person I am today! H Industry veteran Keshavan has almost two decades of solid experience in wealth management The worst day of your career and the lesson you learned from it: When my work ethic and integrity was unfairly questioned during one of my previous employment. The event was a big jolt. I knew that I was not on the wrong side, but had to deal with the baseless accusations against me. I progressed with my instinct and challenged the accusation as it was important for my own self-esteem “FAILURES HAVE ALSO TAUGHT ME TO ENVISAGE WHAT COULD BE BREWING IN THE HORIZON, ENABLING ME TO TAKE CONSCIOUS AND TIMELY DECISIONS”12 C EO M I D D L E E A S T M AY 2 0 1 9 NEWS BAHRAIN GULF AIR IS IN TALKS WITH ABU DHABI’S ETIHAD AIRWAYS to deepen an existing codeshare agree- ment, the Bahrain carrier’s chief com- mercial officer said, as the airline seeks to expand its network and become the region’s boutique airline. “The scope of a partnership with Etihad can include domains in which we might find strengths,” Vincent Coste said on the sidelines of the Arabian Travel Market in Dubai. The partnership might expand to include maintenance and cargo handling, but is currently focused on the code- share, he said. That agreement began March 20, according to Etihad’s state- ment at the time. Gulf Air is in also talks with airlines in the US and India to forge codeshare partnerships. The state-owned carrier, which flies five Boeing 787 jets equipped with Rolls- Royce engines, isn’t facing issues with the Trent 1000 engine, Coste said, after Rolls recommended extra checks for excessive wear. Gulf Air plans to continue flying the Boeing 787 and will get 10 more jets by 2020, he said. Gulf Air is set to receive 29 Airbus 320 and 321 variants by 2020. The Bahrain carrier denied that it’s undergoing a restructuring and said there are no plans to reduce headcount. It recorded 78 percent load factor in the first quarter and it increased to 85 percent in April. Bahrain also attracted a number of new airlines to operate out of Bahrain International Airport. GULF AIR IN TALKS WITH ETIHAD TO DEEPEN PARTNERSHIP ABU DHABI CARRIER’S PARTNERSHIP WITH GULF AIR MIGHT EXPAND TO INCLUDE MAINTENANCE AND CARGO HANDLING HOSPITALITY Bahrain’s hotels face challenging future as supply surges, rates drop Bahrain’s hospitality sector is facing a challenging future as a 25 percent surge in supply of hotel rooms over the next three years is set to put increased pres- sure on already decreasing occupancy rates and revenue levels, according to a new industry report. “The short to medium term outlook for the market remains subdued as a result of additional supply scheduled to enter the market and the implemen- tation of VAT which is likely to create further pressure on KPIs,” real estate consultancy firm Knight Frank said in a report released this week. The island state currently has around 13,000 rooms (including 11,000 hotel rooms and 2,000 serviced apart- ments), with an additional 3,300 rooms set to come on stream by the end of 2022, representing a 25 percent increase in supply over the next three years, Knight Frank said. Four- and five-star hotels represent 40 percent and 39 percent of the cur- rent market and much of the new sup- ply will target the top end of the market. The increased supply comes at a time when the hospitality sector is already under pressure. “Over recent years we have seen average occupancy decline from 56 percent in 2014 to 52 percent in 2018. Over the same period, ADR (average daily rates) and RevPAR (revenue per available room) decreased by 23 per- cent and 28 percent respectively,” the Knight Frank report said. A research report released by global real estate consultancy firm CBRE said Bahrain’s hospitality sector continues to be a key driver of the kingdom’s recent economic growth with over 12 million people visiting the country each year.MAY 2 0 1 9 CEO MIDDLE E A ST 13 OMAN AVIATION GROUP IS SEEKING about $6bn to fund the building of new airports and an expansion of the loss- making national airline. The state-owned holding company plans to raise the funds through a sale of assets or by taking on more debt, CEO Mustafa Al Hinai said. The firm is in talks with international banks for a multi-tranche loan starting June 2020, he said, while a privatisation plan is likely to take as many as three years to put together. Oman’s finances have been battered by a slump in oil prices, pushing the gov- ernment to look for alterna- tive sources of revenue. Investment in the aviation industry would help the gov- ernment develop tourism as a greater contributor to the economy, but credit rating agencies say much is yet to be done. Oman Air, which receives state support to fund loss- making internal routes, is expected to make a profit in 2026, said Al Hinai. OMAN SEEKS UP TO $6BN FOR AIRLINE, AIRPORTS EXPANSION OMAN AVIATION GROUP IS AIMING TO RAISE FUNDS FOR THE EXPANSION OF OMAN AIR AND AIRPORTS IN THE COUNTRY NEWS OMAN14 C EO M I D D L E E A S T MAY 2 0 1 9 BIG PICTURE A HANDLER WAITS TO RACE PRIOR TO THE START OF THE AL MARMOOM HERITAGE FESTIVAL AT THE AL MARMOOM CAMEL RACETRACK ON APRIL 09, 2019 IN DUBAI. The festival promotes the traditional sport of camel racing within the region. PHOTO: FRANCOIS NEL/GETTY IMAGESSUNDAY 16TH JUNE 2019 LE ROYAL MERIDIEN BEACH RESORT & SPA REAL ESTATE AWARDS 2019 #ArabianBusinessAwards The Arabian Business Real Estate Awards recognise and reward the UAE’s biggest real estate players. SPONSORSHIPATTENDANCE Mario Saaiby HE AD OF SALES - A G ENCIES Tel: +971 4 444 3592 GSM: +971 52 895 6957 Email: mario.saaiby@itp.com Dima Mousseli SENIOR SALES MANA GER Tel: +971 4 444 3589 GSM: +971 52 895 1018 Email: dima.mousseli@itp.com Joe Chidiac GROUP COMMERCIAL DIRE CT OR Tel: +971 4 444 3121 GSM: +971 58 286 4578 Email: joe.chidiac@itp.com Brian McNamara MAR K ET I N G & EVE N TS MANA GE R Tel: +971 4 444 3846 Email: brian.mcnamara@itp.com FOR MORE INFORMATION ON THE ARABIAN BUSINESS REAL ESTATE AWARDS CONTACT ONE OF OUR TEAM:16 C EO M I D D L E E A S T M AY 2 0 1 9 TALK HOW DO YOU DESCRIBE YOURSELF? I am energetic, curious about new cultures and passionate about talent development. I am approachable, an active listener and enjoy mentoring and coaching teams. WHAT DO YOU ENJOY MOST ABOUT WORKING AT YOUR COMPANY? I enjoy it when people approach me to join Ecolab, having heard of our compelling purpose to make the world cleaner, safer and healthier. Every day, we work to provide clean water, safe food, healthy environments and abundant energy at customer locations throughout the region and the world. WHAT IS THE SINGLE LARGEST PROBLEM FACING YOUR INDUSTRY TODAY? With an increasing population, pressure on natural resources such as water and our energy resources will dramatically increase. Industries will need to produce more, using fewer resources. The challenge is to help them achieve their business goals while protecting our vital resources. WHAT DO YOU CONSIDER YOUR GREATEST ACHIEVEMENT? My family, first and foremost. My wife and I have worked as one team to support our two daughters through the challenges of moving abroad and seeing them become independent, socially intelligent and confident young women. On a professional level, one noteworthy achievement for me was to work with a team of policymakers and business leaders in Europe to get water recognised as a key part of the circular economy, underlined by the fact that water is no longer considered a commodity. After continuous efforts that lasted for two years, I believe the pending water scarcity challenges the world will face now resonates with business leaders and policymakers alike. Our efforts have resulted in policies being rewritten and increased awareness of the value of water for various businesses and societies. THE WORST DAY OF YOUR CAREER: In the early days of my career, I’ve sadly lost some colleagues due to safety-related accidents. At Ecolab we invest significant time and money in our strong safety culture. FIVE MINUTE INTERVIEW Q+A ARJAN BOOGAARDS, SENIOR VICE PRESIDENT AND PRESIDENT, MIDDLE EAST AND AFRICA OF ECOLAB We want to make sure our people are safe at work and return home to their families every day. We never compromise on safety. DESCRIBE YOUR DECISION-MAKING PROCESS. I take a fact-based but empathetic approach to decision making. I like to engage colleagues in discussion, listen to different points of views and question opinions where needed to help get a holistic picture. I also believe having clarity on accountability helps lead to sound decisions. WHAT’S YOUR PRODUCTIVITY SECRET? I’m an early bird and usually get to the office before my colleagues. This gives me the headspace to plan my day, catch up on the news, but more importantly, bond and connect with my colleagues over a cup of coffee. I like to walk around the office and have informal chats with my colleagues to listen to their thoughts, ideas and feedback – and see if there are any bottlenecks that I can help fix. WHAT DO YOU COUNT AS ATTRIBUTES OF SUCCESSFUL PEOPLE? Humility, courage and simplicity. A QUOTE YOU LIVE BY: “Authenticity is the alignment of head, mouth, heart and feet – thinking, saying, feeling and doing the same thing – consistently. This builds trust, and followers love leaders they can trust.” – Lance Secretan. MAY 2019 CEO MIDDLE E A ST 17 BRAND VIEW PUTTING LOMBARD ODIER ON THE MAP THE SWISS PRIVATE BANK HAS BEEN ALL OVER MIDDLE EASTERN BUSINESS NEWS RECENTLY. WE CAUGHT UP WITH LOMBARD ODIER LIMITED PARTNER ARNAUD LECLERQ, TO DISCUSS THE STRATEGY BEHIND THE HEADLINES as Lombard Odier stepped up its growth in the Middle East? Well, we’ve been serving clients there for half a century, and we’re committed to building a strong regional presence, with the Gulf Cooperation Council (GCC) our priority market. Our Dubai office opened in 2006, but really, we’re just at the start of our growth plans. When I took over the Middle East business ten years ago, I saw a lot of potential, and our team has been working hard to realise that. Our Dubai office has doubled in size and has won top industry awards in each of the last seven years. We’ve got critical mass in the region now, and we’re starting to leverage that; I think the next five years will be key. And of course, we opened our Abu Dhabi branch this year, as the natural progression of our commitment to clients there. In fact, we were the first Swiss private bank to open in the prestigious Abu Dhabi Global Market financial centre. Why Abu Dhabi – what was the attraction there? The Emirates’ future as a key business location and global wealth generator are not in doubt. We have seen volatile but sustained growth in the region, and have continuously invested the resources to manage it. The culture and values of its capital Abu Dhabi are a good fit for us: international influences together with pride in local heritage. We find it tends to attract families and those with a commitment to sustainability, which also speaks to our expertise. Opening a branch there brings us closer to our clients What can you offer clients there that other banks can’t? We know there are a large number of banks in the region, so a differentiated offering is essential. We offer truly global expertise via local solutions. Our decentralised portfolio teams have an in-depth knowledge of local securities and we offer both international investment solutions, and solutions in line with the principles of Islamic finance. Our Shariah discretionary mandate is fully customisable – that’s a major differentiator from competitors. We recruit senior people, people who know how to serve leading business people, entrepreneurs and their families. And we cover the market in a truly integrated way – that’s not something I’ve seen elsewhere. We have a single team across Dubai, Abu Dhabi, Geneva, Zurich and London, and I’m very proud to lead that team towards new challenges today. H (Left to right) Arnaud Leclercq, Limited Partner and Head of New Markets at Lombard Odier; Maya Tissafi, Swiss Ambassador to the UAE; Patrick Odier, Senior Managing Partner; Mohamed Al Qubaisi, Vice Chairman of ADGM; Christophe Lalandre, Senior Executive Officer of Lombard Odier’s Abu Dhabi branch; and Stephane Monier, Chief Investment Officer Lombard Odier is the first Swiss bank to open in Abu Dhabi and allows us to offer them onshore wealth services. And Abu Dhabi is a major financial centre that we know well. Our private bank CIO previously worked for the Abu Dhabi Investment Authority, and our Abu Dhabi managing director has lived and worked there for almost a decade, so we have strong ties with local families and institutions.18 C EO M I D D L E E A S T MAY 2 0 1 9 ‘WHAT’S WRONG WITH US?’ BILLIONAIRE BUSINESSMAN CHALLENGES REGION’S YOUTH TO OUST DEPENDENCE ON INTERNATIONAL DOMINANTS OHAMED ALABBAR, CHAIRMAN OF EMAAR PROPERTIES AND FOUNDER OF RETAIL platform noon.com, is urging the region’s future business leaders to seize the opportunity to build Middle Eastern brands for the digital economy instead of depending on a handful of global giants. “Don’t depend on an old man like me to go start a noon.com, please,” he said in a passionate keynote at the an- nual entrepreneurship summit organ- ised by TiE Dubai, the local chapter of The Indus Entrepreneurs founded in Silicon Valley. “I was 59 when I started it [noon],” he added, joking that at his age it’s a challenge just to move from an iPhone to a Samsung. He called the e-com- merce venture his “biggest risk”. He explained: “In digital and e- commerce, if you don’t have the muscle, you die and you die quickly. That’s why globally, if you look at e-commerce, how many companies in this giant country called India? Two. How many in America? One. If you don’t have the muscle, technology, financial power, and the best people you can get, then you can’t make it. So for me to be able to even be brave enough after making billions in my real estate business... really if you think [about] it, it’s the biggest risk in my life that I’ve taken.” But Alabbar said his motivation M BUSINESS | MOHAMED ALABBAR BY MEGHA MERANI The young demographic is the fuel of the region’s future, Alabbar believesMAY 2 0 1 9 CEO MIDDLE E A ST 19 we honestly control our destiny in this giant field? Isn’t it amazing why the world is ruled by only three or four brands? “What are we doing in this region? What are we doing in India? What are we building? Shame on us. I mean why is everything coming out of California? Why?” And isn’t it time the Middle East, with among the highest penetration of smartphones in the world, built its own mobile phone brand, Alabbar questioned. “Why don’t we build a phone for God’s sake? It’d be nice to rollout a Middle Eastern brand.” Recalling his journey building Emaar Properties, the biggest real estate developer in the UAE, Alabbar advised aspiring business leaders simply to work hard and with soldier- like discipline. “People creating companies: if you do not work day and night, and skip sleep sometimes, you will never make it,” he said. “If you think you will depend on luck and delegating, you will never make it. It’s like going to battle. Some- times I tell people skip sleep. Sleep when you’re 50. Don’t sleep now.” The great news, Alabbar said, is the region’s demographic advantage with amongst the highest percentage of young people. According to figures from the International Monetary Fund (IMF), the Middle East and North Africa has the world’s second-youngest population after Sub-Saharan Africa. “And that is really the fuel of our future,” he said. “I really think that with the youth in the region and with the opportunities we have, we can create so many dus, Emaars, noons – so much more can be done. It’s totally up to us. I really believe that it’s our duty to act.” to compete, rather than concede to international players, is the significant opportunity and potential the region’s population of more than 300 million Arabs represent. The digital economy is “a fact of life”, Alabbar insisted. “We know the growth. The writing is on the wall. There’s a group that will be facing chal- lenges and there’s a group that will take over. I cannot accept that our region is taken over. I will not accept it.” A recent report by global manage- ment consultancy firm Bain & Company said that the e-commerce market in the Middle East and North Africa region is expected to reach $28.5bn by 2022. In September last year, the noon founder called for new legislation that imposes 51 percent local ownership of e-commerce-related businesses, ranging from payment service firms to logistics companies, in order to protect the national economy from global gi- ants such as Amazon. In 2017, Amazon announced the acquisition of the leading MENA e- commerce company Souq for $580m. Alabbar said that foreign companies pose a danger to the UAE’s national economy, referring to the likes of Ama- zon as a “threat” to the local market. “What’s wrong with us?” the Emi- rati billionaire asked. “We have the capital. Why can’t “WHAT ARE WE DOING IN THIS REGION? WHAT ARE WE DOING IN INDIA? WHAT ARE WE BUILDING? SHAME ON US. I MEAN WHY IS EVERYTHING COMING OUT OF CALIFORNIA? WHY?” Noon.com has grown rapidly and gained many significant achievementsNext >