< Previous50 C EO M I D D L E E A S T MAY 2 0 1 9 BRINGING POWER TO THE PEOPLE H-ENERGY, THE ENERGY VENTURE OF THE HI- RANANDANI GROUP, WAS ESTABLISHED A DECADE AGO AND IT IS NOW AIMING TO LEVERAGE ITS MIDDLE EAST BASE TO EXPAND ITS PORTFOLIO OF NATURAL GAS FACILITIES AND BRING MUCH-NEEDED SUSTAINABLE ENERGY TO USERS IN INDIA AND BEYOND BUSINESS | H-ENERGY N ATURAL GAS AS A SOURCE OF RELIABLE, clean and affordable energy is crucial for the sustainable development and inclusive growth of any country. India, which surpassed Russia to become the third largest energy consumer in the world after China and the US, relies on LNG imports to fulfil its energy needs. Natural gas accounts for 6.2 percent of India’s energy mix and imported LNG has become an important part of it, accounting for about 50 percent of gas consumption in 2018, up from 22 percent in 2010. Power, fertiliser, city gas distribution (CGD), refineries and petrochemicals are the key gas-consuming sectors in India. Power and fertiliser sectors together account for over 50 percent of the consumption. CGD, refineries and petrochemicals account for about 16 percent, 12 percent and 8 percent, respectively. India endeavors to double its share of natural gas in the energy mix to 15 percent by 2030. With limited domestic production, it will require a significant increase in import of LNG and the construction of more LNG terminals and natural gas pipeline infrastructure. H-ENERGY’S EMERGENCE H-Energy, the energy venture of the Hiranandani Group, was established in 2009 with an objective to build the infrastructure for the energy sector in India. H-Energy is currently developing LNG Re-Gasification terminals and cross-country pipelines on the west and east coast of India. These infrastructure projects will entail investments of up to $2bn. H-Energy has established offices in Mumbai, New Delhi, Kolkata and Mangalore and is working relentlessly towards establishing a dynamic presence across the entire LNG value chain in India, including LNG trading and portfolio optimisation, LNG regasification terminals and natural gas pipelines business. H-Energy is also venturing aggressively into the LNG retailing business, including supply of LNG by trucks and LCNG fuel stations. MIDDLE EAST EXPANSION H-Energy group established H-Energy Mideast DMCC (HEMD), an LNG sourcing and portfolio optimisation company in Dubai in the year 2014. The prime objective of setting up this Powering growth India’ FSRU moored at JaigarhMAY 2 0 1 9 CEO MIDDLE E A ST 51 LNG TERMINAL – KUKRAHATI H-Energy is setting up a land-based LNG terminal on 45 acres of land at Kukrahati in the state of West Bengal in India. The capacity of the terminal is 3 MMTPA and can be expanded to 5 MMTPA in due course. The terminal will have multiple storage tanks with total capacity of 1,80,000 cubic metres (m3). The terminal will have two dedicated LNG jetties for berthing and unloading small LNG vessels. Separate LNG storage will be provided for truck loading. LNG will also be supplied by cryogenic road tankers to the customers not connected by gas pipelines. Natural gas pipelines will connect the LNG terminal to the customers in West Bengal and Western Bangladesh. LNG TERMINAL - KAKINADA H-Energy plans to setup a FSU based project at Kakinada Port in the state of Andhra Pradesh. The FSU shall have 4 MMTPA of storage capacity and land based regasification facilities, regasified LNG shall be supplied through natural gas pipeline to cater the needs of the customers in the region. The project will have LNG reloading capabilities and will serve as an “LNG Hub” which shall supply LNG through small vessels to the Kukrahati terminal and also other small scale terminals in the region. The project shall also have capabilities to supply LNG through trucks to small customers. JAIGARH – MANGALORE NATURAL GAS PIPELINE H-Energy is building a 635km Jaigarh- Mangalore natural gas pipeline project on the West coast of India for which it received authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB). The pipeline will connect to the demand centres in the six coastal towns/cities in the states of Maharashtra and Karnataka. All these towns have also recently been awarded city gas distribution licenses. Hence, the RLNG delivered through this pipeline will act as a key source of clean energy for industries, homes and vehicles. The first phase of this project is expected to be commissioned the first quarter of 2020. KANAI CHATTA – SHRIRAMPUR PIPELINE PROJECT H-Energy is also developing a 250km dedicated natural gas pipeline from Kanai Chatta, in East Medinipur district to Shrirampur, near the Bangladeshi border in the Nadia district of West Bengal. The pipeline will supply natural gas to major power customers in West Bengal and Bangladesh. The targeted date of commissioning of the pipeline is the first quarter of 2021. As H-Energy ramps up its portfolio, its bid to disrupt the LNG sector and bring affordable, clean energy solutions to the masses moves a step closer. company was to source LNG from various sources through flexible and economic contracts and to develop its LNG portfolio. Such a move will mean HEMD will be able to offer tailor-made LNG supply contracts to customers in India as per their varying LNG sourcing requirements. Since its inception, HEMD has been in the process of creating a LNG portfolio consisting of diverse LNG contracts. H-Energy Mideast DMCC has signed LNG sale and purchase contracts with major LNG suppliers including LNG producers, portfolio players and LNG traders, including a mid-term LNG supply contract with Petronas in the year 2018. HEMD’s LNG portfolio will include supplies from Middle East, Malaysia, Australia, US and Africa. The contracts will be mainly linked to Brent, Henry Hub and JKM Index, however HEMD will also look towards the European gas price benchmarks in the near future. HEMD started its physical trading operations this year, with total traded LNG volumes of around 0.3 MMT. HEMD is planning to start handling more LNG volumes and total traded volume is expected to reach 1.5 MMT in 2020, rising to 7 MMT by 2024. LNG TERMINAL – JAIGARH H-Energy is in the advanced stages of commissioning India’s first FSRU (floating storage and re-gasification unit) LNG terminal project at Jaigarh Port, in the Ratnagiri district of Maharashtra state in India. The project is being implemented in two phases. Phase – I consists of a jetty based FSRU of 4.0 MMTPA capacity. In Phase-II, a land- based LNG terminal with an ultimate capacity of 8.0 MMTPA has been planned. The LNG terminal at Jaigarh will connect to the national gas grid at Dabhol through a 60km tie-in pipeline. H-Energy has entered into an agreement with French company Total for chartering its FSRU. Future energy India’s first floating storage and re-gasification unit (FSRU) arriving at Jaigarh Port on May 1, 201852 C EO M I D D L E E A S T MAY 2 0 1 9 uturistic curriculum and training methodology, unique academic programmes, tie- ups with leading international universities, world-class facilities and establishing the first private academic health system in the region have con- solidated the position of Gulf Medical University (GMU), Ajman as the most popular private medical university in the region for state-of-the-art medical education. The university is owned and operated by Thumbay Group, the Dubai-based diversified international conglomerate. Gulf Medical University’s six colleges and 26 accredited programmes The undergraduate programmes include Bachelor of Medicine and F WITH SIX COLLEGES AND 26 ACCREDITED PROGRAMMES, GULF MEDICAL UNIVERSITY – OWNED AND RUN BY THUMBAY GROUP – HAS EMERGED AS THE BIGGEST PRIVATE MEDICAL UNIVERSITY IN THE REGION, DRAWING STUDENTS FROM OVER 80 COUNTRIES AND PARTNERING WITH MORE THAN 60 INTERNATIONAL UNIVERSITIES Bachelor of Surgery, Doctor of Den- tal Medicine, Doctor of Pharmacy, Bachelor of Physiotherapy, Bachelor of Science in Healthcare Management and Economics, Associate Degree in Pre-Clinical Sciences, Bachelor of Biomedical Sciences, Bachelor of Sci- ence – Medical Laboratory Sciences, Bachelor of Science – Medical Imaging Sciences, Bachelor of Science – Anes- thesia Technology and Bachelor of Science in Nursing. Masters programmes include Joint Masters in Health Professions Educa- tion with FAIMER, United States and CenMEDIC, United Kingdom; Master in Public Health in collaboration with The University of Arizona, United States; Executive Master in Healthcare Management and Economics; Master in Clinical Pharmacy with Virginia Commonwealth University, United States & Cleveland Clinic Abu Dhabi; Master of Dental Surgery (Endodon- tics); Master of Dental Surgery (Peri- odontics); Master of Physical Therapy; and Master in Environmental Health & Toxicology. GMU enjoys a robust collaboration with more than 60 prestigious uni- versities around the world such as the University of Arizona, Virginia Com- monwealth University, Medical College of Wisconsin in Milwaukee – USA, German Heidelberg University, Medi- cal University of Lublin, Vita-Salute San Raffaele University – Milan, and Tokyo Medical & Dental University, to name a few. The Gulf Medical University Aca- demic Health System (GMUAHS) – the first such initiative in the region’s private sector – links the healthcare, medical education and research func- tions on its own. GMU is located in Thumbay Medic- ity, a regional hub of futuristic medical education, state-of-the-art healthcare and cutting-edge research. The faculty members are also active medical pro- fessionals and practitioners and some of them, even researchers. GMU uses advanced technology in teaching, such as the Virtual Patient Learning (VPL), a simulation pro- GULF MEDICAL UNIVERSITY: THE MEDICAL UNIVERSITY OF THE FUTURE MAY 2 0 1 9 CEO MIDDLE E A ST 53 the top 50 medical universities in the Middle East, and won gold at the prestigious Sheikh Khalifa Excellence Awards in 2018. GMU also secured top positions in e-learning re gionally and globally at the Wharton QS-Stars Reimagine Education Conference & Awards 2018 in the USA, in addition to obtaining multiple five-star ratings from QS. The university also received the GULF MEDICAL UNIVERSITY Dubai Quality Appreciation Award for the 2017 assessment cycle. GMU has been witnessing an unprecedented demand for admissions, attracting top students from different parts of the world. Admissions for the academic year 2019-20 are now open and the univer- sity has started receiving applications from students desirous of pursuing futuristic medical education. gramme that enables medical stu- dents to diagnose, treat and observe a patient’s progress, based on Artificial Intelligence technology. GMU’s Thum- bay Research Institute for Precision Medicine leads research in the field of cancer biology and immunology, with international collaboration with France, Poland and Korea. GMU has its own network of aca- demic hospitals, clinics, pharmacies, diagnostic labs and other modern facilities, providing ample opportuni- ties for students to undergo clinical training and internship. These are operated by the healthcare division of Thumbay Group at multiple locations in Dubai, Ajman, Sharjah, Fujairah, Ras Al Khaimah and Umm Al Quwain, as well Thumbay Hospi- tal – Hyderabad. GMU graduates are given priority for employment with the various healthcare establishments of Thumbay Group. GMU attracts students from new countries each year, and the university’s student commu- nity is over 2,000-strong today, hailing from more than 80 countries. The well-organised alumni network has professionals pursuing successful medical and healthcare careers around the world. The growing stature of GMU is evident from the regional and inter- national recognitions it continues to receive. This year, GMU has been rec- ognised as the Best Medical Education University in the Middle East Region by Forbes Middle East. GMU has also been ranked among Regional excellence Thumbay Medicity is a hub of medical education, healthcare and research UNIQUE PROGRAMMES IN HEALTHCARE MANAGEMENT, POLICY-MAKING & ECONOMICS GMU’s recently launched College of Healthcare Management and Econom- ics is a unique, specialised college which aims to prepare the graduates to pursue careers in healthcare management, health economics, policy-making and administration in the region and internationally. The first full-fledged college of its kind in the region, it offers bachelor and mas- ter programmes designed to respond to the constantly growing health industry. The Bachelor of Science in Health- care Management and Economics (BSc. HME) is a four-year programme designed to graduate professionals with a deep understanding of the healthcare industry, its language and unique culture. The Executive Master in Healthcare Management and Economics (EMHME) is a 12-month programme designed to benefit middle to senior level profession- als in the healthcare industry. The programmes are offered in col- laboration with leading international uni- versities, the University of Milan, Univer- sity of Arizona, American University of Cairo, University of Central Florida, etc. The college is a member of the European Healthcare Management Association. “The growing stature of GMU is evident from the regional and international recognitions it continues to receive”54 C EO M I D D L E E A S T MAY 2019 SPOTLIGHT CROWD PLEASER FUNDEDBYME MENA CO-FOUNDER, SAMER TOUKAN, EXPLAINS WHY HE BELIEVES THERE’S ROOM FOR ONE MORE ON THE UAE’S CROWDFUNDING SCENE S BY ALICIA BULLER AMER TOUKAN IS THE NEWEST entrant on the United Arab Emirates’ bustling crowdfund- ing block. But he says his new joint venture, FundedByMe MENA, comes with a striking difference – it’s the first equity crowdfunding platform to be regulated by the Dubai Financial Standards Authority (DFSA). The FundedByMe network also has strong global game. Founded in Sweden in 2011, FundedByMe is one of Europe’s largest operational networks, with VCs stretching into Poland, Holland, Finland, Malaysia and Singapore. Prior to launching in the UAE, FundedByMe had over 269,000 registered investors and successfully funded around 500 companies with more than €55 million ($61 million). It was Toukan, who has a family home in Stockholm, who personally convinced FundedByMe to offer a licence for use of its brand and technology to create a Dubai Financial International Centre (DIFC) entity in the UAE. The DIFC office has now been operational since January 2019. Toukan is the co-founder and majority shareholder of FundedByMe MENA, while its parent company holds a 25 percent equity share. Toukan, a former HR director and management consultant, tells Arabian Business: “Sweden is known for having good, clean technology – it’s straight forward and user-friendly and that’s why I was attracted to them. They also have the market leadership in Northern Europe.” The FundedByMe MENA CEO adds: “They are on an expansion wave. So my strategy is to bring the brand to the UAE and then we will roll out to the regions here. Saudi Arabia and Egypt are on our roadmap.” FundedByMe MENA will now have full access to its parent company’s name, campaign management, technology and data protection protocols, says Toukan. But what really sets FundedByMe MENA apart from its local competitors is its robust regulation procedures. “We have developed a 15-step due-diligence process to ensure that quality is maintained throughout the fundraising cycle. “This highly selective process creates confidence and credibility with our investors, in the quality of our campaigns and in the source of involved funds,” says the CEO.MAY 2019 CEO MIDDLE E A ST 55 SPOTLIGHT OPEN FOR BUSINESS With the Dubai office now open for business, FundedByMe MENA is calling for local company owners with ‘valid trade licences, ambitious business plans and clear financial projections’ to join the platform and begin their fundraising campaigns. Investors who are in search of fresh deal flows can also now register to gain access to companies that are seeking funds, based on individual risk and diversification strategies. Depending on the complexity of the application, the on boarding and due- diligence process takes approximately four weeks. Toukan says: “Any company that has a business model of solving some kind of a problem fits with us. We also look for viable income streams.” Toukan says FundedByMe MENA is generally looking at ‘bigger volume’ campaigns, which raise from $150,000 to $5million capital annually. The CEO says: “We are bigger volume and that’s why I have chosen to be regulated. For me, it’s more about long- term preparation now that I have the long-term rights for the MENA region. I would like to keep my hub to under control and under the supervision of the DFSA.” SEED PLANTER Toukan says he decided to set up his crowdfunding venture in 2019 because he sees himself as ‘someone who moves against the traffic’. While the economic climate in the UAE may not be booming currently and is a bit more challenging, he sees now as the perfect time to start planning for the future. “Some people might flee because they see a lack of opportunities but I think it’s the best time to start – costs are lower and the authorities are eager to give you support, so when the economy starts picking up you are ready. This is how I look at things.” The CEO says: “If you look at the SME sector specifically, this is where the growth will happen. The buzz and momentum is there.” Toukan says he expects the recent $3.1 billion buy out deal of local taxi app Careem to give a ‘big boost’ to the region’s fledging SME sector. “Gradually, from an infrastructure and government support perspective, we will see a lot of funds generated over time. Currently, we are seeing billions of dollars being injected into this segment, and this is why we are here. “Our platform just needs to provide alternative solutions for those who are not selected by the very few local venture capitalists and angel investors.” According to Toukan, the local market is very wide and the players are very few. FundedByMe MENA will provide a bridge between smart capital and promising start-ups and SMEs, he says. And while the CEO might spend much of his time at his family home in Stockholm, as a Palestinian- Lebanese by origin, the matter of Arab regeneration and youth engagement is close to his heart. He admits: “We have a bigger agenda than cash transactions. We are trying to build a network of participants to enhance the ecosystem here.” According to the entrepreneur, the regional SME ecosystem has ‘a lot of good intention’ but remains fragmented. He says: “I don’t see that there is a lot of united effort to help SMEs and start-ups in the longer term as all the contributions are very short term.” Toukan says he will be closely studying the Swedish startup model to see how he can transfer knowledge to the UAE ecosystem. “The Swedish start-up support model is fantastic. I want to learn from the Swedish and Scandinavian experience and build something here that’s a little more viable and a little connected. There are a lot of dots and we need to connect them so we can create this ecosystem that everybody is taking about.” “IF YOU LOOK AT THE SME SECTOR SPECIFICALLY, THIS IS WHERE THE GROWTH WILL HAPPEN. THE BUZZ AND MOMENTUM IS THERE”56 C EO M I D D L E E A S T MAY 2019 BRAND VIEW GENERATION NEXT ABDUL MAJID RABBAT, THE CEO OF SARA GROUP, ON PLANNING, OPERATING AND RUNNING A FAMILY BUSINESS as it always your plan to join, and run, the family business? Actually, I wasn’t planning on joining the family business. I was working in a completely different field and was asked to re-join SARA back in 2016 to inject new ideas at a time when it was going through a restructuring. We went through major changes, reinventing our business model and re-branding the Company. My role evolved a lot since then leading to the position that I am in now. With only 21% of family businesses surviv- ing through the third generation, what is SARA Group’s secret to success? SARA Group was established in 1967 by my grandfather in Saudi Arabia; it has been in operation for the last 52 years, which is a rarity for a family business in the region. Our success relies on holding our Company to the highest business and ethical global standards which we ensure by working with independent advisors and committees composed of fantastic global business leaders and academics. We always aimed to build a Company with strong foundations for the long-term – regardless of who was leading it. Also, we have developed an internal cultural based on the strong core values of our founder. Over 52 years, these values seeped into every aspect of the operations and it is part of our daily work to ensure that these values are maintained. What is SARA Group’s expansion plans in the Middle East? – Broader digital presence for a seamless and meaningful cross-channel shopping experience. – Expand the retail footprint for our new concept store ‘Roomours’ which offers modern home accessories and products. – New and upgraded in-store experiences in all our current retail outlets. understand that their greatest achievement is to build people, not edifices.” My aim is to develop and build my team and let them grow and thrive within SARA. More broadly, I aim to ensure that SARA is always developing great leaders and launching great ideas – whether I am present or not – and that is the culture we always intended to have in the company. What is the best advice you’ve received from your father? Question everything, even what is working, because you don’t know what you don’t know. It is a simple statement but in fact very few apply it. Sakichi Toyoda developed a technique used in Toyota called the “5 Whys”. The technique helps determine the root cause of a problem by repeating ‘Why’ 5 times. This is similar but, in our case at SARA, we apply it to problem solving and to understand why things work. This ensures that we know how to repeat a successful formula and always look for opportunities to improve. What advice would you give to your younger self? I was lucky to be able to take risks early on in my career. I worked at the World Bank, then started a company in China, went to Harvard Business School and finally worked in venture capital. Through this all I turned down several job opportunities in more standard careers, and I always worried that I was making the wrong choices by not following a more “standard” career path. So, my advice to my younger self would be, not to worry, every experience taught me something valuable about life, business, and about myself. W Abdul Majid Rabbat – Continuous pursuit of exciting opportunities and new concepts, whether franchised from around the world or internally developed. What are the three most important elements a business needs in order to make it in the retail world? I would not presume to speak as if there was a magic formula for success in retail. However, I can speak to some of the elements which have led to our success in this field: 1) An outstanding customer experience, measured by the total sum of interactions a customer has with a brand or a business such as: convenient locations and accessibility, store layout and merchandising, excellent service offered by the sales team, customization of the products, solutions or the shopping experiences, marketing touchpoints, and so on. 2) An outstanding product offering and a unique value proposition, by being up to date with the latest trends and provide the latest innovations that can successfully solve clients’ problems, satisfy their needs, and make them come back for more. In our case, as a retailer in luxury products, we do not compromise on quality or design either. 3) A strong and strategic alignment with the other functions of the company such as procurement, logistics, warehousing, IT, human resources, marketing, finance and controls, and all the other departments that actually form the backbone of any retail space. What is your leadership style? Are you a delegator or a hands-on leader? There is a quote by HH Sheikh Mohammed Bin Rashid, that I repeat on several occasions, which says: “The making of leaders is a secret granted only to those who have overcome their own ego and who MAY 2019 CEO MIDDLE E A ST 57 HIGH-END LUGGAGE MAKER OPENS DUBAI STORE JUST IN TIME FOR SUMMER TRAVEL SEASON RIMOWA’S NEW RETAIL SPACE MARKS SECOND LOCATION IN THE UAE LREADY DREAMING ABOUT YOUR SUMMER GETAWAY? THEN NOW IS THE TIME TO MAKE SURE YOUR LUGGAGE IS IN TOP SHAPE AND ON POINT. If you’re looking to give your travel style an overhaul, global pre- mium luggage leader Rimowa just opened its new store at Dubai Mall’s Fashion Avenue. Founded in 1898, the German-designed and engineered brand is now part of French multinational luxury goods conglomerate LVMH Group. Inspired by the pioneering era of aircraft construction, in 1937 Rimowa introduced lightweight aluminium into the manufacture of its suitcases revolutionising the industry and creating the now iconic design with parallel grooves. In 2000, the company created the first polycarbonate case on the market. The luggage manufacturer combines heritage and crafts- manship with the rigours of modern technology. A LEISURE TRAVEL Trendy traveller The new 142 sq m luxury luggage store will be located on the prominent Fashion Avenue in Dubai Mall58 C EO M I D D L E E A S T M AY 2 0 1 9 BECAUSE CLOTHES MAKETH THE MAN (AND WOMAN) style Functionality, freedom of movement and comfort without any compromise on style is what Corneliani’s Spring Summer 2019 line is all about. REINTERPRETATION OF A WARDROBE The luxury Italian menswear brand’s lightweight constructions and comfortable silhouettes are not only perfect for the summer months, but are very versatile, taking you from day to night, and work to play. Best known for their suits, sport coats and made-to-measure, pieces are crafted from upscale materials yet still reflect a sporty and casual soul. The collection features sartorial appeal meets informal comfort in a reinterpretation of a wardrobe that comprises garments like light linen and silk trousers in beige hues that are ideal to wear on the hottest M AY 2 0 1 9 CEO MIDDLE E A ST 59 MAN style A NEW YOU “I’ve always believed one could live many lives through the way we dress. This collection reflects many of my inspirations and offers different ways of self-expression. The world is open to us, and each day is an occasion to reinvent ourselves.” Ralph Lauren days. Short-sleeved slim fit polos are crafted in Italy in pure cotton through an innovative texture process that gives the fiber superb coolness and crease resistance. Meanwhile, combining virgin wool with the noble fibers of linen and silk, the season’s cerulean blue suit is designed to show off a single-breasted silhou- ette with refined details that are the signature expression of a Made in Italy sartorial appeal. Unlined constructions and the slim fit feature ensure comfort and freedom of movements as required by the contemporary wardrobe. Work to play Corneliani’ unlined Prince-of- Wales suit in cerulean blue is designed to work both during a business meeting or at a special occasion.Next >