< Previous10 C EO M I D D L E E A S T M AY 2020 BUSINESS DUBAI, UNITED ARAB EMIRATES NEWS INNOVATION MANAGEMENT LEADERSHIP T HE CURRENT PANDEMIC HAS STRUCK WITH unprecedented scale, impacting businesses across the globe as well as creating market panic in every region in the world. But while the outbreak has been a disaster for the global economy, bear markets and recessions are nothing new and that there are bright spots to be found even in sectors facing a sharp slowdown, according to Skycap Investment Management Limited, a Dubai-based global financial services firm. Skycap, touted as a one-stop shop for global investors, has revealed its market predictions following the broadening fears amid the worldwide coronavirus outbreak. Saikat Kumar, founder and CEO of Skycap Investment Management Ltd, says: “This extraordinarily challenging crisis happening across the globe has obviously brought tangible economic consequences, even causing the biggest worldwide INVESTING WHEN MARKETS STUMBLE CAN REAP DIVIDENDS SKYCAP CEO SAIKAT KUMAR REVEALS BULLISH PREDICTIONS AMID INCREASING PANDEMIC UNCERTAINTIES stock market losses in decades. Although markets have entered a period of extreme volatility, we think that now is exactly the right time to think about investing. This year’s biggest stock market crash is an opportune time to start building position in good quality blue chip stocks with strong fundamentals.”M AY 2020 C EO M I D D L E E A S T 11 to-through declines in multiple broad market indexes looks to be short-term, so we think we are nowhere near normal from economy’s and market’s perspective,” Kumar comments. Citing that a number of factors still linger – including the continued rise in infected cases and worsening economic pains stemming from lockdown and job losses – the market remains in an uncomfortable structure. Kumar underscores that this is the time to be greedy about valuations. “A whole host of bargain-priced stocks are available. The aim is to buy now and hold for the long term,” he says. Compared to a cautious tone when talking about his short-term view, Kumar expresses confidence the markets will bottom out in eight months and that a strong recovery is in the offing. His mid-term indicators for economic turnaround include government stimulus efforts that help induce liquidity in the market, easing economic jitters as the spread of infections is gradually contained, among others, which collectively augur well for excellent buying opportunities. Capping his predictions, Kumar’s long-term outlook reveals huge upside potential with multiple times returns for new investors. “I believe this crash offers new investors with huge buying opportunities to invest in blue chip stocks and assets at much cheaper levels. The bright side to this pandemic is that investors can expect exceptional returns comparable to post-2008 recession recovery levels. Historically, it will be reasonable to expect that the market will recover well, even possibly exceeding its previous high-water mark,” Kumar believes. “THE BRIGHT SIDE TO THIS PANDEMIC IS THAT INVESTORS CAN EXPECT EXCEPTIONAL RETURNS COMPARABLE TO POST-2008 RECESSION RECOVERY LEVELS” Expressing cautious optimism, Kumar also says that while the exact impact of the pandemic is still unknown, history can tell us that more robust gains could play over the long term. His comments came as he shared his assessment on the future outlook of the markets. “The small rallies that followed peak-12 C EO M I D D L E E A S T M AY 2020 UNITY IS ESSENTIAL IF THE GLOBAL COMMUNITY IS TO CONTINUE ENSURING SUPPLIES OF FOOD DURING THE CURRENT CORONAVIRUS CRISIS, ACCORDING TO MARIAM BINT MOHAMMED ALMHEIRI, UAE MINISTER OF STATE FOR FOOD SECURITY. Almheiri was speaking at a virtual meeting of agriculture and food ministers of the Group of 20 major economies. She stressed that despite imposed travel restrictions and social distancing measures creating challenges for cooperation, it was imperative that countries worked together and followed the recommendations of international organisations. “The international food supply, which is too often taken for granted, is witnessing serious disruptions caused by various precautionary measures that threaten food production and food supply. These measures are also negatively impacting the lives of the people involved in the food and agriculture industry, so it is vital we work together in an active and committed way,” she said. She also warned about unscrupulous actors taking advantage of the crisis by raising prices of essential foodstuffs. “It is our duty to work closely and cooperate with all actors that facilitate the export of food and agriculture products. It is also incumbent upon us to follow the recommendations of specialised international bodies, including the Food and Agriculture Organisation of the United Nations and the World Trade Organisation as much as possible, who recommend avoiding restricting food exports as this could intensify the risk of food insecurity,” she said. NEWS UAE NATIONS URGED TO WORK TOGETHER DURING COVID-19 FOOD SECURITY INVOLVES EVERYONE Start-up helping SMEs through economic headwind The SME Rise Collective may only be in its infancy, but the start-up has already covered two agency salaries for three months and is supporting two SMEs with marketing for the next three months. Created in response to the Covid-19 pandemic and its effect on small businesses, The SME Rise Collective was developed to support the economy, and ensure that as many SMEs as possible, and their staff survive this time, by sponsoring marketing and PR packages for those SMEs that need it most. Support can be given for as little as AED100. Since its launch last month, The SME Rise Collective has received more than 20 sponsorships against marketing packages, more than 150 applications from SMEs that need help and requests from 18 marketing agencies and licensed freelancers who wish to join and support. Beneficiaries include Eco Souk Middle East, a mum-owned concept store bringing the best eco-functional family brands and TKD Lingerie, the lingerie, swimwear, nightwear and loungewear specialists with stores in Dubai and Abu Dhabi. To apply or support the SME Rise Collective visit www.smerisecollective. com and @smerisecollective RISING TO THE VERY TOP Mariam Bint Mohammed Almheiri, UAE Minister of State for Food SecurityM AY 2020 C EO M I D D L E E A S T 13 ONE OF THE WORLD’S LEADING NUMISMATOLOGY EXPERTS HAS URGED INVESTORS TO CONSIDER GOLD COINS AS AN ALTERNATIVE ASSET IN THE CURRENT ECONOMICALLY VOLATILE CLIMATE. Traders are encountering severe shortages of gold bars and coins, as the coronavirus pandemic disrupts supply and drives demand. Investors across Europe and the US have been buying up gold bars and coins in an effort to protect their money from the collapse in global financial markets. Meanwhile, Europe’s biggest gold refineries are struggling to keep up production because of the region’s widening shutdown. The price of gold hit a seven-year high recently, increasing by about 9 percent to roughly $1,620 / £1,364 a troy ounce, as the deepening economic impact of the coronavirus outbreak sent panicked investors scurrying for safe-haven assets. Dr Alain Baron, founder of Swiss coin trading company Numismatica Genevensis SA, said: “In times of uncertainty, the value of tangible assets increases substantially, as opposed to the virtual economy. The investor who holds gold in its physical form will always have a liquid asset at his sole discretion, whatever crisis the world might be experiencing.” Baron is the curator of the critically-acclaimed exhibition ‘Coins of Islam: History Revealed’ at Abu Dhabi’s Sheikh Zayed Grand Mosque, which showcases one of the world’s most significant collections of Arab and Islamic coinage ever assembled. According to Baron, gold bars and gold coins are the ultimate solution for physical gold investments. However, unlike gold bars and modern coins, historical gold coins are no longer struck today, are fewer in circulation, and thus represent the best investment opportunity of all. Moreover, the latter can be a unique and invaluable source that reveals fascinating information about people, places and events that might otherwise be lost to history. “Owning a piece of history and protecting wealth at the same time is both fun and lifesaving,” Baron said. GOLDEN OPPORTUNITY NEWS UAE WHY GOLD COINS SHOULD BE CONSIDERED IN THE CURRENT ECONOMIC CRISIS SUSTAINABLE SEMINARS HEALTHY BODY, HEALTHY MIND The Sustainable City is hosting weekly webinars to discuss sustainable medicine and Covid-19 during the current pandemic. The live interactive Q&A sessions take place every Wednesday in collaboration with The Chiron Clinic. They are aimed at educating people and teaching them how to take care of themselves in a sustainable manner. Fitness First has launched a series of online meditation classes for everyone across the Middle East to simultaneously focus on their mental and emotional wellbeing. The meditation sessions will be uploaded at 9pm (GST) every Tuesday on the Fitness First Middle East YouTube, Instagram and Facebook pages, and will encourage friends and families to join the class concurrently, within their respective homes. Dr Alain Baron, founder of Swiss coin trading company Numismatica Genevensis SA14 C EO M I D D L E E A S T M AY 2020 NEWS UAE BANK ON DIGITAL TRANSFORMATION FOR RECOVERY TECHNOLOGY AND DATA KEY TO DRIVE BUSINESS GROWTH POST-COVID-19 Facilities opened at Zayed Port and Khalifa Port Abu Dhabi Ports has constructed Covid-19 testing facilities at both Zayed Port and Khalifa Port. The facilities are available to employees, contractors and subcontractors active in the ports, the new facilities, which were constructed in record-time within one day, can process up to 700 tests daily. Housing the latest in medical diagnostic equipment for detecting Covid-19, the 150 sq m facilities are fully staffed by qualified medical personnel who can conduct the tests in a matter of minutes with results returning within 24 hours. Abu Dhabi Ports aims to conduct 6,000 tests in the upcoming days. Captain Hazzaa Al Junaibi, corporate security manager, Abu Dhabi Ports, said: “Hundreds of thousands of port personnel, ship crews, and offshore workers across the world are running critical maritime operations, day and night, to ensure that the global supply chain continues to move critical cargo to where it is most needed. “As part of our fight against Covid-19, it is imperative we redouble our efforts to protect the health of these invaluable individuals, so they can continue to support our vital economic and trade lifelines and help mitigate the overall impact of the coronavirus pandemic.” COVID-19 TESTING AT ABU DHABI PORTS FINANCIAL INSTITUTIONS THAT LEVERAGE TECHNOLOGY AND DATA TO DELIVER FULLY INTEGRATED SERVICES MAY BE IN A BETTER POSITION TO DRIVE BUSINESS GROWTH AND OVERCOME DISRUPTION CAUSED BY THE GLOBAL CPVOD-19 PANDEMIC, ACCORDING TO KPMG’S FIFTH ANNUAL UAE BANKING PERSPECTIVES REPORT. The publication found that rapidly evolving customer expectations and increasing regulatory scrutiny are put- ting pressure on UAE banks to mod- ernise every facet of their operations. The report also revealed a healthy trend of increasing banking profitability over the past three years, with total growth of 13.9 percent in net profit among the top ten UAE banks in FY2019. Looking ahead, the report states that UAE banks will have to closely examine their business continuity plans (BCP), in light of the current Covid-19 threat. The Central Bank of the UAE (CBUAE) has been proactive in rolling out stimulus packages and has announced a comprehensive AED256bn ($69.7bn) ‘Targeted Economic Support Scheme’ to contain the repercussions of the pandemic. “The CBUAE has been very supportive of the financial services sector in light of the disruption caused by the pandemic,” said Abbas Basrai, partner and head of financial services, KPMG Lower Gulf. “But the banking sector may have to rely on a combination of external sup- port and internal resilience-building to emerge unscathed. Digital transfor- mation and regulatory compliance are likely to play a pivotal role in enabling banks to navigate the challenges that lie ahead.”M AY 2020 C EO M I D D L E E A S T 15 RETAILERS IN THE UAE WANT MORE HELP FROM THE GOVERNMENT TO SURVIVE THE CURRENT CORONAVIRUS PANDEMIC AND COME OUT OF THE OTHER SIDE STRONGER. A survey report from Buz Management & Marketing Consulting (MCC) – UAE Retail Response on Covid-19 – revealed almost a quarter (24 percent) are in favour of tax waivers and 22 percent would like to see discounted licensing fees. While some retail landlords have proactively offered rent freeze for a set period; according to the survey of 150 top retailers, 37 percent are expecting this support from other retail landlords across different emirates, where their retail stores are present. Some 75 percent of businesses have already reported a major negative impact as a result of the current coronavirus pandemic, from which, 12 percent said they don’t see a recovery any time soon. The survey revealed that the businesses reporting a high impact from the measures included clothing and specialty, jewellery outlets, shopping malls, furniture stores, health and wellness and entertainment. Baiju Kurieash, managing director, Buz MMC, said: “Opening up the economy with an emphasis on ‘safety’ is a must, and our retail partners are investing all their efforts to adhere to the best practices, as the industry will grow out of this pandemic in the times to come.” According to the survey, a large majority of respondents are expecting their business forecast to take a 75 percent hit as a result of the global coronavirus pandemic. RETAILERS CALL FOR MORE SUPPORT SURVEY REVEALS INDUSTRY CONCERNS AS COVID-19 IMPACT BITES NEWS UAE TIFFANY LAUNCHES SWEET INITIATIVE AI PLATFORM AIDING EMPLOYMENT Tiffany Biscuits has partnered with the UAE Food Bank and CSR UAE to distribute 500,000 Tiffany Glucose Biscuits to needy people around in the country. The initiative will take place over a course of eight weeks and is aimed at families and those who are taking part in the National Sterilisation Programme to combat the spread of coronavirus. Artificial intelligence-driven recruitment platform, FifthEdge, has launched its Coronavirus Recovery Initiative (CRI) to aid employers and employees in the construction and engineering sectors impacted by the Covid-19 pandemic. FifthEdge’s cloud-based platform, which commenced operations in 2020, has attracted in excess of 35,000 candidates, both active and passive, looking to connect with companies for their next roles.16 C EO M I D D L E E A S T M AY 2020 BUSINESS | DIFC COURTS HE CURRENT CORONAVIRUS PANDEMIC has propelled the world into a new, digitally reliant era as people move en masse towards remote working and distance learning. As a part of the UAE government’s commitment to effectively employ technology to continue services to the public, entities have implemented various digital mediums to stay connected with clients and customers. The ultimate goal is to ensure that the government and business stakeholders are all working towards strengthening the economy. At the DIFC Courts we have been very fortunate to be able to continue all core services during this period of physical closure through our comprehensive and advanced digital platforms. By increasing utilisation of our existing videoconferencing and teleconferencing facilities for applications and hearings, we are enabling court users and the public to access extensive eServices remotely from any smartphone, tablet or desktop devices. Technology has been central to the DIFC Courts’ operating model since starting operations over a decade ago and we have been leading the way when it comes to innovation, which has enabled us to transition mindsets from ‘courts- as-a-place’ to courts-as-a service’. For us, this service excellence comes hand-in- hand with innovation. Among the many technologies the courts have pioneered to increase access to justice, is the state-of-the-art e-filing system, as well as the region’s first ‘paperless’ e-bundling solution in 2018. In an era of significant disruption, we have invested massively in emerging technologies to stay ahead of the curve. Instant access to information has perhaps had the biggest influence on the way we run our operations, particularly vital within the legal sector, where hordes of data needs to be easily available. With all this technological implementation, we haven’t stopped there. But where next? What should we as courts be focussing on for the future? We continue to look forward, seeking out new technology to further increase access to our services for the public. Expectations from the private sector increasingly require the bold engagement of public service. The DIFC Courts’ ambition, through continued outreach to global judicial systems, is to contribute in creating a level-playing field between businesses, by re-engineering the way commercial justice is designed and delivered. The future of commercial courts may be one of supporting supply chains operating virtually, with dispute resolution encoded into the blockchain, with virtual currency and with the most likely dispute being one of coding. Those supply chains will develop and advance to the point that T RE-ENGINEERING ACCESS TO JUSTICE AS A PART OF THE UAE GOVERNMENT’S COMMITMENT TO EMPLOYING ADVANCED TECHNOLOGIES, VARIOUS ENTITIES HAVE INTRODUCED DIGITAL PLATFORMS TO STAY CONNECTED DURING THE COVID-19 LOCKDOWN PERIOD BY REEM AL SHIHHE BUSINESS | DIFC COURTSM AY 2020 C EO M I D D L E E A S T 17 verification of court judgments for cross- border enforcement. The partnership is the first step in creating a blockchain-powered future for the judiciary which will have far- reaching benefits, including streamlining the judicial process, removing document duplications, and driving greater efficiencies across the entire legal ecosystem. We also pushed the boundaries again in 2019, establishing the world’s first Court Tech Lab in partnership with DFF. In exploring how judicial systems can be strengthened through technology, the Court Tech Lab will unite individuals and companies helping to prototype and launch the advancement of legal technology, such as Blockchain-powered initiatives, AI-enabled programmes and cloud-based solutions. Perhaps because of their relative youth, judiciaries in this region have proven themselves to be early adopters of the latest technology. The UAE, and in particular Dubai, with its Smart Dubai initiative to become the technologically smartest city in the world, is fast becoming a global leader in the adoption of new technologies to meet the demands of business. This new era of legal technological disruption, working to replace outdated processes with digital technology is the key to creating real legal efficiency and certainty for businesses, even during these uncertain times. Aligning with the UAE Vision 2021 and the Dubai Smart Government initiative that work towards developing a knowledge-based economy through the adoption of technology in all services, we continue to drive the economy and work towards the government’s initiatives despite challenges that come our way. Being a world class commercial court is not an end in itself. For the DIFC Courts, that means helping to make the UAE one of the best places in the world to live and work. The transformation in commercial dispute resolution in the Arab world over the last decade has been nothing short of remarkable. But I also believe we are just at the beginning of the story. smart contracts will replace traditional contracts, and we’ll see them become universal even for small- and medium- sized enterprises (SMEs) operating on a public blockchain. The Courts of the Future was launched by the DIFC Courts and the Dubai Future Foundation (DFF) in 2017 with a mandate to explore diverse legal tech. topic areas and to provide research and thought leadership on promoting and encouraging contemporary methods of greater accessibility and efficiency to court users across the globe. REEM AL SHIHHE, Chief Operating Officer, DIFC Courts This think tank has enabled the DIFC Courts to streamline its major legal tech. projects under the Court of the Future, pooling talent and resources from global partners and experts across the fields of law, technology, IT and business, assembled to help legal systems accommodate the accelerating growth of technology. In 2018, launched as an initiative under the Courts of the Future, the DIFC Courts partnered with Smart Dubai to create the world’s first Court of the Blockchain. Building on existing dispute resolution services, the alliance is exploring how to aid 18 C EO M I D D L E E A S T M AY 2020 BUSINESS | DIAMONDS N THE FACE OF RAPIDLY ADVANCING technologies, organisations have to changes the way they operate and adopt more creative ways of doing business. In the face of rapidly advancing technologies, organisations have had to make substantial changes to the way they operate, adopting more creative ways of doing business. While this means investing in technologies, processes, and infrastructure, ultimately the digital transformation process is driven by people. In this regard, there are three key people- centric areas that organisations need to build on: leadership mindset, workforce skills, and external partnerships. The first step in embracing digital evolution is the notion of ‘leadership in the digital age’. What are some leadership characteristics that thrive in that transformation? While you don’t have to be a technical expert, features that stand out include being visionary (but practical), agile, and engaged. The digital transformation process is complex. While having a long-term vision to transform the organisation is crucial, leaders need to think in practical terms. This involves setting clear and concise short-term goals. Not only will this structure the transformation process, but it will also create momentum so teams can be motivated and energised to carry the vision through. Agility and versatility are also fundamental. Cultivating a culture of experimentation, identifying what works, learning from mistakes, and then redirecting resources into things that are working well, are all key to survival. Lastly, modern effective leadership is centered I THE PEOPLE THE PEOPLE SIDE OF SIDE OF DIGITALDIGITAL TRANSFORMATIONTRANSFORMATION TRANSFORMATION IS DRIVEN BY PEOPLE, WRITES DANA SALBAK, DIRECTOR, HEAD OF RESEARCH MENA AT JLL. BUSINESS | JLLM AY 2020 C EO M I D D L E E A S T 19 on listening and communicating. Realising that innovation can be born anywhere in the organisation, leaders that engage and encourage unique perspectives are better placed to drive teams and the organisation through digital transformation. Beyond leadership, the second human element to digital transformation is the talent already within the organisation. This involves understanding the skill sets present (and those absent), and what learning opportunities need to be made available to develop and empower employees. To master this change, it is essential to think of this as a lifelong learning process. Organisations need to invest in their workforce to make the necessary skills a reality and make sure they are guided to the right kinds of training programmes. Ultimately this means changing the culture and skills so it becomes more of a human transformation as much as it is a digital transformation. To complement the ongoing conversation and collaboration between senior leadership and employees, engaging with external stakeholders is important. This means creating partnerships with other businesses, service providers, and even onboarding new talent where necessary. Other considerations: data and security Decision-making in the digital era is largely data-driven. There is an abundance of information available across business lines. However, most organisations don’t have the know-how or skills needed to analyse and draw insights from that data. This is a big area that organisations need to focus on when developing a vision, building workforce skillsets, and establishing partnerships. Naturally, this raises the question of data governance: the accessibility, usability, integrity, and security of data. This calls for digital transformation plans to incorporate security transformation goals and objectives as well. As we move towards a more data- driven digital world, organisations have to innovate and reimagine their strategic goals. Breaking through silos to engage employees in this process and identifying external stakeholders to support this is an integral part of the evolution. Dana Salbak, Director, Head of Research MENA at JLL.Next >