< Previous20 C EO M I D D L E E A S T JUNE 202 1 COVER STORY Another trend he’s keen to highlight is ‘copy trading’ – as the name suggests, this involves tracking and imitating the trades and deals being carried out by a particular investor or account. “Some real, experienced traders will take this as a full-time job and provide all the trades to those who wish to imple- ment copy trading. This technology has become widely used and in the coming five years, we are expecting a huge devel- opment in it, allowing traders to explore many options in the future this definitely will revolutionise the trading space.” Al Ajmi hopes to soon allow VI Mar- kets users to link their accounts with oth- ers for automatic copying, in addition to tech tools that analyse a client’s position through a report that focusses on their successful strategies. “This analysis will give the client an idea on how to manage their portfolio and, specifically, how to minimise risk.” VI Markets will also look at fund- ing “well-deserved” portfolios revealed through these reports, he adds. The new normal of work As someone who thrives on face-to-face meetings, Al Ajmi admits that last year’s transition to working from home was initially challenging. However, he credits a structured plan for helping maintain VI Markets’ success through the lockdowns of 2020. Like many others, he believes the pan- demic has made permanent changes to es- tablished structures of work and business life. “Many businesses will no longer be fit in the coming years, because the whole world has shifted to the online arena, from retail shops to huge multi-billion compa- nies. In my opinion, it is vital to build a strong internet base that allow employees and their managers to communicate and get their work done without going back to the office or to paper work.” Points of passion As both a business leader and a worker, Insight. Al Ajmi believes the pandemic has forced permanent changes to structures of work and business life. “I ADMIRE PEOPLE WITH DIFFERENT WAY OF THINKING, KNOWING THAT THEY WILL DO THE RIGHT THING AT THE RIGHT TIME.” JUNE 202 1 CEO MIDDLE E A ST 21 COVER STORY Al Ajmi firmly believes in passion as a crucial ingredient in the recipe of success. “I do love what I am doing so I don’t call it a job.” It’s little surprise, then, that passion is perhaps the single-most important trait he looks for in potential new hires. “A passionate employee will do the job differently and creatively, which in turn produces a different outcome. I also tend to admire people with different way of thinking, knowing that they will do the right thing at the right time.” After kicking off his day with a steaming cup of espresso and picking his watch for the day – “My watch selection is always the best part of my day, as it gives me joy and positive energy” – Al Ajmi is happy to work from 10am to 10pm, with coffee breaks, lunch meetings, football and PlayStation offering brief moments of respite. A keen Manchester United sup- porter, he will always make time for his beloved Red Devils. Beyond the team itself, he respects the broader themes of unity, loyalty and pride that football can promote – and it’s something he looks for in his own team. Al Ajmi’s other great love is watches, something to he traces back to when his father gave him his first as a birthday present. “Since then, I had a magical connection with the mechanism of watch- es and my passion grew over the years, especially because I love seizing time to the fullest. “I cannot specify a favourite piece, but I can definitely tell you that Vacheron Constantin is one of my favourite watch- makers – it produces wonderful unique classical pieces along with sporty ones that complement my personality.” Future plans. Al Ajmi hopes to soon allow VI Markets users to link their accounts with others for automatic copying. TALAL AL AJMI’S TIPS FOR ENTREPRENEURS The decision I took to become an entrepreneur was very difficult and with that came along so many obstacles. I have faced both health and social difficulties, trying to be prove that I was capable of handling my own business. So I do advice those who are looking to become entre- preneurs three golden rules: • Choose your team carefully, because you will need a supportive and trustworthy one. • Work harder than you did in your normal desk job, you will need double the effort and time to succeed. • Learn and educate yourself before entering any new endeavour.22 C EO M I D D L E E A S T JUNE 202 1 CAPITALISING ON SAUDI ARABIA’S DIGITAL FUTURE THE COVID-19 PANDEMIC BROUGHT A HOST OF BUSINESS CHALLENGES, BUT WITH IT CAME EXTRAORDINARY OPPORTUNITIES. IT IS AN EXCITING TIME TO BE PART OF SAUDI ARABIA’S PRIVATE SECTOR AS VISION 2030 CREATES FERTILE GROUND FOR LOCAL AND INTERNATIONAL BUSINESSES, WRITES MOHAMMED IBRAHIM ABUNAYYAN One of the youngest CEOs of a listed company in Saudi Arabia, Abunayyan is at the helm of Al Hassan Ghazi Ibrahim Shaker Company (Shaker) and a board member of Abunayyan Holding since 2018. Prior to his current role, he served as Chief Strategy & Transformation Officer at Shaker, leading the company’s breakthrough programme and return to profitable performance for the first time since 2016. SAUDI VOICESJUNE 202 1 CEO MIDDLE E A ST 23 SAUDI VOICES24 C EO M I D D L E E A S T JUNE 202 1 audi Arabia’s economic road- map prioritises private sector growth, with a range of initia- tives to the tune of $61bn, and packages to support SMEs and local content and production. Government support during the pandemic has been instrumental in helping the private sector mitigate the negative impact of a global crisis, creat- ing headroom for greater economic di- versity and a wider set of opportunities for trade, collaboration and investment. This environment is accommodating to our ambitions, and we are pleased to be contributing to the kingdom’s growing competitiveness, having developed and concluded a breakthrough programme that has restored our business’ profit- ability and strengthened our market leadership in ACs and home appliances. Our breakthrough programme The word ‘transformation’ is routinely misused. Few companies have delivered a sustainable, at-scale business trans- formation, one that involves an intense, company-wide programme with the aim of long-term organisational health and performance enhancement. I have been fortunate to participate in a transfor- mation of this kind, and I can comfort- ably say that as we roll-out our post- turnaround strategy, the programme in which we engaged has genuinely changed the company’s human capital, corporate culture, business model and financial performance. Embarking on Shaker’s trans- formation has been one of the most important milestones of my career. The transformation is personal, and it has required immense effort and energy from all who have been involved. The breakthrough programme’s impact isn’t owed to short-term results; it is dependent on the ability of myself and my colleagues to ensure long-term and sustainable profitability. Having launched the programme in 2018, and latterly supported by an agile response to the Covid-19 pandemic, the group returned to profitability for the as we sought fresh opportunities in the market, and new segments to enter. With that journey well underway, we are already realising the rewards, bring- ing on-board blue-chip brands such as Panasonic – our first foray into the TV category. We have secured a strong share of the government’s energy efficiency and retrofit projects, participated in mega projects such as NEOM and Red Sea and boosted our exposure to Saudi housing projects. We are very pleased with the impact this growth has had on both the top- and bottom- line and will continue to grow our participation in strategic pro- jects and partnerships to ensure we build on this momentum. S A transformation story. Saudi Arabia’s Shaker underwent a true transformation, says its CEO. SAUDI VOICES first time since 2016. Driven by four pillars for improving performance – core business turna- round, a talent upgrade plan, perfor- mance infrastructure and strategic moves, we placed heavy emphasis on cost optimisation and operational efficiency, as well as on enhancing man- agement capabilities, rethinking our organisational model and diversifying revenue streams. A key pillar of the programme was our strategic moves, which strength- ened our relationships with principals and business partners, and explored opportunities beyond core operations. This was, in essence, about creating greater diversity in our revenue model JUNE 202 1 CEO MIDDLE E A ST 25 SAUDI VOICES Sustainability In an effort to deliver more competi- tive future returns, we have integrated sustainability into our transforma- tion, with a particular focus on mar- ket leadership for manufacturing and distributing energy-efficient products. We intend to continue building our sustainability credentials, particularly as improving environmental practices are firmly part of the national agenda. Data shows that companies with sound ESG principles deliver superior long-term results, and this will remain an area of focus for the company. It is our opinion that sustainability brings differentia- tion combined with deeper emotional bonds with stakeholders as businesses build stronger loyalty and resonate more powerfully with customers. At Shaker, we have long been com- mitted to developing sustainable prod- ucts and are proud to be fully accredited by SEEC. I am personally committed to supporting the environmental goals of Vision 2030 and I am proud to highlight that our most energy-efficient products in the AC market are those that are contributing most powerfully to top-line growth and market share. Demand ex- ists, and our mission is to meet it. Digital transformation Penetration of online retail is on a steep growth trajectory in the kingdom and a key component of our future transfor- mation is to capitalise on Saudi Arabia’s digital revolution. We understand the role that digitisation plays in the king- dom’s changing economic landscape and have put in place a number of initiatives to boost e-commerce sales and raise the profile of the group across the kingdom. This includes improving our sales infra- structure by strengthening our position in the e-commerce and distribution space. In 2019, we launched the Shaker online retail platform to increase prod- uct exposure for our B2C customers as part of our strategy to grow sales and profitability. While in the short-term I expect Shaker’s main growth drivers will be our strategic B2B customers, projects and retrofitting initiatives, I also believe that e-commerce sales will accelerate our growth, and in the long-term, become a critical part of our business. Future growth With the breakthrough programme having proved instrumental in achiev- ing profitability, my goal is to focus on sustainable growth for Shaker in the years to come. We want to strengthen our portfolio of international brands for household appliances, while building on our market leadership in ACs. It is my personal priority to sustain the momentum of the breakthrough programme. With an improved operat- ing structure now in place, a pool of talented and driven staff, and a lean business model, our transformation has cemented Shaker’s position as a market leader in ACs and home appliances. We will continue to focus on growing mar- ket share, expanding to new segments to meet consumer needs and defend- ing our position in segments where we are the supplier of choice. These goals will be supported by a roadmap for continuing to improve our product mix, increasing efficiencies and digitalising our business. The future holds a great deal for us to aim for. “A KEY COMPONENT OF OUR FUTURE TRANSFORMATION IS TO CAPITALISE ON SAUDI ARABIA’S DIGITAL REVOLUTION” “IN AN EFFORT TO DELIVER MORE COMPETITIVE FUTURE RETURNS, WE HAVE INTEGRATED SUSTAINABILITY INTO OUR TRANSFORMATION” Manufacturing the future. Sustainability is a key pillar driving growth at Shaker.26 C EO M I D D L E E A S T JUNE 202 1 TIME | ROLEX lobal venture investments reached $125bn in the first quarter of 2021. This is a 50 percent increase quarter on quarter and a huge 94 percent increase year on year. Whilst this is great news for start-up entrepreneurs and shows a positive deal flow for investors, both in the MENA region and worldwide, the statistics also show another notable shift. In 2019, 2.8 percent of funding went to women-led start-ups; in 2020, that fell to 2.3 percent, Crunchbase figures show – and worth noting is the fact that the 2.8 percent figure was an all time high. What’s more remarkable is the benefits to investors that funding women-owned enterprise brings. We know that investing in women brings a higher return, and a better performance. In a data driven industry, the value for investors cannot be ignored. At Mindshift Capital, we trail blaze by investing in ex- citing women-led early-stage technology companies in the Middle East, US and beyond – and with the results that we are seeing for both our investors, and port- folio companies, we are proving that our vision for both is the right one in terms of returns and growth potential. The Boston Consultancy Group’s 2018 study found on average women raised less than half as much money as their male counterparts, yet they earned $0.78 per dollar invested, compared with $0.31 for the men. Women are one of the fastest growing segments of entrepreneurship worldwide. In the MENA region, we believe that women own 40-50 percent of businesses – in the US the figure is around 40 percent and in Europe 30 percent. Why then, do we only see that paltry 2.3 percent of funds being invested in them? While this is a problem, we also see it as an opportunity – The “arbitrage opportunity” is clear to us in that we constantly see female founders out- performing their counterparts, based on the statistics of underrepresented A RECORD YEAR FOR VC FUNDING – BUT NOT FOR EVERYONE Heather Henyon, founding general partner of global venture fund Mindshift Capital, outlines the benefi ts of investing in early stage women-led companies G THE GUIDEJUNE 202 1 CEO MIDDLE E A ST 27 THE GUIDE founders looking for funding. Given the typical lower valuation pricing and terms, investors can make an outsized return. Our first fund audit conducted by Frank, Rimerman & Co, LLP validated our thesis – our cumulative IRR through December 31, 2020 was reported to be 47 percent. The gender-lens investment Gender-lens investing is a practice of in- vesting with the intent to address gender issues or promote gender equity. With the amount of female founders out there, the lack of funding certainly isn’t down to a lack of opportunity. Our team at Mind- shift Capital has been investing in early stage women-led companies for the last eight years, and we understand the mar- ket opportunity as well as how to work with female founders. I founded the first women’s angel group in the MENA region in 2013, the Women’s Angel Investor Network (WAIN). Our inaugural fund at Mindshift, launched in 2019, is currently invested in nine portfolio companies in five countries, and all with female found- ers/cofounders. We have an amazing global network that enables a constant deal flow, due to the unique nature of our fund. We are screening over 1,000 women-led companies a year, attracted to us as we invest exclusively in women- led early stage technology companies. Given what we know about the out- performance of female leaders, coupled with the higher IRR for investors, it’s im- portant that we see more women-led VC funds, alongside a rise in opportunities. Many gender-lens funds are new, and the founders of such are emerging leaders. As an entrepreneur myself, after starting my career on Wall Street, my shift into angel investing, prior to founding Mindshift alongside a global group of female part- ners means that we have a strong appeal to companies looking to work with a fund that understands both their needs and of course, the potential in their enterprises. There are many data points that vali- date the financial opportunity of invest- ing in women. Women “ultimately deliver higher revenue– more than twice as much per dollar invested,” a Boston Consulting Group study reported. Silicon Valley fund First Round Capital found that “com- panies with a female founder performed 63 percent better than their investments with all-male founding teams” And whilst our fund is not yet closed, it has been great to see the resilience shown by all of our companies in the face of the pandem- ic year. We have seen opportunities to pivot, growth in new markets (specifically KSA) and a positive outlook on the rest of 2021, with the tailwinds that these new opportunities have brought the compa- nies. The future is bright. At Mindshift, our portfolio focusses on edtech, healthtech and foodtech. Historically, we have seen that traditional VC funds have been less likely to invest in certain areas of healthtech, for example, simply due to a lack of understanding of the issues, and the importance of the solutions. Ironic, when the addressable market size is as large as 3.5 billion peo- ple on the planet. Currently, our portfolio companies are working on prenatal testing solutions to avoid potential pre- term births at NX Prenatal, diagnosis of middle-ear infections that negate the use of antibiotics with OtoNexus Technolo- gies, easy urinalysis for general wellness and health at Vivoo, alongside leisure and education opportunities for families with Qidz and Little Thinking Minds. Diversity benefits everyone At Mindshift, we invest in founders with a vision for impact and making things better. We have seen a monumental shift this year in general consumer behaviour and routine. A focus on balance and wellbeing is being seen across the board, and in itself is not a gender issue. Human centered business models are growing and the opportunities for both founders and investors in this space is vast. When women do better, the world does better and we are finding that more companies are starting up with a view to societal impact. Research shows that a positive relationship between a VC and their portfolio companies results in higher success rates for all involved. Some may prefer a ‘hands off’ approach, but we find that this type of involvement is key to the objectives of all parties. The VC world needs to move on from any legacy thinking around funding female-founded companies, and rec- ognise the wider benefits alongside the obvious IRR. There is certainly no short- age of potential amongst the thousands of companies we screen at Mindshift, and certainly not in the MENA, where we see a wealth of female graduates in STEM and Computer Sciences as an example, particularly in Lebanon and Jordan. *Heather Henyon is the founding general partner of Mindshift Capital, a global venture fund that invests exclusively in early stage women-led technology companies “HUMAN CENTERED BUSINESS MODELS ARE GROWING AND THE OPPORTUNITIES FOR BOTH FOUNDERS AND INVESTORS IN THIS SPACE IS VAST” “WHEN WOMEN DO BETTER, THE WORLD DOES BETTER”LEADERSHIP: A CLOSER LOOK By SAMUEL WILSON, Research Fellow, JOHN FIEN, Professor and Executive Director, Swinburne University of Technology and GAVIN GIBBON, Arabian Business Despite our familiarity with – and craving for – leadership, its precise meaning is often elusive, but all businesses must do more to tackle poor leadership, especially in the face of different types of crisis. 28 C EO M I D D L E E A S T JUNE 202 1 LEADERSHIPJUNE 202 1 CEO MIDDLE E A ST 29 here are many formal defini- tions of leadership and count- less opinions, and we are loath to add another to the collection. It is salutary, however, to be reminded of what leadership is so that we may better find our bearings in these volatile, un- certain times. Types of problems: critical, tame and wicked Whenever we turn the door handle each morning and walk out into the world, we encounter problems. These can be defined as discrepancies between how the world is and as we believe it ought to be or ideally should be. As a moment’s reflection confirms, problems are not all the same. Some pertain to our personal relationships. Others concern shared problems, such as those that afflict our organisations and communities. However, despite obvious differ- ences between problems, problems of- ten share common characteristics that hang together in meaningful patterns. For example, some problems may seem definable and solvable but others in- tractable, resisting definition and so- lution. Forty years ago, Horst Rittel and Melvin Webber recognised and catego- rised these patterns in their seminal paper on tame and wicked problems. This was expanded more recently by Keith Grint into a typology of critical, tame and wicked problems. Critical problems and command Critical problems are those that arise from a crisis of some sort (for example, a surge in Covid-19 cases). These prob- lems are self-evident and must be ad- dressed urgently, allowing little time for decision-making. T LEADERSHIP “WHENEVER WE TURN THE DOOR HANDLE EACH MORNING AND WALK OUT INTO THE WORLD, WE ENCOUNTER PROBLEMS. THESE CAN BE DEFINED AS DISCREPANCIES BETWEEN HOW THE WORLD IS AND AS WE BELIEVE IT OUGHT TO BE OR IDEALLY SHOULD BE.”Next >