JULY 2021 # 171 THE GUIDE TO GOOD BUSINESS AND BETTER LIVING AREEJ MOHSIN HAIDER DARWISH, CHAIRPERSON, MHD ACERE “I LOOK AT SUSTAINABILITY AS A MINDSET THAT PRIORITISES PEOPLE, PLANET AND PROFIT EQUALLY” UA E AED 20 KSA SAR 20 BA HR A IN BHD 2 KUWA IT KWD 2 OM AN OMR 2 In line with HM King Salman bin Abdulaziz Al Saud and HRH Prince Mohammad bin Salman’s 2030 Vision for the Kingdom of Saudi Arabia, Ajlan Bros Group has embarked on a significant diversification both regionally and globally. We aim to support the modernization of Saudi Arabia, whilst providing avenues for private investment and local employment opportunities.CONTENTS JULY 202 1 CEO MIDDLE E A ST 3 JULY 2021 # 171 6 EDIT OR’S LETTER 8 ALT E RNAT IVE INVES T MEN T S Investment banker Racha Al Khawaja outlines some of the latest vehicles at the vanguard of the future of finance 10 CUS T OMER REL AT I ONS Many businesses have reached an inflection point where digital technologies are replacing face-to- face interactions at a staggering rate, believes Bao-Viet Lê 12 TR EN D S A recent study reveals how the pandemic has altered the way individuals and organisations view the insurance sector 14 C O N N E CTI V IT Y Mohammed Amin of Dell Technologies explains how broadband has formed the foundation for today’s smart infrastructure 16 D A ILY ROU T INE Author Saahil Mehta shares the importance of a good daily routine for CEOs 8 1012 14CONTENTS 4 CEO MIDDLE E A ST JULY 202 1 18 INNO VAT I ON Visa's Akshay Chopra discusses the impact innovation has had and will have in supporting businesses recover 20 W O RK-L IF E B A LANCE There are several workplace truths that HR leaders can’t ignore in a post- pandemic era, believes Koray Genckul from Hilton 24 LE A D ER SH I P Business leaders need to utilise all available resources at their disposal to accelerate progress, says startup founder Oko Davaasuren 28 CO VER S T OR Y: ARE E J MOHSIN HAIDE R D A R W ISH Chairperson of Automotive, Construction Equipment & Renewable Energy (ACERE) cluster of MHD LLC 18 24 20 36CONTENTS JULY 202 1 CEO MIDDLE E A ST 5 34 SUS TAINABL E F I NANCE Ibrahim Al-Zu'bi shares his insight on sustainable financing in emerging markets 36 COLL ABOR AT ION Organisations should seek collaboration and not ruthless competition in order to survive, says Dr Samir Hamrouni 38 RETA IL SPO T L I GH T Didier Laffineur, regional managing director of Ferrero Gulf, discusses leadership, regional chocolate preferences and the group’s growth in 2020 40 L UXUR Y TR AV EL Marriott International and Quintessentially are bringing ultra personalised luxury experiences to elite travellers 42 L UXUR Y LIVING Talal Abdin Nasralla of Gulf Craft explains the benefits of becoming a boat owner 44 A C CESSORIES Ultra-luxe eyewear house Akoni has redefined eyewear, creating sunglasses and opticals that are both ultrastylish and made to last 48 CR AFTSMANSHIP Summer is here and so is Bulgari’s incredible ode to bold colour, superlative gem-setting and artistry 50 FI N A L TH O U G H TS Ultra luxury has become more resilient and sophisticated 40 38 42 34 506 C EO M I D D L E E A S T JULY 202 1 ED IT OR ’S P OR TR AI T: O LI VE R @ P HO TO SO LU TI ON S. M E “ Companies that earn strong loyalty from customers systematically teach and reward behaviours such as small acts of compassion at the right moment,” writes Bao-Viet Lê, Partner at management consultancy, Bain & Company Middle East. As digitalisation continues its stratospheric, turbo-charged evolution, it’s easy to think that the human touch is becoming less and less relevant in our daily interactions with businesses. Heck – with each other. Nothing could be farther from the truth of course. It’s something that is a cornerstone of ultra-luxury. An industry that’s also evolving fast to meet the requirements of discerning clients with formidable spending power – the personal touch is non-negotiable for this demographic, and we’ve got the team at Marriott and Quintessentially sharing insights into how they’ve united to offer a truly bespoke experience to this demanding, discerning segment. Although digital technology has replaced face-to-face interaction at a staggering rate, it is those moments when a human interaction happens that are proving to be more crucial than ever. Get them right, and you retain customer loyalty, elevate your brand’s reputation and create connection. The insights shared by Bain are thought-provoking and relatable at a personal level – we’ve all experienced the searing frustration of digital done wrong, and if there isn’t a responsive and empathetic human being beyond the computer says no moment, then your brand rep can slide into the trash quicker than the stone- cold pizza your delivery subcontractor just delivered. See what the experts have to say on page 10. With a shifting world demanding that we unite future technology and innovation with our very best existing practices and strengths, the world of investment has also experienced a seismic shift. I’m delighted that leading investment banker Racha Al Khawaja has shared some of her insights into alternative investments with CEO this month. A preeminent voice in her industry, she is a champion for demystifying jargon, straight talking, and seriously impressive results – bringing a much needed human touch to her industry that yet again underscores how vitally important this approach really is. Finally, our cover star this month, Areej Mohsin Darwish, is a leader whose commitment to transparent leadership has seen her expand a diverse business empire. “Leaders can significantly impact the lives of others and good communication is absolutely fundamental. Cooperation and participation works best for me as it creates a more engaged workforce and a strong sense of organisational identity.” It’s a recurring theme in companies where the workforce is engaged and empowered, and where its clients and customers feel connected and valued. How do you encourage the human touch in your culture? Drop us a line and let us know – we would to love to share your success with others. Jola Chudy Editor-in-Chief Share your views on thought leadership and innovation by getting in touch. Q U ESTI O N S? CO M M E NTS? Jola.Chudy@itp.com JOLA CHUDY Editor in Chief NOTHING IS MORE POWERFUL THAN THE HUMAN TOUCH Shining star. Areej Mohsin Darwish, Chairperson of Automotive, Construction Equipment & Renewable Energy (ACERE) cluster of MHD LLCJ U LY 2 0 2 1 C EO M I D D L E E A S T 7 To receive your copy delivered directly to your door, subscribe online at www.itp.com/subscriptions The most important business people and CEOs talk to the most important magazine The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. 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MEDIA8 C EO M I D D L E E A S T JULY 202 1 TIME | ROLEX e live in a new world. Creat- ing new investment products, adapting allocation. The world as we know it has changed, the way we invest changed, and so is our perception of risk. The Covid-19 pandemic has blurred inves- tor’s vision of the future, and in many ways has given them time to reflect on the way they have been investing and what alternatives exist in the invest- ment world to diversify their risk. The pandemic has accelerated some sectors, mainly the digital world, a variety of new ideas have emerged and have come to the market, and some actually turning into successful new investment vehicles. Where can I get higher return and diversify my portfolio? While there are many instruments that come under alternative investments, let’s focus on venture capital funds and real estate funds or REITS, the two current hot topics in the investment world and two that offer diversification. The first tackles the changing world and the new technologies that emerged to accommo- date new consumer needs and the second tackles, predominantly, inflation and rising asset pricing. VC funds The digital world has led the way to new technologies and the emergence of new companies that have cleverly adopted these to attend to consumer needs, be it healthcare, security, F&B, and the list goes on. But as an investor how do you al- locate to these various sectors, do you have time and expertise to study the ins and outs of each sector, the found- ers, operational efficiencies, cash flow management, threats the competitors pose and more importantly, the survival probabilities of these great ideas? That’s how VC funds were born. They fill a real gap in the market and solve a challenge that investors face. VC Funds identify the best start-ups in each sector, they ALTERNATIVE INVESTMENTS A new world necessitates new investment products. Racha Al Khawaja, a leading regional investment banker and board member, outlines some of the latest vehicles at the vanguard of the future of fi nance W FINANCEJULY 202 1 CEO MIDDLE E A ST 9 FINANCE assist them operationally, they help them fund raise and market their products and support institutionalising their business, while providing the investor the right mix of diversification to fit their risk profile and maximise returns. Typically VC funds founders spend the majority of their time selecting port- folio companies, negotiating investments, fund raising, monitoring portfolio compa- nies, acting as their consultants, assisting in recruitments and finally securing exits for their investments. This requires a high level of expertise in all these fields. Where are these VC funds located? How do I find them? And what return should I expect? The US has led the way in VC funds, there are over 1,000 VC funds in the United States currently, according to the National Venture Capital Association. But VC funds are not only typical in the US, the Middle East has seen many success stories and has managed to get on the world map in terms of successful deals in that sector, but only in the past business cycle, ie six – seven years, that this trend has accelerated. This could be viewed as late in the game but in reality VC funds only emerge once the start-up landscape has matured and grown to a level that grants such funds access to enough deals to secure a large enough portfolio of companies. In terms of return, typically a VC funds returns anything between 15 percent and 27 percent yearly, a clear higher return than traditional investing in plain vanilla products. These returns clearly indicate the risk associated with such investments. The rule of high risk high return very much applies here, and why diversifica- tion of sector allocation is crucial to en- sure a balanced portfolio and help ensure some return to investors. REITS The other alternative investment product we will discuss in this piece are REITs, Real estate investment trusts, a vehicle that helps expose investors to the real estate sector through equity or debt, in a fund structure. Most mature diversified portfolio will have real estate as part of it. Bricks and mortar as we were always taught is never a failing investment. One of the most complex asset class is real estate, if incorporates equity, debt, a transaction cost element, expense of maintenance and many other factors. Where is the opportunity? The REIT market is very large in the US, with over 250 listed REITs currently. It is also a highly regulated market, mainly as it attracts a large number of investors and it answers a liquidity challenge, given that REITs are listed instruments. Singapore is the second largest REIT market and now offers listings to REITs who manage assets from around the globe, attracting REIT managers due to the business friendly regulatory framework and easy accessibility to the Singapore stock exchange. The Middle East has started to grow its REIT market recently, in the past five years or so. The market is still young for that asset class, although maturing, and the necessary education of investors about the intricacies of REITs have proven to be complex and lengthy, albeit necessary. What other alternative investments are out there? Various other alternative investment vehicles have emerged in recent years, NFTs and tokenisation to name a few. With many new products emerging, investors can no longer afford to lack education in them or allocation in them. “VENTURE CAPITAL FUNDS AND REAL ESTATE FUNDS OR REITS ARE CURRENT HOT TOPICS IN THE INVESTMENT WORLD AND TWO THAT OFFER DIVERSIFICATION.” Confidence. Investor selection of a VC fund sits mainly in the trust the investor has in its founders.Next >