< Previous30 C EO M I D D L E E A S T JULY 202 1 fter 27 years at Mohsin Haider Darwish (MHD) LLC, Areej Mohsin Haider Darwish has not only worked for – and then led – the conglomerate’s growth and expansion throughout Oman but has also seen the nation’s business landscape significantly develop. “We have seen a steady transformation through development plans with the pre- dominant focus on economic diversifica- tion,” she tells CEO Middle East. “We have seen growth in infrastructure, logistics, smart cities, strategic development of free zones and economic diversification.” Areej can relate to the government’s focus on sustainability, which is outlined in Oman Vision 2040, because she views it as a central tenet of her own management. “As a leader, I look at sustainability as a mindset that prioritises people, planet and profit equally. We have a responsible approach to the way we lead and how our actions have a wider impact on society and environment.” With this in mind, Areej defined a set of day-to-day practices and longer-term strategies to help MHD achieve what she calls the “triple bottom line” of social, environmental and financial performance. On a daily basis, MHD has turned to digital tools in a bid to be as paperless an organisation as possible. Recycling initia- tives, energy-efficient lighting and solar panels have been installed to minimise energy consumption and wastage. “We are also looking at converting our fleet to electric vehicles and though complete coverage will take time, we have started walking this path,” she says. A “WITH THE CHANGING BUSINESS SCENARIO IT IS SO IMPORTANT THAT A LEADER IS RESILIENT.” MHD ACERE recently opened its ninth MG showroom and service centre in Nizwa. COVER STORYJULY 202 1 CEO MIDDLE E A ST 31 COVER STORY This isn’t about ticking off some boxes to meet CSR or ESG criteria. “These measures have a positive impact on the environment,” Areej says. Leadership: values and style After years at the helm of MHD LLC, Areej recognises that a leader does more than manage and direct people; with their experience and insights, they can have a positive influence in the community. “In order to positively lead and interact with employees, team members and business partners, leaders require a strong set of leadership qualities.” Over time, she has developed leadership value system based on three core themes: VISION AND PASSION: “For me, a leader should be a visionary. Great leaders have the ability to see the bigger picture of where the organisation is headed, what it’s capable of, and what it will take to get there. They have a relentless passion to achieve their organisational goals and are able to see possibilities and identify opportunities. They turn ideas into action.” RESILIENCE: “The business world is dy- namic and with the changing business scenario it is so important that a leader is resilient. With their management, they lead by example and support and bring their team to work together no matter the circumstances. It’s the in- nate positivity that helps to cope with challenges in a calm and collected man- ner. It’s important to focus on solutions rather than on problems.” COMMUNICATION: “Good communica- tion is one of the leadership attributes that is absolutely fundamental to the growth of an organisation. It’s im- portant for a leader to communicate effectively as it motivates and inspire teammates to work hard and achieve team targets and organisational goals as well. Effective leadership and effective communication are intertwined as they directly affect the success of the busi- ness strategy.” Leaders have their own style, which helps them achieve their goals and turn a vision into reality. “For me as a leader, cooperation and participation works best as it creates a more engaged workforce and a strong sense of organisational identity.” That said, Areej recognises that in- volving more people in decision-making presents its own challenges – it can be time-intensive, since the workforce needs time to process the information, formu- late suggestions and present options to the leader. Analysing the information and options can also take time, while group work, in general, always raises the pos- sibility of contention. “However, I am of the opinion that the advantages outnumber the disad- vantages and the leader must set an example to keep the team focussed on working towards a common goal. It also helps if the leader leads discussions in a strategic way.” Legacy and succession planning MHD LLC was founded by Mohsin Haider Darwish, Areej’s father. Today, her son, also named Mohsin, is CEO of the company’s ACERE division, which she is chairperson of. In her roles as a daughter, worker, leader, mother and the middle generation of the family business, Areej has gained insight into a number of areas. One of these is succession planning. “GREAT LEADERS HAVE THE ABILITY TO SEE THE BIGGER PICTURE OF WHERE THE ORGANISATION IS HEADED.” Auto dealer. The division represents premium automotive brands including Jaguar, Land Rover, Volvo and MG. 520% The rise in turnover of MG Cars in Oman from 2019 to date32 C EO M I D D L E E A S T JULY 202 1 COVER STORY “In order to ensure the younger generation gains valuable experience, we have involved Mohsin actively in the business. He has not only learnt and been trained in the business but he has taken the lead and is redefining the business through his innovative ideas. “Allowing the next generation to innovate works in the best interest of the family business and also helps to make decisions about the long-term future in a rapidly changing world. She values the mixture of experience and youth that she and Mohsin offer MHD. “My son has different thoughts and ideas on how to expand our presence and I have the experience of foresight.” However, while she recognises that handing over the corporate reins of power completely is on the horizon, Areej remains focussed on the present. “Currently, our focus is to expand and strengthen our business and our family’s purpose, principles and values are our guiding light.” A male-dominated industry “When I joined the industry almost three decades ago, a woman leading in the automotive sector was unheard of,” says Areej. “But I feel that it is not about gender, as that has no impact on one’s ability to perform a job and do it well. It is about the abilities, efficiency, drive and “THE AUTOMOTIVE INDUSTRY HAS TO TAKE ADVANTAGE OF THE EXPERTISE THAT THE FEMALE WORKFORCE HAS TO OFFER.” Workforce. MHD Training Institute aims to impart training to Omanis as its commitment to boost employment for nationalsJULY 202 1 CEO MIDDLE E A ST 33 COVER STORY skills that make a difference.” Areej used her passion for cars to challenge herself, learning the finer de- tails of the industry and figuring out how she could make a difference. While she wouldn’t call herself a role model, Areej does feel that her experience, both in the automotive sector and as a leader, holds tremendous value. “Our ac- tions play an instrumental role in shaping people’s career aspirations, as they will tend to see how we make the best of the opportunities and how we brace for chal- lenges in our businesses. We can help them see their potential and achieve more. “If through our actions we can make a difference to anyone and inspire them to progress in their professional and personal growth, then I can think we are positive role models or influencers.” Under her leadership, MHD ACERE has recently entered into a few new business verticals. “Auto Expert is an advanced diagnostic training and devel- opment centre that was launched with the aim of becoming a one-stop-shop for scheduled maintenance, service and repairs of all kinds of vehicles. “With the transportation infrastruc- ture needing an overhaul and new car sales going up each year, there was a demand for superior maintenances. The facility caters to accessories, detailing, polishing, window tinting, smart repairs and paint jobs for all kinds of vehicle brands.” MHD ACERE recently opened its ninth MG showroom and service centre, in Nizwa, while the division has also ventured into the car rental space. Areej sees that corporate perceptions have dramatically changed over the past few decades, with more women entering the traditionally male-dominated sector. However, in order to encourage more women to enter the automotive industry, organisations need to focus on recruiting, retention and growth opportunities for deserving women candidates. “Technology is also changing the nature of work in the sector. As cars have gotten smarter, and automotive jobs have become more tech-based, we have women working in these technologies exten- sively such as data science and artificial intelligence. There are a lot of women in the tech-based fields and the automo- tive industry has to take advantage of the expertise that the female workforce has to offer.” From a company’s perspective, equal access, mentorship programmes, equal pay and flexible working arrangements can all encourage more women to enter the industry, Areej adds. “My advice to women is not to focus on the fact they are in a male-dominated industry. It’s about their performance level; show them your abilities and follow your dreams.” NURTURING TEAM TALENT Here’s how Areej Mohsin Haider Darwish looks at when considering a member of her team for promotion: Performance: This would be one of the main criteria for promotion as we assess and evaluate the performance of an employee over a period of time. Work ethic: This is an integral factor as a positive workplace ethic ensures a positive ambiance. Employees who exhibit good pri- oritisation skills, punctuality, consistency and commitment are key drivers for any business. Self starter: I think when employees are naturally committed and dedicated to what they do, they will take the initiative to go beyond and are capable of managing them- selves, motivating themselves or handling their work without the need of supervision from their seniors. Solution-oriented mindset: Solutions- driven employees take the initiative to focus on finding solutions and at the same time identify ways to prevent other issues from occurring. This proactive mindset can help in delivering better results and tackling new challenges. Teamwork/people skills: Employees who value teamwork deserve the career progres- sion as they promote strong working relation- ships, improved efficiency and productivity. A team worker fosters a culture of collabo- ration, by which they lead others towards attainment of organisational goals. Supporting women. Areej is of the opinion that organisations need to focus on recruiting, retention and growth opportunities for deserving women candidatesBy IBRAHIM AL ZU’BI, Chief Sustainability Officer at Majid Al Futtaim Holding The next decade presents a ‘use it or lose it’ moment for emerging markets to reorient the fi nancial sector towards building a more sustainable and resilient future 34 C EO M I D D L E E A S T JULY 202 1 SUSTAINABLE FINANCE SUSTAINABLE FINANCING IN EMERGING MARKETS T he global response to Covid-19 bears witness to the power of col- lective action, and how technol- ogy can be mobilised to garner and stream- line efforts across sectors, including health, education, telecommunication, and more. The pandemic has also exposed how vul- nerable and fragile our economy can be; in a matter of months, hundreds of thousands of people died, millions of jobs were lost, and livelihoods shattered. Leading international organisations project global gross domestic product (GDP) growth for 2020 to range between -8.8 percent and 1 percent, and the num- ber of those living in extreme poverty to increase by 420 million people, according to UNIDO. In the wreckage left behind by the coronavirus pandemic, sustainable fi- nance is all the more crucial in paving the way from devastation to recovery. The next decade presents a ‘use it or lose it’ moment for emerging markets to reorient the financial sector towards build- ing a more sustainable and resilient future. Investments in infrastructure are expected to reach $90 trillion by 2030 to meet the needs of increased populations around the world, and Covid-19 has urged govern- ments to provide large stimulus packages, the Global Commission on the Economy and Climate UN report found. This places greater emphasis on the need to invest with a view of environmental, social and govern- ance (ESG) issues, and not just traditional finance metrics. Indeed, for low and mid- dle-income countries, returns on responsi- ble investment is high, amounting to $4 on every $1 spent on resilient infrastructure, a World Bank report found. Moreover, The Sustainability Report by Morgan Stanley analysed the perfor- mance of more than 10,000 mutual funds to find that sustainable equity met or ex- ceeded median returns of traditional equi- ty 64 percent of the time. This proves that there need not be a trade-off between fi- nancial and non-financial returns. In fact, ESG investments have a higher potential for long term payoffs. As the current pan- demic forces a more prudent management of financial resources, sustainable invest-JULY 202 1 CEO MIDDLE E A ST 35 SUSTAINABLE FINANCE ment options by governments, investors and corporations need to be prioritised. Sustainable finance is not confined to environmental-linked investments, but extends to all financial products and services that integrate ESG crite- ria into its decision processes, policies, frameworks, and practice. It is about reducing the financial gap in meeting SDGs to solve major and global problems such poverty, inequalities, and climate change. Seven trends in sustainable fi- nance will transform the future land- scape of ESG in emerging markets. Increasing commitments to address climate change For nations to prevent irreversible dam- age and stay at the current 1.5 degrees of global warming, global emissions must drop by 50 percent over the next dec- ade, according to a UN Environment report. A growing green bond market has emerged to help investors align their financial objectives with real economy impact, and to achieve the targets of the Paris Climate Agreement and Sustain- able Development Goals. One example is the Real Economy Green Investment Opportunity GEM Bond fund (REGIO) created by HSBC Global Asset Manage- ment and leading development finance institutions (DFIs). The fund has raised $474m and aims to aid investors in emerging economies to achieve the long- term SDGs, HSBC figures show. Intensifying interest in the importance of ESG investment and disclosure Making, assessing and managing invest- ments based on ESG factors is gaining momentum worldwide. In 2018, 80 per- cent of the world’s largest corporations used Global Reporting Initiative (GRI) standards, according to Forbes. In 2020, the Dubai Financial Market (DFM) launched the UAE Index for ESG to en- courage listed companies in the UAE to embrace ESG best practices. Minding the gap through innovative financing The financing gap to achieve sustainable development goals (SDGs) by 2030 is $2.5 trillion annually. The challenging land- scape of sustainable financing in emerg- ing markets has given space for innovative financing to develop. An example of this is the South African Impact Bond Innova- tion Fund, which is the first social impact bond focussing on early childhood in the Global South. Another example is Ma- jid Al Futtaim’s first green sukuk in the MENA region with a value of $600m. “ECONOMIC RECOVERY IS A PRIORITY FOR ALL NATIONS WITH SUSTAINABILITY AND BUILDING RESILIENCE AT ITS CORE.” Green investing. Ibrahim Al Zu’bi is the Chief Sustainability Officer at Majid Al Futtaim Holding. Banks stepping up sustainability and green-linked loans Banks have been increasingly tying loan terms to ESG performance; sustainabil- ity-linked loans totalled $71.3bn in the first three quarters of 2019. The quest for data Sustainable investments require data based on ESG metrics. However, com- panies lack adequate and useful data to quantify and measure the impact of their investments, leading to potential inefficiencies. Early this year, Refinitiv launched the Future of Sustainable Data Alliance with the objective of accelerating capital inflows into sustainable finance by providing investors and governments the data needed to assess and identify sus- tainable investments and products. The quest for taxonomies, regulations, and legislations Regulations and legislations are consid- ered key drivers to sustainable finance in emerging markets. Until 2018, sustainable financing was regulated in China only. Increased attention has been given to es- tablishing and standardising regulations and guidelines that foster capital inflows to sustainable finance. Examples of measures taken by some emerging markets include Indonesia’s Green Finance Roadmap, the Banco Cen- tral Do Brasil’s voluntary requirements for banks to monitor environmental risks, and the UAE’s first set of guiding princi- ples on sustainable financing. Refocussing sustainable financing post Covid-19 The recent pandemic has shifted the na- tions’ focus to acute social risks such as health and employment. There is no doubt that economic recovery is a priority for all nations with sustainability and building resilience at its core. It is crucial to keep in mind that the comeback from Covid-19 will take years – the same years that are crucial to ensuring we meet our SDGs and climate change targets and prevent an ir- reversible catastrophe. $600M The value of Majid Al Futtaim’s first green sukuk in the MENA region36 C EO M I D D L E E A S T JULY 202 1 he sharing of expertise and resources as a result of such cooperation, for instance, enables partners to address issues more efficiently, better optimise opportunities and gain more practical and creative perspectives. Modern global challenges have made ruthless business competition unsustainable and counterproductive. Instead, increased collaboration has replaced the concept of cutthroat com- petition to encourage strategic business alliances that bring forth not just simple company growth but one that generates positive societal, economic and environ- mental impact. Contrary to past beliefs, collective efforts among businesses within the THE KEY TO BUSINESS SUCCESS ORGANISATIONS, BIG OR SMALL, SHOULD SEEK COLLABORATION AND NOT RUTHLESS COMPETITION IN ORDER TO SURVIVE AND THRIVE IN THIS CHALLENGING ENVIRONMENT, BELIEVES DR. SAMIR HAMROUNI T COLLABORATIONJULY 202 1 CEO MIDDLE E A ST 37 COLLABORATION same industries or across sectors lead to a range of benefits. The sharing of ex- pertise and resources as a result of such cooperation, for instance, enables part- ners to address issues more efficiently, better optimise opportunities and gain more practical and creative perspectives. Under collaborative ecosystems, com- panies are well-positioned to flourish and strengthen their overall societal and economic contributions with immense benefits for the communities. The significance of this coopera- tion is highlighted in the healthcare and pharmaceutical sectors under the pre- sent global health crisis. With industry players agreeing to exchange data, ex- pertise and resources, the much-needed solutions are delivered faster and better. A connected global trade In the realm of free zones, collaboration is preferred and encouraged to build a more streamlined system capable of promoting the ease of doing business, creating employment opportunities and bolstering trade and investment. It also results in sustainable business solutions. When joining forces, free zones across the world can utilise globally accepted guidelines integrated with regionally distinct strategies. Bringing all free zones around the world under one shared forum is vital to developing a win-win situation for all stakeholders. World Free Zones Organisation (World FZO), the global voice for free zones, has been work- ing towards this end by implementing various relevant programmes to achieve solid partnerships, establish cooperation in transport and logistics and ensure robust international public-private part- nerships. These efforts have paved the way for smoother operational mecha- nisms and collaborative initiatives. Amid the still raging pandemic, meantime, World FZO has left no stone unturned to protect free zones from the full impact of the challenging and still- changing market conditions. In this regard, it has deployed its partnership-driven New World Model (NWM) to not only support free zones in the face of these unprecedented chal- lenges but, more importantly, future- proof them as well. NWM follows the important princi- ples of transparency and trust for alli- ances to be more dynamic and vibrant. Transparency allows for accountability and communication, leading to higher confidence between partners. Trust, on the other hand, empowers parties to make and implement better deci- sions and actions, knowing that they are working towards their best interests. By opting for collaboration over ruthless competition, free zones are empowered to address the needs of their customers, improve their offerings and achieve more growth while fulfilling their commitment to the economy, society and the environment. More than anything, collaboration highlights that businesses cannot ex- ist and function in isolation. Business organisations should forge ties with companies of the same mind and goals as them to flourish, set themselves apart and achieve longevity and success. *Dr. Samir Hamrouni has provided analyti- cal assistance and advice on key strategic matters related to Dubai Silicon Oasis Authority (DSOA), Dubai Airport Free Zone (DAFZA) and Dubai Free Zones Council. “COMPANIES ARE WELL-POSITIONED TO FLOURISH AND STRENGTHEN THEIR OVERALL SOCIETAL AND ECONOMIC CONTRIBUTIONS.” Powering progress. World FZO is working to protect free zones from the full impact of the challenging market conditions. Building bridges. Dr. Samir Hamrouni is the CEO of World Free Zones Organisation.38 C EO M I D D L E E A S T JULY 202 1 TIME | ROLEX s Ferrero Gulf’s regional manag- ing director, how would you define your leadership vision? I would say that my vision of leader- ship reflects that of my organisation, Ferrero. Although I took on my current role last summer, I have been with Fer- rero for almost two decades and, with time, the company’s unique way of doing things has inevitably shaped my own business ethos. Ferrero’s goals, beliefs and values are dictated by a steadfast commitment to being a positive force for good – it is this guiding principle that permeates our actions and our outlook for the future. That’s why we strive to make a positive impact on employees, consumers, fami- lies and the local communities in which we operate. That’s also why our meticulous atten- tion to detail runs through every aspect of our organisation, from the selection of our ingredients to the way our products are delivered, stored and consumed. In addition, our business approach is deeply rooted in the empowerment of people, the promotion of responsible consumption and the protection the environment. For me, these strategic pil- lars translate into key building blocks for engaging leadership. Now, let’s talk numbers. In reference to your annual results, the consolidated figures show growth despite the global health crisis. What was Ferrero’s strategy to achieve this? Yes, it is true that, despite the unprec- edented level of uncertainties and volatil- ity caused by the coronavirus pandemic, globally, Ferrero closed the financial year with a consolidated turnover of €12.3bn ($14.6bn), an increase of 7.8 percent over the previous year. In terms of what specifically led to these figures, globally, Ferrero Group’s net sales growth has been driven by the geographies least and last affected by the pandemic; the strong performance ACHIEVING GROWTH DURING A PANDEMIC Didier Laffi neur, regional managing director of Ferrero Gulf, which owns chocolate mega-brands Nutella, Kinder and Ferrero Rocher, discusses leadership, regional chocolate preferences and the group’s growth in 2020 A RETAIL SPOTLIGHTJULY 202 1 CEO MIDDLE E A ST 39 RETAIL SPOTLIGHT of iconic brands such as Nutella, Kinder Bueno and chilled products; the launch of new products including Nutella Biscuits in Italy; and the full integration in the consolidated accounts of products such as Keebler, following its acquisition from Kellogg Company at the end of the 2018/2019 fiscal year. With regard to the health crisis, from an industry perspective, there is no denying that Covid-19 obviously brought about several challenges. It radically disrupted global distribution, creating serious obstacles in critical areas such as logistics and supply chain. Ensuring not only business continuity but also business success amid such a climate was no easy feat. With this mind, speaking on behalf of Ferrero, of course, we managed to achieve growth, guarantee operational continuity and deliver high-quality, fresh products to our discerning consumers thanks to our ability to effectively adapt to an ever-evolving situation. However, like most companies our number one priority has been the safety and health of our employees during this terrible crisis. Thanks to a great portfolio of products and our sustainable efforts and investments, we have successfully further grown our business. The fact that agility, resilience and resourcefulness have always been part of Ferrero’s DNA made this possible. How much does the region represent from the total group portfolio? We usually don’t disclose results by geography or category. What is clear is that Ferrero Gulf is among the strategic markets for the group, which is also why we have invested in joint ventures across several GCC markets. These partnerships – first in the UAE with Al Seer Group in 2018 and more recently in Kuwait with Al Bustan Al Khaleeji (BK) – were a culmination of longstanding relationships with our dis- tributors. Thanks to these joint ventures, we are now able to have a direct channel of distribution in these markets, which charts an important pathway for broader business opportunities. What’s your biggest market worldwide? Globally, every single market, regardless of its size or geographical location, is im- portant and plays a pivotal role in driving our overall growth numbers. As for this part of the world, again, the GCC as a whole is a strategic area for the group. That is why, in recent years, we have laid the groundwork for business success in the Gulf. Today, we can see that our efforts have started to bear fruit. What are your bestselling brands and products in the region? The beauty of having a diverse portfolio is that each of our products appeals to a respective target audience and is sought-after amongst that demographic. Nutella, for example, is very strong with families. In fact, it actually has the highest household penetration globally in Saudi Arabia. As for the chocolate for kids category, Kinder brands, such as Kinder Joy, are top-ranked. At Ferrero, we believe that this sort of demand is a result of our deep knowledge of local consumer needs. We understand the very criteria that drive and affect the purchasing decisions of GCC consum- ers. We know they are well-informed. We know that they are in pursuit of superior quality and unique products. We know they crave a powerful emotional connec- tion with brands. That is what defines the Ferrero customer, and that is what we aim to provide them with through our range of products. “WE UNDERSTAND THE VERY CRITERIA THAT DRIVE AND AFFECT THE PURCHASING DECISIONS OF GCC CONSUMERS.” Sweet success. Nutella has the highest household penetration globally in Saudi Arabia. $14.6BN Ferrero Group’s consolidated turnover for financial year 2020Next >