SEPTEMBER 2022 # 184 BREAKING THE BOUNDARIES OF TRANSFORMATION Prashant Goenka, director of Emami, on how turbocharging innovation is the key to success UAE AED 20 KSA SAR 20 BAHRAIN BHD 2 KUWAIT KWD 2 OMAN OMR 2 AN ITP MEDIA GROUP EVENT Wednesday 21 st September 2022 Taj Exotica The Palm, Dubai, UAE Unpacking the biggest opportunities and challenges facing working women in the region 2 ways to participate and join the conversation Register as a delegate Confirm your sponsorship presence COMMERCIAL ENQUIRIES Saraswati Agarwal Group Commercial Director Tel: +971 4 444 3352 GSM: +971 52 895 2214 E-mail: saraswati.agarwal@itp.com EVENT ENQUIRIES Anthony Chandran Marketing & Events Manager Tel: +971 4 444 3689 E-mail: anthony.chandran@itp.com EVENT SPONSORS & PARTNERS Women in Business Conference 2022CONTENTS SEPTEMBER 2022 CEO MIDDLE EAST 3 SEPTEMBER 2022 # 184 6 EDITOR’S LETTER 8 ECONOMY Benjamin Young, director at S&P Global Ratings, explains why GCC banking is resilient to geopolitical stress 10 COMMENT Unlike Elon Musk, Twitter has been responding where it might count most – in court, says entrepreneur Briar Prestidge 12 COMMENT As we enter a phase of unprecedented environmental backlash, the question of the plastics lifecycle is all but a timely one, believes Maryam Al Mansoori, General Manager at Rebound 14 COMMENT Becoming financial literate is hugely important to Gen Z but challenges exist around education, says Marilyn Pinto, founder of KFI GLOBAL 16 LEADERSHIP Both private and public sectors have a key role to play in the advancement of social enterprises, argues Assia Riccio, founder and CEO of Evolvin’ Women 08 1014 16CONTENTS 4 CEO MIDDLE EAST SEPTEMBER 2022 26 STARTUP Alex Bertha of Signal Peak Ventures (SPV) Utah and Rupert Tait, co-founder of Procurified, discusses the flourishing venture capital industry in the UAE 30 STARTUP With entrepreneurship comes responsibility; the responsibility of running and growing a business, the responsibility of securing employees, and very importantly, the responsibility of leaving the world in a better place 34 REAL ESTATE Gavin Comerford, projects director at CHI SOL Investments, shares his industry experience on Dubai’s ever growing high- end real estate market 20 26 30 34 By turbocharging their core and constantly innovating, Emami’s Director Prashant Goenka reveals how the company has stayed far ahead of their growth trajectory COVER STORY4th Annual BIM & DIGITAL TWINS MIDDLE EAST 2022 is the region’s leading event for Building Information Modelling (BIM) and Digital Twins, organized with Event Partners buildingSMART UAE, Dubai Municipality, Land Department, and buildingSMART International. Event theme is Open BIM & Digital Twins: The Key to Industry 4.0 and includes a 2-day conference plus workshop on latest developments for BIM, Digital Twins, GIS, digital design, digital transformation, 3D and related technology. Presentations focus on the role of digital construction technology from project concept and design, project management, to full lifecycle asset management. Presentations are given by government and private sector organizations at the forefront of the region’s construction industry, plus, international organizations that are leaders in smart sustainable construction and built asset management. For full details including program, online registration and event sponsorship and exhibitor opportunities please visit www.itp.events/BIMDigitalTwinsMiddleEast2022 FOR FURTHER EVENT DETAILS INCLUDING EVENT SPONSORSHIP AND EXHIBITOR OPPORTUNITIES, CONTACT: Anthony Sprange T: +971 58 598 9062 E: anthony.sprange@itp.com Scan the QR code to learn more about the event and register BIM & Digital Twins Middle East 2022 and Smart Construction Conference & Expo 2022 will be held on: 20 & 21 SEPTEMBER, THE CROWNE PLAZA DUBAI EVENT PARTNERS POWERED BY: CONTENT PARTNERSSUPPORTING EVENT PARTNER DIAMOND SPONSOR SILVER SPONSOR SILVER SPONSORPLATINUM SPONSOR LUNCH SPONSOR GOLD SPONSOR BRONZE SPONSOR SILVER SPONSOR WORKSHOP SPONSOREDITOR’S LETTER 6 CEO MIDDLE EAST SEPTEMBER 2022 H ello and welcome to the September edition of CEO Middle East. The quest for continued relevancy is one which businesses often find themselves facing. Whether confronted by a younger disrupter, or with changing consumer demands, leaders need to continue to maintain their adaptability. In periods of flux, such as the prevailing macroeconomic headwinds of 2022, innovating is the key to countering challenges. In this vein, this month our cover story features Prashant Goenka, director of India-based retail firm Emami Group. In his own words, “Encouraging a culture of agility and continuous transformation is the core for value creation,” and our story delves deep into how a corporate giant can maintain this culture of innovation. Emami has grown significantly since its founding in 1974, expanding to markets around the world, and it is this story of adaptability and expansion that most intrigued us here at CEO Middle East. Turn to page 20 for the full story. Leaders help shape industry, and shepherd in the next generation of business. As such, it is unsurprising that leaders play an outsize role in advancing the causes of inclusion and diversity. This is a subject which we’ve dived into this month on page 16, analysing the role that the private and public sector can play in advancing the progress of women in society. Speaking of the call to innovation, the startup sector, itself a hotbed for disruption, continues to be a bright spot in business. The venture capital industry in the Middle East has grown by several orders of magnitude, even despite pandemic-era challenges, a topic we examine in depth beginning on page 26. With successful stories of entrepreneurs inevitably it becomes time to move on. The topic of exiting a business is one that seems to often be left to the wayside in favour of exploring the path to success, but is nevertheless a critical part of an entrepreneur’s journey. With this in mind, at page 32 we have published a piece analysing how to competently achieve an owner-managed exit. Finally, with the conversation around innovation flourishing, it is no surprise that we have also included a special section on the metaverse this month. The metaverse as a technology is set to transform numerous industries, and this month we have focused on three – travel (page 38), the marketing sector (page 40) and education (page 42). Each of these three is likely to be affected in different ways, and I hope you find this section shines a light on the future of each. Until next time, Share your views on thought leadership and innovation by getting in touch: matthew.amlot@itp.com QUESTIONS? COMMENTS? MATTHEW AMLÔT Editor @MatthewAmlot THE CALL FOR CONSTANT INNOVATION Beyond corporate buzzwords, businesses need to renew to stay relevantSEPTEMBER 2022CEO MIDDLE EAST 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. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. 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ITP MEDIA GROUP CEO ALI AKAWI CFO TOBY JAY SPENCER-DAVIES MANAGING DIRECTOR ALEX REEVE DEPUTY MANAGING DIRECTOR ANIL BHOYRUL EDITORIAL EDITOR AT LARGE MATTHEW AMLÔT matthew.amlot@itp.com SUB EDITOR EDWARD LIAMZON SENIOR DESIGN MANAGER GERI SONNY DESIGNER MOHAMMED IRQSOSY EVENTS & MARKETING DIRECTOR OF AWARDS & MARKETING DANIELFEWTRELL +971 4 444 3684 Daniel Fewtrell@itp.com ADVERTISING GROUP COMMERICAL DIRECTOR SARASWATI AGARWAL +971 4 444 3352 saraswati.agarwal@itp.com SENIOR COMMERCIAL MANAGERR MANSI KHATWANINI +971 4 4443242422 mansi.khatwani@ni@i@ittp.c.comm PO BOX 500024, DUBAI, UAE +971 4 4 44 3000 OFFICES IN ABU DHABI, DUBAI & LONDON PHOTOGRAPHY PHOTOGRAPHER JULIUS GARCIA VIDEOGRAPHER MUHAMMAD KALEEM VIDEO EDITOR LIJU CHERUVATHUR PRODUCTION & DISTRIBUTION GROUP PRODUCTION AND DISTRIBUTION DIRECTOR KYLE SMITH PRODUCTION MANAGER DENNY KOLLANNOOR PRODUCTION COORDINATOR MANOJ MAHADEVAN SENIOR IMAGE EDITOR EMMALYN ROBLES CIRCULATION CIRCULATION EXECUTIVE RAJESH PILLAI DISTRIBUTION COORDINATOR AVINASH PEREIRA ITP LIVE GENERAL MANAGER AHMAD BASHOUR PUBLISHED BY AND © 2022 ITP MEDIA GROUP FZ-LLC. MEDIA8 CEO MIDDLE EAST SEPTEMBER 2022 – private domestic deposits – over the past three decades. The only decline in regional private sector domestic deposits was as a result of the 1990 Gulf War and, while external funding proved to be less stable, related withdrawals were only temporary. While the nature of the geopolitical threat or shock – for example whether there is a direct physical threat – is clearly important, we believe there are four factors that explain the historical resilience of GCC bank funding. Expatriates dominate the population, but not bank accounts Although foreign residents comprise about 90 percent of the populations in Qatar and Dubai, they represent a far smaller percentage of deposits. In Qatar, for example, only about 20 percent of re- tail deposits are from non-nationals, but expatriates account for about 95 percent of the population. Non-national deposits in GCC bank- ing systems have been limited because migration to the Gulf is spurred by eco- nomic opportunity and most expatriates are typically lower-income earners who send the lion’s share of their wages home to support their families. However, the value of outward remit- tances recorded in the GCC indicates that higher earners have also saved and invested outside of the GCC, since resi- dence is usually tied to employment and domestic investment opportunities have been fairly limited. Behaviourally, we view this type of deposit as likely to be more confidence sensitive and mobile amid geopolitical shocks. Over the past decade, measures to encourage middle- and high-income ex- patriates to maintain their savings locally have increased, through the offering of mortgage products and more recently the relaxation of some residency rules. Since then, regional populations and domestic retail deposits have contin- ued to increase while remittances have remained steady, which could imply expatriates now account for a larger por- tion of domestic deposits. Deposits from GCC citizens will also continue to rise as populations expand, but the previously mentioned factors could mean the pro- portion of potentially more confidence- sensitive domestic deposits is increasing. While the nature of the geopolitical threat or shock is clearly important, we believe there are four factors that explain the historical resilience of GCC bank funding WHY GCC BANKING IS RESILIENT TO GEOPOLITICAL STRESS ECONOMY Global currency. Non-national deposits in GCC banking systems have been limited ulf Cooperation Council (GCC) banking systems have remained remarkably resilient to numerous geopolitical shocks while witnessing almost uninterrupted annual increases of their largest funding item BY BENJAMIN YOUNG, DIRECTOR, S&P GLOBAL RATINGS GSEPTEMBER 2022 CEO MIDDLE EAST 9 ECONOMY Oil revenue has supported public spending and, in turn, long-term corporate development and popula- tion growth Ambitious hydrocarbon-backed eco- nomic development policies have pulled vast amounts of expatriate labour to the region and incentivised corporate expansion, which has supported de- posit growth. Governments have spent heavily on regional infrastructure, which has helped to attract multinational corporates and in turn, a highly-skilled, paid, and bankable workforce, thereby boosting consump- tion. Until recently, regional laws frequently required majority national ownership of foreign companies, enabling the retention and re-investment of cor- porate profits within the country. This had promoted the development of large, often family-owned, holding companies with significant local working capital and treasury operations. Service sector and downstream developments have also promoted the creation of small and midsize enterprises and are help- ing develop a local skill base, attracting companies to the region. Depositors from higher-risk countries add to stability The stability of most GCC banking systems has led them to be seen as safe Stability. Deposits from GCC citizens will continue to rise as populations expand “MOST EXPATRIATES ARE TYPICALLY LOWER-INCOME EARNERS WHO SEND THE LION’S SHARE OF THEIR WAGES HOME” havens for savings, investments, and business development from less stable countries in the wider Middle East and sub-continental Asia. Relative wealth levels between home and host countries are also an impor- tant factor in deposit stability, because 400,000 The new jobs expected to be generated by Saudi Arabia’s Vision 2030 plan – requiring mostly skilled workers needed to build the infrastructure lower-paid migrants tend to be structural remitters, while higher-paid workers might have the flexibility to choose an investment destination and are increas- ingly the target of policies aimed to retain wealth by the host. The growth of the lat- ter could increase deposit instability but can also be an important funding item if linked to longer-term incentives. Wealthy public sectors also support bank deposit stability In the GCC, income from the sale of oil and gas underpins public sector deposit growth, which is generally routed through national oil and gas companies. The sale of these hydrocarbons has generated huge revenue for regional governments, facili- tating the development of some of the world’s largest sovereign wealth funds, which have continued to earn returns during periods of low prices. Public sector entities maintain significant local balances to service their operations but also to demonstrate their support for individual banks – and more generally – financial sector development even through periods of low oil prices, economic stress, and most recently at the start of the pandemic. Finance. In the GCC, income from the sale of oil and gas underpins public sector deposit growth, Young saysNext >