< Previous10 CEO MIDDLE EAST DECEMBER 2023 he GCC region has witnessed a remarkable transformation in recent decades, with its public markets playing a pivotal role in the tra- jectory of its economies. These markets serve as key indicators of financial health and are significant for both large compa- nies and new entrepreneurs alike. If we look at the latest GCC data, in Q3 2023, six IPOs collectively raised USD 419m. Among these listings, five were in Saudi Arabia, while one was in Qatar. Meanwhile, in November 2023, it was announced that the Dubai Taxi Company is set to embark on a signifi- changes. Investors navigate a spectrum of sectors, from energy and real estate to technology and finance. There are a number of notable ex- changes, including Dubai International Financial Centre (DIFC), Dubai Multi Commodities Centre (DMCC), Dubai Pearl Exchange (DPE), Dubai Dia- mond Exchange (DDE), and NASDAQ Dubai. However, the two most notable exchanges are: • Abu Dhabi Securities Exchange (ADX): Established in 2000, ADX was founded with the primary objective of offering investment opportunities in securities to support the national economy. It focuses on fostering invest- ment awareness to channel savings into productive sectors and upholding financial and economic stability. ADX is actively involved in trading equities, funds, and bonds. • Recent ADX developments: Invest- corp Capital, a Bahraini asset manager, successfully generated Dh1.66bn (USD 451m) through the sale of one-third of its shares to the public during its listing on ADX this year. • Dubai Financial Market (DFM): Also founded in 2000, DFM was initially established as a public institution before transforming into a Public Joint Stock Company (PJSC). The sale of 20 percent of DFM’s shares for public subscription was a pioneering initiative in the region, and DFM is the world’s first financial market to adhere to Islamic Sharia rules. It is actively involved in trading equity instruments, debt instruments, exchange-traded funds (ETFs), secu- rities lending and borrowing. • Recent DFM developments: The big headlines are coming from the aforementioned Dubai Taxi Company, which is anticipating its inaugural dividend payout in April 2024 to be at least AED 71mn. Both the Dubai Financial Market and Abu Dhabi Securities Exchange operate under the Securities and Com- modities Authority. What do the latest trends in GCC public markets mean for the economy and entrepreneurs ONLY WAY UP MARKETS BY LORENZO JOORIS, CEO OF CREATIVE ZONE T cant financial initiative, unveiling plans for an IPO that will see the company offering 25 percent of its overall issued share capital. Let’s look at the key GCC exchanges, new moves by state-owned companies, and why the entrepreneur or small busi- ness owner can use this information to take the temperature of the economy to help inform their next move. UAE public markets As a global financial hotspot, the UAE boasts a robust framework for public markets, anchored by prominent ex-MARKETS DECEMBER 2023 CEO MIDDLE EAST 11 UAE state companies IPO The initiation of Dubai’s public of- fering for 10 state-owned companies is anticipated to act as a catalyst for growth, aiming to double the size of its capital market to Dh3tr (US 817bn) and attract foreign investment. So far, the Dubai Water and Electricity Authority (DEWA), has become the largest IPO in Europe and the Middle East since Ara- mco (back in 2019), raising USD 6.1bn. Saudi Arabia’s public markets Saudi Arabia’s public market is a nexus for global investors seeking opportuni- ties in the Middle East’s largest econo- my, offering a sophisticated platform for investment across diverse sectors – from energy and petrochemicals to finance and emerging technologies. The Saudi Arabian public market is Tadawul, with Nomu acting as a paral- lel equity market with lighter listing requirements. • Tadawul: Operating as the stock exchange in Saudi Arabia, Tadawul was established in 2007 as a joint-stock company and is the exclusive entity authorised to function as a securities exchange in the country. It is included in global indices such as MSCI and FTSE and gained international attention with the historic IPO of the world’s largest oil company, Saudi Aramco. Surpass- ing giants like Apple and Google, Saudi Aramco is the world’s most profitable company, raising USD 12bn in 2019. • Recent Tadawul developments: Jamjoom Pharmaceuticals became Saudi Arabia’s most significant IPO of 2023, raising USD 336m. Saudi state-owned company IPO In a strategic move, the country has initiated the process of allowing state-owned companies to conduct IPOs, marking a significant shift in Saudi’s economic landscape. This move opens up new avenues for public investment and aligns with the country’s broader Vision 2030 initiative, fostering transparency and make informed business decisions. • Competitive landscape: Publicly traded companies often set bench- marks for industry standards and best practices. Keeping an eye on the public markets allows entrepreneurs to assess the competitive landscape, identify key players, and understand the strategies employed by successful businesses in their sector. • Access to talent and partnerships: Publicly listed companies often attract top talent and strategic partnerships. Entrepreneurs can leverage this by keeping abreast of developments in the public markets to identify potential collaboration opportunities and talent acquisition strategies that align with their business objectives. • Regulatory changes and compli- ance: Public markets are subject to regulatory changes that can have a cascading effect on businesses. Entre- preneurs who stay informed about these changes can proactively adapt their business strategies to remain compliant and mitigate potential risks. • Investment opportunities: While not going public themselves, entrepre- neurs can explore investment oppor- tunities in publicly traded companies. Understanding the performance of these companies in the public mar- kets can guide strategic investment decisions, allowing entrepreneurs to diversify their portfolios and poten- tially benefit from market trends. Conclusion The public markets in the GCC region, especially in the UAE and Saudi Arabia, serve as barometers for economic trends and opportunities. As state companies explore the public arena and global players make historic moves, the entrepreneurial landscape is evolving. Entrepreneurs can harness the lessons from these market dynamics to chart their courses in a rapidly changing eco- nomic environment, ensuring sustain- able growth and resilience in the face of global challenges. diversification within its economy. Saudia Technic, the aircraft main- tenance subsidiary of the state-owned Saudia Group in Saudi Arabia, aims for a public share sale before the close of the decade and is currently strategising for an initial IPO in 2028 or 2029. Implications for entrepreneurs The performance and level of activity of these exchanges provide insights into the resilience and adaptability of the GCC’s economy as it further seeks to diversify from oil. For entrepreneurs in the GCC, the developments in public markets present challenges and opportunities. The suc- cess stories of companies going public inspire confidence and encourage entrepreneurial endeavours. However, the volatility of markets underscores the importance of adaptability and strategic planning. Entrepreneurs can leverage the insights from market trends to make informed decisions about the sectors they operate in and navigate the evolv- ing economic landscape. Examining the performance of GCC public mar- kets reveals patterns that reflect the broader economic health of the region. Fluctuations in oil prices, geopolitical developments, and global economic conditions all leave their imprint on the markets. The diversification ef- forts of these economies, with a focus on sectors like technology, renewable energy, and tourism, are also reflected in the market dynamics. These are all methods of under- standing the country’s economic position that entrepreneurs and small business owners can leverage as part of their decision-making process. Let’s break them down in more detail: • Market trends and economic indica- tors: Monitoring public markets in the GCC provides valuable insights into broader economic trends. Entrepre- neurs can gain a deeper understanding of market sentiment, economic stability, and potential challenges, helping them 12 CEO MIDDLE EAST DECEMBER 2023 he food and beverage (F&B) industry in the GCC region is a powerhouse that continues to grow and evolve, offering opportuni- ties for entrepreneurs and investors alike. The industry in our region is expected to reach a market value of $94bn this year, with projections sug- gesting it will hit USD 128bn by 2029. In this article, we will explore the current state of the GCC’s F&B industry, its potential trajectory over the coming decade, the drivers behind this growth, and where the key op- portunities lie. gaining prominence, with consumers and businesses alike showing a growing interest in eco-friendly practices and sourcing. Local sourcing and reducing food waste have become important as- pects of the industry, aligning with the wider future plans of GCC countries. • Diverse consumer base: This has led to a demand for a wide range of cuisines and dining experiences, from traditional Arabic food to international fast-food chains. With even greater ease of movement between GCC coun- tries now possible thanks to the Unified Tourist Visa, visitor numbers are likely to increase, with food tourism playing a growing role in that trend. • Digital transformation: The F&B industry in the GCC has witnessed a significant digital transformation, with the proliferation of food delivery apps and online reservations. This trend is expected to continue, making it es- sential for businesses to have a strong online presence. AI-powered menu cus- tomisation, augmented reality dining experiences, and efficient supply chain management will all play a greater role. • Health and wellness: Health-con- scious consumers are driving a shift towards healthier food options. This trend is reflected in the rise of organic and low-fat products and the increas- ing popularity of fitness-focused dining establishments. Entrepreneurial and investment focus Entrepreneurs and investors are pre- sented with a myriad of opportunities within the dynamic landscape of the GCC F&B industry. • Restaurant concepts: The GCC’s diverse population and robust consum- er base create an environment ripe for inventive restaurant concepts. Entre- preneurs can tap into the market by introducing niche and fusion cuisines, catering to the diverse tastes prevalent in the region. • Food tech: Investing in food technology is a promising venture, Is the GCC’s growing food and beverage market an opportunity for entrepreneurs and investors? PLENTY OF APPETITE F&B BY KARL HOUGAARD, FOUNDER & MANAGING PARTNER OF TRADE LICENSE ZONE T What’s driving the GCC F&B industry? The F&B industry in the GCC is driven by a combination of factors, including a growing population, increasing tour- ism, and changing consumer prefer- ences. Currently, it contributes signifi- cantly to the region’s overall economy while aligning with many of the GCC’s overall goals to further diversify from oil-based economies. Here are some of the key drivers: • Sustainability: Sustainability is F&B DECEMBER 2023 CEO MIDDLE EAST 13 encompassing areas such as food de- livery platforms, restaurant manage- ment software, and kitchen automa- tion solutions. As the demand for convenient and tech-savvy solutions continues to rise, entrepreneurs can capitalise on this trend by contribut- ing to the evolution of the industry’s technological landscape. • Sustainability initiatives: Entre- preneurs can carve a niche by focusing on sustainability initiatives within the F&B industry. This includes adopting environmentally friendly practices, such as sourcing organic ingredients and implementing strategies to reduce waste. By aligning with the growing demand for eco-conscious choices, businesses can not only contribute to environmental well-being but also attract a conscientious consumer base. These changes in the F&B sector are seen as part of the GCC’s overall commitment to sustainability, actively contributing to the UN Sustainable Development Goals (UN SDGs) and adhering to the principles of COP28 to be held in Dubai this month. • Supporting services: Opportuni- ties extend beyond the core F&B sector, encompassing supporting services such as logistics, packaging, and food safety. Entrepreneurs and investors can explore these ancillary services, recognising that a well-organised and efficient support system is integral to the overall success of the food and beverage ecosystem. The UAE F&B industry – deep dive The UAE has emerged as a thriving hub for the food and beverage industry, experiencing exponential growth over the past few decades and making it a prominent contributor to the nation’s economy. Tourism plays a significant role in this, as the UAE welcomes mil- lions of visitors each year. The country’s commitment to hosting international events has also accelerated this growth. Dubai, in particular, is renowned for Saudi Arabia F&B industry – deep dive The Saudi Arabia F&B market is valued at USD 28bn in 2023. The industry plays a pivotal role in foster- ing tourism with the country’s rich gastronomic heritage, coupled with the allure of modern culinary experiences, attracting both domestic and interna- tional food enthusiasts. Investment opportunities in Saudi Arabia’s F&B industry extend beyond traditional eateries. The advent of food technology has seen a surge in invest- ments in delivery platforms, restaurant management software, and sustainable practices. The nation’s commitment to Vision 2030, which includes economic diversification and the promotion of a healthier lifestyle, further assists this upward trajectory. Meanwhile, the government is seeking to boost food manufacturing localisation and bring in more female industry leadership as part of their National Industrial Strategy. Saudi Arabia’s F&B market exhibits real innovation, with entrepreneurs exploring various avenues to cater to the diverse preferences of locals and the country’s many visitors. This includes services outside the actual production and serving of food and beverages. One notable area is restaurant design, with creatives in Saudi Arabia pushing the boundaries to bring customers more captivating, innovative F&B spaces. Conclusion The F&B industry in the GCC is set for remarkable growth over the next decade, with diverse opportunities for entrepreneurs and investors. Key trends, such as sustainability initiatives and digital transformation, will shape the industry’s future. While the UAE and Saudi Arabia stand out as major players, other GCC nations will also play a significant role. Across the GCC, entrepreneurs and investors can con- sider not only direct involvement in the industry but also supporting services to capitalise on this flourishing sector. its dining experiences, hosting a wide array of Michelin-starred restaurants, celebrity chefs, and innovative culinary concepts. Within the MENA region, the UAE secured sixth place in total consumer spending on food and non- alcoholic beverages and is the leader in the Middle East’s F&B market. It’s estimated that by the end of this year, F&B revenue for the country will reach USD 38bn. Several planned initiatives and investments in the food sector will help advance food safety, sustainability, and infrastructure in the future. One exam- ple is the new digital platform aimed at promoting investments and opportuni- ties within the UAE’s F&B industry. This initiative is part of the country’s strategic efforts to stimulate growth, attract investments, enhance trade op- portunities, and fulfil its objectives for food security. The platform will link a variety of stakeholders, including inves- tors, manufacturers, trade partners, and financial institutions, and aims to onboard 300 UAE companies by the end of 2023. 14 CEO MIDDLE EAST DECEMBER 2023 his month is the second December I have been living in the UAE and the first in which I will not be travelling anywhere. Last year, I headed to Aus- tralia for a couple of weeks’ holiday to celebrate Christmas with my family and friends. But even as I was leaving Dubai, I realised I might be making a big mistake. I was going to Australia for sunshine, beaches, and great food. Surely, I have all that here? The Covid-19 pandemic was a dev- astating event for the world’s tourism industry, but the recovery has been spectacular and here in the UAE, we have been a huge beneficiary. Many people have realised that if you want sunshine, beaches and fabulous food, there is no need to go as far as Aus- tralia. In the recent UNWTO report on international tourist spending, the UAE ranked fourth with AED224 billion ($61 billion) spent last year alone, after the US, Spain, and the United Kingdom. This economic success did not escape Dubai’s ruler, HH Sheikh Mohammed Bin Rashid Al Maktoum, who reminisced about how his idea of developing tourism in the country had originally been considered a joke. In a Twitter (X) post he said, “On the sidelines of one of the Coopera- tion Council meetings in the 1980s, while the ministers were discussing the crises that the region is going through and the endless challenges... I was in my mid-thirties and I was the youngest person in the session... and the most bored of the endless political talk... I asked to talk, and I suggested the ministers have a differ- ent proposal: Why don’t we develop the Gulf cities into global tourist destinations... and can we start from Dubai? All eyes turned to me... and there was a little silence... before it was interrupted by the laughter of one of the older foreign ministers... then he said: What will tourists find in Dubai and our Gulf cities? The de- The truth is that there is much more to do and see in Dubai than simply go up to the top of the Burj Khalifa – and this is a testament to the emirate’s tourism success story WHY I AM STAYING IN DUBAI FOR MY CHRISTMAS HOLIDAY TOURISM BY PROFESSOR DAME HEATHER J. MCGREGOR, PROVOST AND VICE PRINCIPAL AT HERIOT-WATT UNIVERSITY DUBAI TTOURISM DECEMBER 2023 CEO MIDDLE EAST 15 “THE MANY BEACHES AND BOATS THAT I CAN TRY OUT WHILE ENJOYING THE PERFECT WEATHER. WHY SHOULD I LEAVE DUBAI TO THE TOURISTS? I AM DEFINITELY STAYING RIGHT HERE FOR THE WHOLE MONTH” sert! Sand! Heat and humidity! The rest laughed.” Well, the laughter was a bit pre- mature because tourists are clearly finding a lot in Dubai and the Gulf Cities. In October, HE Abdulla bin Touq Al Marri, minister of economy, said hotels generated AED26 billion ($7.08 billion) in revenues in the first seven months of 2023. There are now 1,224 hotels in the UAE, and they received 16 million guests in the 12 months to July, up more than 15 per- cent annually, according to the UAE state-owned WAM news agency, cit- ing the minister, who also heads the Emirates Tourism Council, the body in charge of drafting the country’s tourism strategy. The UAE is looking to double its GDP to more than $800 billion by 2030, and tourism will play an important part in that growth. Sheikh Mohammed went on in his tweet to say that his elders at the time felt that Dubai had no ‘cul- tural and civilizational heritage and human history’ for people to visit. Again, that is certainly not the case today. While Dubai is renowned for its modernity, it has not forsaken its cultural roots. With its wind-tower architecture, the historic Al Fahidi district provides a nostalgic journey into the city’s past. I will be taking my visiting family in December to visit the Dubai Museum at the Al Fahidi Fort, which tells the story of Dubai’s evolution from a fishing vil- lage to a global metropolis. Having whetted their appetite for Dubai’s culture, I will then take them on an Abra, a small motorised water taxi that ferries passengers between Bur Dubai and Deira on Dubai Creek, so they can experience what it was like in the days before the bridge. And, of course, when we get to Deira, we will visit the spice souk, a fascinating place of exotic smells and views, where traditional bargaining is a long way from the fixed prices of Dubai Mall. good, it is spectacular). Here are some other things to try: The View Palm Jumeirah: A 250-metre view on level 52 of the Palm Tower will give you a panoram- ic, 360-degree view of Palm Jumei- rah, the Arabian Gulf, and beyond. Dubai Miracle Garden: A 72,000 square metres flower garden in the district of Dubailand, the world’s most extensive natural flower garden is known to have over 50 million flow- ers and 250 million plants. Expo City: Created as the modern city of the future, most recently, it was the venue for COP28. The place has been designed for people to come together and learn about various subjects in sustainability, technology, and nature, among others. So I am not going to lack things to do on my staycation, and that is before I add my contribution to the GDP via the wonderful restaurants that we are privileged to have here and the many beaches and boats that I can try out while enjoying the perfect weather. Why should I leave Dubai to the tour- ists? I am definitely staying right here for the whole month. The truth is that there is much more to do and see in Dubai than simply go up to the top of the Burj Khalifa (although if the weather is 16 CEO MIDDLE EAST DECEMBER 2023 n an era of unprecedented and accelerating change, organisations the world over have realised the value of the past. Heritage offers a foundation on which to build the future, and our connec- tion with what came before can un- lock the path to what is yet to come. This ideal informs Saudi Arabia’s ambitious Vision 2030 plan, ground- ed in the Kingdom’s national identity and its people’s shared heritage. Saudi’s appreciation for heritage extends beyond its borders – the Kingdom has committed $25 million Heritage offers a foundation on which to build the future CONSERVING THE PAST TO UNLOCK GROWTH FOR THE FUTURE TOURISM BY MARK DE COCINIS, CEO OF BOUTIQUE GROUP ITOURISM DECEMBER 2023 CEO MIDDLE EAST 17 “SAUDI ARABIA AIMS TO STRENGTHEN ITS NATIONAL IDENTITY AND BOOST INVESTMENT IN ITS DOMESTIC TOURISM OFFERING BY SAFEGUARDING ITS LOCAL HERITAGE AND NATURAL ENVIRONMENT” to UNESCO heritage preservation efforts around the world. At home, there is renewed interest in the places that have contributed to the development of modern-day Saudi Arabia, in line with the Sus- tainable Development Goals’ focus on the economic, social, and environ- mental dimensions that drive sustain- able development. The Kingdom has embarked on a range of urban regeneration and architectural and archaeological conservation projects, including renewal initiatives such as Al-Balad in Jeddah and Ushaiger Village near Riyadh, renovations including Jeddah’s Al-Hanafi Mosque and Al-Duwaihra Mosque in Diriyah, and the conservation of archaeologi- cal sites such as AlUla. Saudi Arabia currently has six UNESCO World Heritage Sites, with plans underway to increase the num- ber of visitable heritage destinations from 241 to 447. This approach serves to revitalise the national identity while also en- hancing the Kingdom’s tourism offer. It adds to job creation efforts, while the local communities also benefit from the enhanced infrastructure. Prioritising these socio-cultural, socio-economic and ecologic princi- ples, would enable Saudi Arabia to extend its exposure in the cultural and creative industries, one of the fastest- growing sectors in the world with an estimated annual worth of $4.3 tril- lion. The cultural sector alone is esti- mated to contribute 6.1 percent to the global economy every year, generating revenues of $2,250 billion. Crucial to the Kingdom’s demographics, the sector provides nearly 30 million jobs worldwide, and employs more people aged 15 to 29 than any other. Against the backdrop of this global direction, it is important for private and public stakeholders to collaborate to drive inclusive economic growth. Projects such as the restoration of Riyadh’s Red Palace become invalu- destination with more than 70 keys, 26 deluxe rooms, 44 luxury suites, a royal suite and public event spaces, eight spa suites, and five high-end food and beverages outlets. The project is expected to contrib- ute to increased heritage tourism, a key tenet of Saudi Vision 2030, while also creating job opportunities and supporting the development of talent in the hospitality industry. In addition to supporting the local economy, the community should also benefit from increased property values, a conse- quence of rejuvenation projects as revitalised neighbourhoods go hand- in-hand with economic growth. Saudi Arabia aims to strengthen its national identity and boost invest- ment in its domestic tourism offering by safeguarding its local heritage and natural environment. This approach is expected to achieve its goal of welcoming over 100 million tourists from inside the Kingdom and around the world by the end of the decade, establishing KSA as a major global tourist destination. The Kingdom’s cultural assets hold the key to achieving this goal. Its perspective of keeping history alive through engaging with it plays an important role in the develop- ment of its cultural and creative industries, and driving growth as it prepares for the future. able. Constructed in the early 1940s by King Abdulaziz Al Saud as the home and administrative centre for his son, King Saud bin Abdulaziz Al Saud, the Red Palace was the region’s first concrete building, marking a sig- nificant milestone in Saudi Arabia’s architectural history. This site will once again shine as one of the jewels in the Kingdom’s crown as it is being rejuvenated as an ultra-luxurious boutique hotel. Boutique Group, a subsidiary of the Public Investment Fund, is work- ing with award-winning international architecture firm Aedas and interior designer Tristan Auer to transform the site into a superfluously luxurious 18 CEO MIDDLE EAST DECEMBER 2023 oday, many organisations are prioritising sustain- ability and associated practices across their supply chains. As global value chains (GVCs) are reconfigured to focus more on re- siliency, agility, and sustainability, companies in the Middle East have an opportunity to leverage emerging competitive advantages and gener- ate new economic growth. To achieve this, businesses need to introduce mechanisms to ensure their suppliers understand and adhere to sound behaviours and business prac- tices. They can do this by asking sup- pliers to sign a code of conduct – ei- ther their own or one based on globally recognised agreements such as the Ten Principles of the UN Global Compact – that outlines specific standards they are then obligated to meet. Businesses need to introduce mechanisms to ensure their suppliers understand and adhere to sound behaviours and business practices WHERE THE BUCK STOPS: PRIORITISING SUSTAINABILITY AND SUPPLY CHAIN AUDITS FOR BUSINESS SUCCESS SUSTAINABILTY BY SHEETAL RAO, DISTRIBUTION MANAGER AT AXIS COMMUNICATIONS TSUSTAINABILTY DECEMBER 2023 CEO MIDDLE EAST 19 “MAKING THE WORLD A SMARTER, SAFER, AND MORE SUSTAINABLE PLACE SHOULD BE THE DRIVING AMBITION OF ANY ORGANISATION” A is for Audit While signing a code of conduct is a good start, companies need a mecha- nism by which they can ensure their partners and suppliers are meeting their requirements. Sustainability focuses and practices vary from busi- ness to business, and from country to country. As a result, suppliers often need to change or alter their business practices to adhere to the company’s own standards. Furthermore, organi- sations should welcome the chance to share best practices and support their suppliers through any transition. This is where supplier audits come into play. A critical process, audits should be undertaken regularly. Despite the perception of audits be- ing onerous, they should ideally be collaborative in their execution, and focus on helping the supplier improve their business processes. It can be rigorous, but it can result in a posi- tive experience for suppliers and help organisations meet their standards for everything from environmental performance and labour practices to business ethics and health and safety. On-site vs virtual While the COVID-19 pandemic con- tinues to recede into distant memory, it can still be difficult for companies to travel and conduct supplier audits on-site and face-to-face. A working solution is to take a hybrid approach. Companies can conduct audits online, on-site, or in a combination of the two environments to ensure due diligence and process is properly followed. While on-site audits for new sup- pliers are always the best way to go, remote or hybrid audits are appro- priate in the context of longstand- ing or well-established business relationships. Reviewing a supplier’s documentation virtually can be as comprehensive as when it’s done in person, but it saves the organisation time and resources, and helps lower the carbon footprint. In the event of an on-site audit, companies should commit the ap- propriate amount of time to view the suppliers’ facilities. They should provide suppliers with a detailed agenda of what they want to run through and ask them to complete a self-assessment form before the scheduled audit. An on-site audit also allows representatives to meet key personnel, including those from management, health and safety, hu- man resources, quality control, and environmental departments. What comes after Once an audit has been completed, companies have insight and findings at their disposal that highlight any improvements that can be made with their suppliers. A turnaround period needs to be stipulated along with follow-up assessment and potential further site visits. Importantly, there should always be an element of ethics in the audit- ing process. In ensuring responsible and sustainable business conduct, the organisation has a responsibility to maintain strong ethical standards, executing decisions and engaging with suppliers in a transparent, cred- ible, and consistent manner. Making the world a smarter, safer, and more sustainable place should be the driving ambition of any organisa- tion. That ambition extends to those partnering with the organisation. Indeed, companies in the Middle East are transitioning from a “start- up” mode to a more sustainable “scale-up” mode when it comes to environmental, social and governance (ESG) – a trend driven by climate risk awareness and regulatory com- pliance. But sustainability is not just about taking care of the environment and pleasing regulators. It means taking responsibility for the organisa- tion’s entire supply chain, building resilience, and working together to reach common goals. There are limitations to remote audits, such as the inability to walk through a factory floor and view production and manufacturing processes. There is also the potential for miscommunication during digital correspondence. To avoid these scenarios, companies should conduct risk evaluations prior to audits to determine what approach they ideally need to take.Next >