< PreviousTECHNOLOGY 40 CEO MIDDLE EAST DECEMBER 2023 “THE WORLD IS TAKING A COLLECTIVE DEEP BREATH AND TURNING TO TECHNOLOGICAL INNOVATION TO BLOW THE WINDS OF CHANGE” Kit Colbert and his team (OCTO), it’s where engineers at all levels within VMware come together to spitball ideas. Think of Dragon’s Den at scale meets a science fair, with individuals or teams pitching their great idea, be it a new app, a new work-around, an enhanced service, a better way to build products or the next new AI invention. In fact, throughout the year any- one of our 38,000 employees can sub- mit an idea to be showcased at the event and considered for adoption by the company. Borathon, for example, is a type of hackathon fondly named by our engineers after one of the original code repositories, which was named after islands: Bora Bora. This type of session enables our people to collaborate around a theme on Flings, features, proof-of-concepts, hacks, or new workflows, as well as build a culture of creativity and enthusi- asm for our products. Some of the greatest innovations in our company history have come from these types of engagements and little wonder that VMware itself has been the source of more than 5,500 patents over the years. As a market disruptor, many of VMware’s products have originated from this collaborative culture. This is proof if it were needed, that in a world of connectivity, noth- ing stands alone. Quite the opposite, in fact. By creating an environment for inspiration to thrive, voices can be heard, and ideas brought to life. Whether it is from customer requests, university partnerships or new busi- ness units specifically designed to incubate, capturing, and acting on brilliant ideas has become a major metric for business success. Turning ideas into reality - focusing on out- comes - has been a transformational force here. Necessity is the mother of invention A good example, which permeates every sector today, is what we’re seeing in sustainability. We’re all aware of the need to act for the good of our planet and time is very much of the essence. Never has the adage, ‘necessity is the mother of invention’ been more apt. The world is taking a collective deep breath and turning to technological innovation to blow the winds of change. We should also not forget that governments are imposing legislation and regulation on sustain- ability so even for businesses that don’t yet care about it, they are soon going to have to. Electric vehicles grab the head- lines here but there is some incredible stuff going on if you look beyond the batteries. For example, air pollution can now be transformed into jewel- lery, windows can generate solar en- ergy and automatic bins are (slowly) cleaning the oceans. The point being that building more sustainable products and creating sustainable operations is at the heart of innova- tion today and this must lead to an 42KM MARATHON • 10KM ROAD RACE • 4KM FUN RUN Sunday 7th January Register now at dubaimarathon.org Run for the chance to win an EXEED RX *T&Cs ApplyTECHNOLOGY 42 CEO MIDDLE EAST DECEMBER 2023 outcome and output because it has to. Sustainability has been a driving force in our innovation for many years here at VMware, where our stance on ESG and our Force for Good reports stand as credible outcomes of a cul- ture that is built around it. It must bring change. The chal- lenge organisations face is where the buck stops. What and who is driving real change and innova- tion because if those two things are not connected then failure is more likely than success. Where is it owned within your org? Is that high enough? Is it fundamental to your culture or just a box-ticking exercise? working with customers directly on real outcomes and driving change and innovation back into the heart of our R&D. That should not be a fight for them, it should be supported, encour- aged, and essentially expected. Nobody needs to reinvent the wheel but simply by being open, sharing ideas and contributing to the debate, influence can be exerted, and progress made. Innovation is all about culture Culture is constantly evolving; both changing with and being enabled by technology. We should be excited by that, embracing it and rushing with open arms to meet it. Innovation for everyone It’s clear today that innovation is not decided by a small handful of people but by everyone. Seniority and expe- rience do not automatically guaran- tee a seat at the ideas table and the fact that companies are waking up to the fact that ideas can come from anywhere is a good thing. Research and Development is the hidden jewel, the DNA of a company’s very exist- ence, but it is not a job for one person or a team - its power is in the coming together of ideas, from the graduate to the seasoned architect to the ex- ecutive assistant to the CEO. Some of our best ideas have come from our technical folks in our Global Field, HONOURING GREATNESS Thursday 25 th January 2024 Atlantis the Royal, Dubai, UAE SALES ENQUIRIES Andy Sulahian Group Commercial Director Tel: +971 4 444 3597 GSM: +971 52 384 6238 E-mail: andy.sulahian@itp.com EVENT ENQUIRIES Daniel Fewtrell Director of Awards & Marketing Tel: +971 4 444 3684 GSM: +971 50 276 5706 E-mail: daniel.fewtrell@itp.com Scan to visit website ACHIEVEMENT AWARDS 2024 Real Estate Partner 44 CEO MIDDLE EAST DECEMBER 2023 At the upcoming global stocktake at COP28, the UN’s annual climate change confer- ence, the world’s attention will focus on a single goal: we have just six years to reduce carbon emission emissions by 43 percent. To keep global warming to goals. If we are to step up and create the world that we can thrive in, investing in the planet is the best way to secure both the future of our businesses and the welfare of life on Earth. And the time is now. We already have the tools available to drive sustainable outcomes and sup- port long-term positive change. Digital technologies stand alongside strategic approaches in embedding sustainability in industrial value chains. In fact, three out of four executives (76 percent) believe emerging technolo- gies can play a critical role in reducing their organisation’s carbon emissions, according to a 2023 EY survey. What’s more? What’s good for the planet is good for business. Make no mistake. Investing in digital technologies offers the opportunity to reap business dividends along with driving positive sustainability outcomes. We see time and again that companies that prioritise sustainability outperform those that don’t. Capgemini research shows that from 2020 to 2021, sustainability frontrunners – the top 11 percent of companies surveyed – were realis- ing 83 percent higher revenue per employee compared to the average. Meanwhile, more than a quarter (26 percent) of the least advanced were 13 percent below the average. Digitalisation is already helping ac- celerate the decarbonisation of industry. Technologies based on smart data, ma- chine learning, artificial intelligence and predictive maintenance are transform- ing the industrial sector and sparking ingenuity by connecting people with trusted information and insights to drive responsible use of the world’s resources. Companies are seeing that invest- ing in accelerating net-zero targets and environmental priorities can simultaneously improve business outcomes and boost their bottom line. The benefits include: Digital technologies can drive industrial innovation to bring about a more equitable future. That’s enough reason to act now, says Lisa Wee, Global Head of Sustainability, AVEVA WHY NET-ZERO CAN MEAN NET PROFIT TECHNOLOGY I 1.5°C above pre-industrial levels, total emissions must peak in 2025, and then drop by nearly half by 2030, accord- ing to the Intergovernmental Panel on Climate Change. There is an urgent need for quick and decisive action towards our net-zero TECHNOLOGY DECEMBER 2023CEOMIDDLE EAST45 • Improved emissions modelling together with quicker decisions: With a single integrated software suite incorporating CO2 modelling capabili- ties, global energy leader BP can make quicker and faster decisions. Analysts can now see compiled operational data and make informed decision in just three minutes rather than seven hours. At the same time, improved CO2 emis- sions modelling capabilities help plan, test and evaluate strategies for cutting carbon emissions. • Driving energy efficiency while saving millions: The University of California, Davis uses a cloud-based data management system to track and bring down their emissions. By collecting real-time data on its en- ergy usage, UC Davis is on track to be carbon neutral by 2025. On just one front – shifting from traditional hot water systems to low-temperature hot water heating – its campus will save an estimated USD$197 million over 60 years. This operational improve- ment would not have been possible had data from across the campus not been centralised for analysis. • Conserving water by innovating on the go: The water sector accounts for 7 percent of global energy con- sumption and generates 3-10 percent of total greenhouse gas emissions. In Gwinnett County, Georgia, the De- partment of Water Resources brought together one platform, data from two water production plants, 8,000+ miles of distribution and transmis- sion networks, hundreds of water collection points, and three water reclamation facilities so it could be viewed in one window on any device, on-site or offsite. One optimisation alone has led to 120 million gallons of water and US $35,000 saved per year. Net-zero can deliver net profits. It is results like these, when scaled up, that will help us achieve the International Energy Agency’s (IEA) efficiency and decarbonisation with- out sacrificing security, reliability or affordability. Those are the sort of goals almost nine out of 10 (87 percent) interna- tional business executives have an eye on as they increase investment in industrial digital solutions this year. In a recent AVEVA survey, senior leaders at industrial companies across the globe with annual rev- enues of over $50 million, cited their main priority is intelligent data that can help them tackle geopolitical and economic challenges as well as grow- ing climate change. In real-time data sharing communities, everybody wins. As the next step in harnessing technology’s potential, connected industrial ecosystems can drive the exponential impact we need to secure the triple bottom line: profit, people and planet. It becomes clearer with each day that extreme weather events are reflecting the impact of our actions. The UN forecasts that avoiding the worst impacts of human-caused climate change could require $4.3 trillion a year by 2030, with costs only likely to escalate as warming continues. Clearly, inaction is no longer an option. We may not be able to reverse existing climatic conditions, but we can mitigate future damage while helping repair the planet, adapting to life in a warming world, and mak- ing sure communities everywhere continue to have the power, water and food they need. With discussions at COP28 – focused on the urgent need to close the sustainability gap over the next few years, we must step up to invest in the green economy. Doing so is the only way to create a thriving future for everyone. We owe that to not only ourselves, but also to the next generation. net-zero trajectories faster. That’s why the next step on the road to decarbonisation requires expanding the gains from digital technologies within an organisation, across the entire value chain to include external stakeholders. Businesses that are linked to each other support mutual collaboration, innovation and critical thinking. By pooling enterprise data internally and externally on a single cloud- based platform, value chain partners can realise unprecedented economies, synergies and benefits for their own organisations and for society. In California, for example, en- ergy consulting firm ZGlobal and its business partner, Silicon Val- ley Clean Energy, share real-time and historical operations data in a secure, connected community. A ho- listic view of the entire value chain has enhanced system-wide security and energy traceability. All of this while saving thousands of dollars on power purchases and with future projects in the pipeline, accelerating North America’s low-carbon energy transition. This kind of connected intelligent network – also known as a connected industrial ecosystem – helps foster continued innovation, drive systemic 46 CEO MIDDLE EAST DECEMBER 2023 The past: Early stages of e-commerce in the UAE E-commerce in the UAE had humble beginnings. In the early 2000s, a few on- line marketplaces emerged, catering pri- marily to expatriates and tourists. These platforms allowed users to purchase electronics, fashion items, and other products not easily available in physical stores. Payment gateways were a major challenge, as many consumers were still hesitant about online transactions. In 2013, the multi-billion-dollar Dubai Smart City project aimed to transform Dubai into a global tech and e-commerce hub. This included the de- velopment of robust online infrastruc- ture, secure payment gateways, and digital payment options like Apple Pay and Google Pay. These developments not only improved the convenience of online shopping but also enhanced trust among consumers. As of 2015, the UAE government’s stated aim has been to make the vast majority of its services available on- line to further boost the UAE’s online ecosystem, of which e-commerce plays a central role. By 2017, the number of UAE consum- ers who preferred shopping online due to convenience and competitive pricing was starting to soar, but what took it over the top was the COVID-19 pandemic which drove a remarkable 53 percent increase in e-commerce sales in 2020. The present – the e-commerce landscape today Post-Covid, the growth of e-com- merce in the UAE remains closely tied to changing consumer behaviour and expectations. E-commerce platforms continue to meet these demands, offering a vast array of products, often at lower prices compared to traditional brick-and-mortar stores. The numbers back this up: accord- ing to one report, 96 percent of UAE consumers now shop e-commerce. The future – where does UAE Government support, changing consumer behaviour, and technological advancements have paved the way for startups and SMEs to succeed in this dynamic sector THE EVOLUTION OF E-COMMERCE IN THE UAE AND OPPORTUNITIES AVAILABLE FOR STARTUPS AND SMES BY ANAS HIJJAWI, CHIEF COMMERCIAL OFFICER AT RAKEZ E -commerce, the buying and selling of goods and services online, has witnessed remark- able growth globally, and the UAE is no exception. This evolution has created a fertile ground for pureplay e-commerce, infrastructure companies as well as traditional companies looking to move more business online. E-commerce’s contribution to the UAE’s GDP is estimated to be around 2.4 percent, reflecting its growing importance to the economy. In this article, we will explore the journey of e-commerce in the UAE – the past, the present, the future – and what opportunities lie for startups and SMEs. E-COMMERCEE-COMMERCE DECEMBER 2023 CEO MIDDLE EAST 47 e-commerce go from here? Today, the GCC e-commerce market is valued at USD 39bn, with projections to reach USD 50bn by 2025.For the UAE specifically, revenue is projected to show an annual growth rate (CAGR 2023-2027) of 7.65 percent, resulting in a projected market volume of USD 13.7bn by 2027. So clearly the e-commerce land- scape in the UAE offers promising opportunities, but businesses should also be aware of challenges such as in- tense competition, the need for robust cybersecurity, and evolving consumer preferences. Additionally, SMEs and startups should ensure compliance with local regulations and customs. Pureplay, infrastructure, or traditional: Where are the opportunities? Let’s now look at the opportunities in UAE e-commerce for pureplay com- panies, infrastructure companies, and traditional businesses moving into e-commerce. 1. Pureplay e-commerce companies Pureplay e-commerce companies focus exclusively on online retail and have surged ahead in the Middle East by capturing 90 percent of total online sales. This is a trend seen in most developing markets where the existing physical retail infrastructure is unable to meet the demands of the new-age, connected consumer. In the UAE, there are a number of notable opportunities for pureplay companies: • Niche market domination: Identify- ing niche markets or product categories not fully explored by larger competi- tors can lead to success. Specialising in unique or culturally relevant products can attract a loyal customer base. • Cross-border e-commerce: Lever- aging the UAE’s strategic location, pure- play e-commerce companies can engage in cross-border trade, importing goods from various countries and offering them in online transactions, cybersecurity solutions to protect customer data and ensure secure online shopping experi- ences are critical. • Payment solutions: Develop- ing innovative payment solutions or facilitating digital payments can be a lucrative niche within the e-commerce infrastructure sector. 3. Traditional companies shifting to e-commerce Many traditional companies across the globe have moved into e-commerce. This transition aligns with the changing consumer preferences and the demand for online shopping in the UAE. Traditional businesses in the UAE are adapting to the e-commerce landscape in various ways: • Online presence: Traditional retail- ers are establishing an online presence, including websites and e-commerce platforms, to tap into the growing online customer base. • Omni-channel strategies: Many traditional companies are adopting omni-channel retail strategies, offering customers the option to shop online and in physical stores, providing a seamless shopping experience. • Digital marketing: Traditional com- panies are investing in digital marketing strategies, including social media adver- tising and search engine optimisation, to increase their online visibility. • Marketplace presence: Some tra- ditional companies choose to sell their products through established e-com- merce marketplaces to reach a broader audience without building a dedicated e-commerce platform. • Localisation: Understanding local consumer preferences and adapting product offerings to suit the UAE market is essential for traditional companies shifting to e-commerce. • Customer experience enhancement: Improving online customer service, product descriptions, and user experi- ence on their e-commerce platforms is a priority for traditional companies. to the local and regional market. • Enhanced customer experience: Investment in user-friendly websites, mobile apps, and advanced e-commerce technologies can provide a superior customer experience, setting a pureplay e-commerce business apart. • Marketplace expansion: Partnering with popular e-commerce marketplaces like Amazon.ae and noon.com can expand a pureplay company’s reach and tap into a broader customer base. 2. Infrastructure companies E-commerce infrastructure companies provide the hardware and software, as well as the necessary networking and other services that support an e-com- merce company’s operations. This might include platforms to set up and manage online stores, website building, payment processing, inventory management, marketing tools, and much more. Companies providing infrastructure and support services for e-commerce ventures have several lucrative opportu- nities in the UAE: • E-commerce platforms and soft- ware solutions: Developing and offering robust e-commerce platforms, content management systems, and payment gateways to streamline online businesses is in high demand. • Logistics and delivery services: The growing e-commerce sector requires efficient logistics solutions, including last-mile delivery services, warehousing, and supply chain management. • Cybersecurity: With the increase 48 CEO MIDDLE EAST DECEMBER 2023 here are two defining fea- tures of the web3 economy – the first, that it functions outside the bounds of centralised financial frameworks or politico- economic borders, and the second, that the underpinning technological advances generally outpace the law. While these features are why web3 technologies are revolutionary eco- nomic enablers, they also expose the nascent web3 economy to financial risks. So, as web3 becomes the inevi- table future, global as well as regional cooperation in the regulation of the web3 world becomes more important than ever before. With the shifting sands of the web3 diplomacy, the role of the UAE as a powerhouse at the forefront of web3 innovation, cannot be ignored. This is evidenced by the fact that earlier this year, the UAE was called to join the BRICS, starting in 2024. Shortly after, the UAE also participated in this year’s G20 summit in New Delhi, India. While the BRICS countries represent a quarter of the world’s GDP, and a population of over 3 bil- lion people, the G20 accounts for 60 percent of the global population and 80 percent of global GDP. But why are these groupings sig- nificant for the UAE, and why should regulatory bodies, financial big-wigs, large technology companies, innova- tors and digital-first web3 start-ups in the region care? In a nutshell, these groupings set the tone for how businesses directly transact with each other, as well as how governments regulate and themselves leverage crypto technologies for payments. The policy makers at G20 and BRICS touch upon both aspects. G20 – harmonising crypto regulation To start with, in September 2023, the G20 leaders’ declaration at the sum- mit in Delhi (Delhi Declaration) stat- ed that the G20 will closely monitor The role of the UAE as a powerhouse at the forefront of web3 innovation, cannot be ignored, write Ankita Dhawan (Senior Associate – Designate) & Tanvi Ahuja (Associate) at KARM Legal Consultants THE SHIFTING SANDS OF WEB3 DIPLOMACY AND THE UAE REGULATORY OASIS TECHNOLOGY TTECHNOLOGY DECEMBER 2023 CEO MIDDLE EAST 49 the risks of the fast-paced develop- ments in the crypto asset ecosystem worldwide and will track global regu- latory and supervisory approaches to crypto assets. The declaration called for harmonised regulation, supervi- sion and oversight of crypto- markets and of global stablecoin arrangements globally to avoid regulatory arbitrage. Notably, the G20 leaders also welcomed the “IMF-FSB Synthesis Paper on Crypto-Assets” in the Delhi Declaration. The paper provides a comprehensive overview of the full range of risks of the fast emerging and widely adopted web3techonologies. It also delves into specific concerns for emerging markets and the resulting on- going global implementation of FATF standards to address money laundering and terrorism financing risks. Another key highlight of the Delhi Declaration is the G20’s call for the swift implementation of the Crypto- Asset Reporting Framework (CARF) and amendments to the ‘Common Reporting Standard’ . CARF provides for reporting of tax information on crypto transactions in a standardised manner, with the aim of automatically exchanging such information with the jurisdictions of residence of the taxpayers, annually. The G20’s recommendations to regulate the crypto-centric economy is significant because it shows that the world’s leading economies are commit- ted making the crypto-ecosystem more secure, stable and predictable. The UAE’s existing comprehen- sive and forward-looking regulatory framework offers a noteworthy model for the G20 countries. The UAE has a bespoke virtual assets regulator, along with two financial free-zones with dedicated virtual assets regulations. These regulators, along with the UAE’s central bank and securities regulator, continue to proactively update their framework, to strike a balance between regulation and innovation, to boost transparency and financial stability. can also aid in financial inclusion and financial stability – both goals which each of the BRICS nations already want to achieve. The sheer magnitude of the techni- cal, regulatory and logistical hurdles in this proposal imply that there is a long way to go for this to become a reality. There are also questions regarding the fundamental need for this currency in the BRICS countries, to begin with. Yet, strong foundations are being laid to a web3-first economy. Several BRICS members are introducing digital sovereign cur- rency pilots. There have also been talks among the BRICS members of bilaterally aligning the development of their central banks digitally, to promote currency interoperability and economic integration. For example, China, Hong Kong, Thailand and the UAE participated in the MBridge test developed by the Bank of Internation- al Settlements (BIS) for cross border payments using digital currencies backed the Central Banks of these countries. India and the UAE are also jointly conducting proof-of-concept and pilots of bilateral CBDC bridges to facilitate cross-border transactions for remittances and trade. India and Russia are also holding usage trials of their respective national currencies in digital form, which will be backed by, and managed by their respective Central Banks using blockchain tech- nology to facilitate direct transactions through a decentralised database. Together, policy conversations led by multilateral bodies can be crucial in the creation of enabling harmonised regulatory frameworks for international web3 businesses at a micro level, and encouraging the adoption of crypto technol- ogy by governments at macro level. And, the voice of the UAE cannot be ignored in this regard. The UAE can play the role of a catalyst in bringing about the web3 ecosystem’s big bang among emerging economies. In addition to the robust regulato- ry measures in place to boost and sta- bilise the digital asset economy in the region, the UAE has also announced the world’s first economic free zone dedicated to digital asset companies. While the world saw the crypto winter of 2022 as a deterrent, the UAE held onto its unwavering faith in the potential of decentralised blockchain based economies. Unsurprisingly, the UAE’s enabling, yet secure economic environment and has cemented its position as the global hub for leading web3 businesses. BRICS and digital currencies With regulation of crypto-centric parallel economies being the underly- ing theme, a digital, crypto-enabled BRICS currency has reportedly been in the works. It has been called the R5 project – short for the Brazilian Real, Russian Ruble, Indian Rupee, Chinese Renminbi and South African Rand. While the R5 was not officially discussed at the BRICS 2023 summit in Johannesburg, even on a principle level, the developments on this front will be interesting to watch, especially with the admission of new members, including the UAE, to BRICS. Crypto technologies, given their decentralised and immutable nature, offer a great opportunity to the BRICS countries. They can help make the inter-BRICS financial systems less susceptible to fraud and counterfeiting. In the long run, they Next >