LEGACY JULY 2023 LW Design Group – A legacy of vision, collaboration, and global design excellence Jesper Godsk, Founder and CEO of LW Design Group, on creating designs that redefine the industry FUTURE OF BIM & DIGITAL TWINS STARTS HERE! Event theme is Digital Transformation: The Key to Industry 4.0 and includes a 2-day conference plus workshop on latest developments for digital construction, Building Information Modelling (BIM), Digital Twins, GIS, 3D, virtual and remote scanning tools, AR / VR, AI, safety-focused wearables, proptech, related platforms, and technologies. Presentations focus on the role of digital construction technology from project concept and design, project management, to full lifecycle asset management. For further details visit: www.bimanddigitaltwin.com/India For further details including registration event sponsorship and exhibitor opportunities call: Anthony Sprange Director of Conferences at ITP Media Group T: +971 (0)4 444 3186 M: +971 (0)58 598 9062 E: anthony.sprange@itp.com 11 & 12 OCTOBER 2023, BANGALORE, INDIA Scan the QR code to learn more about the event and register Keynote presentations will be given by organizations at the forefront of India’s construction industry, plus, international organizations that are leaders in smart sustainable construction and built asset management. Keynote speakers include: DR SABIH KHISAF Committee Chairman, Institution of Civil Engineers (ICE), & Head of Engineering, HYPERLOOP CASEY RUTLAND Vice Chair, nima & Chair, buildingSMART UK & Ireland PRAKASH SINGHANI Digital Construction Thought Leader, Co-Founder & CEO, Navatech Group PRAVIN HUNGUND Chief Technology Offi cer, Metaz Digital, and Chapter President VR/AR association SANDEEP DESAI EVP – Information and Business Process, AFCONS Infrastructure MEDIA PARTNER DIGITAL CONSTRUCTION INDIA CONFERENCE & EXPO 2023 ENABLING DIGITAL TRANSFORMATION SUPPORTING PARTNERSOFFICIAL SUPPORTER POWERED BYCONTENTS JULY 2023CEOMIDDLE EAST — LEGACY EDITION3 LEGACY EDITION # JULY 2023 LEGACY JULY 2023 LW Design Group – A legacy of vision, collaboration, and global design excellence Jesper Godsk, Founder and CEO of LW Design Group, on creating designs that redefine the industry 06 EDITOR’S LETTER 06 COMMENT Faster inflation has prompted many global central banks to reverse years of loose monetary policies, leading to significant strains on the global banking sector, believes Jorge Camarate, partner, and Mathias Massow, principal, with Strategy & Middle East 08 REAL ESTATE Dubai real estate ‘a good deal’ with ‘reasonable’ prices, says Binghatti chief Muhammad Binghatti 12 SUSTAINABILITY Inclusivity stands as a crucial pillar of ESG and community engagement, says Frank Janssens, Vice President, KROHNE Oil and Gas – Middle East and Africa 16 COVER STORY LW Design Group: How Jesper Godsk, founder and CEO of LW Design Group, is playing an essential role in carrying forward an extraordinary legacy 30 TALENT LinkedIn, to mark its 20th anniversary, has shared exclusive insights regarding the ever-dynamic job industry, hiring insights and trends 16 0812 30EDITOR’S LETTER 4 CEO MIDDLE EAST — LEGACY EDITION JULY 2023 narrative that resonates with our shared pursuit of progress. On page 8, we embark on a reflective journey, posing a difficult question to leaders: What regrets would they have if confronted with imminent death? This introspective exploration offers profound lessons and prompts us to reassess our priorities, reminding us of the significance of purpose and fulfilment in our professional endeavours. In the realm of cryptocurrency, page 24 delves into the implications of the US SEC crackdown. We navigate the intricacies of this regulatory landscape, examining the potential impact on the crypto industry and the future course it might take. Stay informed with our comprehensive analysis of this rapidly evolving domain. Turning our attention to the fascinating concept of the metaverse, we explore how it is set to revolutionise real estate on page 40. Discover the transformative potential of this emerging technology and gain valuable insights into how it could reshape the way we interact with physical spaces. We also address a pertinent concern for startups on page 42: the UAE venture capital slowdown. As we evaluate the current economic climate and its implications, we analyse whether startups should be apprehensive and provide guidance to navigate this evolving landscape. Gain the knowledge you need to make informed decisions in uncertain times. Additionally, we are pleased to include a special issue, CEO Middle East Legacy Edition, which accompanies this edition. This unique publication reflects not only on the past but also looks ahead to the legacy we leave behind. Featuring Jesper Godsk, CEO and founder of LW Design Group, we explore their remarkable journey of vision, collaboration, and global design excellence. Further on this special issue, we also examine the importance of safeguarding assets for expatriates with a feature starting on page 32. As an expatriate navigating the dynamic business landscape of the UAE, protecting your investments, properties, and wealth becomes paramount and we hope you find this article useful to your long-term financial wellbeing. With that I’ll let you get to reading. Until next time. Share your views on thought leadership and innovation by getting in touch: matthew.amlot@itp.com QUESTIONS? COMMENTS? MATTHEW AMLÔT Managing Editor @MatthewAmlot COLLABORATIVE REFLECTION H ello and welcome to the latest edition of CEO Middle East, where we focus on the topics and discussions shaping the business landscape of the region. In this issue, we have curated a range of thought-provoking articles that shed light on significant industry developments and offer valuable perspectives. Our cover story features Kamal Ballout, the Head of Nokia Enterprise for China, India, Middle East and Africa. Join us on page 18 as Ballout shares his insights on the paramount importance of collaboration in tackling the world’s challenges. His experience and vision provide a compelling JULY 2023CEO MIDDLE EAST — LEGACY EDITION 5 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 JUNE 2023 #193 Geoffrey Alphonso, the CEO of Alef Education, shares his views on the future of digital education THE JOURNEY TO DIGITAL EDUCATION TRANSFORMATION UAE AED 20 KSA SAR 20 BAHRAIN BHD 2 KUWAIT KWD 2 OMAN OMR 2 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. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. 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MEDIA MAY 2023 #192 UAEAED 20 KSASAR 20 BAHRAINBHD 2 KUWAITKWD 2 OMANOMR 2 REACHING NEW HEIGHTS Sunil Kaushal , CEO, Africa and Middle East Region at Standard Chartered, reveals his strategy for staying ahead6 CEO MIDDLE EAST – LEGACY EDITION JULY 2023 s the global banking sector comes under increasing stress, financial institutions in Saudi Arabia must take proactive measures as they evaluate their vul- nerabilities and mitigate risk. Saudi banks should secure deposits, diversi- fy their income streams, improve their profitability, and reduce their asset- liability mismatch to strengthen their position, and be ready for growth. Faster inflation has prompted many global central banks to reverse years of loose monetary policies, leading to significant strains on the global banking sector. Several banks in the U.S and E.U. have either failed or needed to be rescued (e.g., Silicon Valley Bank or Credit Suisse). The stress on the banking sector shows no sign of abating. J.P. Morgan pur- chased First Republic Bank at the beginning of May after customers withdrew approximately $100 billion in deposits. Although the Saudi economy is performing well, its financial insti- tutions are not immune to global financial problems. The Saudi Central Bank must follow the U.S. Federal Reserve’s approach to monetary tightening because the Saudi riyal is pegged to the U.S. dollar. Similarly, while Saudi banks face no immediate risk from their investment portfolios due to unrealized losses, as was the case for some U.S. banks, they still have three issues. First, the average loan-to-deposit ratio now exceeds 100% in the over- all Saudi banking market. That is because deposits have grown slower than loans. The result is increasing competition for deposits among Sau- di banks. That need for more deposits will only intensify given that banks need to extend finance for planned investments under Saudi Vision 2030, the national development plan. Second, profit margins are being squeezed. There is a continuous rise Faster infl ation has prompted many global central banks to reverse years of loose monetary policies, leading to signifi cant strains on the global banking sector SAUDI ARABIA’S BANKING LEGACY Regional currency. The Saudi Central Bank must follow the U.S. Federal Reserve’s approach to monetary tightening because the Saudi riyal is pegged to the U.S. dollar COMMENT BY JORGE CAMARATE, PARTNER, AND MATHIAS MASSOW, PRINCIPAL, WITH STRATEGY & MIDDLE EAST, PART OF THE PWC NETWORK AJULY 2023CEOMIDDLE EAST – LEGACY EDITION7 “SAUDI BANKS ARE IN A STRONG POSITION, THEY HAVE ROBUST CAPITALIZATION AND OPERATE IN A BUOYANT MACROECONOMIC ENVIRONMENT” Financial knowledge. Jorge Camarate (left), partner, and Mathias Massow, principal, with Strategy & Middle East in the share of interest-bearing ac- counts as part of the competition for deposits. That makes life difficult for banks that have a significant portion of their loan portfolio on fixed rates. These banks have to pay out more on deposits while being stuck with the same level of income from their loans. Third, there is a growing “dura- tion mismatch” between assets and liabilities which could strain liquidity. On the asset side, over 90% of Saudi banks’ funding is short-term. On the liability side, too much is long-term. There has been a surge in long matu- rity real estate loans on Saudi banks’ balance sheets in recent years. The mismatch is particularly worrisome given the high loan-to-deposit ratio and the competition for deposits. To address these challenges, Saudi banks can take four proactive measures. The first measure is to secure funding by ensuring the “stickiness” of deposits and diversifying funding sources. “Stickiness” refers to the loyalty of depositors and the stabil- ity of deposits, so that the deposits remain with a bank over an extended period of time. To achieve this, Saudi banks must offer customer-specific and superior value propositions to their private and public sector cus- tomers. That way they can retain ex- isting deposits and attract additional ones. Furthermore, they can explore additional funding sources to enhance financial stability and resilience, such as increased interbank lending. The second measure is to diver- sify income streams by increasing their fee income. That could include improving their wealth management, insurance, and investment service of- ferings. Banks could strengthen their advisory services, and broaden their product offerings of trade finance and cash management. The third measure is to enhance profitability by improving operational efficiency. It is essential for banks to reduce operating expenses to coun- teract the negative impact on their profit margin from the increase of interest-bearing deposits. The fourth measure is to reduce the asset-liability duration mismatch. Banks can reduced the weight of long- term lending in the loan portfolio by securitizing through the Saudi Real Estate Refinance Company. Or they can develop a direct placement mar- ket for these loans. Another option is to attract longer duration funding, such as increasing the percentage of time deposits, money that customers must leave with the bank for a speci- fied duration. Despite the problems in global banking, Saudi banks are in a strong position, they have robust capi- talization and operate in a buoyant macroeconomic environment. They can position themselves for continued success by taking proactive measures which will allow them to fund the growth and transformation of the Saudi economy. COMMENT $950BN The estimated size of Saudi Arabia’s GDP by the end of 2023, according to Trading Economics8 CEO MIDDLE EAST – LEGACY EDITION JULY 2023 ubai real estate prices are “reasonable” compared to international markets, Bing- hatti chief executive officer Muham- mad Binghatti said. “If you compare real estate prices in Dubai to that of Hong Kong, Miami, London, and all the notable international markets around the world, Dubai indeed, in my opinion, is a very good deal.” Binghatti’s statement comes after seeing many positive strides in the real estate market ever since the pandemic and he believes there is no bubble in the market. “I do not think there is a bubble for many reasons. One, is the popula- Muhammad Binghatti talks real estate, leadership and why Dubai is perfect for long-term investors DUBAI REAL ESTATE ‘A GOOD DEAL’ WITH ‘REASONABLE’ PRICES, SAYS BINGHATTI CHIEF Economic contributor. The Dubai real estate market growth trajectory has steady momentum throughout the first half of this year REAL ESTATE BY SHARON BENJAMIN DJULY 2023 CEO MIDDLE EAST – LEGACY EDITION 9 “WE ARE BLESSED WITH VERY CLEAR LEGISLATION THAT PROTECTS THE RIGHTS OF THE INVESTORS” Property developer. Binghatti said Dubai positioned itself as a safe haven for many across the world tion growth we have seen in the past two years, post pandemic – it is very organic,” he said, adding that many from the world over are choosing Dubai as a permanent destination to live and work in, compared to the past, when Dubai was only considered as a tourist destination to many. The world is choosing Dubai “People are coming to Dubai to live in, and establish themselves in the emirate. I think that lends itself to Dubai’s competitiveness from an eco- nomic perspective,” he explained. Binghatti added that all of these successes were possible solely because of the visionary leadership of the UAE. “I think the leadership of Dubai and the UAE were very prudent and very capable – perhaps much more capable than many other parts of the world in dealing with crisis,” he said. Binghatti said that along with deal- ing with the pandemic, the emirate po- sitioned itself as a safe haven for many across the world through its safety protocols, government initiatives, and majorly its Golden Visa initiatives. “We definitely have more peo- ple living in Dubai today. So, we have seen the Golden Visa initiative, almost every single executive that works with me today has a Golden Visa, because they know that they are here for good, permanently,” he said, adding this has also pushed the demand for people to buy property rather than just renting. Dubai economy ‘a very stable one’ compared to global economies Binghatti also explained that wealth migration has also played a key role in boosting the Dubai real estate market, especially as the emirate is a highly secure city, with a “very clear legisla- tion” that protects investor rights. “We are blessed with very high security here, and we are blessed with very clear legislation that protects the is making almost a 10 percent yield when it comes to rental properties. “When it comes to capital gains, the sky’s the limit, people I know have made 20 percent to 50 percent Capi- tal Gain on their investment,” he said. Echoing the same sentiment, Bu- gatti Rimac boss Mate Rimac also said that looking at their customer base, many are relocating to the emirate – and this shift “definitely proves to me that this is not a bubble,” he said. “People are not buying real estate speculatively and are not coming here to buy property just to flip it or simply make an investment. People are actually coming here to settle down with their children – especially because Dubai provides everyone with everything they need around. And that is why I feel that the growth in the market is going to continue and that it is healthy,” Rimac said. Binghatti has partnered with Bugatti Rimac to create the world’s first-ever Bugatti Residences, to be located near Burj Khalifa Boulevard. The “megaproject,” as Binghatti termed it, is scheduled for completion in the next three years. REAL ESTATE $81.7BN The projected value of the real estate sector in Dubai by the end of this year, according to the Dubai Property Market Forecast for 2023 rights of the investors. And I think we see that the emirate’s economy is a very stable one. Moreover, the yields are very solid – almost every inves- tor I know who has invested in Dubai Next >