< Previous10 CEO MIDDLE EAST – LEGACY EDITION JULY 2023 greener future costs – a lot. This could be a daunting reality against today’s back- drop of global financial instability. However, the natural ebbs and flows of global economics can’t steer us off course from Net Zero by 2050 – the biggest financial task in history. We must leverage the unique plat- form of COP28 in Dubai this Novem- ber to grab this challenge with both hands and proactively keep turning dialogue around climate finance into quantifiable action. Time is not on our side. There is a 66 percent chance between 2023- 2027 that we’ll see the global aver- age temperature breach 1.5°C above pre-industrial levels for the first time, the World Meteorological Organiza- We must leverage the unique platform of COP28 in Dubai this November to grab this challenge with both hands and proactively keep turning dialogue around climate fi nance into quantifi able action ECONOMIC STRAIN CAN’T DISTRACT US FROM THE CLIMATE CHANGE ULTIMATE CRISIS Global warming. The MENA region is set to warm nearly twice as fast as the global average, according to Greenpeace Research Laboratories SUSTAINABILITY BY BADAR CHAUDHRY, HEAD OF ENERGY SECTOR, MASHREQ BANK AJULY 2023 CEO MIDDLE EAST – LEGACY EDITION 11 “TACKLING THE ENERGY TRANSITION UNDER THE UMBRELLA OF NET ZERO IS NOT JUST DOOM AND GLOOM” Taking action. Chaudhry says transforming the energy sector into a greener, cleaner machine is a cornerstone of making Net Zero possible tion (WMO) recently revealed. This is a colossal red flag. Transforming the energy sector into a greener, cleaner machine is a cornerstone of making Net Zero pos- sible. Progress is undeniably being made, but it isn’t a linear journey when it comes to speed and scale. Conflicting forces Global investments in energy transi- tion technologies reached a record high of $1.3trn in 2022, for example, but annual investments must more than quadruple to over $5trn to en- sure we don’t exceed 1.5°C (again) by 2050. Overall, the world needs $35trn of investments by 2030 to have a suc- cessful energy transition, according to the Abu Dhabi-based International Renewable Energy Agency (IRENA). This major call to action comes at the same time as the International Monetary Fund (IMF) shared that advanced economies will likely see a pronounced slowdown in growth, from 2.7 percent in 2022 to 1.3 percent in 2023. In the Middle East and Central Asia, growth rates of 5.3 percent in 2022 and expected to nearly halve to 2.9 percent this year. The ongoing ef- fects of Russia’s invasion of Ukraine, three years of COVID-19 and con- cerns over inflation, rising interest and currency rates are all part of the worrisome mix. Eyes on the prize All are valid concerns and are undeni- ably having an impact. Many we’ve seen before in previous squeezed economic situations and so there are some tried-and-tested solutions and fiscal measures to calm the turbu- lence over the next year or so. The global 2007-2009 recession impacted us all, but we learned key lessons and recovered and moved on. Comparatively, the vastness of the world-altering consequences of fail- ing to stay on track for Net Zero are security, helping economic stability and protecting the environment. We can do this Achieving this transformation is possible; extraordinarily difficult, but possible. How can we be so sure? Firstly, necessity. Our species and planet face great danger. For one, the Middle East and North Africa (MENA) is set to warm nearly twice as fast as the global average, said Greenpeace Research Laboratories. Secondly, our confidence is un- derpinned by the fact we’ve already dramatically moved the needle. The renewable energy sector now gener- ates seven times more of a return on investment than fossil fuels, shared the International Energy Agency (IEA). Few thought this paradigm shift was possible in our lifetimes. Plus, renewables contributed to an unprecedented 83 percent of global power additions in 2022, according to IRENA. Numbers don’t lie; this is the sort of real change we must keep striving for. SUSTAINABILITY almost impossible to fathom – and must be avoided at all cost. We also need to remember that tackling the energy transition under the umbrella of Net Zero is not just doom and gloom. There are many, many financial bright spots too. For one, a study by Oxford Univer- sity said a decarbonised energy system by around 2050 could save the world at least $12trn, compared to continu- ing our current levels of fossil fuel use. Therein lies a triple win: for energy 12 CEO MIDDLE EAST – LEGACY EDITION JULY 2023 s we stand at the precipice of Eid Al Adha, a time of deep contemplation and celebra- tion, it behooves us to reflect on the core principles this momentous event upholds: the ideals of community, shar- nected global economy, the tremors of corporate actions often reverberate across borders, making environmental, social, and governance (ESG) consider- ations integral elements of a company’s strategic ethos. I have written previously on the competitive advantages family-owned businesses have over entities beholden to their shareholders and still have great pride and faith in the model KROHNE operates. Family-owned businesses, backed by their legacy of multigenerational stewardship and in- nately focused long-term orientation, are in a unique position to drive these ESG transformations. Within the tech- nology industry, such companies exist at the nexus of innovation and societal The path to inclusive corporate citizenship for multinational family-owned tech fi rms HARNESSING THE POWER OF COMMUNITY IN ESG Inclusivity. A steadfast commitment to community, coupled with an in-depth understanding and respect for cultural diversity, paves the way for a more inclusive and prosperous corporate culture SUSTAINABILITY BY FRANK JANSSENS, VICE PRESIDENT, KROHNE OIL AND GAS – MIDDLE EAST AND AFRICA A ing, and sacrifice. These values, inher- ent in our societal moral fabric, extend far beyond the personal realm and hold profound implications for corporations, particularly those within the technology sector. In the labyrinth of our intercon-JULY 2023 CEO MIDDLE EAST – LEGACY EDITION 13 “CELEBRATIONS LIKE EID AL ADHA PROVIDE A PLATFORM FOR COMPANIES TO DEMONSTRATE SOLIDARITY” Culture. Inclusivity stands as a crucial pillar of ESG and community engagement, says Janssens impact, shaping tools and platforms that bear the power to reshape commu- nities, both locally and globally. The recognition of community importance extends beyond merely ac- knowledging the operational footprint of a business. It’s about embracing the symbiotic relationship that a corpora- tion shares with its community - a bond where mutual growth, prosperity, and sustainability are intricately entwined. Consequently, community engagement becomes an indispensable facet of a ho- listic ESG strategy, offering a pathway for companies to fulfill their ethical obligations while strengthening their social license to operate. Cultural sensitivity is a cornerstone in fostering meaningful, productive relationships within diverse communi- ties. For a multinational, family-owned tech company, gaining an understand- ing of cultural nuances and respecting differing societal norms is crucial in cultivating a sense of mutual trust and collaboration. Celebrations like Eid Al Adha provide a platform for companies to demonstrate solidarity and respect for cultural diversity, which in turn can solidify bonds with local communities and contribute to a healthier, more inclusive corporate culture. Inclusivity, on the other hand, stands as a crucial pillar of ESG and community engagement. Despite its innovative prowess, the technology sector has not been untouched by the challenges surrounding diversity and inclusion. The adoption of an inclusive ESG strategy can help to alleviate these issues, leading to a diverse workforce that accurately reflects the communi- ties it serves. Such diversity encourages creativity, instills resilience, and ensures that the products and services created are more reflective of and sensitive to a wider array of needs and experiences. Corporate citizenship binds these threads together, casting the company not merely as a business entity but as an active, responsible participant tech companies to deftly navigate the complexities of the global market while remaining steadfast to their values. It offers an opportunity to redefine their societal role, making positive contribu- tions to the social fabric while securing their long-term business sustainability. In conclusion, as the significance of Eid Al Adha serves as a poignant reminder of our interconnectedness and shared responsibility, these principles resonate deeply within the corporate world. They are not only confined to our personal lives. For family-owned, multinational tech firms, upholding these principles through a focused ESG strategy can illuminate the path towards a more inclusive, culturally sensitive, and sustainable future. A steadfast commitment to com- munity, coupled with an in-depth understanding and respect for cultural diversity, paves the way for a more inclusive and prosperous corporate culture. By fostering an environment of shared value and giving back to those communities where we are welcomed and make our business successes in collaboration, we can build authentic prosperous relationships that continue to flourish for the years ahead. SUSTAINABILITY within the societal sphere. This implies transcending mere regulatory com- pliance to undertake initiatives that positively influence the communities they touch. Whether it’s investing in lo- cal infrastructure, creating employment opportunities, supporting education, or mitigating environmental impact, such endeavors reaffirm a company’s com- mitment to its community and under- score its role as a good corporate citizen. Embedding ESG within the context of community, cultural sensitivity, in- clusivity, and corporate citizenship can empower multinational, family-owned 14 CEO MIDDLE EAST – LEGACY EDITION JULY 2023 ow more than ever, with the world economy facing head- winds generating from geo- political tension, economic downturns, rising inflation, supply chain issues, financial knowledge is key to achieve the goals that investors and their families are aiming for: from a stable household to education to retirement to name some. Unfortunately, general education curricula hardly scrap the surface when it comes to financial knowledge, and this is something that should really change. And, as contradictorily it may seem, new powerful technologies like generative AI coming into play further require investors to be well aware of what to feed to the system and of the implication and consequences of their output. While the rise in inflations seem to significantly slow down and the rise in interest rate might be ap- proaching its peak, high prices and related high interest rates might last for quite some time and this should definitely be taken into consideration in creating and managing investment portfolios, always keeping track of the timeframe and goals of the investor, as well as his risk appetite. Knowing how the dynamics of inflation and interest rates affect different asset classes is key in order to rebalance the portfolio in terms of cash, bonds, equities and speculative instruments, especially in a medium- term horizon. By understanding how inflation and interest rates affects the value of money, one can take neces- sary steps to mitigate its effects and preserve wealth, by carefully apply- ing such knowledge to budgeting the household finances, changing the way financial goals are met in relation to the source of income and their stabil- ity in times of economic uncertainty, which needs to be reflected also in the spending decision and monitoring. The existing portfolio should look at a reassessment of the part which is invested in bonds, as the dynam- This is becoming even more important with rising infl ation and increasing cost of living IMPORTANCE OF FINANCIAL KNOWLEDGE TO SAFEGUARD ONE’S FUTURE Literacy. Financial knowledge equips individuals with the skills to make informed decisions regarding budgeting, spending, and saving, according to d’Ambrosio FINANCE BY ROBERTO D’AMBROSIO, CEO, AXIORY GLOBAL NJULY 2023 CEO MIDDLE EAST – LEGACY EDITION 15 “FINANCIAL KNOWLEDGE WILL ALLOW THE INVESTORS TO MAKE THEIR OWN ASSESSMENT IN RESPECT OF THE ELEMENTS THAT MIGHT IMPACT THEIR WEALTH” Asset management. By understanding how inflation and interest rates affects the value of money, one can take necessary steps to mitigate its effects and preserve wealth ics of the impact of rising interest rates might lead to reconsider the fixed income portfolio, increasing its duration to take advantage of higher returns in terms of interests and possible raise in prices if the interest rates trend reverses. A higher duration increases the sensitivity of the portfolio to inter- est rates changes, thus increasing its risk, but in a situation like the one we are facing such risk might, if the risk tolerance of the investor allows it, improve the risk/reward ratio of the investment portfolio. Another example might be the crea- tion and sizing of an Emergency Fund to provide a safety net in times of unfore- seen circumstances or financial setbacks in times of economic and geopolitical uncertainty which might impact on the size and stability of the investor income. The fund might be created by increasing the liquid part of the investment portfo- lio and increasing the amount set aside from the income flow by reconsidering the spending habits. Another very important aspect of financial planning, which definitely benefits from financial knowledge, are the plans for retirements. Depending on when retirement is set and the time left to it, the financial portfolio and liquidity management must change to adapt to economic situations, and that is more compelling as the date of re- tirement approaches. In this situation, the risk of the investment portfolio must be reduced to avoid unexpected excessive loss of value with very little or no time to recover. It is not only a matter of wealth management and investment portfo- lios’ upkeeping, but also of day-to-day management, especially in times of rising living costs, exerting pressure on individuals and families to manage their finances effectively. Financial knowledge equips individuals with the skills to make informed decisions regarding budgeting, spending, and saving. By developing a comprehensive understanding of their income and ex- penses, individuals can identify areas for potential savings, make adjust- ments to their lifestyle, and allocate resources efficiently. All of the above, while just looking generally at the issue, clearly shows how important financial knowledge is. Of course, we cannot think that investors might reach a full knowledge of the financial markets’ dynamics and of their impact on wealth management, and the guidance of an expert advisor will still be needed, especially when the wealth composition, the investor rev- enue streams and financial goals are of a complex nature. Nevertheless, financial knowledge will allow the investors to make their own assessment in respect of the elements that might impact, at times severely, their wealth and the achieve- ment of their life goals, by identifying when and how to take action. FINANCE16 CEO MIDDLE EAST — LEGACY EDITION JULY 2023 Design Group, Dubai’s most prominent design and architecture firm, continues to shape the landscape of the built environ- ment with its unwavering commitment to excellence and a legacy rooted in friend- ship, collaboration, and a shared passion for design. With a rich history originat- ing in Dubai and expanding its influence globally, LW Design Group stands as a beacon of inspiration and innovation, leaving an indelible mark on the skyline of Dubai and beyond. Founding forces Jesper Godsk, the Founder and CEO of LW Design Group, plays an es- sential role in carrying forward an extraordinary legacy. In 1999, Godsk, along with Lars Waldenström and Morten Hansen, recognised a gap in the Dubai interior design market, which was predominantly associated with extravagant opulence. Their col- lective vision was to bring the essence of minimalist Scandinavian design to the forefront of the region, marking a significant turning point that pro- pelled LW to unprecedented heights. However, the origins of this success story can be traced back two decades earlier, to 1976, when Waldenström em- barked on a journey that involved taking five flights from Sweden to Dubai for a business meeting, driven by his quest to uncover opportunities for a Swedish company. Through a fortunate series of events and fortuitous encounters, Waldenström found himself commis- sioned as a designer for custom-built palaces. Waldenström’s determination to succeed, coupled with his adeptness in forging connections with people, led him to cross paths with Hansen and Godsk. A HOMEGROWN INTERIOR DESIGN AND ARCHITECTURE FIRM THAT IS NOW GLOBALLY CREATING MARKET-DEFINING DESIGNS THAT ARE REDEFINING THE INDUSTRY LW LW Design Group: A legacy of vision, collaboration, and global design excellence WE SEE OURSELVES AND ALL OF OUR COLLEAGUES AS A FAMILY, WHO CARE FOR EACH OTHER AND ENJOY CREATING FANTASTIC PROJECTS TOGETHER COVER STORYJULY 2023 CEO MIDDLE EAST — LEGACY EDITION 17 JESPER GODSK | COVER STORY18 CEO MIDDLE EAST — LEGACY EDITION JULY 2023 Creative leaders. (From left to right) Pooja Shah-Mulani, Jesper Godsk, Lars Waldenström, Adrian Battisby, Andrew Harms and Rachel Kidd COVER STORY | JESPER GODSK Subsequently, in 2003, Colin Doyle established LW Architecture, fur- ther enhancing the LW brand with its modern and contemporary approach to architectural design. With an impressive portfolio encompassing luxury villas, residential complexes, commercial spaces, and hospitality towers, LW Design Group’s Architectural Division has become an integral part of Dubai’s urban fabric. Additionally, Cristina Wakamatsu, Partner and Design Direc- tor for Architecture, has cemented LW Design Group’s Architectural Division in the South American residential mar- ket — a role she spearheads from the company’s office in São Paulo, Brazil. Collaboration and camaraderie are fundamental to the ethos of LW Design Group. This is evident in their unique approach to client interac- tions, which embodies an authentic Scandinavian spirit. It fosters an environment that is frank, honest, informal, and highly productive. As experts in hospitality design, the team at LW Design Group recognise the significance of creating a welcom- ing atmosphere, and this philoso- phy permeates their meetings. An informal set-up allows clients to feel comfortable, encouraging open and fluid discussions about their design aspirations and vision. LW Design Group believes that this nurturing of relationships and fostering of trust with clients brings a personal touch to every project. Under Godsk’s guidance, the company has grown from its hum- ble team of three in a small office 4 The number of LW Design Group offices around the world – Dubai, Hong Kong, Sao Paolo and Denmark, with Riyadh on the horizonJULY 2023 CEO MIDDLE EAST — LEGACY EDITION 19 behind the Dubai Zoo to a global practise of 160 people. With a solid foundation, the company was set for global expansion, leading to the establishment of LW offices in Hong Kong, São Paulo, and Denmark, with current plans to expand into Saudi Arabia. These international ventures allowed LW Design Group to gain international recognition, proving its adaptability and setting the stage for future success. Next generation With new opportunities comes new leadership, which for LW Design Group is Adrian Battisby, Rachel Kidd, Pooja Shah-Mulani, and Andrew Harms. “Next year, LW will celebrate its 25th anniversary, so iden- tifying the four individuals that will be responsible for developing the legacy is the biggest achievement I could wish for,” Godsk states. The new leadership has been a carefully planned transition over the last eight years, with Jimmy Hansen, Partner and CFO, at the helm of this milestone progression. “Each with their own personality and skillset, when combined, form the strongest leadership team to carry LW Design Group forward into the future while preserving our core DNA. We see ourselves and all of our colleagues as a family, who care for each other and enjoy creating fantastic projects together,” Godsk explains. Adrian Battisby, Partner, Senior Director of Interior Design, heads LW Design Group’s Hong Kong of- fice. He has played a pivotal role in expanding the company’s presence in the Asian market. His meticulous attention to detail and ability to seamlessly merge functionality with aesthetic appeal has been instru- mental in LW Design Group’s suc- cess. With extensive knowledge and experience in space planning and operational flow, his contribution to all aspects of designing luxury hos- for upscale and luxurious hospitality projects is exemplified by Rachel’s success in attracting clients who seek the same level of sophistication for their homes. Godsk says: “Rachel is so gifted in her way of creating strong narratives from the briefs we are given and being able to translate them seamlessly into incredible spaces where her attention to detail, furni- ture, and accessories has resulted in LW being one of the market leaders in interior design.” Pooja Shah-Mulani, Partner and Design Director of Interior Design, is a driving force behind LW Design Group’s design philosophy. Shah- Mulani infuses each project with profound meaning and emotional resonance, showcasing her remark- able ability to blend functionality, aesthetics, and cultural influences, earning her an esteemed reputation among clients and industry peers. Shah-Mulani’s dedication to nurtur- ing a happy work culture has fostered an atmosphere of creativity and motivation within the team, inspiring them to deliver exceptional design solutions consistently. Godsk reveals: WE HOPE THE FUTURE WILL CONTINUE TO PRESENT LW WITH EXCITING NEW PROJECTS ACROSS THE GLOBE JESPER GODSK | COVER STORY Spaces with impact. The Dubai Edition – an iconic hotel in Downtown Dubai where Interior Design & Architecture by LW are woven together seamlessly to create a unique luxury experience pitality projects is widely appreciat- ed by owners and operators. Godsk, acknowledging Battisby’s commit- ment and professionalism states: “Adrian is by nature a very charis- matic personality, who can capture people’s attention and present ideas with such passion and flair.” Rachel Kidd, Partner and Design Director of Interior Design, plays an instrumental role in creating excep- tional designs and storytelling for both hospitality and residential pro- jects. LW Design Group’s reputation Next >