< PreviousTECHNOLOGY 10 CEO MIDDLE EAST 16–31 MAY 2024 ducation is intrinsically linked to labour markets and economic growth, influencing economic returns for both individuals and gross domestic product (GDP). Better education levels contribute to healthier and more agile labour markets. Universal secondary education could lift 420 million people out of poverty worldwide. Apart from economic returns, education steers countries towards peace and stabil- that investing in education is essential to protect economies from sudden shocks and rapidly changing labour markets. Education has a direct impact on salaries. People with better jobs and salaries pay more taxes, increasing national economic growth. A study by UNESCO found that for every $1 spent on education, between $10 to $15 was generated in economic growth. Each additional year of edu- cation increases a person’s income by 10 percent, while one additional year of schooling can increase a woman’s earnings by up to 20 percent. Despite this mounting evidence, education remains in a chronic crisis, aggravated by dwindling resources. The pandemic has worsened the sec- tor’s woes, with more than 1.6 billion impacted by school closures world- wide, causing significant learning losses and putting this generation at risk of losing $21 trillion in potential lifetime earnings. Today, over 250 million children and youth are out of school, and 70 percent of 10-year-olds in low- and middle-income economies can’t read and understand a basic text. This and future generations will grow up in a digitalised society with an estimated 70 percent of new value created in the economy over the next decade from digitally-enabled business models. Over the next five years, half of workers’ competencies are likely to be disrupted by Artificial Intelligence (AI) and half of today’s work activities could be automat- ed between 2030 and 2060. The MENA region needs to create more than 33.3 million new jobs by 2030, but skills mis- matches have pushed youth unemploy- ment to 25 percent, with female youth unemployment reaching 40 percent. Today’s education systems, par- ticularly in lower income countries, are mostly ill-designed for tomorrow’s market. This bodes ill for business and economic development, particularly at this critical juncture where AI is rap- idly changing the way we do business. Tomorrow’s labour will not be created overnight; it is nurtured in classrooms today THE EDUCATION CRISIS IS BAD NEWS FOR BUSINESS The more a country invests in its education system, the greater its economic performance overall E EDUCATION BY LAURA FRIGENTI, CEO OF THE GLOBAL PARTNERSHIP FOR EDUCATION ity, essential for economic prosperity, creating a virtuous circle. Education is the smartest invest- ment a country can make. The more a country invests in its education system, the greater its economic performance overall. Evidence shows that countries with more people at- tending school see faster economic growth than countries with fewer educated workers. Studies by the World Economic Forum (WEF) show EDUCATION 16–31 MAY 2024 CEO MIDDLE EAST 11 Tomorrow’s labour will not be created overnight; it is nurtured in classrooms today. As AI and other technological innovations speed for- ward, there is an indisputable need for education systems that prepare young people for a digitalised world. It is therefore crucial that education keep up with the changing demand of skills and focus on human-centered skills that are hard to replace, such as critical and analytical thinking, problem- solving, collaborative and adaptability skills, and other socio-emotional skills. As technologies and competency needs evolve, so too should education systems to produce a skilled workforce that can develop businesses and drive economic growth. Quality education not only broadens children’s perspec- tives and skillsets to thrive in an ever- changing labour market, but also build the workforce that today and tomor- row’s businesses need to develop and contribute to economic advancement and prosperity that leave no one behind. This requires adequate financ- ing for education. But since 2020, education budgets in nearly half of all lower-income countries have dropped by an average of 14 percent. There has also been a decline in foreign aid to education. According to recent data by the Organisation for Economic Co- operation and Development (OECD), official development assistance to education dropped to under 10 percent of total aid in the first year of the pan- demic from nearly 12 percent a decade earlier. While trimming education spending might relieve budgets in the short-term, it is depriving economies of long-term prosperity. Multilateralism is essential to chan- nel adequate funding to education in lower-income countries. Sharing the firm belief that education is an essential pathway to prosperity, the Global Part- nership for Education’s engagement with Gulf countries started in 2018 with the UAE, and has been growing laboration that allowed GPE, IsDB and ACG to generate a half billion dollars to help millions of children get quality education. By providing $4 for every $1 drawn from the GPE Multiplier, SmartEd has helped governments tack- le the learning crises in their countries by mobilising more funding on better terms and ensuring that these resources are invested in effective and sustainable education programs. During its 2024 Annual Meetings and Golden Jubilee Celebration, IsDB and ACG joined GPE in celebrating the success of SmartEd. Building on this suc- cess, the partners pledged an additional $350m towards SmartEd to unlock more learning opportunities for children in low and lower-middle income countries that are members of the Organisation of Islamic Cooperation (OIC). It is no coincidence that we have celebrated SmartEd’s success in Saudia Arabia, a country that has made great strides in giving its children the skills they need to achieve its Vision 2030 of creating a thriving economy. Indeed, Saudi Arabia has transformed its own education system to prepare its children for the jobs of the future. The kingdom can offer lower-income member coun- tries of the OIC not only vital resources to finance transformative education, but also the know-how of building the human capital that powers tomorrow’s economy. Saudi Arabia’s Vision 2030 offers a roadmap for other countries to unleash the potential of their children. This vision is aligned with our en- deavours to increase access to quality education that prepares children for tomorrow’s jobs and challenges. Financing quality education is not a luxury; it is a market necessity and collec- tive responsibility to build prosperous and equitable future. Together with our Saudi partners, we will continue to innovate education financing so that every boy and girl can access the quality education they need to learn, grow and thrive in a rapidly changing labour market. “WE WILL CONTINUE TO INNOVATE EDUCATION FINANCING SO THAT EVERY BOY AND GIRL CAN ACCESS THE QUALITY EDUCATION THEY NEED TO THRIVE IN A RAPIDLY CHANGING LABOUR MARKET” Frigenti says financing quality education is a necessity and a collective responsibility to build a prosperous and equitable future ever since to include Saudi-based enti- ties such as the Islamic Development Bank (IsDB) and the Arab Coordina- tion Group (ACG). Last February, we welcomed Saudi Arabia into the part- nership along with a generous contri- bution of $38m made at the Human Capital Initiative, under the Patronage of Crown Prince Mohammed bin Sal- man bin Abdulaziz Al Saud. Together with our Gulf partners, we have strived to address the educa- tion funding crisis through innova- tion. The Smart Education Financing Initiative (SmartEd) is one such col-TECHNOLOGY 12 CEO MIDDLE EAST 16–31 MAY 2024 he path to business success is paved with challenges. From identifying a concept to launching a business, keeping customers happy, generating new sales, managing staff, battling competition and navigat- is left over for strategic planning. And whatever strategic planning is under- taken tends to focus on the most im- mediate or pressing challenges, rather than the longer-term issues. As such, succession planning is often the most overlooked aspect of business strategy despite, potentially, being the most important. Even in the most mature economies, this is often a neglected area of business plan- ning. Similarly, Saudi Arabia’s next generation of entrepreneurs are often (understandably) focused on growth at the expense of forward planning. However, it cannot be stressed enough that it is never too early to start the Succession planning is the key to business continuity PLANNING THE NEXT CHAPTER Succession planning is often the most overlooked aspect of business strategy despite, potentially, being the most important T FAMILY BUSINESS BY MOHAMMED AL NEMER, CEO, MOROOD INVESTMENT COMPANY ing the regulatory/legislative landscape, business owners are typically caught on a conveyor belt of challenges and obstacles to be overcome. For all but the most disciplined business leaders, this means little time FAMILY BUSINESS 16–31 MAY 2024 CEO MIDDLE EAST 13 process of succession planning and the earlier this thinking is embedded into company procedures, the easier the end process will be. All business owners exit at some point, but with varying degrees of choice and success. Having a solid suc- cession plan in place greatly increases the chances of exiting on one’s own terms and with more success. Succession planning is integral to a business’ survival as, without it, there is simply no going concern. It is first and foremost an exercise in implementing robust systems - these are the systems that drive efficiency, encourage con- sistency and mean the business is less impacted by staff turnover. Although this sounds simple in principle, it is often more complicated in practice. In our experience advis- ing company owners from a broad range of sectors, we see a number of common themes and mistakes which create significant obstacles to successful succession planning. A “do it yourself” culture Many business owners have a tendency to assign key tasks to themselves rather than delegating to someone more capable, or upskilling employees. Centralised decision making By definition, business founders can be reluctant listeners. To get to their posi- tion, they have learned to trust their instincts and have developed a strong sense of self belief that means they tend to assume all decision-making respon- sibilities or, worse, settle for inertia. Ignoring structures and systems A lack of structure and systems make a business very unattractive to new owners or leaders as this is a threat to business continuity. A structure- less organisation with no centralised records of processes, procedures, and/ or intellectual capital, can see its value erode very quickly. and transparent bonus structures are key to ensuring staff loyalty, which is an integral part of business survival. Avoiding the big decisions As a business transitions from one chapter to the next, it is important to take decisive action on big decisions early. Unnecessary contracts, disrup- tive staff and other business critical issues need to be reviewed and resolved swiftly so they do not add unwanted friction to the succession process. Having established the param- eters for failure, what does success look like? Success in this context can be best described as minimising key man risk. Though the role of the founder(s)/leader(s) may well remain critical to the strategic direction of the business, their presence (or absence) should have no bearing on day-to-day operations. If you have mitigated the business’s reliance on one individual/key indi- viduals, then the succession planning is complete. If the business can operate smoothly without any key players pre- sent, it means the right structures and systems are in place and the business is a going concern. “A STRUCTURELESS ORGANISATION WITH NO CENTRALISED RECORDS OF PROCESSES OR INTELLECTUAL CAPITAL, CAN SEE ITS VALUE ERODE VERY QUICKLY” 33% The percentage of Middle East family businesses who describe themselves as ‘very advanced’ in their leadership, according to the Middle East Family Business Survey 2023 by PwC Failing to incentivise staff Businesses in Saudi Arabia rarely have formal structures in place to reward and incentivise staff. Formal appraisals A lack of structure and systems make a business very unattractive to new owners or leaders as this is a threat to business continuity, according to CEO Al NemerTECHNOLOGY 14 CEO MIDDLE EAST 16–31 MAY 2024 oving to Dubai opens a world of opportunities, but it also presents unique chal- lenges, particularly in maintaining both physical and mental well-being. For Russian-speaking expats, these challenges manifest in various health concerns, ranging from psychological distress to physical ailments. Since the 1st of December 2023, we have witnessed an influx of patients seeking medical assistance. Among the admitted patients during this period, 35 percent voiced complaints related to anxiety, while 17 percent were diagnosed with varying degrees of depression. Out of the total number of pa- tients, Gastritis was reported by around 8.5 percent of patients, indicating a prevalence of gastrointestinal issues. Ad- ditionally, 31 percent sought treatment Thirty five percent of patients voiced complaints related to anxiety, while 17 percent were diagnosed with varying degrees of depression since December 2023 UNVEILING THE MOST COMMON HEALTH CONCERNS AMONG RUSSIAN-SPEAKING EXPATS IN DUBAI Embracing Dubai’s vibrant sports culture, engaging in water-based activities, and incorporating mindfulness practices are instrumental in fostering a healthy lifestyle M HEALTHCARE BY DR KSENIA BUTOVA, FOUNDER OF MOLODOST CLINIC DUBAIHEALTHCARE 16–31 MAY 2024 CEO MIDDLE EAST 15 for acne, likely exacerbated by environ- mental factors, while 30 percent of pa- tients were treated for acute respiratory viral infections (ARVI) and decreased immunity, highlighting the susceptibil- ity of expatriates to infectious diseases in their new environment. Here are the leading factors prompting Russian expats to seek medical care in Dubai, coupled with effective strategies for managing these prevalent health issues. Battling anxiety and depression The excitement of relocating to a vibrant city like Dubai is often overshadowed by the stark reality of separation from familiar surroundings. Many expats grapple with feelings of isolation, financial strain, and uncer- tainty about the future, leading to anxiety and depression. Shockingly, a significant portion of our patients – every third individual – struggles with some form of depression, necessitating interventions such as psychotherapy or antidepressant medication. Addressing acne flare-ups Acne, a persistent skin condition, emerges as a prevalent concern among expats, especially amid the scorching Dubai sun and the stress of adapting to a new environment. Flare-ups are often triggered by a combination of factors including sun exposure, stress, and dietary indiscretions. Our ap- proach involves a multifaceted strategy encompassing sun protection, dietary adjustments, and targeted therapies like retinoids to alleviate symptoms and restore skin health. Defending against recurrent infections Despite Dubai’s sunny climate, a surprising number of expats contend with weakened immunity, marked by frequent bouts of colds and infections. Vitamin D deficiency, exacerbated by limited sun exposure and lifestyle fac- tors, contributes to this vulnerability. Managing gastritis in a stressful environment Gastritis, characterised by inflamma- tion of the stomach lining, emerges as a common complaint among expats, with stress and poor dietary habits acting as primary instigators. While Helicobacter pylori infection plays a role, lifestyle factors sig- nificantly exacerbate the condition. Adopting a balanced diet, stress man- agement techniques, and smoking cessation are integral to alleviating gastritis symptoms and promoting gastrointestinal health. Curbing overeating and obesity The allure of Dubai’s culinary land- scape, coupled with sedentary lifestyles and mental health challenges, contrib- utes to the prevalence of overeating and obesity among expats. Mitigating these concerns necessitates a concerted effort to strike a balance between diet, physical activity, and mental well-be- ing. Embracing Dubai’s vibrant sports culture, engaging in water-based ac- tivities, and incorporating mindfulness practices are instrumental in fostering a healthy lifestyle. Embracing holistic wellness In navigating the complexities of expat life in Dubai, prioritising mental health is paramount. Cultivating resilience, maintaining a balanced lifestyle, and embracing holistic well- ness practices lay the foundation for a fulfilling expat experience. From mindfulness exercises to vitamin D supplementation, proactive measures are key to safeguarding wellbeing for people living in Dubai. As expats embark on their Dubai journey, understanding and ad- dressing prevalent health concerns is instrumental in fostering a thriving community. Healthcare providers play a pivotal role in empowering expats to lead fulfilling and healthy lives in their adopted home. “HEALTHCARE PROVIDERS PLAY A PIVOTAL ROLE IN EMPOWERING EXPATS TO LEAD FULFILLING AND HEALTHY LIVES IN THEIR ADOPTED HOME” Cultivating resilience, maintaining a balanced lifestyle, and embracing holistic wellness practices lay the foundation for a fulfilling expat experience, says Dr Butova $34bn The healthcare spending in the UAE by 2027, according to projections from Dubai Healthcare City (DHCC) Moreover, the cosmopolitan nature of Dubai exposes residents to a myriad of pathogens, compounded by the drying effects of air conditioning. Strength- ening immunity entails a holistic approach encompassing nutritional optimisation, lifestyle modifications, and regular health screenings.COVER STORY DYUTI PARRUCK 16 CEO MIDDLE EAST 16–31 MAY 2024 MR. GOLDEN VISA: DYUTI PARRUCK STREAMLINES BUSINESS SET-UP IN DUBAI Aligned with Dubai 2040 Urban Master Plan, CEO and founder of Decisive Zone, Dyuti Parruck, shares insights on what makes his company the ultimate one-stop-shop for seamless business setup in the thriving city of Dubai COVER STORY hat is Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Min- ister of the UAE and Ruler of Dubai’s ambitious 2040 Vision and how does Decisive Zone align with this? Under the visionary leadership of Sheikh Mohammed, Vision 2040 aims to diversify Dubai’s economy and en- rich its cultural landscape. This strategic evolution is poised to catalyse invest- ments across multiple sectors, stimu- late real estate demand, and present lucrative opportunities for investors and developers seeking to engage with Dubai’s dynamic growth trajectory. How has the Golden Visa programme significantly contributed to growth in Dubai? Since its launch approximately five years ago, the Golden Visa has emerged as an even more compelling option post- Covid-19, attracting high net-worth individuals (HNWIs) and investors to Dubai. This influx of foreign investment has not only bolstered economic growth across various sectors of Dubai, includ- ing hospitality, F&B, and tourism but has also contributed to job creation and de- velopment within the real estate industry. This has been instrumental in the UAE’s transformation into a global hub. W Upon the establishment of De- cisive Zone in 2019 and subsequent expansion during Covid-19, our firm has remained steadfastly aligned with this visionary agenda. Sheikh Moham- med’s aspiration to increase Dubai’s population from 3.3 million to 7.8 million by 2040 represents an unprec- edented growth trajectory that sets a benchmark in global development. Guided by this ambitious vision, our mission is to support investors and business leaders in their endeavours, facilitating the creation of employ- ment opportunities and contributing to Dubai’s flourishing economy. 16 CEO MIDDLE EAST 16–31 MAY 2024 WORDS BY SAADIYA AHMAD • PHOTOGRAPHY BY AJITH NARENDRADYUTI PARRUCK COVER STORY 16–31 MAY 2024 CEO MIDDLE EAST 17 OUR MISSION IS TO SUPPORT INVESTORS AND BUSINESS LEADERS IN THEIR ENDEAVOURS DYUTI PARRUCK COVER STORY 16–31 MAY 2024 CEO MIDDLE EAST 17COVER STORY DYUTI PARRUCK 18 CEO MIDDLE EAST 16–31 MAY 2024 The exceptional appeal of the Golden Visa lies in its capacity to at- tract long-term investors without the hassle of frequent renewals, aligning seamlessly with the visionary direc- tives set forth by Sheikh Mohammed. By actively promoting a business- friendly environment, the UAE con- tinues to position itself as an inviting destination for international enterpris- es. Furthermore, the influx of students from reputable academic institu- tions or with outstanding academic achievements also plays a key role in job creation and economic expansion across the hospitality, educational, and healthcare sectors. The categories for the Golden Visa have expanded. What are these main categories now? There are four primary categories of the Golden Visa programme. The first category includes real estate inves- tors who are purchasing a property for $545,000 (AED2m), including off-plan properties that are not yet completed. If the individual has a sales purchase agreement in place, they are eligible for the Golden Visa. Also, recently the down payment require- ment of $272,000 (AED1m) which was previously a prerequisite for the Golden Visa, has been removed. The second category encompasses skilled employees such as doctors, nurses, software developers, engineers, and chartered accountants. These professionals, who have demonstrated their skills and qualifications, are eligible for the Golden Visa as the Decisive Zone provides highly personalised business setup services to corporate clients and individuals who are setting up their companies, branches or subsidiaries in the UAE $545,000 The real estate investment needed to avail of the UAE Golden Visa programmeDYUTI PARRUCK COVER STORY 16–31 MAY 2024 CEO MIDDLE EAST 19 The exceptional appeal of the UAE Golden Visa lies in its capacity to attract long-term investors without the hassle of frequent renewals government aims to attract and retain talent in the country. The third category pertains to employees earning a salary of $8,100 (AED30,000) or more, representing around 7-8 percent of the population. This category is particularly attractive to many individuals seeking eligibility for the Golden Visa. The fourth cat- egory is reserved for individuals who have made significant contributions to culture and media, such as those who have worked in Hollywood or Bol- lywood or have a sizable following on social media platforms. Can you provide a detailed overview of the tailored services Decisive Zone offers to corporate clients and individuals looking to establish their companies in the UAE? In 2019, we initiated a concept that encourages businesses to prioritise revenue-generating activities. Our focus is on streamlining your business operations and overseeing all admin- istrative tasks. Our process typically begins by assisting with obtaining the essential trade license, which serves as the foundational step in launching any business in the UAE. Subsequently, we facilitate the establishment of a corporate bank account and address Value Added Tax (VAT) compliance, which was introduced in 2018 by The Federal Tax Authority (FTA). In addition, we now provide support for corporate taxation matters. Our comprehensive services encompass all administrative re- sponsibilities, including accounting, tax obligations, and more, thereby allowing you to concentrate on advancing your business goals. A fundamental principle guiding our approach is that we hold your hand throughout the journey of your business. This commitment includes managing the renewal processes for your visas, and licenses, and fa- cilitating family visa arrangements, including insurance, if necessary. At Decisive Zone, we serve as a one-stop solution for business profes- sionals, enabling them to dedicate their attention to business growth while entrusting us with all other aspects of business management. We don’t guide but we lead them to help them be legal in the UAE. For example, if you have any idea of creating a payment service provider in the country, we will help you focus on it. Ultimately, we are making business seamless in Dubai. What are the different types of businesses that can be launched in Dubai? There are three distinct types of busi- ness setups available, starting with a mainland business. Businesses such as retail shops, barber shops, boutiques, or cafes that cater to end-users in the UAE necessitate establishment in mainland Dubai and require physical presence within the UAE. The second type of business struc- ture is the free zone business, with over 50 free zones available in the UAE. Opting to operate within a free zone is essential for individuals looking to es- tablish a presence in Dubai or conduct business globally. For instance, if engaging in a trad- ing business involving the procure- ment of goods from China for supply to Africa, our recommendation would be Jebel Ali Free Zone (Jafza), the flagship free zone of DP World and the largest customs bonded area in the Middle East. We assist our clients in selecting the most suitable free Next >