Page 1

Win the war on talent How employer branding can help your company be perceived as a great place to work july 2016 | www.entrepreneur.com/me | UAE AED20 9 7 7 2 3 1 1 5 4 1 0 0 8 > H.E. Abdul Aziz Al Ghurair Abdulla Al Ghurair Foundation for Education Raghu Malhotra MasterCard Laoucine Kerbache HEC Paris in Qatar H.E. Hamad Buamim Dubai Chamber Mona Ataya Mumzworld Puneet Chhatwal Steigenberger Hotel Group Faisal Al Bannai DarkMatter Roy Nouhra ASIS Boats Ahmed Abou Hashima Egyptian Steel Loyal talent drive your business from good to great Nurturing entrepreneurial talent in your venture Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER The Founder President of the Thumbay Group on building a $1.8 billion business- and his plans on growing its net worth to $3 billion by 2020 Thumbay Moideen

Page 2

Page 3

july 2016 Entrepreneur 3 CONTENTS JUly 2016 28 Left to right: CEO Maysa Jalbout, Chairman H.E. Abdul Aziz Al Ghurair and Professor Eric Grimson, Chancellor for Academic Advancement, MIT at the launch of the Abdulla Al Ghurair Open Learning Scholars Program 22 Thumbay Moideen, Founder President, Thumbay Group Mona Ataya Mumzworld H.E. Hamad Buamim Dubai Chamber Faisal Al Bannai DarkMatter Roy Nouhra ASIS Boats Ahmed Abou Hashima Egyptian Steel 64 MONEY: ASK THE MONEY GUY Finding common ground First Equity Partners CEO Qais Al Maskati on the key to building fruitful relationships between entrepreneurs and private equity firms. 68 MONEY: ECON Developing crowdfunding ecosystems in the Middle East While crowdfunding is slowly gaining popularity in the MENA region, it is still in the early stages with only $23.1 million being raised via crowdfunding in 2015. 74 START IT UP: Q&A Skip the queue MadfooatCom envisions cashless payments for Jordan… and the rest of the MENA too. Thumbay Moideen Thumbay Group H.E. Abdul Aziz Al Ghurair Abdulla Al Ghurair Foundation for Education Raghu Malhotra MasterCard Laoucine Kerbache HEC Paris in Qatar Puneet Chhatwal Steigenberger Hotel Group 20 INNOVATOR: Follow the leader Enterprise head honchos talk strategy, industry-specific tactics, and professional chal- lenges. Our picks for ten business lead- ers across different industry sectors who have impacted the MENA market, and continue to shape its corporate trends

Page 4

Entrepreneur july 2016 4 CONTENTS july 2016 72 Donna Harris, Co-Founder, 1776 82 61 LIFE The ancient problem of procrastination James Clear on why we don’t follow through on what we set out to do… and what to do about it. 76 START IT UP: Q + A Clean sweep MENA startup Justmop wants to become the go-to spot for home services in the region. 79 STARTUP FINANCE MENA startups get funded Startups NOMADD and Liwwa reveal details about their latest funding rounds, and how they went about securing it. 72 ECOSYSTEM Sparking innovation The Arab world has seen more new accelerator programs launch in recent years than ever before, says a new report. 14 EDITOR’S NOTE By Aby Sam Thomas 58 ‘TREPONOMICS: ESQUIRE GUY HowThe Esquire Guy’s guide to profanity in the office According to Ross McCammon, there are times -in business and in life- when unhinged and manic are exactly what you need to be. Puneet Chhatwal, CEO, Steigenberger Hotel Group 76 The K500 smartphone by Four 42 ‘TREPONOMICS: MARKETING Win the war for talent Bayt.com’s Lama Ataya explains how employer branding can help your company be perceived as a great place to work. 50 SKILLSET Pitch perfect Pitching is basically telling a story, one that keeps your audience hooked- here are four tips to tell your startup story better. 16

Page 5

Page 6

Entrepreneur july 2016 6 CONTENTS JUly 2016 27 Henri Asseily, Manager Partner, Leap Ventures Reed Hastings, CEO and co-founder, Netflix Achieving Women Forum 2016 37 Faisal Al Bannai, CEO, DarkMatter 56 CULTURE: TRAPPINGS ‘Trep gear The executive selection for the entrepreneur on your list that has everything. Okay, maybe for a little self-reward as well. 82 LIFE Starting from scratch Do you know why you’re doing what you’re doing? InnerFight founder Marcus Smith explains why knowing this matters when you are an entrepreneur. 46 SKILLSET Overcoming obstacles TripScout founder Konrad Waliszewski offers seven tips for startups operating in emerging markets to match up to their Silicon Valley peers. 54 TECH: SHINY #TamTalksTech Gadgets and doodads that you might’ve missed out on, sourced by a tech aficionado. Yes, it’s okay to want them all… and no, it’s not our fault. 30 HEC Paris in Qatar 56 Aspinal of London Passport Cover

Page 7

An oasis of tranquillity The epitome of modern luxury Discover the Hormuz Grand Hotel, Muscat HORMUZ GRAND HOTEL, MUSCAT Explore www.hormuzgrandhotel.com MUSCAT EDINBURGH KUWAIT QUORVUSCOLLECTION.COM

Page 8

BREITLING.COM At the heart of the most extreme missions you’ll fi nd exceptional men prepared to entrust their security only to the most high-performing instruments. At the heart of exceptional missions you’ll fi nd the Breitling Avenger. A concentrated blend of power, precision and functionality, Avenger models boast an ultra-sturdy construction and water resistance ranging from 100 to 3000 m (330 to 10,000 ft). These authentic instruments for professionals are equipped with selfwinding movements offi cially chronometer-certifi ed by the COSC – the only benchmark of reliability and precision based on an international norm. Welcome to the world of extremes. Welcome to the Breitling world.

Page 9

WELCOME TO OUR WORLD SUPER AVENGER II

Page 10

Entrepreneur july 2016 10 SUBSCRIBE Contact subscriptions@bncpublishing.net to receive Entrepreneur Middle East every issue EDITOR IN CHIEF Aby Sam Thomas editor@bncpublishing.net CEO Wissam Younane wissam@bncpublishing.net MANAGING DIRECTOR Walid Zok walid@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net CREATIVE LEAD Odette Kahwagi STARTUPS SECTION EDITOR Pamella de Leon COLUMNIST Sindhu Hariharan COLUMNIST Tamara Clarke COLUMNIST Shoug Al Nafisi COLUMNIST Erika Widen EVENTS LIAISON Mark Anthony Monzon PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Entrepreneur Middle East contact sales@bncpublishing.net All rights reserved © 2016. Opinions expressed are solely those of the contributors. Entrepreneur Middle East and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Entrepreneur Media Inc. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Printed by Raidy Emirates Printing Group LLC www.raidy.com Images used in Entrepreneur Middle East are credited when necessary. Attributed use of copyrighted images with permission. All images not credited otherwise Shutterstock. Lama Ataya Philip Bahoshy Tamara Bullock James Clear Sirine Fadoul Miklos Grof Konrad Waliszewski Qais Al Maskati Ross McCammon Shakeeb Saqlain Tareq Samara Marcus Smith CONTRIBUTING WRITERS www.entrepreneur.com/me Access fresh content daily on our website! MIDDLE EAST EntMagazineME @EntMagazineME Entrepreneur-me EntrepreneurMiddleEast EntMagazineME EntMagazineME EntMagazineME MIDDLE EAST In addition to our print edition, we’re bringing you all sorts of industry news on our web mediums. Joining us online means getting relevant business and startup content in real-time, so you’re hearing about the latest developments as soon as we do. We’re looking forward to interacting with our readers on all of our social media and web platforms- like any thriving business, we’re looking to give and take. #TrepTalkME is already happening on all of our digi platforms, and all good conversations go both ways. See you on the web!

Page 11

Enjoy a 3-night escape to the shores of the picturesque Arabian Gulf, only a 30-minute drive from Downtown Dubai, and pay only for 2 nights. Your unforgettable stay includes a complimentary buffet breakfast, free Wi-Fi, access to the 500-metre private beach and a late check-out. * Terms and conditions apply and the offer is valid until 8 September 2016. Kempinski Hotel Ajman your perfect getaway...

Page 12

Page 13

Page 14

Entrepreneur july 2016 14 I n the midst of all the congratulatory messages and notes of encouragement that I received for my new role as the Editor in Chief of Entrepreneur Middle East, I must admit here that I was a little surprised by the memos that asked me how wary I was about taking on this role, given that it is (indeed) an enormous responsibility, and that I’d be needing to fill some pretty big shoes. Queries like these always left me at a bit of a loss on how to answer: while I am, of course, well aware of the nature of this position and its importance thanks to all that we have accomplished so far at Entrepreneur, do I really want to be starting on this role with a notion of fear built into my psyche? As I delved further into this thought (yes, I do have a habit of spending hours and days on existential ques- tions and the like), it quickly became apparent to me that it is sentiments like these (which are often said with- out any hint of malice what- soever) that entrepreneurs often hear from their friends, family, and just about anyone when starting up their own enterprises. “How does it feel to leave the calm confines of a corporate job to start a venture that’s barely making any money?” Or, “Aren’t you afraid of leaving behind a monthly paycheck to start up a venture that you don’t even know will work?” At first glance, one may be inclined to deem these as being realist ques- tions that people starting up new roles or ventures should absolutely keep in mind. But do consider, for a moment at least, to whom you are pos- ing these queries to. More often that not, these are people who have performed quite well in their existing endeavors, and are now starting up on a new journey that they have -almost certainly- thought about quite a bit, and are now gearing themselves up for the challenges ahead. At this point in time, these individuals have weighed the pros and cons of what they are setting out to do, they are pretty aware of the hurdles that will be staring their faces, and they are also probably having an inner monologue of sorts that pits themselves and their self- doubt against each other. Now, here, considering your role as a friend or an ally, should you be saying some- thing that adds to their feel- ings of insecurity, or should you take on an approach that is, well, a little more sup- portive in nature? This is not to say that you should not call a spade a spade, or not be the voice of reason when this person is seemingly lost in their castle of dreams- but do be appreciative of this entre- preneur’s track record so far, their own particular set of skills and talents, and their abject belief in what they are about to set out to do. After all, as cliché as it may sound, your support can mean a lot to your friends when they are starting on their new journeys. As for me, having worked with Entrepreneur for quite a while, and having experienced first-hand the sheer hard work, the strug- gles we face on a day-to-day basis, and the massive effort that goes into building this publication: let’s just say that I don’t expect any of that to change in my new role here. I, and my team here, re- main as committed as ever to this publication. We’ve had a good run so far, and we’re more than ready to take it to the next level. Personally, I’m quite glad about the high bars that we have set for ourselves- if anything; it keeps us on our toes, and in touch with reality every day. So, in response to whether I’m wary of what lies ahead: well, I say, just bring it on. I think we’re ready. EDITOR’S NOTE Aby Sam Thomas Editor in Chief @thisisaby aby@bncpublishing.net Looming large Ask a big question… get a big answer

Page 15

july 2016 Entrepreneur 15

Page 16

Entrepreneur july 2016 16 IN THE LOOP Fishy business Y es, you read that right. Norwegian startup MiniPro beat four other finalists to take home NOK1 million in funding after winning the final round of the Angel Challenge pitch competition at the Startup Extreme conference in Bergen, Norway. With the aquaculture sector in Norway continuing to grow, MiniPro aims to solve an industry-spe- cific issue of live feed produc- tion for fishes- besides being an expensive process, live feed supply is often limited, and adding to the problem is the fact that fish larvae aren’t able to digest nutrients in artificial feed. So how does MiniPro fix this issue? By developing and producing baby food specifically for baby fish. Through a series of R&D experiments, MiniPro has been able to develop an alternative for live feed that can be easily consumed by fishes. The startup’s solution comes at an opportune time, as the aquaculture industry is growing in markets like the European Union, Eastern Europe, U.S. and Asia. According to the Norwe- gian Seafood Council, Norway has exported salmon worth NOK57.7 billion in 2015, which increased 9% from NOK3.9 billion in 2014, despite a closed border with Russia. TechCrunch remarked that a noticeable trait among Norwegian startup scene is that it focuses on tradition- ally strong markets such as oil, gas, shipping and fish. The country’s government is also get- ting in on the startup scene- it had, along with Innovation Norway, a government organization dedicated to developing the country’s enterpris- es, given away NOK100 million in matching capital to match investments in Norwegian startups. Certainly, with all of its increased efforts to support startups through mentorship, training and finan- cial assistance- we can’t wait to see more from the nascent ecosystem. And MiniPro’s success just goes to show that sometimes, entrepreneurs need to take a close look at a nation’s constant problems and create solutions for it. Norwegian fish food startup wins top honors at Angel Challenge 2016 MiniPro founder Ingmar Hogoy MiniPro founder Ingmar Hogoy at Angel Challenge 2016 F orget weapons or martial arts, all you need is a button on your bicycle to feel safe riding through streets of London. The Give a Beep initia- tive by Swedish company Hövding (which produces airbags for cyclists) and PR platform Mynewsdesk aims to make cyclists’ journey through London’s urban roads safe and comfortable. By pressing a Flic button attached to the handlebars of a cycle, cyclists can “beep” out hazards whenever they feel unsafe or uncomfort- able while riding through the streets of the city. Thanks to the button’s connection to the cyclist’s phone through Bluetooth, the location data is fed into a crowdsourced map with the aid of the Flic app, marking out routes considered hazardous for cyclists, while also collating data on environ- ments where riders felt unsafe. Further, in order to make it more effective, each press of the button also triggers an email to be sent to the city’s Mayor about the cyclists’ situ- ation. According to a BBC report, the month of May 2016 saw deaths of 11 cyclists and pedestrians on London’s roads, and there have been increas- ing demonstrations and protests for fixing this particular problem. Currently, Hövding has distributed 500 Flic buttons to members and supporters of the London Cycling Campaign -a 12,000+ members group that lobbies for better cycling conditions in the city– urging them to “give a *beep*” about cyclist safety. According to a statement by Hövding, though people of London are increasingly enthusi- astic about cycling, “the infrastructure doesn’t allow it,” and hence the initiative hopes to let cyclists themselves report about places that need attention. Amy Summers, campaign coordinator, London Cycling Cam- paign, hopes that the 500 Londoners giving “a beep” will remind London’s Mayor Sadiq Khan to work on fulfilling his election pledge of making London cycle-friendly. According to a report by the Washington Post, the map had 1,000 locations logged for its unsafe conditions in just a week’s time. New tech-enabled initiative aims to make London safer for cyclists Giving a beep about safety Give a beep initiative minipro images by Dan Taylor, Heisenberg Media | give a beep images courtesy hovding

Page 17

Page 18

Page 19

Page 20

Entrepreneur july 2016 20 FOLLOW THE LEADER Our picks for ten business leaders across different industry sectors who have impacted the MENA market, and continue to shape its corporate trends Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges Brought to you by thumbay moideen thumbay group H.E. Abdul Aziz Al Ghurair Abdulla Al Ghurair Foundation for Education Roy Nouhra ASIS Boats Ahmed Abou Hashima Egyptian Steel Mona Ataya Mumzworld Faisal Al Bannai DarkMatter Raghu Malhotra MasterCard H.E. Hamad Buamim Dubai Chamber Laoucine Kerbache HEC Paris in Qatar Puneet Chhatwal Steigenberger Hotel Group

Page 21

july 2016 Entrepreneur 21 A s the Presi- dent and CEO of an enterprise that has played a key and active role in supporting the busi- ness community in Dubai for the last 50 years, H.E. Hamad Buamim is emphatic on the business sector being “the vital ingredient” contributing to the future of Dubai- and you can rest assured that the Dubai Chamber of Commerce and Industry will continue its bid to support and propel business growth in the Emir- ate. “Considering that innova- tion is a fundamental pillar in Dubai’s excellence and growth strategy, the vision of Dubai Chamber is to be a center for creativity and innovation in the private sector by offer- ing innovative programs for the business community,” Buamim says. “The Chamber will continue to contribute to the development of Dubai and the UAE through its various initiatives and activities. Our ambitious plans have taken us to overseas markets, and we are actively involved in the ef- forts to connect Dubai’s busi- ness community to a range of markets from Central Asian countries and West Africa to Latin America. With its global potential, the Chamber will continue to represent Dubai’s development agenda, and strengthen Dubai’s reputa- tion as a leading investment destination.” Dubai Chamber’s focus on the private sector has led it to initiate several different campaigns and programs for it, and its recent announce- ment of The Mohammed Bin Rashid Al Maktoum Business Innovation Award is another step in this regard, Buamim notes. “The Mohammed Bin Rashid Al Maktoum Business Innovation Award has been conceived as an effective platform to stimulate innova- tion in the private sector, and help business enterprises to improve their operational performance,” he says. “By supporting innovation in various economic sectors, the award will enhance the ability of the business com- munities to grow and expand in the domestic and global markets. The Mohammed Bin Rashid Al Maktoum Business Innovation Award will also encourage national companies and organizations to adopt in- novation, both in their opera- tions and services, which will not only enhance the stature of the country in global competitiveness reports, but will also help the UAE to support and develop various businesses to improve best practices, while recognizing them for their contribution to the overall economic growth of the country. The award will go a long way in stimulating various economic sectors to move towards innovation, and will also support the country to strengthen its global innovation index in line with the targets of UAE Vision 2021. It will also in- spire entities in both the public and pri- vate sectors to spend more on research and development, and build a sustainable knowledge-based economy.” Given the sheer scope and range of activities that Dubai Chamber as- sociates itself with, and how successful they turn out to be, it must be said here that Buamim’s leadership of the institution is, by itself, some- thing that is worthy of praise. Interestingly enough, when asked what drives him to perform as he does in his role, Buamim points back to his organization and his nation. “It is certainly a matter of great pride and satisfaction to contribute to Dubai’s growth as the leading business center in the region,” Buamim ex- plains. “To derive the energy to achieve this task, and get inspired every day to take the step towards the future, you don’t need to look elsewhere. My personal leadership strat- egy is built on the aspirations of Dubai, and the vision of its leadership to ensure the Emirate’s position as an inno- vation hub, and the ultimate place to do business.” H.E. Hamad Buamim “ President and CEO, Dubai Chamber of Commerce and Industry “Dubai Chamber believes that enterprises of the future will be capable of adopting real-time and applicable business practices that can create value and foster business growth. Innovation will be their hallmark, both in their operations and services, which will enhance the stature of the country’s global competitiveness.” Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER H.E. Hamad Buamim, President & CEO, Dubai Chamber The Q What, according to you, is the importance of Dubai Chamber’s Tejar Dubai initiative for Emirati entrepreneurs in the UAE? The A “The Tejar Dubai program prepares young Emiratis with extensive skills and knowledge to gain enough confidence to enter and succeed in the competi- tive world of business. It is a model initiative that sup- ports our young men and women to enter the world of entrepreneurship, enabling them to build on the success of the first generation of Dubai traders. The program is dedicated to provide a tailored individual learning experience to selected aspi- rant entrepreneurs, and help foster the development of a more diverse, knowledge- based economy to enhance Dubai’s position in the global economic landscape. The program will have a key role in ensuring the future growth Dubai’s economy, well after the end of the oil era.” Ask the exec H.E. Hamad Buamim IMAGE COURTESY: DUBAI CHAMBER

Page 22

Entrepreneur july 2016 22 T humbay Moideen’s charming, unassuming manner can come as a bit of surprise when one meets with him for the first time- after all, the Founder President of the Thumbay Group is someone who established an enterprise that started out in 1998 with a path-breaking educational institution, and has since grown into what is today an international business conglomerate with a presence in 16 different industry sectors, which includes everything from retail to real estate. But ask Moideen to what factors he attributes his company’s success to, his modesty is easily apparent when he answers with a deference to the Thumbay Group’s brand motto: Growth Through Innovation. “Since its inception, Thumbay Group has been led by the vision to innovate, and the mission to explore new growth avenues,” Moideen says. “Our growth through the years has been driven by a strong set of val- ues, comprising of excellence, trust, knowledge, innovation and integrity. We have always stuck to the core of ethicality.” And if his business’ current status is any indication, then those are the principles every entrepreneur should be basing his or her enterprise on- it’s quite clear that Moideen has dreamed big with the Thumbay Group, and make no mistake, he hasn’t stopped dreaming big either. “All of our businesses are growing as per plans, and we aim to scale up our existing businesses at least 10 times more in the next five years,” Moideen reveals. The story of how Moideen started the Thumbay Group in the UAE has become some- what of a legend in business circles in this region- the short version of the story is that Moideen had a chance meeting in 1997 with a member of Aj- man’s royal family, who asked him for ideas on projects that could help boost the Emirate’s economy. Moideen proposed an educational institution modeled on the likes of a similar establishment he had seen in the state of Karnataka in India, and lo and behold, Moideen was invited to initi- ate and lead the creation of a medical academic center in Ajman. While Moideen didn’t have any experience or knowledge about this space at the time, he did see the opportunity inherent in the idea, and decided to swoop in and try to capitalize on it. The gamble paid off- 1998 saw the establishment of Gulf Medi- cal College, and it grew into what is today Gulf Medical University, one of the most sought-after private medical universities in the region. >>> Moideen Thumbay Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER Founder President, Thumbay Group “Innovation is such an important aspect that nowadays, rather than just a word, it’s a culture that every company must follow. If an organization is stagnant, it will not survive; innovation is indis- pensable for growth. The culture of innovation has to permeate each department and employee, so as to achieve gains like efficiency and cost-effectiveness, and to accom- plish the organizational goals.”

Page 23

july 2016 Entrepreneur 23 Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER “Thumbay Group is con- stantly striving to ex- pand its operations and reach to all parts of the globe- as such, we are always keen to partner with and support individ- uals and organizations who are enthusiastic about entrepreneurship and innovation.” Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER Thumbay Moideen, Founder President, Thumbay Group

Page 24

Entrepreneur july 2016 24 Along the way, driven by a need for teaching hospitals for his students, Moideen ventured into the healthcare provider business as well- the first Thumbay Hospital came into being in Ajman in 2002, and today, it boasts of locations in the Emirates of Dubai, Sharjah and Fujairah, as well as in Hyderabad, India. The Thumbay Group has made inroads into other sectors as well- for instance, there are the health, nutri- tion and wellness stores run- ning under the name of Nutri Plus Vita Stores, a coffee shop chain (Blends & Brews), the network of spa facilities (Body & Soul Health Club & Spa), and a lot, lot more. But as is often the case with entrepreneurial success sto- ries, the above oft-repeated timeline makes it seem that Moideen had an apparently comfortable run in the world of business. However, noth- ing could be further from the truth- while Moideen does hail from a reputed business family in India, setting up the Thumbay Group in the UAE in a sector and country that were almost entirely in my career, there is definitely not an easy task. “One of the major challenges we faced as we set foot in the country was that we had chosen to enter a territory which was completely new to us,” Moi- deen recalls. “We have been faced with challenging situ- ations every now and then, but we’ve developed a work culture at Thumbay Group which keeps us committed to our goal and powers us with the passion to stick to our guns until the goal is achieved. I’m fortunate to have a team that has stood by me during the tough times.” But that was then- today, the Thumbay Group is on quite a solid footing (as is evidenced by its current billion dollar value in the market), and it is now looking to expand fur- ther. “Thumbay Group aims to expand internationally, creating a global presence,” Moideen says. “By 2020, we aim to develop 420 estab- lishments including three new university campuses in three countries, develop an alternative medicine hospital and college; as many as 15 new Thumbay Academic Hospitals in UAE and other countries; 100 Thumbay Pharmacy outlets; 25 Thumbay Labs; 100 Blends & Brews Coffee Shops; 25 Body & Soul Health Club outlets; 100 ZO and MO Opticals outlets; 50 Nutri Plus Vita outlets. The strategic growth plan will nearly double the group’s net worth to US$3 billion by 2020, from the current value of US$1.8 billion. This will also triple the 5,000 existing human resources to 15,000.” Now, those may seem like very ambitious plans, but once you consider that Moi- deen will be the one driving these initiatives forward at the Thumbay Group, it’s safe to say that those dreams are well within reach for the company. Moideen’s two sons are also helping with the realization of his grand vision for the enterprise- while Ak- bar Moideen Thumbay is the Vice President of the Health- care Division at the Thumbay Group, Akram Moideen Thumbay is the Director Op- erations for the Construction and Renovation Division of the company, and both sons are members of the Thum- bay Group Board as well, where strategic plans for the conglomerate are made and implemented. Moideen also doesn’t shy away from highlighting the importance of the contributions of his team to the enterprise- the executive team, in particular, is a case in point. “Finding a good executive team is very important, as these are the people who handle the major responsibilities,” he notes. “We are fortunate to have a strong HR department, which has a strong framework of human capital management. Thumbay Group is driven “We have been faced with challenging situations every now and then, but we’ve developed a work culture at Thumbay Group which keeps us committed to our goal and powers us with the passion to stick to our guns until the goal is achieved. I’m fortunate to have a team that has stood by me during the tough times.” Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER A Thumbay Group CSR initiative, a blood donation camp Thumbay Moideen receiving the Dubai Quality Appreciation Award in 2016 for Thumbay Hospital Ajman from H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum IMAGES COURTESY THUMBAY GROUP

Page 25

july 2016 Entrepreneur 25 by a strong set of values, the vision to innovate, and the unending quest for new growth avenues. We have a qualified team of executives who not only understand and appreciate the group’s mission and vision, but are also passionate to work for it. The members of my team are committed to ethicality, and have the spirit of innova- tion.” It’s interesting here to note that while Moideen continuously reiterates the importance of his team at the Thumbay Group, the Founder President continues to play a very hands-on role at the company- here is someone who believes in leading from the front, and knows the value of doing so. “As the driving force of the company, I constantly make sure that we keep up with the latest trends, as well as plan ahead,” Moideen says. “Act- ing as the facilitator for my team, I oversee all day-to-day operations, and at the same time, resolving problems and ushering in change.” Moideen’s particular style of leadership is easy to un- derstand when one considers his thoughts on what makes someone a great leader who inspires. “A great leader must live up to the highest standards of professionalism, in addition to setting the organization’s vision,” he says. “The helmsman of an organization must dream big for its growth and success. He/she must have the ability to take intelligent risks, while remaining optimistic at all times. People management is yet another important skill, and the leader must trust his/her team members, in turn earning their trust and confidence. Apart from the above, personally, I make sure that I lead my team from the front, taking care to infuse dedication, discipline and hard work at all levels of the organization.” In ad- dition, Moideen is a firm believer in giving back- be- sides the firm entrenchment of CSR in the culture of the Thumbay Group, he is also eager to see replications of his entrepreneurial success stories in the world around him, and so, he is a keen fol- lower and contributor to the entrepreneurial ecosystem at large as well. “I never miss a chance to interact with young and upcoming entrepreneurs and to do my bit to inspire them,” Moideen says. “More- over, Thumbay Group is constantly striving to expand its operations and reach to all parts of the globe- as such, we are always keen to partner with and support individuals and organizations who are enthusiastic about entrepre- neurship and innovation.” One instance of Moideen’s drive in this regard is Gulf Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER “The countries of the region are increasingly diversifying their economies and moving away from oil dependency. They are wholeheartedly welcoming investments in various sectors. Now is definitely a good time to start a business in the region.” Modular Operation Theaters, Thumbay Group >>>

Page 26

Entrepreneur july 2016 26 Medical University’s upcom- ing innovation center at its campus in Ajman. “The innovation center we are building at Gulf Medical University aims to enhance the culture of innovation, entrepreneurship and creativity, and to serve as a launch pad for innovative products and services,” he says. “In addition to serving as a contact point for scien- tists, faculty and students for medical innovation, it will also foster collabora- tions and partnerships with international institutions, universities, research labs, pharma companies and the healthcare industry.” As an entrepreneur who has seen much success with his various business ventures in the Middle East, Moideen continues to be encouraging of new entre- preneurs who want to set up shop in this region. “There are opportunities aplenty for entrepreneurs in the Middle East,” Moideen declares. “The visionary leaderships of the Middle East nations have laid a strong economic founda- tion for the region, as a result of which we have all these opportunities to- day.” Moideen also alludes to the changing dynamics of economies in the region as a potential advantage for entrepreneurs in the Middle East. “The countries of the region are increasingly diversify- ing their economies and moving away from oil dependency,” he notes. “They are wholeheartedly welcoming investments in various sectors. Now is definitely a good time to start a business in the region.” And given that comment comes from Thumbay Moideen, one may be wise to follow his words to the tee. Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER The Q You have often men- tioned that for you, doing business that also has a social element is important. Can you elaborate on this aspect, and what are the ways in which you implement CSR/social support in your business? The A “Doing business with a so- cial angle is part of the corporate culture of Thumbay Group. This is something that was imbued in me by the elders in my family, who themselves were successful businessmen. Corporate social responsibility is a full-fledged activity of Thumbay Group. The Thumbay Foundation was formed as a charitable trust established to support charitable activities in healthcare, education and social causes. Thumbay Foundation provides funds and support by the provision of schol- arships, grants, bursaries, awards, fellowships, endowments, dona- tions and other forms of financial assistance to students pursuing any level of education or training in any educational or training institution or establishment. Along with many other chari- table initiatives, Thumbay Group is at the forefront of business houses that see philanthropy as a duty to society and as an act of giving back rather than an act of charity. Our hospitals have dedicated Patient Affairs Departments, which ensure good treatment to the poor, at subsi- dized charges. We make sure that no patient is denied treatment because of his/her inability to afford. Our hospitals also conduct frequent medical camps for the public. At Gulf Medical University, we give scholarships to deserving, meritorious students to pursue medical courses of their choice through our Care & Share pro- gram. GMU sponsors around 20% of its students.” Ask the exec Thumbay Moideen Akbar Moideen Thumbay, Thumbay Moideen and Akram Moideen Thumbay.

Page 27

Porto Arabia Towers Doha, Qatar ������������������������������ Hill International The Global Leader in Managing Construction Risk www.hillintl.com ����������������������������������������������������������������������� ��������������������������������������������������������������������� �������������������������������������������������������������������������� ������������������������������������������������������������������������ ������������������������������������������������������������������������� ��������������������������������������������������������������������� �������������������� ���������������������������������������������������������������������������� ��������������������������������������������������������������������� ������������������������������������������������������������������������� ����������������������������������������������� �������������������������� ������������������������� �������������������������� If you can imagine it, we can manage it. �������������������� Doha, Qatar �������������� Doha, Qatar Viva Bahriya Towers Doha, Qatar

Page 28

Entrepreneur july 2016 28 H.E. Abdul Aziz Al Ghurair Chairman Abdulla Al Ghurair Foundation for Education “There are always opportunities for an entrepreneur in any economy. You need to have a keen eye to identify an opportunity, and work hard with great passion to re- alize your dream. The Arab region is full of opportunities, and we have innumer- able examples of people who have created large businesses through hard work.” Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER The Q What do you con- sider to be challenges in finding a good executive team for your enterprise? The A “Selection of the right team is critical for the success of an organization. I do not think it is very difficult to do so in today’s world, where talent mobility is global. However, the challenge is the identification of the right talent through a thorough selection process and use of the right assess- ment tools. I spend a consider- able time in interviewing senior members of my team. For me, the right behavior is critical, as technical skills are easy to learn and improve, but behavioral change is far more difficult. To retain the right talent, first, they must have a share in success, but equally important is a conducive work environment and a sense of empowerment.” Ask the exec H.E. Abdul Aziz Al Ghurair H.E. Abdul Aziz Al Ghurair, Chairman, Abdulla Al Ghurair Foundation for Education IMAGES COURTESY: ASIS BOATS T o say that Mashreq CEO H.E. Abdul Aziz Al Ghurair dreams big with whatever he does would probably be an understatement. Consider his latest endeavor, the Abdulla Al Ghurair Foundation for Education, of which he is the Chairman. Set up by his father, Abdulla Ahmad Al Ghurair, one of the UAE’s most prominent and successful businessmen, the Foundation was established in July 2015 with a mandate to “provide high-achieving, underserved Emirati and Arab students with the opportunity to study at a top university, and pursue a future in a STEM-related (Science, Technology, Engi- neering, and Math) field.” The objective is, obviously, a grand one, and the Foundation has got a budget to match- the enterprise has an investment of US$1.1 billion to spend over the next 10 years, making it one of the largest privately funded philanthropic educa- tion initiatives in the world. “My father’s motivation behind setting up the Founda- tion was very simple,” Al Ghurair says. “He wanted to tackle what he believes to be one of the greatest challenges facing the Arab world– access to quality education. Knowing that, there can be no better investment than in educat- ing today’s Emirati and Arab youth. Education is the great- est equalizer. Arab youth un- derstand that only education will help them overcome the challenges they face whether they are refugees or living in a poor rural area. Education will open doors for them to become the next generation of innovators, entrepreneurs and leaders. Over the years, my fa- ther has tried to help as many young people as he could on a personal level, and encouraged all of his children to do the same. Establishing the Foun- dation ensures that education philanthropy is his legacy to us, and [that it] continues to be deeply embedded in our family’s DNA, generation after generation.” While the Foundation may be a rather young organiza- tion, Al Ghurair proudly points out that it has made substantial strides in its first year- a strategy for the organi- zation is in place, as is a team (led by CEO Maysa Jalbout, who was previously the found- ing CEO of the Queen Rania Foundation in Jordan), and three programs have already been launched as part of this initiative: the Al Ghurair Young Thinkers Program, the Al Ghurair STEM Scholars Program and the Al Ghurair Open Learning Scholars Pro- gram. The speed at which the Foundation has accomplished all this is indeed noteworthy, but it is also necessary, when you consider the scale of its goals. “Over the course of the next ten years, we are com- mitted to ensuring that 5,000 Emirati students are ready to make the transition from sec- ondary to higher education, 15,000 Arab youth are sup- ported through educational opportunities, and 100,000s of individuals have access to cutting edge online learning,” Al Ghurair says. “The success of our Foundation will be determined by our ability to meet those commitments in the ten-year dedicated time- frame. We are implementing

Page 29

july 2016 Entrepreneur 29 Mashreq CEO H.E. Abdul Aziz Al Ghurair on why innovation is key to the bank’s success today (and in the future) The Mashreq story Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER Left to right: CEO Maysa Jalbout, Chairman H.E. Abdul Aziz Al Ghurair and Professor Eric Grimson, Chancellor for Academic Advancement, MIT at the launch of the Abdulla Al Ghurair Open Learning Scholars Program a rigorous monitoring frame- work that will track our prog- ress against these goals year over year. Our investments in a dedicated impact evaluation team and tailored electronic systems will allow us to con- fidently assess our reach as the Foundation scales to meet those large commitments. Naturally, we will ramp up our operations over time, reaching more high school, university, and online scholars year over year. To assess our long-term outcomes, we are designing a framework to evaluate our impact on different aspects of our scholar’s educational attainment. We will actively collect data on our annual cohorts to better understand if and how support from the foundation impacted their ability to pursue, enroll, and complete their studies.” It’s an ambitious exercise, to say the least, but it’s safe to say that the Foundation is safe in the hands of Al Ghurair. He is, quite simply, one of the UAE’s most accomplished business leaders- besides his role at Mashreq, he’s also a member of the board of directors of the Abdulla Al Ghurair Group of Companies, he’s the Chairman of the UAE Banking Federation, he’s the Vice Chairman of the Higher Board of Dubai International Financial Centre, he’s the Chairman of Masafi Company and Oman Insurance, he’s the President of the Family Business Network GCC: all of this is suffice to say that Al Ghurair has a lot of experience backing him up to govern the Foundation. One must also take into account the personal element driving Al Ghurair forward to push ahead with the Foundation. “For me, I am committed to implementing my father’s vision, and ensur- ing the Foundation is suc- cessful in achieving his dream of educating thousands of deserving young Emirati and Arab youth,” Al Ghurair says. “My business experience is very useful, but I am also delv- ing into the philanthropic and education sectors, connecting with some of the world’s most innovative minds and working with a highly qualified team at the Foundation. I consider this to be one of the most ex- citing challenges in my career. I am enjoying learning about the issues, and questioning the modus operandi. Being an engaged philanthropist rather than just a funder has given me a new appreciation for the challenge of making large scale impact in education and other issues. But, I am also more hopeful than ever that making impactful investments is possible. I am energized and somewhat impatient for the first Al Ghurair STEM Schol- ars to begin university in Sep- tember 2016. I look forward to watching the course of their new lives, and what they will make of it.” “Mashreq has been a leader in a number of areas in the UAE and the region, and we plan to continue doing so in the years to come. Our goal for the next five years is to ensure that we fulfill cus- tomer expectations across all bank functions. The customer is becoming more sophisti- cated, so what we used to do three years ago is no longer sufficient. We must continue to innovate and not only meet our customers’ expectations, but exceed them. Innovation is in our DNA, and it is what defines Mashreq in everything we do. Innovation is the lifeblood of Mashreq– and perhaps what Mashreq is best known for. There is a long list of things that Mashreq has introduced to the market– ATMs, retail banking offerings, traveler’s checks, etc. in addition to more recent breakthroughs in digital and mobile banking. One example of an innovative product was the launch of the Mashreq Millionaire in 1994. Today, most banks have products of that sort, but we were the first to offer it. Mashreq embraces consis- tent change to innovate and stay ahead. Our conscious decision to invest in our digital channels and change the way we communicate and market to our customers is an example of that. Our inno- vation ensures we are where our customers want us to be. Technology has been criti- cal in helping us regain our status as one of the most innovative banks in the region. Our investments in innovation in state of the art technologies have helped Mashreq rapidly deliver unique products that keep us ahead of the competi- tion. Mashreq is also first in implementing iStatements, interactive statements. With the increased use of electronic channels, technol- ogy is focusing on high availability of customer touch points like ATMs, CCDMs, mobile, online, IVRs and POS. Mashreq continues to invest in SMAC -Social, Mo- bile, Analytics and Cloud- and key innovation agenda items in this space. It has also restructured itself to strongly align with its business part- ners and thus build a strong customer-focus. The key drivers behind Mashreq’s innovation initiatives is omni-channel convergence, which is aimed at migrating our current physical and traditional distri- bution channels to a resilient and robust digital business model. Delivering a compel- ling, simple, friction-free, and trusted digital banking experience to customers has been supported by the UAE’s superior connectivity and smartphone penetration levels, and the government’s desire to create a Smart City. An always-connected tablet and smartphone is fast becoming the norm amongst the working population, and leveraging the mass consumption of video content and real-time data analytics, Mashreq is driving change by radically redesigning the services we offer to our customers. No longer intent on just providing traditional banking services and prod- ucts, the bank is executing its multi-distribution strategy to become the everyday bank and primary financial app of the consumer.”

Page 30

Entrepreneur july 2016 30 Laoucine Kerbache Dean and CEO, HEC Paris in Qatar “The Qatar National Vision 2030 plans to diversify the non-hydrocarbon economy and recycle the country’s mineral wealth into finance, infrastructure, education, science and technology, and real estate. For those with the knowledge and skills within those fields, this presents an op- portune time to invest and establish a business that caters to the needs of the nation. By being an early adopter of such plans, you can reap in the benefits and create a firm base to grow and prosper.” Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER Laoucine Kerbache, Dean and CEO, HEC Paris in Qatar accepting the Education Innovation award from Qatar Chamber Vice Chairman Muhammed bin Ahmed bin Towar Al Kuwari at the 2015 Qatar Enterprise Agility Awards IMAGES COURTESY: HEC PARIS IN QATAR A s the head of the Qatar division of an institu- tion that’s been ranked among the top three providers of execu- tive education in the world, it’s safe to say that Laoucine Kerbache has a lot on his plate in his dual role as the Dean and CEO of HEC Paris in Qatar. But to his credit, Kerbache seems to have been playing his cards right- ever since the France-headquartered HEC Paris opened its campus in Qatar in 2010, the school has been steadfastly sticking to the goals with which it was established- which is, as Ker- bache puts it, “to significantly contribute to the development of a knowledge-based economy in Qatar, and to strengthen corporate competitiveness in the region.” And for what it’s worth, Kerbache’s efforts are certainly getting noticed- at Entrepreneur Middle East’s 2015 Qatar Enterprise Agil- ity Awards, HEC Paris in Qatar took home the award for Education Innovation, in recognition of the institution’s highly ranked, Qatar-specific management programs and research activities, as well as for its influential list of Qatar- based graduates, which today includes H.E. Sheikha Hind bint Hamad Al Thani, Vice Chairperson and CEO, Qatar Foundation for Education, Sci- ence and Community Develop- ment, Aysha Al Mudahka, CEO, Qatar Business Incubation Center, and others. But all of this doesn’t mean that Kerbache and his team at HEC Paris in Qatar are taking their success for granted- on the contrary, Kerbache is very tuned in on the changing dynamics of the Middle East economies, and is keen on having his organization cater to the specific needs of this particular region. While the Doha-based school’s executive education programs have been consistently lauded, Kerbache also notes the importance of evolving their programs and offerings to better serve its students in this region- for instance, its custom programs, especially with respect to family-owned businesses in this region, have been very well received. “When HEC Paris opened its campus in Qatar, it was paramount that we didn’t just take our programs from Paris and apply them here,” Kerbache explains. “For degree programs, as well as for open programs, we asked our faculty to understand the local and regional environment and to inject, alongside the interna- tional practices, any relevant managerial practices to enrich the content and the group dis- cussions. As for the custom de- signed programs, we work very closely with the customers to design content that specifically cater to their needs and their requirements. We have worked very closely with our main campus [in Paris] and with Qatar Foundation to ensure that the courses and programs that we offer are tailored to the regional needs.” But, to use a cliché, the proof of the pudding is in the eating, and Kerbache proudly points toward HEC Paris in Qatar’s graduates to showcase the wins his school has achieved. “A tes- tament to this success is that, to date, HEC Paris in Qatar has graduated 347 participants, of whom 220 are Qatari nation- als,” Kerbache says. “All these graduates hold top executive management positions (CEOs, COOs, CIOs, CFO, etc.) in pub- lic, private, and governmental organizations in Qatar and in the region.” While this is indeed a reason to celebrate, Kerbache remains rooted to the need for HEC Paris in Qatar to be consistently evolving and innovating. “We cannot rest on our laurels, and we continually strive to deliver excellence to our participants,” he explains. “And as business models change, we have to develop our programs offered as well as create adaptable es- tablishments and grow through alliances. This has become an integral part of modern strate- gic management. In addition, and an area I am very proud of, HEC Paris in Qatar has established a Research Office in Qatar to develop local and regional content. Over the last two years, we have success- fully developed over a dozen case studies about companies operating in Qatar. This has not only fed into our programs,

Page 31

july 2016 Entrepreneur 31 Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER The Q What were some of the challenges you encountered in finding a good executive team for your enterprise? The A “These are very challenging issues in Qatar and in the region. As we focus on executive education, we chose to rely essentially on our home campus pool of full-time and affiliate faculty to staff most of the academic positions, including the executive team. Therefore, we benefit from a great network of experienced and highly qualified professors. Further, this enabled us to operate with mostly variable costs. As for the support staff, the local market provides opportunities to meet the demand. However, it is important to stress the need to train these people to fit into a rigorous academic environment, and we achieve this through training and frequent staff exchanges with our main campus in France. Of course, one of the main challenges in the region for many companies is retention. With increased competition it is vital that talent management and talent retention are and should remain top priorities. Executive education is a major lever to unlock the talent of managers and executives, of whom some become true leaders and agents of change leading to competitive and sustainable edge. These are some of the key success factors that CEOs and Presidents know well, but they need to be implemented.” Ask the exec Laoucine Kerbache HEC Paris interior but also ensured that what we offer remains relevant for tomorrow’s leaders.” Speaking of leadership, Kerbache has set himself a very straightforward goal (albeit a rather arduous one) in his role as the CEO of HEC Paris in Qatar. “Personally, I have been leading my team to continue increasing the profile of HEC Paris as the preferred institu- tion for executive education and higher learning in Qatar and the region,” he says, quite simply. “Over the next five years, the objective is twofold: first, we plan to consolidate the existing programs, as well as developing new executive education programs in Qatar and in the region. Second, we shall continue to develop our applied research activities by working more closely with our main campus in Paris, and with companies based in Qatar and in the region. More than a dozen case studies have been developed with the objective to integrate them alongside international cases in the modules offered in Doha. We will continue to build upon them.” Kerbache’s plans are thus in line with the country’s vision for being a knowledge- based economy in the years to come, as per Qatar National Vision 2030. “HEC Paris in Qatar understands this, and while its programs and re- search activities aim to shape business development within the global economy, they are also fully aligned with what Qatar National Vision 2030 seeks to achieve,” Kerbache notes. “Overall, the imparting of world-leading executive education in Qatar is only ever going to have a positive impact on the knowledge ‘levels’ of the host economy. Our goal as an educational institution is not to be a carbon copy of our cam- pus in France, but to support the transformation of Qatar. This being said, having a pres- ence in Qatar brings something unique to HEC Paris’ portfolio. Primarily, being present in a burgeoning marketplace such as Doha, we have access to the business community, which fuels our capacity to create knowledge, which then feeds in to our global teaching activi- ties.” As someone who is focused on building “tomorrow’s lead- ers,” Kerbache is clear that leadership today, be it as an entrepreneur or as the head of a corporate, needs to be dynamic and in tune with the times, and this is a principle he follows through on as his personal strategy for himself, as well as for HEC Paris in Qatar. “The global marketplace today is under a number of pressures, requiring successful leaders to contend with stiff global competition, political and security turmoil and adverse financial effects,” he notes. “To be able to overcome these challenges, it is impera- tive that a leader is equipped with the right knowledge and skills to steer their business through this minefield, and in most cases, this knowledge is obtained from their peers. In all programs offered at HEC Paris in Qatar, we enable par- ticipants to share knowledge and leadership approaches with peers coming from diverse cultural, educational and professional backgrounds as well as world-class renowned faculty, researchers and guest speakers. I am confident that that our graduates will be among the new leaders of today and tomorrow, and who will steer their organizations to greater heights. At HEC Paris in Qatar, as a firm believer in a customer-centric approach, I follow a similar mantra with regular meetings with faculty and alumni to understand areas of improvements to our programs and offerings for the benefits of our participants and to corporate partners. Only by consolidating feedback and knowledge from all our shareholders can we develop and sustain a competitive edge in the MENA market.”

Page 32

Entrepreneur july 2016 32 Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER T he life of an entrepreneur is not an easy one, and it’s not for every- one.” If that statement of hers is any indication, then Mumzworld founder and CEO Mona Ataya is someone who doesn’t believe in sugarcoat- ing things- in a region where being an entrepreneur has somehow become the new cool thing to be, Ataya is the voice of caution for the upstarts with stars in their eyes. “It’s a 24-hour job, 365 days a year,” she says. “It’s ridden with pressure and expectations. I had to be ready to give up a lot of things for myself, like sleep, me-time, health, and even friendships.” Okay, so entrepreneurship’s not as glamorous as some might like to think- but why do it then? “You push yourself, because you are driven by a vision and a commitment to doing something impactful and im- portant,” Ataya replies. “In my 16 years as an entrepreneur, I have seen failed projects, wrong hires, disappointing outcomes, and worse, almost daily. There are days when you wake up and you are exhaust- ed and overwhelmed, but you still get up and do what you have to do. You reach out to the grit in your soul to push you through another day. And whenever you feel it cannot get any worse, it does– and then suddenly, you see the light at the end of the tunnel, and the vision shines bright again. If I had to list all the difficulties and disappoint- ments [of being an entrepre- neur], I would [have to] write a novel, not a paragraph!” With this being the case, Ataya is insistent on wannabe entrepreneurs to be very clear about their reasons behind getting into this field. “The only advice I would give is this: be 100% sure of why you are doing what you are doing. If your why vision is compelling and important enough to you, then just keep on tracking along. Be smart, be creative, surround yourself with winners, and you will get to where you need to be eventually.” And if you need any proof of this concept, just look at Ataya’s own story for inspiration: since its launch in 2011, Ataya’s Mumzworld has become the leading online marketplace for all things mother, baby and child in the Middle East- and don’t forget the fact that it was the first such enterprise of its kind in this region. The company has been growing from strength to strength, with its latest announcement of note being its multi-million dollar Series B investment from a mix of investors that include Wamda Capital, twofour54, Endeavor Catalyst and more. “The funds will be used to continue scaling the business both in the UAE and KSA, and [then] across the entire GCC, fol- lowed by the rest of MENA,” Ataya says. “KSA, this year, has become a key market for us, as has Qatar. We will con- tinue to grow these markets, and others.” There is no question that Mumzworld’s successes have a lot to do with Ataya’s leadership of the enterprise, and when asked about her modus operandi for doing so, she throws the attention on her team at the company. “We try to hire people with ownership and accountability in their DNA,” she explains. “They take responsibility for their successes and mistakes. We hire people who want to build excellence, not average products. We hire people who believe that building a great company is about building a customer experience that is bullet proof and superior. We hire people who want to change the world and create positive social impact. We hire people who are not only super smart on paper, but can analyze daily challenges and come up with practical, cost effective and creative solutions. We hire people who believe that innovation is key to growth and being comfort- able is not an option. To build great companies, you hire great people– that is my man- tra.” But Ataya is quick to also note that getting together a great team is not an easy thing to do. “Hiring in a startup or SME environment is one of the greatest challenges,” she admits. “That’s because you expect people to work harder than they ever worked, make less mistakes than they ever did, earn less and work in an ever-changing, risky, fluid, unstructured environment with limited processes. How many people do you know would willingly do that? Not many- unless they are sold on your vision: your why. If they believe in the company, what it stands for, and its mission, then you can attract people who share that vision. It’s not easy, but it can be done– with a lot of trial and error.” Mona Ataya “ Founder and CEO, Mumzworld “The world conspires to present to you opportunities that you are ready for. Call it fate, or luck; I am a believer in both. You can create your own luck by being ready to take on opportunities through a lifetime of hard work, commitment and preparation. The more prepared you are, the more opportunities come your way.” Mona Ataya, founder and CEO, Mumzworld The Q In your current role, what do you consider to be among the most important things you do to ensure your enterprise functions as expected, and, at the same time, grows as well? The A “Have the smartest people, sitting on the right seats, doing the job that they are best at. We have not always got this right. In fact, we have made many mistakes along the way, and will likely continue making mistakes. But my personal #1 priority is ensuring that Mumzworld continues to attract the best talent out there. Secondly, build bulletproof operations that contribute to a superior customer experience. Our customer is at the core of everything we do. As a cus- tomer-obsessed organization, everything we do daily is about improving that experience.” Ask the exec Mona Ataya IMAGES COURTESY: MUMZWORLD

Page 33

july 2016 Entrepreneur 33 H aving returned to the UAE after a busi- ness education in the United States, ASIS Boats founder and President Roy Nouhra’s enthusiasm for water skiing, car racing and everything mechanical -coupled with “a passion for innovation”- prompted him to launch his company as a new arm to his family business, the 50-year- old Solico Group, special- izing in the manufacture, contracting and trading of electro-mechanicals. Nouhra established ASIS Boats, manufacturers of rigid inflat- able boats (RIB) and provid- ers of end-to-end maritime services, in 2006, catering to three vastly different customer verticals -military, professional and recreation- al- in a 60%-30%-10% ratio respectively. “We started off as a company catering to the leisure segment in 2006,” Nouhra says. “But then, in 2008, when the leisure mar- ket worldwide crashed, as a matter of survival, we decid- ed to diversify.” That strat- egy proved to be extremely beneficial for ASIS Boats in the long run. Designing and manufacturing boats from its facility in Dubai, ASIS Boats now sells to almost 80 territories, across the MENA, United States, Europe, South America, the Far East and other regions. With approvals and certifications from both European and the US indus- try and government bodies, and with offices in the U.S. and the UAE, ASIS Boats has also succeeded in going global, even while its manu- facture and R&D facilities continue to be based out of Dubai. When quizzed about his business strategy for breaking geographi- cal barriers, Nouhra says his insistence on quality has been the com- pany’s major differentiator. “To be able to sell to these [global] markets, you need to abide by certain minimum standards,” he explains. “But I decided that we will abide by the maximum standards.” The company’s efforts involved making inroads into the professional vertical (selling to maritime companies), while waiting on government contracts to materialize, thus wasting no time in building a customer base. “The fact that we have been here since the 1960s as a Group also gave us credibility, [signifying] we are not a hit-and-run busi- ness, but we are here to stay,” he adds. In terms of recognition, ASIS Boats was recently named “Business of the Year” at the 2015 Gulf Capital SME Awards, and the company had more to celebrate when Roy Nouhra was declared “Entrepreneur of the Year” at the same event. But this is not to say that it was smooth sailing for ASIS Boats when it started up- curiously enough, the company’s key hurdles were as a result of not having direct competi- tors in the region, and also for being a first mover. “No one knew anything about the products we were making, so I had to learn it from compa- nies globally, bring the know- how here, and keep it inside,” says Nouhra. Besides talent sourcing, getting the UAE brand accepted across global markets was also a challenge. “[We achieved it] by saying that I am not giving you just a boat, but a full solution from design to engineering to manufacture to delivery to after-sales service,” he says. Advising homegrown SMEs on ways to go global, Nouhra says, “To catch the local market is very important, but make sure to not benchmark yourself based on what other local companies in your >>> Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER Roy Nouhra Founder and President, ASIS Boats “Innovation is always about giving the customer something to satisfy his needs, and also those needs that the customer is not even aware of. We always sit with our customers, understand their environment, their operations, and requirements, and also try to see needs that they don’t see.” Bluebird Boat from ASIS Roy Nouhra, founder and President, ASIS Boats “We started off as a company catering to the leisure segment in 2006. But then, in 2008, when the leisure market worldwide crashed, as a matter of survival, we decided to diversify.” IMAGES COURTESY: ASIS BOATS

Page 34

Entrepreneur july 2016 34 industry are doing.” Accord- ing to Nouhra, SMEs must model their products on global companies, “have a product better than theirs, and offer it locally.” While ASIS Boats has a lot to be happy about with its current operations, the company is keen on not being com- placent and continues to innovate. For instance, as emphasis on safety and ma- rine technology takes center stage in the industry, ASIS launched an electric jet ten- der for the environmentally conscious sailor earlier this year. The move is also di- rected to fulfill its ambition to operate as a green com- pany and achieve sustainable performance. But how does the SME maintain momen- tum on innovation? When it comes to growth, Nouhra is an advocate of reinvesting profits into business and achieving organic growth. “You can grow smart even by doing something as simple as trying to get advance payments on your orders,” he says. “So go after such orders which will help your work- ing capital.” Even with all the fund- ing alternatives out there, ASIS Boats remains self-funded, and Nouhra says he wants to keep it that way. “Even though you [may] have to grow at a smaller speed, at least you have the freedom to choose a direction [for yourself], and move fast in that direction.” For someone who believes that “entrepreneurship is all about jumping off a building and growing wings as you go down,” Nouhra may well be on to something with that C onsidering the fact that Puneet Chhatwal was appointed the CEO of the Frankfurt- headquartered Steigenberger Hotel Group only in 2012, the speed at which Chhatwal has been pushing ahead with the growth and expansion of the Steigenberger Hotel Group –one of Europe’s lead- ing hotel companies- into the rest of the world has been remarkably exciting to watch, to say the least. The Germanic brand has been making inroads into markets all around the world, and Chhatwal –who was previ- ously the Chief Development Officer at The Rezidor Hotel Group, where he oversaw Rezidor becoming the fastest growing hotel company in the world- definitely seems to be the right person to help Steigenberger realize its global goals. “When I joined in 2012, the ambi- tion and the vision of the company was to double the size of its portfolio,” Chhatwal says. “80 hotels to 150 hotels, double the size of the EBDA at the same time, and still be recognized for quality, exporting the job and excellence. So, there’s three strategic factors: expansion, in terms of the growth of the company and portfolio; the second was in terms of the margins, because the margins in our industry have been continuously declining; and [the third was] quality leadership.” This strategy thus explains Steigenberger’s recent launch in the Middle East with a 365-room property at Business Bay in Dubai, UAE, which was made pos- sible through a partnership with Twenty14 Holdings, LuLu Group International’s hospitality division headed by Managing Director Adeeb Ahamed. While Twenty14 Holdings owns the five-star hotel, Steigenberger is oper- Puneet Chhatwal CEO, Steigenberger Hotel Group “I have one thing that has helped me do well in my life: I get immense pleasure in helping people grow, and they automati- cally help me grow.” Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER The Q What, according to you, are some of the challenges that SMEs in the UAE should be wary of when setting up shop here? The A “Starting a business in the UAE is pretty challenging for several reasons. Depending on what kind of business you are starting, the challenges are different. The challenge that you basically have is that banks are not really backing startups or SMEs. So, as a startup, you have to get your finances right. You can get access to banks, but you have to structure your company in the right way. As a startup, you need to have the right accounting and auditing structure, then you can go to a bank. Also, failure is not an option here. So, that again puts more pressure on you. Before you start anything, make sure that you are going to put in 100%, and there is no option for failure. That makes it harder initially.” Ask the exec Roy Nouhra Puneet Chhatwal, CEO, Steigenberger Hotelgroup Asis Boats’ Electric Jet Tenders Roy Nouhra, founder and President, ASIS Boats, won the Entrepreneur of the Year award at the 2015 Gulf Capital SME Awards

Page 35

july 2016 Entrepreneur 35 ating it under a management agreement. From Chhatwal’s perspective, this partnership has been a mutually beneficial one- he has nothing but good things to say about Ahamed and his Twenty14 team’s expertise and efforts, which helped make Steigenberger’s dreams of opening up in the UAE a reality. “Within the Middle East, in an ideal world, you would want to start with Dubai,” Chhatwal says. “So we were very fortunate that we got into contact with Twen- ty14- the chemistry [between us] worked from the very first day.” According to Chhatwal, the November 2015 opening of the property was a good showcase of the partnership between Steigenberger and Twenty14. “We worked very well with Twenty14 to hire all the staff, get all the work permits, find the staff accom- modation, train them, and within a period of six weeks, open the property,” he says. “So, hiring [people], getting them on board, work permits, plus training, cleaning, etc. was all six weeks. You can’t achieve that in a property of 365 rooms, spread over such a large space and closed for two years, if both parties [in the partnership] don’t work together.” Given the gains Steigen- berger has achieved with its partnership with Twenty14, what are the factors Chhatwal considers to be essential for a successful collaboration be- tween two parties? “As they say, it takes two to tango,” Chhatwal notes, smiling. “The important thing in any part- nership is not what I want. It’s what the other part wants, and how you align your wants and needs with their wants and needs. If these genuinely meet, and you can comple- ment each others’ interests, then it could create a win- win relationship. That’s the basic principle of it.” Value creation for both parties is also essential if there is to be a good partnership- Chhatwal emphasizes on the importance of thinking not just about the short term, and instead focus- ing on rewards that can come over the longer term. “And as I have always realized in my career, there is a big place for ethics and thinking of the whole,” he explains. “Eventually, that’s a long- term sustain- able plan. If your company has core val- ues that go in that direction, and the other company has the same, or wants to be –even if you are not there today, but that’s your ultimate goal, to get there- then it helps [in terms of a partnership that can work]. But I think the most important thing here is [to think of] not what I want, [but] what the other partner wants, aligning your needs and wants, and then doing ev- erything to make it happen.” With Steigenberger’s opera- tions in the UAE having thus begun, the hotel group is now zooming ahead with its plans for the rest of the region and beyond. In the Middle East, new Steigenberger hotels will be opening in Qatar, Oman and the UAE again very soon, while, internationally, China is on the company’s radar, as is India, where it recently tied up with the MBD Group for a joint venture that will see it open at least 20 new hotels in the country over the next 15 years. The pace that Chhatwal has set for the Steigenberger brand’s growth is thus a rath- er speedy one, but that is very much in line with his own persona as a leader- Chhatwal says that one could call him “an impatient leader,” who’s very passionate about what he does, and hence leaves no stone unturned in attaining the goals he has set for himself and the brand. As for what one can expect to see from the Steigenberger Hotel Group in the coming months and years, Chhatwal looks to be quite confident about its prospects. “I would just say that Steigen- berger is a company to watch,” he says. “Why? As one of our latest campaigns put it, [Stei- genberger may be] difficult to pronounce, but easy to love. I think we are very proud being a part of this journey we are making, and we can become the first Germanic brand in this industry to become a true global and international player.” Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER The Q What are your thoughts on the economic slowdown being experi- enced in MENA hospitality markets, like Dubai? The A “The fact that these markets are called emerging markets means that there is a certain amount of volatility built into the system- if there was no volatility, they would be called mature markets. But the way I have seen Dubai grow in the last 20 years: if somebody had told me this would hap- pen, I wouldn’t have believed it! Having gone through that journey myself, and given the leadership in this region, I genuinely believe that they will find the ins and outs, and ways to keep this region going.” Ask the exec Puneet Chhatwal Steigenberger Dubai Neunzehn Executive Lounge “Within the Middle East, in an ideal world, you would want to start with Dubai.” IMAGES COURTESY: STEIGENBERGER HOTEL GROUP

Page 36

Entrepreneur july 2016 36 F or a company that was es- tablished only in 2010, the awards and recognitions that Egyptian Steel and its CEO Ahmed Abou Hashima has racked up already are definitely noteworthy- if the rate of growth of Hashima’s enterprise is any indication, then here’s an entrepreneur who’s well on his way to becoming one of the region’s most prominent businessmen. But it’s not been a rosy path for Abou Hashima- after all, setting up a new enterprise when Egypt was in the throes of a political upheaval couldn’t have been an easy task. “There’s no doubt that Egyptian Steel was founded at a very critical time in Egypt; [it was] only a few months before the January Revolution in 2011, which led to several years of economic and politi- cal turmoil,” Abou Hashima says. “Yet, I consider that we were already in the middle of the ocean, [and] there was no way back. We had to believe in our country, and that we will bounce back even stron- ger than we were.” It was a difficult period, yes- but Abou Hashima kept going with his eyes on the final goal. “Egyptian Steel did not lay off a single employee throughout these tough times,” he re- members. “Our strategy has been to always invest in our people, believe in them, and make them understand that they are the source of power for this company. My partners shared my vision as well, and continued their investments in Egypt, despite the rocky times. Having a common vision from the top manage- ment all the way to the smallest roles in the company is what made us survive and thrive, till we reached what we have today.” Cut to today, and Egyptian Steel is still standing, and the enterprise now aims to not be known for just its steel, but instead as a one-stop shop for building materials. To this effect, the company is expanding in this regard, with the first of its ventures being Egyptian Cement. As Egyptian Steel thus scales up, recruit- ment of talent to fuel the enterprise’s growth remains a critical factor that Abou Hashima takes particular at- tention to. “I don’t believe in limiting budget when it comes to the employees,” he says. “They’re the group’s biggest asset, and if they function well, everything else will go well. I can spend billions on a steel plant, but with an inef- ficient team, they’d waste all our investments.” But while his endeavors in business continue to grow and make an impact, Abou Hashima is insistent on being concerned about a lot more things than just Egyptian Steel’s bottom-line. His success as an entrepreneur notwithstanding, this enter- prising individual –winner of the Responsible Leadership award at Entrepreneur Middle East’s 2015 KSA Enterprise Agility Awards- has made it his priority to give back to the country he has set up his business in, and he has put into effect a definite plan for corporate social responsibility (CSR) as well. “Starting 2014, Egyptian Steel halted any TV advertise- ments, which are known to cost millions for production and airing time,” he says. “This whole budget has been redirected to renovating and revamping Egypt’s 20 most impoverished villages. I creat- ed a concept that I like to call ‘socially responsible capital- ism,’ which emphasizes that the civil society has rights that should be fulfilled. In my book, the business world does not revolve around mate- rialistic gains. It’s our duty to improve people’s lives and to lessen their suffering as much as we can. It’s very flatter- ing that our CSR efforts got noticeable recognition on a local and on an international level. But what actually keeps me motivated is the happiness I saw on the villagers’ faces when they moved into their revamped homes, that for the first time, they have ceilings, windows, clean tap water and electricity.” And Egyptian Steel’s focus on CSR continues even today, Abou Hashima notes. “We resumed TV ads this year, be- cause we needed to announce about our mega project in Beni Suief,” he says. “Yet this did not affect our CSR plans, which are continuing as usual. In fact, we have expanded our CSR activities to include paying debts of impoverished prisoners who were sentenced time for owing money (and not for any criminal offences) so that they are now free to go back to their families, and helping specific cases of ill people who cannot afford their treatment.” Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER Ahmed Abou Hashima “ Chairman and CEO, Egyptian Steel “Focus on yourself. Do not compare yourself to others. The only person you should aim to be better than is yourself. Any attempt to compare yourself with others is a waste of energy you should be exerting in improving yourself.” The Q From a personal standpoint, what’s the strategy you use for lead- ing your company? The A “Choosing the right people for the right positions, and then trusting them and delegating to them, is key. First of all, that gives them confi- dence and motivation to give their best at work. Second, I don’t believe in a one-man show method in running a business. Not every single de- tail must go through me, this will elongate procedures, waste time, and it will demotivate members of the team.” Ask the exec Ahmed Abou Hashima “Our strategy has been to always invest in our people, believe in them, and make them understand that they are the source of power for this company.” Ahmed Abou Hashima, CEO, Egyptian Steel IMAGE COURTESY: EGYPTIAN STEEL

Page 37

july 2016 Entrepreneur 37 F aisal Al Bannai is perhaps best known for being the founder of Axiom Telecom, a US$2.2 billion company established in 1997 that is today the official regional distributor for some of the most prominent elec- tronic consumer brands in the world- and it is probably this distinction that makes most of us curious about his latest venture, DarkMatter. As the CEO of DarkMatter, Al Bannai leads a team of cyber security specialists providing “secure, trusted and integrated protec- tion services” for individuals, enterprises and governments. According to Al Bannai, with cyber security having become a critical issue for protecting nations and their digital as- sets, DarkMatter is uniquely positioned to provide for this particular need, especially in the Middle East region. “At DarkMatter, we believe that for this region to continue growing economically and socially, we needed to provide cyber security expertise, right here in the region, under one umbrella,” Al Bannai says. “This is DarkMatter’s mandate, creating a company with the vision to become an international cyber security powerhouse headquartered in the UAE, with tier one global security experts based in the country. DarkMatter is already a trusted cyber security part- ner to the UAE Government and other clients, and we develop our own intellectual property, as well as partner with vetted global technology companies to develop cyber security products, solutions and services.” It’s interesting to note here that while Al Bannai is undoubtedly one of the most successful Emirati entrepre- neurs around in the country, he claims that Axiom Tele- com’s success does not add any undue pressure in terms of his aspirations and goals for DarkMatter. “I am no longer the CEO of Axiom Telecom; I am the company’s Managing Director now,” Al Bannai says. “This allows me to focus the majority of my time on being the CEO of Dark Matter, and my past is not a pressure point at all. DarkMatter is a new business in a new area for me, and I enjoy being back on a learning curve. It is an opportunity that allows me to bring my previous expertise in building a multinational organization, and combine it with engaging global experts who have vast experience in cyber security.” But with Al Bannai now back on the start- ing up stage of a company, he’s had to deal with some of the expected hurdles that come with being an entrepreneur today in this region. “One obvious challenge is recruit- ing the best talent,” he says. “There is a shortage of cyber security expertise globally, and so, to identify the best talent and have them join us in a competitive environment continues to be something that we are having to work exceedingly hard to achieve.” With this being the case, how exactly has Al Bannai dealt with this particular issue? “Beyond offering competitive remuneration, we have found out that the one factor that pushes top talent to work for DarkMatter above other international cyber security firms is the fact that the work they are involved in has nation-scale implications,” he explains. “Our projects and engage- ments are fundamental, and the impact of the work we are undertaking is set to be felt for years and decades to come. DarkMatter is working at a national level to advise on the development of regulations and frameworks, and we are delivering solutions that are being deployed in critical areas with a fundamental impact on security. Motivated people are attracted to that. They want to be a part of doing something that has never been done before, and which is important.” This response is indicative of Al Bannai’s leadership ethos, by the way- according to him, for an enterprise to innovate and succeed, it’s important that its leader be able to inspire its people. “Innovation is about inspiration, and should a business leader have a vision, and should he/she be able to motivate others to believe in the vision and work towards it, I believe he/she stands a greater chance of success,” Al Bannai says. “A fine example of inspiration is the leadership of the UAE, and how they con- tinue to inspire growth and innovation in the country.” “ Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER The Q In terms of oppor- tunities available in the market today for entrepre- neurs in the Middle East, is now a good time to start a business in this region? The A “I think the Middle East region, and more specifically, the UAE, is a fantastic place in which to establish a business. We have institutions in place that ensure the environment is a safe and progressive one in which to do business, while at the same time, we still have an emerging market mentality that makes us strive higher. I believe that opportunities exist across sectors, as many economies in the region look to move away from a depen- dency on income from fossil fuels. All I advise any budding entrepreneur is to research the opportunity thoroughly before embarking on it, as well as looking to have sufficient sources of funding in place.” Ask the exec Faisal Al Bannai Faisal Al Bannai CEO, DarkMatter “I believe having a vision of what you are looking to achieve, and remaining true to it, is a big part of good leadership. Circumstances are going to evolve and change, and having a certain flexibility and adaptability is also important- things don’t always go according to plan.” Faisal Al Bannai, CEO, DarkMatte IMAGE COURTESY: DARKMATTER

Page 38

Entrepreneur july 2016 38 Raghu Malhotra “ President, Middle East and Africa, MasterCard “At the very core, every business leader is an entrepreneur, and the willingness to innovate lies at the heart of entrepreneurship, therefore, innovation and leadership go hand in hand. Regardless of the nature of the industry a business operates in or its size, every enterprise benefits tremendously from the vision and direction of a leader who appreciates the value of inspiring his/her colleagues to innovate, contribute to a thriving culture of creativity, and meet the company’s business goals.” Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER Raghu Malhotra, President, MEA, MasterCard IMAGES COURTESY: MASTERCARD M asterCard is a technology company, and that, in more ways than one, sets the context of how I approach my job,” says Raghu Malhotra, when talking about his role as the President for the Middle East and Africa (MEA) regions at Master- Card. “Technological innova- tions are a by-product of col- laborative, creative and open work environments, and I take great pride in being able to work with individuals who all firmly believe in the power of technology and knowledge sharing, and the impact these two have on our consum- ers’ day-to-day lives, and of course, ours. At every level, we are aware of our busi- ness’ core objectives– both long-term and short-term. Looking at challenges from all the angles- it’s ingrained in our DNA, and forms part of our everyday discussions.” Given that MasterCard is a company that reported net revenue of US$2.4 billion in the first quarter of 2016 (a 10% increase from its figures over the same period last year), Malhotra’s statement on workplace environments being key to stimulating innovation is something all you entrepreneurs out there should be trying to copy within your own enterprises, as this basic principle is what governs his leadership strat- egy at the organization. “With these foundations in place, my formula for successfully steering the company towards growth becomes a simple equation,” Malhotra explains. “I have always believed in leading by example and stay- ing persistent. This becomes especially important at MasterCard, because, let’s face it, we operate in highly competitive times. So, it is important to be realistic and have a global view and learn from experiences. This is not to say that we do not set high expectations for ourselves. We understand that technol- ogy flourishes in competitive environments and we want to continue surpassing our own benchmarks, but without losing sight of the fact that it is the small changes, small developments and small progresses that together result in some of the biggest breakthroughs.” With respect to Master- Card’s operations in the Middle East and Africa, Mal- hotra notes that as a global company, its core objectives remain the same around the world; however, the approach to realize these visions is dependent on the market, consumer behavior and the access they have to financial services. “Localization of our strategies, services and solu- tions is therefore key to meet- ing market-specific challeng- es,” Malhotra says. “In the Middle East and Africa, for instance, financial inclusion is among our top focus areas. As an example, our work with the Egyptian government to roll out a digital ID program that links citizens’ national ID to the existing national mobile money platform, which will help extend the benefits of financial inclusion to 54 million citizens in the country. Through a similar program, we have worked with the Nigerian government in issuing National Electronic ID (e-ID) cards to enable Ni- gerians aged 16 and above to have a similar national ID as well as access to an electronic payment platform. This will help bring financial services to Nigeria’s 170 million citi- zens.” Once again, Malhotra points toward innovative thinking as being essential to the company’s growth in this region. “At the speed

Page 39

july 2016 Entrepreneur 39 with which MasterCard is growing its footprint in MEA, doings things creatively and differently, is the only way forward,” he notes. “We are always looking for new ways to enhance our operational efficiency, streamline our efforts to better serve our partners and consumers, and to help teams reach their full potential to be the best at what they do.” Like many other brands around the world, Mas- terCard has also made significant inroads into sup- porting entrepreneurship and innovation around the world. According to Malhotra, this is a reflection of knowledge sharing being a critical com- ponent of what MasterCard does as a company. “From a casual exchange of ideas in our offices, to supporting thousands of entrepreneurs, SMEs and other entities through our proven innova- tion processes, we strive to be a responsible company that believes in doing well and doing good,” Malhotra says. “Our efforts in supporting and enabling an entrepre- neurship ecosystem are a derivative of our commitment to connecting 500 million people, including millions of merchants by 2020, in which MEA has played and will con- tinue to play a key role in its realization. This represents a powerful opportunity– one that has the potential to make a difference to the lives of millions across MEA, especially on the back of the regional youth’s infectious enthusiasm for professional and financial independence.” Examples of such programs are already out in the mar- ket- Malhotra points toward the MasterCard Start Path Global 2016 program, which is aimed at providing startups with an accelerated path to scale innovative solutions. “Similarly, through our work with the Youth for Technol- ogy Foundation in Nigeria, we are paving the way for a whole new generation of female entrepreneurs to take control of their lives, and by doing so, contribute to national economy through financial solutions that work for them,” he adds. “These are only a few of the many examples of our success in encouraging enterprising pro- fessionals, communities and women to take charge of their own lives and follow their passions, while we power their ideas with the technol- ogy and innovation they need to bring their visions and ideas to life.” While Malhotra’s reiteration of innovation as being key to everything that MasterCard does is indeed a good thing, one must wonder: in a region where innovation has (argu- ably) become a buzzword of sorts that means everything and anything, what exactly does it stand for at Master- Card? “Innovation can be defined in many different ways,” Malhotra admits. “It can mean different things to different people. But when you are in the business of innovation, you cannot afford to have multiple definitions. For us at MasterCard, innova- tion translates into making a difference in the way people think about the cash in their wallets or electronic pay- ments that are just a click or a tap away. For us, it begins with the mindset of our consumers, and we are on a journey to changing mindsets about cash through smaller achievements that began with one simple belief that payment is just a means– a facilitator of a specific, more meaningful experience. To hammer the point home, we at MasterCard are often heard saying that we don’t wake up in the morning thinking about making a payment. It is something that happens in the backend, while we continue to focus on things that matter more. Of course, innovation without execution is only ideation. Our commit- ment to supporting the global entrepreneurship ecosystem fuels our ability to innovate, scale ideas that work and empower individuals through real-time solutions that drive their inclusion in the financial mainstream. In this context, we also like to remember where we started. The very experience of having someone pay with just a piece of plastic, securely, safely and globally is quite a remarkable progress for our generation, isn’t it?” Enterprise head honchos talk strategy, industry-specific tactics, and professional challenges FOLLOW THE LEADER The Q What factors do you think contribute to making someone a great leader for an organization? What is your personal leadership mantra? The A “Believing in yourself and your team’s abilities is very important. Making it to the top of the corporate ladder is far from being an individual achievement only; it is a collec- tive effort made possible with the innumerable contributions of your colleagues, teammates and lessons and experiences that you have learnt along the way, that help cement your career trajectory. In the end, and more importantly for our industry that thrives on creativity, individual success is defined by team success. Also, working in the technol- ogy sector means you will see new innovations take over old ones at a breakneck speed. It is easy to get overwhelmed by the volume and frequency of these disruptions and the impact they leave on our personal and professional lives, but maintaining a stable work- life balance and having other interests outside of work, will help one gain perspective and bring things into focus during times of turmoil and dismay. Be yourself, understand your strengths and weaknesses, and be at harmony with your- self and your personality.” Ask the exec Raghu Malhotra MasterCard Start Path Global 2016 program website www.startpath.com

Page 40

Page 41

Page 42

Entrepreneur july 2016 42 graphs © bayt.com ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO TREPONOMICS Win the war for talent How employer branding can help your company be perceived as a great place to work By Lama Ataya T oday’s professionals want more. They expect their employers to invest in their growth and development and are hungry for skills acquisition and training, a thriving culture, rewards and recognition, and life beyond work. These needs raise an important question for companies looking to hire top talent: what should be at the core of a successful hiring strategy? The answer lies in two words: employer branding. Simply put, employer branding is the process of marketing your company as an employer of choice by creating a positive image, or reputation, and showing the company as a great place to work. Companies that understand the importance of this era of digitization and transparency are also concerned with their employer brand. Brand- ing a company as an employer of choice has important implications for attracting and retaining the best talents. Organizations that want to win the war for talent should not only aspire to become a great place to work; they should aim to be per- ceived as one too. Trends in employer branding in the Middle East A proof of the importance of employer branding is the fact that job seekers everywhere are looking up information about companies they are targeting. According to the Bayt.com What Makes a Company an Attractive Place to Work? poll, February 2014, nine out of 10 profes- sional respondents in the Middle East research a company online while considering a job offer, and 75.6% of respondents in the Bayt.com Trends in Employer Branding in the Middle East poll, June 2016, say they usually check a company’s online profile before applying for a job at that same company. Being perceived as a great place to work results in better employee engagement, according to 23.4% of respondents in the Bayt.com Trends in Employer Branding in the Middle East poll. In fact, better employee engagement, higher job acceptance rates and recognition as employer of choice, all emerged as the top benefits of employer branding, according to the poll. The fact is, forging a compelling corporate identity, or employer brand, will not only spark candidate interest and trust, but will also help to engage candidates with the brand and, if done right, have a great employee join your company.   Your branding game plan It is fundamental for employers to take a holistic approach to branding throughout all activities related to the employment process, as the “per- ceived” power of a company’s brand is directly representative of the “actual” power of the brand. A few tips below:

Page 43

july 2016 Entrepreneur 43 >>> 1. Personalize your job postings More often than not, job seek- ers are drawn to minuscule particulars of the job; they wish to discover all there is to know about it and no amount of detail is superfluous. As an employer aiming to have your employer brand prevail, make sure all the job vacancies you publish comprise a thorough job description. Throw in sup- plementary excitement stimuli here and there about perks, benefits and development op- portunities. Include your logo and a brief narrative of who you are, what you do as a com- pany and what the company stands for. At the same time make it very clear that you are firmly committed to your em- ployees by expounding on such items as company culture, employee wellness and reten- tion programs and employment standards. Differentiate your company in the job posting by expounding on not just all the items you require of prospec- tive candidates, but also all the items that make your company a great place to work. Here are some non-traditional perks that will help you attract the best candidates: > Wellness programs Wellness programs go beyond traditional health insurance to offer gym memberships, nutrition counseling, anti- smoking programs, and other programs to improve health and well-being. According to the Bayt.com Health and Life- style in the Middle East poll, March 2016, 96% of polled respondents believe it is the employer’s responsibility to promote employees’ health and wellness. > Flexible schedules Top candidates are often self- starters who can handle the responsibility of setting their own schedules and choosing when and how to work. Flex- ible hours, telecommuting, and work-from-home options can all play a role. > Entertainment The point here is to help em- ployees balance stress by of- fering holiday parties, retreats, or other perks, like sports and team-building activities. A well-appointed break room can also help relieve stress at work and give top talent a place to do their best creative thinking. A rewarding workplace helps boost people’s love and passion for their jobs. > Performance-based compensation Be sure to align the potential hire’s future benefits with the success of the company. Per- formance-based compensation is one of the best ways to get top talent at a low base. If they add value for the company, set it up that they are rewarded for that value. > Quality work-life balance The companies that are going to be most successful mov- ing forward are the ones that understand the importance of lifestyle balance. Whether it’s the ability to work from home or more vacation time, millen- nials expect a lifestyle balance much more so than the older generations. 2. Create your digital branding page The millennial generation is digital, and more and more candidates today scrutinize corporate websites while eval- uating job offers. Make sure yours is a winning one. This is not simply a matter of us- ing the right graphics, colors, backgrounds and formats; you need to make sure your vision, mission statement, values and culture are all very clearly articulated. Show potential candidates why they would want to join your organization. Include photos, videos and bi- ographies of your existing staff and management and keep content up-to-date to make your online profile even more compelling and your job vacan- cies even more in demand. When visiting a company website or corporate profile, respondents in the Bayt.com

Page 44

Entrepreneur july 2016 44 Lama Ataya heads the Marketing department at Bayt.com and within that role is also responsible for communications, content, community experience, and corporate social responsibility. ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO TREPONOMICS Trends in Employer Branding in the Middle East poll listed the features they would love to see. These include “reasons to join” (32%), the “vision, mission and values of the organiza- tion” (9.5%), “testimonials and actual experiences from employees” (8.4%), “company awards” (4.2%), and a “letter from the CEO” (4%). Recognizing the need for opti- mal employer branding through digital storytelling, Bayt.com has come up with a solution for companies looking to brand themselves as employers of choice: Premium Company Profiles. Premium Company Profiles by Bayt.com are simply a way for companies that are aware of the importance of branding in the digital age to create a crisp and effective brand among so many other brands fighting for talent. Com- panies large and small can now personalize their own corporate profile and use it to update their information, as well as share their job vacancies, and celebrate their culture and milestones with our community of over 25 million job seekers. 3. Conduct great interviews The job interview represents the perfect setting for you to convey an exemplary image about your company. Do be on time, do be professional, do be friendly and most importantly, do put the interviewee at ease. Remember, you are not simply making a mere business trans- action; you are aiming at re- cruiting a “relationship” before recruiting an “employee”, and solid recruiting relationships translate into an even more solid employer brand, regard- less of whether the candidate gets hired or not. A systematic approach to funneling candidates and com- municating effectively with them is essential for success- ful employer branding. Six in 10 professionals agree that no follow-up or communication by the company after applying is the most harmful thing that could happen to an employer brand, as revealed in the Bayt.com What Makes a Company an Attractive Place to Work? poll, February 2014. It’s important for businesses to invest in an applicant track- ing solution that enables them to seamlessly manage their candidate pool. Bayt.com’s Talentera, for example, serves as a comprehensive recruitment solution; it helps companies create branded career channels to source, track, assess and hire candidates, right through their own corporate websites. 4. Let your employees be your brand ambassadors Nothing can boost an em- ployer brand better than having existing employees willingly want to brag about your organization! Satis- fied employees often tend to volunteer to tell stories about their company’s unrivaled success, unique culture, and exquisite bundle of values. Bayt.com, for example, has an official “Ambassador of the Year” award where employ- ees who actively promote the Bayt.com brand receive special accolades and a certificate of appreciation from the CEO. Make your employees happy: reward them when due, sup- port them when needed, and leave the doors open for com- munication at all times just so they know they can come to you for both positive and negative feedback. Transpar- ency, integrity, support and gratitude are what talents are after in their quest for their ideal employer today. Finally, the last ingredient in the formula for attracting and retaining top talent is innova- tion in recruitment marketing. Hosting virtual job fairs, for example, is an excellent way of engaging potential employees in a vibrant and sophisticated online environment that can yield immediate results. Bayt.com hosts a series of Vir- tual Job Fairs (vFairs) across the region. These recruitment fairs offer a great opportunity for professionals from around the world, who are looking for a job in the Middle East, to get in touch with top regional employers directly. The online platform is ideal for regional employers who are looking to attract top talent, at a fraction of the cost of a traditional job fair, and from the comfort and convenience of their own corporate offices.

Page 45

Page 46

Entrepreneur july 2016 46 ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO TREPONOMICS Overcoming obstacles Seven tips for startups operating in emerging markets By Konrad Waliszewski www.tripscout.co A s the founder of TripScout, and as some- one who has traveled to over 75 coun- tries, I spend a lot of time with startups, investors, and incubators in emerging markets. The resourcefulness, drive, and vision I see in these markets continues to inspire, and convince me that the “next big thing” is increasingly likely to come from Cairo, Mexico City, Nairobi, or Saigon. The tal- ent and access to technology are there, but these markets have to overcome significant challenges. Reliable power, high-speed internet, corrup- tion, and lack of resources are real obstacles emerging market startups have to face on a daily basis. However, if you are an emerging market startup, I have noticed a few consistent, but easily avoidable, issues that may be holding you back from your Silicon Valley peers. 1 Remove the information gap The latest and best thought leaders for growth, product development, and business topics are household names in the Valley, but are often unknown in emerging markets. Do not try to navigate complex topics on your own or rely solely on your local accelera- tor. Let the best in the world be your digital mentors. These experts have poured out their knowledge into blog posts, books, and interviews. Check out the sidebar for some of the best resources that you should be following to accelerate your business. 2 Stop complaining about investors “There are no investors here.” This is the number one thing I hear from founders in emerg- ing markets. I get it; it’s a lot more challenging for you, but every startup faces hurdles so stop complaining and find a way around it. An increas- ing number of investors do not care about location. As one of my former investors, Paul Singh, likes to say, “Lazy founders complain. Smart founders ask, ‘How can I get the attention of people who aren’t here?’” First, how much are you actually hustling and conducting a methodical fundraising process? Do you have a pipeline of every inves- tor who has ever invested in a local startup, every early-stage investor in the region, every rich local entrepre- neur, and everyone interested in your industry and size? Have you aggressive- ly -without being annoying- pursued them and conducted hundreds of meet- ings, meticulously crafting and refining your pitch? Are there other sources of funding you can pursue to fund the business– like having the team do freelancing work, paying in equity, or finding alternative short-term revenue streams? If you are not getting funding, focus on improving your fundraising process, increasing traction, better communicating your vision, and finding creative al- ternatives. Every problem has a solution, and every moment spent complaining about your reality is waste of time. 3 Get over your idea Every time I sit in a café in the Mission District in San Fran- cisco, I cannot avoid hearing

Page 47

july 2016 Entrepreneur 47 Startup resource roll Konrad Waliszewski’s picks on blogs, books and podcasts for startup self-education Companies are often too busy with their own plans to steal your idea, but even if they do, you can’t steal execution and passion. There is a good chance someone else is already working on a similar idea anyways. www.garyvaynerchuk.com every surrounding table share their next startup idea to some random venture capitalist or unassuming barista. When I am in emerging markets, all of a sudden early-stage founders act like they are on a clandestine operation. Get over your idea. You are a million times more likely to fail because you cannot find customers or a business model, than someone taking your idea and run- ning with it. Companies are often too busy with their own plans to steal your idea, but even if they do, you can’t steal execution and passion. There is a good chance someone else is already working on a similar idea anyways. Businesses die because they do not make things people want to pay for, or they move too slow and lose momentum, not because some- one swiped their golden idea ticket from them. Forget about competi- tors all together and talk as openly as needed to get early customers, validate your product, and attract talented people to help you. 4 Identify your cultural biases and get over them Every culture is different. It is why I love traveling and have visited so many countries. I learn a new way of doing something from every place I visit. Emerging markets have many cultural traits that may be great for society, but restrictive for developing high-growth companies. They vary from country to country, but identify any specific cultural hurdles you have and get over it fast. Some com- mon examples include: I. Fear of failure Treat nearly every decision as an as- sumption that you will test and vali- date. This means you will probably be wrong more times than you are right, but you need to give yourself as many chances as you can and you only need to be right a couple times to succeed. Test different marketing tactics, product features, and busi- ness models. See what works and move on quickly when something does not. Make this a core part of your company’s culture. II. Modesty Your job is to develop a thesis, bet big on it, and convince customers, employees, press, and investors of your vision. You cannot be an effec- tive founder by being overly modest. This does not mean you act like an arrogant jerk, but be confident and speak with conviction about your vision. III. Patience You should have a long-term and patient view, but be very impatient daily and weekly. Startups require urgency. As a startup, you should think in hours and days, because you will not usually have quarters and years if you do not reach your milestones. Track daily metrics and make sure you are driving everything forward each day. IV. Work ethic Some developing countries amaze me how hard and long they work. They are hungry, driven, and seem to be making up for lost time. Other de- veloping countries have a more laid- back work culture. They start late, take a few long coffee or tea breaks, and then leave in time for dinner. This type of work ethic will make it nearly impossible to build a high- growth startup, so either change or pick a different career. 5 Deeply understand your data and business model Emerging market startups tend to lack proper data and analytics. Any good startup should know their LTV, CPA, ARPU, unit costs, conversion rate, churn rate, etc. You should know by heart the math that under- lines and drives your business. How much did it cost to acquire each cus- tomer? How much do you make from each customer? How much does >>> Online marketing • Neil Patel: neilpatel.com (Also check out his company’s blog at QuickSprout: quicksprout.com/ blog and KISS Metrics: blog.kissmetrics.com) • Noah Kagan: okdork.com/blog Growth • Gabriel Weinberg’s Traction: A Startup Guide to Getting Customers Sales • Predictable Revenue: predictablerevenue.com/blog UI/UX • Lovely UI: lovelyui.com • Mobile Patterns: mobile-patterns.com • Capptivate: capptivate.co • Pttrns: pttrns.com Social media • Gary Vaynerchuck: garyvaynerchuk.com • Buffer: blog.bufferapp.com Public relations • Dmitry Dragilev: criminallyprolific.com/blog • Ryan Holiday’s Trust Me, I’m Lying

Page 48

Entrepreneur july 2016 48 TREPONOMICS Konrad Waliszewski is the founder and CEO of TripScout, a mobile app that provides self-guided city tours from top local guides. Prior to TripScout, Konrad was the COO at Speek, a venture-backed startup that provides simple conference calling solutions and applications that enhance meeting productivity. You can follow Konrad at @goKonrad on Instagram and Twitter. ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO You should have a long-term and patient view, but be very impatient daily and weekly. Startups require urgency. As a startup, you should think in hours and days, because you will not usually have quarters and years if you do not reach your milestones. Startup resource roll Konrad Waliszewski’s picks on blogs, books and podcasts for startup self-education it cost to service each customer? When do you hit your goal or run out of cash under different scenari- os? What are the key variables that could change your outcome for good or bad, and how are they trending? 6 Take advantage of develop- ing world insights and have the confidence to think globally As an emerging market startup, you have unique insights into prob- lems in the developing world that startups in the developed world do not understand. The way you think about electricity, payments, connec- tivity, entertainment, services, and many other aspects of society are different because of the realities on the ground. This is intuitive for you, so leverage your insight. Make your product work for your market and there is a good chance it will work throughout Africa, India, Southeast Asia, Latin America, and the Middle East. While you should think about solving those local issues you know, have the confidence to think global. Capital, technology, and talent are increasingly global, so there is no reason international unicorns can- not increasingly come from emerging markets. 7 Invest in your ecosystem A good startup ecosystem can be a powerful resource to a new startup. It provides affordable places to work, peers and mentors who can collaborate on ideas, a pool of tal- ent for hire, needed services, and investors. Growing a good ecosys- tem and getting the most out of it does not happen naturally, it takes work. You need to spend time giving back, sharing what you learned, and participating in events. The better the community grows, the better all companies do, as there will be more investors and talent available. The most important thing an ecosystem needs are successful companies though, so do not spend all your time at events. I have also seen several cities with more incubators than startups, which is never a good sign. Good ecosystems must start with companies. Nearly every good ecosystem has emerged from a hand- ful of entrepreneurs who built a suc- cessful company, hired and trained people locally, made early employees and investors a lot of money that spawned the next generation of startups, and had the desire to give back. Copywriting > Neville Medhora’s Kopywriting Course: kopywritingkourse.com Content Marketing > HubSpot: blog.hubspot.com Blogging > ProBlogger: problogger.net SEO > Moz: moz.com Business and investment > Ask the VC: askthevc.com > Brad Feld: feld.com > Paul Graham: paulgraham.com/articles.html > Fred Wilson: avc.com Creativity in businesses Chase Jarvis: chasejarvis.com/blog Managing through challenges > Ben Horowitz’s The Hard Thing About Hard Things Prioritization > Essentialism: gregmckeown.com/essentialism- the-disciplined-pursuit-of-less Podcasts > Tim Ferriss: fourhourworkweek.com/podcast > James Altucher: jamesaltucher.com/category/ the-james-altucher-show > Lewis Howes: lewishowes.com/category/ podcast > Amy Porterfield: amyporterfield.com > Dale Partridge: startupcamp.com/podcast

Page 49

Page 50

Entrepreneur july 2016 50 Sirine Fadoul is Incubation Manager at DTEC Tech Startup Incubator, Dubai Silicon Oasis Authority. She is a founding member of Girls in Tech Middle East and a mentor and coach for The Cherie Blair Foundation for Women’s Mentoring Women in Business Program. Fadoul is also the founder of Generation Disrupt, a nonprofit product design educational program for children. TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO perfect Pitch Four tips to tell your startup story better By Sirine Fadoul W hat do inves- tors want? That is the “golden ques- tion” we often hear in the startup com- munity; a topic that headlines several pitching workshops. However, that is not the ques- tion entrepreneurs should be asking. Regardless of what the investor wants, there are a few fundamental techniques entrepreneurs must master before going out and pitching their startups. Here are a few tips to help you do just that: 1. Master your one-liner If you can’t describe the en- tire concept of your business in one line, you’re not ready. This is one of the toughest exercises entrepreneurs have to endure, and for some, one of the longest. A one-liner is not a summary though- it’s an opener for interesting ques- tions. The best one-liners are the intriguing ones; they con- tain one or more attention- seeking keywords that make people want to learn more about the startup. A one-liner is the essence of your startup: what your prod- uct is, how users use it, and how big the opportunity is for this product. Throw in the keywords that are dealmak- ers: these can relate to your USP (how is your product or your model different), or to the cutting-edge technology that you are introducing. The difficulty in doing this lies in squeezing in and structuring a great deal of information in a logical, im- pactful and audience agnostic manner. Anyone, regardless of how tech or business savvy they are, should be able to understand what your core concept is. For instance, a design soft- ware startup can be described as follows: a cross-platform plug-in software that allows any user to perform this ac- tion in less time/less cost. You can choose to add the size of the market you are addressing or how innovative this solution is. 2. Show off what you’ve got Tactfully and modestly, guide and accompany your audience at your pitch to their own conclusion, which should be one that contains statements and assumptions such as “this startup is going to domi- nate the market,” or “this team is on to something big.” But remember that showcas- ing ambition can sometimes be irritating to your audience; you need to learn how to package it. You need to show them that you have what it takes to dominate the market. You want to make them feel that they should be part of the success you will become, thanks to their support. To dominate your market, you need to understand it. Design thinking is one of the best methodologies that help you understand your users and develop solutions they will want to use. In this regard, talking to your users is beyond crucial; it should be mandatory. To dominate is to win over your competitors. One of the best strategists out there, Sun Tzu, once said: “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the en- emy, for every victory gained, you will also suffer a defeat.” But knowing your competitors doesn’t mean a mere listing of who they are and what they offer; it’s a thorough under- standing of why users select them, and what you need to do to attract those users and retain them. 3. Understand your users’ journey We often meet entrepreneurs coming up with solutions to problems they have never faced. Before you launch your MVP, take the time to experience and understand your users’ journey. Become your user, and invest time and effort in demystifying the smallest and most boring of tasks or users’ constraints. By doing so, you will discover new ways of innovating both your product and your model in a manner that ensures growth and scalability. The founders of a tech startup I mentor developed a product they assumed all developers would die for, until reality hit and no sales deal was closed. The tech team then revisited the complete user journey and engaged with many of their customers to identify the gaps in both their offering and their marketing techniques. As soon as new iterations were rolled out, sales started coming in. As an entrepreneur, remem- ber to avoid isolating yourself. Surround yourself with key mentors and advisors who

Page 51

J ust because you aren’t pitching for funds doesn’t mean you don’t need a well-devel- oped pitch delivery plan to get your mission and traction across. Conveying information about your venture when trying to onboard new users, cultivate valuable brand partnerships, and bring people around to your idea should be just as clear as your investor pitch deck. Here are a few tips that I put to work when educat- ing people about how and why my startup can and will work for them: 1. Introduce yourself. Starting a pitch with confidence sets the tone for the rest of the pitch. The easiest thing to do is introduce who you are and what you are representing- it will help kill the nerves. 2. Keep information on slides to a minimum. A pitch is different than an investor presentation. Keep slides visual and engaging. Have the least amount of information required to get your message across. Use any wording as prompts for you to speak about. 3. Always stick to the time frame given. Keep your points clear, concise and to the point. 4. Keep to the general guidelines of articulating the six steps. These are: i. Summary of idea ii. The problem you are solving iii. The size of the market iv. The existing competition v. The monetization approach vi. Challenges and next steps 5. Practice, practice, practice! I recently heard Hello by Adele playing in a taxi, and I thought to myself, she must be so sick of singing this song. Simultaneously, it dawned on me that what makes these singers so success- ful is their professionalism to portraying the same passion for a song every time they sing it. An entrepreneur is no different, and there is no replacement for practice! 6. Come prepared. Expect the unexpected. Prepare for different questions. The last thing you want to happen is to be caught out about a question you should know the answer to. How- ever, note that the worst thing to do is to lie. If you don’t know the answer to a question, just acknowledge the fact and say you will revert back. Honesty will go a long way! A few more general points that entrepreneurs should remember: 1. Listen; don’t react. I have learnt that feedback is the most useful source of support for any startup. At the same time, it can also become overbearing. Avoid the urge to react to each piece of feedback you receive. Internalize the feedback, let it settle in, and then work out how to use it. Too many entrepreneurs feel the need to immediately defend or react to advice. 2. Take time and persevere. If you believe you have a successful venture, be ready to commit a minimum of five to seven years (if not more) to making it happen. Unfortunately, too many people naively believe you can make a billion dollar company in a year or two- it actu- ally takes a year or two just to work out which direction you are walking in. 3. Be agile. An entrepreneur’s biggest ad- vantage is their ability to be agile and change course based on feedback. If a lot of people say something is wrong with your offering, then it may not be a bad idea to address it. Don’t stay overly dear to any given concept. At a minimum, explore the implications of changing and how it will affect your proposition. 4. Solve a problem. Always challenge as to whether something is an actual problem, or if you are finding a problem that matches a solu- tion you have come up with. Test the concept with users. The best people to test with are people you don’t know. Friends and family are likely to have a bias towards making you happy! Philip Bahoshy is the founder and CEO of MAGNiTT, an online community that connects MENA entrepreneurs with investors. Raised in the UK with Iraqi origins, Philip obtained an MBA from INSEAD in 2013 and a BSc in Economics from the London School of Economics. During his time in Dubai, Philip worked at Oliver Wyman in the Financial Services practice for three years, followed by nearly three years at Barclays Wealth working as Chief of Staff to the CEO advising on strategic initiatives. By Philip Bahoshy Pitch please A how-to guide for entrepreneurs sharing ideas july 2016 Entrepreneur 51 truly add value to your work and your entrepreneurial journey. Select them thought- fully and carefully, but be open to accept their feedback, even if harsh, and implement their recommendations. Coachability is a trait inves- tors appreciate and look for. 4. Narrate it like a boss Pitching is basically telling a story, one that keeps your audience hooked. The flow of your story is paramount, no flashbacks or long descrip- tions allowed. It should be as easy as 1-2-3, even if your product is heavily technical. The story needs to be about you (and your team) and what inspired you to come up with a solution to a problem a group of people face. It is about how you will reach those people, and convince them to purchase your solu- tion, and drop the competi- tors- for a certain amount, that will, hopefully, make you rich! The end of the story is the purpose of telling it. The best pitches are the ones that make your audience the heroes of the story. If your product is an app, then tell it from a user’s perspective, and invite your audience to be the lead user in your story. If your product is B2B software, you can trace the story from a before-and-after angle. It takes time to master the above pitching techniques, and if you need help in this, make it a point to network more. Attend events, join a community of like-minded people, like, say an incubator center, or a co-working space. Entrepreneurs are often some of the most supportive people you can come across- those who went through the same challenges and mastered the above techniques will surely help you. Good luck!

Page 52

Entrepreneur july 2016 52 TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO Loyal teams drive your business from good to great Nurturing entrepreneurial talent in your venture By Tamara Bullock Pass the leadership role at an important meeting to one of your team that has demonstrated potential, ask this rising star to speak on your behalf at a conference, and give them an opportunity to lead an important client presentation. Do all of this with the candidate knowing that you will always have their back. D uring his visit to the Gulf two years ago, the founder of YouTube, Chad Hurley, said that the key factor for the success of his mul- timedia business startup was finding the right people who were ready to follow him along his jour- ney. Identifying and recruiting talent is a challenge for large businesses, and even more of an issue for small busi- nesses, where a future employee needs to demonstrate a high level of resilience and entrepreneurial spirit in order to develop with the business and adapt to unexpected. This is something that is common for each and every entrepre- neurial endeavor. When you set up your own business, one of the first questions you ask yourself is: “What kind of people do I want to recruit?” Those who are simply brilliant at what they do, regardless of their social skills? Those who are delivering great results? Or those who have been proven ready to roll up their sleeves and do whatever it takes for the business to win and develop? For en- trepreneurs, the latter would be ideal. Small businesses have small resources and big ambitions- and hence people must be ready to grow quickly or step aside. As the business owner or man- ager, you can never underestimate the power of people development. Genuine commitment to people development creates loyal teams, and loyal teams are motivated to drive your business from good to great. Explore the option of untried talent Many small businesses are reluctant to hire fresh graduates. Investing in training and development falls at the bottom of the priority list while you are setting up your own business. However, it is one of the key pillars of success and that is exactly why young and inex- perienced talent can be the best fit. You are in a unique position to shape their skills, cultivate a positive attitude, and build up their ambitions. Make sure you take them on a journey and explain where it leads and how painful it might be at times. If they still decide to come on board, that means that you have the right caliber of young, success-hungry people around you. Of course, it is es- sential that you create a good balance between youth and experience; small businesses always benefit from staff that have some good professional mile- age behind them, and on top of that, trust one another. Continuing to provide a learning experience is key The next step after hiring is a continu- ous people development. Investing in skills from subject matter expertise all the way through to digital up-skilling, to additional foreign languages or business know-how courses. One issue that probably immediately makes you raise your eyebrows is the cost- but it doesn’t have to be expensive. One of the best ways to develop skills is to transfer your own knowledge to your associates– give them a piece of your own know-how and watch them use it for the benefit of the business. It takes only a few hours per month and a tai- lored teaching approach. Trainings such

Page 53

july 2016 Entrepreneur 53 T oday’s work environment bears hardly any resemblance to that of a few decades ago. Call it a passage of time or a generational shift, there is no denying that right from the process of job hunting to the way the workforce communicates with each other, the dif- ferences are plenty and drastic. Global recruit- ment company Next Generation along with NeoMam Studios, has released an infographic depicting a few of these social and technological changes that have transformed the way we work. The research data suggests that while most jobs in the market today didn’t exist 20 years ago, it’s expected that in around a decade’s time, 60% of the jobs will be completely new com- pared to today’s workforce. Further, professional space has come a long way from jobseekers waiting in long queues of employment exchanges to recruiters now seeking out hires through professional social networks. The traditional hierarchical structures have also given way to a more flex- ible, flat system- with horizontal organizational orders more prevalent than previous years. One of the most evident changes is the relatively balanced gender ratio in many fields of work when compared to previous years. The infographic suggests that erosion of the conventional concept of the workplace and traditional work hours together with the rise of remote working has emerged as a mixed blessing, with employees working from anywhere, and as a result, at any time. www.nextgeneration.ie Tamara Bullock is the Director of Corporate Recruitment for the Middle East at Hanson Search. Paradigm shift How the world of work is changing By 2020, it is estimated that 50% of the U.S. workforce will be freelancing Apple and Facebook now offer to cover costs of freezing eggs of their staff The next step after hiring is a continuous people development. Investing in skills from subject matter expertise all the way through to digital up-skilling, to additional foreign languages or business know-how courses. www.nextgeneration.ie/how-the-world-of-work-is-changing/ as time management, presentation skills or specific sales trainings are best done one-on-one as this method will elimi- nate embarrassment, and it will help your trainee focus solely on the tasks at hand. In some fields, group trainings can be very beneficial for enhancing team spirit and developing a sense of camaraderie among staff. These are also occasions where great work memories are created. Remember that leadership is a transferable skill Empowering teams to represent the business is also crucial for self-confi- dence and professional development. Pass the leadership role at an important meeting to one of your team that has demonstrated potential, ask this rising star to speak on your behalf at a confer- ence, and give them an opportunity to lead an important client presentation. Do all of this with the candidate knowing that you will always have their back. As small businesses built on the spirit of entrepreneurship grow fast -and by the nature of their set up do experience some rocky times- it’s very important to develop a dialogue and constantly seek feedback. The success of new ventures is every- one’s responsibility, and as a business owner you are driving that dialogue. This means that you, the entrepreneur, are ready to carefully listen and team ideas into consideration. It’s very important to remember that we live and work in a multicultural environment where respecting cultural or religious differ- ences can also make all the difference in motivating staff. Some businesses produce palpable products, others sell ideas and services. A common factor for all of us who have ever run a startup? We want to win. And we can only win with the people who are motivated and who are eager to join the journey, even if it sometimes means taking a running leap into uncharted territory.

Page 54

Entrepreneur july 2016 54 TECH SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX Thin is in HP releases thinnest laptop in the world HP Spectre HP Spectre is a fusion of great design with top of the line computing power. It weighs in at just 1.1kg with a width of less than 1.5cm, and offers the options of an Intel Core i5 model or an Intel Core i7 model. Spectre has a hyperbaric cooling system that doesn’t just push heat out of the machine– it actually draws in cool air and directs it over the processor to keep it running at peak performance. The PC features a backlit keyboard, a glass track pad, a full HD 13.3” diagonal edge-to-edge display, and Bang & Olufsen sound to create the ultimate entertainment experience. Unveiled as “the world’s thinnest laptop,” Spectre has an aluminum chassis as thin as a AAA-battery with high gloss copper accents, such as the hidden piston hinge that complements the design, like a piece of fine jewelry. Spectre has a premium look and feel, making it ideal for the fashionable professional. Entrepreneur july 2016 54 HP Spectre

Page 55

july 2016 Entrepreneur 55 TECH SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX Acer Predator 17X desktop The K500 smartphone by Four The LG PuriCare #TAMTALKSTECH Tamara Clarke, a former software development professional, is the tech and lifestyle enthusiast behind The Global Gazette, one of the most active blogs in the Middle East. The Global Gazette has been welcomed and lauded by some of the most influential tech brands in the region. Clarke’s goal is to inform about technology and how it supports our lifestyles. See her work both in print regional publications and online on her blog where she discusses everything from how a new gadget improves day-to-day life to how to coordinate your smartphone accessories. Visit www.theglobalgazette.com and talk to her on Twitter @GlobalGazette. Safety first Four releases a smartphone with no camera and no GPS Breathe easy LG introduces new line of air purifiers LG is employing state-of-the-art technology to support healthy living with its new PuriCare lineup of air filtration devices. The products work by eliminating invisible pollutants like sand, pollen, dust mites, formaldehyde, and other harmful airborne contaminants like sulfur dioxide and nitrogen dioxide from your home. With features like the Smart Indicator, which shows air quality numerically, and Smart Lighting, which shows indoor air quality in four colors, LG PuriCare also allows you to monitor changes in air quality over time. PuriCare works by using an array of advanced filters, which include Dual Protection, Allergy HEPA, and Triple Care. The final round of purification is achieved using the Plasmaster Ionizer that sends out over two million Plasmaster ions to sterilize the air. LG PuriCare air purifiers are equipped with LG’s inverter core technology, the Smart Inverter Motor, which helps it to minimize noise and deliver strong performance while also saving energy- thereby allowing you to care for your family without hurting the environment. The lineup also includes LG’s latest humidifier and dehumidifier for an end-to-end clean air system. I t’s a common sight in muse- ums and cultural centers these days to find visitors looking up the work they are seeing on their smartphones, or perhaps even sneaking in selfies with the ex- hibits. With this being the case, UAE-based technology startup Zero.1 wants to put smartphones to use for a richer tour experi- ence. Zero.1 has developed a light fidelity (LiFi) powered app called ART4U, which enables interactive and information-rich experiences for visitors at muse- ums, galleries, and similar ven- ues. With LiFi being an emerging network technology that allows high-speed data transfers using light, Zero.1 has been putting it to use building solutions for its Intelligent Outdoor Tower Au- tomation (IOTA) product range, and now with the ART4U app. The Zero.1 team is currently working on refining the app, and expects it to go live by the end of 2016. Activated by a LiFi beacon positioning system, the ART4U app can enable users to choose between a quick tour and a full tour option (in audio or text for- mat), following which it creates a personalized tour guide for the user. Further, users can also choose to receive trivia on their favorite exhibits or artists in the form of articles and videos that can be downloaded directly on to their smartphones. UAE-based startup Zero.1 develops LiFi enabled app to personalize museum visits Digitizing experiences Marc Fleschen, CEO, Zero.1 Smartphones are packed with connected features like high- definition cameras and GPS that are meant to make life easier, but are they safe? Those same features can also compromise your privacy by capturing photographs and location data without your knowledge or permission. With this being the case, the UAE-based company, Four, is fighting back with the release of its K500 smartphone. In an unprecedented move, the company has completely removed the camera and the GPS on the K500, as these are features that malware depends on. Otherwise, it’s a full-featured smartphone with a quad-core processor, 3G connectivity, the latest Android 5.1 Lollipop operating system, 1GB RAM, 8GB memory, and a 1900 mAh battery. It comes with two screen protectors and a free flip cover inside the box, along with a one-year warranty. But without a camera and a GPS, would you make the switch to this smartphone for the sake of privacy?

Page 56

Entrepreneur july 2016 56 You’ve got your standby suits, shirts and ties, and now you’ve got yet another event to attend. This is when cufflinks come into play- an integral acces- sory when it comes to looking your best. A few years ago, your success in the workplace was dependent on your ability to excel and perform well on the assigned tasks. The modern day success story dictates that you need to focus not only on your performance, but on your personal grooming routine as well. How you pull together your outfit for professional events says a lot about your personality. Dressing the part boosts your self-esteem, thus increasing your chances of being a super- hero at socializing. Working a room well can help to open doors for bigger and better op- portunities, so give yourself an additional confidence boost by paying closer attention to your wardrobe. Fortunately, execu- tive fashion has become very flexible in the past 10 years, and there’s no reason why your attire shouldn’t tastefully reflect your personality. Given that there are literally hundreds of thousands of models of cuf- flinks for you to choose from, you can change things up quite often. In addition to enhancing your overall look and giving you an air of gearing yourself up for achievement, cufflinks actually serve to keep the shirt in line with your choice of jacket. The cufflink fastening function also dispels with the standard-issue unimaginative buttons- al- ways a plus. In terms of outfits for formal occasions, your creativity is admittedly limited regarding what you can and cannot wear. Cufflinks play an especially important role here, and make it possible for you to show off your individuality and sense of whimsy, even. There’s no need for you to get confused with the broad range of men’s cuf- flinks available. As the founder of a startup solely-focused on men’s acces- sories, BoxKnocks, you can imagine my own broad personal selection of cufflinks. Here are some tips on choosing price range and design when building your cufflink collection: • How often will you wear cuf- flinks? If you plan on wearing cufflinks regularly, opt for the affordable models. Inexpensive themed cufflinks are a good fit here, as you’re able to buy many different types to suit your mood and needs. • Do you attend formal events regularly? If so, invest in a quality set of cufflinks that can really convey elegance. This is when you look for a more time- less set, as you should consider this type an investment that can be worn for a few years. • Are you willing to upgrade your shirt style? Cufflinks are meant to replace the button- if you aren’t ready to forgo but- tons completely, start with a collection of three different affordable styles with one in- vestment set. Once you begin to transition away from the button cuff, you can continue adding to your cufflink collection. www.boxknocks.com F rom better goods to boardroom wardrobe bests, each issue we choose a few items that make the approved executive selection list. In this issue, we present BoxKnocks’ cufflinks, skincare for men by Kiehl’s, and better leathers by Aspinal of London. Tips on accessorizing (reasonably) By Tareq Samara Off the cuff business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS CULTURE ‘Trep trimmings The executive selection Lanvin Homme SS16 BoxKnocks Batman cufflinks BoxKnocks Ironman cufflinks Box Knocks Stocks cufflinks BoxKnocks Superman cufflinks BoxKnocks Batman cufflinks

Page 57

july 2016 Entrepreneur 57 The RM 27-02 Aspinal of London Passport Cover Aspinal of London Billfold Aspinal of London Small Harrison Weekender TURN BACK THE CLOCK EDITOR’S PICK Kiehl’s for men ASPINAL OF LONDON man up Kiehl’s Ultimate Man Body Scrub Soap While men’s shower gels are outdoing men’s bar soaps in the fragrance industry, there are still a few skincare companies who know that there are loyal fans of tra- dition among you. Our pick? Get squeaky clean and fresh with Kiehl’s Ultimate Man Body Scrub Soap laden with bran and oatmeal for a nice, wholesome scrub. For your summer jaunts, we’ve chosen better leathers by Aspinal of London. Especially useful for quick getaways and overnighters is the Harrison weekender. We like the Harrison presented in vintage tan croc. Frequent flyers, opt for one of the brand’s sturdy passport covers in black or brown. And for gents who like a slim billfold, they’ve got you covered, too. www.aspinaloflondon.com image credit boxknocks, kiehl’s, aspinal of london It’s been a long day, and those frown lines on your forehead are looking more pronounced than usual. If this sounds familiar, you’re going to like this month’s skincare picks. Stress, time, and even pollution all take a toll on your skin, and to treat (and prevent) the symptoms of aging, we suggest visiting your nearest Kiehl’s for some fixes. On a cleansed skin, apply a thin and even layer of the Kiehl’s Facial Fuel Heavy Lifting Anti-Aging Moisturizer. Ensure that you avoid the eye area by a wide berth. It hydrates, lifts, and firms the skin for an all-around smoother face. Next, take a very small dab of the Kiehl’s Facial Fuel Heavy Lifting Eye Repair and apply in a gentle tapping motion all the way around the orbital bone (your eye zone). This product has dual benefits: lightening and brighten- ing dark circles, and it reduces the appearance of fine lines. For optimal results, apply both face and eye products morning and night. www.kiehls.com

Page 58

Entrepreneur july 2016 58 By Ross McCammon The Esquire Guy’s guide to profanity in the office KEY TECHNICAL MATTERS TREPONOMICS ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO D isclaimer No. 1 This column will assume that your every professional move is not determined by a team of lawyers who are advising you that any use of profanity -espe- cially “sexualized” profanity- could result in a lawsuit. (Although that’s true. See sidebar.) Disclaimer No. 2 The writer of this column works in an office in which profanity isn’t frowned upon. Mainly because it’s fun and, sometimes, fun- ny. (For instance, there are two ways to say, “Hand me that stapler,” and only one of those ways is amusing.) Disclaimer No. 3 If you’re reading this column to find out whether or not to use profanity around customers, the answer is: no [expletive deleted] way. There are many problems with profanity. It’s jarring. It’s potentially offensive. It can seem a little familiar. But there are many wonderful things about profanity, too. It’s jarring. It’s potentially offensive. It can seem a little familiar… and unhinged… and manic. But there are times -in busi- ness and in life- when unhinged and manic are exactly what you need to be. Profanity can be useful. But before we figure out how to utilize profanity, let’s figure out why it’s so powerful. According to Melissa Mohr, whose fascinating book Holy Sh*t: A Brief History of Swearing focuses on that, we all have profane thoughts- it’s just that our brains typically knock them down before we say them. Consider the 10-30% of Tourette’s syndrome patients who suffer from coprolalia, the uncontrol- lable utterance of obscene words. Mohr writes: “Many people have [such thoughts], but their prefrontal cortex -the executive area of their brains- is able to override them and shut them down. The current theory is that people with Tourette’s syndrome have a problem in an area of the brain called the basal ganglia, which plays a role in making choices among several actions and inhibiting certain motor functions. The executive areas of their brains can fight against their limbic urges for a time… but eventually the lower brain wins.” So it’s not that people with copro- lalia have more profane thoughts than the rest of us; it’s that they’re unable to prevent them from being spoken. Profanities aren’t added to our thoughts- they’re there all along. When we utter a profanity, we’re not adding to our language, we’re simply not suppressing it. Profanities represent honest, au- thentic thoughts, and hearing them is a powerful, memorable thing. As Mohr points out in her book, when Massachusetts College of Liberal Arts psychology professor Timothy Jay gave subjects a list of 36 “taboo” and “non- taboo” words, the top five the subjects recalled were from the first category. THE GOOD KIND Not that many people want to go on record saying it, but there is a good kind of profanity. Mikael Berner, co-founder and CEO of Mountain View, California-based EasilyDo, an all-in-one assistant app, says of his company, “We don’t have a hard and fast rule about swearing, but we do have a hard and fast rule about Everyone has profane thoughts. It’s just that most of the time, our brain’s prefrontal cortex shuts them down. In our professional lives, the prefrontal cortex is working very, very hard. When employing a string of profani- ties, it’s best not to jump up and down, Yosemite Sam’s communication approach notwithstanding. It’s OK to say frickin’. It’s OK to say frack- in’. It’s not OK to say frickin’ frackin’. Unless of course you’re talking about fracking, the process by which rock layers are fractured by pressurized liquid in order to release petroleum or gas, in which case frickin’ frackin’ is the funniest possible way to refer to the subject. Dadgummit! works only if you’re from the Deep South. Curses! works only if you’re from the 19th century. “$#&*%” works only in cartoons. “Dollar sign, pound sign, ampersand, asterisk, percentage,” is not an effective profanity when spoken aloud. Either say it or don’t say it. “What the F?” No. “You gotta be S-ing me.” No. “When the K did you get here?” No. (We have no idea what K stands for.) “What the hey?” Absolutely not. “What the H-E-double hockey sticks?” We’re not even going to dignify that with a [expletive deleted] response.

Page 59

july 2016 Entrepreneur 59 But What Does the Lawyer Say? A Brief History of Swearing - IMAGE CREDIT AMAZON being respectful to others. Swearing can be used to express surprise and delight, and it can also be used to be derogatory- and if it’s used in that latter fashion, it’s unacceptable.” But then he told us a story about a business he had worked at in New Jersey, where his manager was adored by the employees. “He was a really good leader, and he served customers well,” Berner says. “For some reason swearing was part of the culture. I don’t know how they never man- aged to make it seem deroga- tory, but I never experienced it that way.” A couple of things here: if you want to see the subtle art of profanity employed with nuance, skill and a certain I-don’t-know-what, look to the people of New Jersey- from its governor on down. Also, in the case of Berner’s example, the reason it didn’t seem derogatory is that it probably wasn’t derogatory. This is the good kind of profanity. And what good profanity can uncover is, well, goodness, not bad- ness. This is profanity spo- ken out of joy, excitement, comfort. Even if it’s spoken out of frustration, its goal is to bring people closer and get them excited. The test is: are you smiling when you say it? (Even if you’re not smiling on the outside, are you smiling on the inside?) Because if there’s no smiling, then what you’re getting involved in is menace. Menace blows. THE BAD KIND The bad kind is very, very bad. The fact that you’re using profanity is almost incidental; it’s the tone of your voice that’s most important- whether you sound like you’re angry. If you’re attempting to bluster around and freak people out, profanity is only going to ac- centuate the fact that you’re out of control. And out of control never works. It may work in the short term to shut people down or moti- vate them toward an action, but in the long term, things will break down. The awful residue of angry profanity isn’t worth the momentary relief. This is why most people say not to use it. Ever. Even the guy who wrote a book about it says not to do it, mainly because of the historical volatility of the words them- selves. Says Jesse Sheidlow- er, editor of The F-Word: “The important thing is how words are used, not how they have been used histori- cally. Things do change over time, and things become less offensive over time, as is the case with almost every- thing; a term like bastard, for instance. But any racial or ethnic or religious term referring to a specific group has gotten vastly, vastly more offensive over time. If I were running a company, I would always want to take a cautious approach.” Here’s a cautious approach: Don’t do it. Unless. Unless what you’re saying could be made funnier, more enter- taining, more memorable, more honest, more authen- tic. Because when profanity is used the right way, what you’re granting is honesty and friendship. For your professional associates, pro- fanity is a window into what you’re actually thinking. When you’re forcefully mak- ing a point via the employ- ment of an expletive, you’re bringing people closer to you and letting them in. That’s a kind of gift. It’s almost touching. Damn. See this article in its entirety at entrepreneur.com We spoke with Michael P. Zweig, partner at the New York office of Loeb & Loeb, to find out the legal issues related to the use of pro- fanity in the workplace. (For the record, Zweig did not, even once, say anything potentially offensive during our conversation.) What are the possible legal issues surrounding profanity in a work environment? You make yourself a target for future litigation if you know an individual is highly sensitized to certain types of speech, and it’s repeated. If a particular individual is subjected to speech on a repeated basis [after making it] known that it is offensive to them, it could be regarded then as personal and directed at that person, as opposed to the environment in general. We’d never do that. Mostly we just yell out profanities due to excitement. With entrepreneurs it may be an open office environment, and some- one may have a primal scream from their desk that may be disruptive or inappropriate in a particular workplace, but it would not reasonably be seen as being directed at a particular employee. If, on the other hand, you’re using sexualized words, enough frequent usages of those words and behavior may be taken as sexual harassment or creation of a hostile work environment. Use common sense. Bottom line? Profanity need not be excised from the workplace completely. Nice.

Page 60

16 - 20 OCT OBER 2016 DUBAI WORLD TRADE CENTRE Launching the Most Global Startup Movement Your opportunity to get funding, pitch, meet investors, find route to market and scale up GITEX S T A R T U P MOVE M E N T Startup Incubation Partner Organised by Supporting Partners To book your pod or secure industry partnerships, contact the GITEX STARTUPS team today: T: +971 4 308 6012 | E: gitexsales@dwtc.com www.gitex.com #GITEXTECHWEEK

Page 61

july 2016 Entrepreneur 61 Why we don’t follow through on what we set out to do (and what to do about it) By James Clear The ancient problem of procrastination The circumstances differ, but the message is the same: commitment devices can help you design your future actions. Find ways to automate your behavior beforehand rather than relying on willpower in the moment. Be the architect of your future actions, not the victim of them. CULTURE business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS B y the summer of 1830, Victor Hugo was facing an impossible deadline. Twelve months earlier, the famous French author had made an agreement with his publisher that he would write a new book titled, The Hunchback of Notre Dame. Instead of writing the book, Hugo spent the next year pursuing other projects, entertaining guests, and delaying his work on the text. Hugo’s publisher had become frustrated by his repeated procrastination and responded by setting a formidable deadline. The publisher demanded that Hugo finish the book by February of 1831- less than six months away. Hugo developed a plan to beat his procrastination. He collected all of his clothes, removed them from his cham- bers, and locked them away. He was left with nothing to wear except a large shawl. Lacking any suitable clothing to go outdoors, Hugo was no longer tempt- ed to leave the house and get distracted. Staying inside and writing was his only option. The strategy worked. Hugo remained in his study each day and wrote furiously during the fall and winter of 1830. The Hunchback of Notre Dame was published two weeks early on January 14, 1831. THE ANCIENT PROBLEM OF AKRASIA Human beings have been procrastinat- ing for centuries. Even prolific artists like Victor Hugo are not immune to the distractions of daily life. The problem is so timeless, in fact, that ancient Greek philosophers like Socrates and Aristotle developed a word to describe this type of behavior: akrasia. Akrasia is the state of acting against your better judgment. It is when you do one thing even though you know you should do something else. Loosely translated, you could say that akrasia is procrastination or a lack of self-control. Akrasia is what prevents you from following through on what you set out to do. Why would Victor Hugo commit to writing a book and then put it off for over a year? Why do we make plans, set deadlines, and commit to goals, but then fail to follow through on them? WHY WE MAKE PLANS, BUT WE DON’T TAKE ACTION One explanation for why akrasia rules our lives and procrastination pulls us in has to do with a behavioral economics term called “time inconsistency.” Time inconsistency refers to the tendency of the human brain to value immediate re- wards more highly than future rewards. When you make plans for yourself -like setting a goal to lose weight or write a book or learn a language- you are actu- ally making plans for your future self. You are envisioning what you want your life to be like in the future and when you think about the future it is easy for your brain to see the value in taking actions with long-term benefits. When the time comes to make a deci- sion, however, you are no longer making a choice for your future self. Now you are in the moment and your brain is thinking about the present self. And research- ers have discovered that the present self really likes instant gratification, not long-term payoff. This is one reason why you might go to bed feeling motivated to make a change in your life, but when you wake up you find yourself falling into old patterns. Your brain values long-term benefits when they are in the future, but it values immediate gratification when it comes to the present moment. This is one reason why the ability to delay gratification is such a great predic- tor of success in life. Understanding how to resist the pull of instant gratification -at least occasionally, if not consistently- can help you bridge the gap between where you are and where you want to be. THE ANTIDOTE: THREE WAYS TO BEAT PROCRASTINATION Here are three ways to overcome akra- sia, beat procrastination, and follow through on what you set out to do. >>>

Page 62

R E S T A U R A N T L O U N G E Solutions Leisure Group are looking for franchise partners across the globe for our award winning brands. Our franchise opportunities have been carefully designed to help you build a business that will have an impact on your local F&B market. To discuss opportunities contact: paul@solutions-leisure.com This New York loft style venue is a multitude of seductive sins; offering a combination of dining, lounge and true city nightlife. The concept focuses on designer pool tables, live DJs and the afterwork crowd. The lavish Asia Asia takes its inspiration from the ancient Spice Route travelled by traders of old. This unique restaurant and lounge showcases the very best of Middle Eastern and Oriental flavours L E I S U R E G R O U P Solutions Leisure Group Office 2302, Swiss Tower, Cluster Y Jumeirah Lakes Towers, Dubai U.A.E +971 4 379 4963 www.solutions-leisure.com

Page 63

july 2016 Entrepreneur 63 Going by the results of a study undertaken by Dubai Design and Fashion Council (DDFC) and Dubai Design District (d3), the MENA region’s design industry is poised for a booming growth- if equipped with the necessary human and material resources. The MENA Design Education Outlook study estimates that “at least 30,000 design graduates” are needed in MENA (a nine- fold increase) by 2019, in order to support the growth projected for the sector. The study reveals that the region’s design industry is expected to grow at 6% over the next five years, and creative industries, emerging as a promising sector, account for almost 1.5% of the region’s GDP. Commenting on the study, Dr. Amina Al Rustamani, Chairperson of DDFC, says that the purpose of the study was to help educators and policymakers identify key industry trends, which can guide in developing curriculums and policies to “nurture the talent pool in the region.” DDFC also says that it will host workshops with design students and professionals and build conversation around initiatives that can better support the region’s design industry with relevant talent. Considering the scope for innovation in design, the report notes that the sector can be a key catalyst to Dubai’s Smart City ambitions. In terms of specific roles, the study notes architecture, fashion and interior design to be professions that will emerge as sought after and will require professionals. While the lack of dedicated design education facilities and courses are identified to be key barriers to growth, structured workforce planning and collaborations among the region’s universities have been cited as solutions that could help manage demand. To address this, the report calls on policymakers to restructure design education in a manner more aligned with industry needs. The study also touches upon the need to learn from and adopt global best practices of international design education hubs such as the USA, U.K., Singapore and The Netherlands. James Clear writes at JamesClear.com, where he uses behavior science to share ideas for mastering your habits, improving your health, and increasing your creativity. To get useful ideas on improving your mental and physical performance, join his free newsletter JamesClear.com/newsletter. To have James speak at your entrepreneurial event contact him jamesclear.com/contact. MENA’s design industry faces a nine-fold increase in demand for design graduates CULTURE business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS Dr. Amina Al Rustamani, Chairperson, DDFC Strategy I Design your future actions When Victor Hugo locked his clothes away so he could focus on writing, he was creating what psychologists refer to as a “commitment device.” Commitment devices are strategies that help improve your behavior by either increasing the obstacles or costs of bad behaviors or reducing the effort required for good behaviors. You can curb your future eating habits by purchasing food in individual packages rather than in the bulk size. You can stop wasting time on your phone by deleting games or social media apps. You can reduce the likelihood of mindless channel surfing by hiding your TV in a closet and only taking it out on big game days. You can voluntarily ask to be added to the banned list at casinos and online gambling sites to prevent future gambling sprees. You can build an emergency fund by setting up an automatic transfer of funds to your savings account. These are commitment devices. The circumstances differ, but the message is the same: commitment devices can help you design your future actions. Find ways to automate your behavior beforehand rather than relying on willpower in the moment. Be the architect of your future actions, not the victim of them. Strategy II Reduce the friction of starting The guilt and frustration of procrastinating is usually worse than the pain of doing the work. In the words of Eliezer Yudkowsky, “On a moment-to-moment basis, being in the middle of doing the work is usually less painful than being in the middle of procrastinating.” So why do we still procrastinate? Because it’s not being in the work that is hard, it’s starting the work. The friction that prevents us from taking action is usually centered around starting the behavior. Once you begin, it’s often less painful to do the work. This is why it is often more important to build the habit of getting started when you’re beginning a new behavior than it is to worry about whether or not you are successful at the new habit. You have to constantly reduce the size of your habits. Put all of your effort and energy into building a ritual and make it as easy as possible to get started. Don’t worry about the results until you’ve mastered the art of showing up. Strategy III Utilize implementation intentions An implementation intention is when you state your intention to implement a particular behavior at a specific time in the future. For example, “I will exercise for at least 30 minutes on [DATE] in [PLACE] at [TIME].” There are hundreds of successful studies showing how implementation intentions positively impact everything from exercise habits to flu shots. In the flu shot study, researchers looked at a group of 3,272 employees at a U.S. Midwestern company and found that employees who wrote down the specific date and time they planned to get their flu shot were significantly more likely to follow through weeks later. It seems simple to say that scheduling things ahead of time can make a difference, but as I have covered previously, implementation intentions can make you 2x to 3x more likely to perform an action in the future. FIGHTING AKRASIA Our brains prefer instant rewards to long-term payoffs. It’s simply a consequence of how our minds work. Given this tendency, we often have to resort to crazy strategies to get things done- like Victor Hugo locking up all of his clothes so he could write a book. But I believe it is worth it to spend time building these commitment devices if your goals are important to you. Aristotle coined the term enkrateia as the antonym of akrasia. While akrasia refers to our tendency to fall victim to procrastination, enkrateia means to be “in power over one’s self.” Designing your future actions, reducing the friction of starting good behaviors, and using implementation intentions are simple steps that you can take to make it easier to live a life of enkrateia rather than one of akrasia.

Page 64

money ask the money guy | vc viewpoint | your money | ECON The key to building fruitful relationships between entrepreneurs and private equity firms By Qais Al Maskati Finding common ground Entrepreneur july 2016 64

Page 65

july 2016 Entrepreneur 65 www.firstequity-partners.com entrepreneurs initially view PE firms as having a completely conflicting agenda to theirs- they think PE firms are expected to acquire a substantial stake in the business at the lowest possible valuation, they will seek to influence decision making. However, reality forces entrepreneurs who seek to substantially grow their business into one of two directions- either shake hands with a PE firm and take the challenge of working within their system of high-risk high-reward, or insist on being the “kings” of their home turf and risk getting stuck in the minor leagues, if not striking out altogether. W hen it comes to the rela- tionship between entre- preneurs and private equity (PE) firms, it is, more often than not, tensed and tangled. On one hand, we have entrepreneurs that aspire to become the next Bill Gates, and on the other, we have the reality of PE firms fighting over control of the companies they invest in, and eventually alienating the founders. In between the two scenarios lies a hazy area of conflict that transcends into admiration with time. This dilemma stems origi- nally from an inner conflict within the entrepreneurs themselves: they are trapped between turning their in- novative ideas into profitable businesses, and maintaining control over these busi- nesses at any price. Until the two parties find com- mon ground between them, entrepreneurs won’t be able to realize their dreams, while PE firms won’t be able to facilitate the path to those dreams. Entrepreneurs live by a belief that goes something, like, “I came up with this revolutionary concept, and I’m the most suitable to manage it.” This belief is true at the initiation of any venture, since the entrepre- neur is the concept genera- tor, and he/she is fully aware of the market needs for this concept. The entrepreneur is also the founder of the first business environment of this concept by employing a team and forming an organization at its early stages. It is this strong level of involvement and commitment that makes the entrepreneur deeply attached to his “baby,” and be willing to sacrifice time and income just to see his dreams of future wealth and leadership materialize. Not long after setting up their establishments, entre- preneurs start to realize that their passion, commitment and financial resources are not enough to lead these es- tablishments. Once the first product of the organization is launched, entrepreneurs find themselves in front of a new business challenge. It’s a challenge that requires a completely different set of skills than what was needed for innovation, and requires an environment with a high level of managerial and administrative skills in marketing, financial plan- ning, customer services and corporate governance- most of which are lacking in most first-time entrepreneurs. It is at this moment, entrepre- neurs start looking for out- side investors starting with friends and family, moving to angel investors, and eventu- ally entering the domain of PE firms. It is very natural for entre- preneurs and PE firms to start off their relationship on the wrong footing. After all, entrepreneurs initially view PE firms as having a com- pletely conflicting agenda to theirs- they think PE firms are expected to acquire a substantial stake in the busi- ness at the lowest possible valuation, they will seek to influence decision making, they want to attempt to control any major spending on manpower or capital items, and they will over- burden the business with debt. These expectations push entrepreneurs into the “stay alert” mode, and make them wary of dealing with PE firms. However, reality forces entrepreneurs who seek to substantially grow their business into one of two directions- either shake hands with a PE firm and take the challenge of working within their system of high- risk high-reward, or insist on being the “kings” of their home turf and risk getting stuck in the minor leagues, if not striking out altogether. PE firms as plenipotentiary investors Once entrepreneurs decide to work with PE firms, these companies engage in a long process of restructuring the business, corporatizing it and infusing it with as much efficiency as possible. But this process tends to add fuel to the fire in terms of the relationship between these two entities- at least until positive results start >>>

Page 66

Entrepreneur july 2016 66 FEP (First Equity Partners) manages the largest ready mix producer in the Eastern coast of UAE with 65% of that market money ask the money guy | vc viewpoint | your money | ECON to show up. It is only then that entrepreneurs start tru- ly appreciating the role of PE firms in taking their dreams closer to reality. But until then, many businesses along with their entrepreneurs keep challenging the efforts made by the newcomer in their midst- the PE firm. The main areas that usually result in serious challenges can be categorized into three groups: 1. Organizational restructuring Corporate governance Entrepreneurs start off their dreams as a one-person- show effort, more than a structured set of processes. This is where PE firms contribute immensely in transforming individual entities into profit-seeking corporates through: • Introducing governance structures for a board of directors that address nomi- nations, evaluations, remu- nerations, and resolving any conflicts of interest for board members • Setting clear guidance on investment policies and risk tolerances • Introduction of periodic monetary as well as opera- tional performance reporting systems • Evaluation of executive management’s performance against a set targets, and deciding on appropriate compensation programs • Introduction of opera- tional manuals for different divisions of the business and proper distribution of responsibilities We at First Equity Partners have had a rich experience in this area. We are present at the boards of all the compa- nies under our management, and we are actively pursu- ing corporate governance programs at these boards. We have also introduced comprehensive reporting systems at our managed companies that range from monthly, quarterly and an- nually keeping us on top of both the operational as well as the financial performance of these companies. Preparing tomorrow’s entrepreneurs and manage- ment teams Entrepreneurs often refuse to face the reality that their skill set does not match the needs for growing their busi- nesses to the level they de- sire. It is this deficiency that makes them seek the help of experts such as PE firms. The other side of the story is where PE firms start grooming a second line of management. This grooming process has an economical as well as an ethical angle to it. PE firms make it well known to all parties that they are not seeking to become a permanent investor in the business, and thus will ultimately seek an attractive exit at some point in time in the future. Once an exit event takes place, PE firms need to prove that upon their departure, the business can function just as efficient as it had under their man- agement. This can only be proven with a second line of management that is trained, equipped and exposed to the challenges of decision- making. We at First Equity Partners have allocated extensive resources to setting up a sec- ond line of management in most of the companies under our management. We have even gone beyond that by liaising with higher educa- tion institutions to nurture several graduates through an entrepreneurship program that could produce a new breed of young and talented individuals who can one day, in the not so distant future, lead world-class organiza- tions. Change of management (when needed) Entrepreneurs sometimes turn to PE firms when they face financial difficulties or when growth stall. Both of these scenarios could be linked to management style. To make a change in these areas, a change in manage- ment might be required, and PE firms are ready to take such harsh decisions even if the change entails limiting PE firms allocate resources to improve the financial position of their investee companies as they seek a future exit event at attractive returns. This is the key driver for PE to gradually start showing improved financial results. Over time, entrepreneurs start to appreciate the management style of PE firms.

Page 67

july 2016 Entrepreneur 67 FEP manages a leading steel manufacturing group targeting a 20% market share in Egypt by 2017 Qais Al Maskati is the CEO of First Equity Partners. Al Maskati has over 20 years of experience in real estate development and private equity in the GCC region. He was a co-founder of three leading real estate development companies in Bahrain and Saudi Arabia. He was instrumental in listing Bahrain’s first real estate company on the local stock exchange with a parallel listing in Kuwait. Al Maskati established a mortgage finance company in Bahrain and set up an asset management firm licensed by the Capital Markets Authority in Saudi Arabia. He holds a BSc in Industrial Engineering from Kansas State University, USA. In order to achieve financial improvements, corporations usually require process enhancements and productivity improvements. This is an area where PE firms tend to put a lot of efforts trying to optimize the processes and increase productivity levels. images courtesy fEp (first equity partners) the entrepreneur’s role to the Board of Directors and assigning their hands-on management roles to new executives. This is why many PE firms insist on acquiring a majority stake or a block- ing minority in order to enforce decisions. Change management Entrepreneurs set up their businesses with a certain approach towards work ethics, work execution and personal interaction. As PE firms come into the picture and start to bring a change, resistance heightens from employees loyal to the founders. Cooperation in sharing information can be minimal, interaction with the PE management team can be unproductive, and commitment to new strate- gies can be half-hearted. If PE firms aim to succeed, they need to address this resistance, and win back the attention of their audience. 2. Financial Restructuring Capital restructuring PE firms use their financial size and vast contact net- work to secure competitive finance facilities for smaller entrepreneurs. In the last five years, First Equity Partners has arranged close to US$1 billion in debt for the benefit of our man- aged companies. This fund- ing is essential in growing them to become influential players in their industries and markets. Increasing revenues and con- trolling costs Even prior to investing into the companies, PE firms thoroughly study potential options for increasing revenue and cutting costs. Once invested, they start implementing these strate- gies in an attempt to unlock more value. PE firms allocate resources to improve the financial position of their investee companies as they seek a future exit event at attrac- tive returns. This is the key driver for PE to gradually start showing improved fi- nancial results. Over time, entrepreneurs start to ap- preciate the management style of PE firms. Expansion through acquisitions It is not uncommon for PE firms to seek mergers or acquisitions into competing or complementary business lines. Many PE firms step into investments with a vi- sion of creating an industry leader born out of the amal- gamation of several smaller businesses that share clear synergies among them. Our experience in First Equity Partners, and specifically in the building materials sector, include the creation of a dominant industrial group in the GCC with formidable market position. This group was the result of several rounds of acquisitions of several smaller companies some of which were distressed and then ultimately operating them under a single vision and strategy. 3. Operational Restructuring Process Reengineering In order to achieve financial improvements, corporations usually require process en- hancements and productiv- ity improvements. This is an area where PE firms tend to put a lot of efforts trying to optimize the processes and increase productivity levels. During First Equity Part- ners’ entry into the heavy- industry sector, we realized that continuing with the traditional production process was futile. The sector we were involved with had a new set of rules that governed it, mainly the limited supply and high cost of energy. As a result, we sought partnership with a leading technology provider and introduced their latest energy-efficient processes to counter the rising energy risk in the sector. When entrepreneurs start to believe in the miracles a PE firm can achieve, and the business transforms into a successful venture, that’s the moment when PE firms decide to cut the cord. By all means, not all ventures are successful, and not all rela- tionships end happily ever after. But there is enough academic research that documents the substantial value that PE firms bring to their investee companies. Entrepreneurship starts with a vision, but needs a lot of hand holding to be trans- formed into a successful reality. This is the true role of PE firms.

Page 68

Entrepreneur july 2016 68 money ask the money guy | vc viewpoint | your money | ECON 0 10 20 30 Qatar Bahrain Saudi Arabia GCC Kuwait Oman UAE Syria Egypt Palestine Jordan Non-GCC Tunisia Lebanon Yemen Morocco .5% %1 %2 %2 %2 %2 %4 %4 %5 %6 10% %13 %15 %16 20 % %24 Bank lending to SMEs in MENA Region (% total bank lending) Source: Al­Yahya and Airey (2013) Developing crowdfunding ecosystems in the Middle East By Shakeeb Saqlain F or most founders and CEOs, raising money for their startups is never fun. “Fundraising is hard,” notes Paul Graham, co­ founder of Y Combinator. “Hard like lifting a heavy weight, and hard like solv- ing a puzzle. It’s hard like lifting a weight because it’s intrinsically hard to convince people to part with large sums of money. [And] fundraising only seems a puzzle because it’s an alien world to most founders.” In the Middle East, the fundraising challenge is even greater. Startups have very few sources of financing with most being dependent on per- sonal resources, family and friends. They face immense difficulties in obtaining bank financing in addi- tion to bearing the burden of debt repayment in the initial stages of development. This is evident from the fact that bank lending to SMEs in the Middle East and North Africa (MENA) region is, on an average, only 8% of the total bank lending. The limited sources of financing gives rise to an estimated funding gap of about US$360 billion in the region. When Dubai-based self storage company, The Box, needed funds to expand further, it found that ob- taining a bank loan was not only time consuming and cumbersome, involving a lot of paperwork, but for small firms, it also meant unreason- ably high rates and a high chance of being rejected. To overcome these difficulties, it chose to use a crowd- funding site, Beehive, where it raised AED400,000 within an hour of going online. Crowdfunding is an internet-enabled collaborative activity that allows organizations to raise funds by col- lecting a small amount of money from multiple individuals, and it is changing the way startups raise money by helping fill this “fund- ing gap.” SMEs like The Box are no longer dependent on banks only, and have alternative means of fulfilling their capital needs. Benefits of crowdfunding Crowdfunding has led to a funda- mental shift in how entrepreneurs raise funding and develop their busi- nesses. Some of the key benefits of crowdfunding include: •Makes the funding process faster and more efficient since the entire process is online, with global reach. • Increased transparency due to “crowd vetting” which ensures genu- ineness of a project and company. • Improves the visibility for compa- nies by providing investors with a centralized database of projects. • Allows entrepreneurs to determine the possible demand and viability of their products without having to invest huge amounts in manufactur- ing and distribution by gauging the crowd’s response to their funding appeal. Types of crowdfunding Crowdfunding platforms in the Middle East are relatively young, but already there is a diverse range:

Page 69

july 2016 Entrepreneur 69 Regulation and transparency Develop a clear regulatory framework that supports transparency and allows market development and innovation. Education Increase awareness about crowdfunding by organising regular educational programs. Networks Crowdfunding platforms must collaborate with universities, industry, incubators and accelerators, building a network that supports firms from concept stage to becoming commercially viable. Technology Effective crowdfunding environments enable entrepreneurs to easily share their ideas through social media and the internet. Friends and family For most startups, friends and family provide the initial support. The success of crowdfunding platforms depends on their ability to tap into this network. While the contribution of crowdfunding in the Middle East remains relatively small, the potential is enormous. With increasing government engagement and investor appetite, the region’s crowdfunding platforms are primed for takeoff. Shakeeb Saqlain is the CEO of IslamicBanker.com, a platform for the global Islamic banking industry. Shakeeb previously worked at Bloomberg L.P., specialising on their Islamic finance portal. More recently, he has held senior roles at Dubai Islamic Bank, Morgan Stanley and Barclays Capital. His academic interests center on development economics and creating entrepreneurial ecosystems in emerging markets. july 2016 Entrepreneur 69 2015 2014 2013 2012 $34.4bn $16.2bn $6.1bn $2.7bn Funds raised via crowdfunding platforms globally, 2012-­2015 Source: Massolution (2015) Funds raised via crowdfunding platforms by region (2015), in $ Source: Massolution (2015) 20 Europe MENA 23.1 million 6.48 17.25 North America 18 16 14 12 10 8 6 4 2 0 Donation-based crowdfunding Such campaigns or projects collect finances usually for social causes and do not provide anything in return to the funders. Example: Zoomaal, Lebanon. Rewards-based crowdfunding Such projects lay out varying levels of rewards depending on the amount of funds contributed. Example: Af- karmena, Jordan. Equity crowdfunding These proj- ects provide the funders with equity shares in return for their contribu- tion. Example: Eureeca, UAE. Debt-based crowdfunding Contri- butions towards a project are treated as loans. Example: Beehive, UAE. Global trends in the adoption of crowdfunding Crowdfunding has seen phenomenal growth globally with the total funds raised increasing from $2.4 billion in 2012 to $34.4 billion in 2015, amounting to a CAGR of 88.93%. The most popular crowdfunding markets are the United States and Europe, with 69% of the total fund- ing volume being raised in these two regions. United States’ crowdfund- ing platforms raised $17.25 billion in 2015, while European platforms raised $6.48 billion. The United Kingdom has the most well devel- oped crowdfunding ecosystem with clear regulations on transparency and consumer protection, including setting minimum capital standards and requiring firms to have resolu- tion plans in place, ensuring that loans continued to be repaid even if the platform collapses. While crowdfunding is slowly gain- ing popularity in the MENA region, it is still in the early stages with only $23.1 million being raised via crowd- funding in 2015. Building crowdfunding ecosystems in the Middle East Burgeoning youth unemployment is one of the biggest challenges facing the Middle East. The good news is that the region has a rich tradition of entrepreneurship, and nowhere is that more apparent than in the fast growing startup scene. But creating vibrant crowdfunding ecosystems requires more than entrepreneurs and investors, with a number of important factors involved:

Page 70

Register now for FREE entry THE HOME OF REAL ESTATE INVESTMENT Cityscape Global 2016 is the largest and most influential real estate investment and development event for emerging markets globally. Bringing together investors, developers, government officials and real estate professionals, there is no better place to find investment opportunities and new business partners. www.cityscapeglobal.com +971 4 336 5161 info@cityscapeglobal.com Organised By Foundation Partners Platinum Sponsors Supporting Partner Regional Broadcasting Partner Research Partner Official Classified Partner Official Magazine Official Russian Publication Official Turkish Business Publications Registration Trustee Partner

Page 71

july 2016 Entrepreneur 71 in pictures Women-led local impact projects showcased and rewarded at e7 summit 2016 Women on a mission Ghanmt team being awarded the project grant by the judges Sonia Weymuller, Founding Partner, VentureSouq and mentor for e7 program 2016, with the Masaari team Jury panel for the e7 pitch event Mootary team being awarded the project grant by the judges F emale empowerment, youth literacy, cultural education, envi- ronmental protection, and family counseling- these were just a few of the issues that took center stage at a projects showcase session of the 2016 class of e7 Daughters of the Emirates (e7) program. e7, the flagship leadership program of community platform Promise of a Generation, held a pitching session for its 2016 class (its second batch) to display their projects and secure grants from primary sponsor Emirates NBD on June 18, 2016. Since the commencement of the batch in April, the young women aged 18-25, with guidance from a network of e7 mentors, have developed and refined their ideas into workable solutions that allow them to both realize their potential and also give back to their respective communities. Through the delivery of five-minute pitches of their ideas, followed by Q&A ses- sions, the teams enthusiastically attempted to convince an elite panel of judges about the core need for the project, its financial feasibility and potential social impact, among other factors. The jury included Najla Al Midfa, General Manager, Sheraa Sharjah Entrepreneurship Centre, Vikram Krishna, Executive Vice President, Head of Group Marketing & Customer Experience, Emirates NBD, Elena Cruz, Vice President, Head of Brand Management and CSR, Emirates NBD and Michael Mansour, Chief Innovation Officer, Microsoft Gulf. Fol- lowing the pitches, grants amounting to AED20,000 were awarded to four of the projects: Let’s Lead, a project proposing creation of a support community of young women; Mootary, a project promoting participation of women in the automotive sector; Ghanmt, an idea aiming to create awareness of Emirati culture and heritage; and Masaari, an internship program for high school students. Besides these grants, Emirates NBD also awarded AED5,000 each to support the remaining projects, putting their total contribution towards the e7 cause at AED100,000. In addition, Al Midfa of Sheraa Sharjah will help connect the female innovators to organizations in her network, while Microsoft Gulf has extended a one-week internship to two of the teams. www.poag.ae

Page 72

Entrepreneur july 2016 72 The Arab world has seen more new accelerator programs launch in recent years than ever before By Miklos Grof start it up ecosystem | who’s got VC | Q&A | STARTUP FINANCE Sparking innovation graphs : global acceleration report 2015 by gust T he Middle East, like the world economy, is becoming increasingly shaped by the innovation conceived in startup companies. In recent years, startup accel- erators have come to play a major role in fostering the growth of the region’s technology ideas and turn- ing them into full-fledged businesses. In many ways, accelerators have become the new business school for thousands of entrepreneurs across the Middle East and around the world. In an effort to better understand the state of the world’s accelerator industry, Gust and Fundac- ity partnered on the Global Accelerator Report 2015 to understand how the accelerator industry has developed across five global regions: the United States & Canada, Latin America, Europe, Asia & Oceania, and the Middle East. The results of this report un- covered how accelerators are funded and monetized, while providing insights into the direction of the industry in the near future. Broadly speaking, in all regions around the globe, the startup accelerator in- dustry has integrated with and influenced the growth of their respective tech sectors. They have become fundamental in helping early-stage ideas turn into viable businesses and tech- nologies. Angel investors and VCs often heavily rely on the work of accelerator programs. For Arab na- tions in the Middle East, the accelerator industry is characterized by its recent, emerging strength and interest in diverse business models. While in the West, the growth of the accelerator industry began to take hold in 2005 with the launch of Y Combinator, the Arab nations of the Middle East have seen more new ac- celerator programs launch in recent years than ever before- in fact, most accel- erator programs launched in just the last three years. In 2015, the Middle East region as a whole grew fast- er than the United States & Canada, Asia & Oceania, and Latin America, and today, the Arab nations of the Middle East are home to 12 qualified accelera- tor programs, supporting over 236 startups with investments totaling about US$3.5 million. Compared to other re- gions around the world, the Arab nations of the Middle East are in parity in terms of the ratio of non-profit accelerators, totaling about 25% of all programs. Most other regions around the globe tend to be comprised of 25% to 35% non- profits. Unlike for-profit models, these accelerators typically do not require equity stakes from startups in their programs, and they tend to focus on industries that have a specific public benefit, such as health tech and ed tech. Non-profit accelerators are often also focused on providing op- portunities for minority groups who may not be able to access capital as easily through traditional chan- nels. In the Middle East, these are found in the UAE, Lebanon, and Palestine. Accelerators are notori- ously difficult to monetize in the short term (within 12 months), because early stage ideas can often take several years to develop and test before they are successfully marketable and profits are returned to shareholders. To support this period of early incuba- tion, governments around the world often provide subsidies and grants to support accelerator pro- grams. In the Arab nations of the Middle East, 24% of accelerators reported re- ceiving a mix of public and private funding, or were 100% publicly funded. This is significantly lower than in any other region globally. Additionally, 75% of accelerators reported that they are solely funded through private capital. Traditionally, most ac- celerator programs are modeled to earn revenue through startup exits, when profits are returned to shareholders. Yet, a global trend is occurring where more accelerator programs have implemented or plan to implement alterna- tive revenue strategies, including hosting events, charging fees for mentor- ship or housing, corporate sponsorships, and other similar strategies. In the Middle East, the percent- age of accelerators in Arab nations that report their willingness to implement

Page 73

july 2016 Entrepreneur 73 Miklos Grof is the Director of Product and Business Development at Gust. these revenue models was higher in both the long-term (66%) and the short-term (91%), than almost any other region. The only excep- tion was Europe, where a greater percentage of accelerators reported plans to rely on alternative revenue sources for the short term (97%). Similar to other regions around the world, a large number of Middle Eastern accelerators in Arab nations reported relying on partnerships with corporations and corporate sponsorship for revenue generation in the short term (50%) and in the long term (41%). In- creasingly, both mid-sized and large corporations look to startups for innovation, and this will likely lead to a closer relationship between the Middle East accelerator industry and corporate backers. Interest- ingly, accelerators in the Middle East reported that they are less likely to monetize in-house services (8-16%) compared to other regions like Europe, Latin America, and Asia & Oceania (20% on average). For the Arab nations of the Middle East region, the accelerator industry has a substantial presence in Lebanon, Jordan, Egypt, Saudi Arabia, and the United Arab Emirates. Among the top active accelerators in the region in 2015 are in5 Innovation Center with 70 startups graduates, and the UK Lebanon Tech Hub with 45 startups graduates. In terms of total capital investment, the leading accelerator in the region is Flat6Labs with $1.2 million. Middle East accelerators in Arab nations also reported a substantially higher interest in investing in startups over the next 12 months that are focused on the mobile apps (83%), internet of things (75%), fintech (66%), and wearables (66%). The least favored startup categories were in biotech (25%), drones (25%), and real estate (8%). The Arab nations of the Middle East’s accelerator industry stands out among the other regions examined in Gust and Fundacity’s Global Accelerator Report 2015 as having more diversified accelerator business models and exceptionally high and recent growth. Compared to other regions, accelerators in the Arab nations of the Middle East, while equally likely to be a non-profit, are more likely to rely on corporate sponsorship. Yet they are also resistant to the idea of charging startups for in-house services like events, housing, mentorship, and other similar strategies. All these characteristics point to a robust accelerator industry that will, in turn, spark innovation, support local economies, and in tandem with a global technological trend, continue to help transform and shape the world around us.

Page 74

Entrepreneur july 2016 74 start it up MadfooatCom envisions cashless payments for Jordan… and the rest of the MENA too By Sindhu Hariharan ecosystem | who’s got VC | Q&A | STARTUP FINANCE Skip the queue Left to right: Ashraf Elayyan; COO , Nasser Saleh, Founder and CEO, Samar Al-Banna, Chief Commercial Officer, and Mohammed Abu Adel, chief investment and expansion officer From left to right - Ashra and Mohammed Abu Ad “The main strength was our software applica- tion and the strong team behind it, and to compen- sate for the weakness in company infrastructure, financials and credibility, we partnered with EMP [Emerging Markets Pay- ments group], the ATM switch operator in Jordan. And then as a consortium, we won the project.” T he popular saying, “Ne- cessity is the mother of invention,” best describes Nasser Saleh’s start as an entrepreneur, when he returned to settle down in Amman, Jordan, after years of living abroad. Spend- ing hours in long queues trying to pay his utility bills in cash (they did not even accept his credit card) stimulated his ingenuity to solve the difficulties encountered in mak- ing payments for utilities, telecom, government and other sectors. This led to creation of MadfooatCom, an electronic payments solution company that connects banks, billers and customers, facilitating digital bill payments and inquiries. Be- ing a first-time entrepreneur, Saleh reached out to Oasis500 for sup- port to launch the startup, and then MadfooatCom eventually went on to win the contract from Central Bank of Jordan, becoming the operator for the national electronic bill payment services portal, eFawateerCom. The startup’s solution acts as an intermediate bridge between billing entities and banks, allowing the entire payment cycle to be carried out digitally, in a secure manner. This way, the platform benefits all stakeholders involved– bankers are able to save time and cost and improve customer service, billers can improve payment collections and reduce physical queuing, and cus- tomers make payments in one click through internet banking, mobile banking, etc. Saleh admits that while it was difficult to acquire custom- ers just on its merits, the Central Bank’s vote of confidence, which they achieved thanks to the “persistence of the team,” was an inflexion point of sorts for MadfooatCom. “Win- ning the tender was not easy,” Saleh explains. “The main strength was our software application and the strong team behind it, and to compensate for the weakness in company infra- structure, financials and credibility, we partnered with EMP [Emerging Markets Payments group], the ATM switch operator in Jordan. And then as a consortium, we won the project.” There has been no looking back for the fintech startup since then. Since May 2014 (which was when the startup went live), MadfooatCom claims to have connected 95% of the banks in Jordan with over 50 utili- ties companies, telecom companies, and other government entities, and is today processing an average of 4,000 bills daily in what is largely a cash- based nation. However, these num- bers do not reveal the kind of uphill journey the startup undertook to get to this point. While fintech may seem like an attractive sector to start a company in today, things weren’t the same back in 2011. “The main chal- lenge [we faced] was changing the mindset, not only of customer, but [also] of corporate billers.” To tackle this, MadfooatCom undertook mar- keting efforts at the corporate level, explaining benefits of e-payments to the companies and their custom- ers, and have now widened their campaign to market directly to the customers, which includes efforts to support e-commerce payments. According to a recent report by Ac- centure that analyzes global fintech trends, worldwide investment in such ventures reached US$5.3 billion in the first quarter of 2016- a 67% increase over the same period last year, and the share of investments going to fintech companies in Europe and Asia-Pacific nearly doubled to 62%. Seeing increased investor interest, incubators and accelera- tors across the region too have set up niche accelerators to help build the fintech ecosystem, and MadfooatCom too is now considering “creating a fintech incubator” to nurture this sector. Speaking about this marked rise of the sector as a disruptive force, Saleh says that while progress made by fintech in the region is “good,” there is still a “big room for enhancements.” The existing mindset of the conventional industries about

Page 75

july 2016 Entrepreneur 75 Being a first-time entrepreneur, Saleh reached out to Oasis500 for support to launch the startup, and then MadfooatCom eventually went on to win the contract from Central Bank of Jordan, becoming the operator for the national electronic bill payment services portal, eFawateerCom. www.madfooat.com ‘TREP TALK ME Nasser Saleh, founder and CEO, MadfooatCom On how Endeavor Jordan has helped the startup “Endeavor is really a great resource that helped me and still helping in many aspects. Their rich network of mentors, advisors and entrepreneurs is unmatchable; I consider them like an HR or a personal advisor who are neutral and very helpful whenever you need them.” On starting up a business in the MENA region “Keep a positive attitude, be careful of cash flow, and have strong supportive network of mentors like Endeavor... Create a solution to an existing pain, find the right people to help you (team, mentors, angel investors, etc.), and the most important thing to have a strong belief in God, yourself and your startup.” On the importance of corporate support for startups “Partnerships with large corporations is vital for startups as they boost the credibility of the startup, complete the weakness points that we have. It’s like when a small boat in the ocean detaches with a large ship to sail through the large waves. In MadfooatCom’s case, it was very difficult to win the Central Bank tender without partnering with EMP.” Nasser Saleh, founder and CEO af Elayyan; COO , Nasser Saleh, Founder and CEO, Samar Al-Banna, Chief Commercial Officer, el, chief investment and expansion officer the concept of fintech, and availabil- ity of investment remain key chal- lenges in MENA, says Saleh. On its part, even as a novice, Mad- fooatCom raised seed funding from the Jordanian incubator Oasis500 and angel investors from Jordan and Saudi Arabia. More recently, three banks -Capital Bank, Cairo Amman Bank and Etihad Bank- have come on board through a Series A capital injection of $5 million in Madfooat- Com. Saleh says they are also looking to raise a Series B round of around $15-20 million to fund their “expan- sion in emerging markets.” Some of these emerging economies that have caught MadfooatCom’s eye include Algeria, Palestine, Kenya and Moroc- co, with significant headway already made in Algeria. “We started estab- lishing the company there [Algeria], got the verbal approval from the Central Bank and main banks and billers there,” says Saleh. He adds that Algeria is a country that has almost 100% cash payments and though he expects it to be difficult to disrupt such a culture, there is a “great opportunity once successful.” In terms of competition, Madfooat- Com claims to not have any direct competitors in Jordan, but nevertheless there are companies such as Fawry in Egypt and other players across the region, transform- ing the way we make pay- ments. Notwithstanding the general skepticism towards fintech in Jordan and the larger MENA region, Saleh is optimistic about the future, and hopes to make strides on the back of lessons he has learnt in building the startup.

Page 76

Entrepreneur july 2016 76 Clean sweep Startup JustMop wants to become the go-to spot for home services in the region By Pamella de Leon start it up ecosystem | who’s got VC | Q&A | STARTUP FINANCE JustMop founders Ali Cagatay Ozcan and Kerem Kuyucu F rom transportation to groceries, to health and beauty services and free- lancer providers, on- demand startups are on the rise. In the U.S. alone, Harvard Business Review gathered from the U.S. Census Bureau’s American Community Survey that the on-demand economy is engaging more than 22.4 million consumers annu- ally and US$57.6 billion in spending. Joining the MENA ring of this particular sector is the startup JustMop- an online marketplace for domestic cleaning services operating in Dubai, Abu Dhabi and Qatar. The startup was launched in February 2015 by Kerem Kuyucu and Ali Caga- tay Ozcan, both of whom are former Rocket Internet Turkey department heads that have launched operations in differ- ent regions. Ozcan comes from streamlining fashion ventures of Rocket Internet South East Asia, having launched and expanded Foodonclick as Head of Business Intelligence and Marketing departments; he also headed operations and international expansions of SellAnyCar.com as Director of Operations. Kuyucu joined the startup life as a founding team member of Rocket Internet Turkey, moving on to start Foodonclick.com’s Qatar op- erations from scratch, and was then tapped to lead Carmudi’s Middle East expansion to five countries, before co-founding JustMop. Clearly, it’s not their first foray to entrepreneur- ship; the co-founders have developed their skillset and know-how about the region and market. And it’s exactly the innate itch for entrepre- neurship that has kept the duo to keep a lookout for gaps in the market- Kuyucu recalls that after Rocket Internet Tur- key shut down in 2012, “we were unprepared and heart- broken, but we thought it was a sign for us to do something on our own.” Fast forward to 2014, Ozcan moved to Dubai with his wife, who asked him to look for a cleaning service company, and thus found the city’s ineffectiveness of finding the right crew for that purpose. While he was sharing this frustrating experience, the two entrepreneurs noticed an understated problem: “Peo- ple were not able to find a top- notch cleaning service in their first trial. We then decided we would build a marketplace, where we provide our users with all well-trained, five-star maid services.” And that they did- their MVP was live in December 2014, which took, as Ozcan points out, just 39 days from ideation to execution: “When we say MVP, we mean it. If you want to implement a globally proven business model in a new market, speed is the key and every day counts.” JustMop’s develop- ment stage included focus groups with potential users, individual cleaners and clean- ing companies in the local market, developing a business plan, refining process flow, and designing mock-ups, followed by a soft launch of the MVP to give access to the beta platform to selected participants, giving the team a chance to refine the program. Bringing in the idea for its SaaS -which was what got me intrigued about the startup during its pitch at WOMENA’s pitch event a few months ago- Kuyucu explains how they’ve been doing ground work too since the beginning of the platform- being the call center agents, sitting down with the customer service department of partners and even driving the cleaning crew members to clients’ places. It was with this that they’ve noticed inefficiency problems: “The cleaning industry was very traditional and slow-moving, and it needed a transforma- tion from paper to digital.” It was then that the duo came up with the idea for the feature- the JustMop SaaS, a deep learning software, which provides home service compa- nies statistics and overview in managing daily operations in real-time, allowing companies to schedule appointments, manage clients, grow and hire staff and accounting processes, with an analytical perspective and a fluid UX design interface. Ozcan adds that its next phases would in- clude other home services and multi-currency offerings for other countries: “The whole model is based on deep learn- ing. The more companies use our SaaS, the more capable and complex but still simple the product is going to be- come. The broader vision we have for the following phases

Page 77

july 2016 Entrepreneur 77 The consumer experience “It is all very simple. A homeowner books our services through our website or mobile app in under a minute. If they are a first time user, they receive a phone call within an hour of making the booking to be welcomed and to see if they have any special requirements. Our well-trained professional staff ar- rives punctually at their doorstep and the homeown- er just has to figure out what to do with the extra four hours a week that they won back!” Partnering with cleaning companies “We work with only the best cleaning companies in the region. Once we partner up, we give their clean- ers an on-boarding training and conduct interviews with each of their cleaners. Simply, we handpick the cleaning providers that we work with. After the on- boarding process is finalized, we start sending them new customers to get them fully booked and give them access to use our cutting edge SaaS platform to manage all daily operations.” The vetting process “The cleaning companies and their cleaners are vetted all in person by one of our founding core team members. This entails investigating the living premises of the cleaning company employees as well as auditing their pay to ensure fair treatment. Once we decide to partner up, a third-party specialist that we contract background checks each of the cleaners as well as their employers, and we give a compre- hensive training to each of our cleaner partners. Efficiency is ensured by our follow up system which asks our customers to rate each cleaning session, and if a cleaner’s rating falls below 4.0 out of 5.0, they first receive additional training. If this repeats, this cleaner is no longer qualified to work with JustMop.com.” How JustMop works www.JustMop.com is to give companies the power to launch their online web- sites in a few clicks and start getting orders.” As its business model, once a cleaning company completes a session, they pay JustMop a commission, and are additionally charged a fee for JustMop’s software. The self-funded startup recently closed a round with an undis- closed amount in December last year (although Ozcan says it’s sufficient for the next 12-18 months), led by Nevzat Aydin, the founding CEO of Yemeksepeti, joined by inves- tors Aydin Ozol, Executive Director and Gokce Kabatepe, Managing Director, both from Raiffeisen Investment. Bertan Yeniceri, an angel investor from Turkey, was their first in- vestor, and with the new capi- tal, they plan to attract top talent, build proprietary tech and international growth. At the time of writing, Ozcan says the startup has made “over a million dollars in gross rev- enue, with more than 30,000 cleanings in less than a year,” and that their business has “grown at a rate of over 20% MoM since inception,” operat- ing in three cities and two countries, with preparations to launch in a third country. Talking about the hurdles of growing in MENA, Kuyucu says that if there’s one thing that hinders the region’s start- ups, it would be attracting the right talent with limited resources. “The dilemma here is not to find the right person, but finding the right person in a timely manner within the budget you set. It is very time consuming, as it requires a thorough research and then a lot of motivational talks, vision-sharing conversations to get them on board.” Their dedication on finding the right team makes sense- though they welcome competition as it validates the market and the idea. When asked about U.S. counterparts breaking ground in the region, and local and regional competitors, the duo believes they have great dif- ferentiators to stand out. They assert that their team (whose background consists of famil- iar MENA startups Foodon- click, Carmudi, SellAnyCar and Microsoft HQ), along with their tech focus on having a deep learning based algo- rithms, and “our attitude in which we conduct businesses” of caring for their customers, sets them apart. Having launched their Abu Dhabi and Qatar operations, due diligence analysis for oth- er potential markets and two more countries, and building their team is on the pipeline. An online payment gateway has also been released, let- ting customers pay through the app on iOS, Android and Window phones. “The real deal is on our SaaS side,” says Kuyucu, speaking highly of their CTO’s background in deep-learning with a focus on artificial neural network based algorithms, as he shares some of the cool features that’s coming, which includes being able to anticipate users’ booking habits and suggest a crew member when they need a service, plus matching a first-time user with a do- mestic service that was highly recommended. Eventually, the startup wants to become the go-to for both users to order any home services and for home service companies to utilize JustMop’s SaaS to manage operations.

Page 78

NEW GOVERNMENT APPROVED MEGA PROJECTS FOR 2015 - 2020 25 - 27 September 2016 Kuwait International Fair www.big5kuwait.com FOR STAND OR SPONSORSHIP ENQUIRIES +9714 438 0355 | info@big5kuwait.com | www.big5kuwait.com SECURE NEW CONTRACTS OVER 500 GENERATE NEW LEADS 20% LARGER ACROSS ALL PARTICIPANTS GROW YOUR BUSINESS US$118 BN GOVERNMENT INVESTMENT IN NATIONAL DEVELOPMENT PLAN ACCESS THE LOCAL MARKET 43% MORE INTERNATIONAL EXHIBITORS DID IN 2015 WHY EXHIBIT?

Page 79

july 2016 Entrepreneur 79 Jordan-based liwwa and Saudi Arabia-based NOMADD on their latest successful raises By Pamella de Leon and Sindhu Hariharan “We got funded!” start it up ecosystem | who’s got VC | Q&A | STARTUP FINANCE TIPS FOR MENA STARTUPS WHEN PITCHING TO INVESTORS Ahmed Moor, CEO and co-founder, liwwa “Our breakthrough on fundraising always seems to be when the lead investor gets excited. We spent a year-and-a-half fundraising in Jordan before Omar J. Sati at DASH Ventures got really engaged on what we were building. Simi- larly, Hagop Taminian [Investment Principal at Silicon Badia] took an early interest in the company and constantly stayed in touch. Both Omar and Hagop share financial services backgrounds. In each case we were able to engage the guys on something they were equally passionate about. There are VCs who get excited about the online game space, and other people who love logistics management- it’s important to know what motivates the people you’re talking to, if only so you know whether you’re speak- ing with the right people. Beyond that if you can find that common ground it may act as a catalyst for more serious conversations. It’s worth highlighting the fact that execution is all that matters at the end of the day. And you want your investors to see exactly how they can help you execute.” THE PROCESS On the short span of time between liwwa’s seed round and latest round, Moor credits it to the startup’s performance. “We underwrote $1.8 million across 81 small businesses in our first year of operations. We also closed a big part of the gap on rolling out our proprietary technology around credit assessments.” As for when they felt it was neces- sary to seek funding again, Moor says they’re always in touch with investors, and says they were “lucky” that Silicon Badia approached them with a term sheet, with the round establish- ing a better relationship with DASH Ventures as they (and Silicon Badia) join the Board, along with Moor and Atiani. WHAT HAPPENS NEXT Extending their services to the UAE by the fourth quarter of 2016 is on the works, with Moor commenting how they’re “doubling down” on the technol- ogy development side of things. “Building scale into our credit assessment process will allow us to underwrite debt responsibly in markets like Egypt and Morocco, eventually.” liwwa CEO and founder Ahmed Moor liwwa co-founder and CTO Samer Atiani liwwa www.liwwa.com According to a survey by the World Bank and the Union of Arab Banks in 2014, which surveyed more than 130 MENA banks, 63% of small and medium sized busi- nesses don’t have access to finance, with an estimate of a US$210 million to $240 billion market gap in MENA. It’s a gap that makes fintech startups all the more preva- lent, and the kind of oppor- tunity that liwwa founders Ahmed Moor and Samer Atiani saw too. CEO Ahmed Moor’s background consists of structuring bonds in New York, before transitioning to journalism, with stints at Al Jazeera English, The Guardian, and others, and later on enrolling at Harvard University’s Kennedy School of Government to complete a Master’s in Public Policy degree. CTO Samer Atiani’s experience consisted of leading software engineers at Wireless Generation, a com- pany building and deploying software enabling parents of New York public school students to review their children’s academic records, as well as having worked at Etsy.com as a software developer. In 2013, while at Harvard University’s Innova- tion Lab, the duo co-founded liwwa, a crowdfunding and investing platform to address the gap of small businesses not having access to capital, and therefore don’t have the opportunity to grow. The founders are also motivated by the altruistic notion that by helping SMEs grow, it would improve economic growth and jobs. The peer- to-peer lending startup fo- cuses primarily on providing loans to small businesses, operating almost entirely online and sourcing capital from retail and institutional lenders, rather than deposi- tors. Moor says liwwa has two revenue streams: “First, we collect 2% of every pay- ment that a borrower makes into our network. We also lend our own money to bor- rowers.” The startup began operations in Jordan in March 2015, with an of- fice in Amman and one in New York, and a UAE base planned before the end of 2016- and their efforts have caught the attention of investors. In March 2015, liwwa raised $500,000 in a seed round that was led by DASH Ventures, with Bank al Etihad and MENA Venture Investments, and in April 2016, it raised $2.3 million in a Series A round led by Silicon Badia’s Badia Impact Fund, with DASH Ventures and Samih Toukan, Chairman of Jabbar Internet Group, participating in eq- uity financing- thus raising $2.8 million in total. DASH Ventures has helped liwwa close significant deals with local banks, while Silicon Badia’s relationship with finance institutions are already generating results too- indeed, Moor credits that their implementation is catalyzed by investors who know and operate within the local market. On the inves- tors’ side, Dash Ventures Managing Director and co-founder Omar J. Sati saw liwwa’s opportunity in the online lending market and believed in liwwa’s product, team and technology. He says, “liwwa’s innovative and market leading credit assessment technology, their commitment to using data to drive business decisions, strong focus on customer service, and an accomplished and diverse team all signaled towards a company capable of establishing themselves as a regional pioneer for market place lending.” >>>

Page 80

BUSINESS EFFICACY IN REAL-TIME

Page 81

july 2016 Entrepreneur 81 start it up THE INVESTOR VIEWPOINT Nicola Bettio, Manager, KAUST Innovation Fund Sectors that KAUST con- siders exciting investment opportunities “We believe that most of the clean tech sector will represent a great opportunity in the Kingdom and in the region. In the GCC, we expect a massive roll out of solar installations, driven by the decreasing capex and opex [operating expenses] of photovoltaics and the per- fect environmental conditions of the region. The increas- ing demand of water is also generating a strong need for innovation in water desalina- tion efficiency, membrane tech- nologies, water/solar hybrid processes, and waste water treatment and recovery.” Views on the MENA ecosystem “We are convinced that the MENA startup ecosystem is still in its infancy. Most of the regional startups are focused today in replicating and ‘localizing’ Western business models. These are certainly good businesses and interest- ing VC investment opportuni- ties, but we do not believe that they will continue to represent the core of the ecosystem in the coming years. On the other hand, the need for sustainable energy and water, coupled with the presence of large regional players in these sectors, will fuel the next generation of high-tech GCC startups.” KAUST has been hosting NOMADD in their Research Park since the startup’s inception, funded its prototype, and has trained and coached the team through KAUST Entrepreneurship Center. With 15 companies/projects currently in its portfolio, KAUST Innovation Fund is focused on nurturing and growing an innovation community in the Saudi ecosystem. Delegates from the Jeddah Smart Grid Convention visit the NOMADD test site NOMADD Solar panel cleaner ecosystem | who’s got VC | Q&A | STARTUP FINANCE IMAGES COURTESY NOMADD NOMADD www.nomaddesertsolar.com A recent report by the Inter- national Renewable Energy Agency reveals that solar power is set to transform global electricity generation systems, with the share of electricity generated from solar panels estimated to reach almost 13% by 2030, from 2% in 2016. On the threshold of such an exciting era for sun power, a Saudi Arabia-based startup looks to unlock the complete po- tential of solar power in the region, with its solar panel cleaning solution. NOMADD Desert Solar So- lutions has built NOMADD: NO-water Mechanical Auto- mated Dusting Device, a pat- ent-pending, fully-automated mechanical system that cleans dust from the surface of solar panels without caus- ing damages and without use of water. As per NOMADD’s website, the company is “a local solution, designed to suit local conditions, to solve a local problem,” and wishes to put an end to the manual cleaning of solar panels by human labor, post regular occurrences such as sand storms. Developed at King Abdullah University of Science and Technology (KAUST) by founder and CTO Georg Eitelhuber and his team, NOMADD obtained its seed funding from KAUST, and has also been supported by KAUST’s legal teams for its IP protection, and now more recently in June 2016, the startup closed Series A funding of US$1 million from KAUST Innovation Fund. In a statement on the fund raising, Jos van der Hyden, CEO, NOMADD, says, “NO- MADD’s dust mitigation technology will help make solar energy viable in the GCC region, one of the major global markets for solar ener- gy in the coming decades. We are grateful for the vote of confidence that this funding represents and look forward to further commercializa- tion.” NOMADD aims to utilize the funds to “establish a strong footprint in Saudi Arabia, hire key staff and car- ry out testing activities with potential customers.” Speak- ing about the experience of funding NOMADD’s Series A as a sole investor, Nicola Bettio, manager, KAUST In- novation Fund, says that the finalization of the term sheet was a relatively long process, given that it was the fund’s first early-stage investment (the fund only undertakes seed stage investment), and because NOMADD didn’t have prior experience in dealing with investors. However, once the term sheet was signed, the drafting and actual execution of the deal was said to have happened in a few hours. But the relationship between the two entities goes beyond that of an investor-investee. KAUST has been hosting NOMADD in their Research Park since the startup’s inception, funded its prototype, and has trained and coached the team through KAUST Entrepreneurship Center. With 15 companies/projects currently in its portfolio, KAUST Innovation Fund is focused on nurturing and growing an innovation community in the Saudi ecosystem. The fund claims to have also recently closed another Series A investment in FalconViz, a company capturing high-resolution 3D images through use of drones. Regarding the fund’s investment criteria, Bettio says they are interested in companies that are either spinouts of the University, or other startups relevant to Saudi’s industrial ecosys- tem. “We are interested in technology-based companies in the oil and gas, renewable energy, water treatment and desalination, new materials and petrochemicals, biotech and ICT sectors,” he says.

Page 82

Entrepreneur july 2016 82 Marcus Smith is an entrepreneur, motivational speaker and international athlete. With a clear vision of building brands that improve people’s lives through health, culture and environment, he has developed and established three successful businesses, including international performance company, InnerFight, Paleo food provider, Smith St Paleo, and culture and environment marketing agency, Dominate. Starting from scratch Do you know why you’re doing what you’re doing? By Marcus Smith The Simon Sinek TED Talk video youtube.com business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS CULTURE T he stern truth about entrepre- neurship is that not eve- ryone is going to be blessed with a truck- load of cash to get their childhood dream of inventing something, and then getting rich off that in the market- place. Some don’t have the cash, some don’t have the invention, some don’t know what the marketplace looks like as yet, and others are suffering from all three. But hey, that is part of the fun, right? The excitement of starting from scratch, the butterflies in your stomach like your first day at high school- that really is one of the first buzzes of being an entrepreneur. Being a successful entrepre- neur is similar in many ways to being a successful cor- poration, or (if I was to tap into my sports background) a professional sportsperson- so many of the character- istics are just the same. Of course, what is cool about entrepreneurship is that it’s about you; however, for it to be about you, and for it to be successful, the first thing you are going to have to think about is this: who are you, and why are you here? Did that question freak you out? Too deep, too early? Relax, grab a cup of coffee and open your mind for a few hours, as this stage is vital, and to be honest, it is one that so many people do not give enough time and respect to at the start. The result of not doing this early is that during the tougher times (and, oh yes, they will come) people find them- selves having to do this same exercise, and often realizing it may have been done too late. Remember you have the time now; you are starting from scratch, so let’s start properly. This exercise is actually two-pronged. If you cannot answer that question on a personal level, then that is the place to start. Once you have that tapped away, then ask the same question for your business idea. Now, this may not be quite so straight- forward, since we normally set out by telling people what we do, but as anyone who has watched the famous Simon Sinek TED Talk (if you haven’t watched it yet, then do so right away) will know, figuring out why we do what we do should always come first. I have seen a ton of people set out with what they thought was a flawless busi- ness idea and fail sooner rather than later, as this key foundation was not in place. The truth be told, some of their ideas were more than sound, and should have essentially “made it,” but didn’t, because they never established who they were, and why they existed both as a person and a business. One of the major things that has to reign through you and your business from day one is passion. If you’re sit- ting there thinking about the who and the why for yourself or your business, and you are not filled with passion, and in turn, drive, then you need to ask yourself why. If you have nothing, not even passion, for what you do, then things are going to be infinitely harder. On the flip side, passion brings energy beyond reason, and people really feel it, people will feel it in you, and when they feel it in you, then they will start to feel it in your business idea or con- cept as well. And that is it. Don’t worry about all the things that may come later, as you cannot quite wrap your head around them yet. They will sort themselves out- for now, just focus on answering those initial ques- tions for yourself. And once you do that, well, for want of a better cliché, remember that once you have the right foundations in place, you can build those dreams as high as you like.

Page 83

Page 84

At HSBC, our unique global network in over 60 countries, where 90% of the world’s trade and capital flows originate, provides you with immediate access to a world of opportunities wherever your international business takes you. So when entering a new market, you will not do so alone, our in-depth knowledge of your business will go with you. Our local experts on-the-ground will help you set up working relationships with new partners quickly, easily and confidently. Smoother global expansion. One of the benefits of partnering with a bank that has both the expertise and in-depth understanding of your business, to support your ambitions globally. Find out more at www.business.hsbc.ae/network Issued by HSBC Bank Middle East Limited U.A.E Branch, P.O.Box 66, Dubai, U.A.E, regulated by the Central Bank of the U.A.E for the purposes of this promotion and lead regulated by the Dubai Financial Services Authority. CRN 160471. © Copyright HSBC Bank Middle East Limited 2016 ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Bank Middle East Limited. OPENING THE DOOR TO A WORLD OF OPPORTUNITIES.