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SaleS police

identifying export marketS

golf and other urban mythS

commercial mortgage

Working capital

Labour pains– and gainsWe cover the changing face of labour laWs, employment trends in the region, and the prospects for Working mothers.PU

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SME Advisor M_Name 270x207mm-E.indd 1 11/3/10 6:19 PM

dubai internet city democamp on april 27, 2011 is a must-attend for you.

28 eVentS SnapShot: We take a look at the most recent Sme events organised across the region.

Employment trends 30 labour relationS: the beginning of 2011

has seen a number of new cabinet and ministerial resolutions hitting the headlines. rebecca ford of al tamimi & company provides an overview of the changes which have been introduced.

33 Women in the Workplace: research from workspace solutions provider regus reveals that 2011 will see employment downturn for working mums as old prejudices reawaken.

34 caSh flaSh: private sector salaries in the uae are forecast to increase at an average rate of 6.3 percent this year, according to research released by gulftalent.com.

How to buy36 commercial mortgageS: independent

financial advisor greg pogonowski lists the things to keep in mind when looking at commercial mortgages in the united arab emirates.

38 feng Shui: how often have you walked

into an office and loved its buzz? Shakila khan, client Services manager (trainee feng Shui consultant), bbr design, advises how to channel the energy at your workplace through feng Shui.

40 Workplace deSign: beanbags in the boardroom or classic corporate charm? it’s good to see things from an interior designer’s perspective. elaine monfero-gan, design director, bbr design, shares her experiences while working on corporate spaces.

A day in the life 42 Vincent maldant: architect designer,

Vincent maldant, managing partner, Studio7 interiors decorations, takes us through a typical day in his life.

Editorial board6 think tank: the Sme advisor editorial

board is an honorary panel of experts, comprising organisations and individuals who play a major role in shaping the regional economy.

Shoptalk10 trendS and updateS: a quick look at

news and events that will impact Smes in this region.

16 Shelf life: new toys and products for

you and your business. like you need an excuse!

Banking on business18 Working capital: nilanjan ray, Sr. Vice

president head, Sme banking at adcb explains how many businesses commit the fatal mistake of ignoring the vital working capital element and outlines the finance options available to help boost business.

SME Advisor Success Series 24 buSineSS netWorking eVent: Sme

advisor and adcb decided to kick start the 2011 Sme Success Series with a networking event by the beach. We bring you exclusive coverage.

SME about town26 Sme connectS: realhr, specialists

in recruitment and consultancy, in conjunction with entourage marketing and events, launched Sme connects. partnering the event, we bring you the highlights.

27 demo camp: are you an entrepreneur or an it enthusiast with a great idea. then, the

ContEntS

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ISSUE: 64 MARCH 2011

Sales44 SaleS police: intersec 2011, presented

the perfect venue to observe a few stellar companies. Jennifer baxavanis, founder and managing partner, bax consulting collects evidence and submits a post-mortem report.

46 beSt practiceS: how can a small business develop and run a world class sales organisation? John lincoln, Vice-president enterprise marketing, du, explains how to drive sales performance, regardless of budget or business size.

Marketing49 online communitieS: tecom’s thought

incubator Series was launched in January. cpi’s very own magnus nystedt, group editor of consumer technology, provides us with an overview of the core issues discussed.

trade50 export marketS: once Smes have decided

to export, their major problem is to identify an appropriate foreign market for their goods or services, says dr. ashraf mahate, head of export market intelligence at dubai exports, and Vice chair of the economic policy committee, dubai economic department.

Management54 maximiSing freedom: most small business

operators aren’t bound to centralised head-office regulations. but are you really maximising that freedom to achieve business goals, asks debbie nicol, principal consultant and owner of business en motion.

Corporate sport56 golf: arnaud palu, chief operating officer of

majid al futtaim (maf) leisure, talks about golf, urban myths and generally answering the call of nature.

57 herculeS trophy 2011: team cpi participated in the hercules trophy uae this year. Sme advisor tweeted live from the battleground. We’ll let our tweets speak for themselves.

58 Sign off: this month, guillaume mariole from

ignite fitness & wellness discuss team building through corporate sport.

Now don’t get me wrong here, I have enough causes

to support to last a few lifetimes, so I respect people who feel passionately about the need for change. I may or may not agree with their cause, but I admire their courage to buck the trend. It’s the armchair activists who irritate me. People who sit passing judgement and spewing the same old rhetoric instead of doing something constructive if it bothers them so much. The keyword here is “constructive”.

The rock band Cinderella got it bang on:

Turned on my radio to the same old song

Some big mouth talking trying to tell us where the world went wrong

EdItoRIAl

Ketaki Banga, Senior Editor

Talk to us:twitter: @SMEadvisorMEfacebook: www.facebook.com/SMEAdvisorlinkedin group: SME Advisor

the more things change, the more they stay the same?

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magazine, they will not be held responsible for any errors therein.

Turned on the TV to the same old news

Everybody thinks they got the answer to the same old blues

So when the buzz about town shifted to labour law reforms, it was inevitable that a new moan fest would commence about how futile change is. Sure, when you look at some of the violations the Ministerial Resolution No. 1187 of 2010 on Regulations and Criteria of Classifications of Establishments, seeks to address, you know you’ve read or heard about instances where companies do just that. These violations include: • Deliberately providing incorrect information in respect of the wages protection system (WPS), for the purpose of evading or manipulating the regulations relating to the WPS; • Closing, suspending or failing to practice commercial activities without settling the dues of employees;• Failing to pay an employee for 60 days or more; • Having employees who sign documents which falsely indicate that they have received their labour entitlements; • Providing accommodation to workers which fails to comply with standards contained in applicable regulations; and more

As our columnist Rebecca Ford from Al Tamimi & Company aptly puts it: “The simultaneous issuance of such wide ranging resolutions that affect labour relations in the UAE is certainly unprecedented...the actual effect of all these changes will

certainly take time to assess. Whether or not these changes are a signal of a pending change, or merely designed to be effected in place of the UAE Labour Law, remains to be seen.”

There are still grey areas, including for Emirati employees. So, do these reforms include everything to make everyone happy? Maybe not. If implemented, will they make some things easier? Definitely. And one of the things that can help take these changes from mere paper to practice is education – educating employers and employees. If no one else takes the trouble to de-jargonise these laws, then take the initiative yourself. Find out how it applies to you, your business, your rights as an employee.

It’s like with the consumer protection law. You see posters in stores urging you to “know your consumer rights” but, when push comes to shove, often the person selling to you has no idea what your rights are and, so, is happy trampling upon them, because you don’t know any better either.

I’m not naive enough to say everything is perfect and possible, and all obstacles surmountable, but the first step to changing things is to work with what you’ve got.

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tHInk tAnk

Ashish Panjabi COO, Jacky’s Group of Companies

Deepak J. BabaniCEO, Eros Group

Dr. Habib Al Mulla Founder and Executive Chairman of Habib Al Mulla & Co; member of the Board of Trustees, Dubai School of Government

Mishal Hamed KanooDeputy Chairman, The Kanoo Group

Rajesh Chandy Academic Director, London Business School’s

Institute for Innovation and Entrepreneurship; Professor of Marketing; and Tony and Maureen

Wheeler Chair in Entrepreneurship

Ronald Howes Regional Managing Director GCC, Memac Ogilvy

Dr. Ashraf Ali Mahate Head of Export Market Intelligence, Dubai

Export Development Corporation

John Lincoln Vice President - Enterprise

Marketing, du

Dr. Zeinab Karake-ShalhoubFormer Director of Research, DIFC

Advet BhambhaniCEO, Jebel Ali Hospital and Lifeline Healthcare

PAnEllIStS <<<

the Sme advisor editorial board is an honorary advisory panel of experts, comprising organisations and individuals who want to help regional business. the idea is to evolve the magazine through such sharing of ideas with key regional influencers.

SME ADVISOREDITORIAL BOARD

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Dmitry Dmitriev Vice-President Corporate Relations and

Communications, AIESEC International Association

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For detailed profiles, visit: www.smeadvisor.com

Amanda LineRegional Director, The Institute of Chartered Accountans in England and Wales Middle East (ICAEW)

Arnauld PaluChief Operating Officer, Majid Al Futtaim (MAF) Leisure

6 SME ADVISOR MIDDLE EAST march 2011

SME Advisor 270x414-E.indd 1 3/3/11 12:00 PM

tREndS & UPdAtES <<<

SHoPtAlk

the innovative public-private partnership model formed in october

2010, along with increasing investor confidence has seen more than 40 new entities being established in dubai to date, said khalid al boom, executive director, investment Support and promotions, foreign investment office.

A.T.Kearney recently ranked Dubai among the top 25 global destinations, which attracts 75% of global FDI flows. With easy access to 1.7 billion consumers in the Middle East and North Africa (MENA) region and South Asia, Dubai has become the regional hub for global enterprises

Strong partnerships drive FdI inflow to dubaiThe Foreign Investment Office (FDI Dubai), the investment promotion agency of the Dubai Department of Economic Development (DED), has reported positive outcomes from its association with The Links Group (TLG), company formation specialists in the GCC.

prevailing business environment and growth prospects in dubai with 28% of the executives surveyed choosing dubai as their top investment destination for the next three years and 81% of existing investors revealing that they planned to maintain or grow their investments over the same period.

citing dubai’s economic fundamentals, strategic location and reach to fast-growing markets the investors also said the emirate is a catalyst for the region and the first in line to exit the global economic downturn. With easy access to 1.7 billion consumers in the middle east and north africa (mena) region and South asia, dubai has become the regional hub for global enterprises, they said.

Stuart curtis, managing director of the links group, emphasised the importance of specialised knowledge and cross-market expertise in helping investors optimise their opportunities in dubai.

“Smes and multinational companies need to recognise that to provide products and services onshore in dubai they have to be appropriately licensed. the business benefits are clear and companies want to do business with other companies that are registered with the department of economic development department and the chamber of commerce in dubai in a manner that is mutually beneficial and devoid of any risks,” said curtis.

the links group provides consultative services to prospective companies on the benefits of setting up in dubai, which include, but are not limited to, financing, Sme support, quality networking and introductions with a best-in-class support infrastructure. Specific feedback from the links group also enables the foreign investment office to move as fast as possible on applications from companies.

the links group, established in dubai in 2002, works to enable companies to complete all legal and commercial processes required to set up a business in the uae. both offices collaborate to identify companies and businesses looking to set up in dubai and work with them through the transition process.

“by offering a streamlined fast-track route to the market, the links

group and the foreign investment office are gaining traction and driving companies onshore in the emirate of dubai. the partnership has also contributed to the growth of positive investor sentiment and consequently brought more foreign direct investment (fdi) into dubai”.

“our partnership with the private sector is in line with our role in assisting the government to bring foreign investment into dubai and shows ded’s confidence in the private sector and its competitiveness” added al boom.

a.t.kearney recently ranked dubai among the top 25 global destinations, which attracts 75% of global fdi flows. the report also showed a strong confidence in the

Khalid Al Boom, Executive Director, Investment Support and Promotions, Foreign Investment Office


>>>tREndS & UPdAtES

SHoPtAlk

cisco announced today that dubai chamber of commerce and

industry has recently become a cisco entrepreneur institute. the dubai chamber will deliver entrepreneur institute workshops to small and medium enterprise business owners and entrepreneurs, as well as to members of the non-profit and government sectors in dubai, interested in starting, growing and tech-enabling their businesses.

through the entrepreneur institute, cisco, in collaboration with the dubai chamber and with knowledge horizon, the entrepreneur institute training centre for uae, will

The Dubai Chamber promotes best practices and supports its members in becoming competitive locally, regionally and internationally. The majority of Dubai Chamber members are small and medium enterprises.

Dubai Chamber will deliver Entrepreneur Institute workshops to Dubai Chamber members and non-members from the private sector and individuals, who would like to gain more knowledge and skills on how to grow their business successfully, and improve in the ICT and management skills.

Entrepreneur Institute core workshops will highlight starting a business, growing a business and iExec enterprise essentials will be offered by the Dubai Chamber. The first workshops started in February 2011.

Through the use of Cisco WebEx, Dubai Chamber will deliver workshops virtually, thereby providing a unique online training opportunity to entrepreneurs interested in starting and growing their businesses in Dubai, regardless of their location.

The Dubai Chamber will be a local Entrepreneur Institute of the Knowledge Horizon Entrepreneur Institute Training Centre.

Dubai Chamber’s Business Support Department will manage the Entrepreneur Institute at the Chamber. The Department was created by the Chamber in 2008 to foster the growth and sustainability of UAE-based businesses.

“Now through this new service, the Chamber will be offering practical online training workshops that will aid the business community in starting and growing a business, and improving in ICT skills and management which will further help promote growth and competitiveness in the business community.”

- Dr Belaid Rettab, Senior Director, Economic Research and Sustainable Business Development Sector, Dubai Chamber

Collaboration to extend entrepreneurial training

key Facts

director, economic research and Sustainable business development Sector, dubai chamber.

dr. maen al Qatamin, president, knowledge horizon said: “We are very pleased that the dubai chamber of commerce and industry has become a cisco entrepreneur local institute. this reflects the genuine commitment of the chamber to developing and nurturing entrepreneurship as well as the Sme sector in the emirate of dubai. the association between knowledge horizon, dubai chamber and the cisco entrepreneur institute will usher in a new era for a concerted effort aimed at promoting and fostering entrepreneurship to enable it to become as a key driver of economic development in the emirate.”

for more information visit: www.ciscoinstitute.com or www.dubaichamber.com

continue to build and foster entrepreneurship in dubai and throughout the region.

karim djerboa, Senior manager, global field operations and Strategic alliances, cisco entrepreneur institute, said: “cisco looks forward to collaborating with the dubai chamber of commerce and industry to enhance and grow the entrepreneurial ecosystem in dubai and throughout the region. as an entrepreneur institute, the dubai chamber will draw upon their network and reach to extend resources and training to individual entrepreneurs, and to the businesses, non-profit and government sectors, both through in person and virtual on-line workshops.”

“as part of its strategic objectives of creating a favourable business environment and supporting the development of business, dubai chamber has been providing regular educational seminars, business decision-making and credit rating tools, as well as demand-driven advisory services to all its members and stakeholders.

now through this new service, the chamber will be offering practical online training workshops that will aid the business community in starting and growing a business, and improving in ict skills and management which will further help promote growth and competitiveness in the business community,” said dr belaid rettab, Senior

march 2011 SME ADVISOR MIDDLE EAST 11

SHoPtAlk

dubai trade, the innovative online service provider of dubai World, has

announced that over 11.4 million transactions were conducted through its portal www.dubaitrade.ae in 2010, a remarkable 25.7% increase compared to the transactions recorded in 2009.

the record breaking number of transactions was reached as dubai trade has consistently updated and expanded its portfolio of integrated innovative services to serve the growing clientele of dp World, economic Zones World, dubai customs and dubai multi commodities centre (dmcc). at present, dubai offers its customers 758 services, 12% more than the services offered in 2009.

Jamal majid bin thaniah, group ceo dubai World and chairman of dubai trade, said: “the year 2010 ended on a very positive note with the World bank’s annual Doing Business report ranking the uae as the third best country in the world for enabling trading across borders, and as a leading and proactive trade facilitator, dubai trade has contributed immensely to this achievement.

dubai trade has been able to establish a successful e-market place that offers a progressive

dubai trade online portal records major growthInnovation, customer-centric strategy yields 27% increase in registered users and 25.7% in total online transactions

efficient processing. Since its launch in 2008, roSoom has recorded 293,000 transactions with a total online collection of aed 371 million.

there are over 35,000 registered companies using the electronic trade portal. last year, 18,175 new registered users joined the portal taking the total number of users to 66,775.

the rapid growth of registered users in the past few years is testament to the popularity of the electronic trading platform and indicative of the evolution of local commerce. With the advent of internet technology, business has escalated to newer heights bridging and enabling more efficient transactions between buyers, sellers, exporters and importers. dubai trade’s services have eased procedures, reduced processing time and vastly improved efficiency and transparency.

mahmood al bastaki, director of dubai trade, said: “e-commerce has been identified by our government as key to trade facilitation and dubai trade has emerged as an integral economic pillar in that sector. our services have helped enhance supply chain visibility, quality of service and

In 2010, Dubai Trade provided free training to more than 2230 individuals on various services offered on its portal including Mirsal II, e-token, ROSOOM, and several free zone administrative services.

tREndS & UPdAtES <<<

range of capabilities and services, and provides users with an open, convenient, reliable, easily accessible environment. the adoption of such innovative technology is vital to bring about business transformation on a large scale. We are determined to stay ahead of the curve and not just contribute to the growing economy, but also to keep delivering the greatest value to the industries and customers we cater to,” he said.

roSoom, dubai trade’s innovative e-payment gateway continues to be one of the company’s most popular electronic platforms, allowing multiple payment options through the portal, leading to faster and more

improve global competitiveness of dubai. the number of registered users has been steadily rising and we hope to continue with the same momentum in the year ahead.”

in 2010, dubai trade provided free training to more than 2230 individuals on various services offered on its portal including mirsal ii, e-token, roSoom, and several free zone administrative services.

moreover, the company offers the certified trade & logistics professional (ctlp) programme, a certification course initiated and developed by dubai trade and accredited by the chartered institute of logistics & transport (cilt). the ctlp is the region’s first comprehensive vocational training program that covers the end to end process of import and export in the uae and the region.

as part of its commitment to encourage adoption of electronic services and its usage in order to enhance trade flow efficiency, dubai trade launched the dubai trade e-Services excellence award (eSea) in 2008 and continued to reward its best performing customers in 2009 by awarding the most active companies in using the roSoom online payment gateway.

His Excellency Jamal Majid bin Thaniah, Group CEO Dubai World and Chairman of Dubai Trade


now in its third year, arab outsourcing conference 2011 features Vested

outsourcing, a new methodology developed by kate Vitasek in conjunction with the university of tennessee and funded by uS air force, by which companies that are outsource and service providers can work together more

the value chain for our top customers.

“hp financial Services helps customers significantly reduce the cost of ownership throughout the it lifecycle – from planning and acquiring technology, all the way to retiring and replacing it.”

it will make it easy and economical for customers to deploy world-class technology on terms tailored to their unique needs. not only that, we can help our valued customers manage the risk of dealing with obsolete or unneeded it equipment,” he said.

the advantages of these services are that leasing provides clients with flexibility and makes it easy for them to migrate to newer generations of technology. there’s typically no substantial upfront payment, so clients preserve working capital and can allocate it to other projects.

hp financial Services manages the entire life cycle process and can provide technology refreshes at appropriate intervals during the lease. the company also offers sale-leaseback capabilities.

for more information on these new services visit www.hp.com

HP launches financial servicesin dIFC

third Annual Arab outsourcingConference 2011

Office will offer leasing and asset management services to HP’s customers

hp middle east announced in february that it will be

extending its services to hp valued customers with the launch of hp financial Services in the dubai international financial centre (difc).

hp financial Services is the leasing and lifecycle asset management services subsidiary of the hewlett-packard company, offering a full range of financial services solutions.

eyad Shihabi, managing director and enterprise business lead for the middle east for hp, said: “With the launch of financial services capabilities we are adding a new, and significant, link in

effectively. Vested outsourcing is a fundamental business model paradigm shift in the ways in which outsource and service providers do business.

this unique event is designed to bring the international best practices for those organisations in the middle east who are currently engaged in or looking at outsourcing as a strategy.

Agenda• Attending a Pre-Conference Master Class (May 8th 2011) on “outcome based outsourcing” and keynote presentation by kate Vitasek, the author of the book on Vested outsourcing.• Attending the main conference (May 9th -10th, 2011), featuring regional case studies presented by those early adopters in outsourcing, which are also supported by interactive panel discussions.• Attending a post-conference master class (May 11th, 2011) titled Contracting & Governance - Laying Foundations for Outsourcing Success and which will look at the implementation aspects in detail.

Key topics which will be covered:• Outsourcing engagement models• Outsourcing relationships• Core/non-core functions - What to outsource?• Vendor selection• Transitioning• Contract governance• SLA management• Risk management

for more details of the event, contact: [email protected] or visit www.arab-outsourcing.com

Eyad Shihabi, Managing Director and Enterprise Business Lead for the Middle East for HP

>>>tREndS & UPdAtES

SHoPtAlk

ShelflifeNew toys for you and your business.

like you need an excuse!

Cool RIdER

HtC FlyIng HIgH

bond is back and this time he is sporting a brand new car. in the pages of carte blanche, the

new book by Jeffery deaver, the fictional british spy has continued with his preferred brand of luxury sports car by selecting the breathtaking new bentley continental gt as his transport of choice.

the book is half-set in dubai, which is where the author and the new bond car have been spotted, outside the intercontinental hotel in dubai festival city. bond’s new continental gt certainly suits his character, with a fabled 6.0-litre, W12, twin-turbo engine capable of producing 567 bhp and 516 lb-ft of torque.

Set in stunning white with a blood-red interior, the new continental gt mixes svelte good looks with power, poise and exceptional prowess. the hand-stitched leather interior contains all the hi-tech gadgetry bond could ever need and the cabin provides a true Quantum of Solace for fleming’s jet-setting gentleman spy.

htc has released its first tablet, the htc flyer. this new tablet blends htc’s trademark design language with an all-new htc sense user experience that has been re-imagined for the tablets.

using an intuitive and innovative approach it combines natural touch and pen interaction. htc also announced htc Watch, a new connected video service that will debut on htc flyer tablet, and will collaborate with onlive, inc. to launch the first cloud-based mobile gaming service on a tablet.

encased in a sleek aluminium unibody, it is also ultra-light, weighing as little as a paperback book, and compact enough to fit in a jacket pocket only. With a seven-inch display, a very fast 1.5ghz processor and high-speed hSpa and wireless capabilities,

CARtE BlAnCHE BEntlEy

lIgHtS, CAMERA, ACtIon!

the htc flyer tablet is perfect for those who have been waiting for a tablet that is both compact and powerful. it also offers uncompromised Web browsing with flash 10 and html 5 and a 3d home screen.

htc scribe technology introduces a wave of integrated digital ink innovations that make it easy and natural to take notes, sign contracts, draw pictures, or even write on a web page or photo.

htc flyer will be available to customers globally during Q2 2011.

harley davidson of uae recently showcased its 2011 motorcycles at the gulf bike Week, which was held from 10 - 12 february at dubai festival city.

known for producing bold, tenacious bikes, harley davidson of uae maintains its tradition with its 2011 line-up consisting of the VrScf v-rod muscle, xl883n iron 883, forty eight Sportster and flhxxx Street glide trike.

power and aggression are two attributes highlighted in the 2011 harley-davidson VrScf V-rod muscle. the 1250cc liquid cooled, revolution v-twin engine delivers a staggering 86 pounds of force per foot of torque, reached at 6,500 rpm.

a true sports model bike is found in the 2011 harley-davidson xl883n iron 883. Styled to mimic the garage customs of the 1950s, the 883cc air-cooled evolution engine has been powder coated in black to protect the fearless image. designed for racing, the bike features a chopped rear fender and solo seat, with black low-rise drag-style handlebars.

epson has announced the middle east launch of the eb-S9, eb-x9 and eb-W9 – a range of affordable projectors that enable businesses and schools to stay within budget without compromising on presentation quality. all three projectors deliver an outstanding picture thanks to epson’s 3lcd technology. a range of smart features make them easy to set up and use, helping to safe on time.

the Wxga eb-W9 model displays everything that is on a widescreen pc without needing any adjustments.

powered by epson’s 3lcd technology, the projectors boast a colour light output (clo) that is equally as high as the white light output, which means presentations are brought to life with vivid yet natural colours. the high brightness of 2,500 lumens enables lights to be left on so viewers can make notes.

a single uSb cable combines both display and mouse control for pc and mac, while

sound is taken care of with the built-in 1W speaker. the monitor-out provides both projector and pc screen visuals so you do not have to turn around to see the screen when presenting.


BAnkIng on BUSInESS

KeeP The BAll ROlliNG

Working capital iS conSidered the life line of any company, alloWing the company to groW,

expand operationS, and Weather financial fluctuationS. nilanJan ray, Sr. Vice preSident head, Sme banking at abu dhabi commercial

bank, explainS hoW many buSineSSeS commit the fatal miStake of ignoring the Vital Working

capital element and outlineS the finance optionS aVailable to help booSt buSineSS.

Working capital is a financial metric which represents operating liquidity available to

a business. Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses.

The term working capital has several meanings in business and economic development finance. In accounting and financial statement analysis, working capital is defined as the firm’s short-term or current assets and current liabilities. Net working capital represents the excess of current assets over current liabilities and is an indicator of the firm’s ability to meet its short-term financial obligations. From a financing perspective, working capital refers to the firm’s investment in two types of assets.

In one instance, working capital means a business’ investment in short-term assets needed to operate over a normal business

cycle. This meaning corresponds to the required investment in cash, accounts receivable, inventory, and other items listed as current assets on the firm’s balance sheet. In this context, working capital financing is about how a firm finances its current assets.

A second broader meaning of working capital is the company’s overall non-fixed asset investments. Businesses often need to finance activities that do not involve assets measured on the balance sheet. Thus, working capital can represent a broader view of a firm’s capital needs that includes both current assets and other non-fixed asset investments related to its operations.

Working capital management refers to the management of current or short-term assets and short-term liabilities. Components of short-term assets include inventories, loans and advances, debtors, investments and cash and bank balances. Short-term liabilities include creditors, trade advances, borrowings and provisions. The major emphasis is, however, on

WORKiNG cAPiTAl <<<


short-term assets, since short-term liabilities arise in the context of short-term assets.

It is important that companies minimise risk by prudent working capital management. This is an important yardstick to measure a company’s operational and financial efficiency. It must form part of the company’s strategic and operational thinking. This will yield greater efficiency and improve customer satisfaction.

Uses and benefitsThe first, and most critical, use of working capital is providing the ongoing investment in short-term assets that a company needs to operate. A business requires a minimum cash balance to meet basic day-to-day expenses and to provide a reserve for unexpected costs. It also needs working capital for prepaid business costs, such as licenses, insurance policies, or security deposits. Furthermore, all businesses invest in some amount of inventory, from a law firm’s stock of office supplies to the large inventories needed by retail and wholesale enterprises.

A second purpose of working capital is addressing seasonal or cyclical financing needs. Here, working capital finance supports the build-up of short-term assets needed to generate revenue, but which come before the receipt of cash. Since most businesses do not receive prepayment for goods and services, they need to finance these purchase, production, sales, and collection costs prior to receiving payment from customers. Another way to view this function of working capital is providing liquidity.

Adequate and appropriate working capital financing ensures that a firm has sufficient cash flow to pay its bills as it awaits the full collection of revenue.

When working capital is not sufficiently or appropriately financed, a firm can run out of cash and face bankruptcy. As a business grows, it needs larger investments in inventory, accounts receivable, personnel, and other items to realise

increased sales. New facilities and equipment are not the only assets required for growth; firms also must finance the working capital needed to support sales growth.

A final use of working capital is to undertake activities to improve business operations and remain competitive, such as product development, ongoing product and process improvements, and cultivating new markets. With firms facing heightened competition, these improvements often need to be integrated into operations on a continuous basis.

Consequently, they are more likely to be incurred as small repeated costs than as large infrequent investments. This is especially true for small firms that cannot afford the cost and risks of large fixed investments in research and development projects or new facilities. Ongoing investments in product and process improvement and market expansion, therefore, often must be addressed through working capital financing.

Sources of working capital There are three potential sources in this instance – equity, cash advances, and bank loans.

Commercial banks are the largest financing source for external business debt, including working capital loans, and they offer a large range of debt products. With banking consolidation, commercial banks are multistate institutions that increasingly focus on lending to small business with large borrowing needs that pose limited risks.

Commercial finance companies are important working capital lenders since, as non-regulated financial institutions, they can make higher risk loans. Some finance companies specialise in serving specific industries, which allows them to better assess risk and creditworthiness, and extend loans that more general lenders would not make.

Another approach used by banks and finance companies is asset-based lending in which a lender carefully evaluates and lends against asset

Extending payment periods and increasing credit limits with major suppliers is a fast and cost-effective way to finance some working capital needs that can be part of a firm’s overall plan to manage seasonal borrowing needs

BAnkIng on BUSInESS


collateral value, placing less emphasis on the firm’s overall balance sheet and financial ratios. An asset-based lending approach can improve loan availability and terms for small firms with good quality assets but weaker overall credit.

Trade credit extended by vendors is a fourth alternative for small firms. While trade credit does not finance permanent or long-term working capital, it helps address short-term borrowing needs. Extending payment periods and increasing credit limits with major suppliers is a fast and cost-effective way to finance some working capital needs that can be part of a firm’s overall plan to manage seasonal borrowing needs. Other working capital finance options exist beyond these three conventional credit sources.

Venture capital firms also finance working capital, especially permanent working capital to support rapid growth. While venture capitalists typically provide equity financing, some also provide debt capital. A growing set of mezzanine funds, often managed by venture capitalists, supply medium-term subordinate debt and take warrants that increase their potential returns. This type of financing is appropriate to finance long-term working capital needs and is a lower-cost alternative to raising equity. However, the availability of venture capital and mezzanine debt is limited to fast-growing firms, often in industries and markets viewed as offering the potential for high returns.

Government initiatives While small in total capital, non-profit and government revolving loan funds help firms’ access conventional bank debt by providing subordinate loans, offering smaller loans, and serving firms that do not qualify for conventional working capital credit.

Dubai SME (formerly known as The Mohammed Bin Rashid Establishment for SME Development) aims to promote new business creation and the expansion of existing small enterprises owned

and operated by UAE nationals in Dubai. They provide training and guidance as well as start-up capital for aspiring business people, thereby closing the finance gap. The SME Establishment is also able to provide funds for expansion of existing small businesses through affiliate banks. The Khalifa Fund provides start-up loans, expansion loans and training for entrepreneurs in Abu Dhabi. In addition, the fund is able to bring together aspiring entrepreneurs and venture capitalists.

Credit fundingMany entrepreneurs and small firms also rely on personal credit sources to finance working capital, especially credit cards and second mortgage loans on the business owner’s home. These sources are easy to come by and involve few transaction costs, but they have certain limits. First, they provide only modest amounts of capital. Second, credit card debt is expensive with interest rates of 18% or higher, which reduces cash flow for other business purposes. Third, personal credit links the business owner’s personal assets to the firm’s success, putting important household assets, such as the owner’s home, at risk.

Finally, credit cards and second mortgage loans are not viable for entrepreneurs who do not own a home or lack a formal credit history. Immigrant or low-income business owners, in particular, are least able to use personal credit to finance a business. Given these many limitations, it is desirable to move entrepreneurs from informal and personal credit sources into formal business working capital loans that are structured to address the credit needs of their firms.

Forms of financeWorking capital financing comes in many forms, each of which has unique terms and offers certain advantages and disadvantages to the borrower. Some of the forms of working capital include:

Overdraft facilities An overdraft is an open-ended loan with a borrowing limit that the business can draw against or repay at any time during the loan period. This arrangement allows a company flexibility to borrow funds when the need arises for the exact amount required. Interest is paid only on the amount borrowed, typically on a monthly basis. A line of credit can be either unsecured, if no specific collateral is pledged for repayment, or secured by specific assets such as accounts receivable or inventory. Accounts receivable financingLoans secured by accounts receivable are a common form of debt used to finance working capital. Under accounts receivable debt, the maximum loan amount is tied to a percentage of the borrower’s accounts receivable. When accounts receivable increase, the allowable loan principal also rises. However, the firm must use customer payments on these receivables to reduce the loan balance.

FactoringFactoring entails the sale of accounts receivable to another firm, called the factor, who then collects payment from the customer. Through factoring, a business can shift the costs of collection and the risk of non-payment to a third party. In a factoring arrangement, a company and the factor work out a credit limit and average collection period for each customer. As the company makes new sales to a customer, it provides an invoice to the factor. The customer pays the factor directly, and the factor then pays the company based on the agreed upon average collection period, less a slight discount that covers the factor’s collection costs and credit risk.

Inventory financingAs with accounts receivable loans, inventory financing is a secured loan, in this case with inventory as collateral. However, this financing is more difficult to secure since

A growing set of mezzanine funds, often managed by venture capitalists, supply medium-term subordinate debt and take warrants that increase their potential returns. This type of financing is appropriate to finance long-term working capital needs and is a lower-cost alternative to raising equity

BAnkIng on BUSInESS


inventory is riskier collateral than accounts receivable. Some inventory becomes obsolete and loses value quickly, and other types of inventory, like partially manufactured goods, have little or no resale value. Firms with an inventory of standardised goods with predictable prices, such as automobiles or appliances, will be more successful at securing inventory financing than businesses with a large amount of work in process or highly seasonal or perishable goods.

Term loanWhile the four prior debt instruments address cyclical working capital needs, term loans can finance medium-term noncyclical working capital. A term loan is a form of medium-term debt in which principal is repaid over several years, typically in three to seven years. Sometimes, a bank will agree to an interest rate cap or fixed rate loan, but it usually charges a fee or higher interest rate for these features. Term loans have a fixed repayment schedule that can take several forms.

The ability to obtain a loan is based on the credit worthiness of a company. The two major factors that determine credit worthiness are the existence and extent of collateral and the liquidity of the business. A company’s balance sheet is used to assess both of these factors.

ChallengesBusinesses’ point of view Working capital financing is a key financing need and challenge for most. Small businesses have less access to long term sources of capital than large businesses, including limited access to equity capital markets and fewer sources of long-term debt. Thus, many small firms are heavily dependent on short-term debt, much of which is tied to working capital. However, limited equity and reliance on short-term debt increases the demand on a firm’s cash flow, reduces liquidity, and increases financial leverage – all of which heighten the financial risks of extending credit.

Consequently, small firms may have trouble raising short-term debt while at the same time facing obstacles to securing the longer-term debt necessary to improve their financial position and liquidity, and lessen their credit risk.

Development finance has an important role in addressing this problem, either by offering working capital loans when private loans are not available or by providing debt terms that reduce a firm’s financial risk and help it access private working capital financing. In particular, practitioners can help businesses finance permanent working capital to reduce their short-term financial pressures.

Businesses face some difficulties in accessing finance during the start-up phase from financial institutions. In most developed markets, it is possible to get viability based financing, where an aspiring entrepreneur applies for a loan on the basis of a business plan.

Banks and financing institutions point of view In some markets the perceived risk has two sources. The first is the difficulty in assessing the credit quality of businesses in some markets – often these market structures have incomplete and unreliable financial statements. For this reason banks prefer lending to companies that have existed for some time. Bankers expressed some concern over the recovery mechanism to seize the assets of defaulters. The legal framework for this is in place, but results and speed of the process can sometimes lack consistency.

Apart from the above, there is a fundamental information gap which always exists between lenders and borrowers. The borrower knows in detail their own credit record and intentions, while the bank can only guess at either. This asymmetry cuts both ways, on the one hand, borrowers with poor credit records can evade them and may still be able to borrow because their payment history is unavailable to the bank in totality.

The way forwardAs access to finance is a product of both supply and demand side constraints, what is required is a comprehensive framework. Solutions to resolve financing constraints must be addressed in conjunction with supportive development polices for improving market access, industrial linkages, information facilities, harnessing technology and enhancing knowledge and skills for SMEs. Often, one of the key factors of success of countries with a successful SME sector is the presence of a comprehensive, well-coordinated framework and pervasive support mechanisms for SME development.

The outlook Despite the economic slowdown and constraints, lenders remain cautiously optimistic for the continued growth of SME lending and availability of working capital. Most banks expressed that they were optimistic about growth and some have reported growth rates in SME lending of between 20 - 30%. This is higher than the GDP growth rate, indicating that the market is not yet saturated and there may be room for growth in SME lending even as economic growth has slowed down.

Despite the economic slowdown and constraints, lenders remain cautiously optimistic for the continued growth of SME lending and availability of working capital. Most banks expressed that they were optimistic about growth and some have reported growth rates in SME lending of between 20 - 30%

ABOUT:

Nilanjan Ray currently heads the SME business at Abu Dhabi Commercial Bank (ADCB). ADCB is the second largest bank in Abu Dhabi promoted by government owned entities. Prior to joining ADCB in October 2007, Nilanjan had worked in ICICI Bank, Bahrain, as Vice President - Corporate & Commercial Banking.

Prior to his assignments in GCC, Nilanjan was heading Asset Products & Credit for ICICI bank, Business Banking (SME) in India. He has also worked in HDFC Bank & IDBI Bank in India in various senior roles in SME Banking, Cash Management & Fixed Income Sales.

He was part of the start-up teams in SME Banking in ICICI Bank & HDFC Bank. He started his career with Agriculture Finance Corporation, Mumbai, in Project Evaluation & Monitoring.

Nilanjan holds a post graduate business degree and a graduate degree in Economics.

Nilanjan Ray, Sr. Vice President Head, SME Banking at Abu Dhabi Commercial Bank

BAnkIng on BUSInESS


the Sme SucceSS SerieS buSineSS netWorking eVening, preSented by adcb, WaS a huge SucceSS. conVerSationS,

contactS and conSultationS Were the order of the day. We bring you highlightS.

BeAch ANd BuSiNeSS

After a long day at work, the last thing we wanted was to cram everyone into

a room and bore them to death. So we decided to break away from the boardroom and plan a networking evening that would be both enjoyable and useful for everyone present. The aim was to walk away with a stack of cards and some great business leads.

We thought it would be great if about 70 people turned up. Imagine our delight when we welcomed around 150 people from the vibrant UAE business community. People drove down from other emirates to attend and the feedback we got all evening, and even later, was that it was well worth it.

Besides the opportunity to network, we also offered one-on-one consultations with various subject matter experts all evening. Many of our readers had asked for the opportunity to discuss their concerns with experts, but not in a

BuSiNeSS NeTWORKiNG eveNiNG <<<

SME SUCCESS SERIES

public forum. Attendees queued up to get specialised legal and financial advice which was customised and confidential.

We passed the microphone around, so attendees could introduce themselves and maximise their chances of meeting potential business leads. Despite some initial shyness, it was great to see many of them open up and talk about themselves and their business.

It was also amazing to meet so many of our readers and hear their stories in a less formal setting. We had the most heart-warming conversation with Farook A., who attended our previous event, quit his job, and then registered his own business. He said, “Even though you may not realise it, what you do makes a difference to people’s lives.” That was the best thing we’ve heard in a while. It’s not always easy to cover everything we’d like to; we do what we can and such feedback makes it worth it.

There are many more events

planned in the SME Success Series this year, along with our annual summit and awards in November. Do visit www.smeadvisor.com/events for regular updates.

Nilanjan Ray, Sr. Vice President Head, SME Banking, ADCB, welcomes the audience

(L to R) Ketaki Banga, Senior Editor, SME Advisor Middle East; Mike Byrne, Sub Editor, SME Advisor ME; Richard Judd, Commercial Director CPI Business and IT

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Supported By Strategic Partner Knowledge Partner Event Partners Publisher

date: 23 februarytime: 6 pm onwardsVenue: the Sandbar, the Westin dubai mina Seyahi beach resort and marina

for more event photos, visit www.smeadvisor.com/events and www.facebook.com/SMEAdvisor.


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Rajesh S. Jangla, Head, Treasury Sales Dubai, NE & Oman, Treasury & Investments Group, ADCBA treasury, derivatives and commodities specialist, Rajesh has over 17 years of treasury and financial markets expertise with various FIs in the Middle East. He has been with ADCB’s Treasury and Investments Group for over five years providing vanilla and exotic risk management solutions in foreign exchange, interest rate and commodity derivative to ADCB’s clients. He has extensive expertise in providing foreign exchange electronic solutions to business houses in the region.

Dhiraj Kunwar, Regional Manager, Business Banking Group, SME, ADCBDhiraj has over 12 years of banking experience in the field of SME/corporate lending, liability management and product development and capital markets. He has worked with various top banks across India and UAE.

Exclusive Telecom Partner Supported By Strategic Partner Knowledge Partner Event Partners Publisher

Ehtesham Riaz, Team Leader, Medium Segment, Dubai Business Banking Group, SME, ADCBEhtesham manages a team that provides custom made working capital and trade related solutions to cater to the business requirements of Medium Segment companies in any industry operating in the emirate of Dubai. His expertise includes over draft facilities, short or medium and long term loans, invoice discounting, post dated cheque discounting, LC, finance against trust receipt, letter of guarantees and more.

Bilal Hamoui, KAB Manager UAE, Lenovo United Arab Emirates

Bilal deals extensively with LE and LCA market segment for the UAE and focuses on positioning the corporate

product portfolio in these verticals.

Technology for business

Fayez Khouri, Senior Associate, Al Tamimi and CompanyFayez is a senior associate in the firm’s Banking & Finance department. He has also acquired extensive experience in property law while at the firm and in general commercial law while working in private practice in London and in-house in Dubai. Prior to joining Al Tamimi, Fayez spent two years at Sama Dubai, two years at Lovells in London and four years at Howard Kennedy in London. During this time, he dealt with the legal aspects of real estate development and leasing, private finance initiatives (PFIs) and general property finance transactions.

Mamoon Khan, Associate, Al Tamimi and CompanyMamoon is an associate in the Banking & Finance practice at Al Tamimi & Company having specialised in banking, corporate lending and project finance transactions. Before joining Al Tamimi, Mamoon worked for Orr, Dignam & Co (a law firm in Pakistan) following his call to the Bar in 2001 and was primarily involved in banking and corporate finance work including mergers, acquisitions and privatisations as well as advising on project finance, derivatives and capital markets transactions.

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and regulations of opening a new free zone establishment in Jumeirah Lake Towers (JLT), which is proving a highly desirable location for new businesses with its competitive rent rates and strategic location.

Nuria Gonzalez-Martin, HR Director of RealHR, outlined the services they provided to SMEs in the region, with expert advice on labour law issues, managing talent and HR strategy. “We put this event together because we feel this is something that adds real value to business relations – whether you each make one new contact or ten then coming will have helped,” she said.

In addition to this SME’s Senior Editor, Ketaki Banga, told the attendees: “As an SME

ourselves we write about the real life challenges we face. At SME Advisor we believe in dialogue and as knowledge partners at such events we always ask for your inputs, so please do connect with us.”

SME Connects will offer an exclusive club for key decision-makers and a number of benefits of association, which will include specific networking opportunities, regular updates of cutting edge product and service offers, and opportunities to explore strategic partnerships and alliances.

The next event will be held during May 2011. To be added onto the SME Connects database, e-mail your details to [email protected]

and service industry professionals under one roof.

The focus of the first event for SME Connects was to network and discuss any issues relating to marketing and branding, opening up a new establishment in Jumeirah Lake Towers (JLT), human resource issues and advertising in the UAE. The evening proved a success with over 65 top level management in attendance

Mohammed Tayem, Managing Director of Entourage, provided a short presentation on turnkey marketing solutions for SMEs, focusing on budgets and targeted audience. Knowledge partners, Dubai Multi Commodities Centre (DMCC) provided guidance and confirmation on the rules

realhr, SpecialiStS in recruitment and conSultancy, in conJunction With entourage marketing and eVentS, launched Sme connectS, With the inaugural eVent held in february at the White lounge, grand habtoor, dubai.

KeeP YOuR BuSiNeSS cARdS ON The ReAdY!

SME Connects provides an opportunity for SME and

entrepreneurs to network with likeminded individuals, share experiences, connections and bring business opportunities alike. The setting is a mix of both the formal and informal, with short presentations from the Knowledge partners and designation zones and opportunities to talk to experts in support services.

These networking events were initiated to provide a focused networking platform for SME owners, companies offering support and services for SMEs and for those looking to set up an SME in the region. Throughout 2011 this exchange forum will hope to bring governmental authorities, manufacturing and trade


>>> deMOcAMP 2011 SeRieS

SME ABoUt town

are you an entrepreneur or an it enthuSiaSt With a great idea that needS the right kind of platform to propel it

off the ground? then, the dubai internet city democamp on april 27, 2011 – the

firSt in the SerieS of four thiS year – iS a muSt-attend for you.

dic SeT uP cAMP

For most technology innovators and entrepreneurs in

Dubai, the word DemoCamp conjures up images of fresh opportunities and changed fortunes. Such a mental picture would not be far from the truth, since this is exactly what previous editions of the event

have successfully achieved.DemoCamp Dubai is a

quarterly conference that opens up creative communities for tech entrepreneurs, start-ups, venture capitalists, as well as professionals and engineers. The aim of the events is to serve as highly efficient platforms that connect budding innovators to those

who have the financial means to propel the ideas off the drawing boards and on to the markets.

The concept of DemoCamp began in 2005 in Toronto, Canada, when two business partners created a light-weight monthly gathering for designers, developers and entrepreneurs to get together and demonstrate the innovations and applications they had been working on. Since then, the DemoCamp model of events has rapidly gained global acclaim, where demonstrators present their big ideas in a time window of a few minutes, as a group of venture capitalists and corporate high-tech investors pay attention to spot talent and investment opportunity.

Majed Al Suwadi, Director Business Development at Dubai Internet City, said: “As part of DIC’s continuous encouragement of entrepreneurship and innovation, all DemoCamp events are specially tailored to foster regional talent and match them with angel

investors. Presentations may be in the form of a work in progress, close to release or even in full production. From web to mobile applications, English or Arabic content, local or regional reach, the event offers an opportunity to showcase the product, garner valuable feedback and find a collaborator.”

DemoCamp Dubai rides on the back of an escalating appetite for new technology in the region. The year 2010 saw DIC welcoming 150 companies setting up base at the ICT cluster, with almost half of them being SME’s.

DIC also has other initiatives including the FirstSteps@DIC business centre for start-ups and SMEs to test the market before committing to establishing a large foothold in the region.

Previous editions of DemoCamp Dubai have sent some lucky participants into the orbit of success. A unique online wedding directory in Arabic yebab.com that targets the UAE market is a perfect example of the success of DIC’s DemoCamps. Yebab received suitable investor funding as a direct result of its participation in the first edition of DemoCamp in Dubai in March 2010.

DIC DemoCamp on April 27, 2011 timeline• April 17: Cut-off date for submissions• April 18-20: Judging and short listening• April 21-25: Mentoring session• April 27: DIC Democamp at American University, Dubai,

E building, 3rd Floor


TecOM iNveSTMeNTS MediA cluSTeR lAuNcheS ‘ThOuGhT iNcuBATOR’ WORKShOP SeRieS

‘POTeNTiAl’ lAuNcheS fRee WeB-TRAiNiNG PROGRAM fOR MeNA SMeS

SOciAl MediA TiPS fROM PROTOTYPe WORKShOP

The series will feature monthly workshops, addressing issues from social media, online/digital media and public relations to advertising and marketing, media content and industry initiatives.

Mohammad Abdullah, Managing Director of TECOM Investments’ Media Cluster, said: “The Thought Incubator initiative will be an important platform for the media and marketing community to gain insight into

The focus of the session was to create awareness and a greater understanding of what exactly social media is and how it can be utilised by both individuals and businesses. Prototype’s Chief Executive Officer, Alexander Rauser, began with a clear message from the outset:

“The social networking platforms such as Twitter, Facebook and Linkedin are tools

As part of its ongoing support to the SME sector, TECOM Investments, a diversified conglomerate and a member of Dubai Holding, organised the launch of Potential’s program which was unveiled in a press conference with the support of the company’s five key partners: Google and Intel, two leading global blue-chips with big focus on the region, Aramex and Zawya, two leading SME success stories from the region, and Harvard professor Michael Porter’s AllWorld Network which helps advance the growth of companies in emerging markets worldwide.

Over an initial period of six months, the ‘SME Evolution Program’ will provide a valuable blend of more than 50 free ‘webinars’ or online interactive training sessions as well as live workshops in collaboration with professors from top international universities.

“SMEs represent the backbone

THE ‘THOUGHT INCUBATOR SERIES’ WAS LAUNCHED By TECOM INVESTMENTS MEDIA CLUSTER TO PROVIDE INDUSTRy-SPECIFIC INFORMATION AND INNOVATIVE CONCEPTS TO STAKEHOLDERS.

‘MARKETING TO ONLINE COMMUNITIES’ WAS HELD ON JANUARy 31ST AND FOCUSED ON HARNESSING THE POWER OF ONLINE FORUMS AS A

POWERFUL MARKETING TOOL.

POTENTIAL, A UAE-BASED BUSINESS DEVELOPMENT COMPANy, ANNOUNCED THE LAUNCH OF THE ‘SME EVOLUTION PROGRAM’, A FREE WEB-

TRAINING PROGRAM FOR THOUSANDS OF UAE AND MENA SMEs.

PROTOTyPE, A FULL SERVICE INTERACTIVE AGENCy HELPING BRANDS TO DESIGN AND DEVELOP ONLINE MARKETING STRATEGIES, WEB ExPERIENCES AND MOBILE

SOLUTIONS, HOLD WORKSHOP ON SOCIAL NETWORKING FOR JOURNALISTS.

SME ABoUt town

trends, best practices and the tools driving the industry.

“It is also a unique opportunity for all media professionals within the Media Cluster community as well as external stakeholders to meet and network with peers and leading experts and take the best decisions that are critical to the success of their organisation,” he said.

The first session on ‘Marketing to Online Communities’ was conducted by CPI’s very own Magnus Nystedt, Group Editor Consumer Technology. The session aimed to leverage the synergy between social media and online communities to advance marketing objectives, through platforms such as Twitter, Facebook and Linkedin.

of the region’s economies, with employment opportunities in some countries representing up to 85% of GDP,” said Shadi Banna, Managing Partner of Potential. Speaking after the press conference, he told SME Advisor: “We plan to quickly reach about 500,000 of them in the first 12 months encouraging a large number of SMEs to attend.” The webinars, tailored to the size of companies, will enable SMEs to participate in focused practical exercises, templates and tools that they could use in their business, he added.

The program will also allow SMEs to network with thousands of their peers throughout the Middle East where they can get support from each other and from other mentors who will be assigned to answer questions and inquiries.

SMEs are invited to register for the free webinars on the following Website: www.potential.com/sme-registration

within the wider spectrum of social media and we should not rely too heavily on one single platform for business related issues such as advertising and marketing. In recent times social networking has been synonymous with social media but the clear distinction should be drawn between the two,” he said.

The most important element when adopting any

social networking approach to aid your business should be a clear branding strategy. It was discussed amongst attendees at the workshop that Chris Kirubi, Chairman of Coca Cola Nairobi, commented that: “You don’t need a social media strategy – you need a brand strategy that leverages social media. Don’t get off the brand strategy just because there’s a new communications channel, that’s how you lose the plot as a brand. Technology is the tail, not the dog,” he said.

A few tips… • Formulate a social media

strategy aligned with your brand• Integrate all of your marketing efforts• Don’t base your online activities on your competitors• Be active• Acknowledge and recognise your audience• Make sure to respond to dissatisfied customers – even if it means meeting offline• Write content worth sharing• Make it easy for users to participate• Accept criticism• Don’t expect instantaneous results

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EMPloyMEnt tREndS

Work permits There are now five internal work permits which may

be provided by the Ministry of Labour to individuals working in the UAE. These were introduced in Cabinet Resolution No. 25 of 2010 concerning Internal Work Permits Applicable in the Ministry of Labour and are considered below. Worker transfer permit – applicable

where a non-national worker is already working in the UAE and is transferred from one organisation to another. For this permit to apply, both organisations should

the beginning of 2011 haS Seen a number of neW cabinet and miniSterial reSolutionS hitting the headlineS aS they haVe

Wide-ranging effectS on labour relationS in the uae. rebecca ford of al tamimi & company proVideS an oVerVieW of the

changeS Which are introduced.

be registered with the Ministry of Labour. Temporary work permit – issued to

a national or non-national who is to be employed on a project or in a role which is not for more than six months in duration. Part time work permit – issued

to a national or non-national who is recruited for a role where they are to be working less than the normal working hours of full time employees within an organisation, undertaking the same job. Normal working hours for a full time employee are generally eight hours per day (which is the

stated maximum under the UAE Labour Law (UAE Federal Law No. 8 of 1980, as amended)), excluding lunch.

A senior Ministry of Labour official has been reported in the press as stating that this new permit shall enable employees to take up a second part-time job, in addition to any full time position they may already undertake. Although the Resolution itself does not expressly make this point, clearly the Ministry of Labour may choose to issue part-time work permits in order to enable them to be used in this way.

A senior Ministry of Labour official has been reported in the press as stating that this new permit shall enable employees to take up a second part-time job, in addition to any full time position they may already undertake


EMPloyMEnt tREndS

At present, how part time workers may be treated in respect of the minimum rights under the UAE Labour Law (which currently makes no provision for part time working) is not clear. However, this is an exciting development that will no doubt become clearer in the coming months, as issues arise and are taken to the Ministry of Labour or the Labour Court. Work permit for personnel sponsored

by their kinship – issued where dependents are recruited by an organisation. This means that expatriates will be able to act as official work sponsors for their dependents. Whilst this is no doubt a welcome development for some, we believe that this does not necessarily enable a spouse to work from home on their own account (in the absence of the necessary approvals and trade licence).

In addition, this may lead to employers shifting the cost of the permit fees onto the dependant’s spouse, and thus ultimately encourage more women to be directly sponsored by their employer, rather than their spouse. Juvenile persons work permit – issued

to nationals or non-nationals between the ages of 15 and 18.

Waiver of six-month ban in certain casesIn addition to the introduction of the five internal work permits, Cabinet Resolution No. 25 of 2010 also provides that the Minister of Labour will issue a decision defining worker categories, cases, conditions, controls and standards by which a work permit may be issued for non-nationals without being bound by the standard six-month post employment work ban, which is usually imposed by the Ministry of Labour. In this regard, the Resolution identifies three factors which the Minister of Labour should take into account when providing the decision on the waiver of the six-month ban as follows: Cases where an employer has

breached their obligations to the employee, or where the employee

is not the cause of the termination of the employment. We believe that this factor may have been introduced to address the situation where employees are made redundant, for no fault of their own, due to economic difficulties of the employer. Subject to the decision of the Minister of Labour, this may mean that such employees would be able to easily transfer to another role, without waiting for the requisite six-month period. The UAE labour market

needs employees with higher qualifications, distinguished expertise, and technical specialities. This factor will be helpful in ensuring that those workers with particular skills which are useful to the UAE are not lost by reason of the fact they are unable to work in the UAE for the six-month period and move to another country as a result. Setting the time period that the

employee must spend with the ex-employer and the categories which may be excluded from this condition.

Classification of organisationsPrior to the changes implemented by Ministerial Resolution No. 1187 of 2010 on Regulations and Criteria of Classifications of Establishments, employers fell within one of three categories, which were identified with regard to their compliance with Emiratisation and cultural diversity requirements. These categories determined the level of fees payable by employers, as well as the bank guarantees payable on recruitment.

Employers will now be determined as falling within three new classes, with the second class being divided further into three sub-classes. The second class (and its sub-classes) is similar to the three categories previously imposed.

The new “first class” category may be achieved by an organisation, provided that it has complied with certain legal regulations and standards, such as adherence to cultural diversity requirements, commitment to pay wages correctly,

provide appropriate labour accommodation, as well as a new Emiratisation requirement.

In order to achieve the first class category status, at least 20% of an employer’s workforce must be made up of professionals earning a certain level of remuneration, and UAE nationals must make up at least 15% of the professional levels. UAE nationals must be eligible for a government pension (or pension and social security provided by the relevant Emirate) to form part of the Emiratisation quota under this class.

First class category status can only be awarded by resolution of the Minister of Labour, and banks and insurance companies can only be eligible if they have previously met all Emiratisation quotas prior to 1 January 2011.

The new “third class” category has now been introduced for employers who accumulate certain “black points” (as set out below).

Violations of Labour Relations RegulationsIn Ministerial Resolution No. 1187 of 2010 on Regulations and Criteria of Classifications of Establishments, the Ministry of Labour has sought to address certain bad practices and violations which have become prevalent in the recent economic downturn.

The Resolution introduces three categories of violation and depending on their seriousness, imposes “black points”, and fines. For serious violations, the imposition of black points may immediately cause an organisation to be downgraded to the third class category, which will affect the requirements imposed upon the organisation, for example, in respect of bank guarantees. Alternatively for less serious violations, black points imposed have a cumulative effect and are maintained for one year on the file of the organisation. If an organisation exceeds 100 black points, within any given year, it may be downgraded to the third class category.

There are 13 violations in the

Expatriates will be able to act as official work sponsors for their dependents. Whilst this is no doubt a welcome development for some, we believe that this does not necessarily enable a spouse to work from home on their own account (in the absence of the necessary approvals and trade licence)


ABOUT:

Rebecca Ford is a Senior Associate in the employment practice of the Corporate & Commercial Department, specialising in employment law. Prior to joining Al Tamimi & Company, Rebecca has worked both in private practice and in-house.

Rebecca advises on employment issues arising onshore in the UAE and in the free zones, including the Dubai International Financial Centre. She has advised on a full range of issues, both contentious and non-contentious, including employment contracts, policies and procedures, secondment arrangements, redundancies, issues arising from company acquisitions and insolvencies, bonus and commission payments, disciplinary and grievance issues, dismissal and termination issues and the enforcement of post-termination restrictions and labour bans.

She also spent six years in the employment department of Olswang, London, and also assumed the position of head of the employment legal team at BGC International and Cantor Fitzgerald group of companies.

Rebecca has worked on a number of reported cases in the High Court of England & Wales, as well as in Hong Kong, Singapore and Australia.

first level and these are where an organisation:1. Is convicted of recruiting individuals not legally present in the country;2. Is convicted of trafficking people;3. Falsifies their Emiratisation compliance;4. Deliberately provides incorrect information in respect of the wages protection system (WPS), for the purposes of evading or manipulating the regulations relating to the WPS;5. Recruits juveniles or women in hazardous conditions or which may be harmful to health, in breach of applicable regulations;6. Closes, suspends or fails to practice its commercial activities without settling the dues of its employees;7. Fails to pay an employee for 60 days or more;8. Has employees who sign documents which falsely indicate that they have received their labour entitlements;9. Provides accommodation to workers which fail to comply with standards contained in applicable regulations;10. Recruits or allows an individual to work for a third party, without obtaining a work permit from the Ministry of Labour 11. Undertakes recruitment, supply or hire of workers, without an appropriate licence from the Ministry of Labour;12. Does not use, employ, or recruit employees to practice work for a period exceeding two months; and 13. Compels an employee to pay for the expenses of recruitment and employment. Violations in this first level attract an immediate 100 black point penalty, so that an organisation is automatically downgraded to the third class category and is also fined. The fine in most cases is AED 20,000 for each violation or worker in respect of which the organisation is in breach.

However, in three instances, the Ministry of Labour has discretion to impose a fine within a range, so that where the violation is as set out in (6) above in the first level, the fine is

not less than AED 10,000 and not more than AED 50,000, and where the violation is as set out in (7) or (8) above in the first level, the fine is not less than AED 5,000 and not less than AED 50,000.

There are six violations in the second category and these are where an organisation: 1. Fails to comply with applicable procedures for the employment of nationals;2. Fails to comply with any Ministry of Labour summons and related labour affairs, on the dates required by the Ministry of Labour;3. Fails to take necessary action to register absconded employees;4. Vexatious or false reports an employee as having absconded;5. Fails to ensure that applicable employees do not work during any prohibited work period in the summer; and6. Provides incorrect documents or data to the Ministry of Labour.

There are four violations in the third category which are where an organisation: 1. Fails to participate in the WPS;2. Fails to comply with applicable standards of occupational health and safety, or fails to comply with prescribed procedures, to prevent health and safety risks;3. Fails to notify the Ministry of Labour regarding work injuries, occupational disease, or death of the worker, resulting from working conditions, within 48 hours of the occurrence of the injury, disease, or death; and4. Fails to rectify any violation of standards of workers’

accommodation within any timeframes set by the Ministry of Labour.

Violations in the second level attract 70 black points, as well as a fine of AED 20,000 for each violation or worker in respect of which the organisation is in breach. Violations in the third level attract 50 black points, as well as a fine of AED 10,000 for each violation in respect of which the organisation is in breach.

The simultaneous issuance of such wide ranging Resolutions that affect labour relations in the UAE is certainly unprecedented, and with the Ministry of Labour promising that further changes are due to be implemented very soon, the actual effect of all these changes will certainly take time to assess. What is abundantly clear, however, is that the UAE government seems to be determined to implement changes to the existing systems in place. Whether or not these changes are a signal of a pending change, or merely designed to be effected in place of the UAE Labour Law, remains to be seen.

For less serious violations, black points imposed have a cumulative effect and are maintained for one year on the file of the organisation. If an organisation exceeds 100 black points, within any given year, it may be downgraded to the third class category

Rebecca Ford, Senior Associate, Al Tamimi & Company

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In the UAE employers were particularly concerned about working mum’s flexibility (48%) and that they might take time off to have another child (45%)

>>> WORKiNG MuMS

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reSearch from WorkSpace SolutionS proVider reguS reVealS that 2011 Will See

employment doWnturn for Working mumS aS old preJudiceS reaWaken.

MuM’S The WORd

In a worrying development for equal opportunities across the globe, research

from workspace solutions provider Regus has shown that the proportion of firms intending to hire more working mothers has slumped by one fifth since the same time last year. Compared to a year ago, when 44% of companies planned to hire working mothers, only 36% expect to do so now. These findings will be of particular concern to women’s groups as overall employment prospects brighten with the accelerating global economy. The new study from Regus also reveals a residual proportion of businesses who continue to harbour concerns about employing working mothers, along with some detail as to what those concerns are.

When compared to overall business employment expectations, where 45% of companies globally intend to make new hires in 2011, the Regus study showed that the intention to employ working mums has fallen considerably below this level, causing considerable concern to families, women’s groups and governments alike. In the UAE, where 46% of companies plan to add staff, this trend is even more evident with only 32% of firms declaring they plan to hire more working mothers.

The report also reveals residual concerns amongst a minority of employers, who still fear that working mothers may show less

commitment and flexibility than other employees (37%), leave shortly after training to have another child (33%) or have out-dated skills (24%). In the UAE employers were particularly concerned about working mum’s flexibility (48%) and that they might take time off to have another child (45%).

On the positive side, a majority of businesses now value returning mothers, with 72% declaring they believe companies that ignore part-time returning mothers are missing out on a significant and valuable part of the employment pool. In addition, 56% regard working mums as offering skills that are difficult to find in the current market; and 57% declare that they value returning mothers because they offer experience and skills without demanding top salaries [which isn’t really a comforting thought, come to think of it]. In the UAE, not demanding top salaries was just below the global average (56%), perhaps indicating that working mothers stand a slightly better chance of being reasonably compensated for their work.

Mark Dixon, CEO of Regus commented, “It is not surprising to see that prejudiced attitudes come back into play with economic belt-tightening and some businesses are evidently still guilty of applying old-fashioned misgivings to the contemporary work environment. Nevertheless, the UAE is reported to have the highest level of female participation in employment in the GCC with 59% of women contributing to the economy. While the vast majority of firms agree that barring the door to working mums means shutting out valuable staff, there is some concern that family commitments may hinder working mothers from giving their job full attention and commitment.

“As the workplace evolves it is recognised that businesses that are able to integrate these valuable assets stand a better chance of success. Recognising that the needs of working mums are not exceptional and extending them to all workers will provide productivity and overheads reduction benefits as well as making for more motivated staff,” added Dixon

MethodologyOver 10,000 business respondents from the Regus global contacts database were interviewed during August and September 2010. The Regus global contacts database of over 1 million business-people worldwide is highly representative of senior managers and owners in businesses across the globe. Respondents were asked about their intentions to hire working mothers and about their role in the workplace. The research was managed and administered by the independent organisation, MarketingUK. To download a copy of the full report, visit www.regus.presscentre.com.


priVate Sector SalarieS in the uae are forecaSt to increaSe at an aVerage rate of 6.3 percent thiS year, according to reSearch releaSed by

gulftalent.com, an online recruitment firm in the middle eaSt.

SAlARieS <<<

cASh flASh

EMPloyMEnt tREndS

The findings were published in GulfTalent.com’s sixth annual review of labour market

trends entitled Employment and Salary Trends in the Gulf 2010-2011 and were based on a survey of 32,000 professionals and 1,400 companies across the six Gulf states.

Among countries, Qatar and Saudi Arabia had the highest pay rises in 2010 at 6.8% and 6.7% respectively. Oman was in third place with 6.4%, followed by Kuwait at 5.7%.

The UAE and Bahrain saw the smallest increases at 5.2% and 4.9% respectively.

Although much lower than the double-digit increases of 2008, the pay rises were all higher than the rates of inflation, resulting in improving living standards for many. However, an estimated 55% of professionals did not receive any pay increase at all.

Across the region, with consumer spending picking up, the retail sector saw the highest pay rise at 6.4%, while education had the smallest increase at 3.8%.

Among job categories, Human Resource professionals saw the highest raise at 7.1%. Many executives told GulfTalent.com that, with their companies increasingly focused on performance, the HR function had assumed a much

greater significance. Lawyers had the smallest increases at 4.3%.

According to the study, pay increases were largely driven by the employers’ efforts to retain their top performers, growing demand for skill in Qatar and Saudi Arabia, as well as continued growth in Asia, the main source of talent for the Gulf.

With increasingly attractive career opportunities in their home countries, Asian professionals working in the Gulf received pay rises of 6.1% compared with just 3.2% for Western professionals.

Salaries in the booming Indian economy grew at 11.1% in 2010, compared with just 2.4% in the UK, where unemployment remains high following the financial crisis.

Based on the report findings, the Gulf’s labour market is witnessing “a small but fast-rising Chinese presence” – as employers seek substitutes for India and the Philippines, their traditional sources of skill, while a growing number of Chinese companies win major construction and energy contracts in the region, often bringing the required staff directly from China. Construction of a high-speed railway connecting Mecca and Medina, and a new port in Doha are among contracts recently awarded to Chinese firms.

Based on GulfTalent.com’s study, the employment market in the Gulf

is expected to continue growing at a moderate pace, aided by global economic recovery, rising oil prices and continued government spending on infrastructure projects. 61% of companies surveyed expected to increase headcount in 2011, compared to 9% who planned staff cuts.

Qatar mobility and rise GulfTalent.com’s study highlights the rising prominence of Qatar as a destination for professionals. The trend has been driven by fast-rising salaries, falling cost of living, growing employment opportunities and an improving international brand, which came to a grand finale with the country’s surprise qualification to host the 2022 Football World Cup.

Based on an analysis of vacancies advertised by employers and recruitment agencies on GulfTalent.com Website, job opportunities in Qatar have grown from 8% of all GCC vacancies in 2008 to 16% in 2010.

GulfTalent.com’s survey of mobility intentions found that, while the UAE remains the most attractive destination for professionals, favoured by 49% of GCC-based expatriates, Qatar is closing in fast, with a 44% following. Based on current trends, Qatar could become the Gulf’s most popular destination for expatriates.

With increasingly attractive career opportunities in their home countries, Asian professionals working in the Gulf received pay rises of 6.1% compared with just 3.2% for Western professionals.Salaries in the booming Indian economy grew at 11.1% in 2010, compared with just 2.4% in the UK


EMPloyMEnt tREndS

who will seek careers in the Gulf, putting downward pressure on salaries”, the study said, citing the experience of the 2006 conflict in Lebanon which resulted in a mass migration of Lebanese professionals to the Gulf.

The report adds that “the resulting coverage of the region in international media may deter some Western professionals from relocating to the Gulf”, similar to the trend seen in 2003 in the immediate aftermath of the Iraq war.

Events in North Africa have also drawn attention to spiralling food prices and the challenges of youth unemployment. According to the study, employers in the Gulf are likely to face tougher workforce nationalisation targets in 2011, as governments

accelerate existing efforts to create jobs for their nationals, particularly in Bahrain and Oman which according to UNDP statistics, have the highest rates of unemployment in the GCC.

GulfTalent.com’s study was based on a survey of 32,000 professionals and 1,400 companies in the six countries of the Gulf Cooperation Council (GCC), as well as interviews with regional business leaders and human resource managers. The survey was conducted during December 2010 and January 2011. The full publication entitled Employment and Salary Trends in the Gulf 2010-2011 is available for download free of charge from the company’s website at: www.gulftalent.com.

The study highlights the rising prominence of Qatar as a destination for professionals. The trend has been driven by fast-rising salaries, falling cost of living, growing employment opportunities and an improving international brand

Meanwhile, employers across the region continued to tap into the talent pool in Dubai, the study said. In addition to professionals who had relocated from Dubai since the onset of the crisis, an estimated 5% of Dubai’s residents now commute daily to their jobs in Abu Dhabi, a five-fold increase since 2008.

A similar trend was found in Bahrain, where 2% of residents cross the border each day to Saudi Arabia’s Eastern Province, the home to the country’s oil and petrochemical industries, up from 1% in 2008.

Despite outflows resulting from job cuts, the UAE remained far ahead of all other Gulf countries in terms of popularity with its current residents, thanks to its superior infrastructure. 72% of UAE residents prefer to remain there, compared to 59% in Kuwait and 50% in Qatar.

Impact of Middle East turmoilAccording to the study, potential turmoil in the wider Middle East region could have a mixed impact on the availability of talent in the Gulf during 2011.

Any sustained upheavals “could increase the supply of Arab professionals from regional hotspots

Table A: GCC Average Pay Rises by Country 2010-2011

Country 2010 2011 Forecast

Qatar 6.8% 7.2%

Saudi Arabia 6.7% 7.0%

Oman 6.4% 7.0%

Kuwait 5.7% 5.9%

UAE 5.2% 6.3%

Bahrain 4.9% 5.1%

Overall GCC 6.1% 6.6%

Source: GulfTalent.com

Table B: GCC Inflation 2010-2011

Country 2010 2011 Forecast

Saudi Arabia 5.4% 6.3%

Oman 4.0% 4.5%

Kuwait 3.9% 4.8%

Bahrain 2.5% 3.0%

UAE 1.6% 2.1%

Qatar -1.9% 2.1%

Source: Economist Intelligence Unit


AT A GlANce

• Qatar tops regional pay rises

• HR professionals get the highest raise

• Moderate jobs growth forecast for 2011

• Egypt turmoil could impact talent

availability in the Gulf

As far as business finance in UAE is concerned, there are many financial

institutions that can provide financial support to small and medium enterprises. These loans are provided for start up businesses as well as for the expansion of small businesses. Apart from this, a small business can also use venture capital and angel investors.

The ABCsCommercial property finance is only available to UAE-established businesses. Loans, however, are granted at the discretion of the lending institution. There are around a dozen banks or finance companies that specialise in lending in this area.

Working capital finance is also available to various small business enterprises, as discussed in depth from pages 18 - 21. Such advances are given for financing day-to-day needs and to bridge the gap between payments and receipts.

How to BUy

MORTGAGeS <<<

Lastly, there are angel (or private) investors in the UAE that can also provide a source of finance for SMEs. However, these investors require to be fully convinced before they agree to make investments in small business projects, and may want to take a stake in the company.

Commercial mortgages in the United Arab Emirates are governed by the UAE Commercial Code and are a type of security registered over business premises in the UAE in relation to the tangible and intangible assets of a business necessary for commercial activity.

Commercial mortgageA commercial mortgage will be registered over a business premises which must include all assets (tangible and intangible) that are required for commercial activity. Tangible assets are specified in the Commercial Code and cover items such as goods, equipment or machinery; and intangible assets such as customers, goodwill, trade name,

right to let, patents and licences, and so on. At the very minimum, UAE law requires that a commercial mortgage should cover the trade name, the leased premises, customer contact details and goodwill.

Commercial mortgages can only be mortgaged to banks and finance companies, and only as a form of security that can be registered. They must be notarised and registered to be “perfected” (completed). Perfection is done by way of registration in the Commercial Register of the relevant Emirate (for example the Commercial Mortgage Register is maintained by the Department of Economic Development in Dubai and Abu Dhabi or the Fujairah Municipality in Fujairah. All parties’ contractual and legal obligations under a commercial mortgage are continuous, and both parties should be aware of their ongoing obligations to ensure the mortgage is fully perfected and enforceable according to the terms of the financing documentation.

So one can say that commercial mortgages can generally be viewed as an umbrella mortgage under which various types of moveable assets can be mortgaged. Unlike in other jurisdictions, a floating charge over all and any assets, current or future, is not possible under UAE law. Instead, piecemeal security over specific assets has to be taken.

A commercial mortgage will be registered over a business premises which must include all tangible and intangible assets that are required for commercial activity. Tangible assets are specified in the Commercial Code and cover items such as goods, equipment or machinery; and intangible assets such as customers, goodwill, trade name, right to let, patents and licences, and so on

cOMMeRciAl MORTGAGeS fOR SMescommercial mortgageS in the united arab emirateS are goVerned by the uae commercial code and are a type of Security regiStered oVer buSineSS premiSeS in the uae in relation to the tangible and intangible aSSetS of a buSineSS neceSSary for commercial actiVity. independent financial adViSor greg pogonoWSki liStS the thingS to keep in mind.


How to BUy

Terms and conditions Because all parties’ contractual and legal obligations under a commercial mortgage are continuous and do not end upon a successful registration, a commercial mortgage is intended to cover the term of the loan and, in order to remain a perfected and enforceable security it must be renewed and upgraded throughout its life span. The Commercial Code provides that a commercial mortgage, once registered, shall only secure a priority right for five years. Registration in the Commercial Register must be renewed before the expiry of the fifth anniversary or the priority provided by this form of security is lost and the mortgage will be deemed to have been cancelled. Renewal in the Commercial Register is normally negotiated between the parties at the outset and provision can be made whereby the bank can opt to renew the mortgage without notice to the company.

Regardless of which party effects the renewal, all parties should be aware of the consequences of non-renewal. Failure to maintain a properly perfected security is normally deemed to be a breach of the financing documentation and the company risks a default should it fail to keep its commercial mortgage registrations up to date. The banks also have some responsibility in keeping an eye on the registration dates of its commercial mortgages to ensure that the security is duly perfected at all times and is enforceable for the full term of the loan.

Under a commercial mortgage the borrower is required to mortgage all its existing identifiable moveable assets. Where the company acquires further assets during the period of lending, it will be required to execute, notarise and register these additions and for these to be filed with the commercial mortgage and the Commercial Register, itemising the additional assets and their values.

The mechanics of filing additions are usually set out in the initial commercial mortgage

assets. Failure to do so can result in a technical default. Agree registration fees up front with the relevant registering authority or be prepared to pay additional fees on each subsequent filing. If possible, agree to cap fees as the rules vary from Emirate to Emirate. If registration fees are uncapped, a direct exemption should be sought from the local authority concerned to avoid borrowers having to pay higher additional and future fees that may render the whole mortgage uneconomic.3) Additional filing should be registered in the same form as the original commercial mortgage. It is vital that is should be translated into Arabic and notarised. In order to notarise any additions, the Notary Public will require sight of a copy of the original notarised commercial mortgage and the original mortgage registration certificate.4) Additional filings should contain a full list of assets, clearly itemising each asset and its individual value.5) One matter that is sometimes overlooked is that such filing should include confirmation that any new assets are insured and the details of the insurer should be given.6) It is always useful to pre-check with the relevant filing authority before attempting to register any additions as there may be a publishing requirement prior to it being registered having been implemented since the date of the original loan.7) Check whether the commercial mortgage requires any other filings or notifications to be made upon the registration of these additions, especially if needed by other regulatory bodies.

ABOUT:GREG POGONOWSKI – DipPFS, MAQ, CertCII(MP), MDRT, is an independent financial advisor with over 26 years experience in the financial services profession and works with Pinnacle Asset & Wealth Management.

He can be contacted by email at: [email protected] or by calling:+971 (0) 50 8769035.

documentation and negotiated between the parties. It is usual to have a provision whereby additional assets are required to be filed on a regular basis where certain assets are higher than an agreed threshold value (from date of inception).

In order to avoid the filing becoming an administrative burden for companies, there should be threshold asset values agreed at the outset and parties so as to not have to be forced to obtain waivers with regard to filing requirements.

Payment of a fee is required (on a percentage basis) of the new asset value to be secured. Often, the payment of fees is negotiated with the authority at the outset and a lump sum fee can be agreed to cover a percentage of the full value of the loan upon filing the initial commercial mortgage and this can include any subsequent additions.

A commercial mortgage is not quick and easy to enter into and all parties should be aware of their ongoing obligations to ensure the mortgage is fully perfected and enforceable according to the terms of the financing documentation.

Top seven tips to make sure your commercial mortgage goes smoothly:1) Make a note of the renewal date. Registration is only valid for five years. Commercial mortgages can be renewed by application to the relevant authority within the relevant Emirate. Each authority will have its own procedures and will require sight of the original commercial mortgage and the original commercial mortgage registration certificate.2) Make a note of the agreed dates relating to the filing of additional

Greg Pogonowski, Independent financial advisor

Because all parties’ contractual and legal obligations under a commercial mortgage are continuous and do not end upon a successful registration, a commercial mortgage is intended to cover the term of the loan and, in order to remain a perfected and enforceable security it must be renewed and upgraded throughout its life span


Feng Shui (pronounced Fung Shway) translates directly as “wind-water”. It is the principle of

moving wind and water energies, our “chi” or “qi” (both meaning energy), they all represent energy. Historically, Feng Shui was widely used to orient buildings in an auspicious manner. Depending on the particular style of Feng Shui being practiced, an auspicious site could be determined by reference to local features such as bodies of water, stars, or a compass.

The origins of Feng Shui are arguable; Feng Shui was practiced using the planets to find correlations between humans and the universe. This was 3500 plus year before the invention of the magnetic compass. Feng Shui was suppressed in China

How to BUy

i liKe YOuR viBe!

on the productivity and morale of your workforce, as well as on the comfort and confidence of your clients.

Whilst making money seems materialistic, it is of course good business. Surprisingly there are many energetic repercussions that affect all aspects of your life. Money flows in and out of your life like the wind, touching everything as it passes by. That’s why it is important to make sure that this wind is a healing and strengthening force, not a destructive power that causes harm. It is equally important to ensure that the wind blows constantly, at least as a breeze, and that there is never stagnant, foul air. (According to Feng Shui, foul air would symbolise stagnant finances).

feNG Shui <<<

during the cultural revolution in the 1960s but has enjoyed increasing popularity and use since then, in the East and West. The goal of Feng Shui is to situate the human-built environment on spots with the best and most appropriate energies. The “perfect spot” is a location and an axis in time, and these energies can affect everything – home, finances, health, relationships. And of course work.

It’s possible to improve productivity, customer satisfaction, employee satisfaction using Feng Shui, even just the principle basics. Arrange your office or cubicle according to the principles of Feng Shui to get the most work done with the least stress and frustration. Your office’s location, floor plan, and interior space have a critical impact

hoW often haVe you Walked into an office and loVed itS buZZ? you can’t Quite put your finger on it, but there iS a definite Vibe about Some placeS. Some Say feng Shui haS a role to play in that. Shakila khan, client SerViceS manager (trainee feng Shui conSultant), bbr deSign, adViSeS hoW to channel the energy at your Workplace to increaSe productiVity.


How to BUy

The continuous corporate emphasis on cost-cutting and profit maximisation has led to a related yet unfortunate drive to squeeze the maximum possible usage out of every square meter of office space, not to mention out of employees. The transition to more people sharing space contributes to an admirable flattening of hierarchies within corporations – not to mention design advantages of light and space. However the downside is sterility, a lack of privacy and personal space; you may feel like a unit in a machine rather than a person with individual needs and desires.

The ideal thing is to have your own office but as we all know this has been on the decrease for some time. Nevertheless, it’s possible to arrange your desk and items on and around it to maximise the flow of good energy, to attract better energies and to keep negative energies at bay.

There are two ways to use Feng Shui for your office. You can either employ a Feng Shui consultant at the time of creating the office, so they can advise on the position of doors, windows and how to maximise on natural light for example. Alternatively you can employ a Feng Shui consultant to review the space and implement some of the basic philosophies. If you’d like to have a go yourself, here are some simple tips to help you enhance your work place:

Remove clutterYour office must be organised and arranged efficiently. According to Feng Shui clutter stimulates negative chi (energy) and should be kept to a minimum. Remove whatever extraneous materials are lying in your office. By clearing away the physical clutter that you have been confronting on a daily basis, you free up your mental, emotional burden and feel light, cheerful and optimistic in your reinvigorated working space.

The position of the deskKeep your desk in the “commanding” position. The commanding position means a position of power, where you have a direct view of the door, a pleasant view out the window and a wall behind you for stability. This position of the desk according to the Feng Shui office offers you the maximum control. Where all these elements aren’t possible, try to achieve one at least for each desk.

The shape of your deskYour desk’s shape can affect your mood and level of productivity in the workplace. Rounded curves are flowing, encouraging the flow of creativity. A kidney-shaped desk (said to be the most prosperous) follows the natural curves of the human body and is said to give you a subconscious feeling of inner alignment.

Placing of plantsPlacing plants in your workplace helps you stay connected to the natural world. Since the colour green spurs creativity and new ideas it helps you to have a creative element in the office. In Feng Shui practice, keeping plants helps to have positive chi flow in corners which otherwise are neglected spaces devoid of any energy. Green plants also act as a filtering system, reducing toxins and circulating stagnant air.

Choosing the correct lightThe best light is natural daylight, so move your desk close to a window but never have your desk directly in front of a window or fluorescent lights that cast a glare, causing eyestrain and exhaustion. You may improve your mood and energy dramatically by replacing fluorescent lights with warm lights that don’t cast a glare.

The use of coloursMaking use of Feng Shui colours can help you achieve balance in

Clutter stimulates negative energy and should be kept to a minimum. By clearing away the physical clutter that you have been confronting on a daily basis, you free up your mental, emotional burden and feel light, cheerful and optimistic in your reinvigorated working space

ABOUT:

Shakila studies Feng Shui in her home city of Dubai. Shakila has been in Dubai since 2007 during which time she was part of the pre-opening team at Burj Khalifa and now works for an interior design consultancy, BBR Design. She can be e-mailed at [email protected].

your office as well as promote and encourage better business practices and rewards. Different colours have different properties; some colours can help people feel grounded and secure. Blues, purples, chestnuts and reds are supposed to enhance the wealth, prosperity, creativity and productivity of your office. White, black and green should be used in moderation as depending upon their tone, they have positive and negative implications.

Irregular room shapeUse a faceted crystal sphere, mirror, or plant to correct the space. If your office is extremely irregular, you can have inexplicable setbacks and continuous frustrations at work. If you can’t switch offices, you can apply the special nine green plants cure: add nine healthy new plants to your space all on the same day. The plants should be purchased new for the purpose of this cure. If it’s convenient you can place the plants near particular irregularities in the room, such as strange angles, posts, cramped areas, and so on. Otherwise, just stick them where they fit best. Along with that, visualise that your job and career are going very well.

So now you have the basic tips of Feng Shui for your office, watch for the improvements – improvements in staff morale, increase in productivity and growth of revenue for starters. If you decide to proceed with a full Feng Shui consultation, choose carefully. There are many consultants in Dubai; I’d recommend a consultation with the specialist at the premises they’ll be working on.


Working on various design projects for years has opened my eyes to different influences

and inspirations of design concepts. I am fortunate to be practicing my profession in Dubai where I am exposed to an environment where cultural diversity is prominent. It is also a privilege to be working on areas of commercial and office interiors as the UAE is known to be a major business hub in the world where there are so many opportunities to apply such a wide range of ideas, depending on what clients are aiming to achieve. Having said that, as the UAE is naturally known to be a melting pot of different nationalities and cultures, clients always tend to differ in what they expect the interior designers to deliver.

In designing office interiors, numerous factors have to be considered. It is critical to have a full understanding of what the client really wants. The clients’ ethnicity and cultural background can greatly affect the design that they want. Based on experience, most Middle Eastern clients tend to veer towards traditional Arabian designs with the application of typical Arabic patterns on walls, ceilings, furnishings,

How to BUy

BY deSiGN

Office iNTeRiORS <<<

beanbagS in the boardroom or claSSic corporate charm? it’S good to See thingS from an interior deSigner’S perSpectiVe. elaine monfero-gan, deSign director, bbr deSign, ShareS her experienceS While Working on corporate SpaceS.

and so on. Colours chosen are mostly those of darker hues with a touch of class. On the other hand, Westerners often want a more modern, sleek and contemporary design with the use of bright, interesting colours while incorporating fun patterns through lines, shapes, and more. While most clients from the Asian region would either be minimalistic by choosing to be safe in colour and design choices, or opt to go for designs and decors that reflect where they come from and are mainly inspired by Chinese, Indian, Thai and other cultures.

The budget is also one of the main factors that most designers have to consider. Oftentimes, clients emphasise their design requirements and it turns out that they are way beyond their set budgets. This, then, becomes a challenge for designers like me but then again, there will always be means to make it work by being resourceful and extra careful in choosing the right materials and the proper approach.

Most clients would initially submit a brief that they would like an office that would be a perfectly work-conducive environment where employees will not dread coming to work and in turn would always be

enthusiastic to come to work every single day. The designers will then get the area inspected, measured and observed; that’s when all the ideas start to kick in, especially deciding on how to fully utilise the space available. This is when designing will be based on the interrelationship of space.

Most, if not all corporate entities, have a set branding and theme guidelines that are often reflected in their office interior design, and this is what is needed to be hugely taken into consideration. It also becomes a struggle when the branding of a certain company is global and is applied internationally; that would mean your liberty in creating something distinct is restricted because you have all these other existing designs from other countries (hubs) to base from and coincide with.

Some of the great examples of office interior design predecessors that most corporate environments gain inspiration from are the likes of Google, Facebook, Yahoo – where the concept of fun is what ultimately radiates. In this modern day and age, office chairs are replaced by bean bags, huge and bulky computer monitors are replaced by LCD and plasma flat screens, desktop computers are replaced by note book computers and note pads are replaced by iPads. Now, designers have more liberty to let their creativity run wild, with the permission of clients who take risks at being open-minded, fun and quirky.

ABOUT:Passionate about design, Elaine Monfero-Gan completed a degree in Architecture, Philippines at 2005. She brings with her a vast experience in the field, having had the opportunity to work on various focus areas in architecture and interior design, developing unique approaches on corporate and commercial projects. Elaine is currently working at BBR Design as Design Director and can be contacted on [email protected].

The designers will then get the area inspected, measured and observed; that’s when all the ideas start to kick in, especially deciding on how to fully utilise the space available

Elaine Monfero-Gan, Design Director, BBR Design


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Vincent Maldant, Architect Designer – Managing Partner, Studio7

Interiors Decorations, takes us through a typical day in his life. Studio7 Interiors Decorations is a young company that offers architectural design and a complete range of upscale interior design, planning and project management services to residential and corporate clients, residential developers and to the hospitality and leisure industries. Studio7 design work extends to the creation of bespoke interiors, furnishings and accessories, including handcrafted rugs.

6:00 am: This is the usual time I wake up most

mornings. After a trip to the gym, which is for an hour or so, I return home for a cup of coffee and get ready to go to the office. The commute to my office is just a short 5-minute

A dAy In tHE lIFE

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drive as it is bang opposite my residence.

9:00 am: I arrive at the office and get straight

down to business. As an architect designer, I often spend a great deal of time multi-tasking between activities. The morning begins with me going through my e-mails which are from potential clients, suppliers, as well matters concerning ongoing projects. I finish responding to the most

pressing mails and forward the others to my assistant who will respond to them. Today, I have to finalise a concept design proposal before the meeting with the client, which is after two days. At 11:30 am I am meeting another client of an ongoing project to make the final selection of the fabrics for upholstery and curtains at his apartment as well finalise the selection of bathroom equipment and accessories.

10:00 am: I review the concept design I

prepared last night and hand it over to my drafting team to start preparing the initial layouts. We discuss the details and I assist them with any problems concerning the designs before moving on to my 3D visualiser. I appraise the 3D image he is preparing for a villa in Phuket, Thailand. It’s looking very good and I am very happy with the design. I just make some slight changes in the colour before he proceeds to the final rendering of the image.

11:30 am: I leave the office to meet with my client

onsite. I review the work going on and am very satisfied with the way it is turning out. So is the client. We proceed to the fabric showroom where I make my recommendations for the fabric selection and the client approves. We then go on to the showroom for bathroom accessories. After a lengthy selection process, we finally finish all the required selections and I head back to the office.

1:00 pm: I usually have my lunch in the office together

with my CEO. After lunch, we both discuss and start preparing the agreement for the concept design proposal.

3:00 pm: I am meeting with my subcontractor in

the office this afternoon. We discuss in great detail the new project that he will start work on tomorrow. I give him all the necessary drawings and explain to him what I want done and how I want it done.

4:00 pm: I am meeting another supplier who has

brought over a sample sofa for my approval. I check the product, ask him to change the legs of the sofa to stainless steel instead of the current wooden ones. I also tell him to shorten the length of the sofa as it seems too bulky.

4:30 pm: I go through the concept design agreement

to check if it’s all okay. Follow up and respond to my e-mails.

5:00 pm: I usually spend some time with my

design team discussing the layouts and dealing with any difficulties they may have come across. Assign them with tasks to be done before my arrival in the office the next morning.

6:00 pm: I head out early today, as my mother, my

brother and his family are visiting from France. I will be taking them out to dinner this evening and showing them around the beautiful sites of Dubai by night.

Vincent Maldant, Architect Designer – Managing Partner, Studio7 Interiors Decorations


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Thank you to last years sponsors

SAlES

SAleS POlice: AT The SceNe Of The cRiMe

RevieW <<<

Intersec is the leading regional expo for security and safety sectors, promoting

solutions from multiple countries to a region that craves a safe and orderly community. As with any trade show, suppliers create snazzy stands, dress smart, and wait for potential buyers to approach their stand so they can lure them into a dance that exchanges a business card for a brochure, a smile for an e-mail, and a shake of a hand for a new relationship.

I attended the show as an undercover “sales police officer” to discover:1. Current trends in security and safety;2. If products were easy to buy, and;3. How effective promoters were engaging the prospects approaching their stand

Trends and display Security and occupational health and safety (H&S) are now featuring expenditure on technology. There is no doubt that IT is changing; and manpower is being preserved, not necessarily replaced, by alarm

detection and video surveillance. This technology senses security/safety threats, and it works by closing doors, opening exits, amongst other procedures, when our security or safety officer could be on a WC break. The name of the game, now, in security and safety is not replacing officers, but complimenting their function, with proactive systems, as opposed to reactive ones.

How were the suppliers displaying these trends? The smarter stands had hands-on gadgets and big screen computers where you could see yourself playing with the gadgets onscreen, live. These displays created a bandwagon effect: the more visitors you saw on a stand playing with gadgets watching themselves on the screen, the more attracted you were to join in and do the same. The supplier lured you in and he was ready for your questions about the device. Lesson learned: Each buyer has a different modality and style that influences his buying decision. The stands that had one modality, for example, one sales person and one

screen that was non-interactive attracted half of the visitors as a stand that allowed you to play, sense, and feel. A supplier offering an array of stimulus like touch, see, hear, and possibly smell, increases the possibility of attraction in any display.

Are making your product easy to buy?IT was a big component of Intersec 2011 with suppliers promoting their latest gadgets. So what?! Is a 5 megapixel sensor better than a 3.5 megapixel sensor when it comes to a camera or is it just a bigger number? Who can show me the real difference without Photoshop or special paper?

So which to chose from? If all suppliers have the same technology that have the same features, could the buyer default his decision to the price? As the “sales police officer”, I searched eight Halls looking for one tagline that offered a benefit. Something like “5 mega pixel sensors so you can see his shoe size from 20 meters away.” I could not find even one.

Any smart salesperson would turn to me and say, “Well, Jennifer, our buyers already know the benefits.”

As the “sales police officer”, I searched eight Halls looking for one tagline that offered a benefit. Something like “5 mega pixel sensors so you can see his shoe size from 20 meters away.” I could not find even one

interSec 2011, at the dubai World trade centre in January, preSented the perfect Venue to

obSerVe a feW Stellar companieS attempt to conVert proSpectS into clientS. far too many

exhibitorS Staged a criminal WaSte of time. Jennifer baxaVaniS, founder and managing partner, bax conSulting, collectS eVidence

and SubmitS a poSt-mortem report.


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I do not doubt they do. However, benefits sell, features inform. When I go to the car dealership, and the sales person informs me that the car I like gets 60 miles per gallon, I am impressed. When he tells me the car gets 60 miles per gallon hence I will save 200 AED per month on my gasoline bill, I am impressed and I want to buy, as that piece of information suddenly feels so close and personal – my money!

I walked around with the president of an Occupational H&S training provider based in Dubai, and interviewed him on what he thought of his potential suppliers’ stands. As I asked him, we passed a stand with two women dressed in skimpy red tights and hot tops. He chuckled and said, “Sex doesn’t sell in security or safety; that is for the motorsports. We need something a little more serious to attract us to a stand.”

Nevertheless, the best combination of hormones and display of benefits was the FireFit Championship taking place all three days in the Plaza where international fire-fighting teams competed using all sorts of resources and supplies. The stands were always full of visitors, so sponsors’ logos and taglines surrounding the arena were quite impactful because the audience was galvanised with emotion.

Lesson learned: Any evident display or in-your-face benefits attracts a buyer and sells to them. Benefits that jump out at any buyer are: saving time, saving money, saving lives, increasing compliance, and increased health. Stating benefits lets the buyer feel the product or service with an emotional stimulus, hence an emotional response. A sales person can sell, but a buyable product is one that includes an evident display of benefits, not only the features.

Engagement of potential buyersSecurity or safety trends have evolved more towards proactive systems; however, security and safety sales engineers have barely evolved from a 1960’s traditional sales model

approach. Sales engineers at Intersec 2011 were still product dumping, for the most part.

Suppliers, at a trade show just like in their marketplace, have options of engagement: they can set out a net

and drag you in, hand in hand, or they can use a display or invitation to attract you in. As the “sales police officer” I decided to freely enter a number of stands and pose as a buyer to test the promoters’ sales approach. I walked on smiling and stated I was a consultant for Security and Occupational H&S providers, and I wanted to know about their products, as “I give advice to my clients on buying decisions.” To my dismay, 98% of the salespeople took the bait and ran to the product pitch. I was dumped with products, specs and information. Yawn...I left like any smart buyer, “Don’t call me, I’ll call you,” and left the sales person wondering and depleted of energy.

So what about the other 2%? What did they do differently that left them full of energy and calculating their commissions by the time I left? These 2% of salespeople at Intersec 2011 were the Sales Superheroes, as they qualified me as a buyer, dodged my energetic interest for their product pitch (dump); and sat me down with fact finding questions.

Bingo!I pushed hard, and kept on baiting these salespeople with fast and furious buying signals for their products. Nevertheless, these Sales Superheroes abided by the consultative selling process and would not relent to my powers. They assessed my needs and my clients’ needs with a series of fact finding pre-determined questions, and in relation to the answers, pitched the products most suitable to my needs. The Sales Superheroes do not have to close deals with any tricky closing techniques. After a well-thought-out fact finding exercise followed by a product presentation that matches benefits to the buyers’ discovered

needs, the buyer will simply say “Wow, that makes sense!” Bingo!

Lesson learned: Salespeople who spend less energy inviting themselves to see buyers and dumping products on them, and more energy on planning a diagnostic or fact finding questionnaire that truly assesses the needs of the customer, will fill their pockets with commissions faster. The traditional sales model of introduction + chit chat + product dump + tricky close is as safe as believing that locking doors at a bank is secure these days. Today, the buyers are much smarter as they can access information about all their possibilities before they entertain the idea of you being their supplier. An effective salesperson is proactive in biting the tongue and finding out the prospects’ needs and wrapping the product offering around the customers’ responses.

In conclusion, the business transactions taking place during Intersec 2011 exemplify the approach and technique that your sales force is currently practicing, day to day, inclusive of all characters: smart buyers, product dumpers and Sales Superheroes. Intersec 2011 exhibitors, just like SMEs, have more time to arrange their product offering and displays and have a small window of opportunity to engage customers per visit.

So my round as the sales police made me file the following report with recommendations: 1) When trying to attract the customer use all modalities and display benefits, and 2) when engaging customers face to face, finding out their needs first will increase your closing ratio and top line.

Benefits sell, features inform. When I go to the car dealership, and the salesperson informs me that the car I like gets 60 miles per gallon, I am impressed. When he tells me the car gets 60 miles per gallon hence I will save 200 AED per month on my gasoline bill, I am impressed and I want to buy

Jennifer Baxavanis, Founder and Managing Partner, BAx Consulting


ABOUT:Jennifer Baxavanis is the founder and Managing Partner of a sales and training consultancy that specialises in sales-performance training and market development. She offers “free-agent” on-the-ground expertise, and help to identify and sell your products or services to new customers and new segments from a bird’s eye view. She also designs and delivers sales training. For more information see www.baxllc.com.

SAlES

SMAll ON Size, BiG ON SAleS AMBiTiON

PeRfORMANce <<<

The primary motivator for excellent sales professionals is money. I know that this sounds crude and against conventional wisdom, which purports that there are other motivators beyond money. It could be so in other functions but definitely not for the top sales performers

hoW can a Small buSineSS deVelop and run a World claSS SaleS organiSation? John lincoln,

Vice-preSident enterpriSe marketing, du, explainS hoW to driVe SaleS performance, regardleSS of

budget or buSineSS SiZe.

Most small businesses are required to have a robust sales function. I am writing this

article to share my insights based on observations of effective sales functions versus those that are inferior, inefficient and ineffective. These insights were derived during my various tenures in the US, UK, Japan, India, Malaysia and, of course, now in the UAE. The thoughts here

are applicable to businesses of any size irrespective of the budgets available to them.

So what are the elements that make a well-oiled sales machine? Sales performance is often defined as the product of: readiness x productivity x efficiency x effectiveness – and it is so true! Based on my experience, the primary factors that drive sales performance are: Marketing capability – Readiness Superior people – Readiness,

productivity, efficiency, effectiveness

Robust rewards, incentive schemes and structure – Productivity, effectiveness Metrics – Efficiency, productivity Pipeline management process –

Effectiveness Account management process –

Effectiveness Systems – Productivity, efficiency Sales management and leadership

team – Readiness, effectiveness

Marketing capabilityIt goes without saying that you are not going to sell much if you do not have the right product, that is not priced correctly and one that has no visibility in the market. You might have the best sales team, but if the totality of the proposition including the experience is weak, then any business can forget about sales. Therefore, it is essential that you have superior marketing capability as well whilst you are trying to develop your company’s sales performance.

Superior peopleAs in any business function, getting the right people on board is job number one. Hiring requires you to look out for particular personality traits that are imperative to succeed in sales. I have summarised them


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into ten traits that you should look out for. They are:1. Self confidence – When you hire sales folk look for people who believe that they can achieve anything.2. Ambition – You need folks with audacious ambitions. An ambitious person is often very competitive and will not like to lose. 3. People friendly – This is obvious. Anyone who is uncomfortable with strangers is definitely not cut for sales.4. Empathy – You need people who can connect and relate with their potential customers.5. Tough mindedness – You need to look out for folks who can accept rejection and often humiliation from their potential customers.6. Composure – A seemingly calm, cool, composed and collected sales person exudes confidence. 7. Control – Sales professionals need to be self disciplined to achieve. They need to exercise self control to manage and reach their targets.8. Endurance – The ability to endure long, tedious and often unpleasant negotiations internally and externally is a critical requirement for any good salesperson.9. Sense of urgency – A good sales professional would have a sense of urgency, as if there is no tomorrow. This is often exhibited as they do not want to take chances with any opportunity.10. Individualistic – Good sales professionals are primarily motivated by the rewards and nothing else.

Preaching about team work and collaboration will not go a long way with really good sales professionals. Don’t get me wrong here, I am all for team work and collaboration.

Robust rewards, incentive schemes and structureSustaining a high performance sales team requires a robust, dynamic and attractive reward and incentive structure. You might have the best products or even the best sales professionals in your team, but without an attractive incentive

scheme, the sales performance will not be sustainable.

The primary motivator for excellent sales professionals is money. I know that this sounds crude and against conventional wisdom, which purports that there are other motivators beyond money. It could be so in other functions but definitely not for the top sales performers. Applying the 80:20 rules requires you to reward your top performers well. If 70 or 80 percent of your incremental sales come from 20 or 30 percent of your sales team, then it behoves you to take care of the top sales performers beyond the traditional incentive structure.

MetricsAn essential requirement for any successful sales organisation is to have appropriate metrics that are fair, simple and measurable and one which adds to your bottom line. Some common metrics include a combination of acquisition, retention, up selling, cross selling and collection dimensions. The metrics should also include efficiency factors like number of customer visits, lead times, new accounts added and others.

Remember, what you cannot measure you cannot manage and if you cannot manage you have utterly failed in your responsibility.

Pipeline managementManaging the sales pipeline aka the sales funnel is an essential requirement to building a world class sales organisation.

Most B2B sales engagement goes through a classic cycle. First targets are identified from the prospect list, contacts are established, needs are assessed and a proposal is given to a potential customer. Then negotiations occur before a sale is concluded into a firm order.

As a small business, you need to know reliably the number of customers that you have, and the potential deal size in each stage of the sales cycle. You cannot let your sales folk assign arbitrary,

probabilities at each stage of the sales cycle. For example if no contact has been established with a key decision maker or influencer in a target organisation, assigning any probability beyond zero percent is foolhardy and will only inflate the size and value of your sales pipeline.

Assigning predetermined and correct probabilities will help your small business to identify risks to achieving the desired targets. Based on my experience, a sales professional having a quarterly target of say $100k will need at least 5X to 7X of their stated target in the “contact established” stage of his or her pipeline to meet the quarter end target goal.

Knowing the pipeline of their team is an essential responsibility for any sales manager. If he or she does not know accurately the deal value in their team’s pipeline, they have miserably failed the business and should be sacked.

Another important aspect of pipeline management is to ensure that your sales teams are dealing with companies that have the budget (B), the person/s that they are dealing with have the authority (A) and there is a real need (N). Assigning a predetermined BAN score to the pipeline management will ensure that you are not plagued by GIGO (Garbage In, Garbage Out).

As you can see, having a robust pipeline management framework is critical to identifying and knowing if your company is really going to make it or not. You cannot leave this important task to others. You have to have a structured discussion with your sales management team to determine the accuracy of the pipeline. I have seen many start-ups miserably failing from not having taken care of this important management function. The businesses that have failed were promised and shown a hefty and rich pipeline that was not validated and entirely only managed by the sales function.

Ensure that other functions including marketing, finance and

You cannot let your sales folk assign arbitrary probabilities at each stage of the sales cycle. For example if no contact has been established with a key decision maker or influencer in a target organisation, assigning any probability beyond zero percent is foolhardy and will only inflate the size and value of your sales pipeline


others have full visibility to your sales funnel. Otherwise you will not see the light at the end of the tunnel (no pun intended).

Account managementA structured account management process will have two primary components. They are the account planning and account review processes.

Account planningEvery good sales professional will have a structured account plan for all major accounts. The account plan should articulate the prospect’s business, its compelling rationale to consider your business, its end user needs and others. The sales professional should know if there has been a compelling event that might trigger an opportunity (like M&A, right sizing, cost reduction efforts, growth or lack of it, and so on).

The account plan will also clearly identify the opportunity size, possibilities for all products, and key competitor strengths and weaknesses. Other pertinent factors in an account plan should clearly identify all the key decision makers and influencers and the plans to engage with each of them. Knowing the account well will help any sales professional in your team to offer a

compelling value proposition to your potential customer.

Account reviewThere should be a review process at all hierarchies in the company. Of course the number of accounts that are reviewed at the highest levels will only be limited to the largest opportunities. Every sales manager, director or higher will need to conduct a review of the opportunities of their team. This will enable the management to identify potential weaknesses and identify areas where they could support the sales folks.

The account review of the largest opportunities should be cross functional as it should intend to get all the functions in the company engaged to achieve a win for the sales team. A cross functional account review of the largest opportunities will also help identify risks and inconsistencies in the pipeline. If reviewed frequently, often seemingly exuberant opportunity projections will be proven to be not as optimistic as projected.

SystemsYou have hired your sales teams to sell. Don’t overload them with bureaucratic paper work and back office work. Any sales team that spends less that 75% of its time out there selling is not doing what it was supposed to. Put in place systems if you can afford. If you cannot, get cheaper clerical support to do the back office functions. There is a high opportunity cost for any business that uses its sales teams to do back office work.

To maintain the integrity of your pipeline, it is worth your while to invest in some systems for the opportunity management of the sales pipeline. There are many affordable pay per user monthly solutions available in the market that even a one-person

sales team can afford. If you still cannot afford it, then use common spreadsheets.

Sales management and leadership teamsIt is often misunderstood that a good sales manager has to be good sales professional. A good sales person often does not necessarily make a good sales manager. A good manager might make a good sales person.

Beyond the traditional competencies required of a manager, the art of managing a sales team requires that the person leading the sales team to be inspiring, motivating and fair.

The sales management’s primary goal is to ensure that there are no risks to achieving the sales targets. It is the sales manager’s responsibility to ensure that the team under his care is able to and can deliver the targets given to them. The sales manager has a responsibility to the company to ensure that there are no risks to achieving the sales targets given to the team. He or she is often expected to be a fair arbiter of conflicts within their teams.Even if you have a fantastic sales team, having a bad manager will fail to inspire and often demotivate your top performers, resulting in many of your top sales performers leaving the company. Therefore it is essential that you pay special attention to the person that you hire to lead this very critical and important function.

The bottom line As you would have noted, the insights and observations that I have shared here are applicable to businesses of any size. Any small business can have a world class sales organisation by rigidly executing and applying the factors that I have shared with you here. If you are involved in B2B selling, then paying attention to and taking care of this very important function will determine whether your business will exist or not.

ABOUT:John Lincoln has over 20 years telecommunications experience in the USA, Japan, Europe, India, Dubai, Malaysia, Latin America and various other countries. He has extensive senior expertise in international telecommunications sales, marketing, business development and customer service delivery. John also has executive experience with general management, marketing, P&L, product development and revenue management responsibilities in both consumer and enterprise segments for both the fixed and mobile sectors. In addition John has an impressive operational and management portfolio of established proven expertise in incremental business value creation and management of large multi-cultural teams in Vodafone Global in the UK, Japan Telecom in Tokyo, AirTouch and Pacific Bell (now AT&T) in San Francisco and Tokyo, Airtel in Delhi and other telecom and technology companies. Additionally he has extensive large scale business development, M&A and operational project experience across the USA, Europe, Asia and Latin America. John has an MBA and MS in Telecommunications from the Golden Gate University in San Francisco, California, USA. you can find John’s personal blog at johnlincoln.blog.com. He can be contacted via: [email protected], Twitter: @lincolnjc.

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John Lincoln, Vice-President Enterprise Marketing, du


The cONveRSATiON iS AlReAdY ONliNe

tecom’S ThOuGhT InCuBATOr SErIES WaS launched in January With a WorkShop to

diScuSS online marketing and harneSS the poWer of online forumS haVing led the WorkShop diScuSSion, cpi’S Very oWn

magnuS nyStedt, group editor of conSumer technology, proVideS uS With an oVerVieW of

the core iSSueS diScuSSed.

The Cluetrain Manifesto told us that markets are conversations and that any business has to be

a part of the conversation or see its views ignored and influence over the market diminished.

I don’t think there is any doubt that today the conversation, in any market and for any business, is online and largely taking place with the different types of social networking tools and services available to us. Twitter and Facebook are just two examples of tools that have redefined how we talk to friends, plan our events, sell our products and offer support to customers.

Have you tried to search online for your company name or any of your brand names? Are you aware what a customer is tweeting right now about the use of your product? If not, you should be.

Matrix of toolsCompanies are catching up to this trend and many are entering into agreements concerning how a campaign or the company as a whole should conduct itself online in order to achieve the set objectives. And, although we have some great

examples of the use of social media in business right here in the UAE, there also seems to be a belief that social media in and of itself can be a sort of magical solution to all marketing problems, which obviously seems naïve at best.

It’s been my view for a long time that the best approach to using social media is to look at it as one part of a matrix of tools and approaches a company can take. For example, just doing one type of social media is not enough, a mix is preferred. Also, without having a solid base in high quality and user-focused content on a Web site, the social media campaigning is limited.

A tweet is much more powerful if it contains a link showing a user the way to an article on the Web, an article containing news, information, tutorial, tips and tricks, or whatever else is relevant for that tweet. That builds a context to the reader, a way for them to learn and explore further. Finally, let’s not ignore the traditional vehicles of print and events. They serve their purpose even in a world increasingly full of digital means of communication.

In what I’ve seen of such campaigns so far in the Middle East,

it seems that the focus is too narrow and as a result, companies are not reaching the possible potential. Twitter is a great way to create a buzz about something but not that good for a longer and in-depth discussion; Facebook is not as immediate as Twitter but establishes more of a community feel; and content on the Web forms the basis for it all to really work. Finding the right mix of media is the real trick in this equation.

Openness and transparency In 2005, Hugh MacLeod of Gapingvoid fame wrote about “the porous membrane” arguing that an organisation needs to be as open and transparent with the outside world (its market), as much as possible in order to successfully take part in the conversation that’s always happening. This conversation consists of an internal part that happens inside the organisation and an external part that takes place between customers in the market.

Six years later I think MacLeod’s “membrane” idea can serve as a model for how many more companies in the Middle East should embrace the latest technology to keep the conversation going, internally as well as externally. Don’t be fooled though. It won’t be easy but if you don’t get with the program, so to speak, your future will not be as successful as it could be.

ABOUT:Magnus Nystedt is the Group Editor of Consumer Technology at Corporate Publishing International (CPI), based in Dubai. A background in teaching and technology journalism, as well as a unique combination of skills and interests, make him a trustworthy source for audiences around the region. Magnus led the first session on ‘Marketing to Online Communities’, under TECOM Investments’ Media Cluster ‘The Thought Incubator’ series launched to provide industry-specific information and innovative concepts to industry stakeholders.

MARkEtIng

>>> ONliNe


Selecting the correct market can lead to immediate success while an incorrect

market can not only lead to substantial losses but also long-term damage to the company’s operations. A poorly thought through entry into a foreign market can have negative effects to the company’s future plans as well as morale. Therefore, appropriate selection is an important challenge for the exporter and cannot be

tRAdE

SelecTiNG exPORT MARKeT <<<

left simply to subjective decision making.

In order to make the right decision, an exporter needs to go beyond personal preferences and intuition. The process of market selection requires the exporter to undergo three essential steps namely: data collection, whereby the most recent information on potential export markets is obtained; second, the exporter needs to make appropriate comparisons between the different

markets; third, an exporter needs to appreciate that he cannot enter every single market at the same time and needs to prioritise markets based on current resources and market potential.

The first step towards identifying a foreign market is to compile a list of potential countries. There is no golden rule; nevertheless, one can use a number of different methods to compile the list. The main methods used by exporters tend to be the following:

eeNY, MeeNY, MiNY, MOeit’S all about choiceS. once Smes haVe decided to export, their maJor problem iS to identify an appropriate foreign market for their goodS or SerViceS, SayS dr. aShraf mahate, head of export market intelligence at dubai exportS, and Vice chair of the economic policy committee, dubai economic department.


Simply looking at general macroeconomic data will not ensure your success. You also need to look at the level of tariffs, market openness, distribution infrastructure and so on, which all affect profitability


tRAdE

Enter markets which are “easy” – As a first time exporter, it is better to learn in an easy market and, over time, more difficult markets can be considered.

Proximity of the market – Markets which are closer to home and are easier to service in terms of logistics, follow up, payments, and so on, compared to markets which are further afield.

Similarities in language – Places which use the same language be it Arabic or English are more convenient than one where the language is different. This is because communication with the importer, documentation, product labelling, marketing, and so on, become simpler when the importer and exporter share the same language.

Common business culture – Similarities in business culture between the importer and exporter, be it the manner in which business is conducted or the payment terms that are offered, make the process of exporting much easier.

Logistics – At the end of the day exporters are looking to ship their products to the foreign market in order to receive payment. Therefore, it is better for an exporter to target markets with established logistical links from the home country rather than where the transport routes are yet to be established.

Past or current knowledge – It is easier for an exporter to enter a market in which it has past or current knowledge. Even if the knowledge is superficial it is better than not having any in the first place. Moreover, if the knowledge is firsthand experience of the country, it adds considerable weight to the selection of the market.

Overall risk – Of course all exporters want to maximise profit, however, they need to take into consideration the level of risk entailed in a particular market. At the end of the day they have to make an assessment of the relative risks of exporting to a particular country in terms of the potential

revenue that can be generated against the risks that it faces.

Over extending exporter resources - All exporters have finite resources and this may limit the selection of a particular market in that certain countries may overstretch the company compared to others. For example, a market with an established legal and business framework will not utilise as much of a company’s resources as, say, an undeveloped market. On the other hand, the distance may mean that the company’s staff is travelling more than is optimal.

A common mistake that exporters tend to make is they do not examine all the necessary data for their list of potential markets. Simply looking at general macroeconomic data will not ensure your success. You also need to look at the level of tariffs, market openness, distribution infrastructure and so on, which all affect profitability. Moreover, it is important to remember that foreign products compete with domestically produced goods and hence the exporter will need to undertake some level of competitor analysis.

Some of the types of data that an exporter needs to identify are listed below:

Geographic and physical environment• Total population, growth and density trends • Distribution of the population by targeted age groups• Distribution of population by urban, suburban, and rural areas • Climate and weather variations. How will these affect the product or service offered?• Shipping distances from the point of export• Age and quality of transportation and telecommunications infrastructure• Adequacy of shipping, packaging, unloading and other local distribution networks

Political environment • Whether the system of government is conducive to conducting business • To what extent the government

is involved in private business transactions• Government’s attitude to importing• Whether the political system is stable• Government’s attitude towards the dismantling of quotas, tariffs, and other trade barriers

Economic environment • Whether the country is committed to fostering higher levels of imports and exports • Predicted economic growth levels• Gross national product and balance-of-payments situation• Percentage share of imports and exports in the overall economy• The country’s import to export ratio• Rate of inflation, and foreign currency or exchange regulations• Per capita income of the target country. Are income levels increasing?

Technological environment • High expectations of consumers • System complexity • Increased productivity • Need to spend on R&D • Demand for capital

Social and cultural environment • Percentage of discretionary income spent on consumer goods • Percentage of people who are literate. What is the average educational level achieved?• Percentage of the population identified as middle class

Legal• To what extent the target market is similar to the home market• Whether the product or service needs translation or adaptation • Summarise the legal aspects of distributorships for each country• Documentary requirements and the technical or environmental import regulations covering the product • Whether the market is closed to foreigners, despite the appearance of a free and open market

A pilot test can be carried out through participating in international exhibitions whereby an exporter can obtain immediate feedback on their product. Moreover, use Internet based marketing and distribution as a test mechanism


• What intellectual property protection laws would affect the product or service?• Where a commercial dispute arises, does the judicial system offer a fair and unbiased review? • Are tax laws fair to foreign investors? What is the rate of tax on repatriated profits?

Product potential • Whether there is an identified need for the product in the target market. • Percentage of the product or service produced in the target market and what percentage is imported• Is the product or service understood and accepted by the target market?• Extent of general level of acceptance for imported products• How many foreign competitors are in the market now and from which regions? • Your country’s share of products available in the market• Who are the major competitors? • What are the key brands in the market?• What are the niche market areas? • What are the marketing and distribution channels?• Whether established agents exist• Likelihood of consumers moving to the exporter’s product/service

Once the data has been obtained the exporter needs to undertake an extensive analysis of each potential market. One main tool an exporter can use to understand and evaluate a potential market is the SWOT analysis which examines the following:

Strengths – these are aspects that the exporter can build on to penetrate into the foreign market.

Weaknesses – these tend to be the limitations however they need not hinder the exporter from entering the market but

are simply areas that need to be managed or covered.

Opportunities – these are aspects that an exporter can capitalise on for example a Free Trade Agreement allows an exporter to exploit the lack of tariffs and so on.

Threats – these are the dangers of entering a particular market and the exporter needs to be aware of them. Some of the threats may be outside the control of the exporter while others can be managed. In the case of the former, political risk is outside the control of a country but exchange rate volatility can be managed through hedging.

The SWOT analysis is a detailed examination of the past behaviour of a particular market and country. As such, the analysis is objective in nature and uses the data referred above. A SWOT analysis is extremely effective in allowing an exporter to do the following:

Assess the market potential for the product or service concerned

Determine the method of entry into the foreign market that whether the exporter should set up an independent foreign presence, use a distributor, agent, and so on

Assess areas where the exporter can create a competitive advantage in foreign markets

Shore up areas of weakness Develop a contingency or back up

plans for problem areas Develop an export plan

However, the real test of any product or service is its acceptance in the foreign market, which can only be judged through the level of sales. Therefore, an exporter may wish to “dip their toes” in the foreign market through a pilot test that does not need the expensive process of establishing a foreign presence or signing with a local distributor or agent. A pilot test can be carried out through participating in international exhibitions or fairs whereby an exporter can obtain immediate feedback on their product. Moreover, an exporter can use Internet based marketing and distribution as a test mechanism. A pilot test will allow the exporter to fine tune the product to meet foreign tastes and preferences as well as to determine an appropriate marketing and pricing strategy.

tRAdE

ABOUT:

Dr. Ashraf Mahate is the Head of Export Market Intelligence at Dubai Exports (formerly known as the Dubai Export Development Corporation), which is an agency of the Dubai Economic Department. Dr. Mahate is also the Vice Chair of the Economic Policy Committee with the Dubai Economic Department. He has written a number of journal articles, chapters in books and edited books in the areas of economics, finance and banking. He has also presented papers at major international conferences. Dr. Mahate has provided extensive consultancy services to various organisations in the areas of banking, economics and finance. He has been a director of a number of companies including a venture capital company and a private equity fund.

Dr. Mahate received his doctorate from Cass City University Business School in London (UK) which was ranked by the Financial Times newspaper as the 12th best university in the world for finance. He read Economics at University College London, followed by a Masters in International Economics and Banking at the University of Wales in Cardiff. Dr. Mahate is a professional educator and received his training at the Institute of Education (University of London). He is a member of the Chartered Institute of Managers (UK) and a Member of the Institute of Commercial Management (UK). He is also a member of the Association of Certified Anti-Money Laundering Specialists (ACAMS).

Dr. Ashraf Mahate, Head of Export Market Intelligence at Dubai Exports (formerly known as the Dubai Export Development Corporation), an agency of the Dubai Economic Department; and Vice Chair of the Economic Policy Committee, Dubai Economic Department

34428-GTW Barter-Batch 01-SME Advisor ME.pdf 1 1/31/11 12:03 PM

BUSInESS gRowtH

exPlOiT YOuR

AGiliTY moSt Small buSineSS operatorS haVe freedom to goVern their oWn buSineSS future Without

being bound to centraliSed head-office regulationS. the layerS of approVal and the limitationS of detailed policieS are often non-exiStent, offering a flexible and

fluid operating enVironment. but are you really maximiSing

that freedom to achieVe buSineSS goalS, aSkS debbie nicol, principal

conSultant and oWner of buSineSS en motion.

Setting the scenePicture this Dubai-based business scenario. Two retail outlets, displaying similar yet different qualities – the same

products under different brand names, both provide the similar seating arrangements for customer enjoyment and both very much align to the coffee lounge concept. However, one main observation differentiates both – one offers free internet with a purchase and one does not.

The former is always alive with custom, lounges and tables overflowing, customers connecting with tasks, people and life in general. The average length of stay is approximately two and a half hours, and the average customer makes at least two purchases within one visit. The latter rarely displays hype and energy, with less people sitting and purchasing for a smaller average of 30 minutes, possibly conversing with a friend and then shortly thereafter leaving.

Hands down, the former outlet would be ahead

An SME has the choice to define parameters, laying foundations for aligned actions. Within these parameters, a small business has the choice of when, where and how to add flexibility but ensure that the addition, inclusion, repackaging or change will continue to support your vision of what you wish your business to be

MAxiMiSiNG fReedOM <<<



BUSInESS gRowtH

ABOUT:

Debbie Nicol, aka “the enablist”, principal consultant and owner of ‘business en motion’ assists organisations and leaders to move ahead through change. She works with organisational development, change management, corporate cultures and learning strategies. For more information visit www.businessenmotion.com

of its competitor by approximately 75% revenues, and most likely bearing minimal additional costs from offering internet services.

With revenue being integral to business, where is the logic of no Internet in the second business? More so, how could the leaders of the other business not be seeing and acting? After all, these two outlets are directly opposite each other. Amongst other possible reasons, could it be that the second outlet’s brand is that of larger organisation, governed by a central policy-maker which is out of touch with local needs?

A small business operator often has such freedom to govern their own future, clarify priorities and act accordingly, without being bound to centralised and imposed head-office regulations. So how are you applying that freedom to achieve business goals?

Be clear on what it is you want your business to beDo you wish to be a coffee shop operator or a meeting hub for connected people? Perhaps you wish to be a designer of jewelry or an enhancer of the female lifestyle, a photographer who presents photos or one who recreates an experience or memory, or even a financial planner or a trusted advisor in financial security?

Are you clear on what success will look like and feel like for the connected people, enhanced female or trusted advisor?

Whatever it is, an SME has the choice to define parameters accordingly, laying foundations for aligned actions. Within these parameters, a small operator has the choice of when, where and how to add flexibility.

Ensure what you do is totally aligned with what you wish the business to be Add that Internet, include a new service, re-package the product, change the display, and add

a new marketing campaign, with little or no restriction but ensure the addition, inclusion; repackaging or change will continue to support your vision of what you wish your business to be. How great is it that your actions are only limited by your own decision and not a set of policies and procedures or structured approval processes.

Make the choice to measure and respond – without limitationRemember to observe from every angle – perhaps your service may be perceived differently by customers. But remember footfall will provide strong indications.

When footfall reduces, you have the freedom to respond accordingly without limitation – quickly or slowly, fully or partially, with one individual or another. There really is no right or wrong decision to take here, but rather only different consequences of your choices.

When footfall reduces, you have the freedom to respond accordingly without limitation – quickly or slowly, fully or partially, with one individual or another. There really is no right or wrong decision to take here, but rather only different consequences of your choices

Inception

• In my business, where do I have freedom and flexibility that would be governed by policies and procedures in a centralised corporate environment?• How am I taking the best possible advantage of that freedom or flexibility?• Reflect on a situation when you have not maximised that flexibility. One example may be when you had the ability to re-align an action, but took too much time to do so, and lost the opportunity. What have you learnt from that?• Why are you in business for yourself? How are you integrating that into your everyday operations?

CoRPoRAtE SPoRt

properly? So I kept on playing with even more dedication. I can honestly say that I put my all heart and soul in it – which involved playing two to three times a week. And still on my working time of course. So much so that I started playing single digit and still…no deal closure on the horizon.

That is when I started to realise that maybe, maybe...maybe this all “it is ok to play golf during the week because it is all part of the job, son” thing was some institutional excuse to get away from work. As a matter of fact, I got the proof of that sometime later when I tested my chairman (the same one I was playing golf with) and told him I was going to close a deal next Monday while go-karting. I leave it to your imagination to guess what his reaction was.

And what if all that was simply about taking the time. Taking the time without being afraid to be judged. Taking the time to be at long last relaxed, dropping the guard without exposing your flank, enjoying nice company, breathing some fresh air. Simply taking the time to live. Doing so does not make you a bad person.

So the next time you find yourself on a golf course on a Wednesday morning, telling your subordinates that you are on your way to close a deal, please show the same resolve as when you are about to hit that 2-iron – admit that you are going out to play golf because you need some time to yourself. Simply because you deserve it and you earned that moment. And maybe also because you need some fun to release work pressure. After all, even Julius Cesar was reminded every morning that he was just a man. I guess what is right for Cesar must be right for us too.

As for my reference to urban myths in the title…not everything in life needs to have a purpose. I thought it sounded nice and catchy. Just for the fun of it.

The ART Of BeiNG A cRediBle execuTive: A STORY ABOuT

GOlf, uRBAN MYThS ANd GeNeRAllY ANSWeRiNG The

cAll Of NATuRe...I started playing golf some years ago because I had been told that, as a young executive, I was

expected to play golf. Actually, I had not been told that, to be fair. I had been led to think that. The corporate world is very often finding subtle ways to give you thoughts you didn’t have in the first place (but that is another story for another time).

But playing golf during my working hours was all right because I was not expected to play for the fun of it, of course! Fun had nothing to do with playing golf. No, no, son! Being an executive is not about having a good

time anyway, so I thought that was pretty convenient. I had even been told (backed up by some obscure American survey) that 60% of the deals made in the corporate world were closed on golf courses. So it was a win-win, right? It was all very legitimate in fact.

I was somehow disappointed after my first round. Not because I did not close any deal. That was in fact the last thing that was on my mind. I was more concerned about the dozen golf balls I had lost in the wrongly placed lakes and Jurassic sized rough. On the other hand, I must admit that I was slicing and hooking with great enthusiasm indeed.

But I kept on playing. And the less golf balls I

was losing, the more focussed I could be in between my shots. I was still witnessing no deal closure though. Maybe I wasn’t playing well enough? Maybe those 60% deals being made around the world were done once

you could use that 2-iron-serving-no-

purpose-other-than-to-embarrass-you tool

ABOUT:Arnaud Palu is the Chief Operating Officer of MAF Leisure, which has operations all over the Middle East, from the iconic Ski Dubai to water parks and world recognized FECs. He is establishing the business as the Leisure arm for the group, developing new concepts, getting into new markets and strengthening the performance.

Prior to joining Majid Al Futtaim, Arnaud worked for 10 years in Disney across all operational functions. He assisted in restructuring problematic departments and rose to Director of one of the entities before leaving to join the Millennium Dome as Director of Operations in London in 2000. Thereafter he continued his pursuit to change and streamline Six Flags Holland as consultant. In 2001, he entered the property business in the United Kingdom with x-Leisure Ltd and its leisure anchor: SNO!zone. In 2008, he was taken on board as Chief Executive Officer to create a leisure brand of hotels & theme parks in Dubailand for the well established US animation company DreamWorks, with destinations in Dubai and India.

GOlf <<<


CoRPoRAtE SPoRt

>>> heRculeS TROPhY

@SMEadvisorME: All set for our day of corporate sport @herculesuae. Reach office at 6 am for the first time ever.

@SMEadvisorME: Pull into gas station, buy horrible coffee. That sure woke us up! Theory: all offices have bad coffee for this same reason.

@zoyaindubai (to @SMEadvisorME): We love our coffee machine too much to be separated, but you could come by here and have a cup.

@SMEadvisorME (to @zoyaindubai): You sure about inviting us? Journalists

have a knack for showing up for free food and coffee.

@SMEadvisorME: Just so u know, dark-aged editors texting tweets to iPad-ed tech team while we are @herculesuae. Thanks @cnystedt, @DaddyBird.

@SMEadvisorME: Dance floor and DJ before 8 am @herculesuae. What a way to start the day. Corporate disco dancing. Go FedEx team!

@SMEadvisorME: All captains raced in with team flags. We are suddenly suffering from short flagpole complex.

beach tennis! Our Hercules heroes!

@SMEadvisorME: Fun Farmville. Drove truck and threw fences and inflatable animals in. @Mjbyrne7 nearly killed @ketakibanga but we live to tweet another day.

@SMEadvisorME: Prelim scores up. “Don’t lose heart if you’re among the top 78.” Yeah, we are 75!

@SecurityadvsrME (to @SMEadvisorME): The last ones will be the first...

@SMEadvisorME: Water challenge. @Jaminwatts saves drowning competitor. Or so he’d like to tweet.

@SMEadvisorME: @ketakibanga nails golf challenge. Hole in one! Top scorer on the team

@SMEadvisorME: @ketakibanga, @BuildGreenME just changed a real Formula 1 car’s tyres. Way cooler than proofing pages! Changing careers.

@SMEadvisorME: Funniest moment. When @ketakibanga hit the highest scoring golf shot, @mjbyrne7 yelled “YES. That’s my boss!”

@SMEadvisorME: Results announced. WE WON! Nothing. But what a day! Over and out and thanks @daddybird for being the voice of unreason today.

@payalkeswani (to @SMEadvisorME): Great energy guys! We saw you in the morning doing the @Herculesuae jig in your funky neon outfits!

@SMEadvisorME: Just got a call from office. I think they forgot where we were.

@SMEadvisorME: Shuua Capital has a team member who looks like The Rock. We are starting to wish we had worked out a bit more.

@SMEadvisorME: @froilan4th, @oul_ram kicked some serious corporate backside at

We tweet about more than just our corporate exploits. Connect with us on social media to chat about business, articles, SME community updates, and more.

Twitter: www.twitter.com/smeadvisorme, @SMEadvisorMEFacebook: www.facebook.com/SMEAdvisorLinkedIn group: SME Advisor

For more information on the Hercules Trophy, visit www.hercules-trophy.ae.


team cpi participated in the herculeS trophy uae thiS year. it WaS a Super charged, inter-company Sporting team day. Sme adViSor tWeeted liVe from the battleground, Which might explain Why

We Were too buSy to Win anything. in any caSe, We’ll let our tWeetS Speak for themSelVeS. Some of them may haVe been edited to be more Suitable for print, and to make Sure We keep our JobS.

(

We ARe The chAMPiONS (iN AN AlTeRNATe uNiveRSe)


SIgn oFF

TeAM BuildiNG <<<

on the 10th of february, doZenS of teamS from companieS throughout the uae deScended on the SeVenS complex for the herculeS trophy. inSpired, guillaume mariole from ignite fitneSS & WellneSS diScuSSeS team building through corporate Sport and hoW your company could benefit from theSe eVentS.

handling stress-levels amongst employees. Stress-related illness has substantial negative effects on productivity as well as being a huge cause of absenteeism. By elimination stress through sport, you are investing in the wellbeing of your team members.

Ultimately, team building events improve the ability of each of your team members to work together and in turn this improves the productivity and increases the profitability of your business.

At Ignite fitness & wellness, we recognise the importance of team building and have a specific corporate division to support UAE-based companies with this and more. Whether your company wants a one-off event, a comprehensive corporate wellness programme or simply the tools to make some positive changes in house, we can help. Please get in touch and let us help you secure the future of your business.

behind this success. This doesn’t happen by accident, rather it happens by design; the design of well thought out effective team building activities to enable each individual to effectively work towards common goals.

Breaking down barriers By investing in team building

activities out of the office, the benefits to participants are far more extensive than they would be if held in the office. Held externally, political and personal benefits are broken down, distractions are eliminated and more fun is had.

Leadership skills Team building improves

leadership, moral skills and enhances communications, decision-making and self-confidence.

Healthy living By focusing on team building

via sports, companies are educating the workforce on the importance of incorporating health, fitness and wellness into their lives. Promoting healthy living at grass-roots level is vital in this region due to the ever-increasing issues with obesity levels and diabetes.

Stress reduction Team building through sport

has far reaching benefits to

Expand your circle Team building

activities are not simply for the

benefit of internal teams and departments. They are also about building and strengthening relationships with customers and suppliers through the camaraderie of sport. In today’s cut throat world of competition, strong relationships and continued loyalty are more important than ever.

Self development Team building activities also

give great benefit to the self-development of the individual. Employees are empowered by determining their own strengths and weaknesses, which in turn mean they can best determine what role they should adopt within the company, what they can contribute most to the company and in what direction their future lies.

Morale boost In our post-financial crisis

world, many businesses in the region are suffering from low morale. Staffs have been laid off, pay freezes implemented, targets are increasingly difficult to reach and competition is fierce. Effective team building in response is the ideal way to reinforce employee engagement, strengthen internal corporate

culture and re-instil pride for your role and place within the company.

Building trust Team building via corporate

games are specifically designed to suit every age and ability within the company. They are designed to bring out the best in all participants and help to include rather than exclude. This enables high levels of trust to be built within teams, which is a sure-fire way to improve the way teams, work together.

Competitive spirit Team building events nurture

a healthy dose of competitive spirit whilst remaining fair and on a level playing field. Activities require teams to think a task through and act and perform as a team in a fun and action packed manner.

Relationships Team building events are flexible enough for companies to focus on the areas they wish be they strengthening existing teams, breaking down the hierarchy or forging better inter-departmental ties.Common goals

If you look at the ompanies around you with a strong corporate culture and excellent profits, you will always find a hard-working and dedicated team

ABOUT:Guillaume Mariole is the Managing Director of Ignite Fitness & Wellness. For more information visit www.ignite-wellness.com, call +971 (0) 4 305 0844 or email [email protected].

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11944_Du_iPhone_SME_Advisor_FP_270x207mm.ai 1/17/11 2:22:48 PM

sme advisor middle east - good advice for better business

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