Diva Modelling And Events headquarters in Dubai

So, what’s a girl to do after her fulfilling her dreams as a fashion model? Unless you’re Heidi Klum, it may not be the most realistic idea to get back on the runway after settling down and having a family. Starting your own modelling agency would be fantastic, but that’s easier said than done.  Nicole Rodrigues has done just that in Dubai with Diva Modelling And Events, an agency that provides models, promotional staff, hostesses and entertainers among other services.  As Owner and Managing Director, she has grown Diva into become a top modelling and events agency in the region, working with a network of 15,000 professionals. She also manages Diva Holdings Company, a real estate investment fund that is today worth almost AED 100 million.

It all started with a holiday in 2003 that never seemed to end. Nicole, a former haute couture fashion model, visited Dubai with her husband and six-month old infant and instantly fell in love with the place. At that time, Dubai was still in the early stages of its real estate boom.  They relocated when the fashion industry in the Emirate was not very developed and Rodrigues saw it as the perfect time to fill that void and start a modelling agency that could set standards.

“Initially my stride was to create an institution that would protect rights of models, promoters and clients so there would be more clarity as to what was being done, how it was being done, where it was being done and what was not being done,”says Nicoe.  Part of Diva’s creed is reliability, long-term commitment and professionalism: three key qualities that she says are not always reflected from her competitors.

Walking through Diva’s headquarters, you forget for a minute that you are in Dubai. Instead of flashy and colourful, you are surrounded by an all-white, chic Manhattan-like interior decor. Multi-cultural (and fashion forward) staff are busy recruiting talent and planning the next big events and campaigns. Rodrigues can be found in the middle of the commotion, as she makes final decisions on the pressing issues of the day.

Over the past few years Diva has become a key player in high-profile events, including Dubai Fashion Week, Dubai Motor Show, Dubai Air Show and GITEX,  among others. Events is an area where the company shines, as Diva is fully capable of using its own resources to put together major events in the region. It’s this unique blend of services that has enabled the company to boost its brand and visibility. Companies like Unilever, Valentino, Missoni and Philip Morris have all partnered with Diva when building their brands in the region. Last year, Diva Modelling And Events was awarded the People’s Choice Award as part of the SME Advisor Stars Of Business Awards. It was also recognised as member of the Dubai SME 100 rankings and the Arabia 500.

Nicole credits the company’s rapid growth to a number of factors. She is grateful to have been able to launch in Dubai, which she says has a great eco-system for growth for SMEs and entrepreneurs. However, her exposure to international markets as well as financial expertise in the family has also helped her become a better leader. “My philosophy is that one must be completely rounded in business; you can’t just be great at finance or great at strategy and marketing;  you have to have all of it together to create a perfect combination.”

Her biggest pet-peeve is procrastination. When asked about her long-term goals, she adamantly says that she only thinks in the short and medium term.  “If there’s something I think I want to do in five years it’s on my agenda today. Procrastination, I fear,  is what restricts a lot of growth in a lot of companies. Just do it. Stop thinking. People spend too much time saying ‘should I do it?’ We figure out the way as we go along.”

For now, Nicole will be working to meet the goals she hopes to accomplish by the end of the year – including expansion into other GCC markets with the launch of Diva Bahrain, Diva Qatar and Diva Kuwait, as well as plans to expand into Turkey, India and Pakistan. The company has already extended its brand to in spas, beauty salons, laundry services and there are plans in the pipeline to launch a line of body shapers.

A major challenge that SMEs face in the region is, of course, access to financing and loans. Rodrigues advises entrepreneurs to look beyond just financing to raise capital. She says there’s a lot of accessible money in the local market if you have the right business concept, vision and plan in place. It’s just a matter of networking and pitching your plan to the right people. She was fortunate enough to have received a small sum of money from an angel investor when she was starting out, however, her warning to young entrepreneurs is to be wary of who they choose as partners and mentors. She sees great potential in them, but at the same time notices a lack of understanding among them on topics like finance, private equity, wealth management and venture capital.

“You don’t need to be a genius at one thing but more of jack of all trades today, a great rounded personality. You can’t be able to get your strategy, marketing, motivation; you need to round yourself completely,” she says. That’s exactly why she started NM investments, a platform available for new business plans and people who want to raise capital. The firm also provides financial advisory services to talent who are not very finance savvy and want to manage their money responsibly.

Another important lesson Nicole says every entrepreneur needs to learn, is how to get outside of your comfort zone to understand

Nicole Rodrigues, Founder and Managing Director, Diva Modelling And Events

your clients and customers. Dubai, with its unique population that comes from a variety of ethnic and cultural backgrounds, presents both major opportunities and challenges to SMEs who operate there. Not all businesses, she says, are able to understand their needs. So many startups fail relatively quickly, partly due to their lack of understanding of how international markets work, and how exactly to implement them locally.

Despite having achieved great success in such a short amount of time, Rodrigues stressed that there is always need for improvement, both personally and professionally. She is currently enrolled in the Owner/President Management programme at Harvard Business School, and aims to complete it in 2013. “Life is constant growth. I’m at 39 and I’m going to school. I do it to better qualify myself. It opens up all these windows, we get so lethargic in our luxurious lifestyles and we stop driving ourselves and I think it’s important to always have focus.”

The Dubai SME 100 initiative was launched by His Highness Sheikh Ahmad Bin Saeed Al Maktoum on 14^th March 2011. The initiative, aimed to identify outstanding SME performance and potential, forms a critical component of the DubaiSME five-year plan approved by the Economic Sector Committee in 2009.

“By ranking and recognising the top SMEs, we are opening several fronts. These top 100 SMEs have persevered to achieve major triumphs for their business models, innovations and brands over the years. They have become successful in their own right. Dubai SME’s role is to create a platform for evaluating these top SMEs. Investors, in particular will be interested to know who these promising SMEs are, and perhaps invest in them. Through Dubai SME 100, we hope to create an indirect pipeline of SMEs for a secondary SME listing market in Dubai. This will help SMEs gain additional external capital, new talents, markets and brand enhancements,” said Abdul Baset Al Janahi, CEO of Dubai SME, during the ceremony announcing the rankings.

The Dubai SME 100 ranking will act as a platform and catalyst to identify promising SMEs – to groom them to become bigger, better and sustainable enterprises; eventually graduating them to large globally-oriented companies. At its core, the ranking is aimed at:

- Celebrating Dubai’s top performing SMEs

- Creating greater awareness of the importance of SME development

- Creating a national motivational psyche in the nation’s social and business community

- Encouraging SME role models to share best practices.

- Marketing the capabilities of Dubai’s SME’s to regional and global investors

- Providing opportunities for SMEs  to raise capital

- Creating a base of SMEs for a potential secondary listing of SMEs (IPO) that can attract equity capital for growth.

- Providing development path for SMEs to graduate

- Creating a culture of transparency and corporate governance.

Unlike other rankings which are based mainly or purely on financial indicators, the Dubai SME 100 ranking places a balanced emphasis on financial and non-financial dimensions that affect enterprise performance and development. The non-financial dimensions cover innovation, international orientation, human capital development and corporate excellence.  The ranking will also serve as a tool for helping SMEs identify capability gaps for improvement. This is the real long-term value that the rankings will bring to the table for SMEs.add of Dubai SME 100.

The basic criterion is that the applicant must be an SME based on the official definition of Dubai’s SMEs. In addition, it must have audited financial statements for at least three years, and be an independent entity registered in Dubai (under DED or the Free Zones).  SMEs will be ranked only after they have submitted all relevant information voluntarily. Hence the ranking does not necessarily represent Dubai’s top SMEs, but SMEs that have undergone the Dubai SME evaluation process for ranking.

Key facts and figures

1. A total of 1092 SMEs registered for the initiative, of which 196 SMEs applied to move on to stage two of the application and evaluation process. From these 196 serious applicants, the top 100 were selected and ranked based on complete submissions of financial statements, supplemented by either a management interview or site visit to ascertain facts and evaluate the merits of each case.

2. Of the 100 ranked SMEs, based on Dubai’s official SME definition, 15 % are classified as micro SMEs, 52% as small SMEs and 33% as medium-sized SMEs.

3. In terms of sectors, 62% are from the services, 13% are from the manufacturing and 25% belong to the trading sector.

4. The combined turnover of the top 100 SMEs based on their latest financial records is estimated at AED 2.3 billion. Their estimate total assets are worth AED 1.4 billion and the combined profit is AED 220 million.

Name: Dimensions Healthcare

Dubai SME ranking: #1

Sector: Health care

Dimensions Healthcare swept into the top spot and after speaking to its Managing Director, Dr. Omar Ghosheh, it’s clear to see why. Established in 2008, it has since become a leading healthcare informatics and consulting firm in the region, assisting both private and public sectors with transitioning and streamlining services and healthcare systems.

More specifically, it also deals with medical coding and revenue cycle management, drug databases and decision support systems, pharmacy benefit management, and eClaim solutions.

Since its inception, Dimensions Healthcare has blended healthcare information, technology and experience to build, implement and train to provide evidence-based solutions for healthcare providers. At present they serve 2,100 healthcare entities and 15,000 clinics across the UAE and Oman, with plans for expansion into the KSA market in the near future.

“Through our partnership with MedImpact International we are striving to implement the American system, whereby all systems will be streamlined; from solutions to enhance clinic management tools to solutions for pharmacies to manage their inventory and so on,” said Dr. Ghosheh.

So what feedback did Dubai SME give to Dimension Healthcare after the results were announced? “Their feedback report is very thorough. As far as outlining where our strengths lay, they pinpointed our innovative strategies over the past four years – we have consistently strived to better our performance and services year-on-year and this was highlighted with both our financial records and our in-house management style,” he says.

Dimensions Healthcare have also been instrumental with the implementation of the UAE government’s introduction of eclaimlink.com, whereby health claims can be lodged electronically. It is part of the UAE’s wider green initiative of switching most of paper driven processes across to electronic and Dimensions Healthcare have dealt with the full process systems and processes involved. “There is a calendar in place for the phase out of paper and it is hoped by January 2013 the remainder of government departments will have followed suit,” said Dr. Ghosheh.

So what does he believe has been one of the major contributors to the companies accelerated growth and success? “I know this is rather cliché but its human capital. We may not have a huge number of workers but it’s a firm belief in quality over quantity – we promote and recruit young talent and nurture that talent and as more projects evolve then more staff is brought on board,” he says.

Indeed, from talking to Dr. Ghosheh and from a glance at the staff in and around the office, there is a young vibrant feel to this company. He notes that with a staff of less than 50 in Dubai, most of this number are within the mid-to-late twenties category. “It’s the efficiency and innovative approach of this young staff base that drives our success with any project we undertake,” says Dr. Ghosheh.

So how is it exactly that Dimensions Healthcare can react so well to market demand, especially with the health sector presently experiencing a boom in the region? Dr. Ghosheh explains that they work very closely with policy makers and committees and in many instances offer close coordination through recommendations.

“We are continuously striving not only to complete current projects for the private sector, but also to assist with both the best practice policy implementation, and the practical follow-through, where streamlining the healthcare sector is concerned. To be involved with these policy makers and committees allows Dimensions Healthcare to serve the public interests in healthcare as best as possible,” he says.

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Name: Intercoil International

Dubai SME ranking: #4

Sector: Manufacturing

Intercoil International was incorporated in 1974 and today the company’s core business is the production and distribution of (wholesale, retail and export) of PU foam, furniture and orthopaedic sleep products under two brands; Intercoil and Therapedic. Intercoil presently exports to all the countries in the GCC, North Africa and South Asia.

At present Intercoil has over 220 employees and 20 factory outlets across the GCC. Their products are distributed and sold through retailers. Accreditations include ISO 9001 certified by KPMG in 2000 and it is a member of the International Sleep Products Association (ISPA).

As well at the announcement of its top ten placing in the Dubai SME 100 ranking, Intercoil also achieved the Dubai Quality Appreciation Programme instituted by the Government of Dubai and Dubai Department of Economic Development (DED). Held under the patronage of H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, the certificates were handed over at the Business Excellence Awards 2012 ceremony held April 4^th at Dubai World Trade Centre.

The award was received by Hassan Al Hazeem, Managing Director, of Intercoil International, from Mohammed Bin Rashid Al Maktoum. When Hassan spoke to SME Advisor he made it clear from the outset that this locally grown Emirati business places emphasis on preserving quality and maintaining its sense of social responsibility.

What is perhaps most striking about Intercoil is its capacity to provide products at both national international levels. Upon receiving the Quality Appreciation certificate Hassan, he noted: “Business excellence models take a holistic view and audits the quality culture followed at all levels of the organisation. The Dubai Quality Appreciation Programme Award is a major milestone for us, but we cannot rest on our laurels, we need to sustain our amazing growth, through innovation and continuous improvement. This recognition is a major impetus for our strategy — augmenting our manufacturing capabilities and expanding our retail footprint across the region.”

Indeed their exporting capability was one of the main features highlighted in Dubai SME’s feedback to the company after the announcement of their high ranking.

“We received very comments regarding our exporting ability and our ability not only to maintain our high levels of output, but also on our innovative plans to expand and grow,” says Hassan. So what are these plans for expansion and how best can they be achieved.

“Currently the main plant is here in Dubai but there are plans in place to shift full production to Ras al Khaimah (RAK). There are also plans to expand further into untapped market in North Africa, including Morocco, Algeria and Tunisia, with original deadlines delayed because of the Arab Spring,” said Hassan.

Hassan also explains that the adoption and implementation of the latest technological advances has helped Intercoil increase production through automation. “Full automation is in place for the foam division but the long-term plan is of course to utilise industrial technology to automate across all divisions,” he says.

So, how did Intercoil find the entire application process regarding the Dubai SME rankings? “What better way to evaluate your own business than to expose your strengths and weaknesses to a competition of this kind? The application was thorough in terms of innovation, financial, performance and human capital. The process allowed us to take a look at all aspects of the business and to recognise elements that may need refined – areas that we may have overlooked or become ignorant to over time,” said Hassan.

“It certainly gave us the initiative to propel the business, to promote better corporate governance going forward and, as we achieve a larger status, to maintain a standard of professional excellence and quality driven products,” he concludes.

Name: Paramount Computer Systems

Dubai SME ranking: #9

Sector: Professional services

Founded in 1992, transformed in 1999, and re-invented in 2007, Paramount Computer Systems is a regional provider of technology and services for securing the information assets of enterprises. The company’s services range from the development of a security policy, security awareness training, through to the delivery of solutions that encompass perimeter security, secure content management, identity and access management, vulnerability assessment, risk, policy and compliance management.

In short, Paramount assists businesses in the Arabian Gulf Region, understand, monitor and mitigate the risks in their IT infrastructure. Its clients include banks and financial institutions, airlines and transportation companies, telcos, universities and large corporate entities in the region. With six offices and over 90 staff, it can boast partnerships with some of the region’s biggest IT security layers, including McAfee, EMC and Juniper.

So what motivated Paramount to enter a nomination for the Dubai SME 100 rankings? The company’s CEO, Premchand Kurup, explains that it was out of desire to see what the outside thought about his company. “Who better to judge you than your piers – it was this very reason that Paramount was first established – to have a company working for the customer that was also respected among both peers and the professional market,” says Premchand.

Having been placed within the top ten of the rankings list gives an obvious indication of the quality of services Paramount provide, but what were the key elements outlined in the comments from Dubai SME? “We scored high with innovation and with an understanding of the direction the company is going as well as being commended for our willingness to allocate the necessary resources for continued growth and expansion,” he says.

“We place a lot of emphasis on human capital development, with training and education an important component built into every employee’s career path. We respect the need to maintain high employee morale by balancing processes with relationships, encouraging individualism as well as team work and continuing transparency from top to bottom. The hierarchy of the company is not strictly enforced and as far as approaching management, it’s well communicated that the door is always open,” says Premchand.

What is also rather impressive is Paramount’s mature corporate governance policies. There are regular and strict audit processes in place as well as quarterly reviews, where each department heads meets with management to give assessments and updates pertaining to outlined strategies and targets.

So, what is next for Paramount? “We will take the next three to five years to expand into other markets. We are confident that with a careful planning and a solid strategy in place that Paramount can enter the more mature markets of Europe and the US and recreate the success we have here in the Middle East,” Premchand grins.

The general belief is that all firms regardless of size need to actively plan for their future if they are to effectively compete and survive. This is more so the case for SMEs who continuously compete with larger and more established firms as well as lower priced enterprises, as well as new entrants.

The anecdotal evidence from the SME sector suggests that the average owner who in almost all cases is also the key manager tends to be “strategically myopic” and lacks the long term vision of where to take the company or knowledge of where it is currently heading.

The absence of appropriate strategic planning implies that the typical SME may not be achieving its full potential and more likely placing the company at risk of failure. Despite the importance of strategic planning in SMEs little is known about how it is developed. Therefore, this survey seeks to understand how strategy is developed in SMEs. Once a better understanding of the strategy development process is obtained we can recognise the hindrances and be to mitigate them.

The survey found that in two-thirds of the cases the strategy development in the organisation was carried out solely by the owner or general manager. In 19% of the SMEs in the survey, strategy was developed by the relevant heads of department or senior staff. In a further 10% of the cases, strategy development was a task given to a few selected staff.

In none of the cases did SMEs use external consultants or experts to help them develop their strategy or at least moderate internal meetings. It appears that strategy development in SMEs is a concentrated affair in the hands of a few, if not the owner. The lack of external insight may also be a reason as to why many SMEs cannot see the wood from the trees with everyday issues to develop a top level roadmap for the company.

Although the strategy development process may be concentrated with the owner and a few other staff, the general view is that it is important. In fact, 95% of the respondents felt that the strategy development process was important for the organisation. The remaining 5% felt that the strategy development process was totally irrelevant to the organisation. The relevance of the strategy development is further confirmed by the fact that 23% of the respondents feel that it leads to decisions that allow the organisation to meet its objectives and vision.

A further 26% of the companies felt that the strategy process builds a shared vision of the organisation. 19% felt that the planning process focused on strategy as opposed to tactics. Interestingly, the remaining one third of the companies were of the view that the strategy process was limited in being unable to identify risk correctly, foster creativity, or incorporate feedback from all staff.

The success development of strategy within an organisation relies on the ability to include appropriate staff. The survey found that 42% of the respondents felt that the strategy development meetings included the most relevant individuals in the organisations. A further 39% of the respondents felt that the most knowledgeable individuals in the organisation tended to be included in the strategy development meetings.

So, it appears from the surveys that, at least in 81% of the cases, the most relevant, who can also be the most knowledgeable individuals in an organisation, are part of strategy meetings. Interestingly, in 19% of the cases the survey found that the most vocal individuals in an organisation were likely to participate in the strategy meetings, as opposed to the most relevant or knowledgeable staff. This implies that about a fifth of SME strategy may be impacted by individuals who tend to be vocal in their organisation.

Although the manager, or owner, may dominate the day-to-day running of an SME, in many cases they tend to have either a formal or informal Board of Directors. The survey found that for 65% of the SMEs in the sample the Board of Directors plays an important role in its development and approval. This implies that the Board of Directors tends to question the team, or person, that has developed the strategy so that it is in line with their vision. A further 13% of Board of Directors of SMEs only approves the strategy once it has been developed and do not question or challenge it. Of the remaining 23%, the Board of Directors of SMEs play no part whatsoever in either its development or approval. This shocking result shows that almost a quarter of SMEs receive no support or direction from their Board of Directors, as far as strategy is concerned.

In most cases, the strategic outcomes for a firm tend to be linked to financial remuneration for the employees concerned. The survey found that 68% of the SMEs in the sample linked the achievement of the strategic goals to financial remuneration. However, the system was not universally applied, in that some SMEs linked strategic outcomes and financial remuneration only for senior or staff while for other firms it was for all staff. Of the SMEs that had a system of linking strategic outcomes to remuneration, 44% of the SMEs applied it to all staff. A further 35% and 21% applied the system of strategic outcomes and remuneration to only senior and key staff respectively.

The survey sought to determine which particular aspect of the strategy development process that they would most like to change in their organisation. The results demonstrated that 45% of the respondents would like to better align the strategy of the organisation with the long term vision. A further 19% feel that the strategy needs to be monitored, and, a performance measurement system needs to be implemented in their organisation. Interestingly, 13% of the SMEs in the sample feel that the strategy in their organisation needs to be based on market realities. The remaining 15% of the respondents would like to see a more efficient and effective strategy discussion process that includes individuals, rather than excluding them.

The SME Strategy Development survey highlights the fact that the process in SMEs is led by the owner, or manager, without the use of any neutral external party to assist with the process or moderate the meetings. The negative aspect of this is that very often those close to the day-to-day operations of the firm tend not to be able to see the strategic vision of the firm. The operational staff tends to be interested in short term goals and outcomes as opposed to a longer term view of the firm.

The survey found that the strategy development process tends to include the most relevant or knowledgeable individuals within the firm. In most cases, the Board of Directors plays an important role in developing and challenging the strategy. On the negative side there are a large proportion of SMEs who tend to develop their strategy by including largely vocal individuals rather than the most relevant staff. Also, these firms may also have no direction or support from the Board of Directors. This difference in strategy development may greatly reflect their respective performance and of course long term growth or survival.

In 2011 the Arab world witnessed a tsunami change. Arab People overcame their fear, overthrew a few of the prevalent regimes, and took upon themselves to drive the political change they have been longing for since the Ottoman Empire. Let us look back at the last 12 months and try to preview what could 2012 hold for our region.

Politics

It is too early to draw some lessons as the political transformation is still unfolding both within and across countries. Political transition has just started in few countries (Tunisia, Egypt and to a less extent Libya). At the same time, revolution is still ongoing in other countries (Yemen, Syria).

Objective analysis of the prevalent economic and social situation in these countries, and extensive discussions with constituencies and popular base of the political parties can help shed some light.  For the majority of the people, the future of any political ideology will depend on how much those who are elected will deliver on both the political and economic demands of the people.

Economic

2011 was a tough economic year for revolutionary and evolutionary countries. Growth was flat or negative in Tunisia, Egypt, Yemen, Libya and Syria. It was sluggish in Morocco and Jordan. Unemployment, the central reason of the Arab Spring, soared especially in Tunisia and Egypt. Tourism income took a plunge with little sign of recovery (-35% in Egypt, -45% in Tunisia and even worse in Syria). Foreign Direct investment (FDI) has more than halved.

Domestic investors were willing to engage but were restrained by political uncertainty, social unrest and volatile security.  Trade, though resilient in the first half of the year, declined thereafter. External accounts deteriorated. Foreign reserves declined, though for policy purpose, they still seem to be at reasonable levels but not for a long time. And most of all, available fiscal space at the beginning of the revolution was depleted, and fiscal deficits start soaring again (around 5% in Tunisia and Morocco, 8 to 10% in Egypt, Jordan and Yemen.

The prospects in 2012 remain very challenging, if not worse than 2011. In addition to the huge pile of inherited political and economic problems, and those developed in 2011, the region will not be able to avoid the severe impact of the persistent global crisis, especially in Europe. Indeed, even under the best of assumptions, Europe is likely to see a shallow recession, which will take many years to resolve and growth to recover.  This will definitely affect the economies of the region for few years to come, especially North Africa countries, through the usual channels of trade, investments, tourism and remittances.

In the absence of external financial support (which doesn’t seem to be forth coming in spite of the repeated promises of the G8), the combination of the euro crisis and the persistent social unrest and risk factors perceived by the private sector, will further compound an already challenging economic situation of countries in the middle of difficult political transition. Therefore economic recovery in most countries, especially Tunisia, Egypt, Morocco and Jordan will be delayed.

Once again, exports, tourism income, remittances, and investment could be hard hit.  The fiscal space will further shrink in a context of rising borrowing costs. This will seriously limit the capacity of the countries to deploy appropriate fiscal measures to stimulate growth and preempt economic recession at this very sensitive juncture.

“I am afraid, the unbearable high levels of unemployment is posed to further aggravate. On another front, it seems to be clear that there is an issue of credible leadership with enough policy experience to assure private sector and who is able to stand up to popular demands and mobilise public and private sector capabilities to immediately start the implementation a well designed development programme. This is the real threat I see, not only to the political Islam but, above all, to the Arab Spring and its noble objectives,” says Hedi.

What lies ahead

Two brief conclusions can be inferred from the above. Democracy will likely be an important moderating factor over time. But Arab people will also discover that political Islam is not necessarily a viable alternative that can address their economic and political woes.  Therefore, these first free elections in the region are not the end of the transformation process, but only the beginning. If so, we should expect future elections to bring political Islam back to its real weight.  It is too early to judge the ongoing political transformation process or to predict its final outcome. However, the observations made above and what has been achieved so far lead to think that the journey will be very difficult but it seems to have well begun. Indeed, some positive signs are worth noting.

Post-revolution countries are well engaged in their democratic transition. New and solid political awareness is developing and has been reflected in a first time free and fair elections in Tunisia, Egypt and Morocco. There is the foundation of numerous political parties. Tunisia, where all this started, is offering a home-made blue print for managing a democratic transition process, which could inspire other Arab countries.

Ultimately, Egypt will complete this first stage of transition and could offer another model. Libya, due to the lack of political and state institutions, will go through ups and downs, but will find its way with or without the help of its neighbour. Morocco offers a reasonable example of evolutionary reform which could inspire other monarchies of the region. If these countries eventually emerge as stable democracies, they will exert a tremendous influence on the internal politics of the region, by demonstrating successful alternative models to the autocracies and theocracies that have previously been the only choices on offer.

Hedi Larbi

We can debate the impact of the 2011 Arab Spring forever and under or overestimate the depth of its political transformation, but what happened in 2011 will have profound consequences for the future of the region, and beyond.

The Middle East and North Africa will never be the same. The forces that have been unleashed are likely to continue driving regional politics for decades to come. The ongoing changes will also fundamentally alter the geopolitical map of the Middle East.

About

Mr. Larbi became Country Director of the Middle East Department, World Bank Group, on December 1^st, 2007, covering Iran, Iraq, Jordan, Lebanon and Syria.

Mr. Larbi, a Tunisian national, joined the Bank in 1993 as a Transport and Urban Economist in the infrastructure division of the West Central Africa Department.  He has since held various positions in Africa region as a lead specialist, then as Sector Manager in the Sustainable Development department of the Middle East and North Africa Region.

Mr. Larbi received his Baccalaureat in Mathematics from Bizerte College in Tunisia; a Master’s Degree in Civil Engineering and Management from Ecole des Mines de Paris, France; and an Executive MBA from Harvard Business School, USA.

The Gulf Financial Centres statistical survey carried out by Euromoney Conferences shows an increase in regulated financial institutions in all the region’s main Centres (Bahrain, Qatar Financial Centre & Dubai International Financial Centre) over the course of 2011.

In gross numbers Bahrain still leads the way with 412 institutions at the end of 2011 (a figure which had risen to 415 by the end of February) and Bahrain also employs the largest number of people in financial services.

At the opening of the Euromoney GCC Private Banking Conference, Central Bank of Bahrain Governor HE Rasheed Al Maraj stated, “The CBB has a proud regulatory history.  Our framework has been moulded over many years, and it has served our stakeholders well in times of local, regional, and international turbulence.  It provides clear leadership and direction to licensees, and it is designed to provide investors with a detailed understanding of the way in which the CBB expects banks and financial institutions to discharge their responsibilities.”

The Governor continued, “Five major international regulatory initiatives would be our focus for 2012 onward. These are the implementation of revised capital adequacy standards, the new liquidity requirements and the further enhancement in the corporate governance framework including remuneration policy, the implementation of IFSB standards and the regulatory enhancement needed on the capital market. “

Qatar Financial Centre leads on percentage growth and Dubai International Financial Centre continues its strong performance in absolute growth numbers. Dubai is also particularly strong in support and retail outlets in the city’s financial centre.

On the gross assets side UAE is the clear leader – but, interestingly, foreign assets in Bahrain’s banking sector are more than double UAE and five times that of Qatar highlighting its position as the region’s offshore centre.

The second report – the Euromoney Global Private Banking review – is published by Euromoney Magazine in London each spring.

This report, one of the most anticipated statistical reviews in the Private Banking market, shows the industry slowing globally but the Middle East posting the strongest growth numbers of any region. In revenue terms the Middle East private banking market grew at 48% last year – against a global average of 25%.

Both of these reports have been released in advance of The Euromoney GCC private banking forum which was held in Bahrain on Wednesday, 7th March.

Shaikh Mohammed bin Essa Al-Khalifa, Chief Executive of the Bahrain Economic Development Board, said: “The strong growth that the financial sector in the Gulf has shown over the course of 2011 is very encouraging, particularly in such challenging macroeconomic conditions. We are delighted to be hosting this conference in Bahrain at a time when demand for private banking in the Middle East is expanding so rapidly as people look for more sophisticated ways of looking after their money.”

The implications of these reports and much more will be discussed at the forum. Full details are available at www.euromoneyconferences.com

Further information is available online at: http://www.euromoneyconferences.com/EventDetails/0/4619/The-GCC-Private-Banking-Conference.html

“In 2011, the growth rates across the Middle East and Africa region were in double-digit figures. As a consequence, 2012 will be hampered more, and top growth rates will be limited to those countries that didn’t exploit their economies last year,” said Peter Sondergaard, Senior Vice President at Gartner and Global Head of Research.

“Four forces of technology: cloud, social media, mobile and information, will equally impact IT organizations and technology providers in the Middle East. However, we believe that the market for cloud services, the lack of skills to deal with big data and the explosion in information could limit changes in organizations in the Middle East.”

“Building industrialised IT capabilities will have CIO’s across the Middle East increasingly turn to outsourcing of infrastructure and application environments. We believe that there will be substantial opportunities to drive down costs of outsourcing contracts that tend to be the most expensive globally. CIO’s will need to build sourcing and vendor management skills to counter ensure better prices,” said Sondergaard.

The banking and securities industry will be the fastest growing sector, especially in the Middle East and North Africa (MENA) countries. This market is largely boosted by the still sustained expansion of the Islamic banking sector due to the recent legislations in Qatar and Oman, as well as the new wind of legalization from the Islamic parties after the Arab Spring. The transportation and healthcare providers industries will also see a similar growth rate. While the top three fastest-growing industries are broadly the same in the entire region, the position changes slightly with transportation on the top in the African countries.

“We see four major business trends in the Middle East and Africa region – the diversification strategies of governments to create sustainable and diversified businesses from an oil-based economy, the expansion strategies of local organisations across the region, the need for more security and the management of the impact of the Arab Spring,” said Vittorio D’Orazio, research director at Gartner. “To underpin those strategies, hardware and software will play a key role and are predicted to have the fastest growth rates in 2012, as well as in the following years.”

The largest markets in terms of actual Euros will remain within the large government (and state-owned enterprises), the banking sector and the large manufacturing & natural resources industries which are also comprehensive of the rich energy sector.

Table 1. Enterprise IT Spending by Vertical Market in MEA (Billions of Euros)

Source: Gartner (January 2012)

Further information on vertical industry IT spending is available in the Gartner report: “Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2009-2015, 4Q11 Update”, at http://www.gartner.com/resId=1894417. This vertical industries forecast provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.

Additional information about the Middle East and Africa region is available on www.gartner.com and in the report “Emerging Market Analysis: IT, Saudi Arabia, 2011 and Beyond.”

The results indicate that although the region is not exempt from the economic issues facing other regions, such as Europe and the US, there is optimism in the Middle East for the coming year, despite the regional challenges it faces.

Almost half (49%) of respondents were quite confident about their company’s prospects for revenue growth in 2012, with almost a fifth (18%) feeling very confident. The survey asked business leaders, across the region, including the United Arab Emirates, the Kingdom of Saudi Arabia, Qatar and Kuwait, for their thoughts on the coming year, looking at a number of different themes, including: revenue growth, business expansion and M&A activity.

Nearly two thirds of respondents (65%) expect to grow their revenue organically, with 23% expecting it to grow through a mixture of natural development and acquisition. When asked about geographic expansion, the Middle East region was the most popular focus: 44% see the Middle East as a growth area. Slightly less, but a fifth of respondents (20%), anticipated international expansion.

“It’s encouraging to hear the business community in the region speak so positively about the coming year,” commented Abdul Aziz Al Yaqout, Regional Managing Partner, DLA Piper Middle East.  “There continues to be extensive commentary in the media about the world economy and how businesses are coping with global market volatility, but it is clear that with the combination of its move towards building a knowledge based economy, underlying wealth created by the region’s natural resources and its position as an emerging economy located between east and west, the outlook remains relatively positive in the Middle East.

“The region does have major challenges to face over the coming year, especially in countries faced with regime changes, however with high confidence levels we hope this will translate into an increase in market activity with investors confident to focus on regional opportunities. DLA Piper will continue to canvas the market to ensure the advice it offers clients is based on solid business sentiment as understanding the ‘business of business’ is invaluable for our growth and development.”

The research surveyed over 16,000 senior business managers around the world and it is believed to be the first time that independent research evidence has validated the causal connection between flexible working (time and/or place of work) and improved productivity/revenue generation.

Respondents also report feeling more energised and motivated thanks to flexible working (73%), perhaps indicating why they are able to become more productive and generate more revenue. Flexible working, by improving worker morale and health, is therefore also taking on the important role of talent retention tool, providing businesses with a valuable way of rewarding and attracting resources.

Other interesting findings are:-

- 81% of respondents declare that they work more on the move than they used to.

- 62% of respondents say that workers in their company feel healthier thanks to flexible working.

- 92% of respondents expect a surge in the number of people that go part-time at some point in their career path.

- Globally small businesses have embraced flexible working more readily than large with 80% of workers saying that their company works more flexibly than it used to compared with 68% of large business workers.

Mark Dixon, CEO at Regus notes, “Technology and network improvements as well as worker demands for a better work/life balance have driven flexible working to become the norm rather than the exception. This survey confirms the business case for flexible working revealing that global businesses see increased productivity and greater revenue generation as directly linked to flexible working practices.

“Business people are also working on the move more than they used to, making the availability of work centres in every city an increasingly attractive proposition, particularly to small businesses that cannot rely on a network of company offices when they leave their headquarters.

“In addition to these benefits staff report feeling healthier, more energised and more motivated which in turn means that staff are happier in their jobs, more loyal and less likely leave. As workforce expectations and demands change part-time arrangements are therefore becoming more common not only for freelancers, working mums and the working elderly, but also generation Y employees going straight into multi-job employment,” he said.

The annual benchmarking study – which assesses the level of credibility, respect, fairness, pride and camaraderie within an organisation – forms part of the world’s largest employee survey. Most of a company’s score (two-thirds) is based on the confidential feedback of their staff, with an audit of management and HR practices by the Institute comprising the remainder of the score.

Climbing from second place in last year’s Top Companies list to number one in 2012 was FedEx Express. Its Purple Promise Award (PPA), which recognises a team member who goes beyond the typical expectations to ensure the customer’s needs are met, was among the internal procedures recognised by the Institute as contributing to its leading result.

FedEx Express was followed by Microsoft, Marriott, PepsiCo and The One, rounding out the top five positions. They were joined by OmnicomMediaGroup MENA, Merck UAE, Bayt, Dulsco and EMC who took the honours in the top 10.

In addition to its awards for overall workplace excellence, GPTW UAE gave special recognition to the country’s top companies for Emiratis and top companies for women.

General Electric and PepsiCo were acknowledged for implementing best practices in hiring, developing and retaining Emirati talent. According to GPTW UAE these companies’ programs hold valuable lessons for the UAE business community on how to develop the local workforce.

Globally the Institute recognises the importance of creating work environments that address both the historical barriers that keep women from succeeding as well as supporting the needs of women workers. In the UAE General Electric, THE One and OmnicomMediaGroup MENA were three companies commended for their efforts in enhancing the workplace experience for women.

Commenting on the Top Companies lists, Dr. Michael Burchell, Partner & Director of Great Place to Work Institute UAE said: “We would like to thank all the participants in this year’s program. We have seen remarkable development in HR practices in the UAE in the two years that we’ve been running the Top Companies to Work For study.

“We are pleased to see new companies make the list this year and that some of our previous list makers have improved their positions among the top 10. This shows they are applying what they learn from the research into models for continuous business improvement.”

Dr. Farrukh Kidwai, Partner & CEO of Great Place to Work Institute UAE added: “Following the completion of the evaluation procedures, we found there were companies implementing some very impressive practices for Emiratis and women. Although they are a small group this year, we believe it is important to recognize the efforts for these companies so that we can all learn from their examples. We look forward to recognizing more companies in the program next year”.

Great Place to Work reveals the Top 10 Companies to work for

The Top Companies to Work For in the UAE 2012 are:

Top Companies For Emiratis in the UAE 2012 are:

Top Companies For Women in the UAE 2012 are:

Most respondents state that they support online education while only 14.8% are against it. The majority (69.9%) agree that online education is viewed in a more positive light today than it was five years ago, and 44.6% of respondents claim to have pursued an online certification. From those who have never enrolled in an online program, 39.3% state that they would be interested in a post-graduate program, and 23.4% would be interested in an undergraduate program.

Only 17.4% would prefer a traditional education, while the remainder would be interested depending on the subject to be studied. Credibility of online degrees/courses, however, still remains an issue, according to 58.9% of respondents.

The poll results show that a mix of online and traditional classroom studies is the best type of education, according to 66.7% of respondents, with 82.2% believing that face-to-face schooling is the easier option.

Students who opt for the online route are seen by others to be more goal-orientated (12.2%); more organised (11.8%); more independent (11.1%); better at time management (10.9%); flexible by nature (5.9%); more motivated (5.1%) and more committed (3.7%). While 18.8% believe that those seeking online studies have all of the afore-mentioned traits, 20.4% believe that they have none of them.

“The world of online education is still clearly contested. However, it seems that opinions are gradually swaying towards the positive,” said Suhail Masri, VP of Sales at Bayt.com.

“While it seems that people still worry about the credibility of online study programs, the overriding benefits and convenience of distance learning mean that online education is receiving wider acceptance across the region.”

More than half of respondents (54.9%) say that their company will hire applicants with an online degree, though 61.9% will still prefer a new recruit with traditional qualifications. Of those who do get hired after partaking in an online education course, 43.7% join at entry-level, 41.5% at mid-career level, and  14.7% are hired for senior level positions.

Data for the Bayt.com “Online Education and the Job Market in the Middle East” poll was collected online from December 30^th, 2011 to January 30^th, 2012, with the participation of 9,677 respondents from Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Pakistan, Qatar, KSA and the UAE.