Photo Caption: (left to right) Abdul Razzak Mikati, Managing Director, DTP and Tayfun Topkoc, Managing Director, SAP UAE partner on aviation technology innovations.

Global Aviation Analytics Market to Double to USD 4 Billion by 2021;

DTP (Dubai Technology Partners) and SAP Co-Innovate on Crowd and Flight Performance Management and Forecasting Solutions at GITEX

ايمن ابو الخير

هل نحن في مرحلة اجتياز الاقتصادي المهيمن القائم على أساس المصانع الكبيرة والشركات متعددة الجنسيات إلى عالم يقوم على حرية الاختيار، الذي سيتمكن فيه الكيانات الصغيرة من المنافسة مع الشركات الكبيرة،وبالتالي ستساهم في تشكيل اقتصاد المستقبل؟ هل نحن فعلا بصدد عبور الاقتصاد "التناظري" الحقيقي الى الاقتصاد الافتراضي، ام ان الانتقال سيكون من الاقتصاد الافتراضي الى الاقتصاد الحقيقي؟

Its strategic geographic location, ease of doing business and favourable legislation position the UAE at the forefront of e-commerce investment in the region and globally

Dr. Belaid Rettab

senior director for Economic Research & Sustainable Business Development at the Dubai Chamber of Commerce and Industry

The United Arab Emirates with Dubai in the lead has recently been named the top country in the Arab world for ease of doing business. The recognition is well deserved and comes at a highly opportune time as investors increasingly look the region to expand their business and improve their geographical advantage. The UAE is now viewed as the fastest growing market for e-commerce whose value is expected to grow from $2.5bn currently to some $10bn over the next two years. This will largely be due to high internet and smartphone penetration among local residents and expats, as well as improved connectivity and changing consumer attitudes, according to experts.

“In recent years, we have seen a shift in the local business community towards e-commerce,” said Dr. Belaid Rettab, senior director for Economic Research & Sustainable Business Development at the Dubai Chamber of Commerce and Industry.

“Many companies are recognising the importance of building an online presence and platform to market products and services to a wider client base. They have also seen a number of big success stories come out of the UAE, where e-commerce businesses have flourished, expanded regionally and raised significant funding from investors abroad,” he added.

Some of the UAE’s most successful ventures include Souq.com, an English-Arabic language e-commerce platform, often described as the Amazon of the Middle East; it is also the largest in the Arab world. Groupon and Dubizzle are two other highly successful e-ventures, the former being an American multinational platform present in more than 28 countries including the UAE, and the former – a region-wide website for classified ads where you can buy, sell or advertise almost anything for free.

According to Rettab, interest in e-commerce has been on the rise particularly from Dubai Chamber members. This has prompted the organisations to launch a number of comprehensive programmes to help educate and train its members and the wider business community on best e-commerce practices. Its latest initiative to support the sector’s growth includes a partnership with what’s arguably the world’s top e-commerce enterprise Alibaba.com. Launched and based in Hangzhou, China, Alibaba is a leading business–to–business (B2B) e-commerce platform for global wholesale trade. The idea is to further empower businesses to take full advantage of the Internet revolution and facilitate their access to global markets, Dr. Rettab explains.

“The partnership opens the door for companies in the MENA region to explore untapped potential in new markets, enabling them expand their reach globally. We expect to reach an agreement soon to offer our members Gold Membership on Alibaba.com at a discounted rate, providing an even greater incentive for businesses to buy and sell on the platform,” he said.

In response to strong regional demand, Dubai Chamber is now looking to add more e-commerce services. It would seek to aid companies engaged in business-to-consumer (B2C) activities by partnering with the region’s biggest B2C e-commerce platform to help enhance their products and service offerings.

“We have recently introduced a “Trusted Member” Label scheme as a mechanism to help our members and companies throughout the Middle East and North Africa build trust with potential partners online. The logo gives businesses a competitive edge in a crowded market. Moreover, we have been actively working with chambers of commerce from other emirates, in addition to Saudi Arabia, to extend similar the benefits to their members,” Rettab said.

Regardless of location, type of service being offered, and target customers or markets, there are a number of ground rules every e-commerce entrepreneur should know about before proceeding with any major investments. Proper planning, for example, is absolutely essential if you wish your business to be able to compete well on a regional and global scale.  

“It is important to remember that online platforms are the face of a brand and should be designed around the needs of tech-savvy consumers. Websites, tools and solutions should evolve in line with consumer demands, which tend to change rapidly. Staying on top of the latest technology trends and digital marketing techniques is incredibly important,” explains Rettab.

Developing a sustainable business model and manpower investment are just some of the challenges investors are likely to face when looking at e-commerce opportunities, according to Rettab, who believes entrepreneurs tend to underestimate the costs of building an online business of scale. To help address these issues, companies should exchange best business practices and lessons learnt in the form of educational and interactive platforms, roundtable discussions, seminars and conferences, Rettab adds.

Over the last few years, the UAE government has expended significant efforts to encourage e-commerce investment. It offers a favourable business environment for entrepreneurs and startups through its various free zones which offer up to 100% foreign ownership and tax exemptions, in addition to low setup and labour costs. The process to set up an e-venture in the UAE is considered a lot simpler when compared to other countries in the region. After securing a trading license, entrepreneurs can register with free zones which allow them to make use of flexible office space at a fraction of the rent cost.

Dubai is at the forefront of the UAE’s e-commerce strategy. It houses three major freezones -- Dubai Internet City, Dubai Media City, and Dubai Silicon Oasis, where startups and small businesses can benefit from operating alongside likeminded organisations with similar interests and ambitions.  The government has recently adopted legislation that encourages foreign investment and eliminates administrative obstacles, and is currently looking at allowing full foreign ownership of companies outside free zones in strategic sectors.

“These incentives, along with a rapidly growing e-commerce sector and very high Internet and smartphone penetration rates, make the UAE an attractive market for foreign investors offering plenty of unique opportunities,” said.

Despite most markets staying depressed and global economic growth showing no signs to recover, not at least in the short term, the future of e-commerce both in the region and outside looks overall bright. The sector is growing rapidly and could exceed $3.6 trillion by 2020, according to market research firm Technavio. In the short to mid-term the Middle East and North Africa (MENA) region is likely to see heightened investor interest, with Dubai leading the way in adopting new solutions and technologies as it transitions towards becoming a smart city, Rettab says. He views the emirate as being at the center of the region’s e-commerce boom, serving as a gateway to other Gulf countries, as well as other African and Asian markets with high growth potential.

“Consumers are increasingly turning to e-commerce websites for cost-savings and convenience. At the same time, they are demanding quality products and a seamless shopping experience. This is why e-commerce players in this region must continuously work to improve their standards, solutions and offerings,” he concluded rather positively.

By Ayman Abualkhair

Are we in a stage of passing the dominant economic age, based on large factories and multinational companies, to a world predicated on freedom of choice, in which small entities would have the potential to compete with large companies, and hence shape the future economy? Are we crossing the age of a real economy to a virtual one, or is it moreover transitioning from a virtual economy to a real economy?

مصرف لبنان خصّص 400 مليون دولار لدعم رواد الأعمال

أسبوع جيتكس للتقنية حلقة وصل بين رواد الأعمال والمستثمرين والعملاء

دبي، دولة الإمارات العربية المتحدة

 (English)

تتيح دبي مجالاً واسعاً أمام شركات التقنية اللبنانية الناشئة للتواصل مع العالم والانفتاح على مستثمرين عالميين من أجل اقتناص فرص التمويل، وذلك خلال مشاركتها في أسبوع جيتكس للتقنية، أحد أشدّ أحداث تقنية المعلومات تأثيراً في العالم، والذي أسدل الستار على فعالياته يوم الخميس الماضي في مركز دبي التجاري العالمي.

Banque du Liban Has Committed USD 400 Million to Supporting Startups;

GITEX Technology Week Connects Entrepreneurs with Customers and Investors

Dubai, United Arab Emirates

(بالعربية)

Dubai offers Lebanese tech startups the opportunity to gain global exposure and investment at one of the world’s most influential technology events, GITEX Technology Week.

Middle East Business Magazine

Convenience products and social media to double sector demand in five years

Dubai, UAE: The Middle East’s packaging industry is undergoing rapid transformation with increasing demand for sophisticated automated solutions, according to exhibitors at Gulfood Manufacturing - the Middle East’s biggest food manufacturing, processing and packaging, logistics and materials handling exhibition - which runs at Dubai World Trade Centre (DWTC) from 7-9 November, 2016.

UAE-based Al Thika Packaging - one of the leading domestic exhibitors participating in ProPack Middle East, the dedicated processing and packaging zone within Gulfood Manufacturing - predicts regional sector demand could double within five years as the food processing sector strives to become more competitive in response to increasing consumer demand for convenience products.
“Automated solutions are being sought as companies try to reduce overhead labour costs and keep up with global supply trends,” said Tim Ansell, Al Thika’s Sales Director. “International trends in food products are coming to market much quicker in the UAE as people see through social media what is being offered elsewhere – it’s prompted this market to react faster to global trends.
“Food manufacturers are moving into ready meals, pre-packed ingredients and fruits and vegetables - we are following Western trends. The growth over the past six to seven years has not let up and, put simply, there is a desire to implement new technology; the regional industry is more open to innovation.”

Ansell says demand for high-end automation is coming largely from Saudi Arabia and the UAE, though there has been some recent pick-up from manufacturers and processers in Oman and Kuwait. High-end automation now represents 20 per cent of Al Thika’s sales with Ansell predicting that number will double within five years.

“Such is the demand from the food, drink and pharmaceuticals business that we have had to take on a Project Engineer to analyse customer requirements and produce integrated solutions and equipment,” he said.

We’ve moved from offering just a tray sealer or x-ray for example, to providing turn-key production lines with process equipment, conveyors, packaging machines and automated carton erector loaders. Customers want a one stop service, hassle free installation and local service, so this is playing to our strengths” he said.

According to a recent Euromonitor report forecasts, the Middle East and Africa packaging industry will register the highest growth of any region up to 2019, recording a 5.5 per cent compound annual growth rate (CAGR).

The forecasts, says Ishida, a leader in the design, manufacture and installation of complete weighing and packing line solutions for the food industry, could further be impacted by the emergence of export-oriented ‘power’ players within the Middle East, particularly from snack, dates and poultry producers.

Ishida is planning to capture a growing market share with packaging system demonstrations at ProPack Middle East featuring weighers and X-ray inspection systems.

“Apart from rising automation to reduce packaging and waste costs at the manufacturing, retail and end-consumer stages, to increase speed and efficiencies there will also be increasing demand for check-weighers, metal detectors, X-ray inspection systems and seal testers to secure quality control for exports outside the region,” said Torsten Giese, Marketing Manager.
Giese foresees huge changes within the food production sector, all of which will impact the packaging sector. “There will be polarisation. Politically stable countries will experience growth in convenience and ready-to-eat sectors and ‘luxury’ goods while politically unstable regions will fall back to a more agro/self-sufficient positions.

“Some large players will expand to produce and distribute their food products more efficiently and into more regions, thus becoming regional ‘power players’ while others will look to expand down or up in the food logistic chain. For example, growers will move into manufacturing and distribution; so potato growers currently producing potato chips and snacks will diversify to include frozen chips and other potato products.”

ProPack Middle East will be a weathervane to the food manufacturing industry’s transformation, according to Trixie LohMirmand, Senior Vice President, Exhibitions & Events Management, DWTC, the Gufood Manufacturing organiser.

“Through the state-of-the-art exhibits, visitors will be able to track the evolution of this vibrant regional industry which is at an undisputed high point in its development,” said LohMirmand.

“With Saudi Arabian and UAE producers looking to satisfy increasingly sophisticated domestic demand and also eyeing lucrative export markets, innovative packaging and weighing solutions which meet regional and international standards will be high on buyers’ shopping lists.”
The ProPack Middle East segment will feature 905 exhibitors from 30 national and industry pavilions, comprising approximately 50 per cent of the total companies at Gulfood Manufacturing 2016, which is 20 per cent bigger than last year. The show will fill 13 halls at DWTC and feature 1,600 food manufacturers, suppliers and industry service providers – up 60 per cent on last year.

Gulfood Manufacturing also features segmented areas including Ingredients Middle East, featuring fine and functional ingredients and the latest bulk and commodity ingredients, innovations, tastes and flavours; and Logistics Solutions Middle East, a showcase for firms involved in material handling, transport and commercial vehicles, IT and technology solutions, warehousing operators, facilitators and service providers.

Source: http://middleeast-business.com/

12^th October, 2016, Dubai, UAE: Consumers in the UAE appear to agree with the current real estate market sentiment that now is good time to buy property, according to statistics from compareit4me web site, the Middle East’s leading finance comparison site.

Using data from its mortgage comparison platform, compareit4me can reveal that there was an 119.5% increase in the number of people searching for mortgages in the third quarter of 2016, compared to the same period in 2015. This indicates a great willingness among UAE consumers to take on finance in order to take advantage of a buyer-friendly property market.

According to a recent study from Core Savills, over half of Dubai’s tenants are looking to buy their own residence in the future. Of these, the report said, 62% were leaning towards buying to own, rather than buying to let. What’s more, more than half said they were looking to purchase property over the next 12 months.

That same report added that buyers are being deterred by difficulties when it comes to securing finance on homes. That could explain the enormous growthin mortgage searches at compareit4me.

“If people are struggling to find good finance options for property, they’ll of course look to compare offerings. This is where we come in – our mortgage portal allows users to compare almost 80 different mortgages,” said Jon Richards, CEO at compareit4me.

“It seems people are looking to take advantage of the low prices in the property market, and they’re eager to take on finance to make sure they don’t miss out on the great deals to be had.”

Indeed, even when it comes to securing home loans, it appears that UAE consumers are looking for the least expensive options. compareit4me’s numbers reveal that, in the third quarter of 2016, there was a 28% reduction in the number of people looking for mortgages that don’t require a salary transfer account with the same bank. This indicates that users are wising up to the fact that

they can secure better home loan rates if they borrow from banks with which they hold a salary transfer account.

“This makes perfect sense in a property market being defined by low prices – the benefits of easy-to-buy property are negated if buyers have to pay out more on interest payments. Our users know this, and so they’re opting for the mortgages that give them the best rates – in this case, the mortgages that require salary transfer accounts,” said Richards.

According to compareit4me’s numbers for the third quarter of 2016, the most searched for mortgage product is RAKBANK’s Home In One. Union National Bank’s Mortgage for Expatriates came in a close second, while ACDB Mortgages rounded off the top three.

 Dubai, UAE, 9 October 2016: HE Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority (DEWA), received the prestigious Lord of Matterhorn Award from Peter Harradine, President of the Swiss Business Council, Dubai & Northern Emirates. The ceremony at Fairmont Palm Hotel and Resort, Dubai witnessed the attendance of HE Maya Tissafi, Swiss Ambassador to the UAE, HE Christian Watts, Consul General of the Consulate General of Switzerland, in addition to a number of Swiss companies and business representatives. 

The Lord of Matterhorn award is awarded annually to a select few UAE citizens who have contributed towards enhancing business relations with the Swiss Business Council and in turn towards Switzerland and its presence in the UAE.

“It is my pleasure to receive the prestigious Lord of the Matterhorn Award, by the Swiss Business Council. I understand that this prestigious award was named after Switzerland's most famous mountain, which is hard to conquer, but then again, here in the UAE, we do not believe in the word ‘Impossible’. We are guided by the vision and initiatives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in all our endeavours,” said HE Saeed Mohammed Al Tayer, MD & CEO of DEWA.

“In line with DEWA’s vision to become a sustainable innovative world–class utility, innovation is the cornerstone and integrated approach we follow to achieve the UAE Vision 2021, which aims to make the UAE among the best countries in the world by 2021. This in turn, strengthens the UAE’s global competitiveness, especially in renewable energy, and green economy technologies and products. Dubai has a comprehensive vision for a sustainable future, which is pivotal to the success of building a green economy. Receiving the Lord of the Matterhorn award is a proud moment and honour for me, while reflecting DEWA’s success in strengthening its ties with its partners to ensure Dubai’s global competitiveness,” added Al Tayer.

“Finally, I would like to thank HE Maya Tissafi, Ambassador of Switzerland to the UAE, and Mr. Peter Harradine, President of the Swiss Business Council and the organisers for the success of this evening and all their efforts,” concluded Al Tayer.

Published annually, the ISLAMICA 500 is a business guide providing hard-to-find biographical details for 500 of the world’s most prominent and influential personalities in the Islamic world and economy.