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CAPITAL
LETTER
Vol. 21 | Issue 1 | Spring 2019
CAPITAL LETTER
Chairman’s Foreword
Welcome to the first issue of Capital sponsors for 2019, and we those – and we also encourage
Letter in 2019. This being the Year welcome our new Gold sponsor, all our members to take full
of Tolerance we are already looking Kingsbury Gulf, and Silver sponsor, advantage of the benefits of their
at some historic events that have The Fry Group. membership card, because we
and will be taking place in Abu I would also like to welcome our have a lot of really good offers from
Dhabi. The beginning of February new Committee Members, and some excellent brands for the year
saw a visit to the UAE by Pope congratulate Nancy Power who has ahead.
Francis, which is being hailed as been appointed Deputy Chair. Look Happy reading!
a landmark moment for interfaith out for the article introducing the
relations in the Gulf. Pope Francis new faces, and we encourage BBG
held a five-hour mass at Zayed members to make a point to say
Sports City. March will finally see hello to the Committee Members Nick Cochrane-Dyet MBE
the momentous Special Olympics when you spot them at events (look Chairman
taking place in Abu Dhabi. The out for their Committee badges).
event has been eagerly awaited As you know, one of the main
across the Emirates and we profile aims of the BBG is to support
two of the athletes representing British institutions in the UAE – such
Photo: © Matt Green Great Britain. In related news we as the Energy Industries Council
have an interesting article from and the Chartered Institute of
Direct Access with some important Marketing, both of which happen
information about making your to be profiled in this issue of Capital
business more accessible to Letter.
People of Determination. Lots of great member events
I would like to take a moment are being planned for this year, so
to express our gratitude to our make sure to keep an eye out for
Contents
BBG and Embassy Update Special Features
Chairman’s Foreword 1 Special Olympians 18
Lord Mayor in the UAE 20
Meet the New BBG Committee Members 2 Great British People in Business 21
Richard Oliver Awarded OBE 4 Introducing Institutes 22
Edward Oakden CMG Visits UAE 5
DIT Update 5 News, Events & Updates
Notes from the BBG Office 7 Introducing Kingsbury Gulf 24
Jersey and the UAE, Building Stronger Ties 25
Insight Pope Francis Visits UAE 26
Heriot-Watt University Hosts Trade Delegations 27
Who is Paying the Insurance Bill? 7 News in Brief 28
PWC ME Survey Findings 8 About the BBG
The Electrification of Flight 10
Top Five Risks for Businesses 12 Events Gallery 30
Committee Members 35
Gulf Renewable Energy Market Report 13
Corporate Sponsors 36
Demystifying Private Banking 14 Why Join the BBG? 37
HONORING THE PAST, MAKING THE FUTURE Six Tips for a Successful Construction Project 15 New Members 38
Equal Employment Opportunities 16 Membership Listings 40
Cover Picture: Special Olympics athletes from Team Great Britain pictured.
Editorial Submissions or Advertising Enquiries: Editorial Panel: Anna Ali Adib, Steve Martin, Sinéad Whelan,
magazine@bbgauh01.ae, British Business Group (BBG) Abu Dhabi Robert Schwarz, David Good, David Spearing and Amy Gilbert
PO Box 43635, Abu Dhabi, UAE, ☎ : +971 2 445 7234 Published by: Dar Al Fajr Printing, Publishing & Advertising,
BBG Office Mobile: 056 6650582
Email: office@bbgauh01.ae
P.O. Box 505, Abu Dhabi, UAE,
Email: sales@daralfajrpress.ae
☎ : +971 2 4488300
Website: www.britishbusiness.org This magazine is distributed among the members of
Office Manager: Sinéad Whelan British Business Group and has no commercial value.
B CAPITAL LETTER Vol. 21 Issue 1 Spring 2019 Vol. 21 Issue 1 Spring 2019 CAPITAL LETTER 1
BBG AND
BBG AND EMBASSY UPDATE
EMBASSY UPDATE
Stewart Highett Cris Partridge regional shipping and associated
– Group Membership and – Committee Member service sectors.”
Meet the New BBG Committee Members Sponsorship Secretary
Stewart Highett is the Senior Vice
Cris is a Regional Director for
London Offshore Consultants
Amy Gilbert
– BBG Communications
President for the Aker Solutions. Middle East (LOCME), looking Secretary/Healthcare Focus
He is based out of Abu Dhabi and after the Middle East, India and Chair
Some new members have joined the start of several international ventures that have been formed is the UAE Country Manager. He Caspian. During a sea-going
service businesses, winning large between Shell and Abu Dhabi also has responsibility for Customer career that started in 1982, he Amy founded Perfect Balance in
the BBG Committee this year. Meet
capital infrastructure projects in partners. Ali also represents the Management in the Middle East served on a variety of vessel types, September 2017 to fulfil a lifetime
them here:
the UK, Hong Kong and China. He Royal Dutch Shell Group with the region. Stewart has over 30 years eventually attaining command of dream of providing the community
Kristina Williams joined the UK Defence Research government of Abu Dhabi. His of experience in the on/offshore Oil ocean-going cargo vessels. Cris with a high quality and specialised
– Group Treasurer Agency in 2003 as it was formed experience in Shell includes project and Gas industry. Originating from subsequently attained an MSc in healthcare centre. Amy has a BSc
Kristina Williams is Co-Founder of into QinetiQ, to lead its change development of LNG Plants and an execution role within Electrical Marine Operations, was made a (Hons) Degree in Physiotherapy
eco rascals, a children’s ethical from a public sector body to a Regas Terminals, New Market Entry, and Instrumentation engineering Freeman of the City of London, a from the University of Southampton
tableware company. Her last role competitive commercial organisation GTL, Pipelines, Country Master- in UK refineries and engaged at Fellow of the Institute of Chartered in the UK. Following graduation she
was at Gulf Finance Corporation as resulting in significant growth and plans and Integrated upstream Offshore North Sea installations, Shipbrokers and a Liveryman of the spent two and a half years working
Head of Finance, where she raised a competitive business winning and Petrochemicals projects. His Stewart developed his career Honourable Company of Master for the National Health Service in
an AED500 million syndicated culture. Graham joined Rolls-Royce experience also includes mergers in International Marketing and Mariners. He has been an OVID South London and worked for a
loan from local and international in 2016 from Atkins Global in and acquisitions, LNG supply and Business Development focused on accredited surveyor since 2010. London South East Rugby club. Her
banks and ran several business Dubai where he was the Managing trading, investment banking as projects mainly in the Middle East, Cris arrived in the UAE in early 2009 specialties are Women’s Health and
transformation projects. With more Director of the Defence, Security well as project construction and Europe, Africa and the Americas, employed as a Senior Surveyor Sports injury rehabilitation. Amy is
than ten years of experience within & Communications business. Of engineering. Ali started his career with his first visit to the Middle East at LOCME. Since joining LOCME a well-experienced Rehabilitation
the financial services sector over his joining the Committee Graham with Taylor Wood and worked for in 1999. Throughout this tenure he he has been appointed as lead Pilates instructor and utilises the
this time she has led Finance said: “Rolls-Royce is privileged to Halliburton, Goldman Sachs and, has conducted many successful investigator on a number of high- foundations of Pilates to drive safe
Control, Financial Planning & be one of the largest UK companies now, Shell. He is a graduate of contractual and commercial profile major accident investigations/ and effective exercise. Corporate
Analysis and Treasury teams in the in the region, operating across both Imperial College London where he negotiations with IOCs and NOCs in litigations for P&I Clubs, international Wellness and injury prevention are
UK and UAE. Kristina said: “I joined Abu Dhabi and Dubai, with strong obtained a Master’s of Engineering the region. Stewart has a Master’s law firms and Flag State Authorities. a key focus of Perfect Balance.
the BBG upon moving to Abu Dhabi educational and business links degree in Civil and Environmental Degree in International Marketing Cris has produced a number of Amy and her team work closely with
as I am an entrepreneur who wanted in each. With the UAE placing an Engineering in 1996, and in 2000 Management supplemented with a publications and regularly presents companies to input correct working
to actively engage in the Abu Dhabi increasing emphasis on education, he earned a Master’s degree in paper on Strategic planning from the at international conferences on postures, positions, exercise
professional community to widen my youth and employability issues, I Strategy and Finance from Kingston University of Central England, UK. the subject of MOUs and warranty regimes and more to help minimise
network. This is one of the main aims have joined the British Business Business School. Ali also holds Upon joining the BBG Committee, issues. He firmly believes in the work-related injuries and improve
of the BBG and their events have Group to assist UK companies a Financial Services Authority Stewart said: “I am very proud to aims and principles of the BBG performance. On joining the BBG
allowed me to do so. I am also a who are trying to get closer to the be working in the Middle East Oil and applied to join the committee Committee, Amy said: “I have known
Qualification in Financial Regulation
Fellow of the Chartered Accountants local economy, to find ways to build & Gas sector. I have been visiting in order to contribute positively to about the BBG for years, because
& Derivatives. Upon joining the
in England and Wales and believe bridges beyond the business level the region since 1999 with the last the organisation whilst increasing my dad has been a member and
Committee, Ali said: “I am very
my experience as an FCA in and into the other areas that are a ten years spent in Abu Dhabi more the awareness of regional shipping was on the committee. I was asked
passionate about supporting British
Financial Services, professional high priority to the leadership of the than any other geographic location. and associated service sectors. Cris to step into his shoes, which is a bit
Businesses to succeed in the UAE.
services and not-for-profit across UAE.” I am responsible for Aker Solutions said: “I joined the BBG Committee daunting. However, I had my own
Being the most Senior Corporate
the UAE and UK will ensure the Ltd in the region and have actively because I believe in the aims and reasons to be excited. First of all,
good work of previous treasurers Ali Al Janabi Representative of Shell, an Anglo- been engaged with ADNOC and objectives of the British Business
– Energy Focus Chair Dutch company with a long history to help guide the healthcare sector
continues while keeping us up to other NOCs in the Gulf. I believe I Group and the benefit it could bring and create events to serve this
Ali Al Janabi is the Chairman of and a wide footprint across the UAE can bring my industry knowledge, to both individual and corporate
date on all financial issues.” topic. Secondly to help build more
Shell Abu Dhabi and is also Vice and the MENA region, I believe I can passion, energy and enthusiasm supporters. As well as intending to
Graham Outterside President for Shell’s Upstream also contribute to the wider British to the BBG, engaging my wider be proactive in my main and sub-
bridges between the BBG and other
– Group Community Liaison business community beyond Abu networking groups in Abu Dhabi.
business in Abu Dhabi. In this role, network that could further support committee roles I wish to use the
Graham Outterside’s career started Dhabi by leveraging Shell’s regional Thirdly to create more exposure for
he is accountable for providing the membership and sponsorship opportunity to increase awareness,
in GEC and Marconi where he led network.” my company Perfect Balance.”
governance and support for joint section of the BBG.” and the economic benefits of
2 CAPITAL LETTER Vol. 21 Issue 1 Spring 2019 Vol. 21 Issue 1 Spring 2019 CAPITAL LETTER 3
BBG AND EMBASSY UPDATE BBG AND EMBASSY UPDATE
Richard Oliver Awarded OBE Edward Oakden CMG Visits UAE
In January, Her Majesty’s
A previous Chairman of the British continued to support us in many Ambassador to Jordan, Edward
Business Group, Richard Oliver, was ways and we owe a lot to them. Oakden CMG, visited the UAE for a
awarded the OBE by Her Majesty We have also seen some terrific series of meetings and events with
Queen Elizabeth II, becoming an support from our Emirati friends and the UAE government and private
Officer of the Order of the British colleagues at key times. sector focused on generating
Empire, in the 2019 New Year’s Lastly, I was professionally awareness and interest about the
Honours List. The OBE is considered involved a lot in some very economic opportunities in Jordan,
a major award in the British honours significant transactions and dealings and specifically the London Initiative.
system. Richard’s was in recognition between the two countries both Jordan’s Growth and Opportunity:
of his services to British Business during my time at HSBC and The 2019 London Initiative is an
and to the British Community in the subsequently at NBAD. Now I exciting international conference due
United Arab Emirates. We spoke to continue to work with Emirati friends to take place on 28th February, 2019,
him about what this means for him: in a number of countries, but of in Central London. The Conference
How old is the OBE system, course the UK and the UAE are the will showcase Jordan’s 2025 vision for
and are many awarded? places I get most involved. I think it economic growth and reform, and will
all helped! realistic. Head Offices in the UK do launch the Government’s strategy to Trade Commissioner to the Middle
It dates back to 1917 and was Jordan’s geostrategic entry-point to
How does the BBG stay not always understand that. The boost investment. The conference will East, Afghanistan and Pakistan,
established by King George V to markets in the Middle East, Europe
relevant? BBG does. be hosted at the most senior levels of Simon Penney, and HMA Patrick
recognise public service outside the and beyond. He also took time to
Civil Service. There are around 200 I think that the role of the BBG has How does the Award Ceremony the UK and Jordanian governments, Moody. Mr Oakden outlined the
with the participation of international reflect on his time as Ambassador to
awarded in each list, so changed a great Work? future focus of Jordan on the services
private sector leaders, investors, the UAE some ten years ago and was
I do feel tremendously deal, even The actual decoration is awarded sector, as well as the importance of
partner governments and IFIs. The glad to reconnect with several familiar
fortunate to have got during my at an investiture ceremony, which targeting professional areas such
objective is for Jordan to be able to British faces still in Abu Dhabi.
one. time here. is conducted by a member of the as technology and healthcare. Not
achieve medium-term economic self- only was Mr Oakden able to assess As previous Ambassador to UAE,
There is no senior Royal Family members.
Why do you sufficiency, with an economy centred Emirati appetite to invest in Jordan, Mr Oakden was warmly received by
doubt that I have been told that mine will
think you were on the private sector. he was also able to consider the Emirati officials – including Foreign
the longer happen in March at Windsor
recognised in that you are here At a BBG Abu Dhabi Breakfast potential for British companies in Minister Sheikh Abdullah bin Zayed Al
Castle. Most of the males wear
way? as a Brit, Briefing, Mr Oakden was the UAE to expand into Jordan, Nahyan and Minister of International
morning dress and all of the
I would like to think the more ladies wear hats. Our family is accompanied by Her Majesty’s highlighting to BBG members Cooperation HE Reem Al Hashimy.
it relates to a few you get to researching these matters as I
different areas. First, understand speak.
I was Chairman of
the Abu Dhabi British Business business can be done
how What were your thoughts DIT Update
Group for a good few years
when you heard that you were
successfully. It’s not all receiving the honour?
and got very involved in things about price and negotiation, Exports visited to support the UAE- a technology roundtable. In the
like the British Centres for it is also about trust and Honestly, it gives a great feeling By Wendy De Luca UK Business Council meeting and UK we attended the Education
Business in Dubai, the understanding. of patriotic pride and satisfaction, meet companies to understand the World Forum alongside the UAE
and it’s super to think you have I thought it may be useful for you to
UAE-UK Business Council The BBG acts as UAE landscape. Two trade missions Minister of Education and arranged
made a difference and that hear about some of the work that
and various other related a great melting visited the Big 5 Construction Show meetings for Abu Dhabi Department
this has been recognised. I am the Department for International
entities. These were pot of ideas, and we organised meet-the-buyer of Education and Knowledge during
enormously grateful to those who Trade Team has been engaged in
great years for relationships sessions for over 90 suppliers, the week. A small number of British
have supported me, from the over recent months. We’ve been
business, trade and and meeting 12 buyers. companies exhibited at the World
Government and from the local busy nurturing key relationships,
investment between experience. In the UK we supported Dubai Future Energy Summit.
British and Emirati communities. promoting the UK, supporting our
our countries and I am I am told by Municipality’s Food Control Unit’s We hosted HMA Amman to
companies while they win major
sure that this helped a lot. those who have Comments from Her Majesty’s visit to the UK where they had promote Jordan to the UK regional
export deals and listening to
Secondly I have been seen many Business Government: a roundtable with UK food and companies here. As I write this in
business to see what more we can
heavily involved in the British Groups across the Recipients of awards have shown drink exporters and we hosted a early February our Secretary of
do to help, in line with our new Export
School Al Khubairat, as a World that ours is a “exceptional service to the UK Creative Supplier Forum for 100 UK State Dr Liam Fox and Nadhim
Strategy.
Governor for more than 12 years and strong one, indeed one of economy and British prosperity, companies to meet 13 buyers for Zahawi, Minister at the Department
In November our Minister Baroness
as Treasurer for ten, with our oldest the best. Many ventures fail through UK export promotion Expo2020. for Education have just visited for
Fairhead visited to support the 150
children starting there in 2002. This here for totally avoidable reasons across sectors from space and The Expo HQ team visited the World Government Summit and
UK companies and meet Ministers
is a wonderful school and objectively and the size of an organisation is technology to fashion, and food Dubai and the Expo Organising enjoyed this opportunity to meet
and officials at ADIPEC, the world’s
is seen as one of the very best in the not necessarily a protection and and drink,” the UK Department for Committee launched the new Online many key officials and Ministers
largest oil and gas show. I’m pleased
region. It is not for profit and has a certainly not a trump card. Getting International Trade said. Marketplace where any company from here and around the world.
to hear that 80% of the UK pavilion
really strong governance model, with involved with the wrong partners, Liam Fox, the UK International wishing to bid for contracts needs I hope that you have also had
for 2019 was sold within one hour of
a mix of parent and Ambassador misinterpreting a sociable meeting Trade Secretary, said: “I am to register. Live opportunities are a productive few months. I want
registration opening.
elected Governors. The School was as a good meeting, construing a delighted that leading business posted on the website on a daily to finish off by alerting you to our
Baronness Fairhead, who is also
founded 50 years ago, before the cup of coffee as a contract in the people are being recognised for basis and you can register at https:// website gov.uk/euexit which has
the UK’s Minister for Expo2020, also
birth of the UAE itself. The Ruler, bag – the best organisations in the their exceptional contribution and omp.expo2020dubai.com. the latest information and advice for
paid her first official visit to Dubai
HH Sheikh Zayed donated land to world have come unstuck in the UAE service to international trade. I Our Head of Defence and Security businesses and citizens to prepare
to meet the organisers and see the
us and HH Sheikh Khalifa became and elsewhere in the region. To win congratulate everyone receiving an Overseas visited Intersec and for Brexit.
UK Pavilion site. The same week
our Sponsor. The Ruling Family has you have to be patient, strategic and honour.” we hosted a cyber-security and Wendy De Luca is Head of DIT Abu Dhabi.
John Mahon our Director General for
4 CAPITAL LETTER Vol. 21 Issue 1 Spring 2019 Vol. 21 Issue 1 Spring 2019 CAPITAL LETTER 5
BBG AND EMBASSY UPDATE BBG AND EMBASSY UPDATE
The world’s safety Notes from the BBG Office
experts put their trust
in British hands. • Sponsors 2019: BBG Abu Dhabi is very grateful for the support of the following companies sponsoring
the Group for the year ahead – Gold: Barclays, BP, Intertek, Kingsbury, King’s College Hospital London,
PwC, Rolls-Royce and Shell. Silver: Al Emarat Society, The Fry Group. Bronze: Delma Exchange, Fast Rent
A Car, Gemaco Interiors, InterContinental Abu Dhabi, Mediclinic, Readymix.
• Departing Committee Members: We would like to offer thanks to those Committee Members who
departed at the end of 2018 – Chris Gilbert, Richard Oliver, Jenny Hunt, Richard Draycott, Douglas Barrett
and Lubna Qassim. We appreciate all of the time and effort they gave to BBG Abu Dhabi.
• BBG Membership Benefits: Did you know that using your BBG membership card you can receive of a
whole host of discounts at various outlets across Abu Dhabi? A full list of the 2019 offers is now available
on our website at www.britishbusiness.org/membership-benefits.org including offers from InterContinental
Abu Dhabi, British Airways, Spinneys, Careem, Pizza Express, Emirates Palace and more.
• Membership Renewals: The office team has been reaching out to members to confirm your membership
renewal for the year ahead. If you are yet to confirm your membership for 2019, please contact us at
office@bbgauh01.ae at the earliest opportunity to remain in receipt of the various benefits of being part of
the Group.
• BBG Baby News: We are delighted to announce that BBG Events & Operations Coordinator Lorna Wright
and her husband Alistair have welcomed a beautiful baby boy and named him Hamish. All at BBG Abu
Dhabi wish Lorna, Ali and Hamish all the very best.
Who is Paying the Insurance Bill?
people are adding extra pressure by on effect on the size of their health
By Mostafa Nab attending hospitals for issues that benefits, pay raises and bonuses.
Medical inflation in the Middle East could easily be resolved with a trip to Work being carried out between
the local clinic. governing bodies in the region is
and North Africa is increasing and
An additional problem surrounds helping to create some commonality
is predicted to be at approximately
patients’ preference for branded around tariffs and coding and
12% in 2018 in many countries in the
types of medication over generic therefore a more balanced approach
region for several years. This figure
ones, in the belief they are better. In in terms of negotiating and offering
is extremely high when compared to fact, in the vast majority of cases the concurrent rates across providers.
overall inflation in the region. ingredients are the same – it’s just the In addition, some providers are
Much of the problem comes from price that differs substantially. developing technology systems that
a lack of education and awareness Insurers are increasingly finding can electronically monitor claims
among some employees and it difficult to negotiate discounts and the dispensing of medication to
OC Robotics’ Spatial Snake-Arm Robot monitors dependents, who are claiming for and best practice rates with identify trends and the potential for
and repairs critical aerospace, construction and expensive and/or unnecessary providers, because each hospital cost savings.
treatment. Under most plans, and associated clinic have their own However, much of the issue revolves
nuclear equipment in hazardous and confined individuals can chose which doctors rules about tariffs for the treatments around educating and creating
spaces. It’s just one example of the expertise and hospitals to use; however, offered, and so have their own pricing awareness among colleagues through
offered by the UK’s 5.5 million companies. they are generally unaware that structure. wellness-associated campaigns so
one service provider’s costs, for In order for an insurer to absorb they better understand when they
Find your ideal business partner at great.gov.uk example, maybe as much as 70% the additional cost, they then have are in need of medical attention, how
more expensive than the exact same to pass that on to employers by way to utilise their medical insurance
service with another. of increased premiums, particularly and what is the most appropriate
OC Robotics great.gov.uk To make matters worse, few people to those employers that want the course of treatment for them. Only
Bristol, UK have access to independent medical best service and the best hospitals then will costs begin to be contained
advice on which provider to use included in their network. and employer-provided healthcare
or even whether a visit to a doctor However, what many employees insurance be used in such a way that
or hospital is required. As a result, do not realise is that they themselves benefits employers and employees
instead of using healthcare insurance are also losing out, as the increased alike.
for high-end in-patient claims or spending on employee healthcare Mostafa Nab is UAE Corporate Leader at
major ailments, a large number of is consequently having a knock- Mercer Marsh Benefits.
6 CAPITAL LETTER Vol. 21 Issue 1 Spring 2019 Vol. 21 Issue 1 Spring 2019 CAPITAL LETTER 7
INSIGHT INSIGHT
PWC ME Survey Findings
Now in it’s 22nd year, the annual and 2017. Yet despite the current know that to be successful in the Digital disruption hits our behind: that includes 43% confirming
PwC Global CEO Survey aims to uncertainty, our CEOs remain slightly region, you have to be successful in region, at speed they have a plan to roll out AI
inform and stimulate the debate on more upbeat about their companies’ the Kingdom. Regional CEOs are grappling initiatives, with only 23% of regional
how businesses are facing today’s medium-term prospects compared to with rapidly changing consumer CEOs already having introduced
challenges. This year, 1,378 CEOs global peers. Streamlining for growth them into their business, barely half
This was the first year that behaviour as the digital revolution,
from 35 industries in more than 90 There is a consensus among the proportion globally.
operational efficiency was included initially slower to have an impact in
territories responded. The findings Middle East CEOs that new market Middle East companies can count
as a choice in the survey and it the Middle East, takes hold at speed.
of the Middle East Survey are opportunities still exist: Egypt has on the support of the region’s
clearly made an impact. More than Middle East CEOs see changing
summarised below. emerged as a major territory where governments, which in recent years
two-thirds of regional CEOs put consumer behaviours and the
an increasing number of regional have ramped up investment in AI
Reality check for our CEOs “operational efficiencies” at the speed of technological change as
CEOs are hoping to grow their development and education. An
Following a significant uptick in top of their list of planned activities the most significant threats to their
business. Our survey also indicates outstanding example is the UAE,
optimism last year, Middle East CEOs to drive profitability in the next organisations. whose ambitious AI 2031 strategy is
that Middle East CEOs are aligned The overwhelming majority of
are more cautious about growth in the with their peers worldwide in 12 months, just ahead of organic led by the country’s first Minister of
region. Only 28% of our CEOs were growth. Both figures are slightly our regional CEOs believe artificial State for AI.
prioritising operational efficiencies to intelligence (AI) will significantly
‘very confident’, on revenue growth remain fit for growth. lower but broadly in line with the The region’s CEOs seem to
over the next 12 months compared to global results. change how they do business in welcome this government backing,
Lastly, our CEOs share their global the next five years, in line with the
33% last year. counterparts’ keen awareness There is one marked regional but there is anxiety about the
Globally, we see a 9% drop in the difference regarding how Middle global results. However, only 23% progress of technology. Cyber-
that new technology – in particular of Middle East CEOs say they have
percentage of CEOs who are ‘very artificial intelligence (AI) – could East CEOs plan to tackle the security threats remain a substantial
confident’ about their revenue growth challenge of streamlining their already introduced AI initiatives, concern for Middle East business
dramatically strengthen their barely half the global figure.
prospects over the next three years, companies’ competitiveness. companies. More than double the leaders, as they do for most CEOs
with many regions experiencing low proportion of Middle East CEOs said In the Middle East, 91% of our globally.
Overall, the region’s CEOs see 2019 CEOs agreed that AI would
levels of confidence. as a year to keep one eye fixed on they expected their headcount to Companies in the region also have
Middle East CEOs are also more decrease over the next 12 months, significantly change the way they did work to do to get the best results
short-term hazards and risks, without business in the next five years, similar
pessimistic about the short-term losing sight of future opportunities. compared with the global survey. from data capture and analytics,
global economic outlook for 2019. Middle East CEOs are markedly to the results we see globally. with less than half reporting that
Only 28% of Middle East respondents Focus on efficiency and less pessimistic than their global Some 66% of the region’s CEOs their data is ‘comprehensive’ for
thought global growth would improve growth closer to home counterparts about the potential said they had either introduced AI to financial forecasts, compared with
in the next 12 months, compared to Greater stability has put Egypt back impact of government red tape on their business or plan to start in the 41% globally, and only 13% saying
42% in our global survey. on the radar for CEOs in the region. performance. Around two-thirds next three years. However companies they have ‘comprehensive’ data on
Taken as a whole, the CEO Its rise this year also highlights the of Middle East CEOs said “over- must accelerate the process of customers’ and clients’ preferences
confidence story in our region is a country’s economic weight, with a regulation” posed a threat to their realising their plans or risk being left and needs.
sobering one. population of more than 100 million, organisation’s growth prospects,
The overall message from Middle and offers persuasive evidence that Do you believe global Do you epect headcount at
compared with 73% globally. economic growth will improve, your organization to increase,
East CEOs who took part in this the government’s market reform In one area – taxation – the stay the same, or decline decrease or stay the same
year’s CEO Survey is clear. Whilst programme is starting to register with anxieties of Middle East CEOs seem over the next 12 months? over the next 12 months?
last year we saw a dramatic jump regional investors. Egypt’s inflation to have been partially eased. Last
in optimism, our CEOs have curbed rate remains high at more than 20%, year, 85% of our CEOs expressed 54%
57%
their enthusiasm both at a global and yet the message from our survey is concern about an increasing tax
regional level. clear: CEOs are cautiously optimistic burden over the coming 12 months,
52%
Their caution is to be expected, about the country’s potential. with the focus on the introduction of 43% 43%
given that oil prices started to fall Saudi Arabia is firmly VAT in Saudi Arabia and the UAE. 42%
again in late 2018, growth in the on the minds of CEOs based in other This year the proportion has dropped
private sector has stalled in the region parts of our region. Our CEOs can to 55%, suggesting that companies
and consumer spending is still feeling see the transformation that Vision may have managed the transition
the impact of job cuts between 2015 2030 is having on the country and better than they anticipated.
IMPROVE
28%
19%
2018 2019 Increase Descrease
Middle East Global Middle East Global
Source: PwC, 22nd Annual Global CEO Survey
8 CAPITAL LETTER Vol. 21 Issue 1 Spring 2019 Vol. 21 Issue 1 Spring 2019 CAPITAL LETTER 9
INSIGHT INSIGHT
The Electrification of Flight
We are on the brink of a radical power the aircraft at certain times a range of over 200 miles.
change in air travel. A new generation during flight. Parallel hybrid systems It has the most powerful battery
of cleaner, quieter aircraft is about feature propulsion through a mix of ever flown, generating 750kW,
to change the way people and conventional gas turbine-driven fans enough power to fuel 250 homes, and
goods are moved. A combination and electric-driven fans with active the e-motors deliver more than 1,000
of new electrical and autonomous energy storage. horsepower, just like an F1 racing car.
technologies, rapid urbanisation and In the future, we foresee fully Rolls-Royce will make history when
increased commuting is creating electric VTOLs for short-range this first fully electric aircraft with a
an exciting new market for electric journeys and hybrids retained for 24-foot wingspan flies in 2020. It’s
vertical take-off and landing vehicles, longer range roles. The first EVTOLs part of a Rolls-Royce initiative called
or EVTOLs. are as versatile as helicopters, ACCEL – short for Accelerating the
In 2018 Rolls-Royce unveiled soaring over traffic. The projected Electrification of Flight – to pioneer a
a concept hybrid EVTOL vehicle annual market size is roughly £1 third wave of aviation: propeller to jet
design that could be adapted for
personal transport, public transport,
logistics and military applications.
billion.
As battery technology improves,
VTOLs will become more electric
engine to electrification.
ACCEL is partly funded by the UK
government and involves a host
meeting our
The Rolls-Royce EVTOL concept
builds upon experience gained
and fly faster and farther to of partners including electric
motor and controller manufacturer customer’s needs for
totAL QuALitY AssurAnce
providing hybrid electric propulsion YASA and the aviation start-up
for trains, naval vessels and other Electroflight. The team brings
applications, and expertise in gas together some of the top minds
turbines, VTOL technology, systems from the world of Formula E
analytics and aerospace regulation racing.
and certification. Rolls-Royce also has “ACCEL is nothing less than
Intertek is a leading Total Quality Assurance provider to industries worldwide.
the industry relationships, expertise a revolutionary step change
at certifying aircraft and collaborative transform in aviation,” says Matheu Parr, WIth a network of more than 1,000 laboratories and offices and over 43,000
successes with industry partners. the regional, or inter-city, manager of the ACCEL project for
EVTOL today are powered aviation market. The additional Rolls-Royce. people in more than 100 countries, we deliver innovative and bespoke Assurance,
by a spectrum of range of hybrid VTOLs, compared To ink their names in the record Testing, Inspection and Certification solutions for our customers’ operations and
systems from full electric with pure electric vehicles, will books, Parr and his team will need to supply chains.
to hybrid systems using gas turbines allow them to fly over less densely develop a battery powerful enough to
to generate electricity. Many early populated areas, enabling these set speed and performance records,
concepts proposed relied solely upon platforms to become testbeds for yet light enough to fly, and stable Our Total Quality Assurance expertise is delivered consistently to a wide range
battery power, which demands an the new emerging autonomous enough not to overheat. of industries from Energy, Petroleum and Petrochemicals, to Construction, Power,
extensive charging infrastructure and technologies. “We’re monitoring more than 20,000
will struggle to extend speeds and Rob Watson, who heads up data points per second, measuring Food and Textiles, with precision, pace and passion, enabling our customers to
distances. Hybrid systems are more Rolls-Royce’s Electrical team, said: battery voltage, temperature, and power ahead safely.
likely to deliver both longer distances “Electrification is an exciting and overall health of the powertrain,
and higher speeds. inescapable trend across industrial which is responsible for powering
One possibility is the use of technology markets.” the propellers and generating thrust.
turbo-electric systems with electric In a taste of things to come, Rolls- We’ve already drawn a series of for more informAtion
propulsion powered by a gas Royce is leading a highly specialised insights from the unique design and
turbine but without energy storage. challenge to build the world’s fastest integration challenges,” says Parr. +971 2 613 1000
Meanwhile, series hybrid solutions all-electric aircraft. They have their “And we’re gaining the knowhow to
feature electric propulsion and eyes set on the record books with the not only pioneer the field of electric- me.contactus@intertek.com
active and energy storage, with zero-emissions plane to hit a target powered, zero-emissions aviation –
batteries that can be relied upon to speed of 300+ mph (480+ km/h), with but to lead it.”
10 CAPITAL LETTER Vol. 21 Issue 1 Spring 2019
intertek.com
Vol. 21 Issue 1 Spring 2019 CAPITAL LETTER 11
INSIGHT INSIGHT
continuing efforts to attract inward However, if data is something to
By Allison Wood investment from both China and
the US. As Gulf Arab states push
be controlled in China, protected
for the EU and commercialised
Gulf Renewable Energy Market Report
Each year, Control Risks decides to diversify their economies away in the US – for the states in the
the Top 5 Risks for Businesses in the from oil, they will actively cultivate region it is increasingly something
coming year. While these are global new economic and diplomatic to be monitored. Government will Development of renewable energy policy frameworks for climate change to increase recycling and energy
in scope, here we discuss how relationships, regardless of whether have little sympathy for companies
within the GCC is a relatively new mitigation; the Green Growth Strategy recovery. There is therefore now
they will drive developments in the and uptake variable. However, a and the Federal Energy Policy – a focus on alternative waste
these are aligned with Washington’s that push back on these new number of common pressures points the latter being the key driver for management options.
business environment in the Middle objectives. regulations.
East and North Africa in 2019. (such as population growth, oil and renewable energy. This seeks to co- Most WtE plant use mass burn
3. Stuck in the middle – with 5. Storms brewing gas reserves, oil prices and climate ordinate emirate-level planning and technologies, but the waste stream
1. Blue muddies Gulf waters change) arise across the region investment on the future energy mix to contains some 60% organics, so other
who? Security issues have been a
that indicate an increased focus on achieve UAE objectives.
As the blue wave of Democrats persistent concern for businesses
options exist including gasification
elected to Congress settles into Tender awards by major state- renewables. Under the Federal Renewable or anaerobic digestions (AD). AD
owned entities throughout the region operating in MENA, particularly Whilst the future energy mix will Energy Strategy 2050, targets for
position, it will further complicate may also be adopted within the
are increasingly going to a more in conflict zones, but in 2019 rely heavily on oil and gas, and some generation by clean energy have been waste-water industry for treatment
US policy toward the Middle East. extreme weather will continue its
US President Donald Trump diverse range nuclear, development of renewable set as 50% by 2050. This is coupled of sludges, a process not currently
of players, rise as one of the most significant resources are planned by all states; with a target of improving energy employed in the UAE.
and his administration will factors in security and operational
aim to ramp up pressure mirroring an with solar making up the highest efficiency by 40% and cutting carbon One of the key players in this market
effort by many risks in the region. The latest UN portion, followed by onshore wind and emissions by 70% in the same period. is Bee’ah who have partnered with
on Iran, push for Arab Panel on Climate Change projects
states to play a greater states in the waste-to-energy. Masdar Clean Energy with the aim to
region to grow that temperatures will rise and These factors indicate that the Waste management develop waste to energy plant across
role in regional precipitation will fall, increasing The UAE has set an overall target of
security and pursue relationships renewable energy market in the region the region.
with a more incidents of droughts. A forecast is developing from a solid demand 75% diversion of waste from landfill by
peace deals in the by the Max Planck Institute 2021. In Abu Dhabi the Environment Doing business in the region
diverse range of base, is potentially a large long-
region – all while expects summer temperatures Agency (EAD) is the responsible The UK government provides support
diplomatic and term sector built on genuine national
keeping an eye out requirements, many enshrined authority for strategy and targets to companies who are looking to
in the national vision statements. on waste and for regulation of the set up within the region via web
These drivers are unlikely to change industry. The implementing body is resources (www.gov.uk/government/
significantly in the near term and Tadweer, which supports on policy publications), and/or via the trade
continued technological development and strategy and undertakes all advisers. Links to these advisers are
is further lowering the cost of energy contractual arrangement for waste on the web pages below or by contact
from renewables. This is therefore management across the emirate. Abu with the DIT energy team in London.
for opportunities economic in MENA to rise more than twice seen as a good long-term market. Dhabi has set their targets at 60%
• www.gov.uk/government/
for American partners. as fast as the global average. The The UAE has a more diversified diversion of municipal solid waste
organisations/department-for-
World Resources Institute estimates economy than other GCC states (MSW) by 2020 and 75% by 2021.
business. However, The trend international-trade/about-our-
emboldened toward that all MENA countries except with active financial, tourism, trade, Solar services#getting-local-market-help-
Democratic more active Egypt and Mauritania will suffer education and healthcare sectors. to-sell-overseas
from extremely high water stress by With an increasing industrial base and The UAE operates an IPP model for
congressional foreign and new large-scale renewable energy • www.export.great.gov.uk
2040. growing population, it is predicted
members will be domestic plant with PPA contracts let under These advisers can provide links to
This is a very real problem for that energy demand will continue to
increasingly vocal in policy changes in grow. The renewable energy sector competitive tender. This is therefore a companies within region who support
questioning US policy and many of these states governments in the region. The
is seen as a key part of meeting this private sector development market. investors looking to develop business
activities in the region. This will not mean businesses will need poorest citizens will be those most Dubai and Abu Dhabi also have
affected by climate change, which, demand, supporting diversification in the region.
fundamentally change the region’s to remain agile and assess how and minimising gas imports. net metering schemes to facilitate
strategic importance to the US in political developments, whether they without significant policy changes, development of roof-top solar, creating Key industry organisations
will cause reduced sanitation, In addition, the UAE recognises
terms of security, counter-terrorism manifest in formal or informal ways, that climate change risks coastal a market for smaller scale generation The region has a number of trade
and trade. However, the newfound may present new complications to increased food prices and in the residential, commercial and
inundation, water supply shortages organisations (e.g. Middle East Solar
debate will attempt to force a closer their operations. Meanwhile, the competition for resources. Three industrial sector. Industries Association) that also
months of demonstrations in Basra and biodiversity reduction. The drive
consideration of US relationships choices that businesses make will to diversify the energy mix not only Waste to energy (WtE) support companies. These provide
and activities in the region. be more closely scrutinised by third (Iraq) protesting the life-threatening market intelligence, business support,
helps reduce carbon emission, so
Infighting and increasingly mixed parties. quality of drinking water was a Waste management is an increasingly supply chain contacts and support
satisfying climate change obligations, important issue, with the UAE
messages will reduce the ability harbinger of the combined effect exhibitions and events.
but has economic benefits. The State recognising that landfill is not a
of the US to use its economic and
4. Clouds gathering of climate change and insufficient of Energy Report 2017 estimates the In addition, the International
Data regulation is one area public infrastructure. Governments satisfactory method of management Renewables Energy Association
diplomatic heft to have a decisive sector will create savings of USD190 of all wastes and there is a desire
say in key conflicts and issues in businesses will need to watch are increasingly coming to terms billion by 2050. (IRENA) which covers the world is
the region. While the US will remain over the next year. Countries in the with the reality of climate change The UAE has been the most based in Abu Dhabi, and has a 2019
an important player in regional Middle East are actively attempting and the political and security active of the GCC states regarding GCC market report.
conversations, particularly around to grow their tech sectors, with implications it will have over the delivery of renewable energy with
companies seeking to capitalise on next decade. Pressure will increase approximately 3GW either operational
Sector events
security, these debates will give
a young, tech-savvy demographic. for insufficient public utilities to be or in development as at the end of To gain up to date information on the
other players increased confidence
However, governments in MENA replaced with newer, more efficient 2017. Additionally, a 27MW waste-to- market a series of conferences and
to hold out for their terms. events are held across the region.
are also increasingly seeking to infrastructure, and international energy plant is planned in Sharjah,
2. Looking the other way regulate the storage and usage agencies and other investors may Dubai announced plans for the These are often supported by the
While US foreign policy will remain of data. Many countries view this be more willing to offer support world largest waste-to-energy plant industry organisation and membership
mercurial, we expect the US–China fundamentally as a security issue: for these projects in an effort to reported at 180MW, and Masdar and of these provides support in attending
address the global issue of climate Environment Agency are piloting solar- and networking.
trade war to be the defining political hacking of infrastructure and attacks
change. powered desalination. Some of the regular events include
dynamic of 2019. Some MENA on state-owned enterprises have
the World Future Energy Summit in
states have felt the effects of these created the perception that sensitive Allison Wood is Senior Consultant, Energy policy and national Abu Dhabi while Dubai has Mena
tariffs more than others but all data should be hosted on home Middle East and North Africa, at targets New Energy, Middle East Waste and
will generally avoid taking sides, territory rather than in the Cloud. Control Risks. The UAE is developing two key Recycling and Wetex.
12 CAPITAL LETTER Vol. 21 Issue 1 Spring 2019 Vol. 21 Issue 1 Spring 2019 CAPITAL LETTER 13
INSIGHT INSIGHT
Six Tips for a Successful Construction Project
Demystifying Private Banking of contracting and an appropriate form of
By Andy Hewitt construction contract. Proper selection will dictate
final price and construction time. It will allocate risk
Construction in the UAE has progressed at for when things change and avoid disputes. If you
Time is the most precious structure; once you’re confident varies so it’s important to find out an unmatched pace for the last couple of have chosen good consultants, they will advise
decades. However, many projects end up you properly. If your consultants are not so good,
commodity we have. what’s covered, you can compare if there is a minimum deposit/
way over the original budget, late and often they may steer you to a form of contract that makes
It’ll come as no surprise that different offers with more clarity. investment to qualify so that the
construction quality is not good. Cost, time life easier for them or allocates them with less
according to a recent study, relationship is mutually beneficial. and quality are the essence of construction
presented at PNAS, “working
What is the bank known for? Some Private Banks have a strict responsibility.
Are you more comfortable with projects. An oft-cited industry principle states
adults report greater happiness criteria, while others take a more that you can only ever have two of these three 4. Selecting the contractor
after spending money on a time- heritage brands or do you prefer relaxed view. cornerstones. And therein lies the rub. The There are many contractors in the UAE hungry for
saving purchase than on a material new-to-market disrupters?
Who are your key UAE has been kidding itself for years that it can your business, so how do you select who is going
purchase.” So whether that’s Whichever suits you, it’s important have all three. But can it? to execute your project? Many experienced clients
swapping the ironing for the golf to do some due diligence to contacts?
So, you have a plot of land or a space and pay lip-service to good procurement practices
club or outsourcing the gardening understand the company’s ethos Developing an on-going want to build or create something wonderful. but ultimately award projects solely on the basis
to spend time on the playground, relationship with a Private Banker How can you avoid the pitfalls we come across of the lowest bid. It should not then be a surprise
reclaiming time offers far more than can be hugely beneficial as they almost every day? that this results in problems and often in expensive
retail therapy. will get to know you, your family disputes. An attractive initial price does not equate
But what about your finances? and your personal and financial 1. Consultants to ultimate good value.
Many people value the support, circumstances, so be sure you Unless you have suitable in-house expertise, Contractors should not be invited to bid unless
guidance and advice a private know who you’ll be dealing with you will need consultants. They will provide they have a good track record, have completed
bank can offer, but often don’t on a regular basis and how design, manage contractual matters, control similar projects to time, budget and quality. All this
you’ll interact with them. Will you costs and coordinate the project. should be verified through a consultant-led pre-
know where to start. Paul Millar,
have direct access or via a call Did you ever buy something based on qualification exercise. Once a level playing field
Managing Director of International
centre or support team? What cost and then regret doing so and wished has been established, then a proper competitive
Private Banking at Arbuthnot you had paid more for better quality? It’s
Latham shares his top five qualifications do they hold tender process can be undertaken. You should
and what experience do they almost guaranteed this will be the case if you have the comfort that the lowest bidder will be
considerations when thinking select consultants based on cost. Generally,
have? Within the wider team, qualified and experienced and will provide what
about choosing a Private Bank. consultancy fees will be around 10% of the
will you have direct access you require with minimum problems.
What do you need from project cost. If the difference between the cost
to a Financial Adviser of the best consultants and the worst is 20%, 5. Avoid changes
a Private Bank? (sometimes called a Wealth it may be tempting to go with a cheap option. Construction projects are complex. Each
Most Private Banks offer an Planner or Wealth Manager) Bad consultants will produce a bad design and one is bespoke. This means that changes
enhanced client experience and/or Investment Manager, select an inappropriate form of contract, your during both the design and construction
compared to retail equivalents, or is everything delivered budget and finances will be poorly managed phases are inevitable. Some changes,
but it’s important to understand through a central point? and management and contract administration because of design errors for example, are
just what this means and who will be a disaster. Quality of construction will unavoidable, but many are made on the
you’ll have access to in the bank.
How does it make you
feel? more than likely be poor and your project will basis of nice-to-have. If your design is as
Ask about the products and be delivered late. good as possible, then the first will not be a
services available. This ranges At the end of the day, you are In short, the 20% saving that you thought was problem. However, once design is complete,
wildly depending on the private looking to find someone you can a good deal will cost much more than the cost changes can lead to additional cost,
bank with some offering a full suite trust to understand and respond of employing good people to design, control disruption and delays – maybe all three.
of banking, lending, wealth planning to your needs. Whether you’re and manage your project from the outset. Avoid change unless it’s necessary.
and investment management, looking to generate an income,
or preserve your wealth to help 2. Have reasonable expectations 6. Dealing with your contractor
while others will offer a more niche
the next generation, you want Many UAE clients demand the impossible. Many clients in the UAE and their
range of services. Does your
expert advice and guidance to Unfortunately, some consultants and consultants think that the way to make the
private bank offer independent and get an understanding of where
help you make the most of your contractors, keen to be awarded work, agree to contractor perform well is to treat them
or restricted advice? Do your it’s going. Is it expanding into new these demands. This is on the basis that when badly. If you have taken into account the
Investment Managers have whole money. Finding a private bank
locations/markets or is it shrinking its the impossibility becomes apparent, everyone advice given previously in this article,
of market access, or are they that connects with you is key to
global footprint? is locked into contracts. The client will then then you will be working with a competent
more limited? What about lending developing a long-lasting, valuable
What’s available beyond the have to accept higher cost, poor quality, late contractor. Dealing with contractors in a
facilities? For example can you relationship.
financial? Many Private Banks completion or all three. negative way will likely lead to expensive
borrow against your investment This is not an exhaustive list, Good consultants should manage and time-consuming disputes. If you work
arrange a series of events,
portfolio? These considerations rather a starting point, so spend expectations. For example: you may have to well with your contractor and ensure your
associations and thought
are important if you’re looking for a time considering what you’re complete a project by a certain date, which is consultants do the same, you should find the
leadership. Are they proactive in
bank who can grow with you as your looking for. Having a financial plan difficult to achieve. In such a case, you should contractor will do their best for you. They will
communicating regular updates
circumstances change and your designed to flex to your changing know that you will have to either pay extra for a identify and manage possible risks, solve
on investments and currency
needs become more complex. needs can give you the confidence fast-track programme or live with less than best problems and go out of their way to provide
movements? How frequently and
Understand the fee structure. that your money is working hard, quality. you with the best project possible.
through which channels do they
There’s no escaping fees, so it’s leaving you more time to spend on The choice is yours, but you need good I hope this helps and if you are
communicate?
important that you understand what what – and who – matters most to advice to make an informed decision. undertaking a construction project, I wish
you’re paying for. The key thing is What is the entry criteria? you. you every success.
3. Contracts Andy Hewitt is Managing Director at Hewitt
to look for transparency in any fee The entry criteria for Private Banks It’s your time. Spend it well.
It is important to select the right method Decipher Partnership.
14 CAPITAL LETTER Vol. 21 Issue 1 Spring 2019 Vol. 21 Issue 1 Spring 2019 CAPITAL LETTER 15
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