Issue #02

INSIGHT MAGAZINE ENTREPRENEURSHIP AND INNOVATION APRIL - JUNE 2014 this issue q 08 q FREE ZONES 07 q THE SOUGHA INITIATIVE 16 Magazine | www.insightmagazine.ae q THE FUTURE OF BITCOIN 30

Opportunities Abu Dhabi’s Expanding Film Industry

Sumayyah Al Suwaidi Success as an Entrepreneur, Art Curator and Fashion Designer

Exploring Abu Dhabi’s New Cultural Hub How Can Public Policy Promote Entreprenuership? Mobile Payments and Mobile Government - Prepare Your Business Where Do Small Business in the Emirate Go For Funding?

Produced and Managed by The UAE Academy, a fully owned subsidiary of the Abu Dhabi Chamber of Commerce and Industry Business Management Qualifications Program at the UAE Academy

The UAE Academy is proud to introduce its Business Management Qualifications Program. The Program, a hands-on alternative to a business Bachelor’s degree, can be completed in less than four years, is based on the UK’s BTEC framework and is accredited by Edexcel.

The 3-level Program comprises vocational and work-related courses, designed to accommodate the practical needs of employers and allow students to progress to further and higher education. Following completion of the first level, students are invited to join a specialization in Management, HR or Marketing.

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Introduction

Dear

ISSUE # 2 April - June 2014

Entrepreneur, ON THE COVER Sumayyah Al Suwaidi

All content © 2014 UAE Academy.

PO Box 6844, Abu Dhabi, UAE, hen we think about jobs +971 2 691 7777 www.uaeacademy.ae in the media, our natural Produced and Managed by UAE inclination is to fill our Academy imaginary thought bubble EDITOR IN CHIEF with images of cameramen Dr. Abdullah Abonamah and women, TV presenters and writers. W MANAGING EDITOR However, for each one of these roles, our Keith Parker writers have discovered that there are dozens SENIOR EDITOR/AUTHOR Loukia M. Janavaras of behind-the-scenes occupations that never crossed our minds. Spend some time DESIGNER Rahat Ayaz watching the credits roll at the end of a movie This issue is about more than just PRINCIPLE PHOTOGRAPHY and you’ll find that nearly every line holds an inspiration, however. We also introduce Sudheer Jamal, Grapes Graphics, opportunity for the savvy entrepreneur. As you the the basics of starting a business Photo & Videography Co. Abu Dhabi Emirate continues to promote a in free zones within Abu Dhabi Emirate For more information, contact: [email protected] vibrant media industry, particularly though its and bait you to pull out your smart phone hosting of the cleverly-named TwoFour54 free through our articles on mobile payments and COPYRIGHT The information contained is for zone, more of these opportunities for aspiring mGovernment in the Emirate. general use only. While we have made every attempt to ensure entrepreneurs will appear. that the information contained in this magazine has been obtained Finally, we share critical thinking in the from reliable sources, the In this issue, we pull the curtains back on realm of best-practice policy making for the publisher is not responsible for any errors. All information in this the Abu Dhabi film industry and its funding encouragement of entrepreneurship and magazine is published “as is,” with no guarantee of completeness, resources, we walk you through the highlights highlight some original research coming out accuracy, timeliness or of the and promises of Abu Dhabi’s new cultural hub of the UAE Academy into the sources of SME results obtained from the use of this information. In no event will and we hope to inspire you with this month’s funding in the Emirate. the publisher, its related affiliates or anyone else be responsible for small business success story. any decision made or action taken On behalf of the UAE Academy, we thank in reliance on the information in this magazine. you for taking the time to read this magazine All contents are under copyright and hope to hear from you with your thoughts and may not be reproduced in any and suggestions for the next issue. way without written permission.

Sincerely,

The Editors Insight Magazine 4 INSIGHT MAGAZINE APRIL - JUNE 2014 CONTENTS

Features

06 Emirati Production Shows Its True Colors 14 The Future of the Saadiyat Cultural District 18 Supporting Entrepreneurs through Public Policy - Can It Be Done? 22 Where Do Abu Dhabi SMEs Get Their Funding?

14

18

6 24 INSIGHT MAGAZINE APRIL - JUNE 2014 5

Small Business Success

24 Sumayyah Al Suwaidi Shares Her Thoughts on Success 26 MBA Students Discover the Importance of Stress-Testing Their Business Plans 28 What to Expect from Abu Dhabi Free Zones 30 The Sougha Initiative - Helping Local Artisans Compete

38

The Future of Business Today

32 Why Your Business Might One Day Accept Bitcoin 34 Are Mobile Payments Working in Abu Dhabi? 36 Is Mobile Government Here to Stay? 26 38 How One Company Uses Date Pits to Clean Water

Further Reading

40 Book Recommendations for the Motivated Entrepreneur 42 Events and Tenders in Abu Dhabi Emirate 30 6 INSIGHT MAGAZINE APRIL - JUNE 2014

Emirati film production shows its true colors Emirati filmmakers are creating a new wave of cinema, but where do they stand amidst Hollywood’s high-budget blockbusters?

hen the Emirates Film City of Life, a multilingual Emirati Screening challenges Competition (EFC) was film written, directed, and produced Wconceived in 2001 as a by the award-winning filmmaker Ali Sourcing the necessary funds for celebration of short films, it managed F. Mostafa, was only shown on 12 production and distribution is in to attract an impressive 58 entries. screens. fact one of the biggest challenges But there wasn’t a single full-length facing filmmakers, with significant Emirati-produced film at the time. The reasons for this vary – but to a amounts needed to put a production great extent go back to distributors’ set together. Majid Abdulrazak, who The following decade witnessed choices. According to Al Agroobi, financed his 2013 film Bani Adam a series of milestones in the UAE’s Emirati filmmakers lack distributors with a personal budget of Dh3 film industry, with the release of that develop good relationships with million, explains: “We do our best in several Emirati feature films, the independent producers. “Independent filmmaking – our movies are great establishment of new film funds, film studios and production companies quality, the sound, the music, dialogue and the launch of film festivals and end up using their own money to – we explore drama, tragedy and love. competitions. In 2012, the UAE’s gross access these movie theatres and don’t The problem is theatre and audience box office hit Dh437 million. Today, amass any profits,” she highlights. numbers are limited.” EFC is still going strong as part of the Abu Dhabi Film Festival (ADFF), and continues to encourage local filmmaking and film production in line with its goals. Yet much more can be done to make local productions more commercially viable.

“Emirati films are often competing with commercial USA box-office hits and will rarely be given more than a week run in cinemas,” says award- winning filmmaker Amal Al Agroobi, who set up her production company in 2013 after the debut of her first short film, Half Emirati. And while the UAE boasts at least 400 screens that cater to Western, Indian and Arabic cinema, only a small fraction of them screen Emirati films.

For example, The Hobbit: Desolation of Smaug was shown across 78 screens on its opening weekend, while INSIGHT MAGAZINE APRIL - JUNE 2014 7

“In order for a film to succeed – a feature documentary film about it needs a wide audience but the autism – won the ‘People’s Choice cinemas do not show us that Award’ at the Dubai International Film welcome. We suffer many restrictions. Festival (DIFF). If it weren’t for my passion and desire, it is discouraging and painful,” the Emirati director and writer Jamal Emirati director recently reflected. Salim also used his own budget to produce Slow Death, which he finished Similarly, Al Agroobi’s film Half shooting in just 14 days. The short Emirati was self-funded. “I never film was the winner of the Official Gulf thought of looking for funding for Competition at the Gulf Film Festival this film because it was my first and I (GFF). “We faced issues with financial was just focused on getting it done. I support, the majority of funding is didn’t know where to start looking or being pumped into foreign movies,” anything about how the film industry says Salim, who is also the director worked.” of Abu Dhabi TV channel. “This is my first feature so maybe I have made “For my next film however, I have mistakes, but the quality of our films been rather fortunate. A lot of people will get better only with support: respected my work in Half Emirati financial, an ease in permissions and especially as a young, up-and-coming -locations.” director. They trust me so they funded me,” explains Al Agroobi, whose Speaking of feature films, Nayla Al latest project, The Brain that Sings Khaja, founder of D-Seven Motion

”Emirati films are often competing with commercial USA box- office hits and will rarely be given more than a week run in cinemas”

Pictures and the UAE’s first female producer and director, who has yet to produce a full-length film, comments: “I don’t think we should rush into it, it’s a very long procedure, and I think if someone’s going to put in two years of their life, they might as well do it right.”

Indeed, feature films require a great deal of time and money. In 2012, Ali Mostafa’s script for his new comedy film From A to B was among four finalists vying for a Dh367,300 grant at the DIFF, but lost out to an Iraqi filmmaker. Not long after, in 2013, his film was finally given the support it needed by Abu Dhabi’s twofour54, and is currently in the making, by his own company, AFM Films.

Investing in the latest equipment and keeping up with technological 8 INSIGHT MAGAZINE APRIL - JUNE 2014

advancements is yet another Having worked with government Exposing real-life issues challenge and a costly endeavour clients, Al Lamki admits that there are in the production world. “There’s additional requirements in relation The UAE’s relatively conservative always something new in the market. to respecting the UAE’s Islamic culture, however, hasn’t stopped Sometimes it becomes very expensive values and culture, which makes the Emirati talents from tackling sensitive, to acquire certain technologies in- production set more sensitive. As a real life topics with hard-hitting house,” says Jaber Al Lamki, managing matter of fact, it was on this basis productions. director of Beyond Media, an Abu that several foreign films were banned Dhabi-based company that has from shooting within the country, Take Arabana for example, a short produced outstanding commercials due to conflicts of cultural values and film produced and directed by Al for the Abu Dhabi Municipality Green sometimes due to offensive language. Khaja. The 2006 release dealt with Project and Dubai National Day.

“What we do, if a client asks for ”There’s always something new in the market. Sometimes it a specific production method, is becomes very expensive to acquire certain technologies in- outsource some of the equipment to house,” says Jaber Al Lamki meet expectations,” he says.

the disturbing issue of child abuse, a subject which is taboo in the Middle East, yet one that she managed to efficiently compress in a timespan of just six minutes. A few years later, Al Khaja touched upon another controversial topic – the secret dating lives of Emirati women – in her film Once.

And in 2010, her short film Malal, showcasing the challenges an Emirati couple faced after an arranged marriage – won the Best Script Award INSIGHT MAGAZINE APRIL - JUNE 2014 9

a mention of a film, but today we have so many, along with different channels and major film festivals in our country,” says Al Khaja. According to her, the local film industry has gone through a huge metamorphosis since it started.

“Now we have institutions where you can study and go on the field and work on film sets. There are grants, whether festival or government grants, where you can access money, and private investors and private corporations are more aware of the film culture.”

These changes, she adds, have made things easier for filmmakers like herself. “As a producer, today it’s cheaper for me to make a film (locally) at the Gulf International Festival. It was the first Emirati-Indian film, and ”When I was 24, there was never a mention of a film, but today was extensively shot in Kerala. we have so many, along with different channels and major film festivals in our country,” says Al Khaja. Mostafa’s City of Life also revealed a darker side of the UAE. The film, which strived to refute the misconception Local cinema schools than it used to be, because in the past that Dubai was a superficial city, I would’ve had to bring in people from faced initial controversy when a few Most of the UAE’s current abroad, whereas now I don’t have cinemas declined to showcase it. “I filmmakers understandably chose to do that because the expertise is was tired of people comparing Dubai to study abroad to acquire the skills available here.” to Disneyland. Most of them took they need for their careers – Al Khaja one look at the glitzy buildings and earned her filmmaking bachelor Aspiring filmmakers can now study assumed it’s an artificial place. My film degree from a full scholarship at at the New York Film Academy Abu has none of that. It has real people Ryerson University in Canada, and Dhabi (NYFA), which offers short with real problems. Like any other city Mostafa obtained his master’s in film in the world, my film shows both the techniques from the London Film positives and negatives”, the British- School. But the new generation of Emirati filmmaker says. Emirati filmmakers may not need to travel far. From film clubs and The film later proved to be a great academies, to more accessible grants success. According to data by Italia and film festivals, they are now spoiled Film International, it ranked second with choices. in the local box and made over half a million dirhams in its first weekend. “When I was 24, there was never

”Making films is not only building studios and getting the latest equipment, but also learning how to turn stories into visuals and sharing them on such a great platform that GFF has created,” says Imad DeirAtany, the academy’s managing director. 10 INSIGHT MAGAZINE APRIL - JUNE 2014

workshops and two-year bachelor programmes. Outside the campus, the academy also plays an active role through its silver sponsorship of GFF, which it has done for three consecutive years now, and by hosting a series of film production workshops within the Gulf Film Market for university students.

“Making films is not only building studios and getting the latest equipment, but also learning how to turn stories into visuals and sharing them on such a great platform was her final project in the 12-week that GFF has created,” says Imad evening program, underlining the SAE Dubai, the UAE campus of DeirAtany, the academy’s managing importance of schools like the NYFA in Australia’s SAE Institute, acquired in director. Since opening in 2007 as supporting young talents. 2011 by twofour54 tadreeb, also offers Abu Dhabi’s first film school, NYFA diplomas, bachelor’s and master’s has gone from five percent Emirati to “The growth of the GCC film programmes in film production. nearly 30 per cent. industry is dependent on training Like NYFA, one of SAE’s animation Several films that the academy’s and development opportunities for graduates, Mohammed Fikri, went on Emirati graduates acted in or produced emerging filmmakers, which is why to win the Muhr Emirati and Special have also made it to the EFC, including one of the core mandates of the Gulf Mention Award at the 10th DIFF with Aisha Abdulla’s Against the Wind, a Film Market is education,” notes Samr his film Girl & It. short documentary which won the Al Marzooqi, manager of the Dubai Emirates Short Film award. The film Film Market. INSIGHT MAGAZINE APRIL - JUNE 2014 11

Funds: more than just money professionals, the festival went an A great way to break into the extra mile by developing the SANAD industry, gain publicity as well as prize As for financial support, two major Co-production Meetings. These money is by participating in a film funds currently provide grants for meetings are designed to promote competition, such as ADFF’s EFC, or Emirati filmmakers, both established co-productions and beneficial DIFF’s Muhr Emirati Awards, which is and new. SANAD in Abu Dhabi partnerships between chosen SANAD open to all directors originating from grants Dh1.84 million annually to grantees and producers, sales agents, the UAE and has no conditions for the extraordinary feature-length films distributors, film funds, broadcasters subject or storyline. Last year’s EFC and documentaries that are in the and many other industry sectors. saw Hamad Al Awar scoop the Best development or post-production Emirati Film award and a prize money stages, and DIFF’s Enjaaz offers “Grantees in the development of Dh50,000 for his production Daddy production and post-production and post-production phases have ABC, a heart-warming animated short support of up to Dh367,300. Noura been invited to attend the SANAD Al Kaabi, Chief Executive Officer of Co-production meetings where they twofour54 comments: “Over the will have pitching opportunities and ”Over the past four past four years, SANAD has given networking events with key industry years, SANAD has given $1,829,000 (Dh6.7m) in grants, players,” explains Ali Al Jabri, ADFF $1,829,000 (Dh6.7m) in supporting 93 feature films from Arab director. “It’s important to note that film makers, reflecting twofour54’s support for the grantees doesn’t just grants, supporting 93 mandates of supporting talented stop at financing. The SANAD fund feature films from Arab Arabs”. is dedicated to providing year round film makers, reflecting creative and industry advice to the twofour54’s mandates of As part of ADFF’s commitment grantees,” adds Al Jabri. supporting talented Arabs” to assist filmmakers and industry 12 INSIGHT MAGAZINE APRIL - JUNE 2014

”It’s important to note that support for the grantees doesn’t just stop at financing. The SANAD fund is dedicated to providing year round creative and industry advice to the grantees,” adds Al Jabri. film about a young father who realizes a gaming area with Xbox 360, and raising children is hard work. The film a business centre complete with managed to beat 49 film entries from projectors, scanners, Wi-Fi and even 36 countries. beanbags. A stage with a seating area can also be used to host screenings, “What makes this special for me performances or workshops. is that it was animated film that won and I really want to thank the The facilities, which unlike the open Abu Dhabi Film Commission and spaces need to be booked in advance, twofour54 for their support. I really comprise three labs: the Ideas Lab, believe animation is the future,” Al which has a large meeting room with Awar said upon receiving the award. screening facilities and a flipchart; the Edit Lab, containing state-of-the-art Perhaps one of the most innovative equipment and software for video funding concepts created for the projects; and the Sound Lab for audio Arab film industry is Aflamnah, the projects, voiceovers and narrations. first digital platform dedicated to crowd-funding in the Middle East. When it comes to networking – a The web platform gives filmmakers, crucial element of the filmmaking artists, students and innovators the industry – several film clubs have opportunity to raise funds for their popped up in the last few years, projects within 100 days, by getting among them The Scene Club. people excited enough to financially support their ideas so that they can Founded in 2007, the non-profit make it happen. Many film projects on monthly film club provides a much- Aflamnah are nearly funded with the needed platform for the industry amounts they needed, and some have to come together and discuss exceeded the funds they were initially independent productions. It was seeking. created by Al Khaja with the goal of raising film awareness in the UAE, The creative space particularly towards independent productions, as well as to increase film Meanwhile, filmmakers who are industry participation amongst UAE in need of the space and equipment citizens and residents. “Every month to create and post-produce their we organize complimentary events projects can now take advantage where we showcase an independent of twofour54’s Creative Lab in Abu feature film or short films from Dhabi. Designed specifically to support around the world, and we invite the creative talents, the lab’s open spaces film director or producer to attend the are equipped with workstations, event and the Q&A session that takes place with the audience at the end of the screening,” the club states. ”What makes this special for me is that it was animated film that won and I really want to thank the Abu Dhabi Film Clearly, substantial progress has Commission and twofour54 for their support. I really believe been made in the UAE’s film industry, animation is the future,” Al Awar said upon receiving the award. driven by annual competitions, dedicated film funds, and an INSIGHT MAGAZINE APRIL - JUNE 2014 13

expanding group of ambitious Emirati ”Every month we organize complimentary events where we entrepreneurs who are willing to dig into their own pockets if that’s what showcase an independent feature film or short films from it would take to bring their creations around the world, and we invite the film director or producer to light. to attend the event and the Q&A session that takes place with the audience at the end of the screening,” the club states. 14 INSIGHT MAGAZINE APRIL - JUNE 2014 Saadiyat Island: Abu Dhabi’s cultural center

Breathtaking beauty for the eye and the soul

nly a seven minute world’s largest single concentration Company (TDIC), an independent drive from downtown of leading cultural assets three of public joint stock company of which Abu Dhabi and 20 which are winners of the Pritzker Abu Dhabi Tourism Authority is the minutes from Abu Dhabi Architecture Prize. These include The sole shareholder. Although TDIC has International Airport, the , The Guggenheim undertaken this incredible feat of O27 square kilometer Saadiyat Island Abu Dhabi and Zayed National transforming the island, it does so has recently made the international Museum, all prestigious names which while keeping its original inhabitants, news broadcast ‘One Square Meter’ are aiming to make Abu Dhabi an the Hawksbill sea turtles, in mind via on CNN. For anyone who has had the international cultural destination. TDIC’s Hawksbill Turtle Conservation pleasure of experiencing Saadiyat, Programme. The program has allowed this comes as no surprise. It is a With its stunning pristine beauty for over 650 eggs to be successfully precious gem currently in the process of white sand beaches and turquoise hatched, promoting the continuation of becoming a world class leisure, water of the Arabian Gulf, Saadiyat of this internationally critically residential, business and most Island (meaning “The Island of endangered species with the help of significantly, cultural hub, of global Happiness”) is being developed by the developers, contractors and resort proportions. It will be home to the Tourism Development & Investment operators. INSIGHT MAGAZINE APRIL - JUNE 2014 15

Without a doubt, the estimated 145,000 inhabitants of the island, as well as visitors from the surrounding area and international tourists alike will soon find some of the world’s finest beauty both natural and manmade to delight all the senses and fill the heart and mind with wonder and hope.

exhibitions which are organized by and can seat up to 250 inside or in the Shaping a story piece the Abu Dhabi Tourism and Cultural courtyard called Fanr. Authority complete with collections by piece from around the globe. While three Next to Manarat Al Saadiyat and This natural safe haven, idyllic of its major galleries are used for in operation since 2011 is the UAE paradise will connect people and hosting permanent and temporary Pavilion which was originally designed cultures through the universal art and cultural exhibitions, the fourth for the World Expo 2010 in Shanghai language of art and will do so through gallery houses The Saadiyat Story, an and moved to its permanent residence some of the best international interactive narrative about the island’s of Saadiyat Island piece by piece. partnerships in the field. Already in history and culture and its role in Inspired by the UAE’s desert dunes, operation is Manarat Al Saadiyat realizing Abu Dhabi’s vision. Manarat the Pavilion is considered as being one which means “the place of Al Saadiyat also has an events space, of the most innovative architectural enlightenment.” Manarat Al Saadiyat a sales center where one can purchase and integrated designs in the world. serves as an art and culture center museum quality gifts/stationary and a Comprising two dune-shaped peaks, complete with multiple gallery spaces. restaurant which offers a wide variety its stunning design attracted almost The center hosts projects and art of regional and international cuisine 2,000,000 visitors as it hosted 16 INSIGHT MAGAZINE APRIL - JUNE 2014

presenting different civilizations in the same space and galleries, universal themes and common influences will be highlighted to illustrate similarities and exchanges arising from shared human experience which can surpass geography, nationality and history.

A promising year for Abu Dhabi and this great nation to look forward to in the near future is 2016 when the is scheduled to open its doors and will also bring together people from all walks of life to learn about and share in Sheikh Zayed’s vision, namely a passionate belief in education, conservation, environmental sustainability, heritage and culture all supported by his exhibitions that highlighted the history and the engineering firm of Buro humanitarianism and strong faith. In of the UAE. Furthermore since 2011 it Happold, The Louvre Abu Dhabi, set a signed agreement with the British has been one of the main venues for for completion next year, will occupy Museum to provide expert curatorial the annual Abu Dhabi Art Fair. 24,000 square meters (260,000 sq ft) and operational advice and counsel on and will be covered by a roof shaped the development The Zayed National Flight beyond like a flying saucer. The geometric lace Museum will serve to tell the story of dome was inspired by the interlaced Sheikh Zayed bin Sultan Al Nahyan enlightenment palm leaves traditionally used as (1918–2004) and his unification of roofing material and resulting in the United Arab Emirates as well The next outlet to open its doors an enchanting rain of light. France as to exhibit the long history of to the art aficionados is a creation agreed to rotate between 200 and 300 the region and bridge its cultural stemming from The Louvre Museum, artworks during a 10-year period; to connections across the world. For its one of the world’s largest museums provide management expertise; and architectural design, an international established in Paris, France, to provide four temporary exhibitions competition was held and twelve in 1792 which is renowned for a year for 15 years. The art will come leading architectural firms from ten maintaining and fostering a genuine from multiple museums, including different countries competed. To be commitment to cultural, social and the Louvre, the Georges Pompidou sure, creating a unique and dramatic artistic development. The Louvre’s Centre, the Musée d’Orsay, Versailles, building in honor of Sheikh Zayed was main responsibility is to conserve, the Musée Guiment, the Musée Rodin no small task. The winning design protect, restore and develop France’s and the Musée du quai Branly. By went to Foster + Partners and was national art treasures spanning inspired by the dynamic of flight and early royal collections to the most recent as well as the collections obtained from around the world. This constitutes a necessary and steadfast commitment and universally recognized professionalism displayed by both the museum’s scientific and academic staff. In March 2007, a 30-year agreement was signed by French Culture Minister Renaud Donnedieu de Vabres and Sheik Sultan bin Tahnoon Al Nahyan to establish The Louvre Abu Dhabi. Designed by the French architect INSIGHT MAGAZINE APRIL - JUNE 2014 17

of block and cone-shaped connected galleries which will appear to be piled on top of each other, making the museum a centerpiece in the island’s architectural landscape. If there were no music

Last (part of a second phase of development for Saadiyat Cultural District) but far from least, will be the Performing Arts Center created with the intent to attract world-class performers of opera, drama and music to showcase their talents and captivate Abu Dhabi audiences of all ages. In line with the ethos of Saadiyat Cultural District, all artistic mediums will be promoted; thus, contemporary the feathers of a falcon. Sheikh Zayed Avenue in New York and the Peggy and classical music, ballet, opera, was known for his love of falconry Guggenheim Collection on the movement theatre, dramatic and and this design is an iconic symbol Grand Canal in Venice, and provides experimental performance will be for the nation. Each steel feather programming and management for staged as part of the wide array of the (the tallest will be 125 in height) will the . most innovative artistic performances contain a gallery space where visitors The Deutsche Guggenheim in Berlin known to the world today. Zaha can explore the history and culture of is the result of a collaboration, begun Hadid a well-known Iraqi/British the UAE, the museum will surely be a in 1997, between the Guggenheim architect is the designer behind the magnificent addition to the Saadiyat Foundation and Deutsche Bank. forms inspired by organic structures skyline. Surrounded by water and The Guggenheim Abu Dhabi will be with natural themes such as leaves, nestled within beautifully landscaped the largest in the network. Gehry’s stems, buds, fruits and branches. The gardens, the site will be a tribute intricate design features exhibition space has been designed to maximize worthy of honoring the memory of galleries, education and research acoustics and utilize natural energy Sheikh Zayed. space, a conservation laboratory, a from the massive windows which center for contemporary Arab, Islamic harness the sun’s light. Constant With a look to the future and Middle Eastern culture, and visual contact with the environment and in the island’s scope for a center for “art and technology.” is possible with magnificent sea views contemporary art and cultures is The Perhaps what sets it apart from reminding one that a frolic in the deep Guggenheim Abu Dhabi, a museum the previous structures is its source sand to beachcomb, losing one’s self of modern and contemporary art of inspiration—traditional Middle- in the surrounding tranquil beauty designed by which is Eastern covered courtyards and wind or relishing the sublime water is but scheduled for completion in 2017. towers, which in the past were used to a few steps away. Without a doubt, Founded in 1937, the Solomon R. cool homes exposed to the desert sun. the estimated 145,000 inhabitants of Guggenheim Foundation is a non- Furthermore the museum’s clusters the island, as well as visitors from the profit organization dedicated to of horizontal and vertical galleries of surrounding area and international promoting the understanding and various sizes will be connected by and tourists alike will soon find some appreciation of art, architecture planned around a central, covered of the world’s finest beauty both and other manifestations of visual courtyard, incorporating natural natural and manmade to delight all culture, primarily of the modern features intended to maximize the the senses and fill the heart and mind and contemporary periods, through energy efficiency of the building. with wonder and hope. exhibitions, education programs, The largest galleries will offer a research initiatives, and publications. grand scale for the display of large - Loukia M. Janavaras Currently the Solomon R. Guggenheim contemporary art installations. Foundation owns and operates Sections of the building will be four the Guggenheim Museum on Fifth stories in height and contain clusters 18 INSIGHT MAGAZINE APRIL - JUNE 2014 UAE Economic policies boosting entrepreneur confidence

ntrepreneurship is one of entrepreneurship is crucial, and even of the people of the UAE,” Sheikh the biggest buzzwords in more so in the UAE, where fostering Nahyan bin Mubarak, the Minister today’s business world, and start-ups, and small and medium of Culture, Youth and Community for good reason. Not only enterprises (SMEs) would enable the Development recently stated at the does it lead to the innovation economy to continue flourishing well Abu Dhabi Entrepreneurship Forum. Eof new products and services in the after oil production ceases. market, but it intensifies competitions New laws coming soon and drives job creation, ultimately “The state is fully committed to translating into economic growth. providing a general environment Three new laws are currently that encourages entrepreneurship, being finalized in the UAE and highly It is easy then to see why the innovation and creativity in order to anticipated by the SME community: government’s role in supporting realize the growth and determination the Companies Law, the Bankruptcy INSIGHT MAGAZINE APRIL - JUNE 2014 19

Law and the SME Development Law. it’s around 60 percent. We’d like to that the country has created for rapid The SME law in particular was recently see it higher”, the UAE’s Minister of expansions and unlimited growth. approved by the Federal National Economy, Sultan Saeed Al Mansoori Council and is expected to receive final said at the Fourth UAE Conference of Meanwhile, an updated version of clearance from the UAE Cabinet soon. SME and Innovation. This mandate the Companies Law that was passed Once implemented, the legislation will sends a strong message to large last year and likely to be enacted ensure increased government support corporations about what is required to by the summer of 2014 –is also to SMEs, with one provision requiring support business growth in the small- expected to benefit investors and government institutions to allocate at business sector. As a matter of fact, help small businesses to start up. least 10 percent of their procurements many of the UAE’s corporate giants For example, SMEs will not need to to SMEs. were at one point only start-ups. meet any Emiratization requirement in the revised law. "But if they employ In addition, the new law will require Gulftainer, a subsidiary of Crescent Emiratis it would be better. It would companies in which the government Group, began as a small port operator ease procedures in government holds at least 25 percent equity to in Sharjah back in 1976. Today it is ministries," Ali Al Nuaimi, deputy award a minimum of five percent of the world’s largest privately owned head of the Federal National Council’s their contracts to SMEs. port operator. Kcal, a healthy fast finance committee, said. food chain that started off with “The reason why we work very hard one outlet in 2010, currently runs Most importantly, the new law toward finalising this (law) is that this six outlets in Dubai and plans to removes the minimum of Dh150,000 sector needs to be organised in a way open six more in Abu Dhabi and two capital to start a limited liability that will give it a much better push in Dubai. These and many other company and will set up a single towards hopefully participating more inspiring success stories prove the nationwide register of company into the GDP of the UAE. Currently encouraging business environment names. "This is a big change in the law. It will encourage small businesses to start up - it will be easy to establish a company, especially since there is a no-tax requirement. We made sure that the UAE has no intention to introduce taxes," Al Nuaimi said. Having a revised, updated commercial Companies Law, he added, will give investors more confidence as rights will be protected with specific articles. Reducing fear of failure

Many measures are already being taken to encourage entrepreneurship in the UAE, from competitions and youth programmes to industry- targeted initiatives, yet there is plenty of room for improvement when it comes to protecting newcomers if they fail in the market. According to the World Bank’s Doing Business Report, which ranks each country by its “ease of doing business”, the UAE rose to the 23rd place in 2014 from 26 in 2013. But when it comes to resolving insolvency, the country ranked in the 101st place, behind Azerbaijan, Togo and Senegal. 20 INSIGHT MAGAZINE APRIL - JUNE 2014

Moreover, among 189 economies entrepreneurs from taking the risk of To that end, governments should worldwide, the UAE ranked 98 in the setting up a business. make some areas of business strength of investor protection index, operations mandatory to improve and 86 in the ease of getting credit. A draft bankruptcy law designed corporate governance, by maintaining to support companies in financial financial documentation such as “There are some very basic ways difficulties is currently being reviewed balance sheets, profit and loss sheets that regional governments can provide before it reaches the final stage of and forecasting, which is currently not support for SMEs, many of which enactment. This legislation should a regulatory requirement in the region. they are already doing but some make it possible for failed businesses which could still be implemented,” to be shut down in a structured said Dr. Adeeb Al Afifi, Director of manner, and enable shareholders to Foreign Trade and Export at the recoup some of their lost investment Abu Dhabi Department of Economic – although it remains unclear when Development. One of these, according such a law would be introduced. to him, is the implementation of bankruptcy laws that allow those that Another area that requires make an effort to start a business, to government intervention relates to recover and try again if they fail. the bookkeeping methods adopted H. E. Hussain Jassim Al Nowais, by the country’s SMEs. Figures from Chairman, Khalifa Fund for Enterprise “Not all ideas will work. In the United Envestors MENA show that around Development States, most entrepreneurs fail an 60 percent of investors reject projects average of six or seven times before from UAE SMEs in the first 30 minutes Out-of-the box being successful. The reason they of evaluation, and a further 25 percent are able to keep on trying is because are rejected within the first three programs bankruptcy laws allow the individual hours. The reason, according to Al Afifi, or company another chance to get it is because a large number of SMEs The UAE’s existing entrepreneurial right,” he noted. lack the mandatory fundamentals ecosystem enjoys the support of to entice investors. “Many SMEs do approximately 40 entities, including The UAE Companies Law does have not have the right documentation, educational, governmental, private, some articles that cover insolvency, particularly financial documents and entities that target specific but there is no specific legislation for needed by investors to make sectors. These entities, which bankruptcy, a fact that may prevent decisions.” include Abu Dhabi Chamber, Dubai INSIGHT MAGAZINE APRIL - JUNE 2014 21

H.E. Mohamed H. Al Muhairi Director General ADCCI

Chamber, Khalifa Fund, Dubai have recovered from addiction at Mohammed Thani Al-Romaithi, SME, Injaz, Ruwad Establishment, the National Rehabilitation Center, Chairman of the Abu Dhabi Chamber twofour 54, and Mubadala, to name and Amal, dedicated to people of Commerce and Industry. a few, are all involved in promoting with special needs, in addition to entrepreneurship throughout the initiatives aimed at reviving the fishing “Innovation and rapid progress country. profession. Most recently, Khalifa often arise as a direct result of small Fund launched the second Ibtikari business activity, and there are In Abu Dhabi, the government- competition, organized in collaboration several ways in which the government backed Khalifa Fund for Enterprise with Abu Dhabi Tourism Authority, can facilitate the growth and Development has financed 582 and Information and Technology establishment of SMEs in the Emirate. projects with investments exceeding Communications (ICT) Fund. Conceived The Abu Dhabi Chamber has had Dh900 million since its inception last year, the initiative saw the significant success in supporting the in 2007. It has done so through participation of 200 Emiratis, resulting growth of SMEs,” noted His Excellency innovative programs, including in 12 ICT projects getting financed with Mohammed Helal Al Muhairi, Director Khutwa (a step); Bedaya (a start); Dh15 million. General of the Abu Dhabi Chamber of Zeyada (an increase); and Tasnea Commerce and Industry. (manufacture), in order to cover all Equally innovative is the approach categories of projects. taken by Khalifa Fund to announce the The UAE is evidently creating a competition – it sent out an invitation win-win situation: by making national Beyond these programs, initiatives to Emirati employees in more than 67 laws and regulations conducive to have been thoughtfully crafted for government and semi-government business, entrepreneurs gain from every segment of society; for instance, entities, as well as four national having supportive policies in place, and Sougha, which strives to preserve universities. the economy thrives on substantial the cultural heritage by encouraging “When discussing methods for socio-economic benefits. entrepreneurship in handicrafts; and boosting economic growth, the Al Radda, a program designed to treatment and encouragement - Heba Hashem reintegrate inmates into the business of SMEs must be included. This sector after having served their term. segment of the economy tends to offer a significant number of job The fund also went further by opportunities and large potential establishing Ishraq, for those who for growth,” said His Excellency 22 INSIGHT MAGAZINE APRIL - JUNE 2014 SMEs Sources of funding

n the Emirate’s economy, there is a SMEs worldwide is funding. If the UAE available reflects the diversity of SME large contribution to be made by small is to continue to thrive, it is critical characteristics and their specific finance Ibusinesses, specifically those who that entrepreneurs are able to start, needs. Which vary based on the level are involved in sales to international finance and grow a business without and stage of business. Examples of markets. They are perhaps seen as the any unnecessary impediments. In this these sources are: Bank Loans and most important drivers for innovation. article, the three stages of the life of overdrafts, Trade and equity Financing, Many researchers suggest that there SMEs will be analysed and critically Government grants and projects. is a complex two-way relationship assessed. between growth and innovation. In fact, these researches also show Many aspiring entrepreneurs in the that 78% of businesses who prepare SMEs contribute 30 to 35 per cent UAE cannot afford to get started in detailed business plan that critically of the UAE's GDP. Furthermore, the the first place, because of high set-up assesses the financial resources majority of new jobs created in the costs. In the UK, it takes about £100.00 manage to breakeven in their first t UK are created by small businesses. to register a small Enterprise and it year of operation. Large businesses contribute less that takes a couple of hours to process 35% to new job creation compared to the application. In the UAE, however, Securing a bank loan at the start- 65% for small businesses. A recent it takes a minimum of AED18,000 up stage is very difficult. In fact, SMEs research conducted locally at the UAE in licensing and admin fees plus, of receive less than 4 percent of total bank academy, a subsidiary of the Abu Dhabi course, the tenancy costs which ranges loans issued across the Emirates. In Chamber, suggests that existing small between AED30,000 to AED60,000. Banking terms, investing in start-up is businesses contribute 50% of new jobs Although breakeven is crucial for classified as too risky, which leads to created, whilst new business start- survival, making profits shouldn’t be very high interest rates on loans - some ups contribute 26%. The number of the main concern in the first stage of in excess of 20 per cent. Of course, in Licenses of Small Businesses issued in starting a business. Financial success technical terms, there are no collaterals Dubai escalated in the last year to more at this stage doesn’t only depend on the as SMEs don’t necessarily have tangible than 15,000, according to the emirate's availability of the financial resources, fixed assets as yet. Department of Economic Development but also the decision making criteria (DED). In 2012, the UAE was placed used to choose the suitable sources of Having said that, many banks and 34th in the World Bank’s 2012 Ease funding. Traditionally, finance is used financing firms in Dubai and Abu Dhabi of Doing Business ranking for Small to fund working capital and investment, are becoming increasingly interested in and Medium Businesses. This ranking but interestingly, of those seeking SMEs and are trying to foster growth depends on a number of factors like the finance, most SME employers seek debt in this sector. In 2013, National Bank relative ease at trading across borders finance (40% seek loans and 35% seek of Abu Dhabi had a target to finance and the attractive feature of not paying overdrafts) similar to those currently around Dh367.3m of funding to Abu corporate or income taxes. There are using finance. Only around 1-2% of Dhabi chamber members that are areas, however, that the countries in those seeking finance seek equity SMEs. This amount was loaned at the region as particularly in the UAE are finance. Whilst many SMEs use a credit competitive rates in a matter of days. still a surprising laggard. These include card, a lower proportion actually seeks a Other banks followed suits with the the regulatory role of the government new credit card. largest contributors being Gulf Finance, in enforcing contracts and resolving EIB and Mashreq. Bank loans are insolvency. By looking at the graph on next often considered among the riskiest page, one can see that the wide and most expensive of all sources of One of the major obstacles that face variety of different types of finance funding. A recent survey indicated that INSIGHT MAGAZINE APRIL - JUNE 2014 23

2007 2010

60% 56%

50%

43% 40%

30% 27%

20% 21%

10% 10%10% 8% 9%

4% 2% 2% 2% 2% 3% 2% 2% 3% 2% 2% 0% 1% 1% 1% 1%

Others Marketing

Improving buildings Don›t know/refused Management buy out Buying land or buildings Working capital/cashflow Research & DevelopmentBuying another business Business expansion/growthTraining/staff development Capital equipment of vehicles (Reason for seeking finance)

banks continued to be the key providers availability of finance and what can dirhams a year. for trade finance in the UAE. be done to increase it. Governments play an important role in supporting Another important project in the Another important method is Trade and financing SMEs. In the UAE, the UAE is the Mohammed Bin Rashid Financing. This has become increasingly government is the main player in this Establishment for small and medium common in the UAE, and most local and sector. Thanks to the high oil prices, the sized enterprises development (MBRE), international banks offer services to government can afford the financial one of the institutions run by the Dubai small and medium-sized enterprises. burden. However, policy makers know Department of Economic Development, The process depends on allowing very well that the country will be in which aims to support and finance SMEs to trade in the market via banks, trouble in the future if oil prices go projects of young entrepreneurs and which in turn guarantee payments down. Especially, if we take into account 100 projects will be financed every year. through letters of credit to sellers and the lavish welfare system in the will offer “document against payment” country. This has resulted in a series of In conclusion, There are a high and “document against acceptance” initiatives and efforts to lure citizens number of people who want to set-up services. into the private sector, and appealing businesses, but there is a huge gap to their entrepreneurial instincts is between their aspirations/intentions One of the biggest companies that one way to do this. These government and the actual delivery of setting provide such a service is Dubai World, initiatives represent the best and safest up a business, particularly with the which is owned by the government sources of funding for SMEs. young more than any other age group. of Dubai. Dubai World is a holding That gap is not only about skills and company wholly owned by the Emirate Perhaps Khalifa Fund and Dubai confidence, but also access to finance. of Dubai that owns entities in over 100 SME and other state-backed bodies cities internationally. Dubai World’s promoting entrepreneurship play an However, this sector is needed for portfolio is focused on transport and essential process. These bodies don’t growth. It is estimated that it creates logistics, dry docks and maritime, urban only offer financial services, but also around a 1.5 million jobs each year. development, investments and financial advisory and counselling services. There are many initiatives to support services, and energy and natural it. However, ultimately, it depends on resources. These programmes are building entrepreneurs’ ability to do research, momentum. The Khalifa Fund has plan and carefully choose the right Furthermore, there has been financed 375 projects worth a total paths, strategically, financially and also much debate between Government, of 700 million dirhams since it was emotionally. finance providers, SMEs and their founded. It is now committed to representative organisations on the financing at least 150-200 million - Hisham Al Saghbini 24 INSIGHT MAGAZINEMAGAZINE APRIL APRIL - - JUNEJUNE 20142014

A chat with an Emirati entrepreneur

t the young age of 33, includes her own line of abayas as well well locally and internationally, and Sumayyah Al Suwaidi from Abu as accessories, daily outfits and stylish Al Suwaidi now also plans on working ADhabi has a lot to be proud of. Western clothes. on a ready to wear line that is priced The Emirati artist, curator, fashion reasonably for the masses. She has designer and successful entrepreneur The boutique is located on Delma also launched a trade show, Abu Dhabi has achieved a phenomenal amount Street in Abu Dhabi, and Al Suwaidi Fashion Days, as well as hosting for someone so young. She is known says that expansion is imminent in company LEVEL V. as the first Emirati female digital the form of a second store in artist, owns a well-known boutique Mall as well as an online retail store. Al Suwaidi explains how she (Grafika), designs her own fashion “Grafika was always in the back of founded Abu Dhabi Fashion Days to label (Seen), and is also a successful my head when I was in school so the not only host established fashion art curator. minute I had a job and a monthly designers but to also create a new salary I started it immediately; this platform for the aspiring designer, Al Suwaidi started her career as an year is Grafika’s 10th anniversary,” which is known as The Designer artist in 2001 and says that she draws says Al Suwaidi. Alley. Here attendees are able to walk inspiration from her surroundings. “My through all the designer’s creations inspiration is my daily life, everything As with any business, there without having to go into individual I see, everything I encounter, from have been ups and downs, and booths. “ADFD has also launched two scenery to dealing with people. The the entrepreneur says that she competitions, Best Emerging Fashion emotions that I go through during the has encountered her fair share of Designer and Best Fashion Illustrator day are mainly my source of energy obstacles. “I have faced a lot of both to support and enhance the when I am painting,” she elaborates. challenges,” she explains. “I can’t state career of designers in the UAE,” A series of digital photographs them all in this interview but if you’re explains Al Suwaidi. inspired by the late Sheikh Zayed Al opening a business solely depending Nahyan quickly gained her recognition on your monthly income you must The Emirati also explains how ADFD in the industry, and she went on to have a very strong will to continue. has launched a fashion/art exhibition curate shows such as the artistic In terms of highlights, I would say with the title of Dress the Mannequin, event Ramadan Art Bazaar. that seeing my store nominated as which brings together 20 creative the best independent multi brand Emirati men and women under one The seed for her own business was boutique in Abu Dhabi during the roof to recreate the doll miniature already sown back in her schooldays, Time Out Abu Dhabi Awards last year mannequin in their own unique way. however, and once she had a regular stands out,” she says. “Creativity is very important as it salary from full time employment, Al keeps the soul alive,” she says. “This Suwaidi set out to open Grafika. What What is clear from talking with Al is what I believe and is just one of started out as a gift store in 2005 was Suwaidi is that she has an insatiable the reasons why I started Abu Dhabi then established as a multi-brand hunger to continue creating and Fashion Days.” boutique in 2009, which now also exploring new avenues for business. Her label, Seen, has been received

‘‘To me, my business is now part of my daily life. I don’t make special time for it, instead it has become routine and the secret is to make sure that everything is under control. I like to be involved in every aspect of my business, so I make sure I read every email or request that I receive.’’ INSIGHT MAGAZINE APRIL - JUNE 2014 25

LEVEL V is a hosting company, be involved in every aspect of my Listen to your heart and translate it which Al Suwaidi launched after business, so I make sure I read every into practical and productive thoughts noticing that so many stores opening email or request that I receive,” she in your head,” she says. “You need to in the capital lack footfall or the right explains. have passion for whatever business kind of customers. “LEVEL V supports you choose to get into and you must the stores and events through Al Suwaidi says she believes that give it 100 percent attention.” hosting, managing and marketing to Emiratis face a number of challenges ensure that people go into the stores when trying to set up their own With successful brands and and that they have a good time,” she businesses. “Young Emiratis will face businesses under her belt, you explains. many challenges especially financial would think that Al Suwaidi would challenges so they have to be very be happy to take rest now, but like With so many businesses and smart when it comes to how and any good entrepreneur, she’s already projects on the go simultaneously, it where they spend their money and thinking of her next steps. “For now, is clear that Al Suwaidi is very adept they must study every step of their it’s opening Grafika’s second branch, at managing her time effectively. She business before they take it,” she preparing for Abu Dhabi Fashion Day’s says that prioritising is key to time advises. second season, which will happen in management. “First comes my family September, launching the ready to and then the business,” she muses. Al Suwaidi says that Emiratis wear collection for SEEN and preparing “To me, my business is now part of looking to follow her route into for my solo art exhibition hopefully in my daily life. I don’t make special time becoming an entrepreneur need to be 2015,” she concludes. for it, instead it has become routine mentally strong. “Don’t let the little and the secret is to make sure that things get to you, focus on your goal - Andrea Anastasiou everything is under control. I like to and don’t let anything distract you. 26 INSIGHT MAGAZINEMAGAZINE APRIL APRIL - -JUNE JUNE 2014 2014

Emirati entrepreneurship from theory to practice

our young aspiring Emirati heat people here have a tendency entrepreneurs enrolled in the to relax after work rather than opt FMBA program at Abu Dhabi to work out. The group considers School of Management (ADSM) this project as something more than are a step ahead in making their a business plan: it is a new way of inspiration a reality. As First Cohort thinking and managing one’s lifestyle MBA students at ADSM they recently and habits. Incorporating a healthy participated in “ADSM Ideas Gallery” lifestyle will also be cost-effective for by presenting the status of their the organizations, as employees will SLE (Signature Learning Experience) rely less on health insurance. There project. SLE is an integral part of is a need behind the project, which the learning experience at ADSM, makes it seem feasible and that it where students learn how to identify will be actualized and implemented. innovative ideas and develop them According to their calculations, it is into full-fledged business plans. also profitable. Most important is In doing so, they are able to learn location. The students are aiming for how theories are applied to real-life Abu Dhabi’s new capital district due projects and develop their innovative to be developed in a few years’ time. and entrepreneurial thought and It’s very likely that with the necessary action. funding, their dream will one day become a reality. The students Hamad Ahmed Alzaabi, Mariam Saeed Alzaabi, Nasir Entrepreneurship is an aspect of Saeed Alzaabi and Ahmed Saeed their MBA program at ADSM that Alzaabi (not pictured) designed a the students will carry forward in health club business model as their the future. That is precisely the project. In addition to their studies, scope of the Ideas Gallery --to all students are employed full time. allow students to create innovative The inspiration for their idea came ideas which can be transferred into time the group told Insight Magazine from personal influences and reasons successful business models or social they are learning tools which can be as well as a practical and realistic entrepreneurships. The students applied in their current field of work need for the local community. Until have the opportunity to showcase through practical application. Also now there is a shortage of places for the progress of their work in relation getting ideas from other students parents to bring their kids while they to their stage of study and can with other projects that are feasible work out and also kids start working receive feedback from their peers and and profitable has been beneficial. o