ExceptionalEntrepreneurship + Innovation = Growth Middle East and North Africa January–June 2015 EY World Entrepreneur Exceptional Of The Year™ Uday Kotak on innovation in financial services | Middle East and North Africa and North Africa Middle East Meet Andrea Illy — coffee connoisseur How Muhammad Yunus invented microfinance | Entrepreneurship + Innovation = Growth + Innovation Entrepreneurship and social business INNOVATIVE. PASSIONATE. Food for COMMITTED. SOUND FAMILIAR? 2015 | January–June thought DAL Food’s Ihab Abdellatif © 2015 EYGM Limited. All Rights Reserved. EYG no. CY0831. ED None CY0831. no. EYG Reserved. All Rights Limited. © 2015 EYGM on the challenges of doing The EY Entrepreneur Of The Year celebrates gravity-defying innovators business in divided Sudan who build and run great companies. If you’ve been inspired by a successful entrepreneur in your community, or if you are one — visit ey.com/mena/eoy. © 2015 EYGM Limited. All Rights Reserved. EYG no. CY0835. ED None. CY0835. no. EYG Reserved. All Rights Limited. © 2015 EYGM © 2015 EYGM Limited. All Rights Reserved. EYG no. CY0831. ED None CY0831. no. EYG Reserved. All Rights Limited. © 2015 EYGM Where will your growth journey take you next? The first ever pan-Mediterranean EY Strategic Growth Forum will bring together the most influential and forward-thinking representatives in the region to identify and discuss the opportunities for growth and investment. Mark your calendars and plan to join us next The opportunity for April in Rome. Strategic Growth Forum the GCC is now — Mediterranean 2015 understand the 16–17 April 2015 | Rome, Italy challenges and drivers Visit ey.com/sgfmed. that impact you. Nationalization, diversification, global positioning and stability are key areas for governments and businesses to consider for the future of GCC growth. The EY growth drivers report highlights how government and business can work together to address challenges and embrace opportunities in the GCC. For more information, visit ey.com/growthdrivers. SGF Med 2015_Ad_Full page Exceptional Ad_FINAL UNCOATED.indd 1 15/12/2014 17:12:24 Exceptional is an award- winning magazine for and “Agile innovation is helping about entrepreneurs and fast-growth companies. companies respond to the rapidly changing demands of consumers.” The entrepreneurs we interview for Exceptional tend to have different ideas about what it takes to grow a company. Depending on who you talk to, what matters most could be anything from creativity to single-mindedness to sheer hard work. But one thing they all agree on is that, in order to grow, you need access to finance. This idea is summed up by one of the favorite sayings of interviewee Muhammad Yunus: “It takes a dollar to catch a dollar.” Yunus has done more than most to provide finance to those at the bottom of the economic ladder. Four decades ago, he started a modest money-lending scheme in Bangladesh, in the process inventing the concept of microfinance that has become a global force for good. Working at the other end of the scale, serial entrepreneur Alexander Galitsky has traveled the full journey from investee to investor. His latest venture provides capital investment to a wide range of new high-tech companies from Russia and Eastern Europe to help them make the leap into the global marketplace. Collaboration between entrepreneurs and established corporations is also something we are starting to see more of. While the start-up gains valuable funding, the larger company gets the benefit of the entrepreneur’s creative, risk-taking ethos. This concept of agile innovation is helping companies respond Exceptional to the rapidly changing demands of consumers in this digital age. For EY Family businesses face the same challenge as the baton passes from Strategic Growth Markets Leader, MENA generation to generation. Ihab Daoud Abdellatif of DAL Food, the subject of Mayur Pau Assistant Marketing Director, our cover profile, is focusing on innovation to tackle the unique challenges MENA Maya Sawaya of doing business in Sudan. Similarly, Andrea Illy is dedicated to maintaining Marketing Manager, SGM, EMEIA Krista Hind the inventive spirit of his grandfather to ensure the family company, Illycaffè, Marketing Leader, SGM, EMEIA Victoria Gravett continues to thrive. The success of these and other entrepreneurs featured in this issue has enabled For further information them to effect change by stimulating growth. In times of continued economic about Exceptional MENA, please email Maya Sawaya at uncertainty, it is these entrepreneurs and the generations riding in behind [email protected] or call +971 4 701 0490. them that hold the key to solving hard-hitting global problems such as youth unemployment. We look at the impact young entrepreneurs can have on the For Wardour Editor Tim Turner economy and examine the opportunities for growth and investment in the greater Art Director David Donaghy Mediterranean region — Southern Europe, North Africa and the Middle East. Account Director Emma Fisher Catalin Marin Catalin TM Exceptional is published on That’s also the theme of our Mediterranean Strategic Growth Forum in behalf of EY by Wardour, Rome on 16–17 April, and we hope to see some of you there. 5th Floor, Drury House, 34–43 Russell Street, London WC2B 5HA, United Kingdom. Tel. +44 20 7010 0999 Abdulaziz Al-Sowailim www.wardour.co.uk Cover photography Cover Chairman, EY MENA Exceptional January—June 2015 1 Contents Profiles 04 Sixt sense Regine Sixt is helping to drive the car rental company forward. 06 The man who invented microfinance With his revolutionary concepts of microfinance and social business, Muhammad Yunus has helped millions of people worldwide. 14 Food for thought Doing business in Sudan is not easy, but Ihab Abdellatif is finding ingenious ways to succeed. 18 A class act “My strongest Rosemary Squire is the most attribute is that powerful woman in UK theater. I am stubborn.” 20 From Star Wars Muhammad Yunus, to Silicon Valley founder of Grameen Bank Alexander Galitsky’s eventful career has taken him from outer space to cyberspace. 06 26 Prudence, simplicity and humility By following three key principles, Uday Kotak has built one of India’s biggest and most innovative banks. 34 The perfect blend Andrea Illy is the ultimate connoisseur of coffee. 42 Playing to win How Branko Milutinović and his team created the world’s most popular online sports game. 46 Down and dirty 18 34 Will Dean, founder of Tough Mudder, talks teamwork and brand building. 2 “There are economic €153b challenges, and I don’t think The annual economic value locked up in Europe’s unemployed youth. we have seen the last of them.” (page 12) Andrea Illy, CEO, Illycaffè (page 34) Analysis 12 Avoiding a lost generation “We’ve introduced the How entrepreneurs can idea of social partnerships help solve the problem of youth unemployment. to link our brands to traditional food.” 24 Create, incubate, activate Ihab Abdellatif, Managing Director, DAL Food Agile innovation is helping big companies to develop new ideas. Regulars 32 Doing business in … There are opportunities for growth in the diverse countries around the Mediterranean Sea. 14 39 Beyond profit How a fragrance range helps communities in 46 war-torn countries. 40 Intelligence Explore the latest EY events, research and programs. 48 Wise words Discover the lessons our entrepreneurs have 42 learned on their path to success in business. EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. © 2015 EYGM Limited. All Rights Reserved. EYG no CY0843. ED0715 In line with EY’s commitment to minimize its impact on the environment, this document has been printed on paper with a high recycled content. The views of third parties set out in this publication are not necessarily the views of the global EY organization or its member firms. Moreover, they should be seen in the context of the time they were made. ey.com Exceptional January—June 2015 3 30 minutes with Regine Sixt Sixt sense Regine Sixt is Head of International Marketing at Sixt, the world’s fifth-largest car rental company. She explains how the firm remains entrepreneurial after more than 100 years in business. words David Bain egine Sixt is one of Germany’s most partnership with the airline Pan Am. This was the start of recognizable businesswomen. Married to a relationship that opened up the partnership model for Erich Sixt, the third-generation CEO of the us with airlines, hotels and travel agents around the world eponymous car rental company, she has been and helped us grow rapidly. centralR to the success of the business since the 1970s. Beyond her work at Sixt, she has won awards for the work You’ve said that being flexible in business is important of her Regine Sixt Children’s Aid Foundation and for being to you. What do you mean by this? a role model for women in business.