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The Middle East connects on social media

15 March 2016 Comments (1) Business, Featured, Middle East

Facebook and WhatsApp are the most popular social platforms. But more people in the region are using new tools for sharing photos and videos.

On the 27th day of Ramadan last year, millions of people around the world were able to see photos and videos taken by pilgrims in Mecca during a social media campaign that gave non-Muslims a rare glimpse of worshippers in the holy city.

The #Mecca_live campaign, in which 300,000 people used Snapchat and Twitter to capture or distribute images, was emblematic of the growing use of social media in the Middle East and North Africa.

Facebook and WhatsApp dominate social media in the Arab world. But there is growing use of new tools for capturing sharing photos and videos, content that can cross boundaries of cultures and language in the diverse region.

#mecca_live

Social platforms enable consumer outreach

Several studies have documented to rise in social media in the Middle East and North Africa. Information about usage is important for businesses and institutions that want to reach users at a time when digital and social media are changing practices and attitudes in the region, especially among young people.

Businesses, news organizations, and other institutions that want to understand and connect with the region’s growing market and figure out how to direct their efforts need to understand social media usage, said Damian Radcliffe, a University of Oregon journalism professor who compiled the most recent report.

While Facebook is the dominant social platform in a number of countries, WhatsApp, Instagram and Snapchat have pockets of popularity, Radcliffe writes in his fourth annual report, “Social Media in the Middle East: The Story of 2015,” Radcliffe looks at data from a variety of sources to outline social media usage in the region.

Facebook has 80 million users in region

Facebook has about 80 million users in the region, which has a total population of more than 350 million, and is adding more than one million new users a month. By comparison, the United States has 195 million Facebook users.

Egypt has the most Facebook users – 27 million – or about a third of the nation’s population.

At the same time, the United Arab Emirates has the most active Facebook user base. On average users spend an hour a day on Facebook, compared to 40 minutes globally, according to Facebook. With a population of nearly 10 million, the UAE has nearly four million Facebook users, or about 40 percent of the total population.

Other nations with large Facebook user bases are Saudi Arabia, with 12 million users, about 40 percent of the population, and Iraq, with 11 million users or about a third of the country’s residents.

Facebook widely popular

A 2015 study found that Facebook is also the most popular social platform in the Kuwait, Oman, Iraq, Palestine, Jordan and Tunisia in addition to Saudi Arabia and the UAE.

WhatsApp, a messaging service acquired by Facebook in 2014 for $19 billion, is the leading platform in Lebanon, Sudan and Algeria, the study said.

The two platforms are equally popular in Qatar, Bahrain, Yemen, Lebanon, Syria, Egypt and Libya.

Radcliffe noted that WhatsApp is being used for more than text messaging. He said it is increasingly used to discuss different interests from religion to cooking to news and is becoming a platform for e-commerce.

#mecca_live

#mecca_live

Photo-sharing popular

Instagram, a photo-sharing platform that Facebook bought in 2012 for $1 billion, has 25 million users in the Middle East and North Africa.

One marketing expert attributed Instagram’s growing popularity to the fact that visuals cross language and cultural boundaries.

“No one country behaves and speaks with the same language or dialect and they certainly don’t have the same dynamics in terms of economy, language, lifestyle, religion, and ethnicity,” Ema Linaker said.

Saudi Arabia has 10.7 million Instagram users, while there are 3.2 million in Egypt and 2.2 million in the United Arab Emirates.

Video viewing on the increase

Videos are also becoming a staple of social media.

The region is the fastest growing consumer of videos on Facebook with consumption is twice the global average.

Periscope, a live-streaming application launched last year by Twitter, is popular in Turkey. Turkey has the highest use of Periscope of any country in the world after the United States. Istanbul, Ankara and Izmir are among the top 10 cities for Periscope use.

Periscope has a strong connection to Turkey. Its inventor created the application after a he visited then country when civil unrest erupted in 2013. Unable to get a street-eye view of Istanbul protests on traditional media, he came up with the idea of creating an easy-to-use live-streaming application.

According to Google data, video viewing on YouTube is also increasing. The amount of time spent watching videos on YouTube increased by 80 percent and the region is second only to the United States in online video viewership

Twitter less popular

Twitter, meanwhile, has very mixed adoption. On the high end, more than half of all social media users in Saudi Arabia and UAE have Twitter accounts although actual daily usage is quite low in Saudi Arabia.

Jordan, Palestine, Syria and Libya have low Twitter penetration but their users are very active.

Twitter users are mostly young, with people aged 18-24 accounting to 45 percent of users in the region.

Among young, digital access change attitudes

Digital and social media are having a profound impact on young people around the globe and no less in the Arab world.

Born between 1977 and 1997, they are tech savvy and account for 40 percent of the population of the region.

Access to information and debate on digital and social platforms is propelling them away from the traditional perspectives of their elders, according to Booz & Company, a strategy consulting firm that has surveyed thousands of young people in the region.

“These young people are far more active as consumers and as critics. They are involved more directly than their parents in the media they consume and purchase, and they are more outspoken about society, economics, and politics.”

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Nine international “Top Employers” have operations in Africa, Middle East

14 March 2016 Comments (0) Africa, Business, Featured

top employer africa

The annual certification recognizes more than 1,000 companies globally for creating good working conditions.

The Top Employers Institute has recognized nine companies that do business in Africa and the Middle East for providing a good working environment for employees.

AbbVie, Becton Dickinson, DHL, Old Mutual, EY, G4S, JTI, Orange and Unilever were certified as top employers, according to the 2016 ratings by the Netherlands-based institute.

The Top Employers Institute evaluates companies at their request, considering companies that operate in at least five countries and have at least 2,500 employees. The institute audits human resource practices to determine whether a company is fostering a good work environment for employees.

The certified organizations have created forward-thinking human resources practices and work continuously to improve working conditions and provide employees opportunities to develop, according to the institute said.

Abbvie pharmaceuticals recognized

Abbvie operations in South Africa, Lebanon and the United Arab Emirates were among those recognized as Top Employers.

Abbvie is a Chicago-based pharmaceutical company that has 15 manufacturing facilities around the world and sells products in more than 170 countries. The company employs 28,000.

The instituted cited Becton Dickinson operations in East and West Africa as well as in Zambia as top employers.

Becton Dickinson is a medical technology company whose products include laboratory instruments, medical devices and diagnostic products. It has operations in more than 40 companies.

DHL cited in 13 countries in region

The institute also certified DHL operations in Nigeria, Uganda, Ghana, Angola, Gambia, Botswana, Madagascar, Mozambique, Kenya, Ethiopia, Egypt, Saudi Arabia and the United Arab Emirates.

DHL, based in Redwood City, California, is a global delivery service and the world’s oldest international air express company. With more than 325,000 employees worldwide, DHL delivers to 70,000 locations in 220 countries.

EY, or Ernst & Young, was cited as a top employer including businesses in Kenya, Nigeria, Zimbabwe and South Africa.

The company, based in London, offers tax, audit, business risk, technology and security risk services, and human resources services worldwide. One of the Big Four accounting firms, EY has more than 200,000 employees and operates in 150 countries.

Security company G4S tapped

The institute recognized G4S operations in Botswana, Cameroon, Ivory Coast, Ghana, Kenya, Malawi, Morocco, Mozambique, Namibia, Nigeria, the Democratic Republic of Congo, South Africa, and Zambia.

G4S is a security services company headquartered in London. Active in 110 countries, G4S has 623,000 employees.

JTI, based in Geneva, was recognized as a top employer in Dubai. JTI is a tobacco manufacturer with about 25,000 employees.

Old Mutual was recognized as a top employer for operations in South Africa, Namibia, Kenya, Botswana, Swaziland, Malawi and Zimbabwe.

Old Mutual provides banking, investment, asset management and insurance in Africa, Asia, Europe and the Americas. The company, based in London, has about 61,000 employees. Nearly half its holdings are in South Africa, where the company was founded.

Orange business services highly rated

Among Orange outlets recognized were operations in Cameroon, Ivory Coast, Guinea, Madagascar, Mali and Senegal as well as Egypt and Jordan.

Orange is a business services corporation with offices in 160 countries. Orange specializes in information technology and communications support to businesses in more than 200 countries.

Mobinil was recognized in Egypt. Mobinil, a subsidiary of Orange headquartered in Cairo, provides wireless telecommunication services in Egypt. Mobinil was rebranded as Orange in March.

More than 1,000 companies certified

Unilever was recognized for operations in Ivory Coast, Ghana, Kenya, Nigeria and South Africa.

The company, which produces and distributes food and household care products with brands that include Lipton, Dove and Suave, employs 172,000 people.

More than 1,000 organizations received the Top Employer rating for 2016, the institute said.

The institute also certified eight companies as Top Employer Global 2016. They are

Saint-Gobain, DHL Express, Dimension Data, JT International, Orange, TATA Consultancy Services, Technip and Valeo.

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Gulf airlines stage price war

12 March 2016 Comments (0) Business, Featured, Middle East

emirates

Emirates, Etihad Airways and Qatar Airways cut regional airfares as they seek to increase their market share.

The Arab Gulf’s three major air carriers are slashing their fares as they compete for market share in the region.

With the help of low oil prices, Emirates, Etihad Airways and Qatar Airways have cut fares on some Middle Eastern routes by as much as 20 percent compared to a year ago.

Qatar Airways has also sharply cut fares to Europe and India, while Etihad fares to Europe rose more than 20 percent, according to data from the travel portal Cleartrip.

Qatar cuts across the board

Qatar made cuts on fares to Europe and Indian and within the Middle East. For example, the average price of a ticket to Europe on Qatar airlines was $540 in 2016, compared to $660 a year ago, a decrease of 18 percent. The average roundtrip fare to India decreased by $50 to $300, a decline of about 15 percent. The average price of a Qatar ticket in the Middle East declined 20 percent to $290.

On Emirates, the average roundtrip ticket to destinations in the Middle East dropped by more than 17 percent to $390. Emirates’ average fare to Europe edged up slightly from $850 to $875 while fares to India dropped by $30 or nearly 9 percent to $310 in 2016.

Etihad also cut fares within the Middle East by 12 percent, from an average of $375 for a roundtrip ticket in 2015 to the current average of $330. However, Etihad’s average fares to India declined only slightly, from $385 in 2015 to $380 in 2016. Etihad fares to Europe jumped from $660 to $805, an increase of more than 21 percent.

Low oil prices fuel fare drop

The airlines are taking advantage of the slump in oil prices to improve their market share on many routes where they compete head-to-head in the region, according to Amit Taneja, Cleartrip’s chief revenue officer.

Oil fell to a record low of less than $30 a barrel in January, a fall of more than 70 percent, before rallying to its current $40 per barrel. OPEC producers hope to stabilize the price at $50 a barrel this year.

At the same time, Taneja said, higher demand for travel from the United Arab Emirates to Europe has tempered airlines’ willingness to drop prices as significantly as on Middle East routes.

India demand grows

Demand for travel from the United Arab Emirates to India, a major market for Gulf carriers, has also increased. However, competition from non-Gulf carriers has put downward pressure on fares, according to Taneja.

Emirates is the largest and oldest of the three Gulf airlines. It is based in Dubai with a fleet of 250 aircraft and in business since 1985. Qatar Airways, based in Doha with a fleet of 153 aircraft, began operations in 1994. Etihad, based in Abu Dhabi, is the newcomer, launched in 2003 with a current fleet of 121 aircraft.

The three are competing to become the dominant international hub in the Gulf region.

Qatar opened Hamad International Airport in 2014, with a capacity to handle 30 million passengers annually. Abu Dhabi International said it would open a new Midfield Terminal, which also will have the capacity to serve 30 million passengers a year, in 2017.

Competition from Turkey

But they also face a rival in Turkey, which will open a new international air hub next year. Turkish Airlines plans to spend $3.7 billion this year to grow its fleet to 261 aircraft.

The new airport in Istanbul, with investment of about $35 billion, will be able to accommodate 150 million passengers a year and has parking spots for 500 aircraft. That would give Turkey the potential to more than double the number of passengers it saw at Istanbul Ataturk Airport last year.

Ataturk Airport served more than 60 million passengers last year, while Dubai handled 78 million. Dubai expects to handle 85 million passengers this year.

Bertrand-Marc Allen, the president of Boeing International, called Turkey “a significant opportunity” with its capacity, location, population and likelihood of growth in the coming decades.

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Top Cities for Expatriates in Africa

11 March 2016 Comments (0) Africa, Business, Featured

Every year, Mercer Consulting publishes a list ranking the quality of life for expatriate or highly-skilled immigrants based upon surveys conducted in cities around the world. Mercer conducts these surveys in order to provide employers, and employees, with a comprehensive analysis of the world’s largest cities to use when, for employers, considering sending employees abroad or, for employees, relocating. The surveys include questions on a variety of metrics including personal safety (new in 2016’s survey), political stability, banking security, quality, accessibility and cost of healthcare, standards of education and history of natural disasters, to include a few.

Perhaps unsurprisingly, cities in developing countries and regions struggled to break into the upper levels of this ranking. Considering the current global political, social and economic crises, it is no wonder that peaceful, wealthy Vienna was ranked the number one best city in which to live, followed by Zurich, Switzerland, Auckland, New Zealand, Munich, Germany and Vancouver, Canada. The Mauritian capital of Port Louis, was the highest ranking African city at 83rd out of 230 cities. Mauritius is a wealthy island off of Africa known for its pristine beaches, booming tourism industry and high standards of living.

South Africa: The Next (three) Best Things

South Africa claims the next three best-ranked African cities: Durban at 85th, Cape Town at 92nd and Johannesburg at 95th. Durban is a beautiful oceanside town and is the largest city in the South African province of Kwa-Zulu Natal. Kwa-Zulu Natal is home to some of Africa’s largest game reserves, and, in 2015, Durban was ranked Africa’s number-one best city in which to live, citing the availability of high quality housing and variety of leisure activities. Cape Town, 3rd for Africa, is perhaps best known for being the port closest to Robben Island, where Nelson Mandela was held captive for 27 years during the anti-apartheid movement. Cape Town has a large tourism industry, internationally renowned medical school and university, and an abundance of outdoor activities. Johannesburg comes in at a surprising 95th: once ranked the seventh most dangerous city in the world, Johannesburg is no longer a leader in violent crime, but whether this speaks to the increasing danger of the rest of the world, or an increased rule of law, is unaddressed. While the overall standard of living has increased in South Africa, endemic poverty and widespread, systematic racism are still enormous barriers to improvement in the life of the average South African.

Victoria, the capitol of the Seychelles islands, is ranked 97th overall. A major exporter of items that are in high demand in western countries (such as coconut oil and vanilla bean), Victoria has a variety of business opportunities and is relatively safe.

The next three African cities are Tunis, Tunisia (113th), Rabat (116th) and Casablanca (126th), both in Morocco. Ironically, Tunis was the focal point of Tunisia’s Jasmine Revolution, a widespread series of protests against the low standards of living, poor economic opportunities and repressive government. Morocco boasts a large expatriate community across tourism, import/export industry and banking. Rabat and Casablanca are relatively safe, although less so for women, and provide wealthy workers with many opportunities for travel within and outside of the region.

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Bint el Sudan, a fragrance across the sands of time

10 March 2016 Comments (0) Africa, Business, Featured

bint el sudan

A small factory on northern Nigeria continues to produce a legendary perfume despite the ravages of the jihadist group Boko Haram.

While the ravages of Boko Haram have shut down much of the industry of northern Nigeria, production of a legendary perfume continues uninterrupted at a small factory in Kano.

Bint el Sudan, known for nearly a century as the “Chanel No. 5” of Africa and once the best-selling perfume in the world, is known for its musky fragrance and oil, rather than alcohol base, which made the scent popular with Muslims.

Bint el Sudan means “Daughter of Sudan” and a girl wearing the traditional topless garb of 1920s Sudan appears on the label.

Most of the fragrance – about seven million small 12-mililiter bottles a year – is produced by a dozen workers from inside a larger, ultra-secure bunker of a factory that also manufactures pesticides, detergents and disinfectants.

Shipments across the northern Africa

About 80 percent of Bint el Sudan is produced in Kano for shipment to local markets across the region and as far away as Libya. Factories in Cameroon, Ivory Coast, Sudan, Ethiopia and Zimbabwe produce the rest of the perfume, primarily for sales in their own local markets.

That the Kano production continues is quite a feat, given the devastation Boko Haram has brought to the region. In Kano, once a great Nigerian industrial center and historically a hub of regional trade, most factories are shut down today, victims of waves of attacks by jihadists since 2012. As it is, business executives in the city have been forced to use armored cars and bodyguards for security.

Stephane Malaussene, owner of the Gongoni Company, which produces the perfume under a franchise arrangement with U.S. owner International Flavors & Fragrances, said production has actually increased from about 500,000 bottles 10 years ago. Production in Kano began in 1952.

“It’s a pride to produce and distribute this fragrance that crossed the sands and time,” Malaussene said.

Fragrance dates to 1920s Sudan

Bint el SudanBint el Sudan was created in the 1920s when, according to legend, fourteen leaders of Arab tribes approached a British traveler and adventurer, Eric Ernest Burgess, in Khartoum and asked him to create a fragrance. The perfume was developed in six months in the lab of Burgess’ employer, W.J. Bush & Co. in London.

Burgess also photographed the Sudanese girl who appears on the label, topless wearing a traditional elephant-hair red skirt and bracelets on her ankles and wrists and her dowry and purse around her neck. The girl also appeared on posters used to market the perfume throughout the region in what was the first advertising campaign for a perfume at the time.

It was sold in markets rather than stores at low prices and for a time was used as currency.

Staple for cosmetics and other uses

Widely used in courtship and circumcision rituals, Bint el Sudan became a staple of women’s cosmetics, especially after the wave of national independence and modernization that began in the 1960s.

With its mix of jasmine, lilac and lily scents, it is also used as a skin moisturizer and bath oil.

The fragrance is a top seller on the continent, particularly in western, central and northeastern Africa while women in the eastern and southern regions prefer western scents.

Boko Haram destroys local industry

The continuing production of Bint el Sudan belies the devastation of industry in Kano, Nigeria’s second largest industrial center and its largest producer of textiles, tanning, footwear, cosmetics, and ceramics.

Industrial activity was reduced by 50 percent since 2012, according to Ali Madugu Safiyanu, vice president of the Association of Industrial Nigeria. Boko Haram undermined the whole economic and agricultural ecosystem in the Kano region as well as Mali, Burkina Faso and the Central African Republic, Safiyanu said.

The region has seen bloody raids on markets, mosques and universities by Boko Haram, which is allied with the Islamic State, have left hundreds dead as well as abductions and forced marriages.

A military coalition of soldiers from Nigeria, Chad, Cameroon and Niger has driven Boko Haram into the far northeast of the country but the group continues to attack.

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Peace Hyde: Entrepreneur, broadcaster, actress

9 March 2016 Comments (0) Africa, Featured, Leaders

peace hyde

The British-born personality promotes education, entrepreneurship in Ghana and Nigeria.

As a child growing up in the United Kingdom, Peace Hyde had two dreams: One day moving to Africa, home of her Ghanaian forbearers, and launching a career in television.

Today, Hyde is living that dream in high style as an award-winning broadcaster, internationally recognized entrepreneur, West Africa correspondent for Forbes, and founder of a nonprofit that promotes education in Ghana and Nigeria.

Two years after leaving a teaching career in England to move to Ghana, Hyde, 30, was recently named African Broadcaster of the year at the Nigerian Broadcasters Merit Awards 2016.

Awards for leadership, influence

Hyde also was one of five people in media and entertainment named to a prestigious list of 50 most influential young Ghanaians in 2015 and was recognized as a Young Chief Executive Officer leader by the young CEO Business Forum in London for her work with Aim Higher Africa, a nonprofit she founded to promote education in Ghana and Nigeria.

She is also currently nominated for International Business Woman of the Year at the Women 4 Africa awards in London in May.

As a teacher in England for seven years before relocating to Africa, Hyde learned two important lessons: the importance of education to motivate and empower young people and the ability to multi-task, which has served her well in her many roles.

Education is a critical tool in the fight to empower communities and lift them out of poverty, she said.

Encounters with young people who carried goods back and forth at the markets of Accra convinced her that education was their way out. Seeing young girls who had no future but laboring at the marketplace, she said she “felt a deep sense of injustice. Something needed to be done for these girls.”

Without funding initially, she began to teach the children at the marketplace. Later, she found support to start Aim Higher Africa, a nonprofit that focuses on education and entrepreneurship.

Project creates digital classrooms

Initially, working in Ghana, Aim Higher Africa focused on improving standards at rural schools, including providing teachers with guidelines on discipline, testing, evaluating and grading.

As the program has grown and expanded to also work in Nigeria, where Hyde is currently based, she said it has become more strategically focused on bringing digital education to rural classrooms.

Currently, the organization is working with 30 schools in Ghana and Nigeria, Hyde said.

Promoting African entrepreneurship

She wants to help build a generation of young African entrepreneurs to help improve employment opportunities on the continent.

She said discussions traditionally have focused on job creation. But her philosophy with Aim Higher Africa is that empowering the next generation entrepreneurs and leaders who can create new industries “the only way you can create sustainable and scalable opportunities.”

Aim Higher Africa organizes Ignite events where entrepreneurs share their expertise and encouragement with young people.

She also hopes to tell success stories in her role as a television host and Forbes West Africa correspondent. As more stories of successful entrepreneurs are told, the environment and opportunities for the next wave of entrepreneurship will improve.

She sees “a new Africa where we are proudly exporting our heritage to the world,” she said. “I believe it is time to highlight the move towards digital platforms and technological advances that were not present (in Africa) a couple of years ago.”

Started with a teaching career

Born to Ghanaian parents in the United Kingdom, she was raised in England and received a degree in psychology from Middlesex University. She went on to receive a master’s degree in journalism and communications as well as a teaching qualification.

Once she completed her studies, she taught in middle and high school for seven years.

She said her experience as a teacher gave her a lot of practice in multitasking, which has paid off as she juggles roles that include broadcasting, running a nonprofit and even some acting.

Her current broadcast projects include hosting a popular celebrity talk show, The EFGH Show (Entertainers from Ghana) and hosting Friday Night Live, a lifestyles show. She has occasional roles in television programs, including a role as a Yoruba mother on the MTV program “Shuga.”

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British bank Barclays will leave Africa

8 March 2016 Comments (0) Africa, Business, Featured

barclays africa

South African economic problems and corruption risks on the continent prompt decision to sell majority stake in Barclays Africa.

South Africa’s economic slow down and plummeting currency were key factors in Barclays decision to exit banking on the continent, ending a presence dating back nearly 100 years.

Barclays, one of Britain’s largest banks, announced it would sell its stake of 62.3 percent in Barclays Africa as part of a larger strategy of refocusing on operations in the United Kingdom and the United States.

Barclays has also cut back operations in Asia, Brazil, Europe and Russia.

Banks in 14 countries

Barclays Africa Group, Limited, one of the largest banks on the continent, is worth about $4.9 billion. It has 45,000 employees and 1,267 branches.

It operates in 14 countries: Botswana, Egypt, Ghana, Kenya, Mauritius, Mozambique, Namibia, Nigeria, Seychelles, Tanzania, Uganda, Zambia and Zimbabwe, as well as South Africa, where the company owns and operates the bank network, Absa.

The African bank has been profitable, but the steep fall of the rand last year cut return on equity to 9 percent, below a target of 11 percent.

Barclays believes Africa is a growth area, according to those familiar with the bank’s review of its options. However, the South African issues along with higher risk of corruption prompted its decision to sell its stake.

Leadership seeks to refocus

Barclays CEO Jes Staley

Barclays CEO Jes Staley

The move comes under the leadership of Barclays CEO Jes Staley, who took over in October 2015, the latest in a succession of chief executives who have sought to improve the bank’s outlook following the financial crisis.

The decision is a major turnaround from just a year ago, when Barclays Africa CEO Maria Ramos promised that the bank would rank among the top three in revenue in its five largest markets – South Africa, Botswana, Kenya, Ghana and Zambia by 2016. Barclays Africa at that time was in the top three in only two of its markets – South Africa and Botswana.

Ramos also said the bank was on target to produce a return on equity of 18-20 percent.

Bank could be a tough sell

It was not immediately clear who potential buyers might be although it is unlikely Barclays would put its shares on the market if it didn’t expect suitors.

Despite the relative financial health of the bank, it may be a tough sell, according to analysts.

Garth Mackenzie of Trader’s Corner, said while Barclays Africa was a well-governed asset with a good dividend yield, concerns about risk “seem to overshadow that.”

South African turmoil undermines rand

The rand hit an all-time low in late 2015 after African President Jacob Zuma sparked protests with the ouster of a respected finance minister with an unknown who was then quickly replaced amid political and financial turmoil.

The value of the South African currency fell 40 percent in 2015. The rand has begun to recover but is still down by about 25 percent. Meanwhile, South Africa reported economic growth of only 0.06 percent in the final quarter of 2015.

Dividends cut

Barclays also announced it would cut shareholder dividends in half for the next two years, as the bank continues to struggle to recover from the financial crisis. The announcement prompted a reduction of eight percent in the value of its shares.

Staley, the CEO, said that the bank restructuring was coming to an end. “We are acutely aware of shareholders being tired” that it has taken so long to restructure the company.

Barclays has assured investors that their funds are safe; only share certificates will change hands in any sale. However, Barclays decision to leave Africa raises the question of whether other companies will also shift their focus to markets they perceive to be safer in America and Europe.

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Sharjah launches Sheraa entrepreneurship center

7 March 2016 Comments (0) Business, Featured, Middle East

Sheraa_2

2016 brings the launch of entrepreneurship centre “Sheraa” based in Sharjah, complete with royal inauguration.

In an increasingly competitive commercial world, most countries are recognizing that to ensure a successful economic future they must invest in companies and the people creating them. Hence, it was with pride that the emirate of Sharjah welcomed His Highness Shaikh Dr Sultan Bin Muhammad Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, to attend the official launch of the Sheraa, the Sharjah Entrepreneurship Centre.

On the 17th of January, 2016, an official ceremony took place inaugurating the opening of the center at the American University of Sharjah. An initiative of Sharjah Investment and Development Authority (Shurooq), it aims to encourage and support aspiring entrepreneurs. Simultaneously it hopes to boost the profile of the emirate, as an innovative and sought after place to start an enterprise.

“Here at Sharjah, we are witnessing the birth of a new initiative for the future of the nation,” explained HE Marwan bin Jassim Al Sarkal, CEO of Shurooq.

Why Sharjah?

A long standing hub for commerce, the emirate of Sharjah is the third largest in the United Arab Emirates, estimated to have a population of around one million. Its long history, dating back 6,000 years, is steeped in trading, fishing and pearling. Now Sharjah’s main trade is crude oil and gas, while the economy benefits from a variety of means such as tourism, education and logistics.

Sharjah

Sharjah

Nestling so close that it is regarded as a suburb of Dubai, this bustling country is one of the wealthiest in the UAE, and represents 48% of the UAE’s total Industrial Sector. Its geographical location is also ideal for trade and commerce with Europe, Africa and Asia.

Also known as the “rising sun,” the emirate is becoming well known for its emerging business talent and support of. Acknowledging the role enterprise has had on advancing many other countries, HE Marwan Bin Jassim Al Sarkal expressed his hopes for the UAE. “According to the Entrepreneurship and Development Institute, UAE occupied first place in supporting entrepreneurship and we strive to achieve first place internationally in this sector,” he said. It is in this spirit, to support and nurture, that Sheraa has been conceived.

About the University

Set up as a facility to not only educate but also as an investment in the future of Sharjah, the overall goal is to make a difference, to improve the prosperity of the economy and to develop its society. Highlighting this ambition during the opening ceremony Sheikha Bodour Bint Sultan Al Qassimi, Chairperson of Shurooq, confided that the investment in Sheraa, “reflects our complete belief in the ability of our youth to make a difference and positively contribute in the enhancement of our economy and development of our society,” she said.

So what can a young student of Sheraa expect from the course to help lead them in this positive direction? With an emphasis on innovation, creativity and development, encouragement will be given to explore ideas. Meanwhile students are to be directed in how to apply their visionary concepts in the business world, practical knowledge of the working business climate will be taught as well as assistance given to find the right business path within the emirate. The hope is that students will be inclined to remain in Sharjah, with the incentive of possible help to jump-start their projects from established entrepreneurs within the UAE.

Future

Recognizing the current trend of the business world and how to move forward positively into the future, Sheraa is clear in its aim: to produce creative and innovative business men and women. The university will run cutting edge programs, adapting to the ever changing business climate.

As fast as technology progresses so too does business and it is with this in mind that Sharjah wants to ensure they are forerunners in the field. Already renowned for trade, culture and fossil fuels, the emirate is looking to carve a new niche for itself. To enter onto the global market as a key player will not only ensure other countries are unable to monopolize on the sector but in addition, that foreign businesses will not move in and corner the market. Sheraa is just a step towards ensuring continuing prosperity for the Emirate of Sharjah and the young men and women of the future.

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WOMENA: Taking the (Middle) Men Out of Women’s Investment

5 March 2016 Comments (0) Featured, Leaders, Middle East

elissa freiha

Named one of The 100 Most Powerful Businesswomen by Arabian Business, Elissa Freiha is bringing the western model of “angel investing” to the United Arab Emirates.

Barriers to entry are one of the most common challenges creative entrepreneurs face. When young business people have excellent ideas, they have few resources to make these ideas concrete: this is where angel investing comes in. Angel investing is a relatively new concept that began in the western world and is spreading to areas with high concentrations of wealthy people, such as the United Arab Emirates.

Women and Business

Elissa Freiha received a Bachelor’s in Communications from the University of Paris and has worked in publishing and entertainment, both fields where women have been relatively successful in challenging the patriarchal status quo. A native Emirati of Lebanese and American descent, Freiha knew first-hand the challenges women face getting ahead in the business world in both her home country and the European west.

Entering the business world is challenging for both founders of start-ups and for investors. Wealthy individuals need advice on where, how and when to invest, and often need a great deal of coaching and education when they are considering their first large investments. In the UAE, financially independent women are still viewed with apprehension, making it even more difficult for them to make informed business investments.

Freiha recognized the need for a platform that would connect wealthy individuals with determined young business people. Freiha saw an opportunity to combine her feminist ideals with her business acumen: women across the globe have been historically left out of business investment and development. While this is changing in the western world, with more women breaking through the glass ceiling to the top levels of Fortune 500 companies, women’s visibility and participation in top-level business is still stunted in the Middle East.

With the aim of creating a platform for wealthy female investors to meet and collaborate with un-funded start-ups, WOMENA was born. It is not only a bold rejection of the male-dominated business world (men are not allowed to have membership), but is also a play on words: MENA is the acronym used to refer to the Middle East and North Africa in international forums.

womena

Women, Money and MENA

WOMENA is investor-focused, not entrepreneur focused. Members pay an annual fee for exclusive access to WOMENA’s extensive business connections, educational materials, hands-on advice and training workshops. The only institutional angel investment platform for women in the Middle East and Africa, it seeks to help women in the MENA region control their wealth intelligently. With a web of partners with varied business backgrounds and expertise, WOMENA offers members a unique approach to internationally and Middle Eastern focused investment. It does due diligence on all potential investment venues and, when a start-up is selected for presentation; the platform carefully goes through the risks with interested members.

According to the website, their mission is to make “investment more accessible and valuable” in that every new member and every new investment helps to redefine the role of women in business. WOMENA is a platform for progress, equality and education. We are bringing together inspiring and motivated women to make intelligent investments confidently. Development is our driving force: whether that is on an individual or collective level, we aim to push both social and economic boundaries.” Unlike other angel investing platforms, WOMENA does not aim to speed up or incubate start-ups, citing that “we have partners for that”, but are instead a platform for funding start-ups.

Ringing in the Future, Today

It is bold innovators like Freiha who will lead women in the MENA region into the business world. With money to invest and few platforms to do so, WOMENA is changing the way women handle money. A likely positive consequence of this platform will be the introduction of non-traditional start-ups to the MENA region. Women investors have different priorities than their male counterparts, and often look to promote women’s interests: several of the start-ups in WOMENA’s portfolio are apps that take out the time-consuming aspect of traditional “women’s work” so users, likely women with full-time jobs outside of the home, are able to spend more time on their careers and less time on gendered work. Other start-ups include online marketplace for used children’s clothing, an online database of e-books, an app that connects students, and more.

By inviting women into the investment seen with WOMENA, Freiha is changing the face of MENA investment. Financial independence and autonomy is an integral part of women’s empowerment, and Freiha has created a safe space for women to learn and grow as investors.

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What do reformist gains in Iran elections mean for business?

4 March 2016 Comments (0) Featured, Middle East, Politics

iran elections

Surprise Iranian election result endorses President Hassan Rouhani’s economic reforms.

On February 26th, Iranians headed to the polls and handed moderates and reformists a surprise victory. The result also signaled the endorsement of President Hassan Rouhani and his more moderate agenda and economic reforms, such as his recently negotiated nuclear deal and his moves to engage with the West.

Iranians were voting to decide who sits in the powerful 88-seat constitutional council, the Assembly of Experts, and the 290-seat Iranian Parliament. The Interior Ministry reported that the final count in the parliamentary elections gave reformists 85 seats and moderate conservatives 73, meaning the two blocks, who put their differences aside to run on the same platform, now hold a 54% majority over hard-liners. Iran’s moderates also won a majority in the Assembly, receiving 52 seats, or a 59% majority, bringing to an end more than a decade of conservative domination. In a vote of confidence, President Hassan Rouhani and one of his leading allies, former President Ali Akbar Hashemi Rafsanjani, also retained their seats, while two prominent hardliners lost theirs.

The main role of the clerical Assembly of Experts is to choose the Supreme Leader, the head of state who sits above the president. Current Supreme Leader, 76-year-old hardliner Ali Khamenei, is reportedly ill, meaning it is likely the Assembly voted in by this election will pick the next Supreme Leader. If a reformer or moderate is elected, Iran could see significant change.

However, although this election gave moderates their most dramatic gains in a decade, there have been arguments that the victory is not as reformist as some claim. The running lists were both heavily pruned by the Guardian Council before the vote, with all but 166 rejected of the 801 individuals who put themselves forward as candidates for the Assembly, and 5,200 of the 12,000 individuals registered to run for the Parliament rejected. Nonetheless, with a 62% turnout, this election will be seen as a blow to hardliners and as evidence of a desire for change.

The economy at the heart of the elections

The economy seems to be at the heart of these election results. Iran has been suffering double-digit unemployment and inflation for much of the past decade. Sanctions have cost the country between 15-20% of GDP. And many of its brightest minds have deserted the economy, as 300,000 Iranians moved abroad between 2009 and 2013. A reformist victory suggests that Iranians have had enough of economic pain and are ready to endorse Rouhani’s economic reforms.

Rouhani intends to strengthen the private sector by tackling corruption, welcoming foreign investors, and developing trade with the West. Indeed, since taking office in 2013, more than 120 foreign business delegations have visited Iran in search of business opportunities. And just last month, February 2016, Chinese President Xi Jinping made a poignant visit to the country to discuss increasing trade and signing several agreements. Rouhani has also travelled to Europe to drum up foreign investment, meeting Matteo Renzi in Rome and Francois Hollande in Paris, where he left with $30 billion in deals. Rouhani has also previously said that he hopes to develop tourism into a $30 billion-a-year industry by 2025.

Several deals have also been negotiated recently. Boeing has been given special clearance to sell to Iran, and General Electric is hoping to be offered the same benefit soon. In January, Iran signed an agreement to buy 118 Airbus jets worth $27 billion. And Iran’s Khodro and France’s Peugeot have signed an agreement to build cars.

His negotiation of the nuclear deal in January which lifted sanctions allowing Iran to once again export oil, was also a very clear message of intent. The country now plans to export an additional 1 million barrels a day this year, low prices or not, which will offer a boost to Iran’s economy. And it is also highly likely that foreign firms will start bidding on Iran’s oil fields, bringing the country more modern techniques.

Rouhani

Rouhani

Comparatively fewer restrictions on economic reforms

Moving forwards, analysts believe that these election results will offer Rouhani comparatively fewer restrictions on economic reforms and in making the country more attractive to foreign firms looking for a piece of the relatively untapped market of 77 million consumers. Analysts expect that Rouhani will find it easier to push through legislative reforms and address issues crucial to the business sector such as the commercial code, labor laws, and stock market regulation. They cite the expectation that hardliners will now focus their diminishing political power on social and cultural conservatism.

Analysts have also commented that the positive public opinion will also be significant. These election results offer a symbol to the rest of the world that Iranians themselves are more favorable towards trade and commerce with the West and America, and that in turn could encourage foreign businesses to make longer-term investments.

Of course, the elections do not leave Rouhani without restrictions. Supreme Leader Ayatollah Ali Khamenei, who is strongly against the expansion of civil liberties and freedoms, will still have the final say on matters of state, and the similarly conservative unelected clerical body, the Guardian Council, will continue to have the power to vet all laws. But it does seem that the winds of change may have begun to blow.

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