PROSERV Energy Services Company of the Year 2018

PROSERV Energy Services Company of the Year 2018

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PROSERV Energy Services Company of the Year 2018

Proserv is a global leader and a fresh alternative in the delivery of engineering and technical services to the energy, process and utility markets. Combining technical ingenuity with design, engineering, manufacturing and field services expertise, Proserv support clients throughout the lifecycle of their assets with a focus on maximising operational performance and efficiency.

Proserv’s Middle East team, and in particular the Al Badie facility, was awarded the Energy Services Company of the Year accolade at the 2018 UAE Business Awards.

The win was based on Proserv’s success over the last year in terms of how they support clients, drive innovation and deliver excellent operational results which in turn have resulted in great efficiency savings for clients.

The UAE Business Awards is an annual awards ceremony in the region which highlights the truly top performing businesses, individuals and departments in today’s market.
Commenting on the award win, Michael Purkiss, General Manager at Proserv Al Badie facility, said:

‘This is a great win for Proserv and I’m delighted that our commitment to service and operational excellence is being recognised.

‘We concluded last year with a 95% excellence rating in customer feedback across all of our operating divisions, conducting operations of over 35,000-man hours of work with zero LTIs. This illustrates the strong operational performance of our business and commitment to zero tolerance when it comes to the health and safety of our workforce.’

Commenting further on the award win, Andy Anderson, Proserv MEA Region President, added:

‘This is a great achievement for the region and the wider Proserv team in general. To be recognised for our overall business delivery and service excellence in the region is a great honour and one that all our people can be immensely proud of.

‘With the growing success of our manufacturing and service centres in Saudi Arabia, Dubai and Abu Dhabi combined with our unparalleled experience in the region for our life of field services, 2018 looks set to be an even better year for Proserv.’

Company: Proserv Al Badie

Contact: Michael Purkiss

Address: P.O. Box 105022 Abu Dhabi, UAE.

Phone: 971 2 627 7370

Email: [email protected]

Website: http://www.proserv.com/


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Turkey Looking to Improve the Country�s Investment Environment

Turkey Looking to Improve the Country’s Investment Environment

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Turkey implements further measures to improve the country’s investment environment

Authored by Pelin Baysal and G’rkem Bi?lgi?n of G’n Partners (www.gun.av.tr)

While Turkey has faced many challenging times over recent years, a wide range of efforts have and continue to be made by the Turkish government to further improve the country’s investment environment.

One such initiative is the recent introduction of a new law, ‘Law on the Amendment of Certain Laws for the Improvement of the Investment Environment numbered 7099’ (the ‘Law’), which was published in Turkey’s Official Gazette on 10 March 2018 to (i) support domestic and international investors, (ii) speed up the investment process and the establishment of a company, (iii) reduce costs and (iv) boost the economy. Several changes have been made to regulations governing Property Law, Law on Municipal Revenues, Customs Law, etc. including those that are outlined below. These changes came into effect on the date of their publication in the Official Gazette unless otherwise stated below. The following article provides guidance to investors on the procedural amendments in relation to company’s being established in Turkey.

Amendments to the Turkish Commercial Code numbered 6102 (‘TCC’)

Amendments have been made to article 40/2, which has abolished the requirement to notorise the business name and the signature before Notary Publics prior to submitting them to the relevant Trade Registry. Every merchant will now submit its business name and a signature during all company transactions to the relevant Trade Registry directly. If the merchant is a legal entity, the business name and signatures of the signatories, which have the authority to sign on behalf of the legal entity, must also be submitted. The signature should be made in the presence of a designated officer of the Trade Registry by submitting a written statement and the procedures and principles as to its implementation, which will be regulated under a Communiqu’ to be issued by the Ministry of Customs and Trade.

Changes have also been made to article 64. During the registration of joint stock companies and limited liability companies, the opening approvals of the company books are now only issued by directorates of the Trade Registry, rather than the Notary Publics. If the company books are kept electronically, the approval of Notary Publics or directorates of Trade Registry in their opening and closing process of the general journal and Board of Directors resolution book are no longer required.

Articles 428, 430 and 431 have now been abolished as they proved to be highly burdensome for small scale joint stock companies. For example, previously, the law required that when companies sought to recommend a person, related to the company in any way – in order for shareholders to appoint as their representatives to vote and carry out other related actions in the general assembly meeting on their behalf, the company was also required to recommend another totally independent and neutral person for the same position. These had to be announced pursuant to the articles of association and published on the company’s website.

Amendments have been made to articles 575, 585 and 587. Previously, authorities of Notary Publics were required to approve the signatures of founders and articles of associations of companies for limited liability companies. This is no longer the case. Now, articles of association should be signed by the founders in the presence of the designated officers of the directorates of the Trade Registry. As this amendment will only be applicable for limited liability companies, the articles of association of joint stock companies may continue to be executed before Notary Publics or before the director or deputy director of the relevant Trade Registry. This amendment came into effect on 15 March 2018.

Under article 585, the pre-condition of payment of at least a quarter of the undertaken capital prior to the establishment has been removed for limited liability companies. In this context, founders of limited liability companies are no longer faced with the obligation to make this upfront payment.

Amendments to the Tax Procedure Law numbered 213 (‘TPL’)

As to article 223 of the TPL, the opening approvals of company books kept physically by companies must be conducted by the relevant directorates of the Trade Registry during the establishment process. This article is in parallel to the amendment made in article 64 of the TCC, therefore, the authority of Notary Publics to carry out the opening approvals of the company books has also been removed. This amendment also came into effect on 15 March 2018.

Amendments to the Social Security and General Health Insurance Law numbered 5510

In accordance with the amendment made in article 11/3, during the establishment process of a company, the notification form will be directly sent to the Social Security Institution (‘SSI’) by the relevant Trade Registry so that the work-place registration will be conducted without any application to the SSI in person. This amendment aims to shorten the time spent during the establishment process.

The above amendments will be welcomed by many and provide only a small taste of the many measures the Turkish government is taking to retain and further enhance the country’s attractiveness for investors.

Cluttons Launches Hospitality Service Line

Cluttons Launches Hospitality Service Line

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Cluttons Launches Hospitality Service Line as the Sector Witnesses Robust Growth Across the Region

‘ Team established to provide strategic advice at every stage of an asset’s lifecycle
‘ Total number of rooms up by 4,854 to a total of 82,733
‘ Dubai occupancy levels up to 78% and is expected to be sustained

Leading international real estate consultancy, Cluttons has announced a new hospitality service line targeted to individual investors, developers, operators and owners in the Middle East. The service offered is a one-stop-shop, where the hospitality team provides clients with strategic advice at every stage of the asset lifecycle, including acquisitions advisory, project appraisal and realization, operational excellence and asset management, as well as, asset disposal advisory.

Commenting on the new service, Richard Paul, Head of Professional Services & Consultancy, Middle East, said: ‘At Cluttons, we continue to build our capabilities across multiple service lines in the Middle East region. We have always been involved in the hospitality sector and are now in a position to build out our team and offer clients a full complement of hospitality services. The sector continues to be one of the top performing in the region’s real estate landscape, and we are keen to offer our clients related services based on the opportunities that exist due to this growth.’

Across the region, Cluttons has noted buoyancy in the sector as Middle East economies embark on a path of diversification. Occupancy levels have been improving across the GCC, according to Cluttons, despite growth in the number of rooms. Elsewhere in the region, Saudi Arabia dominates the hotel room pipeline, with almost 71,000 keys under development, followed by 202 properties, followed by the UAE with nearly 55,000 rooms under construction.

In Dubai, the hospitality sector is the one segment that stands out due to its robust expansion and positive outlook. According to Cluttons’ latest Dubai Spring 2018 Property Market Outlook report, during 2017, the city saw ten new hotel properties added, taking the total number of rooms up by 4,854 to a total of 82,733. Overall occupancy levels have also improved, reaching an average of 78% last year; up from 76% in 2016.Faisal Durrani, Head of Research at Cluttons, said: ‘The emirate appears well on track to meeting its vision of hosting 20 million tourists by 2020, with the Department of Tourism and Commerce Marketing reporting a 6.2% increase in the number of visitors last year, pushing the total to 15.8 million. In order to accommodate the projected influx, it is not surprising to see the hotel development pipeline continuing to swell, with Downtown Dubai, Business Bay and the Palm Jumeirah remaining key locations for new hotel properties.

‘We do expect that occupancy levels will be sustained as the city continues its aggressive drive to deliver enhanced tourism infrastructure, which is materialising in the form of new theme parks, world class hotel resorts and iconic attractions, such as the recently announced QE2 hotel,’ Durrani added.

Technological Innovation in Israel

Technological Innovation in Israel

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Technological innovation in Israel

Key trends and developments driving an increasing number of foreign businesses and investors into the region.

Authored by David Osborne and Barak S. Platt of Yigal Arnon & Co

The publication of Start-up Nation: The Story of Israel’s Economic Miracle by Saul Singer and Dan Senor in 2009 called the world’s attention to what many multinational technology companies and overseas venture capital (VC) funds already knew ‘ that many of the world’s most cutting-edge technological innovations were being developed in Israel. These innovations have led VC funds from Silicon Valley, London and Hong Kong to make regular visits to Israel and have resulted in a number of global VC funds opening offices in the region. They have brought Israel to the attention of leading global technology companies such as Apple, Google, Facebook, Intel, Amazon and eBay, each of which has enriched its existing products by acquiring Israeli technology companies.

Well before Israel came to be identified as the ‘start-up nation,’ its harsh desert climate and scientific prowess combined to make it a recognised international leader in agricultural technology. Israeli companies created drip and micro-irrigation, biological pest control, as well as solutions for water conservation, over-fishing and produce storage. More recently, large reserves of natural gas were discovered off the coast of Israel, making it likely the country will become an exporter of natural gas to neighbours such as Jordan, Egypt and Turkey. The Israeli government is committed to encouraging business activities by giving tax breaks and grants for investments to entrepreneurs who wish to expand their businesses, especially in development areas.

Each of these sectors has continued to grow in 2017. The technology sector saw the largest transaction in Israeli history with Intel’s US$15.3 billion acquisition of Mobileye, a Jerusalem-based leader in autonomous vehicle technology.

In 2016, US$4.8 billion was invested in Israeli start-up companies. A significant percentage of this came from Chinese investors. Delegations of executives from China interested in investment opportunities in Israel have become commonplace. Chinese companies have also been acquiring controlling stakes in Israeli companies. In one example, ChemChina acquired 100% control in Adama, the global agricultural chemical company. Subsequently, Adama entered into a reverse merger with a local Chinese company, which resulted in it being traded on the Shenzhen Stock Exchange.

In agricultural technology, Mexichem acquired 80% of Israel’s drip irrigation company Netafim for US$1.5 billion.

In May 2016, after a number of legal setbacks, the Israeli government approved a Natural Gas Framework, which has led to renewed development of Israel’s natural gas resources and has revitalised the industry. Following the Petroleum Commission’s approval, the partners in the Leviathan natural gas field approved a development plan that aims to reach first gas by the end of 2019. The first phase of this plan represented the largest energy project in Israel’s history with a US$3.75 billion investment. Concurrently, each of the Leviathan partners raised external financing, including the reported US$400 million financing to Ratio Oil Exploration and the US$1.75 billion financing to the Delek Group, constituting the largest project financing ever held in Israel for a project in the development stage.

In November 2016, a tender for oil and gas exploration in Israel’s offshore exclusive economic zone was published. This, together with the sale of existing gas fields, may spur new development and potential exploration together and lead to a new dawn for the expanding Israeli natural gas sector.

Shari Arison, who holds a controlling interest in Bank Hapoalim Ltd., Israel’s second-largest bank, has signed a memorandum of understanding with certain North American investment firms and institutional investors to sell 49% of her shares in Arison Holdings, the controlling shareholder of Bank Hapoalim. Should this transaction be consummated, not only would it represent one of the largest in the history of Israel’s financial sector, it is hoped it will contribute to an increase in competition in the local banking environment.

OurCrowd, led by Jon Medved, has introduced an equity crowdfunding platform that allows accredited investors to invest in the Israeli start-up market. This has opened the potential for foreign investment in early-stage Israeli companies.

On the regulatory front, there have been a number of recent reforms designed to make Israel more attractive to foreign businesses. The Israeli Tax Authority (the ITA) has lowered corporate income tax rates on income based on intellectual property and on capital gains from the future sale of IP for qualifying corporations. In addition, the ITA published circulars designed to eliminate uncertainty regarding several standard provisions commonly applicable to start-up companies. In one circular, the ITA clarified provisions related to consideration paid in ‘holdback’ arrangements in merger and acquisition (M&A) transactions – i.e., in which a founder or key employee holding shares in the target company will only receive a portion of the compensation for selling such shares if he or she remains employed by the target company or the acquirer following the closing of the transaction. In another circular, the ITA clarified provisions related to shares subject to “reverse vesting” mechanisms ‘ i.e., in which a shareholder is required to forfeit a portion of his or her shares if he or she ceases to be employed by the company. These circulars helped to provide a level of certainty to buyers and shareholders of Israeli companies as well as to potential investors in the market.

In general, the Israeli economy operates autonomously and has not suffered from the world economic dips, such as those of 2008-2009. There remains a strong culture among Israelis of discovery and invention, with Israel being a major hub for start-ups and technological developments. This culture of innovation, along with M&A exits occurring on an ongoing basis, has generated considerable revenue for the local economy. After picking up to 4% in 2016, growth is projected to stabilize around 3.25% in 2017-2018. Finally, as a consequence of the foreign investment in Israel, the shekel has remained a strong currency when measured against all the leading world currencies.

Even with the regional geopolitical challenges, the Israeli economy has been identified as one of the healthiest and most stable in the world, and this is expected to continue in 2018 as strong developments seen in recent years continue to advance. In the promising field of autonomous vehicles, companies will continue to grow and there are likely to be more acquisitions in the field. In addition, Israeli companies will begin listing on foreign stock exchanges (Canada, Australia and Hong Kong) with more frequency ‘ such as the recent first IPO of an Israeli company on the Hong Kong Stock Exchange. Furthermore, the strong M&A activity in Israel, especially in the high-tech field, will remain robust and will continue to draw in major global companies, as well as foreign investors ‘especially from China ‘ that will continue to explore what this great start-up nation has to offer.

Abu Dhabi�s Real Estate Market Prepares for Stronger Growth in 2018

Abu Dhabi’s Real Estate Market Prepares for Stronger Growth in 2018

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Abu Dhabi’s real estate market nearing bottom as economy prepares for stronger growth in 2018

While the first quarter of 2018 has recorded a slowing rate of capital value declines across the UAE, developers of high end homes in Abu Dhabi appear to be sensing a bottoming of the market and are pressing ahead with new schemes, according to international real estate consultancy, Cluttons.

Faisal Durrani, Head of Research at Cluttons said: £2018 looks set to be a better year for the UAE economy as a whole, with GDP expected to expand by 2.6%, from a seven year low growth rate of 1.7% last year. This is, in turn, expected to help support more stable rates of job creation and increased government spending as confidence levels improve.

‘In fact, following the announcement by ADNOC at the end of last year to spend AED 400 billion over the next five years to boost growth, we expect to see further infrastructure project announcements this year as the government moves to bolster economic growth.’

Residential Market

The Cluttons Abu Dhabi Property Market Outlook report for Spring 2018 indicates that the very top of Abu Dhabi’s sales market has been relatively positive, and is showing signs of stabilising. Sea facing villas on Saadiyat Island for instance, which remain the most expensive residential property type in the capital at AED 1,700 psf, have seen no movement in prices for two consecutive quarters.

‘This trend is likely to help tempt buyers back into the market especially as we feel the stability is likely to persist,’ says Edward Carnegy, Head of Cluttons Abu Dhabi. ‘In fact, we have noted a marginal uptick in demand from Emirati buyers predominantly, looking for second homes, or expanding their buy-to-let investment portfolios on Saadiyat Island. Interestingly, of the 13 submarkets we monitor in Abu Dhabi, sea view villas on Saadiyat Island have experienced the biggest price correction since 2015, with prices dropping by an average of 26.1%,’ he added.

Rents across Abu Dhabi’s residential investment areas decreased by 2.3% during Q1 2018, following the 4.3% drop during the final quarter of 2017. The latest change leaves rents 11.5% lower than this time last year.
The falling rents, according to Cluttons, are reflective of the lingering weakness in overall requirement levels. Tenants are wary of the threat of job losses and the rising cost of living, associated with the introduction of VAT and a general upward creep in inflation, which has left many household budgets under tremendous pressure.

‘As a result, tenants are negotiating reductions at renewal, while landlords are increasingly receptive to meeting the expectations of tenants by agreeing to close deals below headline asking rates, and they are offering flexible rental payments in multiple cheques to attract tenants as well as other incentives such as zero commission payable and rent free,’ added Carnegy.

According to the report, Abu Dhabi’s residential market has the potential to start stabilising by the end of 2018, but until then further softening is expected to persist.

‘The additional declines will be catalysed by rising levels of property handovers in locations such as Yas Island and Al Raha Beach by Aldar, which will curtail chances for a quicker recovery. We expect a decline of a further 5% to 7% for both residential rents and values during 2018, largely as supply and demand will likely remain out of kilter for a while yet.

Positively, bulk corporate leases are back on the agenda for some firms as they move to secure better lease terms, or indeed better quality accommodation for staff, while also making a saving.’ Durrani explained.

Office Market

Like the emirate’s residential market, Cluttons report says the office market in the capital is also still facing the pressures of firms that are downsizing or consolidating operations; a trend that began over two years ago. While rents across the city’s prime office buildings held steady during Q1, deals continue to be concluded below headline asking rates in many cases. In secondary and tertiary buildings, rates have dropped by as much as 30% to 50% over the same period.

Carnegy said: ‘In some cases, rents in tertiary buildings have fallen to nearly the same level as prime warehouses. However, these substantial drops do not accurately reflect market conditions and are a result of landlords holding out on rent reductions for extended periods of time, before being forced to make drastic adjustments due to increased vacancy as they chase the market down.

‘We are aware of a number of instances where landlords are now also willing to cover agency fees. This is a seismic change in behaviour as up to 60% or 70% of landlords are now willing to do this, compared to almost none a few years ago. In addition to this, many are also willing to offer increased parking provisions, increased rent free periods, shorter leases with increased flexibility.’

Overall, Cluttons’ report highlights medium term prospects are slightly more encouraging, with rising public sector spending expected to boost GDP growth, which in turn should aid in the return of more robust levels of occupier requirements.

‘However, this is unlikely to materialise for at least another 9-12 months. Until the market approaches that point, we expect further office rent drops of 5% to 10% on average, across the board, which we expect to continue underpinning the rising relocation activity we are seeing, after a couple of very quiet years. In parallel, occupiers from the banking and public sectors are testing the waters, attempting to capitalise on the softer rents; a clear indication that some are sensing the bottom of the current property cycle ‘ concluded Durrani.

Increased Salesforce Adoption in Middle East Drives Triple Digit Growth for 4C

Increased Salesforce Adoption in Middle East Drives Triple Digit Growth for 4C

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Increased Salesforce Adoption in Middle East Drives Triple Digit Growth for 4C

Dubai-based cloud-CRM implementation company is now set to further expand its workforce and introduce new configure, price and quote (CPQ) service to cater to regional demand.

Cloud computing in the Middle East is rapidly evolving from a buzzword to an industry-wide trend with large scale implementations by regional enterprises, particularly in the Software-as-a-Service (SaaS) segment. As a case in point, 4C, one of the leading CRM software implementation companies in Dubai, today announced another year of triple digit growth in the region, driven by increased market confidence, and demand for cost-effective solutions that drive digital transformation. The company, which doubled its office space in the Middle East last year, also tripled its workforce following the successful addition of more than 30 new customer accounts in the same period.

Jake Callaway, Managing Director, MENA at 4C explained, ‘Initial reluctance to trusting vital business processes to third-party providers has faded as businesses have realised the cloud is the fundamental enabler of digital transformation. 4C strategically timed its entry in to the region and the investments we have made over the last two years now place us in a strong position to capitalize on this change in mindset.’

4C is EMEA’s largest independent Salesforce Platinum partner and sees the cloud-based CRM system as a robust and versatile platform to match the technological ambitions of digitally-driven businesses.

‘Salesforce is the global CRM leader with a powerful solution that spans all verticals and caters to the needs of organizations of all sizes. Last year, our Dubai based consultants achieved nineteen Salesforce certifications, with this expertise – and as a premium implementation partner – customers who work with 4C, have the ability to unlock the full potential of the Salesforce platform’ he added.

The company has been recognized as the number one Configure, Price and Quote (CPQ) partner in EMEA and number two globally and is working to introduce a local CPQ practice to meet the demand from Middle East businesses for quote-to-cash billing services.

In 2017, 4C signed its largest deal in the Middle East for the design and execution of the digital transformation strategy for a top UAE-based life insurance company. Other prominent customers in 4C’s portfolio include Biz Group and AESSEAL, as well as industry leaders in the real estate, manufacturing and finance sectors.

Outlining his company’s strategy for the year ahead, Jake Callaway said, ‘We are focused on maintaining this momentum and have ambitious plans for the region in 2018. This includes expanding our Commercial and Professional Services departments to accommodate the growing demand for our services. We will continue to actively drive awareness around Software-as-a-Service and CRM through conferences, drop-in clinics, webinars and whitepapers.’

Five Steps for Re-tooling Your Organisation with Machine Learning

Five Steps for Re-tooling Your Organisation with Machine Learning

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Five Steps for Re-tooling Your Organisation with Machine Learning

Despite investing in machine learning, a new survey from ServiceNow indicates that most CIOs do not have the talent, data quality and budgets to fully leverage the technology. Allan Leinwand, Chief Technology Officer, ServiceNow, provides an overview on the five steps that Middle East organisations can take to maximize the value of their machine learning investments.

Let say you decide to build a new house. Not only do you have to buy the materials, but you also have to hire the skilled talent who can get the job done. That is a lesson many CIOs in the Middle East are learning about their plans to implement machine learning technologies that are able to analyse and improve performance without direct human intervention. Despite investing in machine learning, a new survey from ServiceNow indicates that most CIOs do not have the talent, data quality and budgets to fully leverage the technology. If your organisation is embarking on the machine learning journey (and it should be), there are five steps CIOs must take to maximize the value of their investment.

Take these steps today, because the long-awaited Age of Machine Learning may be upon us soon. Computer science has caught up to the hype around machines that emulate human intelligence. Now, the technology occupies the peak position of Gartner’s Hype Cycle for Emerging Technologies, indicating that it has matured enough to spur wide interest. In other words, your competitors are also investing in machine learning.

Five hundred CIOs were recently polled for the annual Global CIO Point of View Survey, and the findings reveal that businesses are preparing for the widespread adoption of this transformational technology to automate decision making. Nearly 90% are using machine learning in some capacity, and most are still developing strategies or piloting the technology. However, the full potential of machine learning remains largely unrealised. For most organisations, many decisions still require human input. Only 8% of respondents say their use of machine learning is substantially or highly developed, as opposed to 35% for the internet of things or 65% for analytics.

Designing an organisational structure to support data and analytics activities, an effective technology infrastructure and ensuring senior management is involved are the three most significant challenges to attaining data and analytics objectives related to machine learning, according to a McKinsey study. It goes on to claim that organisations that can harness these capabilities effectively will be able to create significant value and differentiate themselves, while others will find themselves increasingly at a disadvantage.

Capturing greater value requires regional organisations to invest in more than just technology. It is also necessary to make significant organisational and process changes, including approaches to talent, IT management and risk management. Making progress requires following five steps:

Improve Data Quality

Ensuring the quality of data is a common obstacle to machine learning adoption. Poor data leads to machines making poor decisions, which can lead to increased risk. CIOs need to consider implementing solutions that simplify data maintenance in order to accelerate the transition to machine learning. The first step should be to consolidate redundant legacy and on-premise IT tools into a single data model.

Establish Value Realisation

Articulate the business value of all technology goals, then determine how best to reach those goals. This includes examining existing processes to identify which unstructured work patterns will benefit most from automation. Determining where fragmented data ‘lives’ will enable you to identify how automation will lead to gains in productivity.

Create the Best Possible Customer Experience

Using machine learning for automation will boost operational efficiency, but do not overlook the ROI of accelerating decision making (without sacrificing accuracy) to improve the customer experience. Start by envisioning the customer experience you want to create, then prioritise investment against those elements of business processes that could most improve the customer experience. Machine learning allows organisations to personalise advertisements, call-centre interactions and even products and services for individual customers’and to predict what they want next.

Set and Measure Metrics

CIOs understand the value that machine learning offers, but the other members of the senior executive team and board may not. CIOs must therefore set expectations, develop metrics of success before beginning the implementation process and prepare a solid business case to present to the leadership team when requesting the necessary funding. Metrics will need to change as you adopt machine learning capabilities and reap the benefits of intelligent automation.

Understand the Effect on Corporate Culture

How employees’ roles will change as the organisation introduces machine learning requires CIOs to adjust their hiring and training processes. This should not be too difficult, as it requires the same skill sets needed for the cloud era, such as data science, engineering, math and critical thinking. This transformation will likely be uncomfortable for some employees, so be sure to communicate the value machine learning will bring to their day-to-day work. The machines are not taking over the enterprise’they will alleviate employees of tedious manual processes and free them up to focus on more strategic projects.

It’s also important to understand that CIOs are not immune to that uncomfortable feeling. Their roles must evolve as well from being responsible for keeping the lights on when it comes to operational matters to an executive who has a much broader engagement across the business and, therefore, a new level of strategic importance.

Realising a return on machine learning investments requires planning and disciplined follow-through’all while adjusting employees to how rapid and ongoing technology changes will affect their day-to-day work. Following the five steps described above will ease that transition for Middle East organisations.

Pioneers in Property

Pioneers in Property

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Pioneers in Property

Innovative, dynamic and agile, Property.CoZa is one of the fastest growing real estate companies in South Africa. We profile the firm and CEO Gustav Kruger to find out how he has driven the firm to the success it enjoys today and earned the coveted title of CEO of the Year 2017 – South Africa.

As one of the fastest growing Real Estate Agencies in South Africa, Property. CoZa was started by Gustav Kruger and his business partner MJ Dafel in 2009. Since its inception the firm has rapidly expanded into a national network of 34 dedicated offices, employing more than 650 Property Professionals, full time management and administrative personnel, all of whom are supported by its experienced management team who is driven by a future-focused vision.

Drawing on his vast experience, Gustav works hard to ensure success for his team and their clients. He is experienced in real estate agency franchising, property professional, business and financial management of companies as well as IT development. Also, he is currently director of DotComNet IT Solutions as well as other companies. Further past experience as MD for marketing and sales company with 15 branches countrywide proves that Gustav is truly an entrepreneur by nature.

Today, Gustav focuses most of his time spearheading new and innovative ideas to streamline the Property.CoZa business model through strategic implementation of carefully thought through business strategies, including the development and rolling out state of the art IT technology to grow and enhance the productivity and future focus vision of the group. This innovative organisation is real estate company that’s rewriting industry rules, building client relationships on integrity, trust and professionalism and creating exceptional career opportunities for top real estate professionals.

Fundamentally, e-property trading has a considerable role to play in the future. As such, Property.CoZa fully embraces technology and the online environment, harnessing it as a tool for smarter business practices and a value-added service to agents and clients. The firm’s IT platform includes an Office Management System, electronic referral system and the advanced Treasure Map tool. Working smarter allows the company to provide clients with quicker turnaround times and a more efficient service.

The firm’s agents plug into a fully operational process, with an IT system that allows him/ her to operate from home, a coffee shop or the office. This flexibility creates a culture of entrepreneurship, optimal productivity and work-life balance. To facilitate efficient service delivery, each Property. CoZa office is electronically linked with a referral system to ensure speedy networking between offices and agents. The entire network operates on a seamless, end-to-end back office management system.

Alongside this, a user-friendly web tool allows agents to: access a document library which hosts all documentation required to market and conclude a sale, load property mandates or listings onto the Property.CoZa website, monitor website hits and automatically generate marketing collateral like brochures. It also sends all property mandates or listings to all the major property websites including Property24, MyProperty, SAHometraders, Private Property and many more. Therefore, a clients’ property will be professionally represented and marketed every step of the way.

Each Property.CoZa office is electronically linked with a panel of Property Lawyers/ Conveyancers through a unique after-sales reporting web tool, Treasure Map. Treasure Map is a revolutionary real-time web tool developed by Property.CoZa in conjunction with Property Lawyers, which covers the entire life cycle of the registration process of the deal and enables clients and the firm’s dedicated team to access more relevant
information than standard software packages.

Overall, Property.CoZa strives to be South Africa’s most dynamic Real Estate Organisation by providing an uninterrupted personal service to its clients, with a focus on expedience through commitment, reliability, professionalism and trust. Looking ahead, this will remain its ongoing focus as it seeks to build upon its current success and continue to provide clients with the exceptional level of service that they have to expect and rely on.

Company: Property.CoZa

Contact: Gustav Kruger

Address: Block A, Ground Floor, Deus Exorno Building, Bondev Park, Cnr. Wierda Rd & Willem Botha Str, Centurion, Gauteng, South Africa

Phone: 0027126580046 

Website: www.property.co.za

The differences between GRC approaches in Europe and the Middle East

The differences between GRC approaches in Europe and the Middle East

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The differences between GRC approaches in Europe and the Middle East

The governance, risk and compliance (GRC) industry is constantly evolving, adapting and responding to a plethora of stimulants including economic, governmental and organisational changes. Global economic events such as the 2008 financial crisis were particular markers that changed the way organisations all over the world viewed GRC and financial services. Following this, GRC programmes were reimagined and implemented holistically to reunify and prevent the organisational silos that had formed in the race for maximum growth pre-2008.

The West and the regulatory environment

In the West, governments took to implementing stringent regulations, enforced by regulatory bodies such as the Financial Conduct Authority (FCA) in the UK, the European Systemic Risk Board (ESRB) in Europe and the Securities & Exchange Commission (SEC) in the US to name a few. These bodies seek broadly to enforce regional legislation and issue sanctions to keep organisations in check in the hopes of preventing any future financial disasters.

Now, a decade on from the 2008 financial crash, Europe continues to be a heavily regulated region and faces ongoing regulatory evolution, with new laws such as MiFID II already implemented this year and the General Data Protection Regulation (GDPR) due to be enforced on the 25th May. In addition, the regulatory ramifications following the Brexit vote could see many more changes in the UK to come. However, the approach to GRC adoption within European organisations has shifted from the wide-scale implementation to more ad hoc. GRC initiatives across Europe are becoming specific to one factor, such as the implementation of GDPR, bringing the threat of fixing one GRC ‘leak’ only to see another emerge elsewhere.

Reputation and regulation in the Middle East

Yet, it seems the shoe is on the other foot in other regions, such as the Middle East. While regulatory bodies’ legislations and sanctions have remained fairly low, enterprises have been faced with intense scrutiny from customers and partners in recent years. In today’s age of transparency, the customer view and voice has been magnified by on-demand news and social media, as well as sites such as change.org that demand action from businesses all over the world.

This has been a particular issue for financial market participants in the Middle East, with the global spotlight focusing on anti-money laundering (AML) and terror funding initiatives due to high-profile incidents that have graced global news platforms. Over recent years, multiple court cases have linked financial institutions with money laundering or terror funding investigations and, regardless of their outcomes, they have influenced the West’s decision to invest in financial institutions throughout the Middle East and wider region.

Increasingly, consumers want to buy from businesses that are acting ethically. As a result, banks and other financial institutions in the Middle East feel they’re under higher-levels of pressure than they would face from a regulator or government and are seeking to project a stable and responsible company image outward to the global market. Often this is a decision coming from C-level executives, rather than ‘ like the West ‘ as a response to departmental requirements. Boards and executives in the Middle East have realised that fixing a specific issue due to a point regulatory pressure doesn’t remove the spotlight on them simply because of who and where they are ‘ so they react by looking at enterprise GRC holistically.

Implementing a strong GRC programme and corporate culture

Companies that are looking to bolster GRC processes successfully throughout their organisation need to look at the internal culture and existing systems in place and foster buy-in from employees. This can be done by encouraging three changes in how employees and programmes work and then slowly but surely how they think will follow.

Unify and integrate GRC systems

In order to view the company and risk ecosystem as a whole, firms should unify any siloed GRC operations that may have branched off in separate departments or locations. Following reunification, organisations should implement holistic and integrated GRC processes to standardise compliance management, taxonomy and operations processes across the board. Mapping each regulation to global objectives, business processes, risks, controls and policies will help identify patterns across multiple business units and areas of compliance. Decision makers and board executives will be able to assess risks and compliance requirements across multiple regulations that are affecting the entire organisation.

Monitor internal and external sentiment

Customer sentiment, particularly toward financial services organisations in the Middle East, is constantly changing and affected by global news and events. Organisations can track a variety of intelligence sources ‘ including regulatory agencies, trade associations, industry publications, national publications and social media ‘ to stay informed on current issues and regulatory intelligence. As such, ethical behaviour can lead to increased brand respect in the global market and organisations with self-governance programmes are seen as a safe pair of hands.

In addition, organisations need to monitor employee engagement with new GRC programmes. One of the best practices for this is to push changes from the top-down and the bottom-up. Educating senior employees on how their role helps to achieve the business’ objectives enables ethical management and employees lower down the chain follow. Furthermore, encouraging employees to interact with systems using a recognition scheme facilitates interaction with programmes as well as improvement from a user-level.

Utilising consumerised technology

Technology is changing the game. Today, since information is readily available on-demand users in organisations have low tolerance for out-of-date, slow enterprise software, vital applications are often bypassed and don’t serve their intended function. By turning to consumerised GRC technology, organisations can ensure employees actively, or passively, engage with GRC processes. Automating business programmes will streamline activities, reducing costs of admin and data heavy processes, and free up employee time, boosting productivity, while reducing risk exposure.

Market regulation is undoubtedly vital, however, as seen in the West, overregulation can stifle holistic GRC innovation. As such, soon some of the best benchmarks in corporate GRC may well be found in the Middle East instead of Europe. Despite fewer regulations, Middle Eastern companies are having to self-govern themselves to a higher-standard to attract global investment and their GRC programmes are flourishing as a result.

Regardless of location or industry, culture change within an organisation is hard to achieve and harder to measure. But, if organisations onboard these changes to create a living GRC programme with centralised, technologically advanced systems that are regularly assessed and updated from all ends of the employee chain, they have the best chance at preventing, adapting and anticipating GRC risks in the organisational ecosystem.  

 

By: John Palmiero, SVP of EMEA at MetricStream

IS ABERDEEN BACK ON THE COMMERCIAL PROPERTY INVESTOR�S SHOPPING LIST?

IS ABERDEEN BACK ON THE COMMERCIAL PROPERTY INVESTOR’S SHOPPING LIST?

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IS ABERDEEN (SCOTLAND, UK) BACK ON THE COMMERCIAL PROPERTY INVESTOR’S SHOPPING LIST?

Mark Fleming, director in the investment team at Savills in Scotland.

There has been a notable shift in investor sentiment towards Aberdeen’s commercial property market in recent months and 2018 could see investment volumes returning to, or indeed exceeding, the 10 year average.

The Scottish city is near unique in its abundance of long-term, index linked, income producing assets, that were pre-let and built between 2012-14 to satisfy demand from occupiers who had little to choose from in terms of existing stock at a time when the oil and gas sector was booming.

Global and domestic energy occupiers scrambled to have a foothold in the  European energy market capital and at one point in 2013 there was only 10,000 sq ft (929 sq m) of Grade A office space available in Aberdeen to satisfy over one million sq ft (92,900 sq m) of active requirements. As such developers were able to command attractive lease terms (e.g. long leases with index linked reviews), from occupiers who needed to expand and move to better quality offices in order to retain and recruit the skilled workforce necessary to compete in the industry.

The resulting strong rental growth in the face of this overwhelming demand pushed Grade A rents north of £30 sq ft, in some cases reflecting growth of 30 per cent over two years. All this activity and rental growth in turn attracted strong levels of investment activity, driving prime office yields down to 5.5/5.75 per cent and putting Aberdeen on a par with Edinburgh and Glasgow. 

Following the crash in the price of Oil (which hit a low of around $28 per barrel in 2015), Aberdeen’s property market suffered a consequential slump in activity where take-up fell and supply of accommodation across all sectors increased. However, in tandem with the strong recovery in the price of Brent Crude seen in recent months ‘ which at the point of writing in January 2018 is hovering around $68 – $70 a barrel ‘ the city’s office occupier market is picking up again. The strong correlation between the price of Brent Crude and office take up is depicted in the chart below:

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This modest improvement in occupational markets is coinciding with a renewed interest in the city from investors, particularly from overseas, including Middle Eastern and US equity. The current activity is not necessarily just down to a recovery in the price of Brent Crude. Indeed, it is more likely to have been sparked by the devaluation of Sterling, coupled with the current soft pricing of investment stock in Aberdeen (following the Oil crash), making it significantly cheaper than elsewhere in the UK. However this recovery in Brent Crude and a perception that the worst is over, may continue to fuel this renewed Investment activity.

Key deals illustrating this activity include the acquisitions of: Lloyd’s Register building on Prime Four Business Park for c. £40 million; TOTAL’s HQ at Westhill Business Park for £39.375 million; Statoil’s HQ office, also on Prime Four Business Park, for c. £13.75 million; and Ensco House, Gateway Business Park for c. £6.75 million.

It is fair to say that the current interest is relatively risk adverse and far more focused on the cash-flow attributes of the deal including the quality of tenant(s), length of lease and indexed rent review mechanisms, rather than simply the intrinsic property characteristics (e.g. location, specification and rental growth prospects). Thus so long as the strength of the tenant is assured and debt is available, with these attractive yields on offer, the investor can be ‘guaranteed’ generous cash on cash returns far superior to those on offer elsewhere in the UK.

The following graph illustrates this recovery against crude oil prices and we predict that in 2018, we may well see investment volumes returning to or indeed exceeding the 10 year average.

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Today we are operating in a significantly different market place to where we were three to four years ago, but Aberdeen is back on the shopping list for certain investors who are looking for secure income offering attractive yields and very healthy cash-on-cash returns.

Healthy Outlook for Dubai Real Estate Sector

Healthy Outlook for Dubai Real Estate Sector

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Mixed level of activity in Dubai office market indicates healthy outlook for sector, says Cluttons

While the level of office market activity remains mixed throughout Dubai, Cluttons’ Spring Office Market Bulletin indicates growing maturing and a healthy outlook for the sector. As occupiers continue to ‘rightsize’ to suit their business needs, against the backdrop of rising inflation and global economic factors, office rents have continued to moderate, according to leading international real estate consultancy, Cluttons.

The report shows that headline rents in the city’s top tier free zones have remained largely steady, bar one or two low quality buildings. Away from prime Grade A buildings, which remain well let and in high demand, landlords are demonstrating greater flexibility and are largely receptive to rent reductions at renewal.

Faisal Durrani, Head of Research at Cluttons said: ‘Global economic factors continue to have a direct impact on the real estate market in the UAE. In the office market, upper limit headline rents have been affected, with occupiers either sitting tight, regearing leases, or continuing to consolidate operations. In fact, 5 of our 24 submarkets registered minor downward adjustments during the final quarter of last year, with the weakness persisting into 2018. It is our view that this will continue for the remainder of the year with rents set to fall AED 5 psf to AED 20 psf. However, core free zones are likely to buck this trend, with rents holding steady.’

Cluttons’ latest report also indicates that while overall conditions may seem flat, landlords are not yet at the stage where large discounts and extensive incentives need to be offered.

Paula Walshe, Director of International Corporate Client Services at Cluttons said: ‘So far, the introduction of VAT has not had any real impact on landlord behaviour but we are monitoring this closely. While absorbing the 5% VAT costs does not appear to have been considered yet, this may well emerge as an option should rental weakness linger into 2019.’

Cluttons is also monitoring the rise of co-working and serviced office providers. The evolving definition of an office, along with the rise of remote working, is fuelling this trend globally.

Walshe continued: ‘Landlords in Dubai can perhaps learn from this trend in order to generate more interest in vacant stock, although with work visa quotas still linked to the amount of space let, organisations operating with an ‘agile working’ policy may still need to let more space than they need.’

Cyril Ramaphosa has succeeded Jacob Zuma to become the 5th President of South Africa.

Cyril Ramaphosa has succeeded Jacob Zuma to become the 5th President of South Africa.

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Commonwealth Enterprise and Investment Council welcomes Cyril Ramaphosa as the 5th President of South Africa

Less than 50 days before the Commonwealth Business Forum (CBF) comes to the UK for the first time since 1997, Cyril Ramaphosa has succeeded Jacob Zuma to become the 5th President of South Africa.

Following Jacob Zuma’s resignation, Cyril Ramaphosa was elected on 15th February 2018, unopposed, as the South African President. The Commonwealth Enterprise and Investment Council (CWEIC) has welcomed Mr Ramaphosa’s election, not just as a success for South Africa but also for the Commonwealth. Mr Ramaphosa is a long-standing supporter of the Commonwealth and the CWEIC, and co-hosted the very first Commonwealth Business Forum in Edinburgh in 1997.

Chairman of CWEIC, Lord Marland has personally written to President Ramaphosa inviting him to attend and speak at the Commonwealth Business Forum, which takes place in the days preceding CHOGM 16-18th April. CWEIC is also expecting a strong delegation of South African business leaders to attend the Forum.

South Africa is the second largest economy in Africa, after Nigeria and is the only African member of the G20. South Africa’s leaders, from both Government and business, have a significant contribution to make to the Commonwealth prosperity agenda, specifically in the agriculture, mining, energy and service sectors. There are numerous opportunities which exist in these areas for business across the Commonwealth. In particular, private sector has a role to play in helping South Africa face its current challenges.

Commenting on Mr Ramaphosa’s election, CWEIC Chairman, Lord Marland of Odstock said: ‘I want to extend my congratulations to President Ramaphosa. His leadership will be invaluable in the coming months and we stand ready to assist the President in delivering his essential economic agenda for South Africa. As a long-standing friend of the Commonwealth, I was delighted to invite the President to give a keynote speech at the Commonwealth Business Forum. This would be a unique opportunity for South Africa to demonstrate its importance in the region, and across the whole of the Commonwealth’.

Lord Mayor Charles Bowman said: ‘The City of London extends its sincerest congratulations to President Ramaphosa on his election. As a long-standing supporter of the Commonwealth, we would be thrilled to host the President at the upcoming Commonwealth Business Forum in April and for him to deliver a keynote speech.

‘Over the years Lord Mayors of the City of London have led numerous business delegations to South Africa cementing the close economic and commercial partnerships between us. I am certain that these strong and sustainable ties between us will continue to grow well into the future.’