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CEO appointments in the UAE surpass pre-pandemic highs

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ZAWYA informs that 42% of UAE CEOs are non-nationals, and 5% are women, compared to global averages of 24% and 6%, therefore CEO appointments in the UAE surpass pre-pandemic highs per a recent report. Would this statement of fact have any meaning other than those consequent to the pandemic?

The image above is for illustration and is of the UAE appointing a new Governor.

Businessman wearing a mask in the office for safety during the pandemic. Image used for illustrative purpose. Getty Images

The appointment of new CEOs has surpassed pre-pandemic highs as companies demonstrate confidence about their prospects and their ability to find the right leader, according to a new report.

The Route to the Top 2021 by Heidrick & Struggles showed that the number of CEOs appointed across 14 countries was up 22.6 percent in the first half of 2021 when compared with the first half of 2018, and up 181 percent compared with the second half of 2020.

The report showed that 42 percent of CEOs in the UAE are non-nationals, compared with a global average of 24 percent, and five percent are women, compared with a global average of six percent. Of the 14 countries surveyed, Ireland had the highest proportion of female CEOs at 14 percent, while Hong Kong had the highest proportion of non-national CEOs at 76 percent.

More than a third of UAE CEOs (35 percent) had previous CEO experience in their last two roles.

Globally, newly appointed CEOs are more likely to be women (11 percent) and to be from countries other than where the company is headquartered (30 percent) and to have cross-border experience 46 percent.

In the UAE, 42 percent of new CEOs have advanced degrees, 16 percent have cross-border experience, and 23 percent have less than one year of experience as CEOs.

Other findings are that 42 percent of UAE CEOs were appointed before the age of 45 but the average age is 55, 30 percent were formerly heads of divisions but only two percent had previous COO experience, compared to 14 percent globally.

“Looking ahead, COVID 19 has raised expectations on the role of businesses in addressing concerns such as climate, equality, cybersecurity and other external realities; boards are rethinking the process of the CEO succession to cope with these changes, said Alain Deniau, head of CEO and board of directors practice, Heidrick & Struggles, MENA.

“This means that companies will open up to new perspectives and ideas. In addition, we expect more attention to shift towards leadership skills rather than specific skills.”

(Writing by Imogen Lillywhite; Editing by Seban Scaria)

Imogen.lillywhite@refinitiv.com 

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Urgent Priorities for Transforming Infrastructure

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‘A New Space Race’ report highlights urgent priorities for transforming infrastructure by Jayne Smith encompasses all that is required from all humans to safeguard a future. It has notably confirmed that “reducing carbon emissions, enabling future working models, and providing its potential to play a more active role in the health and well-being of people” is absolutely vital.

The image above is for illustration and is of the IEA on Net Zero by 2050.

A new research report released by Siemens Smart Infrastructure, titled ‘A New Space Race,’ has highlighted the increasingly urgent need to transform global infrastructure to focus on adaptability, resiliency and decarbonisation. Data from the report claims infrastructure leaders worldwide recognise the need for digitalisation to tackle challenges in energy systems and the built environment.

“Infrastructure stakeholders are starting to act with real urgency. They recognise the need to accelerate decarbonisation, to build greater resilience and adaptability, while maintaining competitiveness,” said Matthias Rebellius, CEO, Siemens Smart Infrastructure. “Major change is challenging, but our highest goals are possible if we harness the power of data and new technologies, welcome greater cooperation and keep driving innovation.”

Based on interviews with 500 senior managers from a range of infrastructure disciplines in 10 countries, the report highlights changing priorities in a post-pandemic world. Among its findings is an increasing focus on the role of infrastructure in driving a digitalised energy transition, reducing carbon emissions, enabling future working models, and its potential to play a more active role in the health and wellbeing of people.

Digitalisation as an enabler for decarbonising infrastructure

The report suggests a significant rise in the number of organisations setting low-carbon or net-zero targets, and most respondents are optimistic about these goals, with the majority (94 percent) expecting their organisations to be carbon neutral by 2030.

“Buildings will be a lot more digital in the future”

67 percent of energy infrastructure stakeholders believe that net zero energy is impossible without digitalisation, with AI-driven prediction and automation considered to have the biggest impact on infrastructure assets, projects, and investments over the next five years.

However, the majority (63 percent) of infrastructure stakeholders believe the digitalisation of buildings and power networks is lagging behind digital progress in other industries. Only 31 percent of those questioned said they make full use of the data available to them, with almost half reporting they have not yet done so.

Future adaptability is the most important requirement for buildings

In addition to the impact of infrastructure on the environment, the report also highlights the changing needs and expectations of people in their buildings, factories, facilities, offices, homes and surrounding infrastructure. It claims that for many, adaptability is considered the most critical factor when designing a new building or facility, to allow the re-purposing of spaces to suit changing occupants. Not only was this considered the most important thing to get right; it was also considered the most difficult.

“Buildings will be a lot more digital in the future,” said Rebellius. “A facility manager will not only be able to automate, and remotely control more functionality, they will also benefit from a wider network of better sensors that flow into integrated visualisations and richer datasets. This will support a new level of fine-grained control and insights that are needed to make future buildings more resilient and flexible.”

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Read more on: EnvironmentNewsTechnology

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The anxiety list for MENA entrepreneurs is long, as is the one curing it

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Hadi Khatib on AMEInfo of 18 September 2021 came up with this deep statement on the anxiety list for MENA entrepreneurs that is long, as is the one curing it

The anxiety list for MENA entrepreneurs is long, as is the one curing it

A research report on the mental health challenges and wellbeing of entrepreneurs due to COVID-19 in the MENA region revealed anxiety has several facets in the minds of these leaders. But all of these insecurities have cures.

  • 55% of startup founders said that raising investment has caused the most stress.
  • More than 95% of entrepreneurs view co-founders as family members and/or friends.
  • Research finds that entrepreneurs are happier than people in jobs.

EMPWR, a UAE-based digital media agency dedicated to mental health and an exclusive mental health partner for WAMDA and Microsoft for startups, published a research report on the mental health challenges and wellbeing of entrepreneurs due to COVID-19 in the MENA region.

The research indicated that startup founders undergo higher levels of stress than the rest of the region, with twice the likelihood of developing depression issues.

55% of startup founders said that raising investment has caused the most stress; the pandemic was the second most-cited reason cited by 33.7% of respondents.   44.2% spend at least 2 hours a week trying to de-stress. 

Other insights, uncovered by the report, include:

  • A good relationship between co-founders can help startups navigate the pandemic-hit market. More than 95% of entrepreneurs view co-founders as family members and/or friends
  • Many entrepreneurs live well below their means to fund their ventures, leading to stress that is detrimental to their health

With only 2% of healthcare budgets in the MENA region currently spent on addressing mental health, the impact of the COVID-19 pandemic on young entrepreneurs and achievers could lead to an economic burden of $1 trillion, by 2030, according to the report.

EMPWR’s MENA partners shared special offers on their mental health services for the region’s entrepreneur community.

From Saudi Arabia:

Labayh is offering the technology ecosystem a 20% discount on their online mental health services for 2 months. Promo code: empwr, with the offer valid until October 29.

From Egypt:

O7 Therapy are offering 50% off their online mental health services, for 50 Entrepreneurs in the MENA region. Promo code: Entrepreneur50, valid until December 1, 2021.

From the UAE:

My Wellbeing Lab is offering 20 one-on-one coaching sessions to entrepreneurs that wish to be coached and helped; alongside unlimited access for any entrepreneur to their “Discovery Lab”, a platform that gives entrepreneurs and leaders insights into their mental wellbeing as well as their teams. Promo code: MWL21.

Takalam is offering 10% off for 3 months. Promo code: Impact.

Mindtales is offering the MENA ecosystem 50% off their services for one month. Their App can be downloaded here.

H.A.D Consultants is offering 20 one on one coaching sessions to entrepreneurs. Promo code: HAD_SME01.

From Oman:

Nafas, a meditation app focused on reducing stress, anxiety, and help with insomnia, is offering access to its platform. Register as a user via this link to redeem benefits. 

Entrepreneurs’ mixed emotions

Entrepreneurs must grapple with uncertainty and being personally responsible for any decision they make. They likely have the longest working hours of any occupational group and need to rapidly develop expertise across all areas of management while managing day-to-day business.

Yet despite all this, research finds that entrepreneurs are happier than people in jobs.

To understand this, a comprehensive and systematic review of 144 empirical studies of this topic, covering 50 years revealed:

1. It’s not all about pay

Work on the economics of entrepreneurship traditionally assumed that entrepreneurs bear all the stresses and uncertainties in the hope that over the long term they can expect high financial rewards for their effort. It’s false.

2. Highly stressful, but…

High workload and work intensity, as well as financial problems facing their business, are at the top of the entrepreneurs’ stress list.

But some stressors have an upside. While they require more effort in the here and now, they may lead to positive consequences such as business growth in the long term. Some entrepreneurs appear to interpret their long working hours as a challenge and therefore turn them into a positive signal.

3. Autonomy is both good and bad

The autonomy that comes with being an entrepreneur can be a double-edged sword. Entrepreneurs can make decisions about when and what they work on – and with whom they work. But recent research into how entrepreneurs experience their autonomy suggests that, at times, they struggle profoundly with it. The sheer number of decisions to make and the uncertainty about what is the best way forward can be overwhelming.

4. An addictive mix

The evidence review confirms that, by any stretch of imagination, entrepreneurs’ work is highly demanding and challenging. This, along with the positive aspects of being their own boss coupled with an often competitive personality, can lead entrepreneurs to be so engaged with their work that it can become obsessive.

So the most critical skill of entrepreneurs is perhaps how they are able to manage themselves and allow time for recovery.  

Stress management tips for entrepreneurs

Identify what the actual source of your stress is. Is it tight deadlines, procurement issues, raising capital, managing investors’ expectations, building a talented team, or delay in landing the first sale for your new startup business?

Even if numbering more than a few, break them down because unmanageable tasks look simpler when broken down into smaller segments. Then, list down how you plan to successfully tackle each issue. Meanwhile, exercising multiple times a week has been rated as one of the best tactics for managing stress.  

Another technique for handling stress is to take a break. Rest as much as you can before going back to continue with the tasks.  It’s also a good idea to reach out to friends, family, and social networks because they are likely to understand what you’re going through and offer words of wisdom and courage.

Stay away from energy-sapping junk food. Eating healthy keeps you fueled for the next challenge. Finally, get enough sleep, and power naps. Sleep helps your body and mind recover.   

Hadi Khatib is a business editor with more than 15 years of experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about them. He can be reached at:  hadi.khatib@thewickfirm.com

Global Sand and Gravel Extraction Conflicts with the UN’s SDGs

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Global Sand and Gravel Extraction Conflicts with Half of UN Sustainable Development Goals by Eurasia Review of , is an eye-opener at this conjecture of these ingredients that we take for granted in all our developments.
Sand and aggregates together with water form the backbone of the modern world but increasing urbanisation due to a growing global population has led to a spiralling rise in their extraction, with serious environmental, political and social consequences.

The above image is for illustrative purposes and is of EcoWatch.

A view of ‘The World Island’ development seen from the air in Dubai, United Arab Emirates. Credit: Chris Jackson/Getty Images.

Global Sand And Gravel Extraction Conflicts With Half Of UN Sustainable Development Goals

Sand and gravel are the most mined materials in the world, with between 32 and 50 billion tonnes extracted globally each year. They are being extracted faster than they can be replaced. But according to a new study led by researchers at McGill University and the University of Copenhagen, the human and environmental costs of this extraction on lower and middle-income countries have been largely overlooked.

“With this work we’re able to show that in low- and middle-income countries, sand industry is in direct conflict with almost half of the 17 Sustainable Development Goals,” said Mette Bendixen an assistant professor in the department of Geography at McGill University and one of the lead authors of the work, which was published recently in One Earth. “The impact that sand and gravel mining have on the environment, conflicts with goals linked to the natural dynamics of ecosystems. Furthermore, pollution, health-related issues and the informal nature of many mining activities creates societal inequalities negatively affecting small scale miners and their families.”

Increasing demand and market prices are leading to unsustainable exploitation, planning and trade. Removal of sand from rivers and beaches has far-reaching impacts on ecology, infrastructure, national economies, and the livelihoods of the 3 billion people who live along the worlds’ river corridors. Unregulated sand mining has been documented in 70 countries across the globe, with associated conflicts related to ecological destruction, livelihood disruption and labour rights violations. Battles over sand have reportedly killed hundreds in recent years, including local citizens, police officers and government officials.

Opportunity as well as destruction

But the researchers also suggest that, if it is well managed, the mining of these resources also potentially offers certain opportunities to meet some of the UN’s 17 Sustainable Development Goals (SDGs). They also point out that these resources have the potential to help drive socio-economic development to advance some of the UN’s SDGs, such as eliminating poverty. For example, sand and gravel provide labour for millions of people, they supply material for the renewable energy sector and for roads and infrastructure in general.

“Sand resources, when managed appropriately, can create jobs, develop skills usable in other sectors of the economy and spur innovation and investment, whilst continuing to underpin the infrastructure upon which modern society is founded.” argues Lars L. Iversen, an assistant professor at the University of Copenhagen’s Center for Macroecology, Evolution and Climate research who was a lead author in the study. “Therefore, the solution is not to simply ban all mining activities. Finding the balance between the pros and cons of sand and gravel extraction is becoming one of the great resource challenges of our century.”

We need to build effective management plans and policies for sand resources that support the global sustainable development goals,” says Mette Bendixen “In order to do so a more complete understanding of the impact of sand and gravel mining is required. This need is especially acute for many countries in low- and middle- income regions that currently possess no overview of the extent of local mining activities, or how such activities are impacting ecosystems and local communities.”

Quick facts

  • A large proportion of the increase in aggregate (a collective term for sand, gravel, and crushed stone) consumption has occurred in BRICS (Brazil, Russia, India, China, and South Africa) countries.
     
  • For cement alone, a proxy for aggregate usage, China’s demand has increased exponentially by 438% over the past 20 years, compared with an increase of 60% in the rest of the world.
     
  • While current global aggregate consumption of 32-50 billion tonnes per year is dominated by consumption from high (per capita) production sources in North America and China, the greatest relative increase in production is projected to occur in LMICs (lower and middle-income countries).
     
  • Aggregate mining in LMICs is often executed informally by artisanal small-scale miners providing an essential source of livelihood for many people worldwide.
     
  • Violence can also increase alongside mining. In India, the mining of sand, in particular, has been associated with local conflict linked to water access and pollution.

Key combination for corporates targeting successful sustainability

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Arabian Business posted DeBacker’s thoughts on how the Key combination for corporates targeting successful sustainability breakthroughs are the one and only remaining way out of today’s traumatic times. Here they are.

Key combination for corporates targeting successful sustainability breakthroughs

Through the convergence of technology, capital, and scale-up capabilities, industry incumbents can translate their sustainability visions to reality – ushering in a new chapter of green finance practicality

Philippe DeBacker, managing partner, global practice leader Financial Services, at Arthur D. Little.

As corporates navigate persisting economic difficulties, unlocking growth and creating strategic advantages represents an entirely different sustainability challenge.

While transformational change has traditionally been hindered due to funding restrictions and expensive innovation projects, a new approach can now be pursued with the post-pandemic era approaching.

Through the convergence of technology, capital, and scale-up capabilities, industry incumbents can translate their sustainability visions to reality – ushering in a new chapter of green finance practicality.

Although this scenario may have seemed improbable not long ago, several trends have simultaneously transpired to lay the foundations for green financing breakthroughs.

Governments are engaging in heightened regulatory activity to build resilient economies and investors are prepared to pursue higher-risk green initiatives. Industrial companies are also introducing corporates to potential green technologies, while collaboration activities are broadening ecosystems via new players, partners, and opportunities.

Crucially, this applies to the Middle East, where the required framework and levers for green finance can benefit the wider corporate community and region exponentially. Green financing for sustainability projects increased by 38 percent to reach $6.4 billion in H1 2021 alone, while green finance is projected to create $2 trillion in economic growth and over one million new jobs by 2030.

These statistics certainly highlight the potential accompanying the green finance segment – and there are various innovative green asset and technology financing options available for interested parties to explore. Besides investment funds, project financing, and debt or equity investments, experts and commercial banks can facilitate technology deployments and green project acceleration through several green funding areas.

As corporates strive to achieve transformational change by acquiring capital, harnessing technology, and successful scaling their capabilities, they can do so backed by the following:

  • Sustainable bonds: Climate bonds are viable for mature investors seeking to introduce climate change solutions and projects, increasing available funding for green initiatives while providing positive sustainability benefits. Blue loans can also raise finance for projects within the blue economy, while ESG-linked finance is available and not linked to specific use cases.
  • Asset recycling platforms: As demonstrated courses of action from capital-intensive clean infrastructure, there are multiple asset recycling platform choices for corporates. Capital recycling designates funds toward greener projects, ‘farm down’ entails equity stakes being sold progressively, yield companies produce cash flow and returns through long-term contracts, and special purpose acquisition companies (SPACs) raise funding for capital-intensive startups – including $80bn in 2020.
  • Technology financing: Corporates exploring development expenditure (DEVEX) financing can utilise several sources depending on project technology readiness levels (TRLs). These include public funds for early investment and support, government-backed venture funds to complement private venture capital, and SPACs for sizeable technology funding.
  • Asset management: As Shariah investing emerged a decade ago as a desirable asset class, green financing is increasingly attractive capital with promising returns due the the profound change in economic make up, such as electric vehicles promising to overtake carbon fueled cars.

Admittedly, green financing options are bound by demands, aspirations, and conditions per each individual corporate, with eventualities dependent on specific factors. That being said, every corporate seeking sustainability finance can do so having taken note of similar instances in other sectors. In line with this, there are four actions one can take to help drive success:

Create a sustainable ecosystem

With an array of green technology ecosystems continuously welcoming partners specialising in different industries and technologies, corporates should prioritise developing and forming a sustainable ecosystem. This ecosystem should comprise technology, scale, and capital, which will be central to investment objectives coming to fruition.

While large companies already tend to be involved in multiple ecosystems, realising aspirations and achieving maximum value for many others hinges on proactive action in this direction.

Establish a comprehensive business model

No matter their readiness level, all corporates should pursue projects knowing that their assets or technologies becoming commodities starts and ends with a robust business model. Particularly during early development phases, models often have discrepancies in terms of clarity and direction. Therefore, corporates should define the value they are striving to build, identify the most prudent way to create cash flow, and decide where ownership and control will rest.

Deliver on priorities and objectives strategically

For businesses, executing every element of their business model requires a strategic approach. Whether this is done internally, via an external collaborator, or combining the two, successfully meeting targets and progressing requires a strategic roadmap that includes stakeholder alignment and ambition-timeframe balance.

Adapt the corporate governance model

From board to ethical investing, the corporate world is rethinking the way it creates value and governs itself. New oversight committees are formed in global complex companies to ensure consistency across multiple business lines and geographies – and this is something corporates should also pursue.

Backed by the most suitable innovative financing option, corporates have an opportunity to embrace the support available to them and make continuous strides towards sustainable growth breakthroughs.

The above steps will guide companies on their innovation journeys, with technology, capital, and scale-up capabilities simultaneously driving project success and green growth.

Philippe DeBacker, managing partner, global practice leader Financial Services, at Arthur D. Little.