UAE Business Thought Exchange: ES-KO International - Daily Telegraph

If the USA is the land of opportunity then Dubai is arguably the land of dreams.

It has carved out a position for entrepreneurs from Asia, the East and elsewhere that offers the opportunity to make your fortune within your lifetime without having to have been born with the right background.

The business opportunities at this crossroads between East and West, in the Arabian gulf and in Africa are enormous, particularly if the metals and minerals of Africa produce new wealthy consumers.

Specifically, what is new is the diversity of businesses that operate from Dubai and how much they export coupled with the apparent ease of setting up.

From the businesses attending the Dubai Thought Exchange, the drive to succeed and the hunger to learn from others experiences is evident and the audiences with HSBC customers have helped to reinforce this.

The complexity of the region, the do's and don’ts and the Arabic mindset are not new but were clearly explained.

Culturally, businesses need to really understand the Arab mindset to succeed but the opportunities for retail in Dubai are clear with the plethora of brands and a large expatriate population as well as well off, young socially media conscious Arabs.

What was new was hearing about the large number of countries that import from Dubai and the low level of energy for energy intensive processes.

British business can learn that there is an available market in the emirate but also in the region.

However, targeted marketing is necessary particularly in the more conservative countries.

Dubai is a showcase from a marketing perspective for the region but also beyond because of the success of its tourism and the Emirates business model that makes Dubai and its international airport a hub.

Furthermore, in the global era of high-speed communications and technology where time is in short supply, British businesses need to readjust to building market positions through relationships for the longer-term gains.

What the British government should learn and actively implement is why Dubai is good for businesses.

It helps to have no tax but the real benefit of companies operating in Dubai is low bureaucracy which allows businesses the opportunity to develop design, manufacturing and marketing.

The Thought Exchange enabled us to leverage experiences and benefits that other businesses have faced.

This is a “free” consultancy, which is normally earned at a financial cost and a time cost.

The businesses participating, whatever their expertise or market or product, face the same issues of how to run, manage and benefit from controlled growth.

This encompasses financing, risk management, management controls and marketing strategies and initiatives.

From the factory visits, one can see how local manufacturers, taking advantage of low energy prices, can export to 40 countries and, with imported skills, technology and management, can compete with Europe.

At a specific level Dubai could house a central warehouse as our goods are in any event coming to Jebel Ali before onward transhipment.

Our trucking needs in Africa and elsewhere may benefit from meeting Gulliver’s trucking and our humanitarian aspirations could develop from local contacts.

However, it is the message of being always innovative, flexible, investing in quality and sustainability, creating or maintaining the right culture and striving for continuous measurable improvement that differentiates the best in class to the also-rans.

Entrepreneurs have all of these assets and being part of a group is reinvigorating.

ES-KO has gained and learned from this and, with renewed energy and passion coupled with controlled risk and business decisions, will continue to find and develop new business.

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Davos 2012: Business must look beyond the BRICs - Daily Telegraph

A survey of business leaders by Accenture found that 73pc said they needed to “speed up” their efforts to expand into emerging markets or risk it being “too late to do so.”

Of these, 40pc said they lacked the “strategic and operational capabilities to fully grasp opportunities” in their target markets while 57pc admitted they would have to “reassess” of “fundamentally rethink” their strategies entirely.

Companies are focusing on the obvious booming markets of China and India and are missing big opportunities.

Research shows that 21 other emerging economies, including Poland, Colombia, Malaysia, Nigeria and Kazakhstan, had more householder with an annual income above $50,000 in 2010.

Turkey will see the greatest absolute increase in household income from households earning at least $50,000 by 2020, a rise of almost 150pc to $635bn.

Mark Spelman, director of strategy at Accenture, said: “The landscape of high growth consumer markets is changing fast and companies must look beyond labels like the BRICs (Brazil, Russia, India, China) when formulating their growth plans. The diversity of growth rates means that companies must consider a broader range of opportunities by becoming granular in their identification of niche market segments.”

The survey of 588 company bosses from 85 countries was released at the World Economic Forum in Davos where global business and political leaders are debating ways to boost economic growth and stem the economic downturn.

Emerging markets has become a key focus for western companies since research shows that if current trends continue, the volume of trade between emerging economies will outstrip the existing volume between developed markets by the end of next year.

Mr Spelman said: “As trading volume shifts to high growth markets, businesses must either place themselves in these economies or miss out on the increasing trade that will flow between them.”

He added: “Many companies are holding healthy cash reserves that could be used to expand, and our research identifies countries with high growth consumer markets that could represent significant opportunities. Yet companies continue to hesitate, which could be one of the greatest risks in today’s competitive environment.”

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There is a golden opportunity to be seized in Asia - Daily Telegraph

It is no coincidence that my first international visit in 2012 is to Asia. While the European economy is struggling, Asia is growing at a remarkable pace. This presents huge opportunities for British businesses to trade and invest, and I’m determined that we get out there and seize them.

Of course, finding a credible long-term solution to the eurozone crisis remains the most urgent priority for the global economy in 2012. The eurozone countries have made progress, and liquidity from the European Central Bank is helping. But there remains more to do, as the euro area itself acknowledges. No one likes to see credit ratings downgraded, but what matters are the actions countries take to restore fiscal sustainability and support growth.

This week, I’m visiting Hong Kong, China and Japan with a simple message: Britain is open for business. I believe we can make Britain the home of Asian investment and Asian finance in the West, as a complement to full and committed membership of the EU. The Government is taking active steps to make this happen.

I first visited China 20 years ago. Since then the Chinese economy has increased 15-fold. In a generation, China’s middle class is forecast to be more than three times the size of that of the whole of Western Europe. It is precisely as Asian economies become richer that hundreds of millions of people will want to buy the things that British companies can sell them. They will buy modern medicines and branded goods from pharmaceutical firms such as AstraZeneca and GlaxoSmithKline. They will need insurance, banking, and accountancy services from companies such as HSBC, Prudential and Standard Chartered. And they will visit Britain as tourists, carried on Airbus wings and Rolls-Royce engines, joining us in celebrating the London Olympics and the Queen’s Diamond Jubilee.

There are already signs of success. The UK is now the largest source of foreign direct investment to China from within the EU and UK goods exports to China rose by 20 per cent last year.

The lesson of the past year has been that global confidence in a country depends on its determination to deal decisively with the challenges it faces. Britain has shown it is determined to do just that. We have taken the tough decisions to sort out our public finances; and we are doing what it takes to become one of the most competitive places to do business.

To increase our reach in Asia, as part of this approach, the Government has refocused the Foreign Office and the work of UK Trade & Investment to reflect the importance of Asia to our economic strategy, including through the significant expansion of our diplomatic network in China. During my visit I will be promoting infrastructure as just one of the opportunities the UK brings for Chinese investors. Rebuilding Britain’s older infrastructure is integral to our remaining competitive.

But perhaps the most interesting and exciting development concerns the Chinese currency – the Renminbi. While in Hong Kong, I will be announcing the launch of a joint private sector forum, with the Hong Kong Monetary Authority, to promote closer cooperation between the London and Hong Kong financial centres on the development of a global offshore market for the Renminbi (RMB). I want to position London as a hub for the RMB market, with the huge opportunities this brings for Britain. Total trade in China settled in RMB increased from just 0.7 per cent in the first half of 2010 to 9 per cent in the first half of 2011. There is scope for substantial expansion of the RMB market in the coming years, and London’s position as one of the world’s leading financial centres makes it perfectly placed to play this role. For the UK, this would be a boost both to business and jobs across the country.

Our common economic interests present an opportunity for Britain and Asia to work together, through the G20, to defeat the forces of protectionism in all its guises. We need to look at new and innovative alternative approaches to taking forward trade liberalisation. In the EU, we will continue to push ahead with ambitious free trade deals with India and Singapore this year, as well as maintaining momentum towards an ambitious agreement with Japan. At the same time, we need to ensure that a reformed and more representative IMF has the tools and resources to do its job. The capacity of the IMF may also need to rise to ensure those risks can be addressed, but this cannot be a substitute for action by the eurozone. Britain stands ready to play its part alongside the major Asian economies.

In the year that we welcome the world to the best Olympics ever, and as we celebrate the Diamond Jubilee, let’s ensure the world sees a Britain bold, decisive and optimistic about its ability to compete in the world. I know that in Britain, the jobs of the future depend on our ability to make the most of the opportunities that Asian markets present. A strong relationship with Asia is a central part of the Government’s economic strategy – moving from an economy built on debt, to a new, balanced economy where we save, invest and export. There are huge opportunities for Britain all over the world. Let’s seize them.

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London 2012 Olympics: businesses unprepared for disruption during Games but stand to benefit from legacy, survey says - Daily Telegraph

A survey of 1,200 companies around the UK conducted by Olympic sponsor BT has revealed some critical issues for businesses – particularly small and medium-sized enterprises

BT president of global services UK Emer Timmons said businesses see no major concerns about maintaining productivity and service levels during London 2012, but stressed that this confidence may be misplaced. She said companies had to start planning immediately for the impact and opportunities that the London Olympics presented.

However, there may be reasons for optimism as three-quarters of businesses in Vancouver, which hosted the 2010 Winter Olympics, say they have continued to enjoy higher sales even though peak demand fell once the event was over.

Sixty per cent say they have experienced ongoing Olympic-related benefits. Most of those businesses benefiting were in the media and leisure and retail areas.

"Four out of five organisations are confident of maintaining service and security during London 2012 despite the fact only 34 per cent have assessed the impact of risks such as a cyber attack," said Timmons.

"Seventy-two per cent of organisations are expecting their supply chain to be disrupted in some way but a quarter of them are seemingly prepared to put up with consequences because they are not planning to do anything about it.

"Forty per cent of companies expect staffing to be a headache because staff will want time off or are not able to get to work but a third of these companies have no plans to deal with this reduced staffing level."

Timmons said while a third of British companies surveyed are planning to hire temporary staff to deal with extra demands during the Olympics, the Vancouver experience was much greater. There, 56 per cent of companies hired temporary staff.

The senior trade commissioner for the Canadian High Commission Brian Parrott told Telegraph Sport that hotel occupancies across Vancouver continued to be at high levels nearly two years after the Games. The former British Columbia Olympics Minister Colin Hansen said the Games were much bigger than anyone had expected.

"It engaged with the excitement and emotion of 99 per cent of the public and many companies underplanned for that," Hansen said.

The survey showed 38 per cent of Canadian private sector companies believed they could have taken fuller advantage of the business opportunities of the Vancouver Olympics.

Hansen said London and the United Kingdom needed to appreciate leading executives from around the world would come to London because of the Olympics and this could create enormous opportunities for British companies.

Such was the unique drawing power of the Olympics, the chief executive officers of McDonalds and Coca Cola met for the first time at the Sydney 2000 Games.

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