Young Arab Leaders - Duke University`s Fuqua School of Business

Transcription

FINAL REPORT
Under the patronage and attendance of
Vice President and Prime Minister of the UAE and Ruler of Dubai;
Chief Patron of the Young Arab Leaders Board of Trustees , UAE.
H.H. Sheikh Mohammed bin Rashid Al Maktoum
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Young Arab Leaders would like to express their sincere gratitude to all the sponsors for their
contribution to the success of the event and in supporting entrepreneurship in the region.
Sponsored By:
Exclusive Cultural Partner:
Program Partners:
In association with:
Gala Dinner Sponsor:
Premier Media Partner:
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Index
EXECUTIVE SUMMARY
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04
WELCOME NOTE & SPECIAL ADDRESS
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05
PANEL DISCUSSION I : PROMOTING ENTREPRENEURSHIP
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06
PANEL DISCUSSION II : THE ‘IT’ EFFECT
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09
GALA DINNER – PALACE HOTEL
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12
GENERATION IN WAITING
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13
PANEL DISCUSSION III : PIONEERING OR MOVING BOUNDARIES
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14
CELEBRATING ZAMALA 2010
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19
‘INSPIRING ENTREPRENEURSHIP IN THE MIDDLE EAST’
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19
VISIT TO BURJ KHALIFA
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21
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Young Arab Leaders Annual Forum Regional Entrepreneurship Summit 2010 : Summary
‘Bridging the Divide: Entrepreneurship for the Arab Future’
5-6 November, 2010
The Address Downtown Hotel, Dubai, UAE
EXECUTIVE SUMMARY:
The Young Arab Leaders 5th Annual Regional Entrepreneurial Summit 2010 was held from 5-6 November at
The Address Downtown Hotel in Dubai under the
patronage of His Highness Sheikh Mohammed bin
Rashid Al-Maktoum, Vice President and Prime Minister
of UAE, Ruler of Dubai, and the Chief Patron of YAL’s
Board of Trustees.
Nowhere is the potential of individual empowerment
more apparent than in the creative energies unleashed
through entrepreneurship. Throughout the Arab world,
an increasing number of intrepid young entrepreneurs
are creating businesses, providing jobs, building brands
and fulfilling their own dreams.
But too often, these “success stories” are the exceptions
in a region which places a premium on job security and
stigmatizes "failure," and where aspiring entrepreneurs
lack access both to capital and to the experiences and
insights of their fellow travelers who have “made it.”
In order to highlight the challenges and bring out recommendations and possible solutions from experts, the
Young Arab Leaders (YAL) hosted “Bridging the Divide:
Entrepreneurship for the Arab Future” in Dubai, UAE,
from 5-6 November, 2010, under the patronage of His
Highness Sheikh Mohammed bin Rashid Al Maktoum,
Vice-President and Prime Minister of the UAE and Ruler
of Dubai, and Chief Patron of the YAL Board of Trustees.
The regional summit gathered over 300 leaders from
private industry, government, academia and nongovernmental organizations and brought out new ideas,
built creative synergies and offered valuable networking
opportunities. Delegates representing over 15 Arab
nationalities came together seeking to stimulate entrepreneurship and help unlock the creative potential of the
Arab world.
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Inaugurated by His Highness Sheikh Mohammed bin
Rashid, the summit was attended by His Highness
Sheikh Hamdan bin Mohammed bin Rashid Al
Maktoum, Crown Prince of Dubai, and other dignitaries.
Over 300 delegates attended the forum which called for
a review of the education system in the Arab world to
facilitate creativity and self-reliance, urged the youth to
be innovative and persistent, while asking government
and private sector organisations to create 10 million
jobs a year to tackle future social challenges that may
be generated by a fast increasing population.
Some speakers offered their real life examples while
others recommended a thorough review of the
academic and regulatory systems to enable more youth
to take an independent path to success.
Young Arab Leaders Annual Forum Regional Entrepreneurship Summit 2010
Welcome note:
Her Excellency Ms. Najla Al Awadhi, Member of the
UAE Federal National Council; CEO of Dubai Media
Incorporated (DMI); Director of Dubai One; and member
of the Board of Directors Young Arab Leaders, UAE,
welcomed the gathering and urged organisations in the
Arab world to be more flexible in their approach in tune
with the times to cope with the current challenges. She
said organisations are reformed and restructured
because of the current economic times and the YAL
continues to initiate fresh measures to fulfil the ambitions of the youth in the Arab world. The new initiatives
will ensure the youth begin a new era, contributing to
create a knowledge-based and sustainable community
in the region.
Al Ghurair called for four key initiatives – an effective
and practical education system for youth to set up
business and possess a practical mind, finance from
banks as well as government-guaranteed loans for
SMEs, right rules and regulations to encourage SMEs
and small entrepreneurs, and transfer of best practices
from the Arab world that has so many success stories
which the youth only need to follow.
"Educational institutions have a responsibility to teach
students entrepreneurship and foster entrepreneurial
thinking among students," he said.
---------------------------------------------------“Arab world has lot of success stories and the youth
only need to follow the example. Youth must learn
from old expertise and clone these experiences”
H.E. Mr. Abdul-Aziz Al Ghurair, CEO of Mashreq
Bank
Her Excellency Ms. Najla Al Awadhi
---------------------------------------------------Special Address:
He remarked: “Our forefathers had limited opportunities.
They were mostly into pearl diving, going out to the sea
for three-to-four months at a stretch. Now the opportunities are limitless. The world has a lot of challenges but
with organisations such as YAL that can adopt new
methodologies we can guarantee the success of our
youth who have to establish giant companies to contribute to the region’s economic progress. But in order to
achieve this objective the countries have to work hard.
He added: “Organisations such as the Mohammed bin
Rashid Establishment for Young Business Leaders and
the Khalifa Fund offer finance for small entrepreneurs.
This helps encourage the small and medium sector.”
His Excellency Mr. Abdul Aziz Al Ghurair
His Excellency Mr. Abdul-Aziz Al Ghurair, CEO of
Mashreq Bank, pointed out that private businesses
need to make up 70 per cent of the gross domestic product (GDP) for Arab economies to stabilise as youth, who
constitute 130 million or one-third of the fast increasing
Arab population, needs new employment avenues.
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Citing the examples of countries such as Algeria and
Tunisia that have dedicated ministries to foster young
entrepreneurs and small businesses, he said appropriate regulations are required for such establishments in
other countries to emulate these examples.
Pointing out that nearly 50 big businesses started from
scratch, he called for youth to be determined with perseverance and take failures as stepping stones to
success.
He added that banks should be encouraged to play an
increased role in guaranteeing loans to finance small
projects for small business ventures.
Panel Discussion I : Promoting Entrepreneurship:
Whose role is it?
Moderator:
Dr. Sulaiman Al Hattlan - CEO of the Arab Strategy
Forum, UAE;
“Arab youth must learn from old expertise and clone
these experiences for their own success,” he said and
remarked that youth must be encouraged to start small
businesses so that they can effectively contribute to a
country’s GDP and reduce their dependence on the
governments.
Speakers:
> H.E. Sheikh Khaled Bin Zayed Al Nahyan Chairman and Founder of the Bin Zayed Group;
> His Excellency Mr. Mohammed AL Madi Vice Chairman and chief executive officer of
Saudi Basic Industries Corporation (SABIC);
> Mr. Mustafa Abdelwadood - Managing Direc-
tor and Chief Executive Officer of Abraaj Investment Management, ,member of the Board of
Directors Young Arab Leaders, UAE; and
In conclusion, Al Ghurair summarised the key ideas of
his address as follows:
> Mr. Abdul Baset Al Janahi - CEO of Moham-
> Outlined four key points that need to be
med Bin Rashid Establishment, UAE.
addressed – education, finance, right rules
and regulations and transfer of best practices
to achieve this objective
> The need to establish giant companies to lead
open markets and contribute to GDP while
giving opportunities for youth
> Highlighted the fact that banks should be
encouraged to play an increased role in guaranteeing loans to finance small projects for
small business ventures
Quoting World Bank report that says Arab world needs
to create six million jobs a year or 60 million jobs in the
next 10 years for the youth, Al Hattlan asked whether it
would be possible for the Arab world to face this
challenge and could private sector be the only solution?
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Outside sub-Saharan Africa, the Arab world has the
highest average unemployment rate, estimated at 13%.
Among the youth and recent graduates, it is more than
double that figure. He asked panel members to highlight
various measures that can help promote entrepreneurship and public/private partnership in the region.
“Later in her life, when a catchphrase was needed for a
marketing campaign, she offered her suggestion that
was accepted. That project was for a multinational corporation, which offered her a job as a copywriter. She was
talented in writing and her capabilities were ideal for a
commercial entity.”
Sheikh Khalid pointed out that Injaaz has been operating for eight years and last year alone helped 175,000
Arab youth. It plans to raise this number to one million
next year. But he also called for more organizations and
effective ways to reach even more number of youth. He
urged the public and private sectors to come together to
help youth and called for more brainstorming by organisations to rapidly plan out ways to train a large number
of youth.
He pointed out that it is imperative to discover talent at
an early stage, at the school-level. “But what we see
here nowadays is children taking up specialization
because of pressure not because of interest. A child
needs to discover itself.”
He said: “A budding entrepreneur needs to accept
failures and the word ‘Failure’ has a different meaning or
connotation in English and Arabic. We need to learn
from failures and decide how or where to proceed.
Everyone is an expert in some field or the other and
every expert needs to pass through difficulties but has to
avoid feeling negative. The only way out is to keep trying
and trying.”
Insisting that the education system in the Arab world can
be improved to offer leadership skills to students, he
called for the need for right education to build a new
system that will adequately address the requirements of
youth.
He said: “I for one cannot criticize the education
programme because I learnt from it and I am an
outcome of that system. But we can certainly discover
talents and I leave the discussion on education to the
experts.”
He added: “Let me give you an example. At one school
every child was asked what they would like to become
when they grow up and everyone answered a pilot,
engineer or doctor. But one child did not offer any
answer at all. When asked, she said she wanted to be a
poet as she is interested only in literature. She grew up
interested in poetry and literature, nurturing that turn of
mind all by herself.
H.E. Sheikh Khaled Bin Zayed Al Nehayan
---------------------------------------------------Mohammed Al Madi remarked that Saudi Basic Industries Corporation (SABIC) is ranked sixth in CSR activities and supporting youth. He called for more entrepreneurship and additional investment. SABIC already
leads in this area. An SR80-million fund is dedicated to
helping youth and conducting a feasibility study on
helping young entrepreneurs set up businesses.
Another big initiative is by the Ministry that offers on-job
training. The Institute of Plastics and Engineering
additionally supports 600 trainees for SMEs, he added.
“The leadership has to play a bigger role in developing
entrepreneurs. The government, business, media and
the human resource capabilities of the budding entrepreneur himself play major roles. A very high qualification/
level of education, motivation and leadership are some
of the main factors to succeed,” he pointed out.
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Mustafa Abdelwadood called for creating a culture of
entrepreneurship and a comprehensive system to
encourage professionals including doctors and
engineers to become entrepreneurs. He added there
cannot be a single solution as it has to employ multidimensional methodologies.
“Of course, we invest in the Arab world as a private
equity firm. But we look at the commercial formula,
check whether it is a viable commercial formula and look
for profitability as we also need to keep in mind our
returns. There are a lot of SMEs that deserve support.
We do have funds for emerging businesses but we look
at it commercially.”
He agreed with Janahi’s statement about passion for the
job and said ‘what is needed in a budding entrepreneur
is passion, work ethics, commitment, perseverance, and
diligence.’
the retail sector that has promising opportunities in a
commercial city like Dubai,” he said.
“But whatever someone is interested in, whether it is
communications or call centre, early starting is necessary. Youth is highly capable and we can make out
whether someone loves a project or not. If you are
committed, nothing can stop you. You need to identify
whether you are in love with that job or simply interested
in having an affair,” he added.
“Youth also should have a strong inclination to attend
training courses and efforts must be taken to understand what prevents youth from entering the SME
sector. At the same time education needs to be
sufficient
enough
to
meet
their
career/employment/business
requirements,”
he
observed.
Mr. Abdul Baset Al Janahi
----------------------------------------------------
Mr. Mustafa Abdelwadood
----------------------------------------------------
Questions raised during the discussion included:
Abdul Baset Al Janahi highlighted the name change to
Sheikh Mohamed bin Rashid Est for Developing SMEs
and said the organisation has incubators, training
programmes, projects from government and banks. “But
all need to work together as people refuse to work with
start-ups at present,” he added.
Pointing out that only AED70 million of the dedicated
AED800 million fund has been utilised by the organisation, he called for the youth to be more courageous in
taking up fresh business ventures. “We have spent so
much on training so many youth.
The young entrepreneurs should also be introduced to
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> How
to promote entrepreneurship
public/private partnership in the region?
and
> How can we cooperate with Government in
mentoring emerging entrepreneurs?
> Would it be possible for the Arab world to face
this challenge and could private sector be the
only solution?
In conclusion, each speaker summarized the key ideas
of the session, including:
> Abdelwadood: Need for a young entrepreneur to have perseverance, diligence and
commitment; Arabs do not celebrate the good
examples
> Al Madi: Financing is a key factor but big
businesses can begin to buy from SMEs to
encourage them
Panel Discussion II
"The ‘IT’ Effect: How Entrepreneurs Defy
the Odds"
Moderator:
Ms. Nima Abu Wardeh
News, UAE
Speakers:
> Mr. Habib Haddad - Co-Founder of Yamli.com,
USA
> Janahi: We need people to take risk in the
> Mr. Ihsan Jawad – Vice Chairman of Zawya
beginners; The young entrepreneurs should
also be introduced to the retail sector that has
promising opportunities in a commercial city
like Dubai
Board of Directors, UAE
> Mr. Rabea Ataya – CEO and Chairman of
Bayt.com; Young Arab Leaders Member, UAE
> Ms. Zeyna Al Jabri – Founder of Buzoor, UAE
> Sheikh Khalid: It is imperative to discover
talent at an early stage, at the school-level; A
child needs to discover itself
> Mr. Abdulrahman I. Tarabzouni - Regional
Manager, Emerging Arabia, Google; Young
Arab Leaders Member; KSA
Key Topics Addressed in the Opening Session:
> Ms. Nima Abu Wardeh - Lack of content? Is
High rates of unemployment, and challenges to
the youth in the Arab worlds
Opportunities provided by some organisations
including government and private sector entities
Restructuring the education system in line with
the employment requirements
Role and extent of government investment in
education
Specialisation of education to reflect the
student’s area of interest
Role of private equity in setting up new ventures
Government programmes in some countries
including Saudi Arabia, Tunisia, Morocco and
Algeria
How determined are the youth to take up entrepreneurship?
- Presenter for BBC World
Internet not always good? Is it too gigantic? Why
the technology sector?
Ihsan Jawad: Post-2000 and after the dotcom bust,
funds were looking for high returns on their investments.
People also needed credibility for their investments.
This could also be because of lack of investment opportunities in sectors such as real estate and stock
markets. That offered an opportunity for venture capitalists and other entrepreneurs to start looking at the
technology sector.
The GCC region lacks compatibility among groups.
Communication is lacking. Only the two or three who
can communicate well, end up getting the funding for
new ventures. On the contrary, in the US there is
connectivity and proximity.
We have financiers in Jordan and Lebanon but not in the
GCC and there should be more forums like this to bring
people together to communicate and understand each
other’s business requirements.
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My advice is “Do not wait for anyone; go ahead and do
it; I learnt the hard way after so many failures.”
Mr. Ihsan Jawad
---------------------------------------------------Rabea Ataya said “If an emerging entrepreneur wants
to succeed, he needs to aim high, remain staunchly
ambitious and inject faith in people around him. He also
needs persistence to follow up on projects, and his
success hinges upon whether he can persevere and
then develop on the concept.”
He added: “Most people in the Arab world do a ‘copy &
paste’ job. Copying is not bad but the way copied material is used is important. Copying may often lead to
failure as the entrepreneur will have NO competitive
advantage. R&D in the Arab world is not well developed.”
Habib Haddad says as an Internet start-up his
company was focused on addressing the challenges
specific to the Arabic web world. “We offer the Smart
Arabic Keyboard and Yamli Arabic Search created
specifically to fill a niche gap as we saw it because we
continuously keep in touch with the users.”
“As an Internet start-up, we feel an entrepreneur has to
build his concept before he hits the ground running, a
key feature we find as the success behind people in
Silicon Valley. It is important for someone with complementary skills and a vision to have a team and probably
put in more than 10 hours a day to succeed,” he said.
“The idea (behind a venture) is not important but execution holds the key. Also, lack of an appropriate ecosystem (support in the society) really hurts the Arab world,”
he added.
“The Internet minimizes costs. One may fail several
times but with technology can offer you tremendous
advantages.”
“If we make a good product that has demand and a good
business model that has its utility, then the reward is
imminent.”
He pointed out that driven by Dubai, the Arab world has
experienced reverse brain drain and witnessed people
seeking opportunities in the region. “Dubai has changed
the paradigm of brain drain. I am a Stanford alumni.
Once it was difficult to get people here to this region.
Then, in one year alone we hired six people, six
western-trained technocrats.”
Mr. Habib Haddad
----------------------------------------------------
Everyday, friends are starting businesses in the
region, and doing it in large numbers. But they are
not translating them into big projects or ventures.
Mr. Rabea Ataya
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Zeyna Al Jabri said her company Buzoor was established to promote the love for Arabic language among
children. “Our market is schools and we would like to do
a lot for the children but even after more than a year, we
are still not sure which technology to deploy – open
source or close.”
“Also technology should be tapped to make everything
attractive to children. We feel the ‘look’ (the visual
appeal) of Arabic can be made more eye-catching to
kids. The Arabic font is standard for all PCs and not
smart enough for children to choose or prefer. This is
part of the reason for the delay. I am sure experts will
help me identify the right technology. We feel technology in the Arab world needs to improve.”
He added: “Have an idea? Just do it. Sometimes an idea
can be identified by sheer coincidence. When the company grows big, then we can think about making money.
It is like making a move on the chessboard. Speed does
not matter but skills definitely do.”
He pointed out that the Arab world needs rationalization
of policies, including the immigration policy if the
example of Silicon Valley is taken into consideration.
“Diversity is the key to success in Silicon Valley. In the
US for example, 25% of the total number of companies
set up in the last 10 years were established by immigrants,” he observed.
“The youth should not give up. If not internet, there may
be other means to execute ideas. If you put any ideas
into practice and do not look only for profit in the initial
stages, then success will be definitely yours,” she
added.
Mr. Abdulrahman I. Tarabzouni
---------------------------------------------------In conclusion, each speaker summarized the key ideas
> Are we investing in risky enough ventures in
Ms. Zeyna Al Jabri
MENA?
----------------------------------------------------
> Is Internet not always good? Is it too gigantic?
Abdulrahman said: “The Arab world is the single largest bloc after China and India. Compared to the
Internet’s magnitude our share is very small. In 2003,
Arabic content amounted to five ‘exabytes’ and in 2010
it still remains the same with less than 1% annual
growth.”
> When can we invest in brains?
“Are we investing in risky enough ventures in MENA?
We need to invest in ventures that are considered 90%
failure and try to make them successful, instead of
investing in ventures that are 10% successful and make
them fully successful. Here, we need an initiative, an
idea that can change the world or prove to be a turning
point. “
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> Why enter the technology sector? How
relevant it is for today’s entrepreneur?
> Ihsan Jawad: Do not wait for anyone; go ahead
and do it; I learnt the hard way after so many
failures.
> Abdulrahman: We need to invest in ventures
that are considered 90% failure and try to make
them successful, instead of investing in
ventures that are 10% successful and make
them fully successful.
> Zeyna Al Jabri: The Arabic font is standard for
all PCs and not smart enough for children to
choose or prefer. This could be made more
appealing to kids.
GALA DINNER – PALACE HOTEL
KEYNOTE SPEECH BY: Dr. Naif Al-Mutawa who is a
Kuwaiti clinical psychologist and creator of THE 99, the
first group of comic superheroes born of an Islamic
archetype. THE 99 has received positive attention from
the world’s media. Recently, Forbes named THE 99 as
one of the top 20 trends sweeping the globe and most
recently, President Barack Obama praised Dr. Naif and
THE 99 as perhaps the most innovative of the thousands of new entrepreneurs viewed by his Presidential
Summit on Entrepreneurship.
The Dinner included a special screening of one of the 99
Episodes .
> Habib Haddad: The idea (behind a venture) is
not important but execution holds the key. Also,
lack of an appropriate ecosystem (support in the
society) really hurts the Arab world
> Rabea Ataya: Dubai has changed the paradigm
of brain drain
Dr. Naif Al-Mutawa
The relevance of technology and investments in
technology
Lack of ecosystem that hurts Arab world, offering
no support for entrepreneurship in the Arab
world.
The role and effectiveness of an idea and how it
can change the world or prove to be a turning
point
Role of R&D and lack of support in Arab world
Need to create more content in Arabic
Strong characteristics that are required for an
emerging entrepreneur to succeed
----------------------------------------------------
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November 6, Day-II
Minimum acceptable housing is another expectation
from the Arab youth. But the quantitative changes
brought about by the boom have not always accompanied social changes. The net result is the rise in unemployment, rise in informal job contracts, and rise in marriageable age, all negative outcomes socially.
DR. TARIK YOUSEF: “GENERATION IN WAITING”
The book titled “Generation in Waiting” was published
after four years of research work and includes case
studies on the key concerns facing the Arab world. It
highlights the number of youth in the Arab world suffering and waiting – waiting because their future is on hold.
They are waiting for jobs, housing, and marriage. There
are 100 million youth waiting for opportunities in the
Arab world. In other words, 100 million youth are looking
for new opportunities.
To lift the Arab youth out of passive exclusion, a
dynamic policy change and a proactive education
system are needed immediately. Also needed is a longterm vision in dealing with current issues.
We need to link policies with outcomes, while policies
need to be more flexible and open to amendments.
Is this a temporary phase? These opportunities v/s challenges are not related to time alone. Businessmen, for
example, do not have time to tackle these issues.
Young entrepreneurs need not wait for governments to
come to their rescue. Faith in taking their own role
becomes the key to their success.
These challenges place extraordinary pressures on the
local economy. Except for the beginning of the previous
century, not many path-breaking changes have been
seen in the Arab world.
The youth in the Arab world feel excluded. The exclusion of youth happens as they wait during the transitional period – transiting from studying to employment
and to setting up a family.
Dr. Tarik Yousef
Youth face four major challenges – education, employment, marriage, residence (roof over the head). All interrelated.
In conclusion, Tarik Yousef summarised the key ideas
of the session, as follows:
Our countries are building universities rather than
employment, marriage, residence (roof over
the head).
reengineering the education system
> Youth face four major challenges – education,
> There are 100 million youth waiting for oppor-
Dr. Tarik Yousef, Dean of the Dubai School of
tunities in the Arab world; waiting with their
future on hold
Government, UAE
> Entrepreneurs need not wait for governments.
The education system needs reengineering, not building
of more universities. Rules and regulations continue to
stifle entrepreneurs in most countries. The fear of
finance is another reason that keeps the youth dormant.
Unless these barriers are treated smartly, growth for the
youth will remain stagnant.
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Faith in taking their own role becomes key to
their success
> For youth motivation is the beginning
> Revision of policies needed but we need to
link policies with outcomes
Panel Discussion III
‘PIONEERING OR MOVING BOUNDARIES?’
As risk takers who expand the scope of opportunity and
overcome limitations, entrepreneurs take pride in
“breaking the rules” of how things are usually done.
One such example is Muhammad Yunus who is the
founder and Managing Director of Grameen Bank.
During a research project in 1976 he realized that very
small loans could make a disproportionate difference to
those living in poverty, especially when targeted at
women. Whilst the ideas behind micro-credit resided
elsewhere, it was Yunus who turned the opportunity into
action by creating an institution to lend to those who had
nothing. Yunus and his colleagues encountered everything from radicals to the conservative clergy who told
women that they would be denied a Muslim burial if they
borrowed money from the Grameen Bank. Unperturbed, the bank and its founder continued and were
rewarded with the Nobel Peace Prize in 1996, "for their
efforts to create economic and social development from
below.
---------------------------------------------------Nadine: Early stages of entrepreneurship at 13% in the
Arab world stand better against 8% in the US and 6% in
the UK but below 19% in China. Development boosts
entrepreneurship, but how far can the boundaries be
pushed?
----------------------------------------------------
." As of 2009, the Bank had issued US$ 9.4 billion to 8.3
million borrowers. It has 2,564 branches, works in
81,362 villages and has a staff of 22,807. If Yunus had
simply followed the rules there would be possibly be no
Grameen Bank today. But how far is too far when it
comes to pushing the boundaries of acceptable
conduct? Can some outdated rules and traditions be
justifiably questioned in the interest of promoting Entrepreneurship and development?
Moderated by Ms. Nadine Hani - Presenter for Al
Arabiya Business News,
Panellists:
Salam Saadeh: Development rates may prove a higher
percentage of entrepreneurship but the quality of the
projects in the Arab world are driven by need and not by
innovation. Huge gap in innovation but it has to go hand
in hand with plans for the future. With its abundant capital, the region can do a lot more to support the SME
sector.
“A dedicated system has to be in place with appropriate
policies and procedures. Venture capital has to support
new companies, not those already in operation. But
offering financing to entrepreneurs alone will not help
and what is needed is an all-round support system,” she
said.
“The region is in its early phase now but clusters are
needed to support businesses and augment or develop
the industrial sectors. We need to remember only five
out of 10 projects are known to result in fruition,” she
added.
> Mr. Ahmed Younis - Director of Strategic
Partnerships and Communications for Silatech,
Qatar,
> Ms. Salam Saadeh - Founder and CEO of
Activem; Young Arab Leaders member; UAE
> Ms. Rama Chakaki - Partner at Baraka
Ventures, UAE,
Ms. Salam Saadeh
> Mr. Mohammed Johmani - Founder and CEO
of O2 Network; Young Arab Leaders member,
UAE
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Rama Chakaki: As a social entrepreneurship and web
technology business incubator, and an advisory
services company, Baraka believes in sustainable projects that are community-responsible. “My advice to
young entrepreneurs is “no does not mean cannot be
found”. But competition instils a spirit of cooperation for
the overall advantage.”
“Our Tawasul initiative aims to engage young people
and students in grass root conservation and restoration
ecology. We are still operating within the region. In two
years, we have trained 500 students and they have
learnt about diving and underwater life. Next year we
aim to train 700 students.”
“Technology-savvy kids need to also act like envoys for
their businesses. We corresponded through the Net and
received a good number of responses from youth. We
recommend working online. We were also able to
contact universities in the UK and the US.”
She cited the example of Khalil from Gaza, who, though
handicapped, has taken a licence in diving. “With the
help of His Highness Sheikh Hamdan bin Mohammed,
we are making a documentary on this young boy, which
has proved how Arab youth can be successful even
without any help.”
Ahmed Younis said: “Idea of change in any community,
whether social or economic, is truly welcome if it brings
a better future. Change is a must and everyone has to
accept change. If we use various forces as individuals,
we can push governments to change policies.”
“We accept ideas and we want young entrepreneurs to
help us help them. But the changes have to be interdisciplinary and with intense collaboration we can
change religion, politics and the community in general.”
A recent survey by Silatech found that given the chance,
not less than 26 per cent of young Arabs aged between
15 and 29 would like to leave their country for good.
Almost 50% of the youth in the survey said they have a
plan to start a project in the next 12 months. The comparable rate in the West is only 4%.
“Development of skills and appropriate education are
imperative for creating working opportunities for the
youth. We are currently working towards this objective.”
Also in the survey, we found 54% of the youth prefer to
get government jobs while 75% of them are looking for
companies to help find a job.
“Idea of change in any community, whether social
“Our Bidayat initiative is meant to facilitate a community
of individuals and organizations launching projects that
benefit the community in the Middle East.”
or economic, is truly welcome if it brings a better
future" Ahmed Younis, Director of Strategic Part-
“Engaging others for the sake of the community is the
key and the Net provides the best route.”
nerships and Communications for Silatech, Qatar
“Changing policies need to be directly related to
providing the youth with rightful opportunities.
Solution or problem depends on the state of mind
and how anyone looks at it. But it is important to be
aware the problem/solution.”
Ms. Rama Chakaki
“In a world that operates on globalisation and integration, the Arab youth feel increasingly sidelined.”
----------------------------------------------------
- 15 -
“How do we make government organisations implement
sound and well-organised policies for youth?
We can provide them the ability to help themselves by
removing the barriers and offering training. More than
certificates, it is the skillsets that are important and there
has to be a link between training and employment. The
youth can expect to have jobs once they are trained.
Youth also have to think how they can put their business
plan into action and change their matrix.”
“Though organizations and the government leaders try
to help, the policies do not help as they are yet to take
market demand into consideration. Probably professionals including teachers, SMEs and entrepreneurs must
come together to adopt a comprehensive approach to
tackle this challenge,” he added.
We have also produced several artistes who have been
successful as musicians and actors. But we need to
create, encourage, develop and promote more people
like Mohamed Hareb, creator of Freej because his
concept is an enormous success because of its novelty
element.”
“We accept ideas and we want young entrepreneurs to
help us help them. But the changes have to be interdisciplinary and with intense collaboration we can
change religion, politics and the community in general.”
Mr. Mohammed Johmani
Mr. Ahmed Younis
---------------------------------------------------Mohammed Johmani said: “In the recent past, not
many telling examples to look up to, except one or two.
The best example that stands out is Fadi GandhourGhandour of Aramex.
“But we in the Arab world have still not produced a
Warren Buffett, thought there are strong contenders in
the making.”
“At the same time, there is no need to look for examples
in the West even though success stories like Google
and Facebook are not mere accidents. One has to
remember that these two successful projects did not
originate in Silicon Valley. However, they created a
revolutionary concept and nurtured them till they
became full-fledged and successful corporations. We
need stories like these in the Arab world. There are also
instances when companies that are hugely successful
now floundered in the initial stages as start-ups. The
best example is Google.”
---------------------------------------------------Nadine: Why we in the Arab world are not used to
taking risks in business? Is this a social probemproblem
and how do we motivate young entrepreneurs? Anyone
can target the Arab market and provide value-added
products. How many of the best the government can
support? Eventually Google offers diverse language
tools and Facebook and Twitter too will be targeted in
the Arab world. It is a competitive landscape that needs
to change. But are they making money?
“In a world that operates on globalisation and integration, the Arab youth feel increasingly sidelined.”
“How do we make government organisations implement
sound and well-organised policies for youth?
We can provide them the ability to help themselves by
removing the barriers and offering training. More than
certificates, it is the skillsets that are important and there
has to be a link between training and employment. The
youth can expect to have jobs once they are trained.
He added that it is imperative not to differentiate ‘starters’ from full entrepreneurs.
- 16 -
Youth also have to think how they can put their business
plan into action and change their matrix.”
“Though organizations and the government leaders try
to help, the policies do not help as they are yet to take
market demand into consideration. Probably professionals including teachers, SMEs and entrepreneurs must
come together to adopt a comprehensive approach to
tackle this challenge,” he added.
----------------------------------------------------
Ms. Nadine Hani
---------------------------------------------------Salam Saadeh said “There is no dearth of ideas but not
many youngsters have come forward to make it a reality. Young entrepreneurs should not wait for anyone to
help them. The “idea first - then money – and then only
I will quit the government job” attitude will have to go.
‘Social security’ need not be in the government job
alone. If someone is really excited about an idea that
itself is a success. That means an entrepreneur has
begun to believe in the concept and has the determination to find the right people to support his/her idea, but
support not from the point of view of a CSR initiative.”
“We, as a community, should also be more involved in
encouraging youth to go for new concepts. Families
need to motivate youth and support them, at least morally if not financially, when they take up new business
ventures,” she said and added that a concept also has
to keep evolving to remain successful and failures
initially should be used as stepping stones to bounce
back and grow.
Rama said: “Education should develop the capability to
bounce back from failures. Youth should be encouraged
and empowered by their education to take care of projects in the future as an entrepreneur.”
---------------------------------------------------Ahmed Younis said: “Our objective as a community is
still not clear in this regard. When the SMEs constitute a
major portion of the economy, we need to come
together not only as entrepreneurs but everyone and
find a common way to achieve the objective. This need
not be in the business sector alone. All are integral to
the society and no one can be regarded as separate
from the community.”
“Our organisation works in countries such as Yemen,
Iraq, Morocco, and Syria. More than 70,000 youth have
benefited from microfinance. Organisations such as
Silatech and the Dubai School of Government are doing
a commendable job.”
---------------------------------------------------Mohammed Johmani pointed out R&D plays a key role
in entrepreneurship as it leads to innovation and even
older projects need to go through the process to ensure
continuous success.
“Investors can be convinced if there is value addition in
a new start-up but of course that depends on the definition of their idea of ‘value-addition’. An investor looks for
returns and that is his/her right.
Bill Gates, the richest man (or second richest) in the US
is also the richest man in the world because he believed
in his ideas that continue to influence the world. But the
key factor is an entrepreneur has to stand up for his/her
own share of responsibility.”
----------------------------------------------------
Ms. Salam Saadeh
- 17 -
Salam Saadeh: “Nothing is holding back anyone from
going global. Ideas are easier than ever before and
going global is even easier. Twenty years ago, the
scenario was different. Entrepreneurs who could not get
finance went to the West. But it is not necessary as one
can be innovative in his/her own traditional industries
and get the required funds.”
of the session, as follows:
---------------------------------------------------Nadine: Is lack of networking among women an impediment to businesswomen? Can social entrepreneurship
be augmented by better communication mechanism
through government programmes?
---------------------------------------------------Salam Saadeh said the 21st century women can be
empowered through network, especially through media.
----------------------------------------------------
> Mohammed Jomani: R&D plays a key role in
entrepreneurship as it leads to innovation and
even older projects need to go through the
process to ensure continuous success
> Ms. Salam Saadeh: Entrepreneurs who could
not get finance went to the West. But it is not
necessary now as any one can be innovative
in his/her own traditional industries and get
the required funds within the region
> Ms. Rama Chakaki: Education should develop
the capability to bounce back from failures
> Ahmed Younis: Development of skills and
appropriate education are imperative for creating working opportunities for the youth.
Ahmed Younis said only those who have a new idea,
challenged the existing conditions and remain consistently determined to succeed can achieve their objectives. “If someone works towards achieving the objectives, he/she will have success. We support these
individuals.”
----------------------------------------------------
> Huge gap in innovation needs to be fixed
Nadine: Do universities give the right tools to students
to develop a business?
----------------------------------------------------
> Competition instils a spirit of cooperation for
the overall advantage
Ahmed Younis: “We are trying to do this. The
examples are the Qatar Science and Technology Park
and Injaaz in the UAE. One key factor to remember, if
someone wants to be an entrepreneur he/she has to
make it happen.”
> Availability of funds for emerging entrepreneurs
Questions raised during the discussion included:
> Universities and the right tools to develop
entrepreneurs
> Any concept has to keep evolving to remain
successful and initial failures should be used
as stepping stones to bounce back
---------------------------------------------------> Why we in the Arab world are not used to
taking risks in business? Is this a social
probem and how do we motivate young entrepreneurs?
> Do universities give the right tools to students
to develop a business?
> Is lack of networking among women an impediment to businesswomen?
> How do we make government organisations
implement sound and well-organised policies
for youth?
----------------------------------------------------
- 18 -
CELEBRATING ZAMALA 2010
Those who shared their distinct experiences with the US
companies include Alia Gharaibeh, business development consultant from Jordan, Khaled Amr of Corplease
from Egypt, Karam Nagsli of Global Transport and
Logistics in Syria, Rasha Yousif of Arab Insurance
Group in Bahrain, Manal Al Matrook of eGovernment
Authority in Bahrain, and Rami Halawi of Galaxposure in
Lebanon and the UAE.
The Zamala programme brings bright young entrepreneurs and executives from the Middle East to the US for
three weeks to learn about American business society
and culture and also features a similar exchange
programme for American entrepreneurs and executives
to visit the Middle East.
ADRRESS:
‘Inspiring Entrepreneurship in the Middle East’
Fadi Ghandour, Founder and CEO of Aramex
“An entrepreneur has to think of problems as
solutions.”
Fadi Ghandour
Founder and CEO of Aramex
Fadi Ghandour delivered his address in English,
thereby making a statement on the region’s ability to
communicate in the English language and making the
message clearer to everyone in a globalised world.
He pointed out that the Arab world has fallen into a cycle
of negativity and deficiencies. “Of course there are challenges including deficiency in education, knowledge and
skill levels. But an entrepreneur has to think of problems
as solutions. The Arab world has so many successful
entrepreneurs. Syria, Jordan and Egypt are some of the
best examples. It is inspiring to sense the level of entrepreneurship in these countries.”
The challenge, probably the biggest, is to have mentors.
A young entrepreneur has to think positively on how and
where his idea can be taken forward. The Arab world is
in need of a paradigm shift in its perceptions. It has to
get into an action mode and stop blaming governments
for not doing enough. Governments cannot always be
solution providers. The biggest employer is the SMEs.
Experts at this forum quoted statistics from various
sources about the 100 million jobs that need to be
created in the Arab world in the next few years. But this
needs several measures to be taken on an urgent basis.
The education sector needs to be fixed. The Arab world
also needs to organise itself and initiate a call of action
as opposed to simply being arm-chair revolutionaries.
“Big is good but small is even more beautiful,” he said
and added “The Arab world has to move away from
headline-grabbing mammoth projects and from hard
assets to creating soft assets. Building schools alone
cannot bring skills to students. The corporate sector
needs to open up more and the public sector needs to
initiate positive changes. ‘Proper governance’ is what is
required. The future can be built only in partnership with
the community.”
- 19 -
“In my own personal paradigm shift I have moved away
from making complaints to engaging in projects that
help bring in private sector to create and develop entrepreneurs. We established an organization that offers
over 500 scholarships in a community that is beginning
to change only now after so many years. It was not easy
getting them to respond but what is needed is engaging
the community and touching peoples’ lives. The organisation has helped develop several successful microentrepreneurs. The initial money that was offered on
loans has been paid back 99.5%. And more than 85% of
these small entrepreneurs have now become owners of
the projects and they come back for more funds. Microfinance does create an entrepreneur and it can cut
across religion or culture. But an entrepreneur has to be
bold enough to face challenges and not be afraid of
failures.
He emphasised that the sale of Maktoob.com to Yahoo!
should be celebrated as this is the first time a knowledge
industry leader in the Arab world has been recognised
for its value and acquired by a multinational corporation.
“This will bring global knowledge leaders to the region,
enabling access to several more emerging Arab startups,” he added.
He applauded Sheikh Sultan Al Qassemi, a “social
entrepreneur who works consistently to awaken our
conscience towards successfully challenging social
issues.”
In conclusion, Fadi Ghandour summarised the key
ideas of the session, including:
> The Yahoo!-Maktob deal will bring global
knowledge leaders to the region, enabling
access to several more emerging Arab startups
> Microfinance does create an entrepreneur
and it can cut across religion or culture. But an
entrepreneur has to be bold enough to face
challenges and not be afraid of failures
Mr. Fadi Ghandour
> The Arab world has to move away from
headline-grabbing mammoth projects and
hard assets to creating soft assets
“I learnt from the food business which did not make
money. Success did not come so easily. I tried and
failed but I learnt in the process,” he added.
“Habib Haddad of Yamli.com had to obtain funds in
Boston because he understood the need to develop
entrepreneurship somehow. We have to help people
understand the need for being successful entrepreneurs,” he said.
Fadi Ghandour provided examples of 20 communityoriented programmes that have made young entrepreneurs successful by sheer persistence and diligence.
He referred to a school in Cairo that offers skills to
students so that even if students cannot continue their
education for some reason, they can still be capable of
managing their lives independently with the skills they
acquired. He also mentioned projects that are successfully and innovatively managed by young entrepreneurs
in Palestine, contributing to the general well-being of the
community.
> The Arab world has to lift itself out of the cycle
of negativity and deficiencies in which it keeps
falling into
---------------------------------------------------Sheikh Sultan Al Qassemi proposed the vote thanks
and explained how the summit helped highlight the role
of IT and the opportunities from the Internet. “Challenges are huge yet opportunities are even greater and
SMEs need to be nurtured,” he said.
Pointing out the US$2 billion Arab Fund for SMEs that
has been set up to help develop the sector, Sheikh
Sultan expressed the gratitude of the community to His
Highness Sheikh Mohammed bin Rashid for his
profound belief in the capabilities of youth in the Arab
world.
- 20 -
Visit to Burj Khalifa
Nearly 150 delegates representing 15 Arab nationalities
were taken on a ‘visit to the Burj Khalifa — the tallest
building in the world and the “triumph of Dubai's vision”,
to mark the successful conclusion to the forum. Lasting
for more than an hour, the visit provided unparalleled
views of the emirate’s skyline, the Arabian Gulf waters
and panoramic landscapes that stretched even beyond
the horizon. The architectural and engineering marvel
was an eye-opener for many guests and offered them
spectacular vistas never before experienced. The visit
was also a fitting finale to the successful event and
offered a glimpse of the traditional hospitality that
remains the hallmark of Dubai.
- 21 -

Young Arab Leaders - Duke University`s Fuqua School of Business

Transcription

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