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SETTING STANDARDS IN FINANCIAL AUDITING & ACCOUNTANCY MARCH 2013
PUBLICATION LICENSED BY IMPZ
TOWARDS A COMMON VISIONKPMG’s new report argues that corporate reporting needs to
a rapidly changing world’
RIDING THE REBOUND ‘Rapid-Growth Markets’ pivotal to sustainable global economic recovery, Ernst & Young says
TREASURE IN TREASURY
UA
E A
ED
15
| Bah
rain
BH
D 1
.5 |
Qat
ar Q
R 1
5 | O
man
OR
1.5
| S
audi
Ara
bia
SR
15
| Kuw
ait K
D 1
.2
POLICING THE BOOKS
EXCLUSIVE!
How Colonel Saif Mohammed Saif Bin Abed Al Muhairi combines his accounting work with law enforcement duties
We are the new AIG
Bring on tomorrow
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. Products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Not all products and services are available in every jurisdiction, and insurance coverage is governed by actual policy language. Certain products and services may be provided by independent third parties. Insurance products may be distributed through affiliated or unaffiliated entities. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.
www.aig.com
YOU’RE THROUGH with your university degree. Mission accomplished. You have completed all the necessary prerequisites and practical experience towards a
But wait a minute. You can’t afford to tell yourself that you know everything
to date. This is where Continuous Professional Development -‐ simply known
clients and the community.
enhance their skills in order to stay relevant.
her instructors have learnt to work around her schedule in order to help her through her studies.
The cop accountant gets our cover treatment for a good reason. As the Chairman of UAE’s Accountants
SETTING STANDARDS IN FINANCIAL AUDITING & ACCOUNTANCY MARCH 2013
PUBLICATION LICENSED BY IMPZ
TOWARDS A COMMON VISIONKPMG’s new report argues that corporate reporting needs to
a rapidly changing world’
RIDING THE REBOUND ‘Rapid-Growth Markets’ pivotal to sustainable global economic recovery, Ernst & Young says
TREASURE IN TREASURY
UA
E A
ED
15
| Bah
rain
BH
D 1
.5 |
Qat
ar Q
R 1
5 | O
man
OR
1.5
| S
audi
Ara
bia
SR
15
| Kuw
ait K
D 1
.2
POLICING THE BOOKS
EXCLUSIVE!
How Colonel Saif Mohammed Saif Bin Abed Al Muhairi combines his accounting work with law enforcement duties www.accountancyme.com
EDITOR'S AUDIT
3
CONTENTSMARCH 2013
18 MOVERS & SHAKERS: Back from the brink – Managing Director and
CFO of Gulf International Bank Stephen Williams, on how he has transformed the bank from a struggling
and investment giant that it is today.
24 WOMEN IN FINANCE: Diversity advantage – In our second installment,
industry address the issue of gender-‐representation on corporate boards.
38COVER STORY: Policing the books – Colonel Saif Mohammed
Saif Bin Abed Al Muhairi on how he combines his accounting work with law enforcement duties.
38
Main
Fea
ture
s
184 March 2013
CONTENTSMARCH 2013
18 MOVERS & SHAKERS: Back from the brink – Managing Director and
CFO of Gulf International Bank Stephen Williams, on how he has transformed the bank from a struggling
and investment giant that it is today.
24 WOMEN IN FINANCE: Diversity advantage – In our second installment,
industry address the issue of gender-‐representation on corporate boards.
38COVER STORY: Policing the books – Colonel Saif Mohammed
Saif Bin Abed Al Muhairi on how he combines his accounting work with law enforcement duties.
38
Main
Fea
ture
s
184 March 2013
Current AffairsPr
ofes
sion
Wat
ch
Spec
ial R
epor
ts
5
12 FOCUS ON: Change of guard – ICAI Abu Dhabi Chapter
elects new managing committee to drive the
30 BUSINESS INSIGHTS:Growing beyond – Ernst & Young’s Market
Leader for Mena Bassam Hage, on how the Rapid-‐Growth Markets remain pivotal to the hopes for
44 DIFFERENT DIMENSIONS: What drives Durdana? – The Course
Director of DSR Professional Training JLT tells Accountant Middle East how she discovered her
54 CAREER DEVELOPMENT: Against all odds – We highlight inspiring
stories of Phoenix students who have demonstrated enormous self discipline, hard work and resilience,
74INDUSTRY APPOINTMENTS: Revolving door – Find out the latest
movement of professionals between roles,
68 CORPORATE TREASURY: Treasure in treasury – Read how the Association of
70 CREDIT MANAGEMENT: Overcoming debt deadlock
Consultant of Decol Debt Collections emphasises the importance of
3 EDITOR'S AUDIT
6 NEWS & VIEWS: Call for changes to corporate reporting – KPMG has
published a new report which brings together a range of leaders in
10 BUSINESS PICTORIAL: Hats off
50 ECONOMIC INSIGHT: Labour pains or labour gains? – Middle
East population boom raises risk of more
52 MERGERS & ACQUISITIONS: UAE, Qatar lead in M&A deals – Ernst &
Young’s update report shows telecommunications
72 TAX WATCH: Employment taxes soar
reveals how governments have increased job levies,
From the Experts
Interactions
54
44
NEW TITANIUM CREDIT CARD LAUNCHED
STANCHART ‘BEST ISLAMIC BANK’
UAE gets top audit marks
STANDARD CHARTERED Bank has announced the launch of a new Titanium MasterCard Credit Card for customers in the UAE.
The card comes with first-in-the-market cashback o!ers on the everyday spend of the customers. Customers can enjoy up to 10% cash back on all supermarket purchases, 10% cash back on utility bills as well as school fee payments.
Combined with these market-leading cashback o!ers, customers will also benefit from a 50% discount on all their movie ticket purchases at VOX Cinemas in the UAE as well as discounts
at hundreds of dining and entertainment establishments across the country.
As an added benefit, Chip and PIN technology is introduced for increased payment security. Globally, more than 20 million terminals are Chip and PIN compliant.
STANDARD CHARTERED Bank has been awarded ‘Best International Islamic Bank’ in the Euromoney Islamic Finance Awards 2013, one of the highest accolades in the publication’s annual event that recognises excellence across the Islamic Finance industry globally. Standard Chartered Saadiq, the Bank’s
global Islamic banking arm, was also awarded ‘Best Structured Products House’ and ‘Deal of the Year’ for arranging a $1.85
Commenting on the awards, Afaq Khan, CEO of Standard Chartered Saadiq
been recognised as a leading player in the Islamic Finance industry. This success is shared with our partners and clients whom we have worked with over the
our Shariah Board for their thoughtful guidance and support.”
THE UAE Internal Audit Association (UAE-IAA), the local body a"liated to the Institute of Internal Auditors (IIA-Global), has announced the country has topped all Middle Eastern states in terms of the number of internal auditors who obtained CRMA (Certification in Risk Management Assurance), a prestigious international certificate which allows audit practitioners to provide advice and assurance to audit committees and executive management. UAE Internal Audit Association also announced that
the deadline for receiving applications for the CRMA was extended until the end of
March due to the high demand.Commenting on this milestone,
Abdulqader Obaid Ali (pictured), President of the UAE Internal Audit Association (UAE-IAA) said: "The ranking of the country as one of the top states in the CRMA is a benchmark, which will motivate us to work harder and take this profession to higher levels.”
20MWORLD BANKING TERMINALS THAT ARE CHIP AND PIN COMPLIANT
STATS FACT:
NEWS & VIEWS
6 March 2013
‘DOING BUSINESS IN DUBAI’
MASTERCARD EXPANDS PAYMENT MODEL
EBA changes name
“THE POPULARITY of Dubai as the region’s best and the world’s emerging global business hub has empowered the Emirate to create unique economic opportunities and value propositions that attract the best of global entrepreneurial and business leadership,” His Highness Sheikh Ahmed Bin Saeed Al Maktoum, has said. Sheikh Ahmed added that Dubai
government’s strong commitment to free market economy, fair competition and economic diversification are unparalleled in the region and compare with the best globally’. His Highness was speaking at an event
where he launched a book titled ‘Doing Business in Dubai’, in the presence of Raju Menon (pictured left), Chairman and Managing Partner, Morison Menon Group and Sudhir Kumar (right), Partner and Head-‐Corporate Communications, Morison Menon Group. The book, compiled and published
by Morison Menon Group, provides a glimpse of the vision which led to the transformation of Dubai and continues to shape its future, as well as an insight into the details of doing business and living in this dynamic city. “This is the fifth edition of the ‘Doing
Business in Dubai’ book and it will serve as an ideal tool for global investors for setting up businesses in Dubai and to attract Foreign Direct Investments (FDI) to Dubai,” said Raju Menon.
51COUNTRIES WHERE MASTERCARD’S PAYPASS CONTACTLESS PAYMENT NETWORK IS
MASTERCARD WORLDWIDE has announced record growth of its contactless payments technology, MasterCard PayPass, across the Asia/Pacific, Middle East and Africa (APMEA) region, citing a 28% (YoY) increase in merchant.
MasterCard’s PayPass contactless payment network now boasts nearly 700,000 merchant locations in 51 countries as of Q4 2012.
Growth data reflects a strong demand from consumers for fast and convenient alternative to cash for everyday purchases in region, including those in emerging markets like Vietnam, which this
month launched contactless payments for the first time.
South Africa, Australia, Taiwan, South Korea, Singapore, New Zealand, and United Arab Emirates were credited as key contributors to growth in the APMEA region, and hotbeds for innovation in contactless payments.
In East Africa MasterCard has partnered with Kenya’s Equity Bank to roll-out five million EMV and PayPass-enabled debit and prepaid cards over the next 18 months.
Thereafter the cards will be rolled out in Uganda, Tanzania, Rwanda and South Sudan.
STATS FACT:
EMIRATES BANK Association has announced the change of its name to become ‘UAE Banks Federation’.
The association said the new name, reflected on its logo (pictured) mirrors the union of UAE banks and represents the nature of their activities and the best image of the banking sector which plays a vital and significant role in the national economy.
HE Abdul Aziz Abdulla Al Ghurair, Chairman of UAE Banks Federation said: “Change of the
name to UAE Banks Federation came in line with the High Management strategic plan adopted at the beginning of last year, which aimed to promote and develop the federation’s work in all aspects in response to the rapid developments facing the banking sector locally and globally.”
UAE Banks Federation main objectives stress on the advanced cooperation and harmony between the banks, representing their interests, organising their duties and protecting them derived from the collaboration and coordination with the Central Bank and other Government Entities.
7
NEWS & VIEWS
NEW TITANIUM CREDIT CARD LAUNCHED
STANCHART ‘BEST ISLAMIC BANK’
UAE gets top audit marks
STANDARD CHARTERED Bank has announced the launch of a new Titanium MasterCard Credit Card for customers in the UAE.
The card comes with first-in-the-market cashback o!ers on the everyday spend of the customers. Customers can enjoy up to 10% cash back on all supermarket purchases, 10% cash back on utility bills as well as school fee payments.
Combined with these market-leading cashback o!ers, customers will also benefit from a 50% discount on all their movie ticket purchases at VOX Cinemas in the UAE as well as discounts
at hundreds of dining and entertainment establishments across the country.
As an added benefit, Chip and PIN technology is introduced for increased payment security. Globally, more than 20 million terminals are Chip and PIN compliant.
STANDARD CHARTERED Bank has been awarded ‘Best International Islamic Bank’ in the Euromoney Islamic Finance Awards 2013, one of the highest accolades in the publication’s annual event that recognises excellence across the Islamic Finance industry globally. Standard Chartered Saadiq, the Bank’s
global Islamic banking arm, was also awarded ‘Best Structured Products House’ and ‘Deal of the Year’ for arranging a $1.85
Commenting on the awards, Afaq Khan, CEO of Standard Chartered Saadiq
been recognised as a leading player in the Islamic Finance industry. This success is shared with our partners and clients whom we have worked with over the
our Shariah Board for their thoughtful guidance and support.”
THE UAE Internal Audit Association (UAE-IAA), the local body a"liated to the Institute of Internal Auditors (IIA-Global), has announced the country has topped all Middle Eastern states in terms of the number of internal auditors who obtained CRMA (Certification in Risk Management Assurance), a prestigious international certificate which allows audit practitioners to provide advice and assurance to audit committees and executive management. UAE Internal Audit Association also announced that
the deadline for receiving applications for the CRMA was extended until the end of
March due to the high demand.Commenting on this milestone,
Abdulqader Obaid Ali (pictured), President of the UAE Internal Audit Association (UAE-IAA) said: "The ranking of the country as one of the top states in the CRMA is a benchmark, which will motivate us to work harder and take this profession to higher levels.”
20MWORLD BANKING TERMINALS THAT ARE CHIP AND PIN COMPLIANT
STATS FACT:
NEWS & VIEWS
6 March 2013
‘DOING BUSINESS IN DUBAI’
MASTERCARD EXPANDS PAYMENT MODEL
EBA changes name
“THE POPULARITY of Dubai as the region’s best and the world’s emerging global business hub has empowered the Emirate to create unique economic opportunities and value propositions that attract the best of global entrepreneurial and business leadership,” His Highness Sheikh Ahmed Bin Saeed Al Maktoum, has said. Sheikh Ahmed added that Dubai
government’s strong commitment to free market economy, fair competition and economic diversification are unparalleled in the region and compare with the best globally’. His Highness was speaking at an event
where he launched a book titled ‘Doing Business in Dubai’, in the presence of Raju Menon (pictured left), Chairman and Managing Partner, Morison Menon Group and Sudhir Kumar (right), Partner and Head-‐Corporate Communications, Morison Menon Group. The book, compiled and published
by Morison Menon Group, provides a glimpse of the vision which led to the transformation of Dubai and continues to shape its future, as well as an insight into the details of doing business and living in this dynamic city. “This is the fifth edition of the ‘Doing
Business in Dubai’ book and it will serve as an ideal tool for global investors for setting up businesses in Dubai and to attract Foreign Direct Investments (FDI) to Dubai,” said Raju Menon.
51COUNTRIES WHERE MASTERCARD’S PAYPASS CONTACTLESS PAYMENT NETWORK IS
MASTERCARD WORLDWIDE has announced record growth of its contactless payments technology, MasterCard PayPass, across the Asia/Pacific, Middle East and Africa (APMEA) region, citing a 28% (YoY) increase in merchant.
MasterCard’s PayPass contactless payment network now boasts nearly 700,000 merchant locations in 51 countries as of Q4 2012.
Growth data reflects a strong demand from consumers for fast and convenient alternative to cash for everyday purchases in region, including those in emerging markets like Vietnam, which this
month launched contactless payments for the first time.
South Africa, Australia, Taiwan, South Korea, Singapore, New Zealand, and United Arab Emirates were credited as key contributors to growth in the APMEA region, and hotbeds for innovation in contactless payments.
In East Africa MasterCard has partnered with Kenya’s Equity Bank to roll-out five million EMV and PayPass-enabled debit and prepaid cards over the next 18 months.
Thereafter the cards will be rolled out in Uganda, Tanzania, Rwanda and South Sudan.
STATS FACT:
EMIRATES BANK Association has announced the change of its name to become ‘UAE Banks Federation’.
The association said the new name, reflected on its logo (pictured) mirrors the union of UAE banks and represents the nature of their activities and the best image of the banking sector which plays a vital and significant role in the national economy.
HE Abdul Aziz Abdulla Al Ghurair, Chairman of UAE Banks Federation said: “Change of the
name to UAE Banks Federation came in line with the High Management strategic plan adopted at the beginning of last year, which aimed to promote and develop the federation’s work in all aspects in response to the rapid developments facing the banking sector locally and globally.”
UAE Banks Federation main objectives stress on the advanced cooperation and harmony between the banks, representing their interests, organising their duties and protecting them derived from the collaboration and coordination with the Central Bank and other Government Entities.
7
NEWS & VIEWS
MBS SEES RISE IN FEMALE STUDENTS
BARCLAYS LAUNCHES NEW AFRICA CARD
KPMG named best Islamic finance adviser
MANCHESTER BUSINESS School (MBS) Middle East Executive Centre at Dubai Knowledge Village has enrolled 101 new part time MBA students (27 nationalities based in 15 countries) in the January 2013 intake, with a rise in the proportion of female MBA students – 18 per cent for the January intake versus an average of 12 per cent in previous intakes.
The Middle East student base has now grown to more than 1,400 part time MBA students and is the largest student cohort in the international network of Manchester Business School.
“We are very impressed with the quality of our students, with many already holding a Masters degree, and also encouraged by the increasing number of female MBA students in the Middle East,” Associate MBA Director (Manchester Business School Worldwide), Xavier Duran, said.
BARCLAYS AFRICA has partnered with ICLP in Dubai, the loyalty specialist, to develop and launch Worldmiles, a rewards programme for its platinum credit card holders. The programme
airline miles programme in Africa. Worldmiles is available to all Barclays Platinum
cardholders in Botswana, Kenya and Egypt, with plans to extend to Mauritius in the near future, and caters to the increasing demand for travel
As a member of the Worldmiles programme, cardholders can earn Worldmiles for all their purchases locally, internationally and online. Worldmiles earned can be redeemed for travel anywhere in the world, on any airline throughout the year.Dion Maritz, General Manager, ICLP Middle
East (pictured) said; “ICLP is delighted to be the agency of choice for Barclays. There is a growing
initiate a travel focused programme in Africa."
KPMG HAS been named 'Best Islamic Assurance and Advisory Services Provider' in the 2012 Euromoney Islamic finance awards. Muhammad Tariq, UAE head of KPMG’s Islamic Finance practice, said: “The winning of this Euromoney award for a record breaking sixth consecutive year is a testimonial to KPMG's strong
position in this segment.”
Phil Knowles, UAE head of KPMG’s Financial Services practice, added: “While Islamic Finance entities have not been shielded from the current challenges of the global financial services industry, KPMG sees strong prospects for growth, particularly here in the MENA region, in the medium term.
1,400 PART-TIME MBA STUDENTS AT DUBAI’S MANCHESTER BUSINESS SCHOOL
STATS FACT:
NEWS & VIEWS
8 March 2013
CALL FOR CHANGES TO CORPORATE REPORTING
ADFS ACCREDITED
New leaders join ‘Accountants for Business’
WITH THE effectiveness of corporate reporting
crisis, KPMG has published a new report which
discussing the direction that reporting needs to take. The report titled; ‘The future of corporate
reporting: towards a common vision’ contains the
users, standard-‐setters, regulators, auditors.
(pictured), writing in the foreword of the report,
“If there is one point of consensus, it is that
looking; how to achieve a balance between too
with ‘Big Data’; the proper role of narrative reporting in the ‘front end’; whether the notion of ‘integrated reporting’ could be the “next big
the auditor to give assurance over a wider range of risks.
5TOTAL NUMBER OF DFM BROKERAGE FIRMS PROVIDING MARGIN TRADING
DUBAI FINANCIAL Market (DFM) announced that Abu Dhabi Financial Services (ADFS) and Finance House Securities have been accredited to provide Margin Trading, lifting the total number of DFM brokerage firms providing this service to 5.
The exchange is currently processing similar applications from other brokerage f irms
in collaboration with the Securities and Commodities Authority (SCA).
Margin Trading permits brokerage companies to fund a percentage of the market value of securities traded, and secure as collateral for the same securities or any other collateral as required by the SCA’s license.
STATS FACT:
BUSINESS LEADERS from around the world have been appointed to a global think tank to bring new perspectives on the key issues facing Chief Financial O!cers, finance functions and global businesses.
The new appointees to the Accountants for Business global forum, a joint venture between ACCA (the Association of Chartered Certified Accountants) and IMA (Institute of Management Accountants), join from a wide range of industries and backgrounds. They include CFOs, managing directors and vice presidents of leading organisations who will bring direct insights and new thinking to the key challenges facing finance leaders and global finance functions.
Raef Lawson, vice president of research at IMA (pictured),
said: “This is a great opportunity to bring in senior leaders from the business world to enrich our discussions on future issues impacting the finance function and the broader business agenda.”
The new forum members Richard Aitken-Davies, Teuta Bakalli, Holger Lindner, Jennifer Tan Yuen Chun, Neil MacLean, Oliver Colling, Paul Mok, Dr Solaiman Altwaijri and Raymond Jack.
9
NEWS & VIEWS
MBS SEES RISE IN FEMALE STUDENTS
BARCLAYS LAUNCHES NEW AFRICA CARD
KPMG named best Islamic finance adviser
MANCHESTER BUSINESS School (MBS) Middle East Executive Centre at Dubai Knowledge Village has enrolled 101 new part time MBA students (27 nationalities based in 15 countries) in the January 2013 intake, with a rise in the proportion of female MBA students – 18 per cent for the January intake versus an average of 12 per cent in previous intakes.
The Middle East student base has now grown to more than 1,400 part time MBA students and is the largest student cohort in the international network of Manchester Business School.
“We are very impressed with the quality of our students, with many already holding a Masters degree, and also encouraged by the increasing number of female MBA students in the Middle East,” Associate MBA Director (Manchester Business School Worldwide), Xavier Duran, said.
BARCLAYS AFRICA has partnered with ICLP in Dubai, the loyalty specialist, to develop and launch Worldmiles, a rewards programme for its platinum credit card holders. The programme
airline miles programme in Africa. Worldmiles is available to all Barclays Platinum
cardholders in Botswana, Kenya and Egypt, with plans to extend to Mauritius in the near future, and caters to the increasing demand for travel
As a member of the Worldmiles programme, cardholders can earn Worldmiles for all their purchases locally, internationally and online. Worldmiles earned can be redeemed for travel anywhere in the world, on any airline throughout the year.Dion Maritz, General Manager, ICLP Middle
East (pictured) said; “ICLP is delighted to be the agency of choice for Barclays. There is a growing
initiate a travel focused programme in Africa."
KPMG HAS been named 'Best Islamic Assurance and Advisory Services Provider' in the 2012 Euromoney Islamic finance awards. Muhammad Tariq, UAE head of KPMG’s Islamic Finance practice, said: “The winning of this Euromoney award for a record breaking sixth consecutive year is a testimonial to KPMG's strong
position in this segment.”
Phil Knowles, UAE head of KPMG’s Financial Services practice, added: “While Islamic Finance entities have not been shielded from the current challenges of the global financial services industry, KPMG sees strong prospects for growth, particularly here in the MENA region, in the medium term.
1,400 PART-TIME MBA STUDENTS AT DUBAI’S MANCHESTER BUSINESS SCHOOL
STATS FACT:
NEWS & VIEWS
8 March 2013
CALL FOR CHANGES TO CORPORATE REPORTING
ADFS ACCREDITED
New leaders join ‘Accountants for Business’
WITH THE effectiveness of corporate reporting
crisis, KPMG has published a new report which
discussing the direction that reporting needs to take. The report titled; ‘The future of corporate
reporting: towards a common vision’ contains the
users, standard-‐setters, regulators, auditors.
(pictured), writing in the foreword of the report,
“If there is one point of consensus, it is that
looking; how to achieve a balance between too
with ‘Big Data’; the proper role of narrative reporting in the ‘front end’; whether the notion of ‘integrated reporting’ could be the “next big
the auditor to give assurance over a wider range of risks.
5TOTAL NUMBER OF DFM BROKERAGE FIRMS PROVIDING MARGIN TRADING
DUBAI FINANCIAL Market (DFM) announced that Abu Dhabi Financial Services (ADFS) and Finance House Securities have been accredited to provide Margin Trading, lifting the total number of DFM brokerage firms providing this service to 5.
The exchange is currently processing similar applications from other brokerage f irms
in collaboration with the Securities and Commodities Authority (SCA).
Margin Trading permits brokerage companies to fund a percentage of the market value of securities traded, and secure as collateral for the same securities or any other collateral as required by the SCA’s license.
STATS FACT:
BUSINESS LEADERS from around the world have been appointed to a global think tank to bring new perspectives on the key issues facing Chief Financial O!cers, finance functions and global businesses.
The new appointees to the Accountants for Business global forum, a joint venture between ACCA (the Association of Chartered Certified Accountants) and IMA (Institute of Management Accountants), join from a wide range of industries and backgrounds. They include CFOs, managing directors and vice presidents of leading organisations who will bring direct insights and new thinking to the key challenges facing finance leaders and global finance functions.
Raef Lawson, vice president of research at IMA (pictured),
said: “This is a great opportunity to bring in senior leaders from the business world to enrich our discussions on future issues impacting the finance function and the broader business agenda.”
The new forum members Richard Aitken-Davies, Teuta Bakalli, Holger Lindner, Jennifer Tan Yuen Chun, Neil MacLean, Oliver Colling, Paul Mok, Dr Solaiman Altwaijri and Raymond Jack.
9
NEWS & VIEWS
HATS OFF! The Institute of Chartered Accountants in England and Wales (ICAEW) recently celebrated the achievements of newly-quali!ed Chartered Accountants as well as students attaining certi!cates in !nance, accounting and business. Graduates were awarded the internationally-recognised ICAEW Chartered Accountancy quali!cation, the ACA, the Certi!cate in Finance, Accounting and Business (CFAB), and the Corporate Finance quali!cation (CFq). The awards were conferred by Regional Director for ICAEW Middle East, Peter Beynon and witnessed by Sheriff of the City of London Alderman the Honourable Jeffrey Evans.
Edward Quinlan Chairman of ICAEW Members Advisory Board (far right) standing with ICAEW graduates Luke Ellyard KPMG (far left), John Arnold KPMG (2nd right), Asim Rasheed Emirates NBD (2nd right),
BUSINESS PICTORIAL
10 March 2013
HATS OFF! The Institute of Chartered Accountants in England and Wales (ICAEW) recently celebrated the achievements of newly-quali!ed Chartered Accountants as well as students attaining certi!cates in !nance, accounting and business. Graduates were awarded the internationally-recognised ICAEW Chartered Accountancy quali!cation, the ACA, the Certi!cate in Finance, Accounting and Business (CFAB), and the Corporate Finance quali!cation (CFq). The awards were conferred by Regional Director for ICAEW Middle East, Peter Beynon and witnessed by Sheriff of the City of London Alderman the Honourable Jeffrey Evans.
Edward Quinlan Chairman of ICAEW Members Advisory Board (far right) standing with ICAEW graduates Luke Ellyard KPMG (far left), John Arnold KPMG (2nd right), Asim Rasheed Emirates NBD (2nd right),
BUSINESS PICTORIAL
10 March 2013
BUSINESSPICTORIAL
11
CHANGE OF GUARD
THE ABU DHABI Chapter of the Institute of Chartered Accountants of India (ICAI) recently elected new officials to set and implement the
body’s strategy in the next financial year.
In their annual general meeting held recently, CA Padmanabha Acharya was elected Chairman and CA Rajiv Shah as Vice-‐Chairman of the Chapter. CA Suresh Chander Panwar is now the Secretary and CA Ashish Bhandari takes over as Treasurer of the Chapter.
Other main committee members who were elected are CA B.S. Mony heading Membership, CA Susheel Jain in charge of Social affairs, CA Ashraf Misba to oversee the running of the Chapter’s Website and Communication issues, CA Nilesh Ambikar heading the Professional Development Committee and Ankur Ranka, who is tasked with the Media & Student Affairs.
In addition, the members elected CA Neeraj Ritolia, CA Malav Patel, CA Ravi Valia, CA Shilpa
ICAI Abu Dhabi Chapter elects new managing committee to drive association’s agenda in the next !nancial year
Gandhi and CA Manish Buchha as sub-‐committee members to support the main committee.
As the 12th Chairman of the Abu Dhabi Chapter of ICAI, CA Padmanabha Acharya acknowledged the immense contribution made by the past chairmen and laid down the objectives of newly appointed committee in
“The new team is capable and talented, and I have enormous faith in all the members elected,” Acharya said, adding “the core objective of the Chapter to provide continuing professional education to its members which is a high priority area for the committee.”
The Institute of Chartered Accountants of India is the second largest accounting body in the world and currently has over 200,000 members. The Abu Dhabi Chapter of ICAI is one of the very active chapters among the 21 overseas chapters of the Institute.
The Abu Dhabi Chapter has been in existence for the past 29 years and currently comprises about 600 members. The Chapter is actively involved in enhancing and updating the professional knowledge of its members through organising seminars under the Continuing Professional Education programmes of the Institute.
The Institute of Chartered Accountants of India is the second largest accounting body in the world and currently has over 200,000 members.
NEW FACE OF ICAI-ABU DHABI:
The Managing Committee for the Year 2013 comprises of Padmanabha Acharya, Suresh Panwar, Rajiv Shah, Aashish Bhandari, B. S. Mony, Susheel Kumar Jain Pooranmal, Nilesh Ambikar Pramod, Ashraf Musba, Ankur Ranka and Shilpa Gandhi. Others are Malav Patel, Neeraj Ritolia, Ravee R Valia and Manish Bucha.
FOCUS ON ICAI-UAE
12 March 2013
AN EVENING WITH CHETAN'For the right motivation and passion, you never age,' globally celebrated author tells audience at event organised by the Institute of Chartered Accountants of India
VOTE OF THANKS:
Ramesh Krishnan, the immediate former Chairman of ICAI-Abu Dhabi Chapter and James Mathew, the Chairman of Dubai Chapter present a memento to Chetan Bhagat, after the celebrated author delivered his keynote speech at a recent event organised by the two Faculties.
CHETAN BHAGAT, the biggest selling English-language novelist in India recently challenged professionals to “uphold the tenets
of the profession in today’s demanding and challenging marketplace.”
“Failure shouldn’t have so much power that it can make you quit,” he said is his speech.
While addressing the members drawn from both the Dubai and Abu Chapters of the Institute of Chartered Accountants of India (ICAI), the author’s wit and humor drew incessant burst of applause
College Auditorium with laughter and good energy.
Talking about leadership in the event dubbed ‘CEO 2020’; Chetan captivated the audience with what he referred to as the ‘Game of Time’.
“Time management is the key to being a good CEO. Challenge yourself to be the ‘CEO 2020’ to leave your footprint behind,” he said.
Chetan is the author of six blockbuster novels and
the world” by Time Magazine. He has also been named as one of the world’s “100 most creative people in business” by Fast Company, USA. The author writes columns for leading English and Hindi newspapers, focusing on youth and national
development issues. He is also a motivational speaker. He quit his international investment banking career in 2009 to devote his entire time to writing.
ICAI, Abu Dhabi and Dubai Chapters have teamed up to bring eminent personalities in the UAE, to address the association’s members on key issues of management.
“Both Chapters have been working diligently to provide our professional colleagues a platform for networking, association and further professional
of Dubai Chapter.
profound efforts, the passion and the enthusiasm of those members who are committed to the progress of the Chapters. We will continue with the determination to create ICAI a global presence and make the Chapters a success and mark of professional triumph,” he added.
Ramesh Krishnan, Chairman of Abu Dhabi Chapter added, “There was a promise last year, when we did the
Chapter that we will have more celebrity speakers – and we are proud that this is a reality today.”
CELEBRITY TALK:
Chetan Bhagat is the author of six blockbuster novels and has
Time Magazine.
13
FOCUS ON ICAI-UAE
CHANGE OF GUARD
THE ABU DHABI Chapter of the Institute of Chartered Accountants of India (ICAI) recently elected new officials to set and implement the
body’s strategy in the next financial year.
In their annual general meeting held recently, CA Padmanabha Acharya was elected Chairman and CA Rajiv Shah as Vice-‐Chairman of the Chapter. CA Suresh Chander Panwar is now the Secretary and CA Ashish Bhandari takes over as Treasurer of the Chapter.
Other main committee members who were elected are CA B.S. Mony heading Membership, CA Susheel Jain in charge of Social affairs, CA Ashraf Misba to oversee the running of the Chapter’s Website and Communication issues, CA Nilesh Ambikar heading the Professional Development Committee and Ankur Ranka, who is tasked with the Media & Student Affairs.
In addition, the members elected CA Neeraj Ritolia, CA Malav Patel, CA Ravi Valia, CA Shilpa
ICAI Abu Dhabi Chapter elects new managing committee to drive association’s agenda in the next !nancial year
Gandhi and CA Manish Buchha as sub-‐committee members to support the main committee.
As the 12th Chairman of the Abu Dhabi Chapter of ICAI, CA Padmanabha Acharya acknowledged the immense contribution made by the past chairmen and laid down the objectives of newly appointed committee in
“The new team is capable and talented, and I have enormous faith in all the members elected,” Acharya said, adding “the core objective of the Chapter to provide continuing professional education to its members which is a high priority area for the committee.”
The Institute of Chartered Accountants of India is the second largest accounting body in the world and currently has over 200,000 members. The Abu Dhabi Chapter of ICAI is one of the very active chapters among the 21 overseas chapters of the Institute.
The Abu Dhabi Chapter has been in existence for the past 29 years and currently comprises about 600 members. The Chapter is actively involved in enhancing and updating the professional knowledge of its members through organising seminars under the Continuing Professional Education programmes of the Institute.
The Institute of Chartered Accountants of India is the second largest accounting body in the world and currently has over 200,000 members.
NEW FACE OF ICAI-ABU DHABI:
The Managing Committee for the Year 2013 comprises of Padmanabha Acharya, Suresh Panwar, Rajiv Shah, Aashish Bhandari, B. S. Mony, Susheel Kumar Jain Pooranmal, Nilesh Ambikar Pramod, Ashraf Musba, Ankur Ranka and Shilpa Gandhi. Others are Malav Patel, Neeraj Ritolia, Ravee R Valia and Manish Bucha.
FOCUS ON ICAI-UAE
12 March 2013
AN EVENING WITH CHETAN'For the right motivation and passion, you never age,' globally celebrated author tells audience at event organised by the Institute of Chartered Accountants of India
VOTE OF THANKS:
Ramesh Krishnan, the immediate former Chairman of ICAI-Abu Dhabi Chapter and James Mathew, the Chairman of Dubai Chapter present a memento to Chetan Bhagat, after the celebrated author delivered his keynote speech at a recent event organised by the two Faculties.
CHETAN BHAGAT, the biggest selling English-language novelist in India recently challenged professionals to “uphold the tenets
of the profession in today’s demanding and challenging marketplace.”
“Failure shouldn’t have so much power that it can make you quit,” he said is his speech.
While addressing the members drawn from both the Dubai and Abu Chapters of the Institute of Chartered Accountants of India (ICAI), the author’s wit and humor drew incessant burst of applause
College Auditorium with laughter and good energy.
Talking about leadership in the event dubbed ‘CEO 2020’; Chetan captivated the audience with what he referred to as the ‘Game of Time’.
“Time management is the key to being a good CEO. Challenge yourself to be the ‘CEO 2020’ to leave your footprint behind,” he said.
Chetan is the author of six blockbuster novels and
the world” by Time Magazine. He has also been named as one of the world’s “100 most creative people in business” by Fast Company, USA. The author writes columns for leading English and Hindi newspapers, focusing on youth and national
development issues. He is also a motivational speaker. He quit his international investment banking career in 2009 to devote his entire time to writing.
ICAI, Abu Dhabi and Dubai Chapters have teamed up to bring eminent personalities in the UAE, to address the association’s members on key issues of management.
“Both Chapters have been working diligently to provide our professional colleagues a platform for networking, association and further professional
of Dubai Chapter.
profound efforts, the passion and the enthusiasm of those members who are committed to the progress of the Chapters. We will continue with the determination to create ICAI a global presence and make the Chapters a success and mark of professional triumph,” he added.
Ramesh Krishnan, Chairman of Abu Dhabi Chapter added, “There was a promise last year, when we did the
Chapter that we will have more celebrity speakers – and we are proud that this is a reality today.”
CELEBRITY TALK:
Chetan Bhagat is the author of six blockbuster novels and has
Time Magazine.
13
FOCUS ON ICAI-UAE
GLOBAL BUSINESS confidence dropped marginally in the fourth quarter of 2012, according to a survey of 1,994 finance
professionals around the world.
Forty three per cent of global respondents reported
41 per cent in Q3), while only 19 per cent reported
Meanwhile, 30 per cent of respondents considered
Raef Lawson IMA vice president of research: “What is encouraging is that capital spending increased in the Middle East, as it did in Western Europe and the
previous quarter, the
reporting no change
This has resulted in the wider Middle East region losing its narrow lead
Raef Lawson IMA vice president of research, observed: “The picture in the UAE is one of slightly
ECONOMIC SURVEY
14 March 2013
AT A TIPPING POINT?Middle East business con!dence slightly down; region overtaken by Africa as leader of recovery, global economic survey of accountants shows...
30%RESPONDENTS WHO FEEL THAT THE GLOBAL ECONOMY IS ON COURSE FOR RECOVERY
As the difficult economic conditions persist, CEOs are generally more worried about a wider range of issues than they were a year ago. Top of the list is the continuing uncertainty over economic growth.
stabilising, we’re not so sure. What is encouraging is that capital spending increased in the Middle East, as it did in Western Europe and the Asia-‐
This was welcome news following six months of
Stuart Dunlop, head of ACCA Middle East said: “It is less encouraging to see input prices have
subdued with businesses reluctant to invest in current or new staff. Respondents are reporting
their suppliers and customers; this does not bode
region in which members believed, on balance, that
perception has changed in the last three months,
short term revenue growth. Faced with ongoing
term growth also declined in North America to
prospects in the next
CEOs in Africa and the Middle East were most
long term growth, while
Chairman of PricewaterhouseCoopers International, said: “CEOs remain cautious about
of concern among CEOs about issues -‐ such as
focus on customers, collaborating with them more
Stuart Dunlop, head of ACCA Middle East: “Respondents are reporting fewer opportunities for working more closely with their suppliers and customers; this does not bode well for the UAE or the wider region.”
ECONOMIC SURVEY
15
GLOBAL BUSINESS confidence dropped marginally in the fourth quarter of 2012, according to a survey of 1,994 finance
professionals around the world.
Forty three per cent of global respondents reported
41 per cent in Q3), while only 19 per cent reported
Meanwhile, 30 per cent of respondents considered
Raef Lawson IMA vice president of research: “What is encouraging is that capital spending increased in the Middle East, as it did in Western Europe and the
previous quarter, the
reporting no change
This has resulted in the wider Middle East region losing its narrow lead
Raef Lawson IMA vice president of research, observed: “The picture in the UAE is one of slightly
ECONOMIC SURVEY
14 March 2013
AT A TIPPING POINT?Middle East business con!dence slightly down; region overtaken by Africa as leader of recovery, global economic survey of accountants shows...
30%RESPONDENTS WHO FEEL THAT THE GLOBAL ECONOMY IS ON COURSE FOR RECOVERY
As the difficult economic conditions persist, CEOs are generally more worried about a wider range of issues than they were a year ago. Top of the list is the continuing uncertainty over economic growth.
stabilising, we’re not so sure. What is encouraging is that capital spending increased in the Middle East, as it did in Western Europe and the Asia-‐
This was welcome news following six months of
Stuart Dunlop, head of ACCA Middle East said: “It is less encouraging to see input prices have
subdued with businesses reluctant to invest in current or new staff. Respondents are reporting
their suppliers and customers; this does not bode
region in which members believed, on balance, that
perception has changed in the last three months,
short term revenue growth. Faced with ongoing
term growth also declined in North America to
prospects in the next
CEOs in Africa and the Middle East were most
long term growth, while
Chairman of PricewaterhouseCoopers International, said: “CEOs remain cautious about
of concern among CEOs about issues -‐ such as
focus on customers, collaborating with them more
Stuart Dunlop, head of ACCA Middle East: “Respondents are reporting fewer opportunities for working more closely with their suppliers and customers; this does not bode well for the UAE or the wider region.”
ECONOMIC SURVEY
15
message to governments around the world, other key CEO worries are the government response
and thrive amid disorder, CEOs are pursuing
as most important
patterns as a serious
investment priority
was growing their
Dennis M. Nally, Chairman of PricewaterhouseCoopers International: “CEOs remain cautious about their short term prospects and the outlook for the global economy.”
Perceptions of the global economy fell into negative territory, with 49% of respondents in the UAE seeing a weaker or stagnant global economy ahead.
16 March 2013
ECONOMIC SURVEY
message to governments around the world, other key CEO worries are the government response
and thrive amid disorder, CEOs are pursuing
as most important
patterns as a serious
investment priority
was growing their
Dennis M. Nally, Chairman of PricewaterhouseCoopers International: “CEOs remain cautious about their short term prospects and the outlook for the global economy.”
Perceptions of the global economy fell into negative territory, with 49% of respondents in the UAE seeing a weaker or stagnant global economy ahead.
16 March 2013
ECONOMIC SURVEY
TWENTY-SIX YEARS ago, Stephen Williams decided to leave his post as an audit manager at Peat, Marwick, Mitchell & Co – the
renowned accounting firm that was founded in London in 1870 and that would go on to form the ‘P’ in KPMG.
He had no idea that he was about to become what people used to call a ‘company man’. He certainly had no idea that he was destined to become the central player in an astonishing corporate disaster.
He joined Gulf International Bank (GIB) when it was essentially an investment vehicle for the GCC government’s petro-‐dollars in the emerging markets of Latin America. That company bears little resemblance to the giant it is today, managing assets worth in excess of $18 billion.
Many people would wonder why somebody would
Surely you’d hit a ceiling? Surely you’d get bored?
For Williams, his journey at GIB has been anything but a smooth ride and it has never failed to present him with the kind of challenges that occasionally leave him lying awake at night. He has seen the business change entirely, from a
wholesale commercial and investment bank.
As the Managing Director and Chief Financial
for. He speaks in a youthful tone and still seems to be very excited about his role.
He’s proud of the journey he has been on and
with the same company for so long.
“I’ve seen this bank and the entire region evolve over more than two decades. I’ve had four different jobs within this company and have been a key part of the management team through very good times and some pretty appalling ones too,” he says, adding “Frankly, I don’t feel as if I have
MANAGING DIRECTOR, SHANE PHILLIPS CONSULTANTS
SHANE PHILLIPS
MOVERS & SHAKERS
18 March 2013
BACK FROM THE
BRINKAs the Managing Director and CFO of Gulf International Bank, Stephen Williams will go down in history as the leader who transformed the bank from a struggling institution to a fully diversi!ed wholesale commercial and investment giant that it is today...
been with the same company at all. The name above the door is the same but that is pretty much where it ends.”
Back in 1984, the economies of the Gulf hardly registered on the global economic radar. For a young audit trainee from London to accept the offer of a move to a place that few people were familiar with – and to leave the London boom of the 1980’s behind – was unusual. For Williams, it was a no-‐brainer.
“I knew that there was money in the Gulf and I sensed – instinctively I guess – that there would be huge opportunities for me to move in to the kind of job that I really wanted. I was also keen to explore the wider world and when my bosses at Peat, Marwick, Mitchell & Co asked me to move to Bahrain, I didn’t think twice,” the CFO says.
So, with only four years experience under his belt, the Institute of Chartered Accountants in England
on a plane and headed to Bahrain.
“When you’re in the middle of a major crisis, you sink or swim. We had to make some extraordinary decisions in order to make the business survive… but this was a moment in history that taught me that most valuable of lessons: to think the unthinkable.”
Since then he has never looked back. When asked what his greatest achievement has been at GIB, he doesn’t hesitate to start talking about his team. This says a lot about a man who turned this company around in the aftermath of the Great Recession and pulled it back from the brink of bankruptcy. He talks warmly and fondly of the large team of seventy young professionals that he has put together.
“It gives me enormous pleasure to work with intelligent and ambitious young people. They
up primarily of Bahraini nationals, who are all without question, ambitious, dedicated and passionate people. I am genuinely thrilled to have brought all of these people together over the past ten years.”
most important parts of a CFO’s job. But many view it as a soft skill. Williams has steered GIB
meltdown but without a team that he could believe in, he isn’t so sure that he and the wider company could have pulled through.
At the time of the recession, GIB came very close to becoming another Lehman Brothers. It had a portfolio of $5 billion of toxic assets and securities, bad debts that promised to destroy the company.
“We had a business model that was completely broken. We were over-‐leveraged. We were unable to fund ourselves without assistance, our cost base was unsustainable and we had become reliant on short-‐term wholesale funding. The whole model was totally and utterly broken. It was, frankly, a disaster. Let me tell you, it’s not pleasant sitting in the CFO’s chair when the world
VISIONARY:
Stephen Williams, Managing Director and Chief Financial
Bank, Bahrain
MOVERS & SHAKERS
19
TWENTY-SIX YEARS ago, Stephen Williams decided to leave his post as an audit manager at Peat, Marwick, Mitchell & Co – the
renowned accounting firm that was founded in London in 1870 and that would go on to form the ‘P’ in KPMG.
He had no idea that he was about to become what people used to call a ‘company man’. He certainly had no idea that he was destined to become the central player in an astonishing corporate disaster.
He joined Gulf International Bank (GIB) when it was essentially an investment vehicle for the GCC government’s petro-‐dollars in the emerging markets of Latin America. That company bears little resemblance to the giant it is today, managing assets worth in excess of $18 billion.
Many people would wonder why somebody would
Surely you’d hit a ceiling? Surely you’d get bored?
For Williams, his journey at GIB has been anything but a smooth ride and it has never failed to present him with the kind of challenges that occasionally leave him lying awake at night. He has seen the business change entirely, from a
wholesale commercial and investment bank.
As the Managing Director and Chief Financial
for. He speaks in a youthful tone and still seems to be very excited about his role.
He’s proud of the journey he has been on and
with the same company for so long.
“I’ve seen this bank and the entire region evolve over more than two decades. I’ve had four different jobs within this company and have been a key part of the management team through very good times and some pretty appalling ones too,” he says, adding “Frankly, I don’t feel as if I have
MANAGING DIRECTOR, SHANE PHILLIPS CONSULTANTS
SHANE PHILLIPS
MOVERS & SHAKERS
18 March 2013
BACK FROM THE
BRINKAs the Managing Director and CFO of Gulf International Bank, Stephen Williams will go down in history as the leader who transformed the bank from a struggling institution to a fully diversi!ed wholesale commercial and investment giant that it is today...
been with the same company at all. The name above the door is the same but that is pretty much where it ends.”
Back in 1984, the economies of the Gulf hardly registered on the global economic radar. For a young audit trainee from London to accept the offer of a move to a place that few people were familiar with – and to leave the London boom of the 1980’s behind – was unusual. For Williams, it was a no-‐brainer.
“I knew that there was money in the Gulf and I sensed – instinctively I guess – that there would be huge opportunities for me to move in to the kind of job that I really wanted. I was also keen to explore the wider world and when my bosses at Peat, Marwick, Mitchell & Co asked me to move to Bahrain, I didn’t think twice,” the CFO says.
So, with only four years experience under his belt, the Institute of Chartered Accountants in England
on a plane and headed to Bahrain.
“When you’re in the middle of a major crisis, you sink or swim. We had to make some extraordinary decisions in order to make the business survive… but this was a moment in history that taught me that most valuable of lessons: to think the unthinkable.”
Since then he has never looked back. When asked what his greatest achievement has been at GIB, he doesn’t hesitate to start talking about his team. This says a lot about a man who turned this company around in the aftermath of the Great Recession and pulled it back from the brink of bankruptcy. He talks warmly and fondly of the large team of seventy young professionals that he has put together.
“It gives me enormous pleasure to work with intelligent and ambitious young people. They
up primarily of Bahraini nationals, who are all without question, ambitious, dedicated and passionate people. I am genuinely thrilled to have brought all of these people together over the past ten years.”
most important parts of a CFO’s job. But many view it as a soft skill. Williams has steered GIB
meltdown but without a team that he could believe in, he isn’t so sure that he and the wider company could have pulled through.
At the time of the recession, GIB came very close to becoming another Lehman Brothers. It had a portfolio of $5 billion of toxic assets and securities, bad debts that promised to destroy the company.
“We had a business model that was completely broken. We were over-‐leveraged. We were unable to fund ourselves without assistance, our cost base was unsustainable and we had become reliant on short-‐term wholesale funding. The whole model was totally and utterly broken. It was, frankly, a disaster. Let me tell you, it’s not pleasant sitting in the CFO’s chair when the world
VISIONARY:
Stephen Williams, Managing Director and Chief Financial
Bank, Bahrain
MOVERS & SHAKERS
19
falls apart and you realise that your assets are essentially worthless.”
The bank was ultimately saved by its shareholders, who purchased the banks toxic debts, wiping the slate clean. The biggest buyer of these debts was the government of Saudi Arabia. These were turbulent times for the global economy and times during which it became incredibly important for Williams to keep his cool and steer the company
“We had a new board of directors, a new CEO – and this was all at the beginning of 2009. Prior to this
(each owning various chunks) but when Saudi stepped in, it increased its share from 56 per cent to 97 per cent.”
“In a very short space of time, the company’s entire
were turned upside down. Having your hands on the wheel during those weeks and months was incredibly exhilarating – occasionally terrifying – but exhilarating all the same. It was a moment in history.”
It may seem strange in a hard capitalist environment such as investment banking to see a huge bank saved by a friendly regional government. The truth is, it’s exactly the same kind of action that has been used time and again all over the world since the crisis began. It’s certainly not dissimilar to the nationalisation of
Brown, a move that shocked the business world.
Williams was almost the only member of the executive management team to stay with the bank throughout the recession. This is perhaps because he was the man who developed the very idea of selling the toxic debts, thus recapitalising the bank and saving it from ruin. The challenge then of course, became perhaps even greater.
“Securing the bank’s future not only rested on getting rid of bad debts, recapitalisation and bringing in a new management team but it also meant persuading the bank’s new owners that
rather than folding it in to the Saudi government’s other portfolio of banks.”
Williams and his new CEO were tasked with the job of developing a platform that could take the bank forward.
“The government of Saudi clearly needed to know
and for us that meant ripping everything up and starting from scratch. It meant drilling down in to the DNA of the bank to investigate how it could give value back to the government of Saudi and –
This all sounds like pretty scary stuff but for Williams it meant getting back to the basics of
and his new colleagues set about stripping the bank down.
“First of all we had to try to get the bank on a stable footing -‐ that meant reducing leverage, ending our proprietary trading activity, we had to reduce our loan portfolio (reducing lending) and also address the funding of the bank – we put in place a long term borrowing programme and
of course; it meant we had to make redundancies. This was a complete shock to the system for the bank – the company had always had a family
PASSING THE BATON:
“It gives me enormous pleasure to work with intelligent and ambitious young people. They will be, after all, the people
I have gone.”
MOVERS & SHAKERS
20 March 2013 21
Williams’ decisions have enabled the bank to secure the support and confidence of external stakeholders. At the beginning of 2012, the bank’s Fitch Viability rating was upgraded, in recognition that it was in a stronger financial place.
MOVERS & SHAKERS
falls apart and you realise that your assets are essentially worthless.”
The bank was ultimately saved by its shareholders, who purchased the banks toxic debts, wiping the slate clean. The biggest buyer of these debts was the government of Saudi Arabia. These were turbulent times for the global economy and times during which it became incredibly important for Williams to keep his cool and steer the company
“We had a new board of directors, a new CEO – and this was all at the beginning of 2009. Prior to this
(each owning various chunks) but when Saudi stepped in, it increased its share from 56 per cent to 97 per cent.”
“In a very short space of time, the company’s entire
were turned upside down. Having your hands on the wheel during those weeks and months was incredibly exhilarating – occasionally terrifying – but exhilarating all the same. It was a moment in history.”
It may seem strange in a hard capitalist environment such as investment banking to see a huge bank saved by a friendly regional government. The truth is, it’s exactly the same kind of action that has been used time and again all over the world since the crisis began. It’s certainly not dissimilar to the nationalisation of
Brown, a move that shocked the business world.
Williams was almost the only member of the executive management team to stay with the bank throughout the recession. This is perhaps because he was the man who developed the very idea of selling the toxic debts, thus recapitalising the bank and saving it from ruin. The challenge then of course, became perhaps even greater.
“Securing the bank’s future not only rested on getting rid of bad debts, recapitalisation and bringing in a new management team but it also meant persuading the bank’s new owners that
rather than folding it in to the Saudi government’s other portfolio of banks.”
Williams and his new CEO were tasked with the job of developing a platform that could take the bank forward.
“The government of Saudi clearly needed to know
and for us that meant ripping everything up and starting from scratch. It meant drilling down in to the DNA of the bank to investigate how it could give value back to the government of Saudi and –
This all sounds like pretty scary stuff but for Williams it meant getting back to the basics of
and his new colleagues set about stripping the bank down.
“First of all we had to try to get the bank on a stable footing -‐ that meant reducing leverage, ending our proprietary trading activity, we had to reduce our loan portfolio (reducing lending) and also address the funding of the bank – we put in place a long term borrowing programme and
of course; it meant we had to make redundancies. This was a complete shock to the system for the bank – the company had always had a family
PASSING THE BATON:
“It gives me enormous pleasure to work with intelligent and ambitious young people. They will be, after all, the people
I have gone.”
MOVERS & SHAKERS
20 March 2013 21
Williams’ decisions have enabled the bank to secure the support and confidence of external stakeholders. At the beginning of 2012, the bank’s Fitch Viability rating was upgraded, in recognition that it was in a stronger financial place.
MOVERS & SHAKERS
When pressed on whether or not there was ever a day when he thought of throwing it in, or that the bank might not survive, he is characteristically chirpy.
“When you’re in the middle of it – when you’re so busy, there’s just no time to look around to second-‐guess outcomes. You’re knee deep in sorting it out, motivating the team and working with your stakeholders. And as I say, I’m just one of those people who tend to see the positive. It never crossed my mind that things could go wrong.”
Williams talks in great depth about leadership and the importance of investing time and effort in training and supporting his team. He also
it was to make redundancies during the tough times. He’s clearly a man who is able to make those tough calls – for the survival of the
other key stakeholders.
“I look back at those times and I recall explaining to people how important it was to make redundancies – it’s hard. But I look back and I know it was the right thing to do. I am still in touch with many of those people and lots of them have gone on to achieve success elsewhere. The fact is, it’s all part of being an effective leader. I didn’t enjoy it but I know it was the right thing to do, for everybody involved.”
He’s somebody who talks rather easily about being a visionary. Although I suspect he is somebody who stumbled across the need to be a visionary by accident.
“When you’re in the middle of a major crisis, you sink or swim. I have learnt that in those times – perhaps in all times – there is no idea, no matter how insane it may seem, that should be immediately dismissed. We had to make some extraordinary suggestions in order to make this business survive. I never
this was a moment in history that taught me that most valuable of lessons: to think the unthinkable. It’s a great lesson.”
“Deciding to off-‐load $5 billion of toxic debts to a government shareholder has not only allowed us to survive but it has taken us down a path that would otherwise not have appeared before us. We now sit in a truly unique space in the market. That gives me and every single stakeholder great
JOURNEY TO THE TOP:
“I’ve seen Gulf International Bank and the entire region evolve over more than two decades. I have been a key part of the management team through very good times and some pretty appalling ones too.”
At the time of the recession, Gulf International Bank came very close to becoming another Lehman Brothers. It had a portfolio of $5 billion of toxic assets and securities, bad debts that promised to destroy the company.
MOVERS & SHAKERS
22 March 2013
roberthalf.ae
2013 Salary Guide | 10
ROBERT HALF FINANCE AND ACCOUNTING SALARIES (in USD)Job titleSize of business
% ChangeCFO
S/M --Large --
Finance DirectorS/M -
-Large --
Chief AccountantS/M -
-Large --
Financial Controller S/M --Large --
Assistant Financial ControllerS/M -
-Large --
TreasurerS/M -
-Large --
Assistant TreasurerS/M -
-Large --
Finance ManagerS/M -
-Large --
Senior Finance AssociateS/M -
-Large --
Tax DirectorS/M -
-Large --
Tax ManagerS/M -
-Large --
Senior Tax AssociateS/M -
-Large --
Senior Financial AnalystS/M -
-Large --
Financial AnalystS/M -
-Large --
Compliance DirectorS/M -
-Large --
Compliance ManagerS/M -
-Large --
Compliance OfficerS/M -
-Large --
ROBERT HALF FINANCE AND ACCOUNTING SALARIES (in USD)
ROBERT HALF FINANCE AND ACCOUNTING SALARIES (in USD)
IN TODAY’s global marketplace, corporations play a significant role in the structure of the economy.
It is due to recognition of this fact that recently, in an effort to combat some of the issues preventing women from reaching senior leadership positions, the Prime Minister and Vice President of the UAE His Highness Sheikh Mohammed bin Rashid Al Maktoum issued a decree to make representation of women in companies’ boards, compulsory.
Various research studies have shown that although women are making inroads in lower-‐ and middle-‐
under-‐represented in the C-‐suite level for many of the most successful companies.
Would having gender diversity in company
characteristics of companies?
A recent analysis by Credit Suisse revealed that having women on corporate boards helped to enhance companies’ bottom line and further
companies globally over the last six years, the report shows that it would on average have been better to have invested in corporates with women on their management boards than in those without.
Although the proportion of women at board level generally remains very low, the study observes that
Susie Isaacson, ACCA Middle East Head of UAE
that is changing, as governments intervention in
years. Besides the UAE, seven countries have passed legislation mandating female board representation and eight have set non-‐mandatory targets.
WOMEN IN FINANCE
24 March 2013
DIVERSITY ADVANTAGEIn our second installment of the topic ‘Women in Finance’, Joyce Njeri speaks to women in senior positions in accountancy and !nance industry, to assess their views on gender-representation on corporate boards...
IN TODAY’s global marketplace, corporations play a significant role in the structure of the economy.
It is due to recognition of this fact that recently, in an effort to combat some of the issues preventing women from reaching senior leadership positions, the Prime Minister and Vice President of the UAE His Highness Sheikh Mohammed bin Rashid Al Maktoum issued a decree to make representation of women in companies’ boards, compulsory.
Various research studies have shown that although women are making inroads in lower-‐ and middle-‐
under-‐represented in the C-‐suite level for many of the most successful companies.
Would having gender diversity in company
characteristics of companies?
A recent analysis by Credit Suisse revealed that having women on corporate boards helped to enhance companies’ bottom line and further
companies globally over the last six years, the report shows that it would on average have been better to have invested in corporates with women on their management boards than in those without.
Although the proportion of women at board level generally remains very low, the study observes that
Susie Isaacson, ACCA Middle East Head of UAE
that is changing, as governments intervention in
years. Besides the UAE, seven countries have passed legislation mandating female board representation and eight have set non-‐mandatory targets.
WOMEN IN FINANCE
24 March 2013
DIVERSITY ADVANTAGEIn our second installment of the topic ‘Women in Finance’, Joyce Njeri speaks to women in senior positions in accountancy and !nance industry, to assess their views on gender-representation on corporate boards...
So what factors are impeding women’s advancement
Various research studies have shown that although women are making inroads in lower- and middle-management positions, they are significantly under-represented in the C-suite level.
research into the differences between men and women when it comes to access to the boardroom,
Deepa Chandrashekar, Senior Finance Professional at Qatar Petroleum
WOMEN IN FINANCE
25
of the Qatar Advisory Committee of ACCA.
The ACCA research also reveals that women appear to have been more successful in reaching the most senior jobs through
and this may have implications for other functions when looking
to encourage the progression of female talent.
for all board directors,” says Dr Ruth Sealy, Deputy
Women Leaders and co-‐author of the ACCA report.
functional background helps to break down some persistent stereotypes about their competence, giving them credibility, legitimacy and a common language that allows them to join the conversation of the boards,” she adds.
One issue though that elicited cynical reaction is the
on corporate boards.
According to Susie, ACCA believes that the solution to increase women’s participation is not
“but through practical steps that could make a substantive difference.”
“So the decision by His Highness was clearly a practical solution which has been introduced to bring about change. Such practical steps can only be welcomed,” she added.
is probably a small step taken towards the right
need to lobby to claim a right that is theirs to begin with. What should really matter to shareholders are a member’s skills, experience, education and knowledge and not the gender.
board rooms,” she added.
Elena Fedorova, the Finance Manager for Brewer Smith Brewer Gulf Chartered Architects, supports
successful measures aimed at ensuring gender diversity in the boardroom have done it through
appointments,” she says.
Elena is Chartered Accountant from New Zealand, and has an extensive experience in the
the most effective method for boards to open their doors to gender diversity.”
Gender diversity has been on the corporate agenda for many years now, and yet we still see only a small percentage of women on today’s corporate boards. According to Susie, there are a lot of academic studies as to why this is the case, “indeed
Dr Ruth Sealy, Deputy
International Centre for
WOMEN IN FINANCE
26 March 2013
of the Qatar Advisory Committee of ACCA.
The ACCA research also reveals that women appear to have been more successful in reaching the most senior jobs through
and this may have implications for other functions when looking
to encourage the progression of female talent.
for all board directors,” says Dr Ruth Sealy, Deputy
Women Leaders and co-‐author of the ACCA report.
functional background helps to break down some persistent stereotypes about their competence, giving them credibility, legitimacy and a common language that allows them to join the conversation of the boards,” she adds.
One issue though that elicited cynical reaction is the
on corporate boards.
According to Susie, ACCA believes that the solution to increase women’s participation is not
“but through practical steps that could make a substantive difference.”
“So the decision by His Highness was clearly a practical solution which has been introduced to bring about change. Such practical steps can only be welcomed,” she added.
is probably a small step taken towards the right
need to lobby to claim a right that is theirs to begin with. What should really matter to shareholders are a member’s skills, experience, education and knowledge and not the gender.
board rooms,” she added.
Elena Fedorova, the Finance Manager for Brewer Smith Brewer Gulf Chartered Architects, supports
successful measures aimed at ensuring gender diversity in the boardroom have done it through
appointments,” she says.
Elena is Chartered Accountant from New Zealand, and has an extensive experience in the
the most effective method for boards to open their doors to gender diversity.”
Gender diversity has been on the corporate agenda for many years now, and yet we still see only a small percentage of women on today’s corporate boards. According to Susie, there are a lot of academic studies as to why this is the case, “indeed
Dr Ruth Sealy, Deputy
International Centre for
WOMEN IN FINANCE
26 March 2013 27
some detail and event suggests that this is down to recruitment practices, perceptions and biases.”
“ACCA supports greater diversity in the composition of company boards not only in terms of gender, but also in background and experience. There is now a considerable body of evidence which suggests that the presence of women on company boards actively promotes the cause of good governance and sound management and possibly also enhanced business performance,” the UAE head says.
While hailing Sheikh Mohammed’s pronouncement to make the representation of women in companies’ boards compulsory, Susie said; “The Ruler’s decision was widely welcomed by business. Similarly, ACCA is dedicated to providing equal opportunity to all and so is pleased to have the highest proportion of female members (41%) of all the UK-‐based accountancy bodies.”
of any professional accountancy body – Ethel Ayres Purdie, who became a member in 1909. Professional accountancy is a credible and proven route to give women (as well as men) the skills and competence to succeed in business.”
Zainab Fakhruddin says Sheikh Mohammed’s decree, although a welcome move, “was long overdue.”
“Women represent 50% of the population and a
across all spheres of life, therefore, it was only a question of time before this [pronouncement] became inevitable. I welcome Sheikh Mohammed’s decision and admire his vision and execution in making Dubai what it is today.”
“While I feel this is a step in the right direction, I believe companies should be encouraged to appoint female board members and actively groom females with a view to board and senior management appointments in the future. I think this decree will go some way to an open debate and encourage organisations to actively pursue an agenda of diversity within companies as well as boards,” says Zainab.
Zainab has served as board member for two years, an experience she says she gladly enjoys.
Fakhruddin Holdings is one of the top conglomerates in the Middle East with a diverse portfolio of successful businesses that include trading, plastics, beauty and personal care, property development and joint
A recent analysis by Credit Suisse revealed that having women on corporate boards helped to enhance companies’ bottom line and further expand profits.
ventures. The Group is a diversified family business with a 50 year history if successful business in the UAE.
“We implemented a Holdings structure two years ago with the appointment of an external Board Advisor. It was after a review of the business and working with and evaluating my background, skills and experience that the Board Advisor recommended my appointment,” she proudly says.
And why do the executives feel that gender diversity in the boardroom matter?
“Women often look at work differently and in many instances can see a different perspective to men with very good insights into the needs of consumers as well as development of people and business,” Zainab quips.
“Similarly, we must realise that 50% of the global population is female and since organisations produce goods and services that meet the needs to different consumers, a woman’s perspective is key and often brings a fresh, alternative perspective and insights,” she adds.
According to Susie, ACCA believes that being diverse, embracing diversity in all aspects, enhances business performance and the operation
“While gender diversity is not enough, women [and men] need to acquire the insights, education and operating experience to contribute value to a board. According to our recently released ACCA report, anecdotal evidence suggests that companies may be more positively disposed to appointing women to board positions “if
Deepa is of the view that boardroom gender diversity should be non-‐negotiable.
“We know for a fact that it adds value relevance to a firm. Recent researches indicate that firms that promote equality appear to benefit more from boardroom gender diversity. Further on average, shareholders seem to value additions of female directors more than they value additions of male directors,” the finance manager says.
Elena Fedorova, Finance Manager - Brewer Smith Brewer Gulf Chartered Architects
For Elena, “boards could enhance their effectiveness by using broader talent pools for their directors.”
“The board diversity is about combining alternative views that lead to the better board decisions. I believe that companies with a strong female representation at board and top management level perform better that
those without,” she says.
At the same time, what can female candidates who are interested in serving on a corporate board do to increase their visibility?
Increasing visibility is all about credibility, strong leadership skills and being a decision-‐maker,
“It is also important to play a part in the boardroom dynamics and be part of the team, so the ability to work with peers in this process, for the same goal, is essential. Someone with a boardroom position often has to take the ‘helicopter view’ and look to the wider issues, to enable a business to grow and develop,” she adds.
The same sentiments were echoed by Zainab, who said that women need to make themselves
WOMEN IN FINANCE
28 March 2013
ventures. The Group is a diversified family business with a 50 year history if successful business in the UAE.
“We implemented a Holdings structure two years ago with the appointment of an external Board Advisor. It was after a review of the business and working with and evaluating my background, skills and experience that the Board Advisor recommended my appointment,” she proudly says.
And why do the executives feel that gender diversity in the boardroom matter?
“Women often look at work differently and in many instances can see a different perspective to men with very good insights into the needs of consumers as well as development of people and business,” Zainab quips.
“Similarly, we must realise that 50% of the global population is female and since organisations produce goods and services that meet the needs to different consumers, a woman’s perspective is key and often brings a fresh, alternative perspective and insights,” she adds.
According to Susie, ACCA believes that being diverse, embracing diversity in all aspects, enhances business performance and the operation
“While gender diversity is not enough, women [and men] need to acquire the insights, education and operating experience to contribute value to a board. According to our recently released ACCA report, anecdotal evidence suggests that companies may be more positively disposed to appointing women to board positions “if
Deepa is of the view that boardroom gender diversity should be non-‐negotiable.
“We know for a fact that it adds value relevance to a firm. Recent researches indicate that firms that promote equality appear to benefit more from boardroom gender diversity. Further on average, shareholders seem to value additions of female directors more than they value additions of male directors,” the finance manager says.
Elena Fedorova, Finance Manager - Brewer Smith Brewer Gulf Chartered Architects
For Elena, “boards could enhance their effectiveness by using broader talent pools for their directors.”
“The board diversity is about combining alternative views that lead to the better board decisions. I believe that companies with a strong female representation at board and top management level perform better that
those without,” she says.
At the same time, what can female candidates who are interested in serving on a corporate board do to increase their visibility?
Increasing visibility is all about credibility, strong leadership skills and being a decision-‐maker,
“It is also important to play a part in the boardroom dynamics and be part of the team, so the ability to work with peers in this process, for the same goal, is essential. Someone with a boardroom position often has to take the ‘helicopter view’ and look to the wider issues, to enable a business to grow and develop,” she adds.
The same sentiments were echoed by Zainab, who said that women need to make themselves
WOMEN IN FINANCE
28 March 2013
Besides the UAE, seven countries have passed legislation mandating female board representation and eight have set non-mandatory targets.
more visible and take opportunity for speaking at events, conferences and networking within the business community.
“Keeping abreast of latest knowledge and trends is also key, as business education is evolving very fast and its important women are aware of best
leadership, people management as well operational effectiveness,” she added.
Deepa on the other hand thinks it is important for women to understand and exhibit their talent and be more assertive.
their talent and grab every promotion opportunity that comes their way. They need to network and get close attention from senior management,” she says.
Serving on the boards of organisations can sometime be hectic, owing to characteristics such as excessive travel, working beyond contract hours. So do these factors intimidate women from taking up demanding board roles?
“Family commitments can be a barrier to travel. Policy makers in countries such as Sweden and Denmark have been very mindful of work life balance issues and have introduced policies to try and make the balance a little more easier,” Susie says.
According to Deepa, the biggest barrier is the so-‐called ‘double burden’ responsibility undertaken by women, that is, managing a
highly demanding job and equally running a household and family.
“For a woman, starting a family means taking a break from the workplace. More than just a perception, women themselves opt to withdraw
position. Besides, maternity leave and reduced mobility are also seen as obstructions to taking on responsible positions.”
Most of the women interviewed were of the opinion that companies should adapt mentoring, training and development guidelines to prepare high-‐achieving women in their companies for senior roles and board positions.
“While all these things should be done for all members of staff regardless of their gender, a senior position can only be achieved with the right kind of background,
Deepa feels it is imperative that companies examine the structural issues that are still preventing women from advancing at work.
“Top executives need to put emphasis on skills, capabilities, performance and results and not on time contributed. Besides policies that offer better tax breaks, maternity and paternity rights, equal pay structure need to be put in place to provide the required support to both men and women.”
On giving advice to women who want to advance in leadership positions, Deepa was straightforward in her response.
“Leaders are made through hard work,” quipped Deepa.
“There are lots of opportunities available today. One needs to be smart, keep their eyes open and grab those opportunities. Do not stop until you have achieved your goal, no matter how many hurdles and risks you may need to cross and face,” she advices.
29
WOMEN IN FINANCE
Bassam Hage, Market Leader, Ernst & Young, MENA
BUSINESS INSIGHTS
30 March 2013
RIDING THEREBOUNDErnst & Young’s Market Leader for Mena - Bassam Hage – tells Accountant Middle East that the 'Rapid-Growth Markets' remain pivotal to the hopes for sustainable global economic recovery…
How have the rapid growth markets performed in general?
A.Ernst & Young’s recent report titled; ‘Rapid-Growth Markets Forecast’ (RGM) predicts that these markets will pick up
from 4.7% in 2012 to 5.4% this year and 6.4% in 2014. These data indicate that the lull in RGM expansion which occurred in 2012 was, as hoped, a temporary phase rather than the beginning of something more enduring. We forecast that RGMs will underpin a recovery in global growth from 3% in 2012 to 4.2% in 2014.
These are impressive — and much needed — numbers, but how can the recovery be sustained?
When examining the recent histories of countries which have enjoyed sustained rapid growth, four key lessons emerge. Political stability and strong leadership is crucial, especially when augmented by a stable and prudent macroeconomic policy. High capital investment, particularly in infrastructure, is another key driver of growth; as is an open and balanced trade policy that can be adapted over time. Positive action in these four areas will lead to competitive advantage and offers countries the best route toward their shared ambition of rapid and sustainable growth.
Bassam Hage, Market Leader, Ernst & Young, MENA
BUSINESS INSIGHTS
30 March 2013
RIDING THEREBOUNDErnst & Young’s Market Leader for Mena - Bassam Hage – tells Accountant Middle East that the 'Rapid-Growth Markets' remain pivotal to the hopes for sustainable global economic recovery…
How have the rapid growth markets performed in general?
A.Ernst & Young’s recent report titled; ‘Rapid-Growth Markets Forecast’ (RGM) predicts that these markets will pick up
from 4.7% in 2012 to 5.4% this year and 6.4% in 2014. These data indicate that the lull in RGM expansion which occurred in 2012 was, as hoped, a temporary phase rather than the beginning of something more enduring. We forecast that RGMs will underpin a recovery in global growth from 3% in 2012 to 4.2% in 2014.
These are impressive — and much needed — numbers, but how can the recovery be sustained?
When examining the recent histories of countries which have enjoyed sustained rapid growth, four key lessons emerge. Political stability and strong leadership is crucial, especially when augmented by a stable and prudent macroeconomic policy. High capital investment, particularly in infrastructure, is another key driver of growth; as is an open and balanced trade policy that can be adapted over time. Positive action in these four areas will lead to competitive advantage and offers countries the best route toward their shared ambition of rapid and sustainable growth.
Growth in the three rapid-growth markets of Saudi Arabia, the UAE and Qatar remains robust, and is expected to continue in 2013 with oil prices remaining lower than earlier this year.
BUSINESS INSIGHTS
31
1.3% ECONOMIC GROWTH FORECAST OF DEVELOPED ECONOMIES IN 2013
What about the RGM’s in the Middle East?
Growth in the three rapid-‐growth markets of Saudi Arabia, the United Arab Emirates and Qatar remains robust, although the pace began to slow in H2 2012 and is expected to continue in 2013 with oil prices remaining lower than earlier this year. But the region is benefiting from expansionary fiscal policy, facilitated by healthy public finances, the high absolute level of oil prices and rising oil production. Monetary policy is also accommodative. External factors are favourable, too, because their trade is orientated toward faster growing Asian markets rather than the Eurozone. Even so,
these RGMs have not been immune to the Eurozone crisis or to weak US growth.
What are the trends that you see in the RGMs?
First is the mounting attraction of consumer demand in emerging markets, where surging prosperity and expanding middle classes add to the breadth and scale of internal consumption. Second is the opportunity arising as investment — by the private and public sectors alike —
there is the likely tendency of investment to
and structural adjustment help accelerate growth. Such a trend creates incentives for policy-‐makers to innovate in search of better
thereby triggering a virtuous spiral.
What should policy makers in the RGM consider to help their economies sustain its momentum?
In plotting a course for the future, RGMs policy makers should focus on four key factors that have driven the development paths of the past: political stability and strong political leadership; stable and prudent macroeconomic policy; high capital investment; and following an open and well balanced trade policy and adapting it over time as the global marketplace changes.
How do you see developed markets doing?
Unlike the RGMs, the developed economies are not expected to contribute initially to the pickup in global economic momentum: in 2013, growth of just 1.3% is forecast, unchanged from 2012. It will not be until 2014 that the advanced economies gain further momentum, with growth expected to nearly double to 2.5%, as Japan and the Eurozone pull slowly out of recession.
Both Japan and the Eurozone ended 2012 in recession and recovery in 2013 is expected to be weak and heavily dependent on the anticipated
Bassam Hage is Ernst & Young’s Markets Leader for the Middle East and North Africa (Mena). In this role, Bassam is responsible for executing the organisation’s growth strategy across all service lines, priority sectors and countries throughout the region. He has
manufacturing, trading, real estate, telecommunication and hospitality. He became Managing Partner of Ernst & Young, Abu Dhabi in 2003 and carried that role until his appointment as Mena Markets Leader in October 2011.
The dynamics of the global economy have changed with a new set of fast-growing markets challenging the position of the established advanced economies.
32 March 2013
BUSINESS INSIGHTS
upturn in world trade to offset subdued domestic demand. Much the same is true of the UK. Monetary policy in developed countries
squeeze in Europe and force down the value of the yen in Japan.
growth visible. More progress has been made
and consumers than in the UK and Europe, and consequently monetary policy has been more effective at stimulating growth.
Lending growth is stronger than in the UK and
clear signs of recovery. This will help boost construction output and consumer spending via wealth effects. Other factors in the US economy’s favour include its high degree of international competitiveness and the “shale gas revolution”
for energy.
The quarterly Ernst & Young ‘Rapid Growth Markets’
practical and accessible economic forecasts and insights on the development in a list of 25 rapid growth countries around the world.
The study is a macroeconomic forecast co-‐produced with Oxford Economics, and the
criteria – they should be large, both in terms of GDF and demographics, they should be dynamic, rapidly growing countries and of strategic importance for business development.
The forecast is based on Oxford Economics Global Econometric Model and provides analysis of the implications for corporations doing
33
EMEIA ASIA-PACIFIC AMERICAS
Czech Republic
Egypt
Ghana
India
Kazakhstan
Nigeria
Poland
Qatar
Russia
Saudi Arabia
South Africa
Turkey
UAE
Ukraine
Greater China
(including Hong Kong)
Indonesia
Malaysia
South Korea
Thailand
Vietnam
Argentina
Brazil
Chile
Columbia
Mexico
BUSINESS INSIGHTS
business in rapid growth markets and gives recommendations for decision-‐makers.
The dynamics of the global economy have changed with a new set of fast-‐growing markets challenging the position of the established advanced economies. Taken together, Rapid Growth Markets (RGM) have grown on average by 5.4% a year over the last decade, more than three times as fast as the advanced economies, and this fast pace of growth is set to continue, with growth in RGM outpacing the advanced economies by nearly 3.5% over the 10 years to 2020.
Also, RGM will account for 50% of global GDP by 2020, when measured at purchasing power parity. They will also account for 38% of world
capital investment.
The report is a selection of the top 25 of RGM based on their;
(i) proven strong growth and future potential
(ii) size of economy and population
(iii) strategic importance for business. A separate national forecast and associated commentary is included for all 25 countries, listed below.
The four MENA countries included in the RGM are Egypt, Qatar, Saudi Arabia and the UAE.
The main forecast as well as the country pages includes outlooks on: trade,
rates, commodity prices, world price of manufactured goods and Foreign Direct Investments (FDI) inf lows. The report also provides commentary on the implications of the forecast for business.
The growth in the Middle Eastern RGMs is
region moderate, allowing oil prices to fall. Despite a lower oil price, growth in the Middle
Growth in the three rapid-‐growth markets of the GCC, Saudi Arabia, the United Arab
The GCC region is benefiting from expansionary fiscal policy, facilitated by healthy public finances, the high absolute level of oil prices and rising oil production.
Bassam Hage is Ernst & Young’s Markets Leader for the Middle East and North Africa (Mena). In this role, Bassam is responsible for executing the organisation’s growth strategy across all service lines, priority sectors and countries throughout the region. He has
manufacturing, trading, real estate, telecommunication and hospitality. He became Managing Partner of Ernst & Young, Abu Dhabi in 2003 and carried that role until his appointment as Mena Markets Leader in October 2011.
The dynamics of the global economy have changed with a new set of fast-growing markets challenging the position of the established advanced economies.
32 March 2013
BUSINESS INSIGHTS
upturn in world trade to offset subdued domestic demand. Much the same is true of the UK. Monetary policy in developed countries
squeeze in Europe and force down the value of the yen in Japan.
growth visible. More progress has been made
and consumers than in the UK and Europe, and consequently monetary policy has been more effective at stimulating growth.
Lending growth is stronger than in the UK and
clear signs of recovery. This will help boost construction output and consumer spending via wealth effects. Other factors in the US economy’s favour include its high degree of international competitiveness and the “shale gas revolution”
for energy.
The quarterly Ernst & Young ‘Rapid Growth Markets’
practical and accessible economic forecasts and insights on the development in a list of 25 rapid growth countries around the world.
The study is a macroeconomic forecast co-‐produced with Oxford Economics, and the
criteria – they should be large, both in terms of GDF and demographics, they should be dynamic, rapidly growing countries and of strategic importance for business development.
The forecast is based on Oxford Economics Global Econometric Model and provides analysis of the implications for corporations doing
33
EMEIA ASIA-PACIFIC AMERICAS
Czech Republic
Egypt
Ghana
India
Kazakhstan
Nigeria
Poland
Qatar
Russia
Saudi Arabia
South Africa
Turkey
UAE
Ukraine
Greater China
(including Hong Kong)
Indonesia
Malaysia
South Korea
Thailand
Vietnam
Argentina
Brazil
Chile
Columbia
Mexico
BUSINESS INSIGHTS
business in rapid growth markets and gives recommendations for decision-‐makers.
The dynamics of the global economy have changed with a new set of fast-‐growing markets challenging the position of the established advanced economies. Taken together, Rapid Growth Markets (RGM) have grown on average by 5.4% a year over the last decade, more than three times as fast as the advanced economies, and this fast pace of growth is set to continue, with growth in RGM outpacing the advanced economies by nearly 3.5% over the 10 years to 2020.
Also, RGM will account for 50% of global GDP by 2020, when measured at purchasing power parity. They will also account for 38% of world
capital investment.
The report is a selection of the top 25 of RGM based on their;
(i) proven strong growth and future potential
(ii) size of economy and population
(iii) strategic importance for business. A separate national forecast and associated commentary is included for all 25 countries, listed below.
The four MENA countries included in the RGM are Egypt, Qatar, Saudi Arabia and the UAE.
The main forecast as well as the country pages includes outlooks on: trade,
rates, commodity prices, world price of manufactured goods and Foreign Direct Investments (FDI) inf lows. The report also provides commentary on the implications of the forecast for business.
The growth in the Middle Eastern RGMs is
region moderate, allowing oil prices to fall. Despite a lower oil price, growth in the Middle
Growth in the three rapid-‐growth markets of the GCC, Saudi Arabia, the United Arab
The GCC region is benefiting from expansionary fiscal policy, facilitated by healthy public finances, the high absolute level of oil prices and rising oil production.
REAL GDP GROWTH
34 March 2013
BUSINESS INSIGHTS
Emirates and Qatar, remains robust, although the pace began to slow in H2 2012 and is expected to continue in 2013 with oil prices remaining lower than earlier this year. But the region is benefiting from expansionary fiscal policy, facilitated by healthy public finances, the high absolute level of oil prices and rising oil production.
Monetary policy is also accommodative. External factors are favourable, too, because their trade is orientated toward faster growing Asian markets rather than the Eurozone. Even so, these RGMs have not been immune to the Eurozone crisis or to weak US growth: capital inf lows have fallen, and longer-‐term bank lending is down.
The RGMs in the GCC face some longer-‐term problems. Non-‐oil fiscal deficits are rising because of a surge in government spending, particularly on wages, other social benefits and subsidies following the Arab Spring.
This leaves these countries vulnerable to a fall in global oil prices and energy demand. The Ernst & Young model suggests that even with an oil price of $105.2pb in 2013, Saudi Arabia’s budget surplus will plummet to less than 4% of GDP, from almost 10% estimated in 2012. (But Saudi Arabia, like the UAE, has substantial external assets which would cushion the economy from oil-‐price shocks.) A further challenge for the medium term is the need to generate jobs for a young and rapidly growing population, with rising expectations to match.
Qatar’s growth rate is expected to slow from 6.0% in 2012 to 5.5% in 2013 on lower oil and gas output, in part due to the moratorium on further liquefied natural gas (LNG) expansion. In the medium term, the economy is expected to grow in excess of 6%, driven by robust government spending and strong commodities exports, particularly to Asia. Saudi Arabia’s growth is also expected to slow, from 6.8% in 2012 to 4.1% in 2013, largely due to weaker oil prices.
In contrast, the UAE is expected to see growth picking up from 3.3% in 2012 to 3.7% in 2013 as the key crisis-‐hit property and financial sectors continue to recover and global headwinds moderate.
Preliminary agreement on a $4.8 billion IMF loan and the implementation of a national economic plan has been reached. The deal is likely to unlock other
and the Egyptian pound, accelerate much-‐needed economic reforms and act as an anchor for prudent policies.
Fiscal austerity is likely to see substantial cuts in fuel subsidies and a hike in the sales tax. Such measures are designed to help cut the budget
estimated 11% of GDP in 2011-‐12.
Growth prospects remain weak. We forecast GDP to be little changed from last year at 2.1% in 2012-‐13. Prospects are constrained by political uncertainty, the Eurozone crisis, the poor near-‐term outlook
effects. And there are substantial downside risks to our growth forecasts.
These include renewed political instability,
slippage. In addition, there are geopolitical risks,
the Eurozone — Egypt’s major trading partner.
REAL GDP GROWTH
34 March 2013
BUSINESS INSIGHTS
Emirates and Qatar, remains robust, although the pace began to slow in H2 2012 and is expected to continue in 2013 with oil prices remaining lower than earlier this year. But the region is benefiting from expansionary fiscal policy, facilitated by healthy public finances, the high absolute level of oil prices and rising oil production.
Monetary policy is also accommodative. External factors are favourable, too, because their trade is orientated toward faster growing Asian markets rather than the Eurozone. Even so, these RGMs have not been immune to the Eurozone crisis or to weak US growth: capital inf lows have fallen, and longer-‐term bank lending is down.
The RGMs in the GCC face some longer-‐term problems. Non-‐oil fiscal deficits are rising because of a surge in government spending, particularly on wages, other social benefits and subsidies following the Arab Spring.
This leaves these countries vulnerable to a fall in global oil prices and energy demand. The Ernst & Young model suggests that even with an oil price of $105.2pb in 2013, Saudi Arabia’s budget surplus will plummet to less than 4% of GDP, from almost 10% estimated in 2012. (But Saudi Arabia, like the UAE, has substantial external assets which would cushion the economy from oil-‐price shocks.) A further challenge for the medium term is the need to generate jobs for a young and rapidly growing population, with rising expectations to match.
Qatar’s growth rate is expected to slow from 6.0% in 2012 to 5.5% in 2013 on lower oil and gas output, in part due to the moratorium on further liquefied natural gas (LNG) expansion. In the medium term, the economy is expected to grow in excess of 6%, driven by robust government spending and strong commodities exports, particularly to Asia. Saudi Arabia’s growth is also expected to slow, from 6.8% in 2012 to 4.1% in 2013, largely due to weaker oil prices.
In contrast, the UAE is expected to see growth picking up from 3.3% in 2012 to 3.7% in 2013 as the key crisis-‐hit property and financial sectors continue to recover and global headwinds moderate.
Preliminary agreement on a $4.8 billion IMF loan and the implementation of a national economic plan has been reached. The deal is likely to unlock other
and the Egyptian pound, accelerate much-‐needed economic reforms and act as an anchor for prudent policies.
Fiscal austerity is likely to see substantial cuts in fuel subsidies and a hike in the sales tax. Such measures are designed to help cut the budget
estimated 11% of GDP in 2011-‐12.
Growth prospects remain weak. We forecast GDP to be little changed from last year at 2.1% in 2012-‐13. Prospects are constrained by political uncertainty, the Eurozone crisis, the poor near-‐term outlook
effects. And there are substantial downside risks to our growth forecasts.
These include renewed political instability,
slippage. In addition, there are geopolitical risks,
the Eurozone — Egypt’s major trading partner.
GOVERNMENT BUDGET BALANCE
REAL GDP GROWTH
INFLATION
35
BUSINESS INSIGHTS
Bright medium-‐term outlook
data also showed lower oil output and an increasing reliance on government spending and the non-‐oil sector, following the completion of most of the planned expansion in the Liquefied Natural Gas sector. Growth is expected to slow to 5.5% in 2013 on lower oil and gas output.
Inf lation is expected to rise from current levels to average 3.5% in 2013. Rentals will continue to rise as the housing over-‐supply diminishes (and the country gears up to host the 2022 FIFA World Cup) — and given that the measurement of rentals is skewed toward new contracts.
pay rises (typically of 60%) and pension increases,
rising population and low interest rates.
In the medium term, we expect the economy
government spending and strong commodities exports, particularly to Asia.
Steady growth in oil/non-‐oil sectors
Qatar has endured slowing growth, a continuing reliance on oil and gas, and a worryingly sharp
However, rating agency S&P has reaffirmed the country’s sovereign credit rating of AA with a
fiscal finances, it’s very high GDP per capita
this rating.
Economic data for H1 2012 shows that the pace of GDP growth slowed to 6.5%. The
REAL GDP GROWTH
REAL GDP GROWTH
CURRENT ACCOUNT BALANCE
BUSINESS INSIGHTS
36 March 2013
Oil/non-‐oil growth to pick up in 2014
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POLICING THE BOOKSColonel Saif Mohammed Saif Bin Abed Al Muhairi tells Joyce Njeri how he combines his accounting work with law enforcement duties...
FEW ACCOUNTANTS can be able to juggle a pen and a calculator on one hand with a .22 Magnum Pug Mini-Revolver firearm, on the
other. But for Colonel Saif Mohammed Saif bin Abed Al Muhairi, that constitutes his everyday work formula.
In an interview with Accountant Middle East, Bin Abed draws parallels between police work and accounting, saying that while the two
“The two continue to face the ever growing
with other regulators such as auditors and
accountant can deal with fraud as effectively as
According to the Colonel, recent happenings in
with converged accounting standards, taxation,
“While law enforcement and accounting may seem distantly unrelated, they have similarities in more ways than one. The two have taken a global perspective and continue to face the ever growing burden of fraud.”
PERSONALITY & PRACTICE
38 March 2013
PERSONALITY & PRACTICE
39
POLICING THE BOOKSColonel Saif Mohammed Saif Bin Abed Al Muhairi tells Joyce Njeri how he combines his accounting work with law enforcement duties...
FEW ACCOUNTANTS can be able to juggle a pen and a calculator on one hand with a .22 Magnum Pug Mini-Revolver firearm, on the
other. But for Colonel Saif Mohammed Saif bin Abed Al Muhairi, that constitutes his everyday work formula.
In an interview with Accountant Middle East, Bin Abed draws parallels between police work and accounting, saying that while the two
“The two continue to face the ever growing
with other regulators such as auditors and
accountant can deal with fraud as effectively as
According to the Colonel, recent happenings in
with converged accounting standards, taxation,
“While law enforcement and accounting may seem distantly unrelated, they have similarities in more ways than one. The two have taken a global perspective and continue to face the ever growing burden of fraud.”
PERSONALITY & PRACTICE
38 March 2013
PERSONALITY & PRACTICE
39
can say that preventing corporate fraud in the office is the same as managing fraud in the streets,” he adds.
greater satisfaction policing the books rather than chasing and investigating criminals in the streets of Dubai.
“I knew I wanted to become an accountant since my early school days. As a young Emirati boy I wasn’t like the majority of other students who had no idea what they were going to study for,” he says with a wide grin.
“In 1986 I joined the Emirates University where I majored in Finance. My core studies included accounting, auditing, investment
“I knew I wanted to become an accountant since my early school days. As a young Emirati boy I wasn’t like the majority of other students who had no idea what they were going to study for.”
banking and insurance. Upon graduating, I was employed by the Dubai Police in the internal audit department. Over the years I moved in different divisions within the Force until I finally became the Director of the Finance department, which is my current position,” the cop says.
He credits his accounting background as pivotal to his police job. Now as the Director of Finance, Bin Abed feels like he’s come full circle.
In March 2012, he was appointed to head the UAE’s Accountants and Auditors Association (AAA) as chairman, a responsibility he says
THE COP ACCOUNTANT:
An accountant can deal with fraud as effectively as the police, Colonel Bin Abed says
40 March 2013
PERSONALITY & PRACTICE
41
he ardently enjoys. The body, locally known as ‘Triple A’ is tasked with the promotion and development of accounting profession in the UAE.
“At Triple A, my duties mainly entail representing the association before the official authorities in the country and abroad, chairing the meetings of the General Assembly, and driving the agenda of the association in tandem with the strategy and vision adopted by the board of directors,” he says.
“I enjoy the camaraderie that I share with my fellow accountants at various interest group meetings that we frequently hold,” he
proudly says, citing in particular the recent milestone where he was instrumental at forming a new joint professional task force.
Late last year, heads and regional directors of seven major audit associations and accounting professional bodies unanimously agreed to launch the joint action task force, to help in fostering better relationships.
“I was extremely delighted that this joint working group was formed. There are a number of issues that were discussed and the task force agreed to take upon itself to tackle them expeditiously,” Bin Abed said at the time.
PERSONALITY & PRACTICE
can say that preventing corporate fraud in the office is the same as managing fraud in the streets,” he adds.
greater satisfaction policing the books rather than chasing and investigating criminals in the streets of Dubai.
“I knew I wanted to become an accountant since my early school days. As a young Emirati boy I wasn’t like the majority of other students who had no idea what they were going to study for,” he says with a wide grin.
“In 1986 I joined the Emirates University where I majored in Finance. My core studies included accounting, auditing, investment
“I knew I wanted to become an accountant since my early school days. As a young Emirati boy I wasn’t like the majority of other students who had no idea what they were going to study for.”
banking and insurance. Upon graduating, I was employed by the Dubai Police in the internal audit department. Over the years I moved in different divisions within the Force until I finally became the Director of the Finance department, which is my current position,” the cop says.
He credits his accounting background as pivotal to his police job. Now as the Director of Finance, Bin Abed feels like he’s come full circle.
In March 2012, he was appointed to head the UAE’s Accountants and Auditors Association (AAA) as chairman, a responsibility he says
THE COP ACCOUNTANT:
An accountant can deal with fraud as effectively as the police, Colonel Bin Abed says
40 March 2013
PERSONALITY & PRACTICE
41
he ardently enjoys. The body, locally known as ‘Triple A’ is tasked with the promotion and development of accounting profession in the UAE.
“At Triple A, my duties mainly entail representing the association before the official authorities in the country and abroad, chairing the meetings of the General Assembly, and driving the agenda of the association in tandem with the strategy and vision adopted by the board of directors,” he says.
“I enjoy the camaraderie that I share with my fellow accountants at various interest group meetings that we frequently hold,” he
proudly says, citing in particular the recent milestone where he was instrumental at forming a new joint professional task force.
Late last year, heads and regional directors of seven major audit associations and accounting professional bodies unanimously agreed to launch the joint action task force, to help in fostering better relationships.
“I was extremely delighted that this joint working group was formed. There are a number of issues that were discussed and the task force agreed to take upon itself to tackle them expeditiously,” Bin Abed said at the time.
PERSONALITY & PRACTICE
CAMARADERIE:
Colonel Saif Mohammed Saif Bin Abed Al Muhairi presents a memento to Vernon Soare, the Executive Director of Professional Standards at the Institute of Chartered Accountants in England and Wales (ICAEW). On the left is Peter Beynon, ICAEW’s Middle East Regional Director.
42 March 2013
PERSONALITY & PRACTICE
promoting the integrity of an accountant, and the necessity of objectivity and independence in the auditing institution,” he explains.
“Accountants, being the people that understand
organisations, have a direct impact on the current and future strategic plans of companies.”
“Therefore it is imperative that both the private and public sector get updated on the new standards and auditing techniques and accounting forensics to minimise reporting mistakes in the future. Corporates should also invest in experienced professional accountants with a high level of integrity, and should build a strong internal audit unit that performs its role in an independent manner,” he advices.
And how does he juggle his accounting duties at ‘Triple A’ with his police career?
“I take it all in my stride. My work in the Police Force
association, the responsibility is on voluntary basis and focuses mainly on technical accounting,” he says.
“However, the two roles are sort of similar in many ways in terms of planning, supervising, evaluating, implementation and development of projects.”
His parting shot?
“I may wear different caps, literally, but as a police accountant, I greatly value the honour of going to work every day to do what I enjoy most,” he adds.
CALL OF DUTY:
“I may wear different caps, literally, but as a police accountant, I greatly value the honour of going to work every day to do what I enjoy most.”
43
PERSONALITY & PRACTICE
CAMARADERIE:
Colonel Saif Mohammed Saif Bin Abed Al Muhairi presents a memento to Vernon Soare, the Executive Director of Professional Standards at the Institute of Chartered Accountants in England and Wales (ICAEW). On the left is Peter Beynon, ICAEW’s Middle East Regional Director.
42 March 2013
PERSONALITY & PRACTICE
promoting the integrity of an accountant, and the necessity of objectivity and independence in the auditing institution,” he explains.
“Accountants, being the people that understand
organisations, have a direct impact on the current and future strategic plans of companies.”
“Therefore it is imperative that both the private and public sector get updated on the new standards and auditing techniques and accounting forensics to minimise reporting mistakes in the future. Corporates should also invest in experienced professional accountants with a high level of integrity, and should build a strong internal audit unit that performs its role in an independent manner,” he advices.
And how does he juggle his accounting duties at ‘Triple A’ with his police career?
“I take it all in my stride. My work in the Police Force
association, the responsibility is on voluntary basis and focuses mainly on technical accounting,” he says.
“However, the two roles are sort of similar in many ways in terms of planning, supervising, evaluating, implementation and development of projects.”
His parting shot?
“I may wear different caps, literally, but as a police accountant, I greatly value the honour of going to work every day to do what I enjoy most,” he adds.
CALL OF DUTY:
“I may wear different caps, literally, but as a police accountant, I greatly value the honour of going to work every day to do what I enjoy most.”
43
PERSONALITY & PRACTICE
DIFFERENT DIMENSIONS
44 March 2013
WHATDRIVES
DURDANA?Having started o! her career as an auditor at
KPMG, the Course Director of DSR Professional Training JLT tells Accountant Middle East how she
discovered her hidden passion for teaching...
COMMUNICATIONS MANAGER,DSR PROFESSIONAL TRAINING JLT
IANA TZVETKOVA
FINANCIAL LITERACY is a necessary tool in the toolbox of all sensible modern individuals, whether enabling a person to use credit responsibly,
confidently manage their finances or develop a responsible attitude towards financial planning.
DIFFERENT DIMENSIONS
45
DIFFERENT DIMENSIONS
44 March 2013
WHATDRIVES
DURDANA?Having started o! her career as an auditor at
KPMG, the Course Director of DSR Professional Training JLT tells Accountant Middle East how she
discovered her hidden passion for teaching...
COMMUNICATIONS MANAGER,DSR PROFESSIONAL TRAINING JLT
IANA TZVETKOVA
FINANCIAL LITERACY is a necessary tool in the toolbox of all sensible modern individuals, whether enabling a person to use credit responsibly,
confidently manage their finances or develop a responsible attitude towards financial planning.
DIFFERENT DIMENSIONS
45
“Within a few months I went on to head the department of strategic management and was involved in the transition of the bank from the last millennium into the new one, through Project 2000. This involved many initiatives, including new ways of serving customers, new IT systems, new modernised branch structures which were very prominent
management department.”
While the job offered much of what she hoped for, it also presented personal challenges.
“I was involved in the restructuring of the bank and I found it quite painful because restructuring meant a lot of people were laid off and I thought to myself, this is not what I want to do for the rest of my life, be responsible for people losing their jobs, families losing their homes and people leaving the country – it’s quite severe.”
With this in mind, Durdana quit her job with UNB and the family moved to Dubai. Teaching hadn’t been something Durdana considered as a career, though her friends, family and colleagues would agree that her charisma and drive made her a natural leader in any setting. It was through a serendipitous coincidence that, shortly after arriving in Dubai, she was asked to help out at Higher Colleges of Technology (HCT) when a substitute was needed.
“There weren’t that many MBAs running around at that time who could step up to do it, so I did. And once I started teaching, I was bitten! I thought, this is what I want to do, to see those faces light – it’s that wonderful ‘Aha!’ moment when they understand. It was the exact opposite of being involved in demolishing things and
The realisation was swift and satisfying – Durdana Rizvi would become a teacher.
spent at the Higher Colleges of Technology, Dubai
and strategic management. However, the urge to develop and progress which fuelled Durdana’s many successes in the corporate world, was beginning to grow stronger and make her restless. The experiences in higher learning showed her that the academe was simply stretching itself too thin.
“The subjects students cover are very wide, but they’re not very deep, so when people major in any
46 March 2013
DIFFERENT DIMENSIONS
“Within a few months I went on to head the department of strategic management and was involved in the transition of the bank from the last millennium into the new one, through Project 2000. This involved many initiatives, including new ways of serving customers, new IT systems, new modernised branch structures which were very prominent
management department.”
While the job offered much of what she hoped for, it also presented personal challenges.
“I was involved in the restructuring of the bank and I found it quite painful because restructuring meant a lot of people were laid off and I thought to myself, this is not what I want to do for the rest of my life, be responsible for people losing their jobs, families losing their homes and people leaving the country – it’s quite severe.”
With this in mind, Durdana quit her job with UNB and the family moved to Dubai. Teaching hadn’t been something Durdana considered as a career, though her friends, family and colleagues would agree that her charisma and drive made her a natural leader in any setting. It was through a serendipitous coincidence that, shortly after arriving in Dubai, she was asked to help out at Higher Colleges of Technology (HCT) when a substitute was needed.
“There weren’t that many MBAs running around at that time who could step up to do it, so I did. And once I started teaching, I was bitten! I thought, this is what I want to do, to see those faces light – it’s that wonderful ‘Aha!’ moment when they understand. It was the exact opposite of being involved in demolishing things and
The realisation was swift and satisfying – Durdana Rizvi would become a teacher.
spent at the Higher Colleges of Technology, Dubai
and strategic management. However, the urge to develop and progress which fuelled Durdana’s many successes in the corporate world, was beginning to grow stronger and make her restless. The experiences in higher learning showed her that the academe was simply stretching itself too thin.
“The subjects students cover are very wide, but they’re not very deep, so when people major in any
46 March 2013
DIFFERENT DIMENSIONS
47
Teaching hadn’t been something Durdana considered as a career, though her friends, family and colleagues would agree that her charisma and drive made her a natural leader in any setting.
one subject, say accounting, the number of accounting courses they do and the depth that they go into is very little,” says Durdana.
“I had a very strong feeling that there was a gap between what the academic institutions were giving to the students in the UAE and what the workplace required and when I became cognizant of that fact I decided that I had to try and bridge that gap.”
A thorough needs-‐analysis of the market compared to the skills and knowledge students were getting in higher education institutions showed there to be a disparity.
about changes in HCT because the college is part of a mammoth system and I didn’t have much control,” she laments.
The idea of having something all her own, a place where she could teach exactly what she knew to be missing, began with a pilot project – a partnership between Durdana and the then-‐director of HCT – which they called the Financial Training Centre at Dubai Men’s College (FTC@DMC).
“It was an immediate success, our classes were full and there was a long waitlist.”
Due to logistical problems the programme was however, unable to continue, and the team honoured the commitment to the students before successfully closing the centre.
“Then I came to JLT, found the premises that would become our school, and built DSR,” she adds, with a tinge of pride in her voice.
There’s an undeniable pride with which Durdana described her happiness at how well everything’s turned out. With classes full and smiling students walking through the doors, DSR has become the incarnation of Durdana’s teaching ideology: a Learning Majlis. As a pillar of Emirati culture, the
LIFELONG PASSION:
Durdana Saiyid Rizvi, is stepping up to the challenge of providing professionals seeking professional
development.
DIFFERENT DIMENSIONS
concept of the Majlis – meaning ‘place of sitting’ in Arabic – is vital to the essence and success of DSR. Everything about it has been designed with a singular thought in mind – that it has to be as inviting and pleasant an environment as possible.
In line with DSR’s mandate to bridge the gap between what the academic institutions are providing and what the market really needs is the goal of providing their students with an education in a fun and attractive environment where they enjoy what they’re learning.
“The culture that we’ve developed within the organisation is to embrace the students, give them a great learning experience, and help them reach their full potential. We have small classes and our
differentiated attention that students need to succeed. I want this to be a place where people want to come. I certainly do!” says Durdana.
With the doors of DSR opening on December 4
get everything off the ground. The cornerstone of Durdana’s educational philosophy is to provide the highest quality education, so naturally she insisted that DSR must offer an internationally recognised
Learning with the Institute of Chartered Accountants in England and Wales (ICAEW). Moreover, they
are in the process of becoming a Gold Approved
While success goes hand-‐in-‐hand with ambition, Durdana is conscious of the need to be unhurried with the development of DSR, choosing to start one thing and developing it to its fullest before moving on.
“We’ve accomplished so much in so little time; we are
to move on to the next level,” says Durdana.
programme and this year we’re going to spend on further developing our ACCA programme and maybe
Based on the satisfaction of the students and the quality of accountants DSR has produced thus
development should happen at all levels of an institution and Durdana values the importance of having teachers who are just as dedicated to their students as the students are to their studies. Earlier in the year three DSR instructors travelled to London for the 2013 ICAEW Tutor Conference for just this reason.
We attended the conference to interact with the
looking for. That was an important initiative towards improving our own standards, improving how we teach and showing our commitment to improving any which way that we can.”
Unsurprisingly, the support from family, friends and colleagues has made an impact on how smoothly the
“The culture that we’ve developed within the organisation is to embrace the students, give them a great learning experience, and help them reach their full potential.”
48 March 2013
DIFFERENT DIMENSIONS
concept of the Majlis – meaning ‘place of sitting’ in Arabic – is vital to the essence and success of DSR. Everything about it has been designed with a singular thought in mind – that it has to be as inviting and pleasant an environment as possible.
In line with DSR’s mandate to bridge the gap between what the academic institutions are providing and what the market really needs is the goal of providing their students with an education in a fun and attractive environment where they enjoy what they’re learning.
“The culture that we’ve developed within the organisation is to embrace the students, give them a great learning experience, and help them reach their full potential. We have small classes and our
differentiated attention that students need to succeed. I want this to be a place where people want to come. I certainly do!” says Durdana.
With the doors of DSR opening on December 4
get everything off the ground. The cornerstone of Durdana’s educational philosophy is to provide the highest quality education, so naturally she insisted that DSR must offer an internationally recognised
Learning with the Institute of Chartered Accountants in England and Wales (ICAEW). Moreover, they
are in the process of becoming a Gold Approved
While success goes hand-‐in-‐hand with ambition, Durdana is conscious of the need to be unhurried with the development of DSR, choosing to start one thing and developing it to its fullest before moving on.
“We’ve accomplished so much in so little time; we are
to move on to the next level,” says Durdana.
programme and this year we’re going to spend on further developing our ACCA programme and maybe
Based on the satisfaction of the students and the quality of accountants DSR has produced thus
development should happen at all levels of an institution and Durdana values the importance of having teachers who are just as dedicated to their students as the students are to their studies. Earlier in the year three DSR instructors travelled to London for the 2013 ICAEW Tutor Conference for just this reason.
We attended the conference to interact with the
looking for. That was an important initiative towards improving our own standards, improving how we teach and showing our commitment to improving any which way that we can.”
Unsurprisingly, the support from family, friends and colleagues has made an impact on how smoothly the
“The culture that we’ve developed within the organisation is to embrace the students, give them a great learning experience, and help them reach their full potential.”
48 March 2013
DIFFERENT DIMENSIONS
“My husband is extremely supportive. He’s an ICAEW FCA and he’s been helping us with keeping our books and he’s always there to advise and give support. My elder son, who’s doing his ACA at the moment, has also been an amazing support. And I’m very proud of my youngest who will be starting at Ernst and Young in June after his graduation. I consider myself very lucky.”
Furthermore, having to shift gears regularly between teaching obligations and the responsibilities for the everyday running of a business also means that the team which Durdana has put together, is one that she trusts completely to do their jobs competently in her absence.
“Our Programme Manager, Jehan Shibli, has done an amazing job with our students and especially of taking a lot of responsibilities off my hands. I couldn’t give it up so easily because I want to have that personal contact.”
Despite a growing list of duties and responsibilities, that personal connection with the students is still one of the most important and rewarding features of the job. While the commercial interest is an important aspect of running a business, the focus of DSR is still heavily on providing a quality education.
“I always feel that if the value you provide to a customer is higher, then the price they are paying you will sell. So the difference between the value to the customer and the price is what makes you special, what will get people to come to you,” says Durdana.
“On the other hand, the difference between the selling price and the cost is your profit. So the difference between the value to the customer and the price I charge is huge, and that is the critical success factor of DSR.”
The value of the education Emirati students are
in large part to the rapport that she has developed with them through a decade of dedication and learning that began at HCT.
“I am able to bring together discipline and caring. The thing is – if you’re tough and you don’t care, you will have a rebellion. But if you’re caring students will take a lot of toughness from you.”
The care which students are shown and the understanding of their personal predicaments, circumstances, and culture are particularly important when trying to balance the Western and Eastern values and cultures which tessellate so frequently in this country.
“I have that balance and that makes me successful with my students – they will take a fair amount of rigor and discipline from me in exchange for my understanding.”
Students at DSR cover a wide range of backgrounds, levels of experience and age. To a typical teacher this might pose a challenge, but for Durdana it came as an opportunity to observe and encourage the development of softer skills which she believes have created well-‐rounded, cooperative individuals.
the two became best friends. The younger one was studying in university so he brought in really good technical skills in accounting while the older one, the COO of a branch of HSBC, brought in an amazing amount of experience.”
It is clear that Durdana Rizvi has stuck a comfortable balance in her role as director and course leader at DSR Professional Training JLT. The compassion, commitment and collaboration Durdana has engendered in her students, teachers and team are perfect companions to the comfortable setting of the bright and modern DSR classrooms.
BRIDGING THE GAP:
“There is a wide gap between what academic institutions are giving to the students in the UAE and what the workplace actually requires.”
49
DIFFERENT DIMENSIONS
A POPULATION boom means a huge potential workforce for the Middle East, but only if governments invest in them, according to
the Institute of Chartered Accountants in England and Wales (ICAEW).
In its latest quarterly report, the accountancy and
The study titled; ‘Economic Insight: Middle East’
POPULATION GROWTH PROJECTIONS: THE MIDDLE EAST COMPARED WITH THE WORLD AND EUROPE, 1990–2030, INDEX 1990 LEVEL = 100
Peter Beynon, ICAEW Regional Director; “The population boom means it is more important than ever to invest in education, training and skills.”
ECONOMIC INSIGHT
50 March 2013
LABOUR PAINS OR LABOUR GAINS?Middle East population boom raises risk of more unemployment, however ICAEW says growth presents more opportunities, but only with long-term investment...
52% POPULATION GROWTH IN THE MIDDLE EAST FROM UP FROM 1990 LEVELS
In Bahrain, Qatar and the UAE the population has already more than doubled since 1990. This should give the region an economic advantage by offering a growing labour supply.
slow in 2013, but still to outpace global growth as a whole thanks to resilient oil prices and booming public spending. However, rising populations should spur governments to think long-‐term about how to invest that money.”
“Some non-‐GCC countries have high unemployment, whilst lower unemployment levels in GCC nations is partly thanks to public sector jobs. If demand for crude oil slipped – for example because shale gas production took off across the globe – governments would have to cut their budgets quickly. If government remains the main driver of growth and crowds out the private sector, it could jeopardise future growth prospects.”
“Spending which results in long term productivity should therefore be a high priority. However, in the
short term the Middle East remains one of the best performing regions in the world with growth of 3.9% predicted for 2013.”
Robust economic expansion over the last few years has been driven by high oil prices and government stimulus, and further spending is planned.
Saudi Arabia has increased its government spending target by 19% from 2012 levels, with a 21% increase on education to develop the skill
plans to increase education spending by 40% year-‐on-‐year with training schemes and job creation programmes in the private sector.
A real success story is the UAE, where spending on education, community development, and youth entrepreneurship has helped contribute to GDP growth of over 4%, although continued efforts are needed to allow private sector job creation and
the IMF has recently warned Kuwait that current public spending levels are unsustainable.
Peter Beynon, ICAEW Regional Director, Middle East, said: “The population boom means it is more important than ever to invest in education, training and skills. Dubai has already started this process, Abu Dhabi has recently announced plans to invest in schools and infrastructure,
heels. This is critical for helping develop the skill base needed to diversify away from a purely hydrocarbon-‐driven economy whilst also guarding against unemployment.”
“In order for economic growth to remain sustainable, governments need to make sure that young people are developing sound professional skills they can put to use by making the Middle East a great place to do business,” he added.
UNEMPLOYMENT PROJECTIONS ACROSS SELECTED MIDDLE EAST ECONOMIES
FORECAST FOR ECONOMIC GROWTH ACROSS THE MIDDLE EAST IN 2012–14, ANNUAL PERCENTAGE CHANGE IN GDP BY COUNTRY
ECONOMIC INSIGHT
51
A POPULATION boom means a huge potential workforce for the Middle East, but only if governments invest in them, according to
the Institute of Chartered Accountants in England and Wales (ICAEW).
In its latest quarterly report, the accountancy and
The study titled; ‘Economic Insight: Middle East’
POPULATION GROWTH PROJECTIONS: THE MIDDLE EAST COMPARED WITH THE WORLD AND EUROPE, 1990–2030, INDEX 1990 LEVEL = 100
Peter Beynon, ICAEW Regional Director; “The population boom means it is more important than ever to invest in education, training and skills.”
ECONOMIC INSIGHT
50 March 2013
LABOUR PAINS OR LABOUR GAINS?Middle East population boom raises risk of more unemployment, however ICAEW says growth presents more opportunities, but only with long-term investment...
52% POPULATION GROWTH IN THE MIDDLE EAST FROM UP FROM 1990 LEVELS
In Bahrain, Qatar and the UAE the population has already more than doubled since 1990. This should give the region an economic advantage by offering a growing labour supply.
slow in 2013, but still to outpace global growth as a whole thanks to resilient oil prices and booming public spending. However, rising populations should spur governments to think long-‐term about how to invest that money.”
“Some non-‐GCC countries have high unemployment, whilst lower unemployment levels in GCC nations is partly thanks to public sector jobs. If demand for crude oil slipped – for example because shale gas production took off across the globe – governments would have to cut their budgets quickly. If government remains the main driver of growth and crowds out the private sector, it could jeopardise future growth prospects.”
“Spending which results in long term productivity should therefore be a high priority. However, in the
short term the Middle East remains one of the best performing regions in the world with growth of 3.9% predicted for 2013.”
Robust economic expansion over the last few years has been driven by high oil prices and government stimulus, and further spending is planned.
Saudi Arabia has increased its government spending target by 19% from 2012 levels, with a 21% increase on education to develop the skill
plans to increase education spending by 40% year-‐on-‐year with training schemes and job creation programmes in the private sector.
A real success story is the UAE, where spending on education, community development, and youth entrepreneurship has helped contribute to GDP growth of over 4%, although continued efforts are needed to allow private sector job creation and
the IMF has recently warned Kuwait that current public spending levels are unsustainable.
Peter Beynon, ICAEW Regional Director, Middle East, said: “The population boom means it is more important than ever to invest in education, training and skills. Dubai has already started this process, Abu Dhabi has recently announced plans to invest in schools and infrastructure,
heels. This is critical for helping develop the skill base needed to diversify away from a purely hydrocarbon-‐driven economy whilst also guarding against unemployment.”
“In order for economic growth to remain sustainable, governments need to make sure that young people are developing sound professional skills they can put to use by making the Middle East a great place to do business,” he added.
UNEMPLOYMENT PROJECTIONS ACROSS SELECTED MIDDLE EAST ECONOMIES
FORECAST FOR ECONOMIC GROWTH ACROSS THE MIDDLE EAST IN 2012–14, ANNUAL PERCENTAGE CHANGE IN GDP BY COUNTRY
ECONOMIC INSIGHT
51
Ernst & Young’s update report shows telecommunications sector topped in regional deal activity in 2012, with value of inbound transactions at $3.3 billion...
UAE, QATAR LEAD IN M&A DEALS
ANNOUNCED MERGER & acquisitions deal values in the region rose from $31.6 billion in 2011 to $44.8 billion in 2012, an increase of 42%, according to
Ernst & Young’s 2012 year-end Middle East and North Africa (Mena) update report.
Deal volume on the other hand fell by 4%, from 416 in 2011 to 398 in 2012.
4% PERCENTAGE DROP IN MENA M&A DEAL VOLUME IN 2012
Telecommunications sector led the inbound mergers & acquisitions deals in MENA region, at $3.3 billion in 2012, according to a recent Ernst & Young’s update report
52 February 2013
MERGERS & ACQUISITIONS
Ernst & Young’s update report shows telecommunications sector topped in regional deal activity in 2012, with value of inbound transactions at $3.3 billion...
UAE, QATAR LEAD IN M&A DEALS
ANNOUNCED MERGER & acquisitions deal values in the region rose from $31.6 billion in 2011 to $44.8 billion in 2012, an increase of 42%, according to
Ernst & Young’s 2012 year-end Middle East and North Africa (Mena) update report.
Deal volume on the other hand fell by 4%, from 416 in 2011 to 398 in 2012.
4% PERCENTAGE DROP IN MENA M&A DEAL VOLUME IN 2012
Telecommunications sector led the inbound mergers & acquisitions deals in MENA region, at $3.3 billion in 2012, according to a recent Ernst & Young’s update report
52 February 2013
MERGERS & ACQUISITIONS
53
“As 2013 unfolds, there is an anticipation that the improvement in deal activity in 2012 will further improve as we start to see market conditions continually improving despite the unpredictable macroeconomic landscape.”
In terms of value, outbound deals held the greatest value among total announced deals, comprising $19.4 billion, 43% of total announced deal value in 2012, compared to $15.6 billion for domestic deals and $9.9 billion for inbound deals. Domestic transactions outnumbered inbound and outbound deal activity, comprising 48% of total deals in 2012.
Total inbound announced deal value saw the largest improvement compared to 2011, increasing by 77% from $5.6 billion in 2011 to $9.9 billion in 2012. Announced domestic deal values also saw a
the decline in announced domestic deal volumes from 224 in 2011 to 190 in 2012.
“The increase that we’ve seen in deal values across all types of deals in 2012; particularly inbound deals when compared to 2011 highlights that the MENA markets still continue to remain attractive to global investors and institutions as they look to emerging markets as attractive regions for growth,” added Phil.
Oil & Gas, Professional Firms & Services and Consumer Products sectors were the most active in terms of the number of announced inbound deals. In terms of value, Telecommunications led the inbound deals at $3.3 billion due to the sole transaction of France Telecom SA buying the Egyptian Company for Mobile Services.
In terms of announced outbound deals in 2012, the Real Estate sector led in activity with 21 deals followed by Consumer Products with 13 deals. The Oil & Gas sector was highest in terms of the value of announced outbound deals at $5.7 billion followed by the Professional Firms & Services sector at $3.4 billion.
Sectors that attracted the most domestic M&A activity in 2012 in terms of volume included Real Estate, Asset Management, and Consumer Products. The Banking & Capital Markets sector had the highest value of domestic M&A deals at $5.2 billion, followed by the Telecommunications sector at $4.1 billion.
“A few deals have been completed in the Telecommunications, Oil & Gas and Banking & Capital Markets sectors which are characteristically high in value. These big ticket deals are a promising sign that markets are developing and picking up pace,” said Phil.
Of the 398 deals announced in the MENA region in 2012, 71 deals were in the SWF/PE space, an increase of 54% from the 46 deals in 2011. The 71 deals comprised $13.3 billion of the total announced deal values in 2012. The month of March saw the most activity in 2012 with 14 deals. Most of the SWF/PE deal activity was in the Real Estate sector however the highest SWF/PE deal values were in the Oil & Gas sector.
boosted the regional markets through the increasing number of transactions taking place. Much of the wealth in the region is held by SWFs -‐ which are some of the biggest in the world. Their increasing activity
markets. We expect this to push the momentum of deal activity and encourage regional investors to
more positive for the regional M&A market,” Phil said.
The slowdown in global M&A continued through 2012 as the value of deals fell by 47% to a projected $2.25 trillion from the height of the M&A boom in 2007 of $4.3 trillion and are 21% down in volume to 36,865 in 2012 from 46,701 in 2007.
Phil Gandier, MENA Head of Transaction Advisory Services, Ernst & Young.
MERGERS & ACQUISITIONS
I WANT to tell you a story (when I say that to my students their interest perks up – better than advanced variance analysis they think!).
In fact, I want to tell you three stories (now they are worried – what time will we finish!), however they are short stories (a sigh of relief around the lecture room).
As with any collection of stories we will need to have an introduction. Here in the Gulf region we have a huge variety of accountancy and finance qualifications on offer. The particular nature of the market here – East meets West -‐ and the powerful inf luence of UK, US and Indian education also has a part to play. So we have ACCA, ICAP, ICAEW, ACT, CIMA, CMA, CFA, ICAI and CPA and this list is not exhaustive. I know you are now worried that this introduction will get lengthy but it is relevant and I promise to be brief.
Powerful UK influences have led to the introduction and rapid spread of the likes of ACCA, ICAEW and CIMA. The first two are similar in that they train young people in a wide variety of accounting, business and finance skills that relevant to both accounting practice and industry – CIMA is a little different, focussing more strongly on performance and project management, budgeting and strategic business skills. This qualification thereby equips its members to make strong contributions within businesses, government
MANAGING DIRECTOR - PHOENIX FINANCIAL TRAINING
DAVID THOMASSON
AGAINST ALL ODDS
CAREER DEVELOPMENT
54 March 2013
We highlight inspiring stories of Phoenix students who have demonstrated enormous self discipline, hard work and resilience, to pursue top professional quali!cations despite demanding family, work schedules...
departments and commercial entities but does not allow them to perform external audits and sign off accounts.
In the region there is a small group of students following ICAEW, an increasing number taking up CIMA but by far the largest is in ACCA. In fact the ACCA has over 400,000 students worldwide and because of this large geographical volume and spread is seen by many as the most globally recognised and portable qualification.
Then we have the Americans! The US qualifications are popular on the back of the strength of American tertiary education in the region – think American University of Sharjah, of Dubai, of Beirut -‐ and the arguably lighter requirement of their exam regime.
Testing is more electronically driven which sometimes appeals to those for whom written English presents challenges. So we have the Certified Public Accountant (CPA), the relatively light management qualification CMA (when compared to the UK CIMA and Indian Cost and Works) and the intense, very technical but somewhat narrow CFA.
When contrasted with the UK qualifications the US counterparts are often criticised for lacking depth and breadth but this totally misunderstands their origin and purpose. It is true that when compared with the UK ACCA’s 14 paper regime the content and testing of CPA over 4 papers may look lighter. However US
Powerful UK influences have led to the introduction and rapid spread of the likes of ACCA, ICAEW and CIMA.
ROSE NJERI GIDRAPH:
schedule at Emirates
CAREER DEVELOPMENT
55
departments and commercial entities but does not allow them to perform external audits and sign off accounts.
In the region there is a small group of students following ICAEW, an increasing number taking up CIMA but by far the largest is in ACCA. In fact the ACCA has over 400,000 students worldwide and because of this large geographical volume and spread is seen by many as the most globally recognised and portable qualification.
Then we have the Americans! The US qualifications are popular on the back of the strength of American tertiary education in the region – think American University of Sharjah, of Dubai, of Beirut -‐ and the arguably lighter requirement of their exam regime.
Testing is more electronically driven which sometimes appeals to those for whom written English presents challenges. So we have the Certified Public Accountant (CPA), the relatively light management qualification CMA (when compared to the UK CIMA and Indian Cost and Works) and the intense, very technical but somewhat narrow CFA.
When contrasted with the UK qualifications the US counterparts are often criticised for lacking depth and breadth but this totally misunderstands their origin and purpose. It is true that when compared with the UK ACCA’s 14 paper regime the content and testing of CPA over 4 papers may look lighter. However US
Powerful UK influences have led to the introduction and rapid spread of the likes of ACCA, ICAEW and CIMA.
ROSE NJERI GIDRAPH:
schedule at Emirates
CAREER DEVELOPMENT
55
CPA is intended to be pursued after an intensive and demanding four year highly vocational specialised Accounting degree – the concept is in many ways similar to UK legal training.
Finally because of the huge dominance of Indian and Pakistani finance professionals in UAE businesses we see the strong influence of the Chartered qualifications of these bodies. If you find an accountant here in Dubai they are very likely to be a qualified ICAI or ICAP. Their qualifications are modelled largely on UK precedent with a long list of papers and a very tough pass rate. Some training is delivered here in the region by the Institutes themselves but the majority of those qualifying do so back home before coming to work here.
ICAEW and CIMA are now establishing a
When contrasted with the UK qualifications the US counterparts are often criticised for lacking depth and breadth but this totally misunderstands their origin and purpose.
footprint in the region but this is recent, lack of sufficient local accounting credits often make entrance into US qualifications difficult and in some cases impossible (a fact not always well understood), ICAP and ICAI by popular consent are impossible to pass!
By contrast ACCA has been here a fair while, their pass rates are sensible (average is around 40% globally, perhaps 5-‐10% less than that in the region – at Phoenix we aim for 70% -‐ and their 14 paper regime is seen as providing sufficient depth and breadth – maybe for that reason, and the huge global footprint, we see a large and growing ACCA student body in the region and it is about three of their students that I wish to talk about here;
With enormous discipline, hard work and resilience, there are students who have had to take a tougher route to membership. Take for example Rose Gidraph. Rose is a very smart young professional lady, not encumbered by the demands of her career. When we first met Rose she was working as an executive secretary but wanted to build a professional career. She did two things – firstly she made the sensible (I’ve got to be biased!) decision to pursue a professional accountancy qualification with us and secondly, in order to provide some personal and financial stability she joined Emirates Airlines Cabin Crew team.
Clearly her schedules caused complex study issues for her and we often had to accommodate re-‐arrangements in her timetable to get her into class and indeed provide extra support when she couldn’t make it. Her determination to see this through was amazing – I personally remember reprimanding her for being late into one of my evening P3 classes arriving at 7.45pm when the class started at 7pm.
Then I realised that she was still in full uniform and had her standard issue Emirates cabin bag with her – she had just done the trip from Los Angeles International Airport and had chosen to come straight into class after an 18 hour shift! I didn’t complain again and after that we often looked forward to Rose arriving a little late and to ask where she had just come from.
Rose has followed an amazing journey – she is st il l working with Emirates and is now considering her options but from the much
ABDULLA AL MARZOUQI:
Despite his demanding managerial role at Standard Chartered bank, Abdulla has pursued his studies with vim and vigour.
CAREER DEVELOPMENT
56 March 2013 57
Because of the huge dominance of Indian and Pakistani finance professionals in UAE businesses, there is a strong influence of the Chartered qualifications of these bodies.
better posit ion of being fully qualif ied ACCA and also a graduate of the Oxford Brookes University.
Anam Sami, by any standards, is an outstanding student. She was educated in Dubai and received outstanding grades at both GCSE and Advanced level culminating in triple A’s in Pure Maths, Economics and Business Studies.
Anam decided to continue her studies in the UK where once again she excelled at the University of Manchester achieving a First Class Honours degree in Economics. Upon her return to Dubai she was a natural choice for the ‘Big 4’ firm, KPMG. She is now entering her third year of training there and is already impressing her employers – she is very interested in continuing her career in Audit and I am sure is assured of a wonderful business future ahead.
Anam is exceptionally talented and at Phoenix we are privileged to count her amongst our list of ACCA students. She has already achieved an unprecedented two world prizes in her F4 and F8 papers scoring the highest marks from around 25000-‐30000 sitting these papers globally and is on track to qualify this year. I don’t really need to wait for Anam’s results – I know she will pass!
Finally I want to tell you about Abdulla Al Marzouqi, a wonderful character who is well known to all of the Phoenix team. Like Rose, Abdulla has not found the ACCA journey straightforward. In his case this is largely driven by the conf licting responsibilities of his managerial role at Standard Chartered bank with the demands of a family including three children.
Abdulla dedicates his weekend to his family and the balances study and work pressure during the week. When nearer the exam he will take his study leave to work from 6am until 5pm each day for two weeks to complete his revision. These pressures have meant that Abdulla has had to resit one or two papers but his smile and infectious enthusiasm have kept him and his tutors going.
Sometimes in the UAE, there is a tendency for the expats to feel that all the locals simply have an easy life. It is sometimes felt that they don’t
ANAM SAMI:
Following her outstanding performance in professional coursework, Anam was a natural choice for the ‘Big 4’
have to work and things will come to them unearned. Like any society this is sometimes true and you can see the same thing around the West and the Far East however there are many like Abdulla for whom success has to be earned with sweat and the occasional tear.
Abdulla is always courteous and respectful to the Phoenix team and his fellow students and he has never stopped smiling. His success is enormously well deserved, Abdulla you have qualified this time and it has made Victoria, myself and all at Phoenix smile too!
There are countless other professional journeys that I could recount but the above is an illustration of the variety of experiences that come to mind. The professionalisation of the finance sector here is something that is very close to my heart and I find it immensely gratifying to see the success of people like Abdulla and Rose and (soon to be I am certain), Anam.
These different stories are, for me, what makes the UAE such a great place to live and work. Long may this diversity continue and fuel what I am sure will be greater business strength in the future for the UAE.
CAREER DEVELOPMENT
57
Because of the huge dominance of Indian and Pakistani finance professionals in UAE businesses, there is a strong influence of the Chartered qualifications of these bodies.
better posit ion of being fully qualif ied ACCA and also a graduate of the Oxford Brookes University.
Anam Sami, by any standards, is an outstanding student. She was educated in Dubai and received outstanding grades at both GCSE and Advanced level culminating in triple A’s in Pure Maths, Economics and Business Studies.
Anam decided to continue her studies in the UK where once again she excelled at the University of Manchester achieving a First Class Honours degree in Economics. Upon her return to Dubai she was a natural choice for the ‘Big 4’ firm, KPMG. She is now entering her third year of training there and is already impressing her employers – she is very interested in continuing her career in Audit and I am sure is assured of a wonderful business future ahead.
Anam is exceptionally talented and at Phoenix we are privileged to count her amongst our list of ACCA students. She has already achieved an unprecedented two world prizes in her F4 and F8 papers scoring the highest marks from around 25000-‐30000 sitting these papers globally and is on track to qualify this year. I don’t really need to wait for Anam’s results – I know she will pass!
Finally I want to tell you about Abdulla Al Marzouqi, a wonderful character who is well known to all of the Phoenix team. Like Rose, Abdulla has not found the ACCA journey straightforward. In his case this is largely driven by the conf licting responsibilities of his managerial role at Standard Chartered bank with the demands of a family including three children.
Abdulla dedicates his weekend to his family and the balances study and work pressure during the week. When nearer the exam he will take his study leave to work from 6am until 5pm each day for two weeks to complete his revision. These pressures have meant that Abdulla has had to resit one or two papers but his smile and infectious enthusiasm have kept him and his tutors going.
Sometimes in the UAE, there is a tendency for the expats to feel that all the locals simply have an easy life. It is sometimes felt that they don’t
ANAM SAMI:
Following her outstanding performance in professional coursework, Anam was a natural choice for the ‘Big 4’
have to work and things will come to them unearned. Like any society this is sometimes true and you can see the same thing around the West and the Far East however there are many like Abdulla for whom success has to be earned with sweat and the occasional tear.
Abdulla is always courteous and respectful to the Phoenix team and his fellow students and he has never stopped smiling. His success is enormously well deserved, Abdulla you have qualified this time and it has made Victoria, myself and all at Phoenix smile too!
There are countless other professional journeys that I could recount but the above is an illustration of the variety of experiences that come to mind. The professionalisation of the finance sector here is something that is very close to my heart and I find it immensely gratifying to see the success of people like Abdulla and Rose and (soon to be I am certain), Anam.
These different stories are, for me, what makes the UAE such a great place to live and work. Long may this diversity continue and fuel what I am sure will be greater business strength in the future for the UAE.
CAREER DEVELOPMENT
EMERGE A WINNER
THE BUSINESS environment in UAE has changed drastically in the past 10 years.
The marketplace once dominated by private family businesses has now been taken
practiced various national accounting standards, are now uniformly following international accounting standards, as required by the
These developments have triggered the need for professional accounting skills. Emerge Management Training Centre was established to satisfy these professional needs.
In the 1990s, the UAE market had few accounting
many professional institutes began to cater to the need for professional accounting skills.
CAREER DEVELOPMENT
58 March 2013
Training provider prides itself in turning professionals into top ranking executives...
a number of professional examinations such as CA from India, CPA, CMA, CFM, CIA, CISA of US and CGA Canada. His passion for teaching and his professional education blended with industry experience helped his dream come true thereby leading to the establishment of EMERGE Training Centre.
The institute specialises in US professional
and other high end professional programmes like SOX and COSO framework on internal controls. In 2012, the Institute of Management Accountants of USA (IMA) recognised EMERGE’s efforts in enrolling the maximum number of students from the Middle East. In a span of six years since its establishment, the Centre has risen to be among the top ranking institutes in the Middle East.
the examination is conducted by the Institute (AICPA), every student needs to apply through one of the 50 state boards of accountancy, which have their own eligibility criteria.
To make a career progression in this age, resilient with any economic change, a professional
A number of professional institutes from Asia,
in UAE. One of the top ranking ones is EMERGE, the pursuit of passion of Prof D. Hariharan.
With 30 years of top management experience in blue chip companies in India, Oman and UAE, he gave up his job to pursue his dream. He passed
CAREER DEVELOPMENT
59
EMERGE A WINNER
THE BUSINESS environment in UAE has changed drastically in the past 10 years.
The marketplace once dominated by private family businesses has now been taken
practiced various national accounting standards, are now uniformly following international accounting standards, as required by the
These developments have triggered the need for professional accounting skills. Emerge Management Training Centre was established to satisfy these professional needs.
In the 1990s, the UAE market had few accounting
many professional institutes began to cater to the need for professional accounting skills.
CAREER DEVELOPMENT
58 March 2013
Training provider prides itself in turning professionals into top ranking executives...
a number of professional examinations such as CA from India, CPA, CMA, CFM, CIA, CISA of US and CGA Canada. His passion for teaching and his professional education blended with industry experience helped his dream come true thereby leading to the establishment of EMERGE Training Centre.
The institute specialises in US professional
and other high end professional programmes like SOX and COSO framework on internal controls. In 2012, the Institute of Management Accountants of USA (IMA) recognised EMERGE’s efforts in enrolling the maximum number of students from the Middle East. In a span of six years since its establishment, the Centre has risen to be among the top ranking institutes in the Middle East.
the examination is conducted by the Institute (AICPA), every student needs to apply through one of the 50 state boards of accountancy, which have their own eligibility criteria.
To make a career progression in this age, resilient with any economic change, a professional
A number of professional institutes from Asia,
in UAE. One of the top ranking ones is EMERGE, the pursuit of passion of Prof D. Hariharan.
With 30 years of top management experience in blue chip companies in India, Oman and UAE, he gave up his job to pursue his dream. He passed
CAREER DEVELOPMENT
59
are invited to a lifelong ‘E-‐group’, where the alumni get professional, examination and institute updates.
Students and professionals can also contribute to this group thereby encouraging sharing of knowledge and best practices. According to Prof Hariharan, majority of new student admissions are through referral by the alumni students.
EMERGE partners with well-‐known publishing houses like ‘Wiley’ and ‘Hock’ to provide the latest updated study materials to its students. The institute is subject to quality compliance by the Knowledge and Human Development Authority of Government of Dubai.
The institute conducts free counseling sessions in schools and colleges to guide students to make the right career choices. Working professionals are also offered counseling for their career development and suitability of programmes in the event of relocation, in order to prepare them with necessary educational requirement to settle in the new country with ease.
“Having achieved success in UAE, we plan to expand our mission to other parts of Asia through web-‐based technology and to annex other professional programmes to our portfolio. We will continue to see our success through our students’ success,” Hariharan proudly says.
EMERGE counsels and provides assistance to its students to make the right choices and schedule their exams in centres in the UAE. This involves constant updating of knowledge on the requirement of all states.
In addition to providing training, the institute supports the students with exam preparation strategies and conducts adequate practice tests. On completion of the course, the students
ATTENTIVE:
Students at EMERGE Management Training Centre are all ears during one of the class sessions at the institute.
PURSUIT OF PASSION:
Prof D. Hariharan, Director of Emerge Management Training Centre established the institution six years ago.
CAREER DEVELOPMENT
60 March 2013
are invited to a lifelong ‘E-‐group’, where the alumni get professional, examination and institute updates.
Students and professionals can also contribute to this group thereby encouraging sharing of knowledge and best practices. According to Prof Hariharan, majority of new student admissions are through referral by the alumni students.
EMERGE partners with well-‐known publishing houses like ‘Wiley’ and ‘Hock’ to provide the latest updated study materials to its students. The institute is subject to quality compliance by the Knowledge and Human Development Authority of Government of Dubai.
The institute conducts free counseling sessions in schools and colleges to guide students to make the right career choices. Working professionals are also offered counseling for their career development and suitability of programmes in the event of relocation, in order to prepare them with necessary educational requirement to settle in the new country with ease.
“Having achieved success in UAE, we plan to expand our mission to other parts of Asia through web-‐based technology and to annex other professional programmes to our portfolio. We will continue to see our success through our students’ success,” Hariharan proudly says.
EMERGE counsels and provides assistance to its students to make the right choices and schedule their exams in centres in the UAE. This involves constant updating of knowledge on the requirement of all states.
In addition to providing training, the institute supports the students with exam preparation strategies and conducts adequate practice tests. On completion of the course, the students
ATTENTIVE:
Students at EMERGE Management Training Centre are all ears during one of the class sessions at the institute.
PURSUIT OF PASSION:
Prof D. Hariharan, Director of Emerge Management Training Centre established the institution six years ago.
CAREER DEVELOPMENT
60 March 2013
WHIZ KIDS
KPMG IN the UAE recently hosted the second edition of the National ‘Ace the Case’ Competition in Dubai.
The team from S P Jain School of Global Management won the competition by displaying outstanding analytical and presentation skills which set them apart from the rest of the competing teams.
KPMG UAE will now go on to sponsor the team’s participation at the KPMG International Case Competition (KICC) that is to be held in Madrid, Spain in April 2013.
Dr Tayeb Kamali who is the Vice Chancellor of Higher College of Technology graced the Award Ceremony and presented awards to the winners and runners up.
“I am delighted to be here today and appreciate this competition that KPMG has put together for our students. These case competitions provide an excellent learning environment for the students and give them a taste of what they will face in their professional careers,” Dr Kamali said, adding, “I wish the winning team the best of luck at the International Case Competition in Madrid.”
Dr Tayeb Kamali, Vice Chancellor of Higher College of Technology poses with the winners of the KPMG ‘Ace the Case’ competition.
He also shared some of his experiences solving case studies from his own university days.
Runners up were the students from Middlesex University Dubai who put up a tough competition against the winners and highly impressed the panel of judges.
Prathap Katharikuppam, Partner for Human Resources and Risk Management at KPMG Lower Gulf congratulated the winners and said; “Your hard work along with your combined analytical, reasoning, and presentation skills has resulted in winning this year’s competition. We wish you the very best at the KICC in Madrid, make the UAE proud.”
This is the second year that KPMG is hosting the two day competition in the UAE. The workshops held on
the necessary tools to solve, structure and present their analysis and recommendations. On the second
under a tight deadline of three hours and present
life clients.
“Ace the Case aims to continue inspiring the young minds of tomorrow. Every participant is a winner, given the steep learning curve experienced by the students. We are also pleased by how well this initiative was received across universities in the UAE,” said Reyana Menzel KPMG’s Head of Human Resources.
The top 8 teams competing this year came from the following universities:
1. S P Jain School of Global Management
2. American University of Sharjah
3. HCT-‐ Dubai Men’s College
4. Middlesex University
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S P Jain School of Global Management emerges winner at the KPMG ‘Ace the Case’ competition; students to represent UAE at international contest in Madrid, Spain...
ON A CLASS OF ITS OWN
As Cass Business School’s senior lecturer in accounting, what modules do you teach?
A. I t e a c h t h e I n t r o du c t o r y Accounting class to both the full-‐t ime MBA students in London and the students in the Dubai
Execut ive-‐MBA (EMBA) programme. In addition, I teach an elective on International F inanc ia l Repor t ing St andards ( IFRS) accounting standards in our International Accounting Masters programme.
With campuses in few selected cities, you don’t seem to have a global footprint like some other equally top-‐ranking business schools. What are your plans for the next five years in terms of campus development?
We are a highly ranked business school, based in the City of London. We experience very high demand for all our courses, and are currently expanding to accommodate growth in Executive Education. Dubai is a natural second home for our EMBA programme, as it has the same cosmopolitan feel and high energy as London.
We do not have the need to create more international campuses. In other similar locations – Singapore, Seoul – we have formed productive partnerships with highly ranked local business schools.
With Cass Dubai Centre serving the Middle East and North Africa (MENA) region, you seem
of study location. Would an online degree possibly be the programme structure of the future for Cass?
Dr Arthur Kraft, Senior Lecturer in Accounting, Cass Dubai Centre
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62 March 2013
Dr Arthur Kraft, a senior lecturer in accounting at the Dubai branch of Cass Business School, tells Joyce Njeri about the active part the school’s global network is taking in shaping accounting careers...
We have absolutely no plans to start an online MBA programme. A good MBA should allow students to share experiences, to learn communication and listening skills in a pressured environment.
MOMENTOUS:
Students of Cass Business School at Dubai International Financial Centre (DIFC) toss their mortarboard in jubilation after graduating from the institution recently.
We have absolutely no plans to start an online MBA programme. A good MBA should allow students to share experiences, to learn communication and listening skills in a pressured environment. The learning that happens in a live case discussion in class with an effective professor cannot be replicated in front of a screen.
In the Cass Dubai EMBA programme, students
the opportunity to meet the same professors who teach on our London programmes (and who also
Some say that the accounting education taught in classrooms is different from the actual on-‐the-‐job skills necessary for success. As an educator, do you think there needs to be continuous adjustments in accounting curriculum to bridge the gap?
It is certainly the case that the accounting curriculum always needs to be reviewed and
cover the skills that employers demand from new graduates. We do this by fostering links with employers and professional accounting bodies, (for instance the Institute for Chartered
of what skills are in demand.
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63
ON A CLASS OF ITS OWN
As Cass Business School’s senior lecturer in accounting, what modules do you teach?
A. I t e a c h t h e I n t r o du c t o r y Accounting class to both the full-‐t ime MBA students in London and the students in the Dubai
Execut ive-‐MBA (EMBA) programme. In addition, I teach an elective on International F inanc ia l Repor t ing St andards ( IFRS) accounting standards in our International Accounting Masters programme.
With campuses in few selected cities, you don’t seem to have a global footprint like some other equally top-‐ranking business schools. What are your plans for the next five years in terms of campus development?
We are a highly ranked business school, based in the City of London. We experience very high demand for all our courses, and are currently expanding to accommodate growth in Executive Education. Dubai is a natural second home for our EMBA programme, as it has the same cosmopolitan feel and high energy as London.
We do not have the need to create more international campuses. In other similar locations – Singapore, Seoul – we have formed productive partnerships with highly ranked local business schools.
With Cass Dubai Centre serving the Middle East and North Africa (MENA) region, you seem
of study location. Would an online degree possibly be the programme structure of the future for Cass?
Dr Arthur Kraft, Senior Lecturer in Accounting, Cass Dubai Centre
CAREER DEVELOPMENT
62 March 2013
Dr Arthur Kraft, a senior lecturer in accounting at the Dubai branch of Cass Business School, tells Joyce Njeri about the active part the school’s global network is taking in shaping accounting careers...
We have absolutely no plans to start an online MBA programme. A good MBA should allow students to share experiences, to learn communication and listening skills in a pressured environment.
MOMENTOUS:
Students of Cass Business School at Dubai International Financial Centre (DIFC) toss their mortarboard in jubilation after graduating from the institution recently.
We have absolutely no plans to start an online MBA programme. A good MBA should allow students to share experiences, to learn communication and listening skills in a pressured environment. The learning that happens in a live case discussion in class with an effective professor cannot be replicated in front of a screen.
In the Cass Dubai EMBA programme, students
the opportunity to meet the same professors who teach on our London programmes (and who also
Some say that the accounting education taught in classrooms is different from the actual on-‐the-‐job skills necessary for success. As an educator, do you think there needs to be continuous adjustments in accounting curriculum to bridge the gap?
It is certainly the case that the accounting curriculum always needs to be reviewed and
cover the skills that employers demand from new graduates. We do this by fostering links with employers and professional accounting bodies, (for instance the Institute for Chartered
of what skills are in demand.
CAREER DEVELOPMENT
63
Also, by keeping up-‐to-‐date on the latest in accounting research and teaching we can bring the results of any relevant research into the classroom before it gains wider acceptance in the economy.
I think one of the largest gaps is that many students graduate from their undergraduate programmes
lack a broad range of skills. This is why our MBA curriculum is anchored in the fundamentals of general management, including the latest theories and best practices in business – from accounting
The goal is to produce graduates who are not only
to contribute in other areas. Furthermore, because the students enter the MBA and EMBA programmes
typical undergraduate or masters student, we are
The MBA and EMBA accounting courses at Cass are not designed to prepare students to be Chartered Accountants – training CA’s is more the focus of our undergraduate courses. Our accounting courses in the MBA and EMBA programmes are instead designed to train individuals how to understand, and use, accounting information with the assumption that most of the students will be working in areas outside of accounting (general management,
accounting information as a tool to improve their performance, not on the recording or auditing of that accounting information.
Because we are not training accountants we do not have students entering the programme looking to
However, we do offer students the ability to take additional accounting electives that they believe will provide them with useful skills. Furthermore, the material in the accounting courses can be adjusted to better meet the demands of the students.
The accounting curriculum always needs to be reviewed and modified to reflect changes in the economy and cover the skills that employers demand from new graduates.
Dr Arthur Kraft, Senior Lecturer in Accounting, Cass Dubai Centre: “Dubai is a natural second home for our Executive-MBA programme, as it has the same cosmopolitan feel and high energy as London.”
CAREER DEVELOPMENT
64 March 2013 65
For instance, traditionally the students in the Dubai EMBA programme generally prefer the managerial accounting material, while the London
While the accounting material covered in the Dubai EMBA programme is largely the same as what is taught in London, we do adjust the material
differences in the work experience and interest of the students across classes and programmes
classes are interactive we are able to adjust the
students want to spend more time discussing the potential changes to revenue recognition we are
With accountancy industry set to expand due to new standards being put in place and trends such as integrated reporting, industry experts see new opportunities and roles emerging, such as decision support, control, planning etc. This presents a wide scope available to accounting students. As educators, what do you do to make this awareness of the opportunities that exist for student accountants in today’s marketplace?
In order to make the students aware of the
earlier, I believe that this is best achieved by keeping in contact with companies and professional organisations so you are aware of what jobs and/or skills they require and by reading and contributing to the accounting research literature so you are aware of where the
Once you understand what the current and future opportunities are, the next challenge is how to
that it is much more effective if you can integrate this information into the course so that you can
I achieve this in a variety of ways, from discussing news items or research papers, to calling on students who have work experience
to not only present the information about the new opportunity, but also get the students talking and thinking about what skills are required for these
opportunities, why these opportunities exist,
Most of your executive master programmes require work experience from prospective
School looking for?
In addition to good academic credentials, we require students to have at least 4-‐5 years of good
evidence of professional practice, and some client
We interview all students to ensure that they have the potential to hold their own in discussion with some quite heavyweight classmates, and understand the critical and open-‐ended nature
therefore around 27, the median typically 33-‐34 (so 10 years of business experience), with some
international student body. How does the school achieve such a high rate of applicants from abroad?
We are a UK school, but based in the City of London, where even the local workforce is very
London and Dubai are magnets for ambitious young people looking to gain both academic credentials
An international outlook is embedded in the DNA of Cass – our professors are from many nationalities, our courses look at global rather than parochial problems, our expectation is that a Cass EMBA graduate will be culturally sensitive and
from friends and colleagues who have graduated from our courses, they look at our websites, watch and listen to our speakers at conferences and fairs,
Both London and Dubai are magnets for ambitious young people looking to gain both academic credentials and exposure to international business.
CAREER DEVELOPMENT
Also, by keeping up-‐to-‐date on the latest in accounting research and teaching we can bring the results of any relevant research into the classroom before it gains wider acceptance in the economy.
I think one of the largest gaps is that many students graduate from their undergraduate programmes
lack a broad range of skills. This is why our MBA curriculum is anchored in the fundamentals of general management, including the latest theories and best practices in business – from accounting
The goal is to produce graduates who are not only
to contribute in other areas. Furthermore, because the students enter the MBA and EMBA programmes
typical undergraduate or masters student, we are
The MBA and EMBA accounting courses at Cass are not designed to prepare students to be Chartered Accountants – training CA’s is more the focus of our undergraduate courses. Our accounting courses in the MBA and EMBA programmes are instead designed to train individuals how to understand, and use, accounting information with the assumption that most of the students will be working in areas outside of accounting (general management,
accounting information as a tool to improve their performance, not on the recording or auditing of that accounting information.
Because we are not training accountants we do not have students entering the programme looking to
However, we do offer students the ability to take additional accounting electives that they believe will provide them with useful skills. Furthermore, the material in the accounting courses can be adjusted to better meet the demands of the students.
The accounting curriculum always needs to be reviewed and modified to reflect changes in the economy and cover the skills that employers demand from new graduates.
Dr Arthur Kraft, Senior Lecturer in Accounting, Cass Dubai Centre: “Dubai is a natural second home for our Executive-MBA programme, as it has the same cosmopolitan feel and high energy as London.”
CAREER DEVELOPMENT
64 March 2013 65
For instance, traditionally the students in the Dubai EMBA programme generally prefer the managerial accounting material, while the London
While the accounting material covered in the Dubai EMBA programme is largely the same as what is taught in London, we do adjust the material
differences in the work experience and interest of the students across classes and programmes
classes are interactive we are able to adjust the
students want to spend more time discussing the potential changes to revenue recognition we are
With accountancy industry set to expand due to new standards being put in place and trends such as integrated reporting, industry experts see new opportunities and roles emerging, such as decision support, control, planning etc. This presents a wide scope available to accounting students. As educators, what do you do to make this awareness of the opportunities that exist for student accountants in today’s marketplace?
In order to make the students aware of the
earlier, I believe that this is best achieved by keeping in contact with companies and professional organisations so you are aware of what jobs and/or skills they require and by reading and contributing to the accounting research literature so you are aware of where the
Once you understand what the current and future opportunities are, the next challenge is how to
that it is much more effective if you can integrate this information into the course so that you can
I achieve this in a variety of ways, from discussing news items or research papers, to calling on students who have work experience
to not only present the information about the new opportunity, but also get the students talking and thinking about what skills are required for these
opportunities, why these opportunities exist,
Most of your executive master programmes require work experience from prospective
School looking for?
In addition to good academic credentials, we require students to have at least 4-‐5 years of good
evidence of professional practice, and some client
We interview all students to ensure that they have the potential to hold their own in discussion with some quite heavyweight classmates, and understand the critical and open-‐ended nature
therefore around 27, the median typically 33-‐34 (so 10 years of business experience), with some
international student body. How does the school achieve such a high rate of applicants from abroad?
We are a UK school, but based in the City of London, where even the local workforce is very
London and Dubai are magnets for ambitious young people looking to gain both academic credentials
An international outlook is embedded in the DNA of Cass – our professors are from many nationalities, our courses look at global rather than parochial problems, our expectation is that a Cass EMBA graduate will be culturally sensitive and
from friends and colleagues who have graduated from our courses, they look at our websites, watch and listen to our speakers at conferences and fairs,
Both London and Dubai are magnets for ambitious young people looking to gain both academic credentials and exposure to international business.
CAREER DEVELOPMENT
PATHWAY TO PROSPERITY
To qualify as an ICAEW Chartered Accountant, students must complete a series of rigorous exams followed by at least 450 days of practical work experience with an Authorised Training Employer (ATE).
THE INSTITUTE of Chartered Accountants in England and Wales (ICAEW) recently celebrated the achievements of newly-qualified
Chartered Accountants as well as students attaining certificates in finance, accounting and business.
In a ceremony held at the Capital Club, Dubai International Financial Centre, students were awarded the internationally-‐recognised ICAEW
The awards were conferred by Regional Director
witnessed by Sheriff of the City of London Alderman
is this journey you are now taking and I commend you
“This is a memorable day for ICAEW and the
They have taken important steps on their journey to join an elite group of 140,000 ICAEW
hardworking people like this that are set to become the Middle East’s next generation of business
To qualify as an ICAEW Chartered Accountant, students must complete a series of rigorous exams followed by at least 450 days of practical work experience with an
in 2008 in the UK as a stand-‐alone business
business, whilst the CFq recognises achievements
“As the UAE continues to cement its position as
more people in the region are choosing to train as
“The key to ensuring sustainable prosperity in the region for the future will be encouraging young people to become business leaders, so I am especially delighted to be awarding these
* For more graduation photos, turn to ‘Business Pictorial’ section
Regional Director for ICAEW Middle East, Peter Beynon FCA (left) and the Sheriff of the City of London Alderman The Hon, Jeffrey Evans (right) addressing the ICAEW graduates.
CAREER DEVELOPMENT
66 March 2013
ICAEW celebrates success of Middle East Students with momentous graduation ceremony...
SUBSCRIBE NOW TO THE REGION'S FIRST MIDDLE EASTERN FOCUSED ACCOUNTANCY MAGAZINE.Complimentary subscription for any accountants currently working or studying in the UAE.
Every month we will bring you the latest news, expert opinion, interviews with regional influencers and policy makers, as well as CPD advice, job opportunities and moves.
Accountant ME will also feature regular articles and reports on auditing, legislation, management advisory services, ethics, professional development and practice management.
To subscribe visit
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Contact us today for more information about this brand new title.
Treasury qualifications help accountants become more effective, and teach skills in managing external stakeholders that are vital in the CFO role.
ACROSS THE world – in every business sector and every industry – an understanding of treasury creates opportunities
and possibilities.
CORPORATE TREASURY
68 March 2013
You’ve quali!ed as an accountant... now what? For some people this is enough after many years of hard work, but for many, some sort of specialisation is a de!nite value-add. We detail how the Association of Corporate Treasurers professional quali!cations can help you get ahead...
CREATING AN EDGE:
A career in treasury has much to offer in today’s fast-paced, global business environment – and the quickest way to get to where you want to be in treasury is by getting the right training
CORPORATE TREASURY
69
TREASURE IN TREASURY
Treasury qualifications help accountants become more effective, and teach skills in managing external stakeholders that are vital in the CFO role.
ACROSS THE world – in every business sector and every industry – an understanding of treasury creates opportunities
and possibilities.
CORPORATE TREASURY
68 March 2013
You’ve quali!ed as an accountant... now what? For some people this is enough after many years of hard work, but for many, some sort of specialisation is a de!nite value-add. We detail how the Association of Corporate Treasurers professional quali!cations can help you get ahead...
CREATING AN EDGE:
A career in treasury has much to offer in today’s fast-paced, global business environment – and the quickest way to get to where you want to be in treasury is by getting the right training
CORPORATE TREASURY
69
MANAGING CONSULTANT -DECOL DEBT COLLECTIONS LLC
ANDY YIACOUMI
OVERCOMING DEBT DEADLOCK
I CONSIDER the UAE and Middle East to be an emerging market as conditions are still some way off what I would deem mature.
This can be seen clearly when considering how companies manage their credit procedures. Many of them focus on sales and pretty much ignore the whole area of effective credit management. With the current market conditions, it’s even more relevant than before to have a solid procedure in place which starts from the early stages of a sales person contacting a potential new client.
I have engrained in my mind a simple term which applies to everyone within an organisation, ‘A sale is only a sale when the money is in the bank’.
In the last few years I have seen more and more companies starting to incorporate a credit policy but still there is a long way to go. Taking into account the dynamics of the market, it is vital to have a written policy that is understood and followed by all.
As the UAE is a transient market and multicultural, it is vital to have consistency in a policy otherwise there will be gaps as people will follow their own system, if any, and then when they move on the system crumbles.
It must also be noted that many local companies (with an international presence) will adopt a policy from abroad. These policies without doubt will need to be adapted for the UAE market bearing in mind the restricted amount of data available
Ultimately there can never be a 100% formula but all angles need to addressed and covered to the best of our ability.
For me one of the biggest problems in the market is that it has grown so quickly and the infrastructure too. What has lagged behind though is the
market requirements.
There are too many gaps and loopholes which ultimately will be abused by many companies and individuals if possible. That makes it even more vital to try and avoid going legal by avoiding the
There are still many companies that don’t incorporate any form of debt right-‐off or make any provisions for bad debt. One must realise that this is standard procedure in many parts of the world and is also important locally.
To give an example, I once was called to a meeting and given a spread sheet which had approximately 15 debt cases with a combined value of AED15 million. All were dated between 2001 and 2007. When I asked for details of each case I realised that all had either run away or closed down.
The local parent company refused to write off the debts and wanted somehow to have the monies recovered. This of course was completely unrealistic. Just because on the books there is outstanding collections it doesn’t mean that the monies will ever be collected. You have to be realistic instead of living under some false economy. Of course I refused to handle the cases as essentially it would have been a complete waste of time.
I had another that contacted me and when we looked at the cases, they then asked me to offer
CREDIT MANAGEMENT
70 March 2013
Andy Yiacoumi, the Managing Consultant of Decol Debt Collections emphasises on the importance of e!ective credit management...
MANAGING CONSULTANT -DECOL DEBT COLLECTIONS LLC
ANDY YIACOUMI
OVERCOMING DEBT DEADLOCK
I CONSIDER the UAE and Middle East to be an emerging market as conditions are still some way off what I would deem mature.
This can be seen clearly when considering how companies manage their credit procedures. Many of them focus on sales and pretty much ignore the whole area of effective credit management. With the current market conditions, it’s even more relevant than before to have a solid procedure in place which starts from the early stages of a sales person contacting a potential new client.
I have engrained in my mind a simple term which applies to everyone within an organisation, ‘A sale is only a sale when the money is in the bank’.
In the last few years I have seen more and more companies starting to incorporate a credit policy but still there is a long way to go. Taking into account the dynamics of the market, it is vital to have a written policy that is understood and followed by all.
As the UAE is a transient market and multicultural, it is vital to have consistency in a policy otherwise there will be gaps as people will follow their own system, if any, and then when they move on the system crumbles.
It must also be noted that many local companies (with an international presence) will adopt a policy from abroad. These policies without doubt will need to be adapted for the UAE market bearing in mind the restricted amount of data available
Ultimately there can never be a 100% formula but all angles need to addressed and covered to the best of our ability.
For me one of the biggest problems in the market is that it has grown so quickly and the infrastructure too. What has lagged behind though is the
market requirements.
There are too many gaps and loopholes which ultimately will be abused by many companies and individuals if possible. That makes it even more vital to try and avoid going legal by avoiding the
There are still many companies that don’t incorporate any form of debt right-‐off or make any provisions for bad debt. One must realise that this is standard procedure in many parts of the world and is also important locally.
To give an example, I once was called to a meeting and given a spread sheet which had approximately 15 debt cases with a combined value of AED15 million. All were dated between 2001 and 2007. When I asked for details of each case I realised that all had either run away or closed down.
The local parent company refused to write off the debts and wanted somehow to have the monies recovered. This of course was completely unrealistic. Just because on the books there is outstanding collections it doesn’t mean that the monies will ever be collected. You have to be realistic instead of living under some false economy. Of course I refused to handle the cases as essentially it would have been a complete waste of time.
I had another that contacted me and when we looked at the cases, they then asked me to offer
CREDIT MANAGEMENT
70 March 2013
Andy Yiacoumi, the Managing Consultant of Decol Debt Collections emphasises on the importance of e!ective credit management...
For me one of the biggest problems in the market is that it has grown so quickly and the infrastructure too. What has lagged behind though is the adaptation of the commercial laws to reflect the market requirements.
them a discount on our collection rates. When I asked why... his answer was “well if we have to pay you a commission for collecting our money then we won’t make any profit on these cases.” I asked if they had any write off policy and they confirmed “of course not, we gave a service and we want our money.” I then asked if they had any credit procedure so that before they offered credit they evaluated each case and then made a qualified decision. Of course the answer was ‘No’.
So to summarise, they want to sell their services to everyone with minimum margins offering 90 plus days credit and expect to collect from everyone. If they can’t collect themselves then they want to use a collection agency but can’t afford the commission rates otherwise they
typical of this market, hence my claim that it is still very immature.
I also deal regularly with companies that have basically thrown credit at their clients and contacted me when everything has collapsed
recent case whereby the client approached me as he was owed nearly AED1 million. When we looked at the case it was obvious that
through desperation, to exist, he was offering unbelievable credit terms of 120 days plus without any form of security.
He was providing skilled manpower services to a client. He was responsible for paying his staff
he had now defaulted himself with his own staff as he could no longer keep up. His client wasn’t paying and it all came to a point where he was effectively bankrupt.
was called to perform a miracle. Many people have the misconception that because it is handed over to a debt collection agency it will
case as we don’t know what we will have to deal with until we actually work on the case.
the intentions are of the debtor. If they are
realistic time frame for an improvement in their
are many that will say just about anything to
that will effectively make no commitment at all and in cases will deny their liabilities. It is
day we are shocked with the type of work we receive and the stories we hear from debtors and even clients.
policy to work for each and every company out
the realities of the market and have a sensible approach to limits. One must never be afraid to decline business if it doesn’t meet their criteria for
out later you will never get paid. Right now this market is all about ‘Survival of the Fittest’. Until the rest of the world economies recover then what hope is there for the UAE market given the amount of inward investment it needs to exist and grow?
understanding the mechanics of the company and current procedures. Once this is understood then a sensible recommendation will be given to implement the necessary practice into the day to day running of the business.
CREDIT MANAGEMENT
71
23%PROPORTION OF AN EMPLOYEE’S SALARY THAT GOES TOWARDS ‘EMPLOYMENT TAX’
EMPLOYMENT TAXES SOAR
THE AVERAGE extra cost, across the world, to businesses in social security and other ‘taxes’ of employing a worker is now almost
23% of an employee’s salary*, according to research by UHY, the global accounting and consultancy network.
UHY tax professionals studied data in 25 countries across its international network, including all members of the G7 and the emerging BRIC economies (Brazil, Russia, India and China). It calculated the value of payments a company had to make, such as social security contributions, on top of the gross salary they pay to individual employees.
The research shows the low cost of employment in the UAE. The UAE population is predominantly a contracted or migrant workforce where every employer will have employment costs for every potential worker. These costs in other countries include social security payments and compulsory pension
contributions that do not affect employers in the UAE or greater Gulf region.
The latest study also reveals that the UAE is home to 147 nationalities, which demonstrates the attraction to the country for foreign workers.
“With one of the lowest employment cost to
employment in the UAE,” the study states.
UHY says that the average employer will have to pay out an extra $6,757 on top of a gross salary of $30,000 in various employment costs (22.5% of gross salary) from mandatory pension provisions to healthcare cover. For a gross salary of $300,000 the average employer has to pay an extra $41,206, 13.7% of the gross salary.
Reacting to the report, Ladislav Hornan, the Chairman of UHY, said; “Governments in many countries have heaped on extra employment costs over the past decade or so. In countries with
problems, high employment costs are now undermining the job creation agenda.”
TAXWATCH
72 March 2013
UHY study reveals how governments have increased job levies, with companies now paying average employment costs worth nearly 25% of workers’ salaries...
Employment costs for gross salaries of $30,000 are 16 times higher in the countries with the heaviest burden than they are in countries with the cheapest employment costs.
“There is a huge disparity between countries with the highest employment costs and those with the lowest,” says Ladislav Hornan, Chairman of UHY.
“Lower employment costs can help labour market
*Based on a gross annual salary of $30,000
TAXWATCH
73
Stuart Dunlop has been appointed the new Regional Director for Middle East, North Africa and South Asia (MENASA), for
ACCA (the Association of Chartered
based in Dubai, will be responsible for leading and managing ACCA’s teams which are based in Oman, Pakistan and the UAE and which also cover Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Palestine, Qatar,
graduating from university, Stuart worked in the City of London, including at the London Stock Exchange, where
joined the Reuters Group in 1992 and held sales and marketing management positions in South Africa, Switzerland,
ten years in the Middle East, initially heading up the Sales and Marketing function for Reuters and latterly establishing the Thomson Reuters
Camille Geadah joins Grant Thornton UAE as a Corporate Finance
Prior to joining Grant Thornton, Camille worked
for PricewaterhouseCoopers (PwC) in both the Middle East and the UK,
started off in Audit before making the transition into the Transaction Services
and market exposure, completing
Jason Mendens has joined Clifford Chance company as
Chance is one of the
that focuses on the core areas of tax, capital
was previously based in Clifford Chance's
lawyer who advises on public and private mergers and acquisitions, joint ventures, strategic investments, capital raisings
resources sector and has served as a State Branch Member of AMPLA, the Australian
Suraj Nundah joins Grant Thornton UAE as a Manager for
Prior to joining Grant Thornton, Suraj worked for RSM Tenon in
London where he was involved with client engagements whilst delivering exceptional
working with companies based in London, USA and the Middle East mainly Qatar which has allowed him to broaden his sector and industry experience within key
Yousef Al-Jaida has been appointed Chief Strategic Development
Qatar Financial
In his new role,
Yousef Al-‐Jaida will take responsibility for the overall strategic development
QFC Authority in August 2010 as Director, Strategic Development –
Qatar Financial Centre is a business hub established by the Government of Qatar, to encourage participation in the
Standard Chartered has announced the appointment
of Tom Emmetand Acquisitions (M&A) for the Middle
Tom Emmet joins Standard Chartered from the Royal Bank of Scotland where
and Equity Capital Markets (ECM) for
he was a long term member of ABN AMRO’s EMEA Investment Banking
regional headquarters in the Dubai
Noor Islamic Bank has announced the appointment of Narendra Swarup as Chief
his role, Swarup is responsible for
include credit, market operations as well as compliance, protecting against fraud and guarding intellectual property
Swarup brings with him more than 25 years of experience in risk management in sovereign funds and international
APPOINTMENTSIf you have made a new appointment, promotion or have any relevant hiring
Stuart Dunlop has been appointed the new Regional Director for Middle East, North Africa and South Asia (MENASA), for
ACCA (the Association of Chartered
based in Dubai, will be responsible for leading and managing ACCA’s teams which are based in Oman, Pakistan and the UAE and which also cover Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Palestine, Qatar,
graduating from university, Stuart worked in the City of London, including at the London Stock Exchange, where
joined the Reuters Group in 1992 and held sales and marketing management positions in South Africa, Switzerland,
ten years in the Middle East, initially heading up the Sales and Marketing function for Reuters and latterly establishing the Thomson Reuters
Camille Geadah joins Grant Thornton UAE as a Corporate Finance
Prior to joining Grant Thornton, Camille worked
for PricewaterhouseCoopers (PwC) in both the Middle East and the UK,
started off in Audit before making the transition into the Transaction Services
and market exposure, completing
Jason Mendens has joined Clifford Chance company as
Chance is one of the
that focuses on the core areas of tax, capital
was previously based in Clifford Chance's
lawyer who advises on public and private mergers and acquisitions, joint ventures, strategic investments, capital raisings
resources sector and has served as a State Branch Member of AMPLA, the Australian
Suraj Nundah joins Grant Thornton UAE as a Manager for
Prior to joining Grant Thornton, Suraj worked for RSM Tenon in
London where he was involved with client engagements whilst delivering exceptional
working with companies based in London, USA and the Middle East mainly Qatar which has allowed him to broaden his sector and industry experience within key
Yousef Al-Jaida has been appointed Chief Strategic Development
Qatar Financial
In his new role,
Yousef Al-‐Jaida will take responsibility for the overall strategic development
QFC Authority in August 2010 as Director, Strategic Development –
Qatar Financial Centre is a business hub established by the Government of Qatar, to encourage participation in the
Standard Chartered has announced the appointment
of Tom Emmetand Acquisitions (M&A) for the Middle
Tom Emmet joins Standard Chartered from the Royal Bank of Scotland where
and Equity Capital Markets (ECM) for
he was a long term member of ABN AMRO’s EMEA Investment Banking
regional headquarters in the Dubai
Noor Islamic Bank has announced the appointment of Narendra Swarup as Chief
his role, Swarup is responsible for
include credit, market operations as well as compliance, protecting against fraud and guarding intellectual property
Swarup brings with him more than 25 years of experience in risk management in sovereign funds and international
APPOINTMENTSIf you have made a new appointment, promotion or have any relevant hiring