Oct 2009 Edition: After a long break, we are back with a series of inspiring features that reflect the growing sophistication and diversification of economies in OIC (Organization of Islamic Conference) countries.
We lead off with an overview of leading business innovations from the largest Islamic country - Indonesia. The innovations are compiled by the Business Innovation Center (BIC)at Indonesia covering products from food, energy, health & medicine, ICT, defense, transportation and other sectors. Amidst the global economic slowdown, Indonesia is expected to have the fastest recovery in 2010 from amongst the OIC countries. With a stabilizing and developing democracy led by its charismatic and popular President Susilo Bambang Yudhoyono, Indonesia is certainly a key market to follow in the OIC.
The other big story from the OIC markets has been acquisition by Yahoo of Arab world's largest online portal - Maktoob.com. The transaction has been reported to be valued at $100 million. This is a significant moment in the history for Arab based online ventures and is sure to draw much attention to this sector of the future. We present an interview with Maktoob.com's CEO Mr. Samih Toukan.
Keeping with the technology theme, Expert contributor Ezzeddine Jaadi looks at the growing sub-sector of IT service providers uniquely catering the Islamic Finance industry. Islamic Finance continues to grow globally riding on the growing sentiment and demands of Muslim consumers. One major Muslim consumer market is the approximately 6 million strong American Muslim market. However, given its size and affluence the market is still being severely undeserved. We look at this untapped American Muslim market and profile an upcoming conference (American Muslim Consumer Conference (AMCC), October 31st, 2009 in New Brunswick, NJ, USA) addressing this growing market segment in the US.
Covering the overall challenges and opportunities across the OIC markets, Expert contributor Mr Arif Zaman discusses leadership development challenges for the Ummah - OIC countries as well as the Muslim diaspora. However, there are indeed various OIC countries showing strong leadership in various Industries. We look at the growing Pharmaceuticals industry in Bangladesh by profiling Beximco Pharma which is leading Bangladeshi pharmaceutical exports. Another key OIC country - Saudi Arabia has been making strong progressive economic strides. It has recently jumped up in the rankings of the Global Competitiveness Report by the World Economic Forum moving up to 24th rank. Also, its launch of the impressive science and technology research driven University KAUST has been an encouraging development. As many businesses explore opportunities in Saudi Arabia, we review a book that focuses on the business environment in Saudi Arabia - Business and Management Environment in Saudi Arabia by Author Abbas J. Ali.
We hope you enjoy this edition. We look forward to your feedback.
Feb/March 2009 Edition: This Edition covers our 5th Annual DS100 ranking of the Top 100 Companies of the Muslim world that continues to benchmark the corporate environment of the 57 OIC (Organization of Islamic Conference) member countries.
This year’s ranking, which covered financials amidst early stages of the current global recession (end-of-year 2007 data), showed an expected decrease in growth of the construction, energy, and diversified sector companies. However, areas of opportunities were also highlighted as basic materials manufacturing, and agriculture/food companies grew faster than the year before.
From the DS100 companies, we present an analysis of the Telecom sector companies, as well as a look at Malaysian UMW's recent Re-branding and Indonesian Astra Internationals strategy to respond to the global economic downturn. Turkey has the biggest represented companies on the DS100, and we look at Turkey's increasing economic shift towards East.
Expert Contributor, Dr. Athar Osama gives his perspective on Dubai 2.0 - Towards an Innovation Economy in Challenging Times.
Meanwhile expert contributor, Mr. Riaz Haq, looks at the advances made my the Defence private sector
of Pakistan.
As always we look forward to your feedback.
July Edition: In our July edition we are presenting the leading Consumer facing brands of the Top 100 Companies of the Muslim World. Given the ever more importance of branding in helping companies differentiate and command premium (Interbrand values - Coca Cola's brand value to be $65 bill), we are presenting this updated benchmark. Consumer brands from Turkey dominate this list, eg Arcelik, Vestel, Beko (Electronics) and Ulker (Confectionery).
The reason for our focus on this? To date none of the indigenous brands from Muslim majority countries have every made it to the Top 100 Global brand list (published by Interbrand) We hope this benchmark plays a small part in changing this fact. There's already much positive momentum as the last two years seven of the DS100 companies have completely re-branded themselves. We will soon also be covering some of the emerging brands in addition to the one's from the Top 100 Companies.
In our Innovation channel, Guest contributor Athar Mian, provides tremendous expert insights on Mobile technology innovation opportunities and the role of Islamic Finance. Its specific focus on opportunities within Muslim world provides much direction for entrepreneurs in this pace to consider. We are also proud to highlight this issue the exceptional achievement of Jordan originated Hikma Pharmaceutical, that through quality global R&D is becoming a global player.
In our continuing focus on the Muslim Lifestyle space we look at one of the most prominent global Muslim children's book publisher - India based, Goodword Books.
Finally, in Finance, given the growing focus on the agriculture sector globally, we look at how Agri-businessess in Malaysia are exploring creative financing. From Malaysia we also present a profile of Ms. Tengku Rozidar, CEO of '1901 Hotdog' outlets on success in franchising.
We hope you will find this issue valuable. Look forward to your feedback.
May/ June Edition: In this edition we present an update of the 2005 Research Brief titled "Is Intra-OIC Trade on the Rise?" (OIC = Organization of Islamic Conference.) With many of the Muslim world economies growing in global prominence, one question often asked is how much of the trade is being done between these economies.
Our latest research brief looks at the current Intra-OIC trade trends by evaluating the four leading Muslim majority country economies of Malaysia, Turkey, Saudi Arabia and Indonesia and their trade with the rest of the 57 OIC member countries compared to the rest of the world. Even as the Islamic Development Bank Annual Report (2006-07) revealed that OIC member countries’ overall share of trade with other OIC member countries was a mere 14%, our Brief certainly shows a strong rise in Intra-OIC trade between the years 2003-07.
One story we are proud to have finally covered is the exemplary corporate social services program of the Saudi Arabia based conglomerate Abdul Latif Jameel Group. We have also included a photo journal showcasing ALJ's impressive array of community programs.
For our Muslim Lifestyle Market section we have an inspiring entrepreneurship story of Kuwait based Dr. Naif Al-Mutawa's The 99 comic series gaining regional prominence including licensing deals such as a newly announced 99 Village theme park being initiated in the GCC.
Finally, guest contributor Dr Athar Osama provides an outsiders perspective on the recent Harvard Islamic Finance Forum while Ms. Nawal Ouzren, herself a former six-sigma black belt for General Electric (GE), looks at a large successful six-sigma implementation in Turkey (at a major conglomerate Borusan Holding.)
I look forward to your comments on this update. Also, we would like your recommendations on innovative and inspiring products, companies and business leaders from the Muslim world for us to consider profiling.
April Edition: Innovation and entrepreneurship have been the corner stone of all developed economies. In the past few years, we have been withnessing an encouraging level of focus within the Muslim world emerging economies on such efforts.
DinarStandard's April 2008 issue looks at some recent nuggets of this blooming innovative, entrepreneurial business environment.
Our lead feature is on Naseeb.com, a Pakistan based Muslim social networking venture tapping into the growing online Muslim population and has secured funding from prominent Silicon Valley VC's (also included is a list of top Muslim social//matrimonial websites). Given the termendous potential of the global Muslim market - we are introducing a dedicated section - the Muslim Lifestyle Market (SM) - to provide you with regular trends analysis/ stories on various products and services targeting the muslim lifestyle.
Given the potential role of cash rich Oil producing Gulf countries in supporting new venture and entrepreneurship, we summarize key insights from this years Gulf Venture Capital Association meeting in Riyadh. What stands out is given a boom in Private Equity investments, the risk appetite for investors funding startups is still limited. According to the GVCA, of the $4.8 billion private equity raised in 2006, only 9% went to venture capital.
However, many impressive world leading innovation initiatives are being undertaken in the region. Guest controbutor, Mr. Bilal Zuberi, PhD writes about Abu Dhabi's ambitious Masdar City project which aims to be the World's First Zero-Carbon, Zero-Waste, Car-Free City.
In profiling personalities, we review international journalist Riz Khan's biography of one of the most successful international investors today - Prince Alwaleed bin Talal. We have also introduced a new series on Women in Management. Keeping with the entrepreneuship theme, we profile Iman Kouvalis, President and Owner of Optimize It. and Na'ima B. Roberts, Managing Director and Editor of SISTERS Magazine.
In the issue, we also look at how Saudi Aramco and ADNOC fared in a recent global benchmarking Sustainable Oil Companies report. Finally, key strategic aspects of one of the most prominent Indonesian conglomerate Astra International are also reviewed.
This is Alhamdulillah our largest edition thus far. We hope this Issue has given you some new insights and ideas on innovating and being entrepreneurial in your own business environments.
Malaysia's governing party's poor performance in the recent General Elections held on March 8, 2008, introduces unchartered waters to the private sector with the national coalition losing 5 key states (instead of the usual one) to the keen opposition, Barisan Rakyat.
Barisan Nasional, the governing party, has been criticised to have continuously bred business interest in many different industries in the economy, including the automotive industry, oil & gas, construction and property sectors.
Petroliam Nasional Berhad (Petronas) is seen to have caused distress amongst Malaysians due to the continuous price-hikes over the past 4 years, twinned with a continuous boosts in profit figures. As a company fully owned by the government, the opposition coalition has stated in their election manifesto that they would request for transparent financial statements relating to Petronas' financial activities to be sucritinised in Parliament. There has been an irksome worry pertaining the transparency of Petronas' expenditure / allocation of funds. Petronas ranks at number 121 under Fortune Global 500.
Other companies have experienced project delays due to the changes in state governments. The construction sector, in particular, relies on government based projects and due to changes in government personnel and glitches in the handing-over of contracts and related documents, some projects have had to be put on hold.
Norma Kassim, a Business Development Manager for a specialist civil construction company, says her company is still "looking forward to their Letter of Approval [of a project] amidst the changes in state governmental fronts." Her company's project is affected by the change in Kedah's state government; with the main contractor belonging to the state's administrative body.
"Economic activity has slowed down for the time being," she adds, relaying the sensitivity of the current political changes. "I hope it will pick up by the end of the month."
Her concerns are justified. The Australian Business reported a market plunge in Bursa Malaysia due to panic selling and stock-dumping, which led to a temporarily closure of the Bourse on March 10. Prices continued to fall when trading resumed. The index closed at a 9.5% drop. To-date, the market remains bearish over concerns of the political adjustments.
Malaysia's 12th General Elections caused a stir in its political realm as nearly half of the votes favoured the coallition opposition party, denying the government their benchmark two-thirds majority for the first time in Malaysian history. In addition to losing 5 key states to the opposition front, Barisan Nasional suffered a 28% drop in Parliamentary seats and displacement of long-term members of the governing cabinet.
--- Views by Staff Writer Maria Zain