DinarStandard Editors

Indonesia Top 100 Innovations, Maktoob CEO, IT in Islamic Finance, US Muslim market, Ummah Leadership

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.

    

Top 100 Companies of the Muslim World, Dubai 2.0, Turkey looks East, Pakistan's UAV's

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.

    

Global Food & Energy Opportunities, Fulla Doll, Blue Ocean Strategy, Dr. Shamshad Akhtar, Egypt's SEKEM Group, and more.

Oct/Nov Edition: While developed countries are directing their attention to the turmoil in the financial sector--far less attention is being paid to the global food price crisis.  We lead our Nov. Edition with an analysis of how this crisis presents the agriculturally endowed Muslim countries with unique opportunities.  The analysis makes a case for investments within the largest agriculture economies of the Muslim world especially given their low productivity. Ironically, some of these largest agriculture based economies--Bangladesh, Sudan, Nigeria, Pakistan and Indonesia--are also suffering the most in terms of poverty.  Complimenting the story is our look at Egypt based SEKEM Group which has built a profitable organic products business based on a social developmental model.

Keeping with the theme of responsible business – our guest author Mr. Athar Mian reviews opportunities in Clean Energy for emerging Muslim world markets.  He evaluates various sources of clean energy – solar, wind, bio-mass, hydro-electric and others, and presents what makes sense for Muslim world economies.  

Much of such investments require big thinking and ability for investors and business leaders to step out of their comfort zones.  For this we review a best selling business book—Blue Ocean Strategy--that presents an approach to creating new markets rather than competing in existing ones.

In Islamic Finance, guest author Nurul Islam, looks at the European Islamic Finance market.  Also related to banking, we profile Dr. Shamshad Akhtar, Governor State Bank of Pakistan, in our Women in Management Series.  She was recently awarded Central Banker of the Year/ Asia 2008 by the industry recognized The Banker magazine.

Also, showcasing best practices and innovation in the Muslim Lifestyle Market, we present the success of ‘Fulla Doll’ an alternative for Muslim girls.  Finally, we present practical strategies relating to the growing practice of Search Engine optimization (getting listed higher on web Search Engine results) which is fast becoming a major marketing priority.

As always, we look forward to your feedback.

    

Muslim World Consumer Brands, Mobile Tech & Islamic Finance, Hikma Pharma's R&D...

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.

    

Intra-OIC Trade Up, Abdul Latif Jameel & CSR, The 99 Comic, Harvard Islamic Finance, Borusan Six Sigma...

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.

    

Naseeb.com, Gulf Venture Capital, AlWaleed, Masdar City, ARAMCO, and more

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. 

    

Mar 08 Edition: Emerging markets of Pakistan, Bangladesh, GCC; Islamic Banking Comparison; Mydin Marketing; M&A

In a global economy challenged by the prospect of a US recession, many emerging markets are gaining prominence in the eyes of investors and marketers.  DinarStandard's March 2008 issue is dedicated to a select group of such markets.  Our lead feature profiles Pakistan's resilient economy and its strong fundamentals - which amid a regular spate of terrorist attacks has also been attracting major  investments. With recent elections passing peacefully, hopes are renewed on Pakistan's continuing economic boom.

Another emerging destination profiled is Bangladesh.  From Nobel prize winning Dr. Muhammad Yunus's Grameen Bank to Solar energy supplier  - Rahimafrooz, a new brand Bangladesh is emerging and surprising investors all over the world.

Similarly, two stories cover the growing prominence of the GCC (Gulf Cooperation Council).  We review a newly published book by global strategist Mr. Aamir Rehman called "Dubai & Co.: Global Strategies for Doing Business in the Gulf States."  Meanwhile, guest contributor Mr. Ayman Mansi writes about Saudi Arabia's ambitious 10x10 program for economic development which aims to make the Kingdom one of the 10 most competitive nations in the world by 2010.

Tying the importance of Mergers and Acquisition within emerging market investments, we look at the rationale and benefits of M&A.

WIth Islamic finance increasing as a choice of investment financing and a growing interest of Islamic Finance beyond the GCC - Attorney Paul Wouters does a comparison of Islamic Banking in Turkey, Indonesia, Pakistan and Malaysia.

Finally, for a marketing case study, we look at the 4 P's of marketing being applied by Malaysia's indigineous hypermarket Mydin.

We hope this issue becomes another important contribution in assessing effective strategies for marketers focussing on the Muslim world markets.

Muslim World Business Sector continues to grow...

Today we release our Jan 2008 issue of DinarStandard and unveil the 2007 DS100.  This is an exciting issue for the DinarStandard team.  For the fourth consecutive year DinarStandard's DS100 ranking of the top 100 businesses in the Muslim World provides a reliable benchmark to understand the progress and overall state of businesses in Muslim World economies.  This year's ranking is noteworthy not only for the continuing effect of oil price driven revenue windfall for the Oil & Gas companies on the list, but also how these have impacted an even greater rise for infrastructure and service sector companies.  The 2007 DS100 had a combined US $1.08 trillion in total revenues (based on EOY 2006 data) and grew 14.5% over the year before.  As part of our efforts to highlight success stories in the corporate sector of the Muslim World this issue also includes profiles of Ulker Group of Turkey, Zain of Kuwait, and the leadership of Muhammad Alabbar of Emaar.  Readers will find with the DS100 Key Facts, brief profiles of some of the most exciting companies on the ranking and an industry breakdown.

This month DinarStandard also features an engaging question-answer with Shaikh Yusuf Talal DeLorenzo, a recognized Shariah Advisor, who recently seperated himself from the pack by questioning recent financial engineering efforts which effectively circumvent the standards of the Shariah rather than serving them. In an industry that labels itself Islamic - DeLorenzo takes up issues that will help to keep the industry on track.  To round out the finance side of things Guest Contributor, Rupert Neil Bumfrey, Principal at RNB Associates, writes about the rise of Sovereign Wealth Funds and their place in the globalized economic system. 

As always we look for our readers to write with their comments.  We are hopeful for a great 2008. 

June 07 Edition: Indian Muslims Inc. - Their Market & Global Business Impact

One of the premise of DinarStandard has been to highlight economic opportunities and challenges within the global Muslim communities that are not being given due attention even if they show tremendous potential.  The 151 million strong Indian Muslims certainly fall in that category. 

This months lead feature is a special report on the state of this Indian Muslim market.  We profile the huge population of Muslims in India who represent a mixed bag of prosperous local, regional and global business owners as well as those living in a dismal socio-economic state. We look at their market opportunity, as well as review successful Indian Muslim run businesses as partnership potentials.

Associate Editor, Sajjad Chowdhry continues his series of "Classical Innovators" taking a look at the perspectives of the great scholar Abu Hamid al-Ghazali on Ethics and Leadership.  Sajjad does a wonderful job of tying Imam al-Ghazali's Nasihat, or Advice, to the rulers of that time to the modern management/ business leadership responsibilities.

Covering practical Innovation insights, we look at how Eczacıbaşı Group, a Turkish conglomerate with $2.6 billion in annual revenues, celebrates innovation in its culture (that it says has directly contributed more than $80 million in revenues) through an annual Creativity and Innovation Awards for its 37 Group companies.   On Turkey, Guest contributor Mr. Paul Wouters examines the current state of and the exciting prospects for Islamic Finance in Turkey.

We are proud to introduce Dr. Mohammed Badi, a consultant with a leading global consulting firm, as a guest contributor.  He will be sharing with us global best practices/ frameworks in strategic planning and applying them context of Muslim world economies.  He begins with looking at the 'Experience Curve.'

Finally our regular guest contributor Mr. Anthony Mitchell presents his Ten Rules of International Branding.

We hope this issue will be valuable to many in gleaning some strategic tips, markets and opportunities.  Let us know of your feedback.

Oct Edition: Finding Innovation Opportunities

For business innovators such as the new phenonmenon's Google and eBay to the more established Proctor & Gamble and Samsung, 'change' serves as their biggest innovation driver.  This assertion is backed by none other than the legendary management consultant, Peter Drucker, who had said, "Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service."

The October DinarStandard edition is all about identifying and assessing the biggest change opportunities facing a new generation of business leaders from the OIC (Organization of Islamic Conference) member countries.  We lead off with DinarStandard's analysis of ten specific trends that provide the greatest opportunities for entrepreneurs to innovate and lead.  From the emerging capital markets and venture capital culture to the opportunities related to Web 2.0 social networks and unprecedented global connectivity, the ten trends broadly cover macro-economic, demographic, social, management, and science & technology developments.

Mr. Athar Osama, a senior executive of an international technology and economic development consulting firm, picks up on one of the trends category and provides an analysis of both current state of scientific research in the OIC member countries as well as strategies to further promote it.   

Mean while, Associate Editor, Mr. Sajjad Chowdhry juxtapositions some of the management opportunity trends addressed with that of the 14th scholar, Ibn Khaldun's.  He continues his series of drawing lessons from classical innovators by presenting Ibn Khaldun's thoughts on leadership and work, culling from the scholars' great magnum opus - the Muqaddimah.

Finally, Mr. Shahriar Amin, Deputy Brand Manager, GrameenPhone Ltd. provides a cautionary note against the growth objectives of the Opportunity Trends by discussing the negative impact un-checked growth can have on brands.

We hope the ten trends and the associated perspectives provide some practical insights for entrepreneurs.  These are not meant to be perfect, but provide enough perspective on opportunities that can drive innovation in the near future.