Dubai: Parting Glances

Entrepreneurship Observations: Entrepreneurship is far subtler in Dubai as compared to Cairo. We didn’t see any obvious necessity entrepreneurs. No road-side vendors. No blatant tourist-related scams. Emirate entrepreneurs, like most American, appeared to blend seamlessly into the business landscape. Not surprisingly, many of the groups in our class found it difficult to identify and interview start-ups. As in Cairo, there were an abundance of American franchises in Dubai. Upon entering the Mall of the Emirates, one immediately notices Starbucks and Krispy Kreme (clearly these are a civilized people to have such basic staples). Like Cairo, the city also has the usual fast-food companies as well as a large share of American and European clothing stores. Given adequate start-up capital, this may be a viable market for entrepreneurs.

Dubai Horticulture: Unlike Cairo and Luxor, Dubai has no surface freshwater. Their drinking water is obtained either from groundwater or desalinated seawater. But this doesn’t stop the City from growing lush landscaping. Vast networks of soaker hoses line gardens and the sides of the roads to irrigate the plantings. In this way, the city is a lot like Las Vegas or Palm Springs – artificially green within the City Limits, but surrounded by vast deserts.

Soaker hoses used for irrigation.

Desert horizon at city limits.

Dubai’s Challenges: Dubai is fortunate (or not, depending on your point of view) to be in the throes of serious growing pains. Everywhere you look you see construction – buildings, roads, even a state-of-the art monorail Metro system. As it stands so far, the Dubai government has done an admirable job of trying to keep their infrastructure in pace with the city’s growth. In fact, the Sheikh has gone one step further by actively promoting and investing heavily in “green” construction methods that should reduce the overall stress on the city’s resources. The one caveat with the explosive growth is the rising cost of living (and, not surprisingly, cost of doing business). Nearly everyone we met with cited this as a significant hurdle to sustaining business growth. This may effectively hinder the influx of start-ups and limit the business community to multi-nationals who can afford to open offices in the UAE. Superficially this may not seem like a serious concern, but there needs to be a balance of small businesses (dry cleaners, taxi services, restaurants, etc) to support the larger corporations in order to have a truly thriving business environment.

Dubai’s Multi-Ethnic Culture: Dubai is home to 1.2-million individuals – but only 20% are native Emirates. The remainder are expatriates from India, Pakistan, Europe, USA and other countries around the world. In fact, during our stay we only met with a handful of “natives.” This melting-pot effect gives Dubai a tremendously cosmopolitan feeling. Walking around town you are exposed to a myriad of different languages, music, and restaurants. At times we had to remind ourselves we were in the Middle East and not on the sub-continent. Another side effect of this cross-cultural mish-mash is the apparent acceptance of different ways of life. So much attention is given to how Western culture is so different from that in the Middle East – but (at the risk of sounding trite) the facts are that we’re really not so different at our core.

Mass Marketing: We noticed a major difference in the mass marketing and advertising in Egypt and Dubai compared to the United States. Egypt’s most abundant form of advertising appeared to be billboards. Everywhere we looked there was sign after sign – sometimes only a few feet apart. After speaking with several entrepreneurs, the consensus was that Egyptian businesses have not yet discovered guerrilla marketing (door-to-door personable marketing). They use mostly radio ads, television ads, and billboards because that is all they know that works.

Dubai has a similar situation. Driving down the roads, we saw sign after sign and print advertising was profuse. Dubai appeared to be more advanced than Egypt, but only used little guerrilla marketing compared to the United States.

Architecture: In Dubai a building is considered “old” if it was built in the 1980’s. The Jumeira Mosque is the city’s oldest mosque and it was only built in 1979. This slightly different compared to Egypt where they have structures dating back 5,000 years. Dubai’s motto seems to be “Bigger, Grander, Faster.” From the tallest buildings in the world, to the world’s first 7-Star hotel, to man-made islands for new residential communities – the city is literally exploding with construction everywhere you look. The pictures we took of the skyline will literally be out of date by the end of the summer. The speed at which buildings are built is breathtaking. Construction crews work around-the-clock. This town is a must-see for architecture junkies.

Dubai skyline from our hotel as of May 29, 2008.

 

May 30
Dubai: Day Five and the Last Hurrah

Today was our last day in Dubai and we were fortunate to have the day off from school-related activities. Our group scattered throughout the city like we did in Amsterdam. A group of us headed to the beach to bake in the sun and swim in the Gulf of Arabia (NOT the Persian Gulf - that is a name that hasn't been used in this region for generations) where the water was crystal clear and perfect. Another group headed to the Mall of the Emirates to do some last minute shopping. The more adveneurous went skiing and snowboarding at Ski Dubai - an indoor snow ski facility. Dubai loves to take things to the extremes.

Our check-out from the hotel was at 3 p.m. after which we had our official tour of the city and some of the cultural sites we hadn't had a chance to see. Stop #1 was Jumeira Mosque - one of the oldest and largest in the UAE dating back to 1979 and accommodating up to 1,200 people.

We then went to the Dubai Museum to learn about the history of the city dating back to its original settlement by Bedouin tribes. We learned that the original inhabitants relied largely on fishing and pearl farming. The region thrived on trade with Europe and the Asian sub-continent. After the discovery of oil, the city proceeded to grow to what it is today. However, oil accounts for only 5% of Dubai's GNP - unlike its oil-rich sister Emirate Abu Dhabi. Like any savvy business person, the Sheikh is strategically aligning Dhabi as a tourism, banking and commerce center to ensure the continuation of his legacy after the oil reserves are depleted or no longer financially viable.

The next stop was Dubai Creek - an 8-mile inlet off of the Arabian Gulf and the site of the original founding of Dubai. Here we took a wooden boat-taxi ride across the creek to the Spice and Gold Souk (outdoor market).

May 29
Dubai: Day Four and the Education Summit

Throughout our stay in Dubai, we have gained extensive knowledge through meetings with multiple companies and the growing opportunities Dubai has to offer to foreign investors and entrepreneurs. Booz & Company (formerly Booz Allen Hamilton), is an American-based consulting firm founded in 1914 that has been in Dubai for more than 30 years. Vice President Mr. Ibrahim El- Husseini briefly gave us an overview about the company's history and the various office locations that exist in the region. Currently, Booz has five offices, ten partners, and over 300 client staff employed at the Dubai branch office. Also, the majority of staff are new - transfer staff make up a significant portion of employees at Booz. The Dubai office has enjoyed a growth rate of 50-60% over the past several years, keeping in step with the growth in the region. In fact, it is the company's fastest growing and most profitable location.

Mr. Andrew Howecastle, Principle in the Energy Consulting, discussed some pointers for starting a business in Dubai. These included considering the use of a consulting firm to increase assist in local networking to increase the value of the business proposition (not surprising advice coming from a consultant). He also stresses the importance of establishing local relationships with all levels of government agencies, business people and talent - knowing the system from the top-down may increase the efficiency of a new businesses endeavors. One of the biggest challenges he sees for business in the region is the acquisition and retention of talented staff - a problem compounded by rising pay rates and inflation.

He also gave us more information regarding the "free zones" established by the Dubai government which have done a great deal to promote entrepreneurship in the city. He also told us that there is a lack of quality services in all sectors - a prime environment for ambitious businesspeople.

Our next stop was at Dubai's Knowledge Village where we were hosted by Szabist Institute of Science and Technology out of Pakistan. The school is one of several branches located throughout the world. It was founded by the late Benazir Bhutto and is named for her father Shaheed Zulfikar Ali Bhutto (hence the acronym SZAB Institute). They have been identified by Business Week as among the best business schools in the world for five consecutive years.

The students in business school recently conducted a Corporate Social Responsibility workshop with 48 local businesses (including heavy-hitters such as HSBC and LG). We were fortunate to be the second recipients of their excellent presentation which included several team-building exercises and a frank and open Q&A session. Among the panelist was the owner of a website (www.dubaibeat.com) that identifies local Emirate entrepreneurs. The students and faculty were extremely gracious and hospitable and we thoroughly enjoyed the chance to meet with them and exchange ideas.

After returning to the hotel, most of us went out for a night on the town. Dubai does not have a shortage of night-life. Many of the clubs and lounges were reminiscent of South Beach in Miami - the beach, the skyline, the beautiful people. It was great to have a chance to see the fun side of the city we've been studying for so many weeks.

Aimee, Stephen, Lee, Fazana, Keith and Christa paint the town

May 28
Dubai: Day Three - What Can Brown Do For You, 7-Stars and Sand in Our Shoes

Another day, another visit with an Atlanta-based company. Today it was UPS who has a distribution hub serving the northern Emirates located here in Dubai. Our hosts were Brett Calvert and Brent Melvin, two South African ex-pats working in Dubai. UPS has been here for 13 years and currently employs 200 full-time individuals. Their operation, which runs 24-hours/day, has grown 25-30% each month - a testament to the growth of business in the Gulf Region. Nearly 95% of their business is deliveries to companies - and given the fact that there are no addresses in the UAE, this is a point that works to their advantage. Instead of addresses, deliveries are identified by phone numbers (which include a code indicating specific parts of the city) or landmarks.

Our visit was concluded with a presentation about UPS as a corporation and their operations in Dubai. In accordance with Emirate law, their operation here is a joint-venture with a local company - although they outwardly appear and operate like any other UPS branch.

Brett Calvert of UPS UAE

Musu getting ready for a delivery

After our visit with UPS, we headed to the Burj-al-Arab for lunch and an opportunity to play tourist. We ate at Jensui, an Oriental restaurant located in the hotel. The food was excellent and the service was nothing short of perfection. Just what you would expect from the world's first 7-Star hotel.

The hotel itself is a sight to behold. Words cannot do it justice. Anything that shines in the hotel is gold - in fact there are over 8,000 square meters of 22-karat gold leaf. The interior fountains are an engineering marvel. The price tag for a room (starting at $1,500/night) is breathtaking. Still, it was nice to see everyone dressed up - even though there was a fair amount of sweating going on because of the heat.

We ended the day by heading out for an evening in the desert for an evening (after a quick change of wardrobe). As it turns out, this was one of most unexpected highlights of our stay in Dubai. We were picked up in several Toyota Land Cruisers around 4 p.m. and were driven out to the desert where we did Sand Dune 4 Wheeling (for lack of a better term). Think of it as a roller coaster with airbags.

We then stopped by a camel farm - but not before seeing several herds of camels in the desert. Then it was off to a "camp" run by our tour guide company where we tried our hand at sand-boarding, got henna tattoos, ate a delicious barbeque dinner, and learned how to belly dance.

Musu, Christa and Fazana strike a pose while Tonia tackles a dune.

Lee showing his wild side while sand-boarding and flaunting his new henna tattoo with Emma.

Stephen, Marisol, Yasmeen and Christa at the desert camp

Will gets a lesson on how to shake his money-maker.

 

May 27
Dubai: Day Two and a Meeting with the City Makers

Today we had a fantastic visit with an architect from the Atlanta-based design firm TVS (Thompson Ventulett, Stainback & Associates Inc). TVS is the brains behind such Atlanta landmarks as the Georgia Aquarium, the Georgia Dome and the Georgia World Congress Center. Our host today was Gary Fowler, one of the Principal architects. He has been in Dubai for 7 months - although he has been traveling and working in the region for over two years. The company opened their office in the UAE over 5 years ago. Currently they are working on a landmark project (even by Dubai standards) - the Dubai Towers (see rendering below). Once completed in 2012, the project will be a gorgeous monument and a testament to architectural achievement.

Despite the fact that the Dubai office isn't a traditional entrepreneurial endeavor, we couldn't pass up the opportunity to sit down with a fellow business person from Atlanta who might have some perspective on how our two cultures differ. Gary didn't disappoint us.

From an architectural design standpoint, the major difference Gary pointed out is a desire by the Emirates to have beautiful and unique buildings. Architects and designers are respected for their abilities rather than treated as a commodity. Building cost doesn't play as critical a role as it does in the States.

Interestingly, despite having significant oil reserves and low energy costs, the Emirates are surprisingly progressive when it comes to energy efficiency. In fact, the government has mandated that all new buildings shall be LEED Certified as of January 2008. Individual building owners are now trying to one-up their contemporaries by having more-and-more "greener" buildings.

Like so many of our other interviews, Gary cited the rising cost of living as a challenge to doing work in the UAE. He lives with his wife and youngest child a short walk from the TVS office and, despite a generous allowance, had to shell out cash from his own pocket to secure the apartment.

For more information from our meeting with Gary, check back for a video of our interview!

Video: Interview With GaryFowle (by TVS)

Will, Tonia, Gary, Musu and Lee

Dubai Towers currently under design by TVS

HAPPY 21st BIRTHDAY TO WILL!!!

 

May 26
Dubai: Day One and Our Introduction to The Shining City

We arrived in Dubai shortly after midnight this morning on an Emirates Air flight. It's fairly obvious why Emirates is being hailed as the most luxurious airline - even in coach we were comfortable during our 4 hour flight from Cairo. Wide seats that lean-back comfortably (without pinching the legs of the person behind you), more in-flight entertainment at your seat than you could possibly need, and an attentive flight crew.

Upon landing we were struck with the sleek and modern airport. Outside we saw shiny new cars everywhere and a large number of SUV's. By contrast, we saw very few new cars in Egypt and the only SUV's we saw were a few Jeeps (except for around the American Embassy where there were quite a few US-made SUV's). Dubai's skyscrapers were all lit up in fine fashion and we saw several construction crews still working on buildings and new highways at 1:30 A.M. as we were driving to the hotel. Construction cranes really do punctuate the skyline everywhere you look.

Dubai Skyline, including the world's tallest building under construction (bottom photo)

After a few hours sleep we headed to The Apple International School. Established in 1994, The Apple International School is a British curriculum school that places high value on educating kindergarten through senior grade levels. The school is multi-cultural, representing many of the various countries represented in Dubai including India, Sri Lanka, Pakistan and Sudan.

We spoke with the General Manager of the school, Mr. K.S. Pradeepkumar, the Principal, Mrs. Nita Maitra, as well as one of the founders, Nabil Lahir. They told us that, at the time the school was founded, there were very few schols in Dubai. As the number of foreign expatriates grew, the Lahir family saw a need for private education. Given that they had been in the education industry for 30 years in their native India, starting the school was a natural step. In fact, they were able to self-fund the new school in Dubai using revenues from their Indian operations.

Some of the challenges that the administrators related to us include the on-going need to find the right people for their staff. Both the school and the UAE Ministry of Education have strict guidelines for teachers including post-graduate degrees as well as teacher training certification. Each potential candidate must be approved by the UAE Ministry of Education.

Another challenge involves the various religious and cultural backgrounds of the students and their parents. This all but eliminates the possibility of any type of reference to prayer and requires equal acknowledgement of various cultural holidays.

The school prides itself on its reputation, which minimizes the need for any large-scale marketing. Their graduates typically go on to college either abroad or in the UAE. Several top American and European universities have opened branches in the UAE, making the country one of the best educated in the region.

The administrators discussed their plans for future growth, fueled largely by the exponential growth of Dubai. Coincidentally, Nabil Lahir also owns a construction company which will continue to aid in the growth and maintenance of the school.

One interesting cultural note: one of our classmates, Chris Dumas, asked about co-ed education in the Middle East. They told us that the students are taught together up to the 4th Grade after which the classes are segregated by gender. The fact that the Principal is female didn't go unnoticed; when asked about her experiences she said that she has needed to be bold, honest to herself and not compete with anyone but herself. She went on to say that one of her main objectives is to instill values throughout the curriculum. As she so eloquently put it, "Values must be caught, not taught."

Students and Faculty of Apple International School

Friendly Classroom at Apple International School

Later in the afternoon our team went to YouGov's Dubai offices (www.yougovsiraj.com). YouGov is an international boutique market and consumer research company. The Dubai branch was purchased in 2006 and was originally started in 1999 by Ms. Lina Nahhas and Mr. Nassim Ghrayeb. They currently employ around 60 full-time employees throughout the Middle East region. The name of their original company, Siraj, is an Arabic word meaning "The light from a lantern."

We were introduced to Lina and Nassim through Jamie Wanskey, a GSU Alum and ex-pat living in Dubai and working for YouGov. She and her husband, Andrew (also a GSU Alum), were instrumental in arranging our interview with YouGov. HUGE thank-you to them for lending a helping hand!!

Lina and Nassim met in college while in Canada. Lina was born in Dubai and Nasim is Lebanese, however both are Canadian residents. This posed an interesting dynamic because, at the time they started the business, Dubai laws did not allow residency for individuals who are not native Emirates. They had to find a native-born "sponsor" to legitimize the business. This sponsor was legally entitled to 51% of the business revenues under Emirate law.

Over the past three years the laws have evolved by which expatriates can establish businesses within various “free zones.” The free zones are areas which have been designated specifically for businesses in the service industries (no physical goods can be sold). The zone acts as the local business sponsor to generate revenue by attracting businesses. The foreign-owned businesses then report to the sponsor-free zone which operates as a liaison between the business and the government to obtain the proper licenses needed to operate in Dubai. The free zone thereby allows new businesses the opportunity to own their businesses.

Lina and Nassim both credit the progressive Dubai government for promoting entrepreneurial growth in the region. However, they both acknowledge the challenges of drastically increasing costs of living and the difficulty in finding, hiring and retaining qualified staff - a challenge that is increasingly relevant during the past several years during which time they have enjoyed triple digit growth.

Despite their recent sale to British-owned YouGov, Lina and Nassim remain active and integral to the daily operations. They maintain a healthy degree of autonomy and have an excellent relation with the company president, himself an entrepreneur. The sale has allowed them to upgrade their technology and focus on their passion for the work. However, Nassim quipped that "It used to be profit for pleasure, now its profit for shareholders." Still, their successful exit strategy appears to have worked well for both them and their new parent company. For more information, check back for a video of our interview!

Video: Interview With YouGov Siraj

Jamie Wanskey (GSU alum and YouGov employee), Lee, Tonia, Musu, Will, Lina and Nassim

 

Egypt: Parting Glances

Entrepreneurship Observations: Entrepreneurship is everywhere in Egypt. Although the government doesn't keep statistics, we were able to see "entrepreneurs" everywhere. Most of the more evident entrepreneurs appeared to be working out of necessity: papyrus vendors outside of the Museum, fruit and bread vendors on the roadside, as well as the vendors in the bazaar and other tourist destinations. We also learned that Egyptian law prevents anyone from owning more than two pharmacies - so you'll never see a CVS or Rite Aid in Cairo. What you will find is a plethora of pharmacies owned individually either by the pharmacist or his business partner.

One apparent opportunity for entrepreneurs in Egypt is the franchising of American companies. We saw all of the usual suspects (McDonalds, KFC, Pizza Hut), but we also saw TGI Fridays, Radio Shack and several clothing retailers. The acceptance of American products by the Egyptian, and the quality associated with American-made products, has created a society where franchises have an excellent chance of thriving. It was curious to note that we didn't see any auto parts stores - strange considering the large number of cars in greater Cairo. Perhaps Egypt is ready for an AutoZone or Pep Boys franchise.

Nile Valley Horticulture: One of the biggest surprises we experienced is the lush vegetation in the Nile valley. In addition to numerous date and palm trees, bouganvillea thrives in this oasis as do mimosa trees, oleanders, ficus,hibiscus, lantana and a strange looking tree with 2-3 inch thorns that sprouts cotton-like flowers during the night. While at the pyramids, we were struck by the contrast of the stark and desolate desert to the east and the green lushness of the valley to the west (see aerial photograph below).

Bouganvillea vines and Mimosa Trees

Thorny Tree with Cotton-like Blossoms

Lantana

Nile Valley located in Saharan Desert - note the Nile River winding along the eastern edge

Agriculturally, the valley is used to grow fruit, corn, sugar cane and other staples of the Egyptian diet. Farmlands are irrigated through a series of man-made canals that criss-cross the landscape outside of the city. Water is pumped from the Nile into these canals as needed using either modern gas-powered pumps or more utilitarian devices such as the one shown below.

Cairo's Challenges: Like most major metropolitan cities, Cairo is faced with a number of challenges - most prominently pollution and traffic. The City is served with a Metro system, street cars, busses and other forms of public transportation. However most of their intersections are directed by police officers; one person jokingly told us that traffic lights were purely ornamental (as are lane markings). Heavy traffic congestion is common at all hours (except for early Friday, which marks the start of the weekend in the Islamic world). The Egyptian driving style might be best described as "free style."

We observed one challenge that may be unique to Cairo - the need to sweep large amounts of sand (by hand) from the highway. Being this close to the desert, sandstorms are not uncommon - especially in the early Spring. This may be a factor in the visible air pollution - sand particulates combined with vehicle emissions. One of the people we met with indicated that respiratory conditions are common as a result of the air quality - a problem we are familiar with in Atlanta as well. Water pollution is also an issue. The Nile is not unlike our Mississippi River - both rivers drain large areas and flush the pollutants out to sea. Cairo (and Alexandria downstream) bear the brunt of this just as New Orleans deals with it in the US. In fact, the Nile stretches over 4,000 miles and drains portions of 8 African countries, making the problem one that extends well beyond Egypt's borders.

Egyptian Fashion: Walking the streets of Cairo, you see beautiful colors, prints and beautiful material. The fashion is not what one would expect. Women were beautiful wearing colorful veils which matched with their outfits. From traditional to moderate, the clothes ranged from traditional robes for the women to suit and ties for the men. From the younger generation to the more reserved generation, the fashion was definitely an experience. Women wearing suits, dresses, trendy veils and denim skirts, gave a unique appeal. It is truly an Egyptian Fashion experience, showcasing the best apparel Cairo, Egypt has to offer.

Architecture: Downtown Cairo is an architectural smorgasbord. The buildings range the gamut from Art Deco, 60's Modern and Contemporary styles. It really is something to behold. The diversity of the buildings - the diversity of their uses (businesses, residences, shops, and markets) could be a model for high-density urban living.

Security: The Egyptians took excellent care of us in Cairo this week. We were escorted at all times with a member of the Tourism Police. Most of the times we were also escorted by a police vehicle to ease our commuting through Cairo traffic. The hotel also had excellent security with manned gates and an in-house police mini-precinct. Nearly all of the public buildings we visited had metal detectors with security guards posted at the entrance. If anyone thinks Egypt isn't safe, we can tell them otherwise. They are wonderful hosts.

 

May 24-25
Luxor: Two Days of History

Map of Upper Egypt - Cairo located in the north, Luxor located at the lower bend of the Nile

After leaving Cairo, we arrived in Luxor around 8 pm - and the temperature was still flirting with 100-degrees. Luxor, formerly called Thebes, is located about 320 miles upstream of Cairo by air. It is home to slightly newer historical landmarks (circa 1,500 BCE as opposed to Giza's 3,000 BCE estimated dates). At first glance, the mountains surrounding the city are reminiscent of the American Southwest.

During our brief 36-hour tour of Luxor we learned a great deal about ancient Egyptians. We learned that Egyptian settlements are always on the east of the Nile, while the burial locations are located to the west. This stems from their belief that, when the sun sets in the west, it enters the underworld where the dead dwell. We also learned about Hapshepsut, one of the greatest pharaohs (male or female) Egypt has ever seen. Her legend is not as prominent as other pharaohs as a result of a campaign by her step-son after her death. However, archaeologists are slowly coming to realize her importance in the ancient world.

After our 5 A.M. wake-up call (we kept saying that it was only 10 P.M. in Atlanta), we visited the Valley of the Kings where King Tut's tomb was famously uncovered. The site is also home to the final resting places of over one dozen other pharaohs. We were allowed to tour three such tombs - although photography inside the tombs was strictly prohibited. We can report that the detail of carvings and paintings - still vivid to this day - are awe inspiring.

Lee at the tomb of Ramses II and Group Shot in Valley of the Kings

We then traveled to the Valley of the Queens where a large temple is literally carved into the side of a mountain. Cameras were allowed here, although the tomb was closed for restoration.

Valley of the Queens

Musu, hieroglyphics, and Will enjoying an obelisk at Valley of the Queens

Entrance and Ante-Chamber to Karnak Temple

Lee and Tonia embracing history

Hassan (our fantastic guide), Zoe, Musu and Siva at Karnak Temple

Luxor Temple, located 2 miles from Karnak was originally connected by a avenue of sphinxes. Luxor was built as a shrine to Amon Ra's wife and is considerably smaller than Karnak. This temple is extremely unique in that it has housed shrines to three distinct religions: Ancient Egyptian, Christianity and Islam.

In the mid-20th century, archaeologists discovered that hieroglyphics were located under a Christian fresco in a portion of the temple. The fresco was painted on plaster covering the original artifacts by Christian invaders. Consequently, this portion of the temple has double the historic meaning and is being preserved through the efforts of US AID. In addition to the Christian artifacts, the temple is home to an Islamic Mosque built into the superstructure.

Entrance to Luxor Temple

Tonia and Musu at entrance - Christian frescos over hieroglyphics at Luxor Temple

 

May 23
Cairo: Day Six and Shake & Shape

There comes a time in someone's life when they encounter someone with drive, passion and sheer inspiration. Noha Hassan, the owner of a ladies only fitness center and dance studio is more than an entrepreneur, she is awe-inspiring. Originally from Egypt, Noha spent several years in the US, working for a telecommunications company in Maryland. After gaining experience and no longer feeling challenged she decided to return to Egypt. Here she began attending fitness centers, most of which are well known American franchises, and noticed that they did not cater to women - particularly to Muslim women. The membership fees were expensive and the women and men were in classes working out together. Noha recognized the opportunity to open a fitness and dance studio which caters to ladies only.

She started the business four years ago with a partner and later bought the partner out. In the beginning, she was moonlighting, working 12 hours a day at both a day job and with her new business. After three year of juggling both careers, she left her job and began training as a fitness instructor. In her business plan, she projected breaking even after a year in business. Actually, the revenue she made by her third month in business covered the initial investment (a personal savings of moderate value).

The reason she started the business was to gain financial stability for the future, flexibility and to localize a ladies-only fitness center which empowers women. The factors of her success are localization, a multi-cultural environment, educating the consumer (change image of fitness) and retention. Shake n' Shape offers more than aerobics and dance, it fosters an environment which women can come, feel comfortable in their workout clothes, remove their veils and feel good about themselves. She has classes of 25 women and has such a demand for the classes that she is currently looking for more space to accommodate additional clientele.

Noha Hassan, is a young woman entrepreneur who is professional, persistent and passionate about empowering women to feel and look good. She challenges women to open their minds, encourages them to persevere and supports them when needed. She embodies the essence of an entrepreneur on all levels. Ladies, let's get ready to Shake n' Shape.

Video: Interview With Noha Hassan (Shake n' Shape)

 

May 22
Cairo: Day Five and the Heart of the Matter

If yesterday was an introduction to how entrepreneurial policies are made, today was a crash course in how the work gets done. Our day started at the Cairo offices of US AID. (Again, this was a no-photo zone, so we don't have any pictures of this visit). This organization, which operates under the Federal State Department, was established in 1961 by President Kennedy under the Foreign Service Aid Act. Its goal is to help developing countries enhance their infrastructures and policies to better promote a prosperous society. The organization is very decentralized - "missions" in various countries are largely allowed to make decisions without interference from State-side influences. While they don't directly provide assistance to entrepreneurs, they do work with local governments to promote more business-friendly environments. In Egypt this is evident by the recent efforts to reform the local customs process, thereby streamlining the process for importing/exporting goods.

Our host was Dr Joe Ryan, head of the Policy and Private Sector. Dr. Ryan holds a PhD from UC Berkeley and has served in various countries with US AID. He described their operation as primarily training and development assistance. Ultimately, their mission is to work themselves out of a job by helping to raise the economic status of foreign countries. He cited "graduates" of the program which include Turkey, Taiwan, Eastern Europe, South Korea and others. One of the frustrations voiced by staff is the fact that they are prohibited by law from advertising their successes in the United States. As a result, many Americans don't realize what excellent work they are doing. This is especially true this year because the local Egypt budget has been cut from $415-Million to $200-Million in the upcoming fiscal year.

When we left, we were joined by Mohamad Radwan, Managing Director of Platinum Partners, a local Business Consulting firm. Mohamad has extensive experience throughout the Middle East as well as in America. He rode with us on our bus from US AID to an exotic Egyptian restaurant where we had lunch. Its name was TGI Fridays. He was extremely helpful in answering questions we had regarding the comparison of entrepreneurship between the US and the Middle East. His expertise also provided insight between Egypt and Dubai, which was an unanticipated bonus. He told us that "necessity entrepreneurship" is far more prevalent in Egypt than Dubai. He went on to say that the system in Dubai allows for smoother and easier start-ups, although that benefit is tempered by the expensive operating costs. In Egypt, he recommends start-ups based around consumer-based products (as opposed to service-based) because the large population can better support it. Egyptian government support and promptness has greatly improved in the past several years. Additionally, the government is in the process of implementing an e-government service program which will further help entrepreneurs in Egypt.

Mohamad Radwan speaking to group on bus and TGI Fridays

Our next stop was at the offices of the Social Fund for Development where we met with three of their most inspirational success stories. Each of the entrepreneurs spoke with the aid of an Arabic-English translator, which made for a more realistic view into Egyptian grassroots entrepreneurship.

The first speaker, Soraya Helay, started her business as fluke when she gave a friend a homemade gift - a cloth garment bag. The friend was so impressed, she asked her to make some more for an exhibition. Her products were a moderate success resulting in an initial order of 700 Egyptian Pounds. Thus her business, Silk & Silk, was started with an initial capital of around $10US. Through years of trial and error, loans from the SFD, and challenges with business partners, she has become an inspirational success to start-ups (both male and female owned) throughout the Middle East. She stated that a businessperson's greatest assets are their integrity and honesty - two virtues that should not be compromised for any reason. She also extolled the virtue of treating employees kindly and with respect. She uses the analogy of being a mother to her staff to ensure their happiness and ultimate loyalty.

The second speaker, Mohamed Abdel Baseet, was a gentleman who started a handmade ceramic tile business - Pottery Works. He bootstrapped his start-up after being inspired by a college professor. Like the other entrepreneurs, he attributes much of his success to financing made possible by the SFD. Today he produces over 2,000 different items and has signed contracts with several large clients throughout the Middle East. His operation has expanded to include many rural villages in Egypt where his tiles are produced. His success has attracted the attention of foreign companies interested in buying his company - but his loyalty to Egypt has prevented him from entertaining any such notion. He closed his comments by stating that a person should find a business in which they have passion - this is his secret to success.

The final entrepreneur at SFD was a Iman Abdalla, who started her own prosthetic manufacturing company. The idea for the company came after the tragic death of her husband - which left her as a widow raising their children at the age of 21. Prior to starting the business, she worked with prosthetic manufacturer for 6 years to learn the business. Today she has business nearly 10 years and considers her business a humanitarian outreach effort. Despite the harsh working conditions - conditions that are usually reserved for men because of the strength required - she still seemed to get teary-eyed talking about how hard it is to work with disabled patients to get the proper measurements for their custom medical appliances.

Our final stop of the day was with one of the top Social Entrepreneurs in the Middle East - Dr. Magda Iskander. Dr. Iskandar started Care With Love in 1996 after discovering the need for in-home health care after taking care of her elderly mother. Egypt's lack of senior living facilities and hospices provided the niche that her non-profit business has filled. Their vision is to enable individuals with health needs to stay at home while creating new job opportunities for young people. The organization trains in-home care givers in their downtown Cairo offices. The intensive training program lasts 60-days during which trainees are carefully screened, monitored and coached in first aid and how to best work with the elderly. Today her organization has 210 employees, 190 of which are caregivers. They have a waiting list of clients and have expanded to Alexandria and developed strategic partnerships with NGO's and government ministries. In addition, she has partnered with Friends of Children With Cancer - an organization dedicated to the care of children with cancer and their families.

 

May 21
Cairo: Day Four and a Day with Policy Makers

During our pre-trip classes in Atlanta, many of us questioned how and where Egyptians and foreign entrepreneurs such as American can receive funds or information to help them establish their business in Egypt. So today we started off by visiting the American Chamber of Commerce of Egypt (AmCham) to get a clearer picture of what the organization does and what types of programs were available to assists entrepreneurs looking to invest in Egypt.

We spoke with Mohamed El Kalia, Co-Chair of the Education Committee, and Ms. Hanaa El Hilaly, Director General for the Social Fund for Development (SFD). They discussed their role in AmCham and the organization's involvement in other organizations. The SFD is an organization that facilitates job opportunities for young entrepreneurs, caters to the lower class sector of Egypt, and conducts advertising to promote awareness about the organization. It is a very transparent organization. It is neither pubic nor private, but it has a civil society. The focus of all activities in the SFD is broken into three groups: Awareness, Advocacy, and Services. As stated, publications and events are created to promote awareness about the SFD. Advocacy involves committees, conferences, door knock missions, and visiting U.S delegations as a means of networking. Services that are provided are trade alert services, breaking tenders into groups, conducting feasibility studies, and educating and training individuals.

One of the many great assets that SFD has is the "One Stop Shop." It is somewhat similar to the one stop shop we have at Georgia State, being that it is there to help individuals answer questions and help them get on the right track. The One Stop Shop here in Egypt also provides information on different types of investment, taxation, and representitive facilities. She also addressed the relatively new phenomenon of micro- and small-financing and the successes they've found in Egypt. Throughout our meeting with Ms. Hilaly we were touched by her deep compassion and excitement for the organization.

We also spoke at length with the Executive Director, Mr. Hisham Fahny. He detailed AmCham's mission and gave us a brief description of how they go about promoting favorable business relations between our two countries. He also discussed the nuances of business in Egypt such as the lack of bankruptcy protection and the risk of jail time if a business venture fails.

On our second stop today we visited the American University of Cairo, which is a small University that has about 5,000 students enrolled. The University is incorporated in Delaware and their US office is in New York. The University dates back nearly 90 years, making it the first English-speaking university in Egypt. In 2004, there was a course provided by AUC to help undergraduate students in entrepreneurship because in the past, Egyptians primarily sought work in the government.

We met with Dr. Sharif who teaches in their management department. The University's Entrepreneurship Society (ES) is the most popular social networking club that was introduced to AUC in 2004. ES plays a major in providing seminars, bringing speakers and holding competitions implementing business plans. We were fortunate to also meet with two of the student leaders of this dynamic organization, Lila and Selma.

Dr Sharif addressing the class - Tonia, Lila, Jewelle and Selma

Our final destination of the day was spent at the U.S Embassy of Egypt. (This was a no-camera zone, so forgive the lack of photo-documentation.) There, we were greeted by Mrs. Christina Sharkely, who is the Commercial Attache. She gave us a wonderful presentation on "How to do Business in Egypt" and informed us that we need to take advantage of the Embassy's resources because we pay taxes for them!!! Throughout Mrs. Sharkely's presentation she gave some critical information about the opportunities that existed in Egypt. As of right now, Egypt is the US's largest Arab market, it is a strong U.S ally, has a preference for American products and is politically stable. The U.S is also Egypt's largest trading partner. Some of the Top five exports to Egypt are aircraft parts ($148 m), maize ($450 m), arms and ammunition ($350 m), telecommunications equipment ($244 m), and wheat ($235 m). So as you can see, there is A LOT of money to be made in Egypt. Although there are many advantages in starting a business in Egypt there are also many disadvantages. One big challenge for Americans, or any foreigner wishing to establish a business in Egypt, would be the Chinese manufacturing expansion in Egypt. This is a challenge because price is a very important matter in Egypt and the Chinese provide excellent prices to Egyptian locals that can not afford expensive products. Other challenges include slow decision making process, regional instability, and poorly developed infrastructure.

Some market strategies she stressed during her presentation were price (which is extremely important, since the Chinese have an upper hand in this sector of the market, the Egyptian people are extremely price sensitive), patience (she explained to us business in Egypt will not happen overnight it takes time), persistence (keep focus even when things do not seem to be going well), partnerships (make sure you have a reliable partner), and maintaining personal relationships (is key, when doing business in a foreign country). It is important that you have a relationship with a local and your customers to insure the stability of your business.

 

May 20
Cairo: Day Three and a Date with History

Today was, without a doubt, one of the highlights of the trip. We started the day with a trip to the original capital of Egypt - Memphis. On the drive there, our guide gave us a fascinating history of Egypt. It must be one of the few countries that effectively straddle three distinct and diverse cultures - African, Mediterranean and Middle Eastern.

The original settlement at Memphis dates back over 5,000 years and has some amazing sights including a 40-foot statue of Ramses II.

Statue of Ramses II

Afterwards, we then drove to Saqqara, home of Imotep and King Djoser's famed Step Pyramids. The main pyramid is over 200-feet tall and has a commanding view of the desert and the lush Nile Valley. Afterwards we stopped at a rug-making facility to see the process and buy some of their work.

We ended our afternoon at the Pyramids of Giza - words cannot describe their scale and majesty. At over 440 feet tall, the Great Pyramid is the last remaining Great Wonder of the World. Like the bazaar, there were a lot of aggressive vendors. This time the merchandise included camel rides, which several of us did.

 

May 19
Cairo: Day Two and a Visit to Big Blue

Day Two marked the start of the "serious" trip. One of our classmates, Bonita Vincent, works for IBM and was gracious enough to arrange for a half-day meeting at their Cairo office. Earlier this year, the CEO of IBM said that he was most excited about what was happening in the Cairo office - high praise coming from a CEO of a company that size.

The site visit consisted of presentations by three senior staff: Amr Talaat, Sales and Market Manager, Mona Arishi, Quality Assurance Manager in the Technology Development Center, and Dina Galal, Government Programs Executive. Their comments reaffirmed much of the readings we studied prior to the trip - that Egypt is enjoying a surge in economic growth and is undertaking steps to make it more "business friendly." As you would expect, IBM has contributed to and enjoyed the fruits of this accomplishment.

Our visit was also significant because of the candid and frank issues addressed by the female executives. Mona began her presentation and was humorous, outgoing and engaging. She represented all you would expect to see from a professional working in an organization. Her presentation communicated more than her role as an IBM manager, it dispelled preconceptions someone would have about Muslim women in the workplace.

Non-traditionally dressed, Mona wore a trendy brand named skirt suit with her hair worn long and out. At first glance, she represented a professional working woman who could easily fit in any American corporation. When asked about the challenges she faces within the Muslim community for not wearing traditional head garb. She explained that women are not mandated to wear the full garb, but are making the choice to do so. In addition, she mentioned that the younger women tend to be trendier by wearing colored scarves which match their jeans or shoes. In contrast, the "40 plus" generation is not as conservative and traditional, in their apparel and some are making the choice not to wear traditional Muslim garb. Although, Mona does not dress in traditional Muslim apparel, she has several staff members who do. Dina, also dressed trendy, echoed what was said by Mona. She also mentioned her role in a Diversity Women's organization. Interestingly, the women's choice not to wear traditional Muslim garb in the workplace did not take away from their religious beliefs. They are great examples of women maintaining the balance between identity and social expectations in Egypt.

Students with Mona Arishi - Bonita shaking hands with Dina Galal

After our morning with IBM, we headed over to the Khan El-Khalili bazaar. This is not for the faint of heart. Merchants aggressively try to get your attention and are more than willing to haggle for the best price. Merchandise ranged from souvenir cigarette lighters to clothes and dried spices of all types. Many of the students reported getting huge deals, while others reported getting huge headaches. To each his (or her) own.

It was interesting to consider the entrepreneurial attitude of the vendors at the bazaar. It wasn't clear which of them were a business owners and which operated on a franchise-type basis.

The day ended with a dinner of Egyptian cuisine. We ate with a marketing professor at the American University of Cairo, Dr. Steward. She has lived and worked in Cairo for eight years, prior to which she taught at Winthrop University in Rock Hill, South Carolina (WOO-WOO Eagles!!). She took the liberty of ordering for the group - an act that was met with some trepidation by some of our more timid eaters. Appetizers included more common items such as falafel, baba ganoush, stuffed grape leaves as well as more exotic offerings such as tanini, koushari and aish baladi. Our entrees also included familiar items (pork chops) alongside newer items such as stuffed pigeon. It's doubtful that the birds in Woodruff Park have anything to fear from us. Dessert was a dish that can be best described as a bread pudding-type of confection.

Lee, Yasmeen, Will & Jessica take a break from eating - Musu tries stuffed pigeon

After dinner we were treated to a felucca ride on the Nile. Aside from the obvious puns of "So-and-so has always been in de-nile," it was a wonderful end to a great day. The city is lit up beautifully at night and it was nice to see a calm and tranquil side to the city.

 

May 18
Cairo: Day One and the Fun Begins

After a well-deserved night sleep, we headed to the Cairo Museum of Antiquities. The museum is amazing - as much a warehouse as a museum. The Egyptians have such a rich history and have done an amazing job of taking care of it. Everything was clearly catalogued and many of the exhibits had brief written descriptions in both Arabic and English. Our tour guide was a great source of information - much of which might have not been garnered solely by walking through the museum. Sadly, we were unable to bring our cameras into the building, so readers of this blog should strongly consider going to a traveling exhibit of Egyptian art and history.

Throughout our tour at the museum we were exposed to many unique forms of artifacts. Some of these artifacts are between 5000 and 6000 years old! For instance, The Slate King Narmer which is the oldest recorded writing is dated to have been written in 3000 B C. It is responsible for uniting Egypt.

One observation that stuck out was the stories of ancient Egypt. One such story recounts Osiris and Seth, who were said to be the first two men to walk the face of the earth. Seth, who was the older brother, killed his younger brother Osiris. Ring any bells? Well in the Old Testament of the Bible there is a story about two brothers named Cain and Abel. Their story closely parallels the Osiris/Seth tale.

This is only one of several shared stories held by Egyptian (a predominantly Islamic culture) and Christian societies. In fact, we've learned that there are an astounding similarities between the beliefs of Islam, Christianity and Judaism. It makes you realize how similar we all are at the core of our beliefs.

 

May 17
Amsterdam: A Day In The Life (literally!)

May 9
Pre-trip Dinner with Mrs. Narges Ibrahim

Friday before leaving Atlanta, some of the class members went to dinner for a last hurrah. During dinner we all had the pleasure of meeting Mrs. Narges Ibrahim, an Egyptian woman who owns a small store (Egyptian Corner) located inside the Discover Mills Mall. After speaking with her we learned that she sells hookahs and other glass pieces in her store. Will mentioned earlier to the class that he is in the process of starting a business with a glass artist. Mrs. Ibrahim was very interested in helping him out with selling different glass pieces in her store! This is very exciting because his business has only been selling products through word-of-mouth marketing so far and now he has acquired his first business partner to help him sell glass pieces. She spoke of how she first started her business and included all the ups and downs that go along with it. The main thing she spoke of is you have to do your business YOURSELF! Don't trust anyone to control your profits and only use a partnership when both people are exactly on the same page business-wise. She was very happy to help Will out with the glass business and he is currently in the process of getting a few samples ready to give to Mrs. Ibrahim. She was very helpful in her business advice and offered to find all of the group entrepreneurs in Egypt to meet with if we need. As Will gets more information on the glass business he will report all news on Mrs. Iibrahim's involvement.

May 6
Dubai vs. Atlanta

Comparisons and contrasts of Dubai and Atlanta (compiled by two expats from Atlanta living in Dubai)...

1. Hardly anyone you meet who lives there is originally from there.

2. Could it get any hotter or more humid? It ain't called Do-die/Hotlanta for nothing!

3. Dubai has the tallest hotel in the world(Burj al Arab); Atlanta has the tallest hotel in the Western Hemisphere (Westin Peachtree Plaza).

4. The locals are angry that so many infidels/Yankees have moved there and corrupted their society.

5. People give directions using landmarks for where things used to be or where roads used to go.

6. Both are in a drought, but the ruler of Dubai could pay for making it rain instead of trying to doing rain dances like Sonny Purdue.

7. Atlanta is the city too busy to hate; Dubai is the city too busy to for terrorism.

8. Metro system is inadequate /under construction and doesn't take you anywhere you need to go.

9. Both have over 16 lane expressways that become parking lots several times a day.

10. ESOL is the common language, but a majority of people speak Arab-inglsh / Hindi-nglish / Urd-inglish / Spanglish / Ebonics / Southern.

11. Most people went/go there because of work and stay longer than they planned.

12. Streets are not straight and change names several times while you are driving/lost on them.

13. Neither are exactly the most bicycle friendly/environmentally friendly/pedestrian friendly cities – but they’re both working on it.

14. You spend most of your time in the summer months drinking iced tea and going from full blast air-conditioned house to full blast air-conditioned car to full blast air-conditioned office.

15. Immigrants have built most of the skyscrapers/neighborhoods.

16. Dubai has the world's largest man made islands/Atlanta has one of the world's largest man-made lakes.

17. The airport is easy to reach but once you are inside you have to walk about 5 km / 3.2 miles to get from one gate to the next.

18. Someone is considered being “from there” if they have stayed more than 1 year.

19. Gas is sold in gallons; people drive automatics; most people have new fancy cars; however gas/petrol costs $0.60 per gallon in Dubai.

May 2
Initial Thoughts and Preparations...
It is Thursday, May 2, 2008 and I was scheduled to get my physical at GSU for the trip. You may ask, why am I waiting so late to have this done. Well, in the past several months a lot has happened which has led up to an originally planned action item becoming a last minute issue.

Prior to March 20th, I was working for Kaiser Permanente. Approximately, 2 weeks before I accepted an offer to work for Hartsfield-Jackson Airport. So, prior to completing my last day with Kaiser, I scheduled a physical and immunizations. What I was unaware of was that Kaiser Permanente no longer provided "travel shots". Instead, they provided a list of clinics which offered these services with the contact information. Needless to say, attempting to schedule an appointment when I had Saturday classes and a busy work and class week, was challenging. Needless to say, I was unable to schedule an appointment prior to starting my new job and waiting for my benefits to kick in, will undoubtedly put me in a predicament of not having them prior to the trip.

So, May 2nd is here and the workaholic that I am put me in a position of running late for my appointment. Long story short, I rescheduled the appointment for the next available appointment. Of course, Murphy's Law kicked in, but the silver lining is that now that the semester is over, I can concentrate on completing my action items for the trip and class. One thing I am clear about is, I will have a wonderful sleep on the flight.......The next blog, the last minute shopping, hair appointment and packing......One bag? The challenges women are faced with.....lol. Until next time.....