Microsoft was the largest technology company in the world back in the 1990s.
With the boom in personal computers, the US giant ruled the roost and the company's co-founder Bill Gates became a household name.
But just as fast as technology changes, so did Microsoft's fortunes.
As the iPad and the iPhone became must-have items, Apple started to catch up. Last year, the darling of Silcon Valley replaced Microsoft as the world's top technology company by market value.
Now Microsoft is looking to reclaim top spot and the Middle East will be a key battleground, says Ali Faramawy, the vice president of Microsoft International with responsibility for the Middle East and Africa.
"As a company, we were used to competing from behind," says Mr Faramawy.
"In a way, competition is healthy and it's a reminder that if you don't have your best people, you fall behind."
In the region, Microsoft sales climbed more than 20 per cent last year compared with 2009 when the economic downturn squeezed revenue by about 15 per cent on the previous year.
Along with new, compelling consumer products such as the Xbox Kinect device and the tie-up with Nokia to launch smartphones, Mr Faramawy is confident the future is bright for Microsoft.
How has the past year been after the decline in sales growth in 2009?
There was a dip in 2009, which was a difficult year, but we expected to bounce back. This year we're expecting substantial growth numbers, but there are some territories that we can't really judge [how business will go].
By that, do you mean the unrest in certain Mena region countries?
Yes. Right now, we are thinking about Egypt, Tunisia and a few other countries. We are talking about how do we take care of our customers and what can we do during these tough times. We're also making sure we can take care of our partners who employ hundreds of IT-qualified people. These guys need to get decent opportunities so they can contribute to their countries. The IT industry in Egypt and Tunisia is an asset. You don't want it to be affected too much. On a long-term scale, Egypt and Tunisia have great days ahead but the question now is how do you limit that impact in the short term.
What is Microsoft's main priority in the region?
Using information technology to improve education and governance is exceptionally high, and it's getting higher. I would say that the recent developments in Tunisia, Egypt and elsewhere have brought a new level of respect to the combination of youth and technology. Of course, that's a very encouraging thing because technology isn't just about social networking and communication. It also about building applications and infrastructure that allows you to make great things. People are also asking how technology can support small and medium-sized businesses and the role in helping labour-intensive industries such as tourism and textiles.
What is Microsoft doing in research and development in the region?
We're looking to do more applied research, but development is another story. We do direct Microsoft research and "enabled" research. The enabled part is how to support research in universities. Three years ago, we started a Microsoft facility in Cairo, where we have a number of engineers who are quietly working and collaborating with other researchers. They're working on improving Arabic search and the relevancy to certain Arabic terms in Bing. What I'm hearing right now is ideas such as can a country like Egypt do advanced research to increase the productivity of wheat farming? That would require a great deal of technology, but Microsoft is helping in this.
Will Microsoft help expand the Arabic web?
I think it's a good thing that we are all [including Google and Yahoo] involved in this because it's certainly beyond the reach of one single company. Content is going to be locally generated and all we do is create venues to share these types of content. We're expecting things to take off in Egypt. All of a sudden, everyone is a publisher. There's room for us to adopt some broader content incentives and it's something that we will investigate.
About 10 years ago, Microsoft was king and Apple was rather small. Today, things are different. What are you doing to change that?
We spent a lot of time improving our enterprise side. Now we're one of the largest enterprise players in software but it came at a price. We probably didn't pay enough attention to the technologies that arrived such as the smartphone. The first attempts to commercialise the smartphone and tablets were done by Microsoft. But did we spend enough time in terms of modernising design and the features? Obviously we've missed a couple of cycles there. As a company, we are used to [coming] from behind. At one point we were behind IBM and Lotus Notes before becoming number one. In a way, competition is healthy and it's a reminder that if you don't have your best people, you fall behind. We're working hard at closing that gap now.
When are we going to get Windows Phones with Arabic support?
You get more every day. At the same time, we have added some code and applications that allow you to use Arabic on your phone. But we need to improve the features and capabilities it has before we start thinking of languages such as Arabic. The exact release date for [Windows Phone 7] in Arabic I can't tell you right now. But we're on the right track with that.
dgeorgecosh@thenational.ae
More from Rashmee Roshan Lall
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Seven tips from Emirates NBD
1. Never respond to e-mails, calls or messages asking for account, card or internet banking details
2. Never store a card PIN (personal identification number) in your mobile or in your wallet
3. Ensure online shopping websites are secure and verified before providing card details
4. Change passwords periodically as a precautionary measure
5. Never share authentication data such as passwords, card PINs and OTPs (one-time passwords) with third parties
6. Track bank notifications regarding transaction discrepancies
7. Report lost or stolen debit and credit cards immediately
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
Company%20Profile
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David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
How to invest in gold
Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.
A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).
Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.
Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”
Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”
Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”
By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.
You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.
You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.
What is the definition of an SME?
SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.
A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors.
SPECS
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OPINIONS ON PALESTINE & ISRAEL
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
Company profile
Name: Steppi
Founders: Joe Franklin and Milos Savic
Launched: February 2020
Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year
Employees: Five
Based: Jumeirah Lakes Towers, Dubai
Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings
Second round raised Dh720,000 from silent investors in June this year
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The six points:
1. Ministers should be in the field, instead of always at conferences
2. Foreign diplomacy must be left to the Ministry of Foreign Affairs and International Co-operation
3. Emiratisation is a top priority that will have a renewed push behind it
4. The UAE's economy must continue to thrive and grow
5. Complaints from the public must be addressed, not avoided
6. Have hope for the future, what is yet to come is bigger and better than before
Dubai Rugby Sevens
November 30-December 2, at The Sevens, Dubai
Gulf Under 19
Pool A – Abu Dhabi Harlequins, Jumeirah College Tigers, Dubai English Speaking School 1, Gems World Academy
Pool B – British School Al Khubairat, Bahrain Colts, Jumeirah College Lions, Dubai English Speaking School 2
Pool C - Dubai College A, Dubai Sharks, Jumeirah English Speaking School, Al Yasmina
Pool D – Dubai Exiles, Dubai Hurricanes, Al Ain Amblers, Deira International School
WORLD RECORD FEES FOR GOALKEEPERS
1) Kepa Arrizabalaga, Athletic Bilbao to Chelsea (£72m)
2) Alisson, Roma to Liverpool (£67m)
3) Ederson, Benfica to Manchester City (£35m)
4) Gianluigi Buffon, Parma to Juventus (£33m)
5) Angelo Peruzzi, Inter Milan to Lazio (£15.7m
8 traditional Jamaican dishes to try at Kingston 21
- Trench Town Rock: Jamaican-style curry goat served in a pastry basket with a carrot and potato garnish
- Rock Steady Jerk Chicken: chicken marinated for 24 hours and slow-cooked on the grill
- Mento Oxtail: flavoured oxtail stewed for five hours with herbs
- Ackee and salt fish: the national dish of Jamaica makes for a hearty breakfast
- Jamaican porridge: another breakfast favourite, can be made with peanut, cornmeal, banana and plantain
- Jamaican beef patty: a pastry with ground beef filling
- Hellshire Pon di Beach: Fresh fish with pickles
- Out of Many: traditional sweet potato pudding
57%20Seconds
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