Abdulla Al Shammari's business grew thanks to his idea of taking the boxes that control street lights and putting them underground. Silvia Razgova / The National
Abdulla Al Shammari's business grew thanks to his idea of taking the boxes that control street lights and putting them underground. Silvia Razgova / The National

A Khalifa Fund success story



Abdulla Al Shammari has the distinction of being the first person to apply to the Khalifa Fund for Enterprise for a loan to help his small businesses. The founder and chairman of Cirta, an engineering firm, attributes his company's success in no small part to the support offered by the fund.
"Actually, at the Khalifa Fund, I am a model for them," he says during an interview at his office in Abu Dhabi. "Whenever they make a presentation or have something to show they present my case."
But our story has jumped ahead of itself. It starts in 2006 when Mr Shammari, a health and occupational safety engineer, was an employee of the Abu Dhabi Company for Onshore Oil Operations.
He started Cirta on the side to manufacture ducts for air-conditioning systems. Six months after the company's establishment, the Khalifa Fund was set up. Mr Shammari approached the organisation with a business plan and was accepted on a one-month course for entrepreneurs. At its conclusion, his plan was approved.
But frustrated that his company had to rely on work subcontracted by larger companies, he decided - in consultation with the Khalifa Fund - to refocus on a rather more novel idea: manufacturing underground street-lighting boxes.
Instead of boxes containing street-light electrics cluttering the pavement at 200-metre intervals, under Mr Shammari's system the boxes are housed in manholes under the pavement. When engineers need to reach them, the cover opens and the box rises up. Maintenance complete, it descends once again. As well as being less obtrusive, this system is safer and the boxes cannot attract graffiti.
"We studied the market and we saw very good demand and [we would be] the only company doing this underground technology," he says. "We approach the government directly. There are no subcontracts."
As a safety engineer, Mr Shammari had been troubled by the accidents involving traditional street-lighting boxes. He met a manufacturer in Germany and engineers from the two companies worked out how to adapt it for the UAE market. Cirta remains the only maker of underground lighting boxes in the Middle East.
The company now has 84 employees and, as well as the main office in Abu Dhabi, branches in Al Ain and Fujairah. An office in Qatar was opened in 2010, and last month Mr Shammari met Saudi officials about doing work in the kingdom. He already has work lined up for all of this year and next.
Three years after starting Cirta, Mr Shammari left Adco. "I saw my company is growing, I saw that turnover is very high and I decided to quit my job."
He admits to being surprised at how fast the company has grown: he had forecast turnover would be Dh40million (US$10.8m) by 2014. But the company attained that level in 2012. Mr Shammari acknowledges that his was perhaps a less-well trodden path for Emiratis - leaving a well-paid government job for his own business - but says that having the support and encouragement of the Khalifa Fund was crucial. He cites an example: Cirta won a Dh5m contract but cash flow was a problem. The fund loaned the company Dh500,000 and Cirta was able to accept the contract.
"Always we [Emiratis] are afraid of becoming bankrupt, of taking out bank loans," he says. "The market is very huge; there are big company and competitors. But when the Khalifa Fund started, they gave us assurance that they will support us financially and help us [tackle] all the problems we are going to face."
Mr Shammari won two awards in 2012. The SMEinfo Awards named Cirta the Emirati-owned business of the year. He also received the Sheikh Mohammed bin Rashid Al Maktoum Award for Young Business Leaders. That, he says, has been a huge boost and motivator.
Looking forward, Mr Shammari says he would like the Government to provide extra support to SMEs by giving at least 10 per cent of contracts to small businesses.
 
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The Kites

Romain Gary

Penguin Modern Classics

Dr Afridi's warning signs of digital addiction

Spending an excessive amount of time on the phone.

Neglecting personal, social, or academic responsibilities.

Losing interest in other activities or hobbies that were once enjoyed.

Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.

Experiencing sleep disturbances or changes in sleep patterns.

What are the guidelines?

Under 18 months: Avoid screen time altogether, except for video chatting with family.

Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.

Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.

Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.

Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.

Source: American Paediatric Association
Analysis

Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more

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Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital

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.”

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

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The biog

Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates

Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.

Favourite pastime: travelling and experiencing different cultures across the globe.

Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.

Favourite Movie: Mona Lisa Smile 

Favourite Author: Kahlil Gibran

Favourite Artist: Meryl Streep

Like a Fading Shadow

Antonio Muñoz Molina

Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

Tonight's Chat on The National

Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.

Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.

Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.

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