accountant middle east | january 2013

SETTING STANDARDS IN FINANCIAL AUDITING & ACCOUNTANCY JANUARY 2013

CHARTERED ACCOUNTANT OF THE YEAR

Chris Taylor, the COO of Abu Dhabi Finance, is Middle East’s undisputed top CA, and rightfully so

EXCLUSIVE!

PINNACLE OF SUCCESSMy father once said, ‘I have never seen a poor accountant’ – that advice still holds true today, says CFO of du Mark Shuttleworth

INTEGRATED REPORTING FRAMEWORK Challenges emerge a year since the International Integrated Reporting Council launched its pilot programme

PUBLICATION LICENSED BY IMPZ

Relive all the spectacular moments from the Accountancy & Finance recognition ceremony in Dubai. Our extensive coverage ranges from interviews with individual winners, to corporate success stories, including;

PwC runs away with ‘Firm of the Year’ and ‘Deal of The Year’ gongs

Phoenix students dominate nominations list for ‘Young Accountant of the Year’

HE Sheikh Nahayan on the origins of modern-day accounting

Colourful photographs of overall winners

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Accountant Middle East

Hats off to industry’s top guns

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Accountant Middle East

SETTING STANDARDS IN FINANCIAL AUDITING & ACCOUNTANCY JANUARY 2013

CHARTERED ACCOUNTANT OF THE YEAR

Chris Taylor, the COO of Abu Dhabi Finance, is Middle East’s undisputed top CA, and rightfully so

EXCLUSIVE!

PINNACLE OF SUCCESSMy father once said, ‘I have never seen a poor accountant’ – that advice still holds true today, says CFO of du Mark Shuttleworth

INTEGRATED REPORTING FRAMEWORK Challenges emerge a year since the International Integrated Reporting Council launched its pilot programme

PUBLICATION LICENSED BY IMPZ

Relive all the spectacular moments from the Accountancy & Finance recognition ceremony in Dubai. Our extensive coverage ranges from interviews with individual winners, to corporate success stories, including;



HE Sheikh Nahayan on the origins of modern-day accounting

Colourful photographs of overall winners

www.accountancyme.com

EDITOR'S AUDIT

3

CONTENTSJANUARY 2013

42

Main

Fea

ture

s

554 January 2013

42 PERSONALITY & PRACTICE: Pinnacle of success – From climbing

corporate ladders to summiting world’s tallest mountains, du’s CFO Mark Shuttleworth is a high achiever whose mantra is peak performance.

48 ACCOUNTANCY 101: Fallout from the Arab Spring

accountancy professionals talk about the recent uprisings in the Arab world in an effort to understand the current state of the industry and the likely future consequences for accountancy in the region

64 DIFFERENT DIMENSIONS: Eye on the prize -‐ Morgan International’s CEO

Khalil Fawaz’s journey is testimony of how accounting and auditing can be a springboard for a rewarding career.

14 ICAEW EXCELLENCE AWARDS: Extensive coverage of the spectacular moments from

the Accountancy & Finance recognition ceremony in Dubai ranges from interviews with individual winners, to corporate success stories, including:


Chris Taylor, the COO of Abu Dhabi Finance clinches coveted honour of ‘Chartered Accountant of the Year’


HE Sheikh Nahayan on the origins of modern-‐day accounting

Colourful photographs of guests and overall winners

Current AffairsPr

ofes

sion

Wat

ch

5

The Editor of Accountant Middle East, Joyce Njeri, joins PwC Senior Partners Nitin Khanna (left) and Jacques Fakhoury, after the audit company clinched ‘Firm of the Year’ honour at the ICAEW Accountancy and Finance Excellence Awards ceremony in Dubai.

6 NEWS & VIEWS: Deloitte promotes 40 professionals

announces admission of 40 new partners, principals and directors in the Middle East in 2012, as part of its growth strategy across the region.

12 INTERNATIONAL PERSPECTIVES: ICAS faults audit rules – Research by the Institute

of Chartered Accountants of Scotland has found 'no conclusive'

10 BUSINESS PICTORIAL: A visual story of this month’s dealings and

58 POINT BLANK: Battle against sleaze -‐ Bribery and

corruption in the Middle East is no longer ‘simply a cost of doing business’.

70 TAX WATCH: UAE’s double tax treaties -‐ Emirates enacts

decrees for purposes of eliminating foreign levies on income from outbound activities.

72 TECH TALK: An all new paradigm -‐ Rapid growth of

of SMEs in the UAE.

74 INDUSTRY APPOINTMENTS: Revolving door -‐ Find out the latest movement

of professionals between roles, companies as well as new industry hires.

08 DELOITTE SURVEY: Staying put -‐ Deloitte’s new research reveals 80% of

employees plan to continue working at their organisations over the next year.

36 INTEGRATED REPORTING: Ironing out the creases -‐ Challenges are beginning

to emerge, a year since the International Integrated Reporting Council launched its pilot programme to help create the world’s

55MOVERS & SHAKERS: Passion for banking -‐ Surya Subramanian, Chief

Special Reports

STANCHART TO LAUNCH CASH MANAGEMENT TOOLS

FLOWERS PAINTS ROSY PICTURE OF ECONOMY

THE STANDARD Chartered bank has presented and discussed with clients its plans to revamp its cash and liquidity management platform during the first quarter of 2013.

During a conference dubbed ‘Managing Liquidity in a Dynamic economic Environment’ senior finance and treasury executives from the bank discussed the various topics including optimisation of cashflow and working capital management.

“Stressed market conditions have led organisations to increasingly focus on Cash and Liquidity Management to support business growth

11STANDARD CHARTERED BRANCH OFFICES IN THE UAE

and manage their costs and investments,” said Haytham El Maayergi, Head of Transaction Banking, Standard Chartered UAE.

“Standard Chartered is continuously investing in its capabilities and will launch during the first quarter of 2013 leading solutions that improve e!ciency, manage risk and strengthen cash management processes for clients globally and in the region. With deep local expertise and a strong footprint across the world’s most dynamic markets of Asia, Africa and the Middle East, Standard Chartered will continue to be well placed to o"er a full range of working capital solutions,” El Maayergi added.

Standard Chartered has been operating in the UAE since 1958 and has the largest distribution network among international banks with 11 branches four Electronic Banking Units and more than 130 ATMs and CDMs.

FINANCIAL INSTITUTIONS are on the path to recovery from the global economic crisis, according to J. Christopher Flowers, an

Speaking at the London Business School (LBS) thought leadership forum in Dubai, Flowers shared his thoughts and insights on the global

an evening hosted by the Coller Institute of Private Equity and the LBS. “One thing I think, which is not necessarily a

common opinion, is that eventually, returns on

will get back to normal,” said Flowers (pictured).

industry who think we are facing permanently low returns on capital. I don’t see it that way, the reason being that these industries are absolutely essential to the functioning of the economy. It

industries so they can provide the funding the economy needs, and that will require higher ROEs,” he added. Flowers also discussed the crucial lessons that banks, insurance companies, key stakeholders and regulators have learned

particularly on Europe and the concerns posed by uncertainty of the Euro.“We have seen the volatility of the markets,

but to have a situation where there are immense doubts whether a currency will persist or not... is a very unusual issue. If a country abandons the Euro, most banks in that particular country and some in others will go broke."

STATS FACT:

NEWS & VIEWS

6 January 2013

ACCA ONLINE PROGRAMMES LAUNCHED

DELOITTE PROMOTES 40 PROFESSIONALS

MECA summit records growth

INTERACTIVE, THE e-‐learning arm of the London School of Business and Finance (LSBF) has launched the third generation of

its online ACCA programmes. According to the trainers, the courses -‐ delivered via an e-‐learning

latest trends and meet the feedback provided by over 12,000 students worldwide.”

interaction and value for money, both the ACCA Tuition and the ACCA Revision packages have been improved with an increased number of

guidance and online coaching. Rob Sowerby, Director of Professional

Courses at LSBF, commented: “The new product is designed to greatly improve the level of interaction between student and tutor and we 15%

PERCENTAGE OF WOMEN PROFESSIONALS IN THE NEWLY PROMOTED TEAM

DELOITTE HAS announced the admission of 40 new partners, principals and directors in the Middle East in 2012, as part of its growth strategy across the region.

Sixty per cent of the newly promoted leaders are Arab professionals, the majority of whom have had international experience, while the other leaders are a diverse group of international professionals who have either long tenure in the region or have recently moved in to grow their careers and provide international

expertise to clients. Women professionals form 15% of the newly promoted team, including three Arab women leaders.

This is in line with Deloitte’s strategy to advance women to leadership positions in the Middle East.

“These appointments reflect the firm’s ongoing commitment to delivering innovative, world-leading thinking to all our clients, and rea!rm our confidence in the Middle East as a priority market,” said Omar Fahoum, chairman and chief executive of Deloitte Middle East.

STATS FACT:

conference organised by the Middle East CFO Alliance (MECA) in Dubai recently. According to the organisers, the event

which centred on the theme of ‘Driving Corporate Performance in Uncertain Times’, was a huge success, and featured speakers drawn from prominent companies including SAP, Bayt.com, Signature Group, Ideal Management Consultants and Resources Global Professionals. MECA is the largest CFO Networking

group across Middle East with its members based in UAE, KSA, GCC, Pakistan, India and other Middle Eastern countries. The group regularly organises networking and information sharing events and conferences with the support

of its sponsoring partners.

Regional CFO Conference set to be held on March 27-‐28, 2013 in Dubai. According to the group’s President

CFOs from UAE, KSA, Pakistan, India

participation. MECA events are invitation-‐only and organised mainly for

of MECA, you may send your request via the group’s LinkedIn forum.

7

NEWS & VIEWS

STAYING PUT

THOUGH HIGH unemployment persists and the global economic recovery remains halting and uneven, employers still face

challenges filling technical and skilled jobs.

According to the new global talent survey from Deloitte and Forbes Insights, Talent 2020: Surveying the talent paradox from the employee

surveyed report that they plan to stay with their

on leaving their organisations.

“Sourcing and retaining talented human capital has become a top priority globally. It will act as the differentiating factor in the prosperity of countries and companies, especially in emerging economies such as the Middle East,” said Ghassan Turqieh, Human Capital consulting partner at Deloitte Middle East.

of surveyed employees have moved to new jobs

factors that might make them less inclined to

Deloitte Review with “The talent paradox: Critical skills, recession, and theillusion of plenitude.” In this latest Talent 2020 report, Deloitte turns its focus to the employee perspective on the talent paradox.

As more employees appear to be sitting tight in their current positions, companies may be tempted to neglect their talent and retention strategies out of a false sense of security that their employees are here to stay. However, the report warns that companies’ most critical employees are also those

Deloitte’s new survey reveals 80% of employees plan to continue working at their organisations over the next year

with the most opportunities for movement.

“As employee expectations of business continue to grow, employers should keep a watchful eye on the latest employee attitudes and emerging talent trends,” said Rana Ghandour Salhab, talent and communications partner at Deloitte Middle East.

talent management initiatives to focus on retaining two workforce segments: employees with critical skills who are at a high risk of departure, and the capable leaders who can advance their companies despite continuing global economic turbulence,” she added.

Based on the survey results and Deloitte’s analysis

emerging trends:

Engage employees with meaningful work or watch them walk out the door. Employees value meaningful work over other retention initiatives.

new employment believe their job does not make good use of their skills and abilities.

Focus on turnover “red zones.” Employee segments at high risk of departure, or “turnover red zones,” either have less than two years on the

When it comes to retention, leadership

who plan to stay with their current employers report high levels of trust in corporate leadership.

This edition of the Talent 2020 report reveals

past year, particularly when it comes to turnover intentions. In order to help corporate leaders retain top talent, Deloitte recommends increasing a company’s focus on utilising and developing employee skills, emphasising and rewarding authentic leadership, and fostering an environment with effective, transparent communication.

46% SURVEYED EMPLOYEES WHO HAVE MOVED TO NEW JOBS IN THE LAST 12 MONTHS

DELOITTE SURVEY

8 January 2013

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CRÈME DE LA CRÈME:

Winners of the Institute of Chartered Accountants in England and Wales (ICAEW) Middle East Accountancy and Finance Awards are all smiles as they show off their coveted trophies during the prestigious ceremony at the Jumeirah Beach Hotel, Dubai.

SAVOURING THE MOMENT:

ICAEW’s Regional Director Peter Beynon with his wife Heather, relishes in the delight of hosting a successful awards ceremony.

BUSINESS PICTORIAL

10 January 2013

BUSINESSPICTORIAL

MASTER OF CEREMONIES:

Dubai Eye’s radio presenter Richard Dean kept the party going at the ICAEW glittering event.

11

ICAS FAULTS AUDIT RULES

EC TO PROPOSE MANDATORY NON!FINANCIAL REPORTING

FRC ISSUES REVISED PENSION STANDARD

ICAEW in favour of global IFRS adoption

RESEARCH BY the Institute of Chartered Accountants of Scotland (ICAS) has found 'no conclusive' evidence that mandatory audit firm rotation improves audit quality.

The report also found, that the potentially positive influence on auditor independence that rotation may have can't guarantee a higher audit quality and that it could actually damage audit quality.

The research comes as the European Parliament debates the audit reform proposals put forward by the European Commission, which includes mandatory audit firm rotation.

ICAS director of research Michelle Crickett said the ICAS research is a "timely addition to the debate over audit market reform."

"Regulators need to be very clear about the long-term objectives of rotation," Crickett warned. - The Accountant, UK

THE UK Financial Reporting Council (FRC) has issued a revised version of actuarial standard TM1 (AS TM1). The AS TM1 sets out the assumptions to be used in annual statutory money purchase pension illustrations (SMPIs). The FRC said the most important change is the

removal of the 7% cap per annum on the rate at which pension scheme investments are assumed to build up. The regulator will monitor the assumptions used in SMPIs to assess the impact of this removal. "Providers of SMPIs must think very carefully

about the assumptions they use in producing these illustrations," FRC's Actuarial Council chairman Olivia Dickson said.

THE ICAEW has urged the International Accounting Standards Board (IASB) to 'end the era of convergence', suggesting instead that all listed companies globally should be able to apply International Financial

Reporting Standards (IFRS). According to the Faculty, the last ten years

of progress towards the development of global accounting standards has focused on convergence between IASB and the US Financial Accounting Standards Board (FASB). ICAEW argues that despite the lack of agreement between the two bodies in some key areas, the effort should now be called off. Dr Nigel Sleigh-‐Johnson (pictured), head of the Faculty, elaborated: "All listed companies in major countries currently not part of the 'IFRS family' should be given the option of reporting under IFRS, including the US. Governments should let the market speak. Companies should be permitted to assess for themselves whether the

THE EUROPEAN Commission (EC) will propose a change in European Union (EU) law to make further non-financial disclosures for certain company's mandatory, The Accountant has learnt.

The EC plans to introduce amendments to the accounting directives 78/660/EEC and 83/349/EEC aimed at strengthening non-financial reporting requirements for large companies across the EU. At the moment, EC's draft legislation is subject to inter-service consultation, a process which would allow Directorates-General (as are known the various EC's departments and services) to give their input on the proposal.

The draft bill, which is not expected to be o!cially published until January 2013, would make it compulsory to include environmental, social and employee aspects; respect of human rights and anti-corruption and bribery matters in companies' annual reports.

The draft regulation applies to companies with more than 500 employees.

500NUMBER OF EMPLOYEES FOR COMPANIES TO BE AFFECTED BY NEW REGULATION

STATS FACT:

INTERNATIONAL PERSPECTIVES

12 January 2013

ICAS FAULTS AUDIT RULES

EC TO PROPOSE MANDATORY NON!FINANCIAL REPORTING

FRC ISSUES REVISED PENSION STANDARD

ICAEW in favour of global IFRS adoption

RESEARCH BY the Institute of Chartered Accountants of Scotland (ICAS) has found 'no conclusive' evidence that mandatory audit firm rotation improves audit quality.

The report also found, that the potentially positive influence on auditor independence that rotation may have can't guarantee a higher audit quality and that it could actually damage audit quality.

The research comes as the European Parliament debates the audit reform proposals put forward by the European Commission, which includes mandatory audit firm rotation.

ICAS director of research Michelle Crickett said the ICAS research is a "timely addition to the debate over audit market reform."

"Regulators need to be very clear about the long-term objectives of rotation," Crickett warned. - The Accountant, UK

THE UK Financial Reporting Council (FRC) has issued a revised version of actuarial standard TM1 (AS TM1). The AS TM1 sets out the assumptions to be used in annual statutory money purchase pension illustrations (SMPIs). The FRC said the most important change is the

removal of the 7% cap per annum on the rate at which pension scheme investments are assumed to build up. The regulator will monitor the assumptions used in SMPIs to assess the impact of this removal. "Providers of SMPIs must think very carefully

about the assumptions they use in producing these illustrations," FRC's Actuarial Council chairman Olivia Dickson said.

THE ICAEW has urged the International Accounting Standards Board (IASB) to 'end the era of convergence', suggesting instead that all listed companies globally should be able to apply International Financial

Reporting Standards (IFRS). According to the Faculty, the last ten years

of progress towards the development of global accounting standards has focused on convergence between IASB and the US Financial Accounting Standards Board (FASB). ICAEW argues that despite the lack of agreement between the two bodies in some key areas, the effort should now be called off. Dr Nigel Sleigh-‐Johnson (pictured), head of the Faculty, elaborated: "All listed companies in major countries currently not part of the 'IFRS family' should be given the option of reporting under IFRS, including the US. Governments should let the market speak. Companies should be permitted to assess for themselves whether the

THE EUROPEAN Commission (EC) will propose a change in European Union (EU) law to make further non-financial disclosures for certain company's mandatory, The Accountant has learnt.

The EC plans to introduce amendments to the accounting directives 78/660/EEC and 83/349/EEC aimed at strengthening non-financial reporting requirements for large companies across the EU. At the moment, EC's draft legislation is subject to inter-service consultation, a process which would allow Directorates-General (as are known the various EC's departments and services) to give their input on the proposal.

The draft bill, which is not expected to be o!cially published until January 2013, would make it compulsory to include environmental, social and employee aspects; respect of human rights and anti-corruption and bribery matters in companies' annual reports.

The draft regulation applies to companies with more than 500 employees.

500NUMBER OF EMPLOYEES FOR COMPANIES TO BE AFFECTED BY NEW REGULATION

STATS FACT:


12 January 2013

AUDITORS NEED CONSISTENCY IN PERFORMANCE: IFIAR

ACCOUNTANTS’ POSITIVE ABOUT 2013: IRIS

ICAEW APPLIES TO REGULATE PROBATE SERVICES AND ABS

IASB mulls new set of priorities

MORE NEEDS to be done to improve the consistency of performance by auditors, an inaugural audit inspection findings survey has found. The International Forum of Independent Audit Regulators (IFIAR) survey identifies the level of inspection activity among IFIAR members and focuses primarily on inspections of audit firms that are members of the six largest international audit firm networks. It also responds to a request from the Financial Stability Board to provide details of findings from the inspections of audits of major financial institutions.

According to the report, members are currently noting numerous

common areas or inspection themes across di!erent jurisdictions.

For example, the results indicate the largest number of inspection findings in audits of public companies occurred in the following areas: fair value measurements; internal control testing; and engagement quality control reviews.

- The Accountant, UK

67%RESPONDENTS WHO PREDICT A POSITIVE OUTLOOK FOR 2013

THE INSTITUTE of Chartered Accountants in England and Wales (ICAEW) has submitted an application to the Legal Services Board to

allow it to become probate services and Alternative Business Structures (ABS) regulator, following a public consultation. A successful application would therefore allow

the reserved legal service of probate and to license

THE INTERNATIONAL Accounting Standards Board (IASB) has set out its future priorities on the back of a public consultation it conducted.The consultation

included public discussions, meetings with investors and online discussions and involved thousands of interested parties.

for a period of relative calm after a decade of

unanimous support for the IASB to prioritise work

asked to make targeted improvements to respond

should pay more attention to the implementation of standards; among others. IASB chairman Hans Hoogervorst (pictured)

said "today we set out a new set of priorities, and new methods to deepen co-‐operation with the global standard-‐setting community."

STATS FACT:

MOST UK accountants in practice forecast a positive financial situation for their firms in the next year and expect a busy, but profitable 2013, a survey by IRIS Software Group found.

The number of respondents seeing a 'positive' or 'extremely positive' outlook has increased by 10% to 67% in relation to the previous two years.

For their clients, UK's accountants are not as optimistic as for their own business, with 52% of respondents expecting the clients business in 2013 to be 'mediocre'.

According to the respondents, in 2013 they will be focussed on growing their client base, meeting the Real Time Information (RTI) deadline and improving their practice e"ciency.

IRIS surveyed 222 accountants in practice in October 2012.

13


14 January 2013

ACCOUNTANCY& FINANCE AWARDS

A HISTORY ETCHED ON CLAYHE Sheikh Nahayan goes back in time as he narrates the origins of modern-day accounting

TODAY’S TECHNO-SAVVY number crunchers utilise the best tools and software that the modern world has

to offer. But did you know that the forefathers of accounting relied on clay tokens for double-entry bookkeeping?

In his history-‐rich speech tinged with humour and wit, HE Sheikh Nahayan bin Mubarak Al Nahayan, the Minister

Research, enlightened dignitaries -‐ who comprised the cream of the accountancy

colloquial origins of the modern-‐day act of debit and credit.

“The accounting profession owns a history much longer than the UAE’s,” he said, during the annual Accountancy

a nd F i nance E xce l l ence awa rd s ceremony, organised by the Institute of Chartered Accountants in England and Wales (ICAEW).

“You must be proud that your predecessors gave writing to the world where archaeologists and historians

shaped as spheres, cones and ovoids.”

The tokens furnished a basic method of keeping track of produce and exchanges and centuries later, the advent of large-‐scale trading enabled a vast increase in the number of tokens representing items such as bread, honey, metal and textiles.

“People began to store their tokens in clay envelopes,” Sheikh Al Nahayan narrated, adding that “tokens added were in effect

WORDS OF WISDOM:

“The accounting profession owns a history much longer than the UAE’s,” says HE Sheikh Nahayan bin Mubarak Al Nahayan, Minister of Higher Education and

15


what we would call debit entries, while tokens removed were credit entries.”

“Eventually the owners of clay envelopes realised that they could account for their

pressing the tokens into wetted clay.

and moved from 3-‐D to 2-‐D accounting,” the Minister said, to the amusement of the dignitaries.

While emphasising on the important role that accountants play in today’s business world, Sheikh Nahayan sent the crowd rolling with laughter by quoting a famous statement by the ‘King of Rock and Roll’ Elvis Presley.

“He [Elvis Presley] once said that ‘I have no use for bodyguards, but I have

“Yes, you are an essential part of our society, and, with your moral sense of social responsibility guiding your character, you are invaluable,” Sheikh Nahayan said.

The Minister showered plaudits on ICAEW for the meticulous planning of the awards event, saying with over 138,000 members worldwide, the Institute operates with great authority and understanding in the accountancy field, and “serving people in a field that has recently been too often represented in trust-‐destroying headlines, ICAEW knows that there is no substitute for excellence.”

“The global economy depends on your accuracy, your clarity, your candor,” he said, adding, “Your challenge to be accountable to society mirrors that of our own UAE. Building a sustainable economy is our top policy priority. Our second priority is a balanced and

stability. Those priorities speak to social responsibility. They also raise other issues because, while we increase prosperity and eliminate poverty, we know that our actions must at the same time conserve

our environment and preserve our cultural heritage. That cultural heritage

the UAE must honour them by working for environmental protection, social cohesion, cultural identity and quality of life. We must earn the trust and respect of society and behave in a fair and honest manner.”

Drawing parallels to the industry, Sheikh Nahayan said; “Like you, we are accountable to society, committed to its traditions and values and dedicated to our vision and goals for its future.”

The ceremony was attended by leading professionals from across the region and graced by Olympic sporting legend and London Olympics organiser Lord Sebastian Coe, who was the keynote speaker.

The awards were spread over ten categories and celebrated the very best of

the Middle East, where winners were selected by a judging team of 13 recognised

KEYNOTE SPEAKER:

Olympic sporting legend and London Olympics organiser Lord Sebastian Coe addresses dignitaries during the

“Your challenge to be accountable to society mirrors that of our own UAE. Building a sustainable economy is our top policy priority.”


and respected industry experts from

Peter Beynon, ICAEW Regional Director Middle East, said: “It has been excellent to have the chance to recognise and reward the very best of our profession from across the Middle East.

The vital work that finance professionals do throughout the region can sometimes be overlooked but with talented people like these, we can all do business with increasing confidence. The winners should be extremely proud of their achievements.”

Among the winners were Mohammed Alabbar from Emaar, who was awarded Business Leader of the Year, CFO of the Year Prasanth Manghat from NMC Health and Muhra al Mulla from Deloitte, who was crowned Young Accountant of the Year. PwC won Firm of the Year, while Tamkeen was recognised for Excellence in Training and Development of Finance Professionals.

Sur ya Subramanian , Group Ch ief

profession in the Middle East is growing and becoming stronger every year. We congratulate all the winners for their dedication and on achieving personal excellence whilst also helping ensure prosperity for the region.”

the regional business community, the awards recognise those individuals and organisations who have demonstrated

are the very best in what they do.

Based in the Dubai Financial Centre (DIFC), the ICAEW Middle East regional

support to over 1,400 members and students, and works closely with governments, regulators and key stakeholders.

The association’s recent key milestones include the launch of the ICAEW Emiratisation scholarship scheme to attract local Emiratis into the profession and responding to various consultation papers on proposed changes to financial structures and regulations in the UAE.

ICAEW also assists the Dubai Financial Services Authority (DFSA) with audit quality monitoring, and produces a series of thought leadership and technical events for both members and non members, within the GCC.

Elvis Presley once said: ‘I have no use for bodyguards, but I have very specific use for two highly trained certified public accountants’.

HELLO CELLO:

Escala, an electronic string quartet from London, captivated the crowd with their

16 January 2013

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and respected industry experts from

Peter Beynon, ICAEW Regional Director Middle East, said: “It has been excellent to have the chance to recognise and reward the very best of our profession from across the Middle East.

The vital work that finance professionals do throughout the region can sometimes be overlooked but with talented people like these, we can all do business with increasing confidence. The winners should be extremely proud of their achievements.”

Among the winners were Mohammed Alabbar from Emaar, who was awarded Business Leader of the Year, CFO of the Year Prasanth Manghat from NMC Health and Muhra al Mulla from Deloitte, who was crowned Young Accountant of the Year. PwC won Firm of the Year, while Tamkeen was recognised for Excellence in Training and Development of Finance Professionals.

Sur ya Subramanian , Group Ch ief

profession in the Middle East is growing and becoming stronger every year. We congratulate all the winners for their dedication and on achieving personal excellence whilst also helping ensure prosperity for the region.”

the regional business community, the awards recognise those individuals and organisations who have demonstrated

are the very best in what they do.

Based in the Dubai Financial Centre (DIFC), the ICAEW Middle East regional

support to over 1,400 members and students, and works closely with governments, regulators and key stakeholders.

The association’s recent key milestones include the launch of the ICAEW Emiratisation scholarship scheme to attract local Emiratis into the profession and responding to various consultation papers on proposed changes to financial structures and regulations in the UAE.

ICAEW also assists the Dubai Financial Services Authority (DFSA) with audit quality monitoring, and produces a series of thought leadership and technical events for both members and non members, within the GCC.

Elvis Presley once said: ‘I have no use for bodyguards, but I have very specific use for two highly trained certified public accountants’.

HELLO CELLO:

Escala, an electronic string quartet from London, captivated the crowd with their

16 January 2013



Solutions include:











Solutions include:









‘IT’S THE ULTIMATE CROWN’

For Chris Taylor, being declared the Middle East’s undisputed Chartered Accountant of the Year is a dream that has been several years in the making. After clinching the coveted honour at the ICAEW Accountancy and Finance Excellence Awards ceremony, the COO of Abu Dhabi Finance sat with Joyce Njeri for this revealing yet invigorating interview…

Firstly, congratulations on your win at the ICAEW Middle East Accountancy and Finance Awards. How did you feel when

you were called out to accept the award when you were up against other top class chartered accountants?

A. To be honest my immediate reaction was surprise. Having seen the quality of the attendees and nominees at the event I was pretty sure that I was not

going to win this time round. My surprise turned pretty quickly to concern as I knew Richard Dean, from Dubai Eye, was going to ask me some tough questions on accepting the award.

Did you know you were shortlisted for the award, or was it a surprise?

I knew I was shortlisted and I was already excited as I hoped to meet my all-‐time sports hero, Lord Sebastian Coe, at the event.

18 January 2013


The competition for the coveted title was tough. What does winning the Chartered Accountant of the Year Award mean to you?

Winning the award means three things to me:

1. It is recognition for all of the hard work the staff at Abu Dhabi Finance have put into improving our business performance during 2012;

2. It made me very proud to be recognised by the ICAEW. I have been a member of the ICAEW since 1995 and have been extremely happy to

Chartered Accountants in the Middle East in the last couple of years.

3.subscription for this year, on time.

Going back in time now, share with us why you

you were hoping to achieve.

‘IT’S THE ULTIMATE CROWN’

For Chris Taylor, being declared the Middle East’s undisputed Chartered Accountant of the Year is a dream that has been several years in the making. After clinching the coveted honour at the ICAEW Accountancy and Finance Excellence Awards ceremony, the COO of Abu Dhabi Finance sat with Joyce Njeri for this revealing yet invigorating interview…

Firstly, congratulations on your win at the ICAEW Middle East Accountancy and Finance Awards. How did you feel when

you were called out to accept the award when you were up against other top class chartered accountants?

A. To be honest my immediate reaction was surprise. Having seen the quality of the attendees and nominees at the event I was pretty sure that I was not

going to win this time round. My surprise turned pretty quickly to concern as I knew Richard Dean, from Dubai Eye, was going to ask me some tough questions on accepting the award.

Did you know you were shortlisted for the award, or was it a surprise?

I knew I was shortlisted and I was already excited as I hoped to meet my all-‐time sports hero, Lord Sebastian Coe, at the event.

18 January 2013


The competition for the coveted title was tough. What does winning the Chartered Accountant of the Year Award mean to you?

Winning the award means three things to me:

1. It is recognition for all of the hard work the staff at Abu Dhabi Finance have put into improving our business performance during 2012;

2. It made me very proud to be recognised by the ICAEW. I have been a member of the ICAEW since 1995 and have been extremely happy to

Chartered Accountants in the Middle East in the last couple of years.

3.subscription for this year, on time.

Going back in time now, share with us why you

you were hoping to achieve.

19


It is the fundamental role of the COO to provide support to the Board and CEO, to ensure that the strategic vision and mission of Abu Dhabi Finance is successfully implemented and accomplished.

20 January 2013

We entered for the award because we are so proud of everything we have achieved at ADF during 2012, including – improved business per formance, excel lent customer serv ice, r igorous r i sk management , and smooth internal processes – that we wanted to share our achievements with the wider business community. The ICAEW awards seemed an excellent opportunity to do that.

The following day when you went back to Abu Dhabi, how did you share the news with your colleagues? And how did you as a team celebrate?

our successes and share our areas of focus and

very effective tool to ensure members of staff are recognised for their efforts and we stay on track in terms of the company and individual objectives. I am pretty sure that the ADF Head of Finance had posted the news on various social networking sites before the end of the evening though. We celebrated with a team lunch.

Now that you have been declared the Chartered Accountant of the Year, what would you do differently in 2013? How would you describe your mission in the profession?

I am not sure winning the award will encourage me to do anything differently in 2013, however I hope that it inspires all ADF staff to increase their efforts as it shows that even a relatively small company can achieve great things. The values which the ICAEW enshrines – particularly around transparency and integrity – are values which are at the core of the ADF customer service offering and I therefore hope the awareness encourages us to continue to act as a catalyst in the banking

my mission is the same as any other member of the ICAEW – to always act with integrity and transparency and to use your skills to improve the business performance of whichever organisation you work with.

Who has been your mentor throughout your career?

I have had different mentors in my professional career. I started my career with Deloitte in

mentors during my time there – Steve Wilkinson, Les Platt and Sharon Thorne. All three were completely different characters. I learnt so much in my six years there which have helped me in my career to date. The breadth of opportunity

training and practical experience really put me in a great position to have a successful career in Financial Services.

Finance what does your work entail?

My role is very broad – which is one of the things I love about it. I have responsibility for Finance, Risk Management, Client Care and Quality Assurance, Human Resources, Operations, IT and Change Management. Therefore each day


I am not sure winning the award will encourage me to do anything differently in 2013, however I hope that it inspires all ADF staff to increase their efforts as it shows that even a relatively small company can achieve great things.

can include staff development issues, client service improvements, Information Security

enhancements among others. Overall though, I see my role as one of strategic leadership, as I see it, the fundamental role of the COO is to provide support to the Board and CEO to ensure that the strategic vision and mission of ADF is successfully implemented and accomplished.

What are the best and worst things about your job?

The best things about my job are the people I work with and the breadth of the role. From working with the ADF Board of Directors on strategy and governance, through to mentoring our talented Emirati staff, to ensure they are developing along the lines of their career development plans, no day is ever the same. The most challenging part of the role is the same

life balance and ensuring enough time in the working day is spent on strategic issues and

Please share with us your key career moments in the journey to becoming a Chartered Accountant.

Well I took an interesting path to becoming a Chartered Accountant. I really wanted to emulate Sebastian Coe and become an Olympic 800 metre champion but a combination of injuries and lack of talent made me realise I had to choose a

Geography as my undergraduate degree, where I specialised in the geographical distribution of crime. Perhaps more relevant than I thought,

we have witnessed in the corporate world in the last few years. During the career fairs at

Firms and in particular Deloitte. The quality of the accounting trainees and managers presenting at the event (including Sharon, who later became one of my mentors) persuaded me that three years of training to become a Chartered Accountant seemed a good investment.

I had always been pretty comfortable with numbers and economics and thought I would

of intense book-‐keeping training which I went through did make me have one or two moments

where I reconsidered my decision. Nonetheless I am pleased to say I achieved 1st time passes

Chartered Accountant.

In total I spent six great years at Deloitte – working in the Assurance, Management Consulting, and Corporate Finance departments. I was even

in New York for three months where I worked on developing the Deloitte audit methodologies, with a focus on value-‐added auditing.

On the same issue, the role of accountants

technical, but also advisory and corporate strategy. Can you share with us about these changing roles in today’s globalised world?

I agree that the role of the accountant has

although I think that most professions have found expectations increasing in recent years. It is a great honour and challenge and I think it makes the profession and a career in Finance a very promising proposition.

I think the ICAEW is doing a great job of providing support to chartered accountants across the globe in balancing this new role. It is important though for accountants to be very clear in what their role is within an organisation and ensure an appropriate balance is in place


21

22 January 2013


so that they can achieve all of the goals laid out for them.

In other words there is no point being a great strategic advisor to the company if the basics in terms of management information, accounting

are not in place. Therefore my message would be... ensure you get the basics right and then look to adding value through the strategic advisor role.

I also have to mention that the operational challenges faced by the accountancy profession have increased in recent years. Complicated products, increasing layers of regulation and reporting requirements, probably down-‐sizing in terms of finance functions resources, increasingly international operations, increased levels of disclosure and heightened levels of analysis of financial information by regulators, investors, regulators, and media

have all served to increase pressure on getting the numbers right in a quicker time than ever before.

Organisations are becoming more and more complicated and diverse in their operations and

of the curve. For me one of the biggest challenges is meeting the basic accounting and reporting requirements whilst at the same time ensuring the Finance team is able to provide value added proactive business advice.

What advice would you give to your peers in terms of minimising reporting mistakes?

Reporting mistakes can cause a lot of damage to an organisation – it can lead to the wrong decisions being made and also reputations

purpose. Many functions still rely on manual workarounds to cope with their everyday reporting requirements. At ADF, for example, I am very proud to say we have implemented a fully automated IFRS compliant Oracle solution

reporting system interfaces with our Lending system to produce IFRS compliant reporting with no need for manual intervention. We close our books on Day 2 after month end and were recognised by Banker Middle East Industry

implementation in 2011.

Ensure you understand the bigger picture – if

products, your market and the economic picture

Budget – be rigorous in your budget process. This will act as your sense check when comparing actual results to budget. If your budget process is weak then your benchmark is poor, making it that much harder to spot any errors.

Quality staff and systems – invest heavily in hiring and developing the best team you can afford.

Review time – set aside enough quality review

The best things about my job are the people I work with and the breadth of the role, from working with the ADF Board of Directors on strategy and governance through to mentoring our talented Emirati staff.

CORPORATE TITBIT:

Common values and goals are what drives a team's performance and helps to ensure they work together to support the company in achieving its aims.

22 January 2013


so that they can achieve all of the goals laid out for them.

In other words there is no point being a great strategic advisor to the company if the basics in terms of management information, accounting

are not in place. Therefore my message would be... ensure you get the basics right and then look to adding value through the strategic advisor role.

I also have to mention that the operational challenges faced by the accountancy profession have increased in recent years. Complicated products, increasing layers of regulation and reporting requirements, probably down-‐sizing in terms of finance functions resources, increasingly international operations, increased levels of disclosure and heightened levels of analysis of financial information by regulators, investors, regulators, and media

have all served to increase pressure on getting the numbers right in a quicker time than ever before.

Organisations are becoming more and more complicated and diverse in their operations and

of the curve. For me one of the biggest challenges is meeting the basic accounting and reporting requirements whilst at the same time ensuring the Finance team is able to provide value added proactive business advice.

What advice would you give to your peers in terms of minimising reporting mistakes?

Reporting mistakes can cause a lot of damage to an organisation – it can lead to the wrong decisions being made and also reputations

purpose. Many functions still rely on manual workarounds to cope with their everyday reporting requirements. At ADF, for example, I am very proud to say we have implemented a fully automated IFRS compliant Oracle solution

reporting system interfaces with our Lending system to produce IFRS compliant reporting with no need for manual intervention. We close our books on Day 2 after month end and were recognised by Banker Middle East Industry

implementation in 2011.

Ensure you understand the bigger picture – if

products, your market and the economic picture

Budget – be rigorous in your budget process. This will act as your sense check when comparing actual results to budget. If your budget process is weak then your benchmark is poor, making it that much harder to spot any errors.

Quality staff and systems – invest heavily in hiring and developing the best team you can afford.

Review time – set aside enough quality review

The best things about my job are the people I work with and the breadth of the role, from working with the ADF Board of Directors on strategy and governance through to mentoring our talented Emirati staff.

CORPORATE TITBIT:

Common values and goals are what drives a team's performance and helps to ensure they work together to support the company in achieving its aims.

23


As a top Chartered Accountant how much

years time? For instance, what particular skills will be most in demand? And how will

as a result of the global economic downturn?

I hope that demand increases for Chartered Accountants in the Middle East over the next

region is improving along with an increase in regulatory reform, transparency and governance

accountants are in demand.

Companies and government will be looking to

experience who can add value to their organisations. Businesses in the region have already changed as a result of the downturn. Firstly they are shifting their focus from West to East as it becomes clear that the Asian economies are likely to outperform Europe in the future. Secondly there is a greater level of understanding at a Board level of the importance of effective

governance standards.

Accountants who have experience of international markets, who have managed through a downturn should be well placed in the job market.

What is most important to you as an accountant when it comes to building a successful accounting team in your organisation?

For me it does not matter what kind of team you are trying to build – HR, accounting, business development and the like. The most important thing is that the team shares a common set of values and is clear about the objectives of the organisation and their own team.

Common values and common goals are what

they work together to support the company in achieving its aims. At ADF we have four very clearly stated values – One Team, One Goal; Continuous Improvement; Valuing our Community; and Passion for Our Clients. We have a values recognition programme, and I talk about the values at every gathering of our company.

methodology to ensure everyone is clear about

company scorecard into individual goals. I am pleased to say that since introducing these concepts we have outperformed against budget and 2012 has been a record year for us in terms of business performance.

What are some of your favourite gadgets, apps, tools, and products -‐ especially related to social media?

I like the Balanced Scorecard app in the iPad and also use an efficiency tool called

where I spend my time. I think LinkedIn is a great networking resource and our HR team uses it heavily for recruiting. I try and keep up with trends using Twitter and stay in touch with old friends on Facebook.

How do you spend your free time? What are your sporting interests, if any?

I love competitive sports – I used to compete at a pretty high level in Middle Distance running and

I competed in the Abu Dhabi Triathlon for the last couple of years. I enjoy the social element of the training and the competitive nature of the sport. I also enjoy watersports, tennis, travelling with my wife Tunde and swimming with my daughters, Catrin and Maddie. We had an amazing adventure in Sri Lanka earlier in 2012 and I would really recommend a trip there to anyone – it is an amazing and friendly country.

FAMILY SUPPORT:

Chris Taylor with his wife Tunde, during one of the family holidays abroad.


24 January 2013

BIGDEALPwC shines as the tax, assurance and advisory services company runs away with ‘Firm of the Year’ and for the second year in a row, ‘Deal of The Year’ gongs

PRICEWATERHOUSECOOPERS (P w C ) h a s h a d a c o n s i s t e n t presence in the Middle East f o r ove r 4 0 ye a r s, a p e r i o d

coincidentally aligned with the life of the UAE.

This history of success is explicable. At the ICAEW awards ceremony, PwC emerged as double winner, having been crowned ‘Firm of the Year’ and, for the second year running, received the ‘Corporate Finance Deal of the Year’ gong.

In an interview with Accountant Middle East , top Partners at the firm said that winning both of these awards mean a lot, even for the global firm that regularly wins a diverse array of awards.

“The Middle East region has a global strategic importance for such a firm, whose presence stretches from Libya in the west, to Iraq in

the east, Lebanon in the north and Kingdom of Saudi Arabia in the south,” said Ian Schneider, a senior Partner at PwC.

“This has been cemented by the strategic alliance of the Middle East firm with the UK firm which has facilitated more investment and growth,” he added.

According to Schneider, the award of ‘Firm of the Year’ is “recognition for what PwC is doing regionally to get it right.”

“PwC has grown its operations across the region, both from a people perspective and financial results. In addition, it has been about ‘doing the right thing’. Good examples of this include; that members of staff in Libya were paid throughout the period of turmoil in the country, which resulted in many other businesses closing and withdrawing,” said Schneider, adding that “Maintaining a presence


25

[in Libya] allowed PwC to hit the ground running as soon as business restarted.”

“Another was the way in which staff from Egypt were utilised on assignments throughout the wider region, at the time of the turmoil there. In many areas of the multi faceted professional services firm, the ability to bring in specialists and specific expertise, from wherever in the PwC organisation it happens to reside, allows the business to continue to grow and develop, and to meet the needs of the local business community,” the official said.

A good example of this was the decision taken in 2010 to establish a Business Restructuring practice in the region. Ian Schneider, an experienced restructuring practitioner with multi -‐ national experience relocated to Dubai in January 2011. He embarked upon the task of not only building a team, but also strategically using the knowledge of other international members of the team, to build up the experience and expertise of local practitioners to ensure a future with

local capability.

That team now comprises 17 professionals from very diverse backgrounds and includes people from the UK, Australia, Qatar, the UAE, Jordan, Egypt and Lebanon.

“[The team] has been delighted, in only its second year, to be, in conjunction with the management team of Dubai DryDocks, the recipient of the award for ‘Corporate Finance Deal of the Year.’ As noted, PwC has now won the award every time it has been awarded and so the pressure is already on for next year,” Schneider said.

A key feature of the DryDocks deal was the close working relationship between the

“PwC has grown its operations across the region, both from a people perspective and financial results.”

TRIUMPH:

Ian Schneider, a senior Partner at PwC poses with the award after the

Finance Deal of the Year’ gong at the ICAEW awards event.

Group, its legal advisors (Clifford Chance LLP) and the management team. Schneider says there was also a very good, and strong, working relationship with the lender group, led by Ian McMillan of HSBC.

“As experienced restructuring professionals, PwC and Clifford Chance were able to bridge the gap, that always exists, between the lenders and the borrower,” Schneider said.

As far back as February 2011, the group sought to consider the contingency plan of using the new and untested Dubai Decree 57, a procedure to implement a consensual restructuring solution. The DDW debt arrangements, in common with many done in the period 2004 to 2008 required 100%, by both number and value, of the lenders to agree to any changes to the debt arrangements.

“This sort of arrangement, unfortunately, gives the ability for a holder of debt to try and extract hostage value to boost their own financial return, even if this is contrary to the interests of everyone else. In the more developed restructuring markets, processes have been developed to prevent this as is the case in the USA (under Chapter 11) and the UK (under Schemes of Arrangement or the Company Voluntary Arrangement provisions) and other English law jurisdictions.”

PwC, which has the largest and oldest restructuring practice globally, has been at the forefront of the implementation of new legal developments in reform. The firm did the first cases under the new European Insolvency regulations and has implemented some of the more difficult Schemes of Arrangement (for instance, Re Bluebrook). As such, DryDocks turned to PwC to help with the aspect of contingency planning to use Decree 57 if all of

the lenders wouldn’t agree, which was a very high practical reality.

After having completed this phase of work the PwC team were asked to help DryDocks, as their full blown financial advisor, in their discussions with their lenders. According to Schneider, the PwC team were able to draw on their experience of other situations to develop a structure, and then a proposal, that worked for all.

“This solution gained wide lender support at the meetings that DDW organised with its lenders. However, it was still clear that some of the funds would not agree to the deal and would look to secure a super return. Accordingly the DryDocks management and leadership team took the brave step of being prepared to use Decree 57,” he says. The filing was made on April 1, 2012 and the process got underway.

“Everything went to plan with one exception, caused by commercial matters within the business, but the plan had been designed with sufficient f lexibility to manage such matters.”

At the beginning of July, the relevant meetings of the impacted creditors (which were just the providers of debt finance – there was no impact on customers, suppliers or employees) and shareholders were convened and passed the resolutions to approve the agreed restructuring. The votes were comprehensively in favour with everyone who voted supporting the plan and only two creditors not voting – effectively 97% of the creditors said “yes please”.

The Tribunal approved the restructuring at the end of August and the various conditions precedent were discharged by October 31, 2012 and the deal came into place. PwC’s role ended that day and matters are now in the hands of management to deliver their business plan and comply with their loan agreements.

“It was a classic restructuring role for a world leader like PwC -‐ supporting the client to achieve their objectives by using their experience, but delivering a great 'PwC Experience' for the client,” Schneider proudly says.

PwC, which has the largest and oldest restructuring practice globally, has been at the forefront of the implementation of new legal developments in reform.


26 January 2013

28 January 2013


ACCOUNTANCY & FINANCEexcellence awards: the winners

Award sponsor: BDO Corporate FinanceWinner: HE Mohamed AlabbarShortlisted: Rizwan Sajan, HE Mohamed Alabbar, Colm McLoughlinJudges’ Comments: This award goes to a man who possesses a visionary global perspective, successful track record and a proven ability to develop and nurture business across a range of industries. He was the founder of the Dubai Department of Economic Development and served as its Director General to develop and promote the economy of Dubai before he became the Chairman of Emaar Properties, one of the world’s largest real estate companies. (Pictured: Ahmed Matroushi receives the award on behalf of HE Mohamed Alabbar).

Award sponsor: Taqa GlobalWinner: Muhra al Mulla Shortlisted: Muhra Al Mulla, Nanditha Ramanathan, Anam Sami, Nauman MianJudges’ Comments: This award goes to a person who has demonstrated nothing but determination to succeed in her career. She exhibits great ambition with a positive attitude and is an excellent team player. She is a leading example of the upcoming breed of young, enterprising, highly motivated and career minded Emirati youth. Not only was she a top scorer in her university years but also is a top achiever in her ACA exams. The dedication and commitment she portrayed shows that she is heading in the right direction to early achievement of many key milestones in a fast-‐track future career.

BUSINESS LEADER OF THE YEAR

YOUNG ACCOUNTANT OF THE YEAR

28 January 2013


ACCOUNTANCY & FINANCEexcellence awards: the winners

Award sponsor: BDO Corporate FinanceWinner: HE Mohamed AlabbarShortlisted: Rizwan Sajan, HE Mohamed Alabbar, Colm McLoughlinJudges’ Comments: This award goes to a man who possesses a visionary global perspective, successful track record and a proven ability to develop and nurture business across a range of industries. He was the founder of the Dubai Department of Economic Development and served as its Director General to develop and promote the economy of Dubai before he became the Chairman of Emaar Properties, one of the world’s largest real estate companies. (Pictured: Ahmed Matroushi receives the award on behalf of HE Mohamed Alabbar).

Award sponsor: Taqa GlobalWinner: Muhra al Mulla Shortlisted: Muhra Al Mulla, Nanditha Ramanathan, Anam Sami, Nauman MianJudges’ Comments: This award goes to a person who has demonstrated nothing but determination to succeed in her career. She exhibits great ambition with a positive attitude and is an excellent team player. She is a leading example of the upcoming breed of young, enterprising, highly motivated and career minded Emirati youth. Not only was she a top scorer in her university years but also is a top achiever in her ACA exams. The dedication and commitment she portrayed shows that she is heading in the right direction to early achievement of many key milestones in a fast-‐track future career.

BUSINESS LEADER OF THE YEAR

YOUNG ACCOUNTANT OF THE YEAR

29


CFO OF THE YEAR

Award sponsor: Chalhoub GroupWinner: PwC -‐ for leading the complex restructuring of DrydocksShortlisted: PwC & Damas, PwC & Drydocks, Deloitte Corp FinanceJudges’ Comments: This award goes to the advisors of a

major regional Middle East restructuring concluded through a judicial process with the support of majority creditors and public transparency. This milestone deal could usher in a new era for restructuring in the Middle East. This restructuring was an innovative and collaborative effort and could not have been achieved without the commercial, pragmatic and innovative input from all teams working together.

Award sponsor: Middle East and North Africa practice of Ernst and YoungWinner: MubadalaShortlisted: Emirates, Aramex, MubadalaJudges’ Comments: This award goes to an organisation that operates in 11 diverse sectors, has approximately 170 consolidated entities, 40 jointly controlled entities and 20 associates. It has been rated 10/10 on the Linaburg-‐Maduell Transparency Index and was awarded the Best Ranked Middle East organisation on PIIE SWF scoreboard.

Award sponsor: KPMGWinner: Prasanth ManghatShortlisted: James Rigney from Etihad, Yuvraj Narayan from DP World, Prasanth Manghat from NMC HealthcareJudges’ Comments: This award goes to an individual who continuously shows great leadership skills and has been instrumental in the successful listing of the company he works for in the premium segment of FTSE 250 on the London Stock Exchange in 2012.

CFO OF THE YEAR

EXCELLENCE IN FINANCIAL REPORTING

CORPORATE FINANCE DEAL OF THE YEAR

T

30 January 2013


Award sponsor: Nexia InternationalWinner: TamkeenShortlisted: E&Y, IMA Dubai Chapter, TamkeenJudges’ Comments: This award goes to the developer of “Mohasaba

accounting and auditing systems though renowned expert service providers. The programme has been successful in propagating the importance of proper accounting and auditing practices as a prerequisite to improving enterprise performance, particularly within SMEs. Out of the 1,200

Award sponsor: DeloitteWinner: The Business Breakfast ShowShortlisted: James Doran from The National, Brandy and Malcolm from the Business Breakfast, Dubai EyeJudges’ Comments: This award goes to a show that keeps you wanting to come back for more. A show that broadcasts

local and world business stories, gives overviews of currency and commodity markets in UAE and has over 100,000 listeners.

Award sponsor: Michael Page FinanceWinner: Chris TaylorShortlisted: Chris Taylor from Abu Dhabi Finance, Gabrielle Kane from the Accounts DeptJudges’ Comments: This award goes to a man who was able to transform the company he works for from a loss making

was almost 150%, and the growth in the loan book was about 24%. Since his taking over the support function of the company,

company to ensure effective liquidity management.

EXCELLENCE IN FINANCIAL JOURNALISM

ICAEW CHARTERED ACCOUNTANT OF THE YEAR

EXCELLENCE IN TRAINING AND DEVELOPMENT OF FINANCE PROFESSIONALS

T

31


31

Award sponsor: PwCWinner: NMC HealthcareShortlisted: Etihad, NMC Healthcare, DHLJudges’ Comments: was instrumental in the successful listing of its company in the premium segment of FTSE 250 on the London Stock Exchange in 2012. It goes to a team that works for one of the largest private healthcare providers in the UAE having 6 hospitals and 8 pharmacies under its management with a product mix that includes FMCG, Educational equipment,

and Veterinary products.

Award sponsor: Abraaj GroupWinner: PwCShortlisted: Deloitte & Touche, PwC, E&YJudges’ Comments: This award goes to an organisation that has been in the region for over 30 years with a wide regional

fully understand the multi-‐jurisdictional environment in which its clients operate. In the UAE, it has over 58 partners and 800 staff in which their main objective is to innovate and

Winner: Edward Quinlan – Chairman of ICAEW’s Advisory Board

FIRM OF THE YEAR

BUSINESS FINANCE TEAM OF THE YEAR EXCELLENCE IN TRAINING AND DEVELOPMENT OF FINANCE PROFESSIONALS

OUTSTANDING INDIVIDUAL CONTRIBUTION TO THE ACCOUNTANCY PROFESSION

PHOENIX STUDENTS SHINELearners from the !nancial institution dominate nominations list for ‘Young Accountant of the Year’ at ICAEW Middle East Excellence Awards

Anam Sami (centre) is a relatively new recruit to the KPMG ranks. She has already achieved

of her ACCA studies in the last two sittings and recently scored an almost

CAREER DEVELOPMENT

32 January 2013

At the ICAEW Middle East Awards we were proud to see four of our previous and current students making up the nominations list for ‘Young Accountant of the Year’. In themselves, they define a microcosm of the growing band of young finance professionals in the region.

I RECALL seeing an advertisement in the press during one of my visits to Dubai in 2006.

The advert said that a major distributor based in Jebel Ali was looking for an accountant-‐cum-‐receptionist. I felt this summed up, at the time, the way accountants were often perceived in the UAE (and to an extent within the region) and just how far there was to go to educate the business

companies and indeed government organisations.

It is seven years since I saw that advertisement – have things moved on from then or is the UAE still in dire need of a new understanding when it comes to professional accountancy?

We established Phoenix Financial Training here in Dubai in August 2006 – the stated aim was to bring UK standards of training and customer service to the UAE and eventually the wider region. We deliver

such as ICAEW (English Chartered), CIMA (the

Accountants working in business rather than practice) and ACCA (the UK based, globally portable

to candidates wanting to have options on how to

accountants into the UAE job market and beyond.

It is important to remember that as a training provider we only do part of the job. Our focus is on

young people to pass their examinations -‐ however to become a recognised member of these Institutes it is necessary to not only pass exams, but acquire around three years of relevant practical experience and it is thoroughness of this combination that

potentially adds so much for businesses.

it was (and unfortunately still is) common practice to see companies looking for a candidate who possessed ‘a degree in accountancy or an MBA and also fourteen years in the role of Chief Accountant or Financial Controller in a clothing wholesaler based in the UAE’, I want to pull this apart a little to reveal the problems we sometimes face...

1. The degree – The universities here, and indeed around the world, do a fabulous job in educating young

presumed that a college degree teaches young people to be accountants -‐ the focus is entirely different, being based far more on concepts and theories, rather than the technical practice of accountancy.

This is sometimes doubted in some parts of the world but it should be remembered that in the very highly competitive UK market the ‘Big 4’ happily recruit graduates from all disciplines – their view is that they, along with the training provider, will teach the young people to be accountants. What they want are the best people and the name of the degree (be it accountancy or geology) largely does not really count, indeed I have often heard them comment that they may positively discriminate against Accountancy graduates on the basis that they want to train the students from scratch with no preconceptions.

2. The MBAand provides true insight into the workings of a business and its environment, it is still a very general

three years of technical accountancy training.

I see the depth and breadth of material our students have to cover in all aspects of Financial Reporting, Management Accounting, Budgeting and Control along with related disciplines in the areas of Treasury, Taxation and Auditing and know that a

it is pitched at, is no substitute for the integrity of

businesses but not as accountants.

3. The fourteen years ‘in the same job’ – This is simply a replacement for the professional

doing this same job, in the same industry, in the same location for 14 years why would they want

MANAGING DIRECTOR, PHOENIX FINANCIAL TRAINING

DAVID THOMASSON

33

CAREER DEVELOPMENT

At the ICAEW Middle East Awards we were proud to see four of our previous and current students making up the nominations list for ‘Young Accountant of the Year’. In themselves, they define a microcosm of the growing band of young finance professionals in the region.

I RECALL seeing an advertisement in the press during one of my visits to Dubai in 2006.

The advert said that a major distributor based in Jebel Ali was looking for an accountant-‐cum-‐receptionist. I felt this summed up, at the time, the way accountants were often perceived in the UAE (and to an extent within the region) and just how far there was to go to educate the business

companies and indeed government organisations.

It is seven years since I saw that advertisement – have things moved on from then or is the UAE still in dire need of a new understanding when it comes to professional accountancy?

We established Phoenix Financial Training here in Dubai in August 2006 – the stated aim was to bring UK standards of training and customer service to the UAE and eventually the wider region. We deliver

such as ICAEW (English Chartered), CIMA (the

Accountants working in business rather than practice) and ACCA (the UK based, globally portable

to candidates wanting to have options on how to

accountants into the UAE job market and beyond.

It is important to remember that as a training provider we only do part of the job. Our focus is on

young people to pass their examinations -‐ however to become a recognised member of these Institutes it is necessary to not only pass exams, but acquire around three years of relevant practical experience and it is thoroughness of this combination that

potentially adds so much for businesses.

it was (and unfortunately still is) common practice to see companies looking for a candidate who possessed ‘a degree in accountancy or an MBA and also fourteen years in the role of Chief Accountant or Financial Controller in a clothing wholesaler based in the UAE’, I want to pull this apart a little to reveal the problems we sometimes face...

1. The degree – The universities here, and indeed around the world, do a fabulous job in educating young

presumed that a college degree teaches young people to be accountants -‐ the focus is entirely different, being based far more on concepts and theories, rather than the technical practice of accountancy.

This is sometimes doubted in some parts of the world but it should be remembered that in the very highly competitive UK market the ‘Big 4’ happily recruit graduates from all disciplines – their view is that they, along with the training provider, will teach the young people to be accountants. What they want are the best people and the name of the degree (be it accountancy or geology) largely does not really count, indeed I have often heard them comment that they may positively discriminate against Accountancy graduates on the basis that they want to train the students from scratch with no preconceptions.

2. The MBAand provides true insight into the workings of a business and its environment, it is still a very general

three years of technical accountancy training.

I see the depth and breadth of material our students have to cover in all aspects of Financial Reporting, Management Accounting, Budgeting and Control along with related disciplines in the areas of Treasury, Taxation and Auditing and know that a

it is pitched at, is no substitute for the integrity of

businesses but not as accountants.

3. The fourteen years ‘in the same job’ – This is simply a replacement for the professional

doing this same job, in the same industry, in the same location for 14 years why would they want

MANAGING DIRECTOR, PHOENIX FINANCIAL TRAINING

DAVID THOMASSON

33

CAREER DEVELOPMENT

to come and do the same thing – if they do then, is this the type of person you want? A thorough technical training focuses on building skills that are transferable across industries and processes.

not only based in the skills and knowledge acquired,

these attributes into a variety of situations.

comfortably between roles and industries – their underlying understanding of the way business

necessary to manage and report on this will allow them to easily adapt to all situations and requirements.

At Phoenix we have been at the forefront of developing such people now for six years and we

talented young professionals in their business.

At the recent ICAEW Middle East Awards we were proud to see four of our previous and current students making up the nominations list for ‘Young

professionals in the region.

Nauman Mian – a dedicated young man who has completed his ACCA and decided to ‘top up’ this

shown huge determination over recent years to balance work, family and study pressures at the

currently CFO of Bayt.com here in the UAE.

Muhra Al Mulla – a young Emirati lady who is now combining recent motherhood with her studies

career at Deloitte. Muhra is one of a select handful of students working under the auspices of the ICAEW Emiratisation study scheme and is exhibiting phenomenal skills in balancing all aspects of her life including her duties as wife, mother and employee

Nanditha Ramanathan – an extremely competent, intelligent and mature young lady,

since the age of one. She has completed her ACCA

in their Management Consultancy department.

who will, I am sure, go on to achieve great things

MBA studies in the near future.

Anam Sami – Anam is an intellectually gifted young

here in Dubai. She has already achieved two global

studies in the last two sittings and recently scored an

her employer and Phoenix are incredibly proud of the global footprint she is establishing for the region with

For us at Phoenix, perhaps the most rewarding thing is to see the cultural, gender and ethnic diversity of

tremendous strength that this brings to Dubai.

This diversity is one of the many reasons that, for so

The huge benefit of professional qualification training in accountancy and finance is not only based in the skills and knowledge acquired, but the developed confidence to be able to deploy these attributes into a variety of situations.

Nauman Asif Mian has

by studying for, and recently achieving, his

is currently the CFO of Bayt.com.

CAREER DEVELOPMENT

34 January 2013 35

the nomination of Muhra (who then went on to win the ‘Young Accountant of the Year Award’ for 2012) is a sign of how things are developing in the UAE.

There has been a positive drive on the part of all of

the region to encourage particularly local nationals, to see Accountancy as a valuable and meaningful career option.

For many years now, given the opportunity, I have stressed to young Emiratis that the UAE is a country rich in resources and capital and it is incumbent on them to spend time developing the skills to enable

placing a long lasting over-‐reliance on expatriates like myself.

This has been a long road and there have been times when it seems like little progress has been made but now to me all of a sudden we are seeing more young Emiratis in the classroom across all of our

example of this. The young Emiratis we are seeing are extremely able and talented and as in her case, often incredibly determined. Despite the strong bias amongst many areas of the local community

Marketing as comparatively attractive, there is now

centre of everything in business and commerce and

one’s career up to many and varied opportunities including the highest levels.

There has been a positive drive on the part of all of us involved in professional financial education in the region to encourage particularly local nationals, to see Accountancy as a valuable and meaningful career option.

Things have changed in the region and in particular in the UAE. To a certain extent it was understandable up to 2008 to see accountants as bean counters simply adding up how much money businesses had made in the previous year. After all, in those days making money for the hugely entrepreneurial local and international businesses in the region was relatively simple. Financial planning and strategy, budgetary control and planning didn’t seem to be required but the

The businesses that survived and grew, and indeed are now thriving again, recognised the need for a

that are now at the forefront of helping businesses to

and reporting mechanisms into place.

play on the world stage but if it wants to do this, I

Sovereign Wealth funds in both Dubai and Abu Dhabi, in addition we produced well over one

– they are much needed.

The receptionist-‐cum-‐accountant job adverts are still there but let’s hope it is not for much longer. For Phoenix in 2013, it is going to be more of the same – we will continue to try to spread the word and turn out great young professionals – we have had the award winner in 2011 (Mitali Botadra) and now in 2012 so we will be hoping for a hat-‐trick in 2013.

Nanditha Ramanathan

and is currently working with KPMG in their Management Consultancy

CAREER DEVELOPMENT

INTEGRATED REPORTING (IR) has come a relatively long way in a short time. It has been just over two years since the International Integrated

Reporting Council (IIRC) was formed through collaboration between the Global Reporting Initiative and the Prince’s Accounting for Sustainability Project.

Challenges are beginning to emerge, a year since the International Integrated Reporting Council launched its pilot programme to help create the world’s !rst integrated reporting framework. Nicola Maher reports on the developments so far...

The Accountant

INTEGRATED REPORTING

36 January 2013

INTEGRATED REPORTING (IR) has come a relatively long way in a short time. It has been just over two years since the International Integrated

Reporting Council (IIRC) was formed through collaboration between the Global Reporting Initiative and the Prince’s Accounting for Sustainability Project.

Challenges are beginning to emerge, a year since the International Integrated Reporting Council launched its pilot programme to help create the world’s !rst integrated reporting framework. Nicola Maher reports on the developments so far...

The Accountant


36 January 2013

There is a fine line the IIRC needs to walk because by making the framework too flexible and less comparative, there is a risk people would use different metrics to suit their own needs.

REACTION:

IIRC Chairman Paul Druckman says it is the integrated thinking and silo effect that will be “the biggest issues for companies producing an integrated report to overcome.”

37


One of the criticisms that have been around corporate reporting is, it has become very compliance-focused, rather than getting companies to tell their value story the way that they see it.

38 January 2013


39

Da Costa Borgerth adds that at BNDES there are


One of the criticisms that have been around corporate reporting is, it has become very compliance-focused, rather than getting companies to tell their value story the way that they see it.

38 January 2013


40 January 2013

The financial does tend to be driven by detailed requirements, whereas the narrative has quite a lot more flexibility in terms of the extent to which companies do report and the volume that they give.

THE PILOT PROGRAMME: Participating countries


41

Christoph Dolderer, director of accounting and taxes at German utilities company EnBW:

What have been the major challenges of producing an integrated report?

What are the benefits?

How do you determine what’s material to report and what is not?

Do you think integrated reporting will spread without regulatory impetus?

see whether the market forces a

Tai-‐Hong Fung, senior manager of corporate accounting in the US at Microsoft:

Why did Microsoft join the pilot programme?

Why did Microsoft want to produce an integrated report?

What are the major challenges encountered so far?

How are you tackling the materiality issue?

Is there a risk of exposing too much in the US?

What advice would you offer businesses wanting to produce an integrated report?

probably be the best way to start The Accountant, UK


39

Da Costa Borgerth adds that at BNDES there are


PINNACLEOF SUCCESS

From climbing corporate ladders to

summiting world’s tallest mountains,

Mark Shuttleworth, the CFO of telecommunications

company du, is a high achiever whose mantra is peak performance

PERSONALITY & PRACTICE

42 January 2013

CLIMBING THE world’s Seven Summits is a serious undertaking even for any seasoned mountaineer.

For Mark Shuttleworth, the Chief

Accountant Middle East,

MANAGING DIRECTOR, SHANE PHILLIPS CONSULTANTS

SHANE PHILLIPS

PROUD ACCOUNTANT: “I remember deciding to become a Chartered Accountant when I was 18 years old and my father said, ‘I have never seen a poor accountant’ – that advice still holds true today.”

43


“Seeing all seven continents and their respective mountain ranges is an experience in itself. Seeing Everest, however, was breathtaking. It’s a moment I will never forget and climbing it has changed my life forever.”

6MDU’S MOBILE-SERVICES SUBSCRIBER BASE

44 January 2013


45

Mark believes that a CFO can’t do his job properly if he is tied too deeply into operations and administration, rather, his job [CFO’s] should revolve around strategy and value creation for the organisation.

LESSON LEARNT: “Today I value my time so much more than before. It is truly the most valuable thing we have,” says Mark.


Assessing the CFOof Accountant Middle East

EXPERT ADVICE: “The CFO of a public company must have a strong voice that can speak to the investor community. Both the CEO and the CFO should articulate the strategy of the business.”


46 January 2013

“In this region great strides have been made in the finance profession. Sadly, in many companies, you will still see the position of CFO filled by a ‘Controller’ rather than a true CFO.”


47

FALLOUT FROM THE ARAB SPRINGUprisings and civil strife in the Arab world have caused massive upheaval in many countries in the Middle East and North Africa. Paul Golden talks to some of the region’s in!uential accountancy professionals to understand the current state of the industry and the likely future consequences for accountancy in the region.

THE EVENTUAL economic impact of the infamous ‘Arab Spring’ remains impossible to forecast with any certainty, but there is widespread

acceptance that accountants will play a vital role in creating the conditions for future growth.

Thus far, the protests that started in Tunisia in late 2010 have had a negative impact on the economies of the countries affected.

Research by political risk consultancy Geopolicity suggests that those countries where political protests have been most violent -‐ Libya, Syria, Egypt, Tunisia, Bahrain and Yemen -‐ saw their combined GDP fall by more than $20 billion in 2011 alone.

The consultancy also states that the support promised by the G8 at the May 2011 Deauville summit, known as the Deauville Partnership, has largely failed to materialise.

This view is corroborated by data published in June by Thomson Reuters showing that of the $60

billion in aid pledged to Arab countries last year, only a quarter had been disbursed. Jaafar Hassan, Jordan’s minister of planning and international cooperation went even further in a recent

assistance had yet been extended within the context of the Deauville Partnership.

The International Monetary Fund (IMF) has calculated that the weaker Arab economies will need about $300 billi on in external finance over the next two years, with governments’ borrowing needs making it harder and more expensive for private sector companies to

However, there are some positive signs. The World Bank has estimated the infrastructure sector across the Middle East and North Africa (MENA) has the potential to create around two million direct jobs and 2.5 million additional infrastructure-‐related jobs over the next decade, while the IMF forecasts an increase in economic growth across the region from 3.5% last year to 4.2% in 2012.

ACCOUNTANCY101

48 January 2012

The United Arab Emirates has benefitted [from the Arab Spring] in that it has been seen as a haven among the tumult that has engulfed other Arab countries - ICAEW Middle East Regional Director, Peter Beynon

implemented and what impact this will have on businesses. International investors are still largely waiting on the sidelines.”

Political change is still ongoing in many of the countries affected by the Arab Spring, so evaluating

such change is impossible in the short term, according to the Chartered Institute of Management Accountants

With any severe political change such as has

are expected initially due to political unrest, which leads to reduced foreign investments, liquidity

economic demands, observes Karim Abd-‐Elhay, president of the Dubai chapter of the Institute of Management Accountants (IMA).

He acknowledges these countries are going through a period of transition, but adds that over the long term political change is expected to have a positive economic impact due to the corrective actions taken by governments to reduce corruption, encourage investment and optimise the utilisation of resources.

Unsurprisingly, few observers are prepared to draw a direct line between political change and economic improvement.

Institute of Chartered Accountants in England and Wales (ICAEW) Middle East regional director Peter Beynon says in some parts of Libya entrepreneurs are emerging in various sectors (such as vehicle importing) and that in general entrepreneurs

in that it has been seen as a haven among the tumult that has engulfed other Arab countries. But if you look at Egypt, for example, the jury is still out on whether Sharia law will be

"The faster a country can stabilise politically,

can refer here to Tunisia and Egypt, both of which have promising growth opportunities. Neither can

economic status -‐ for example, Libya has natural resources which will boost government spending in infrastructure projects and generate good economic returns."

Beynon explains that while ICAEW members in the Arab world are not isolated in their experiences in relation to the wider business environment, the precise effects have varied from country to country.

49

ACCOUNTANCY101

The United Arab Emirates has benefitted [from the Arab Spring] in that it has been seen as a haven among the tumult that has engulfed other Arab countries - ICAEW Middle East Regional Director, Peter Beynon

implemented and what impact this will have on businesses. International investors are still largely waiting on the sidelines.”

Political change is still ongoing in many of the countries affected by the Arab Spring, so evaluating

such change is impossible in the short term, according to the Chartered Institute of Management Accountants

With any severe political change such as has

are expected initially due to political unrest, which leads to reduced foreign investments, liquidity

economic demands, observes Karim Abd-‐Elhay, president of the Dubai chapter of the Institute of Management Accountants (IMA).

He acknowledges these countries are going through a period of transition, but adds that over the long term political change is expected to have a positive economic impact due to the corrective actions taken by governments to reduce corruption, encourage investment and optimise the utilisation of resources.

Unsurprisingly, few observers are prepared to draw a direct line between political change and economic improvement.

Institute of Chartered Accountants in England and Wales (ICAEW) Middle East regional director Peter Beynon says in some parts of Libya entrepreneurs are emerging in various sectors (such as vehicle importing) and that in general entrepreneurs

in that it has been seen as a haven among the tumult that has engulfed other Arab countries. But if you look at Egypt, for example, the jury is still out on whether Sharia law will be

"The faster a country can stabilise politically,

can refer here to Tunisia and Egypt, both of which have promising growth opportunities. Neither can

economic status -‐ for example, Libya has natural resources which will boost government spending in infrastructure projects and generate good economic returns."

Beynon explains that while ICAEW members in the Arab world are not isolated in their experiences in relation to the wider business environment, the precise effects have varied from country to country.

49

ACCOUNTANCY101

"Some people relocated and then returned to Egypt, whereas Libya is seen as a blank piece of paper and a

of members across the region as markets slow down in Europe and elsewhere."

He believes there is an opportunity to increase the

and as generational change takes place in family businesses the next generation sees accountants as more co-‐pilots than just the person producing numbers in the background."

This development goes hand-‐in-‐hand with improvements in corporate governance, continues Benyon. "The impetus to crack down on corruption is being driven internationally and we are working with regulatory bodies to promote good business practice," he says.

Government bodies have grown considerably across

but scope for further public sector growth is limited.

Beynon says: "It is hoped that the local population will be able to meet future demand from the private

Europe. Many companies in the Gulf Co-‐operation Council (GCC) countries -‐ Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE -‐ have programmes to develop local talent and we are working with larger employers and educational establishments."

increased even without the rise of political movements such as the Muslim Brotherhood, but says developments in countries such as Egypt will add impetus to the sector.

"ICAEW and other professional bodies will need to lead standards and levels of disclosure around

CIMA experienced the greatest-‐ever increase in student numbers joining the Diploma in Islamic Finance from countries such as Bahrain during 2011, many of whom enrolled as part of a government-‐sponsored programme.

Willsdon admits this may not be directly related to the Arab Spring, but says its timing would suggest that governments are keen to show their citizens that they are prepared to support them in obtaining

"Interestingly, we have also seen an upsurge in interest from Egypt," he says, "which could be directly related to the election of the pro-‐Arab Muslim Brotherhood presidential candidate. It is often said that surges in the number of mature

adversity such as the present global economic downturn. We could expect more students in the MENA region to seek internationally recognised

the region."

He agrees with Beynon's view that accountants are

post-‐Arab Spring.

"We tend to think in terms of Arabian Gulf states as looking like Dubai, but the reality is that much of the Gulf is undeveloped and a lot of the manpower currently used to drive development is expatriate. Countries in the region are in agreement that the indigenous population needs to be up-‐skilled and while many citizens will look for trades, a section will seek to attain

emulate other more developed regions, corruption will slowly decline.

Political change is still ongoing in many of the countries affected by the Arab Spring, so evaluating any economic benefit which has arisen as a result of such change is impossible in the short term - Chartered Institute of Management Accountants, Director of Islamic Finance, John Willsdon

ACCOUNTANCY101

50 January 2012

"The accounting profession has as its backbone a strong ethical core. As the profession's strength increases in these regions -‐ possibly with the development of regional accounting bodies -‐ corruption will come more under the microscope of the professional accountant. The various accounting bodies' ethical core will ensure that corruption will be rooted out over time."

He is also convinced there will be enough accountants to meet future demand and that this demand will be driven by an emerging private sector rather than the public sector, which will inevitably have to be reduced in size as state spending comes under increased scrutiny.

Says Willsdon: "A major concern of many Gulf countries is getting their own citizens to up-‐skill. Oil revenues have meant that many did not need to work or only wanted to be employed at the highest

the largest organisations are being run by a silent, expat majority.”

“Many of the Gulf states now know they haven't got many years of oil left and therefore see the need to invest in both physical infrastructure and also education as a way of empowering their

great demand, but this can only increase as the oil revenues slowly run out."

has become acute. The indigenous population are

religious background and the fact that they are Arabic speaking, Willsdon continues.

30% for the past decade and more and there is no evidence that this is likely to decrease," he says.

"The shift of many MENA countries to a stronger Arab identity -‐ along with the developments which have already taken place in the industry in terms

services -‐ means that we can only expect Islamic

“There are also many governments in the MENA region who envy the success enjoyed by countries

and identity. Countries such as Bahrain, the UAE and Qatar to name a few are keen to develop themselves

The Dubai chapter of the IMA has experienced increased

"Organisations now look for accountants who

analysis and planning and this comes in line with the change that the people in the Arab Spring countries are looking for," he says.

He is in accord with the view that the accounting profession has a role to play in reducing corruption in business.

"Accounting professionals play a vital role in implementing and applying proper corporate governance, which targets the reduction of corruption. There is increasing attention paid to the importance of applying business ethics that provide

While there is still a lot of work to be done in the wake of the Arab Spring the accounting profession is in the perfect position to help the countries affected to rebuild their economies by helping to weed out corruption and take hold of the opportunities in the

-‐ The Accountant, UK

With any severe political change such as has occurred in the Arab Spring, economic difficulties are expected initially due to political unrest, which leads to reduced foreign investments, liquidity difficulties and increased pressure of public economic demands - Karim Abd-Elhay, President of the Dubai Chapter of the Institute of Management Accountants (IMA)

51

ACCOUNTANCY101

MENA IPOs RAISE $2B Saudi Arabia and the UAE come tops as regional hubs of public listing activity for investors

REGIONAL CAPITAL markets raised approximately $2 billion in 2012 up from $843.9 million in 2011; an increase of 134%,

according to the latest Ernst & Young’s Middle East and North Africa (Mena) fourth quarter and year-end 2012 ‘IPO Update’ report

The year closed with regional companies raising a total of $339.8 million through three initial public offerings (IPOs) in the fourth quarter of 2012.

raised in the fourth quarter of 2011 and the $252.3 million raised in the third quarter of 2012.

Phil Gandier, Mena’ Head of Transaction Advisory Services, Ernst & Young says: “It’s been an

eventful year [2012] for the region, with mixed implications for the capital markets. Drawing comparisons over the last two years we have noticed a steady climb in the amount of funds being raised by IPOs possibly hinting that markets are inching towards better results. The outlook for 2013 will be to a great extent

backdrop of regional developments. We are

continue to be the regional hubs of IPO activity for investors in 2013.”

Dallah Healthcare Holding Company led regional IPO deal sizes with its $143 million listing on the Saudi Stock Exchange (Tadawul) in November followed

$1.4B AMOUNT RAISED BY SAUDI ARABIA THROUGH IPO IN 2012

BUSINESS INSIGHTS

52 January 2013

The outlook for 2013 will be to a great extent influenced by investor sentiments, against the backdrop of regional developments.

Securities Market in September. The third IPO in Q4 was Amira Nature foods listing on the New York Stock Exchange (NYSE) at $90m in October.

Saudi Arabia led the country standings in 2012, raising $1.4 billion through seven IPOs in all of

were the only other Mena countries with IPO activity in 2012.

Phil Gandier says: “When we look back at the sector split of the IPOs that have taken place in 2012 we can see a broad spread of coverage

by three each in the Financial and Consumer Products sectors, two in the Healthcare sector and one IPO in the Packaged Foods Sector.”

IPOs), narrowing the lead on the Asian markets, which raised $8.8 billion (59 IPOs). European exchanges also saw something of a return to form,

Globally, year-‐on-‐year, the picture for Q4 remained somewhat depressed. The number of

deals in Q4 2012, whereas by capital raised, it

Maria Pinelli, Ernst & Young’s Global Vice Chair Strategic Growth Markets says: “The weakening

economy, unstable equity market conditions and poor performances on some IPO transactions

expected, there has been lower IPO activity in Asia as the number of state owned enterprises (SOEs) coming to market has diminished. The

market is back by deal number and rewarding companies that perform strongly. Europe has

quarter, compared to the rest of the year.”

The NYSE and NASDAQ exchanges raised $44.9

global proceeds in 2012; leading the Shenzhen, Hong Kong and Shanghai stock exchanges ($11.1 billion via 129 deals, $9.8 billion via 44 deals, $5.3 billion via 25 deals respectively) for a second consecutive year.

Other active stock exchanges included, Bursa

year’s top 20 deals, the HKEx ($9.8 billion in 44 deals), and the Shanghai and Shenzhen Stock

billion in 154 deals in total.

“Looking ahead to 2013, we expect a better

leading the recovery, followed in the latter half of the year by Europe and Asia. Reduced stock market volatility, assertive action from central banks and brighter economic prospects suggest 2013 could be the right time for companies currently in the pipeline to list,” says Pinelli.

quarter, thus suggesting that signs of stability in equity markets and supportive central bank policy are starting to take effect. We believe the market is likely to see smaller offerings initially

the executive adds.

Phil Gandier, Head of Transaction Advisory Services, Ernst & Young MENA

53

BUSINESS INSIGHTS

The outlook for 2013 will be to a great extent influenced by investor sentiments, against the backdrop of regional developments.

Securities Market in September. The third IPO in Q4 was Amira Nature foods listing on the New York Stock Exchange (NYSE) at $90m in October.

Saudi Arabia led the country standings in 2012, raising $1.4 billion through seven IPOs in all of

were the only other Mena countries with IPO activity in 2012.

Phil Gandier says: “When we look back at the sector split of the IPOs that have taken place in 2012 we can see a broad spread of coverage

by three each in the Financial and Consumer Products sectors, two in the Healthcare sector and one IPO in the Packaged Foods Sector.”

IPOs), narrowing the lead on the Asian markets, which raised $8.8 billion (59 IPOs). European exchanges also saw something of a return to form,

Globally, year-‐on-‐year, the picture for Q4 remained somewhat depressed. The number of

deals in Q4 2012, whereas by capital raised, it

Maria Pinelli, Ernst & Young’s Global Vice Chair Strategic Growth Markets says: “The weakening

economy, unstable equity market conditions and poor performances on some IPO transactions

expected, there has been lower IPO activity in Asia as the number of state owned enterprises (SOEs) coming to market has diminished. The

market is back by deal number and rewarding companies that perform strongly. Europe has

quarter, compared to the rest of the year.”

The NYSE and NASDAQ exchanges raised $44.9

global proceeds in 2012; leading the Shenzhen, Hong Kong and Shanghai stock exchanges ($11.1 billion via 129 deals, $9.8 billion via 44 deals, $5.3 billion via 25 deals respectively) for a second consecutive year.

Other active stock exchanges included, Bursa

year’s top 20 deals, the HKEx ($9.8 billion in 44 deals), and the Shanghai and Shenzhen Stock

billion in 154 deals in total.

“Looking ahead to 2013, we expect a better

leading the recovery, followed in the latter half of the year by Europe and Asia. Reduced stock market volatility, assertive action from central banks and brighter economic prospects suggest 2013 could be the right time for companies currently in the pipeline to list,” says Pinelli.

quarter, thus suggesting that signs of stability in equity markets and supportive central bank policy are starting to take effect. We believe the market is likely to see smaller offerings initially

the executive adds.

Phil Gandier, Head of Transaction Advisory Services, Ernst & Young MENA

53

BUSINESS INSIGHTS

PASSION FOR

BANKINGSurya Subramanian, Chief Financial O!cer of Emirates NBD Bank, tells Joyce Njeri what it takes to lead the "nance division of one of the top lending institutions in the region

W hen Emirates NBD Bank announced its third quarter results you attr ibuted the b a n k ’s s t r o n g o p e r a t i n g performance to the sustained

cost optimisation initiative, declining operational costs and the bank’s strategy to maintain conser vatism in de-risking its balance sheet. CFOs are generally k n ow n t o f o c u s m o r e o n r e d u c i n g operational costs. Do you think some of these measures eschew other growth initiatives, in favour of cost cutting and profit optimisation?

A. There are two aspects to cost control from a CFO’s perspective. The first is to ensure that we get value for every dirham spent.

You can also extend this to state that CFO’s will push for relative value when the situation demands, such as when we have to choose between competing projects with a limited investment spend.

The second aspect is trickier and often requires deep industry knowledge where we have to balance between what I call the 3 Cs – Cost, Control / Compliance and Customer Service. This, well done, leads to sustainable profit maximisation.

Taking about performance, CFOs are ultimately evaluated by the company’s overall results. If performance falls short, the CFO is usually the scapegoat. As the CFO of one of the biggest banks in the region, how do you deal with performance pressure?

MOVERS &SHAKERS

54 January 2013

It helps that I have experienced and learnt from an earlier Asian financial crisis.

Our bank also has a clear strategy to put the effects of the crisis behind us and for the management team, it is a matter of steering the course collectively. The performance pressure then turns into a positive challenge of how to help the organisation achieve its goals. Also, as an added positive in the context of this question, while our performance has not

dividend paying institution.

You were appointed to the position of CFO in 2010. This is also the period when the banking industry was still in a challenging phase following the global financial crisis that began in 2008. There’s no doubt that these events shaped and redefined the responsibilities of the CFO a great deal. How, in your opinion has the role of the CFO changed post the financial crisis?

The role of the CFO, both before and after the financial crisis, remains unchanged. It has however brought to focus the lesson that ‘control’ is a key element of the job description, a fact some CFOs ignored to their personal peril and that of their organisation.

In addition, now we have to deal with increased scepticism from the auditors and regulators

It helps that I have experienced and learnt from an earlier Asian financial crisis. Our bank also has a clear strategy to put the effects of the crisis behind us and for the management team... it is a matter of steering the course collectively.

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MOVERS & SHAKERS

means that a lot more thought and back-‐up preparation has to go into all areas of judgment.

Today, CFOs are generally expected to

accounting function, while providing strategic business guidance and advice to the CEO. How has the relationship between the CFO and the

The relationship between the CFO and the CEO has never been stronger. You would have noted that in most instances of management change initiated by the Board or Shareholders, the CFO follows the CEO on the exit path. Before the global

stories of individual glory that sometimes tend to

within a division, signature acquisitions to name a few. The CFO’s role to provide unbiased input to what these mean at an organisational level is key to avoiding portfolio level pitfalls that are blind spots at a divisional level. It is important therefore that there is immense trust between the CEO and CFO to help deliver on the agenda.

Four years on, [after the markets’ collapse] provided us crucial insights related to operational

that there is a lot of focus on judgement related to evaluation of credit and valuation of collateral and add to that... the valuation of investments. That does compound problems of documentation and debate for our industry that essentially deals with credit and maturity transformation.

Frequent dialogue and reviews with the auditors helps in addressing key pressure points and it is equally important to share the thought process

into the overall strategy.

By the time this article gets into print, we will be ready to release full year results at a date earlier than ever before and this would not have been possible without quality information sharing and coordination between us and our auditors.

As organisations today work towards managing risks and cutting down unnecessary expenditure, what do you regard as the critical operational areas or departments to be watched in the everyday running of the business?

I have to start with my own function, Finance,

Ensuring that we have the right talent to support the future growth of the organisation is key on my agenda.

As a commercial bank that derives almost two-‐thirds of its revenue from net interest income, a critical area of focus is working together with the rest of the management team to ensure best-‐in-‐class asset / liability management. We believe this is what differentiates Emirates NBD from many other banks in the region.

What path did you take to become the CFO of Emirates NBD Bank?

I started my banking career with Standard

in India, including a very rewarding stint as a branch manager of a full-‐service unit in Goa. This foundation gave me a strong understanding of the industry, its products, services and its customers.

My career in Finance started with a personal choice to migrate to Singapore in 1991 where I continued with the same bank in various regional and local roles covering MIS, Asset Liability Management and Business Performance Reporting.

The relationship between the CFO and the CEO has never been stronger. You would have noted that in most instances of management change initiated by the Board or Shareholders, the CFO follows the CEO on the exit path.

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56

MOVERS & SHAKERS

56 January 2013

function for its growing presence in Asia and this brought me in direct touch with senior management within the bank, auditors and regulators. The experiences were immense and cut across new areas like Regulatory Reporting, Compliance, Tax and Corporate Secretarial functions.

In 1999 Standard Chartered Bank recalled me to support their (then) Global Corporate and Institutional Banking franchise headquartered in Singapore and I was a key member of the

in motion to build one of the most successful

crisis. Later I held other roles as CFO, Singapore and South-‐East Asia and COO for the global

and processes and shared service centres.

I left banking in early 2007 to focus on family and spend quality time with my young daughter, and therefore I missed the direct onslaught of

between various community activities and a foray

into corporate governance as an audit committee member at the Infocomm Development Authority in Singapore.

Later, I took on a more formal role with the Ministry of Finance and with the Accounting and Corporate Regulatory Authority in Singapore to assist with the development of accounting

reporting statements. This has to be counted as a unique and rewarding experience that also lead to being a member of the Advisory Council to the International Accounting Standards Board (IASB).

Eventually some search consultant dug me out of a four year retirement to bring me back to my passion in banking for a role as the CFO of Emirates NBD where I have now completed two very challenging yet satisfying years.

Outside the workplace, my interest lies in reading

across the world. I am glad that my family also loves to travel and that allows us to learn about new people and cultures each holiday we take.

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MOVERS & SHAKERS

BATTLE AGAINST

SLEAZEBribery and corruption in the Middle East is no longer ‘simply a cost of doing business’

POINT BLANK

58 January 2013

THE SUBJECT of bribery and corruption in the region is still not a comfortable one. Bribery has been with us since time

immemorial, it is not new. Yet since only relatively recently, has it started to be taken seriously. Why and what to do?

To understand why, we need to go as far back as 1977, when the Foreign Corrupt Practices Act (FCPA), came into force in the United States. The legislation, which criminalised the bribery of foreign public officials, followed a string of corporate scandals in the United States.

Since the FCPA came into force, American business leaders have complained that US companies were placed at an unfair disadvantage because they were not able to operate on a level playing field. This led to pressure for US politicians to encourage other countries to take a similar stance. It also culminated in the signing of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions in 1997.

Simply put, the convention is aimed at reducing corruption by encouraging sanctions against bribery in international business transactions carried out by companies. Its goal is to create a truly level playing field in today's international business environment.

The 39 countries that signed the convention (none of whom were originally in the Middle East) agreed to put in place legislation that criminalises the act of bribing a foreign public official. This has led to a f lurry of legislation.

We have recently seen the passing of the UK Bribery Act. At least five countries in the EU

have or, are, currently amending their bribery laws including the Czech Republic, Ireland, Luxembourg, Romania and Sweden. Outside the EU, Australia, Brazil Mexico, India and Russia have also either recently amended, or are considering amending their statutes. Zambia is the only African country cited.

Until relatively recently, governments in the Middle East have watched these developments from the sidelines. However, there are signs that here too, governments are starting to take the subject of corruption seriously. In June 2012, it was announced that in the UAE, the State Audit Institution has been instructed to prepare an anti-‐corruption draft law. Meanwhile, back in November, 2011, Qatar announced the set up an anti-‐corruption watchdog, the Administrative Control and Transparency Authority (ACTA), which has been tasked with tracking state ministries and agencies and probing claims of abuse of power or public funds.

Why then, if corruption has been with us since well before the Pharaohs, are we suddenly seeing an interest in the topic? It has long been understood that bribery has a detrimental effect on economic development. Bribes, even small payments, are socially damaging as they promote a cultural acceptance of a vice that tends to lead to the spread of corruption and the undermining of legitimate governance and the rule of law.

Egregious business practices not only stif le a country’s internal national economic development but also significantly curtail sustainable and beneficial foreign direct investment opportunities. Countries that lack transparency and clarity of regulations pertaining to business are generally less attractive to foreign investors.

The realisation that corruption is harmful is however not the only driving force for change, embarrassing investigations, multi-‐million dollar fines, blacklisting of companies and even jail time for executives are surely having an effect too.

We have seen more and more bribery allegations reported in the media, many of them involving Middle East companies. The sectors that crop up most often include, defense, healthcare and oil and gas but there are also a number of

Governments in the Middle East have started to take the subject of corruption seriously, with the UAE instructing the State Audit Institution to prepare an anti-corruption draft law and Qatar announcing it has set up an anti-corruption watchdog.

DIRECTOR, RISK CONSULTING, FORENSIC - KPMG

CHARLES ROBSON

59

POINT BLANK

THE SUBJECT of bribery and corruption in the region is still not a comfortable one. Bribery has been with us since time

immemorial, it is not new. Yet since only relatively recently, has it started to be taken seriously. Why and what to do?

To understand why, we need to go as far back as 1977, when the Foreign Corrupt Practices Act (FCPA), came into force in the United States. The legislation, which criminalised the bribery of foreign public officials, followed a string of corporate scandals in the United States.

Since the FCPA came into force, American business leaders have complained that US companies were placed at an unfair disadvantage because they were not able to operate on a level playing field. This led to pressure for US politicians to encourage other countries to take a similar stance. It also culminated in the signing of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions in 1997.

Simply put, the convention is aimed at reducing corruption by encouraging sanctions against bribery in international business transactions carried out by companies. Its goal is to create a truly level playing field in today's international business environment.

The 39 countries that signed the convention (none of whom were originally in the Middle East) agreed to put in place legislation that criminalises the act of bribing a foreign public official. This has led to a f lurry of legislation.

We have recently seen the passing of the UK Bribery Act. At least five countries in the EU

have or, are, currently amending their bribery laws including the Czech Republic, Ireland, Luxembourg, Romania and Sweden. Outside the EU, Australia, Brazil Mexico, India and Russia have also either recently amended, or are considering amending their statutes. Zambia is the only African country cited.

Until relatively recently, governments in the Middle East have watched these developments from the sidelines. However, there are signs that here too, governments are starting to take the subject of corruption seriously. In June 2012, it was announced that in the UAE, the State Audit Institution has been instructed to prepare an anti-‐corruption draft law. Meanwhile, back in November, 2011, Qatar announced the set up an anti-‐corruption watchdog, the Administrative Control and Transparency Authority (ACTA), which has been tasked with tracking state ministries and agencies and probing claims of abuse of power or public funds.

Why then, if corruption has been with us since well before the Pharaohs, are we suddenly seeing an interest in the topic? It has long been understood that bribery has a detrimental effect on economic development. Bribes, even small payments, are socially damaging as they promote a cultural acceptance of a vice that tends to lead to the spread of corruption and the undermining of legitimate governance and the rule of law.

Egregious business practices not only stif le a country’s internal national economic development but also significantly curtail sustainable and beneficial foreign direct investment opportunities. Countries that lack transparency and clarity of regulations pertaining to business are generally less attractive to foreign investors.

The realisation that corruption is harmful is however not the only driving force for change, embarrassing investigations, multi-‐million dollar fines, blacklisting of companies and even jail time for executives are surely having an effect too.

We have seen more and more bribery allegations reported in the media, many of them involving Middle East companies. The sectors that crop up most often include, defense, healthcare and oil and gas but there are also a number of

Governments in the Middle East have started to take the subject of corruption seriously, with the UAE instructing the State Audit Institution to prepare an anti-corruption draft law and Qatar announcing it has set up an anti-corruption watchdog.

DIRECTOR, RISK CONSULTING, FORENSIC - KPMG

CHARLES ROBSON

59

POINT BLANK

reported cases in the construction sector and indeed diversified industrials.

Ignorance is not a defense. Regulators are starting to hold companies criminally liable if they don’t have adequate anti-‐bribery procedures in place. It is important to realise that this duty of care extends to agents and distributors acting on an organisation’s behalf.

What procedures should an organisation have in place? Until relatively recently, the level of guidance in this area was poor, no longer. Transparency International recently issued detailed guidance on the topic, whereas the UK Ministry of Justice (MoJ) has suggested a risk-‐based approach to managing bribery based on six key principles. These six principles follow a common sense approach and are explained below:

1. Proportionate Procedures

An organisation should put in place adequate and proportionate anti-‐bribery procedures. In practice, this means, procedures that take into account the size, industry sector, geography, nature and complexity of the organisation. Regulators expect simple, practical procedures that are proportionate to the level of risk. As a minimum, organisations should:

Develop a corporate anti-‐bribery and corruption policy;

Prepare ancillary policies and procedures to cover areas of high risk, such as, gifts and entertainment and charitable donations; and

Establish bribery incident management procedures to ensure that suspected cases of bribery and corruption are duly escalated, adequately handled and independently and competently investigated.

2. Demonstrable Top-‐Level Commitment

Regulators expect to see clear evidence of commitment by the Board and Senior Management to

(‘Tone at the Top’). This means promoting a culture within the organisation in which bribery is never acceptable. Regulators look for a clear statement by the company against bribery, involvement of senior management in anti-‐bribery procedures (steering committees, decision making and monitoring) and

evidence of anti-‐bribery messages in internal and external communications.

3. Identification of Areas of High Bribery Risk

Organisations are expected to perform bribery risk assessments to identify which areas of the business carry a high bribery risk. When carrying this out, an organisation should consider, amongst other things:

I. Type of Business / Business Model

Certain industries have a strong history of corruption. A quick Google search using the sector name and the word corruption, may reveal multiple cases or allegations. High risk sectors have included for example, defense, healthcare (medical devices and pharmaceuticals), extraction industries, construction and customs clearance.

Tendering is also a high risk area. If tendering (either for sales or for purchases)

60 January 2013

POINT BLANK

61

is characterised by a long winded, onerous procedures and the value of the tender is high, then the level of risk is intuitively greater.

II. Geography

Certain jurisdictions are more vulnerable to bribery. Companies commonly consult corruption indices such as those published by Transparency International to focus anti-‐bribery procedures on higher risk jurisdictions; and

Transactions involving tax havens or opaque jurisdictions.

III. Use of agents or intermediaries

The level of risk increases where a business uses intermediaries. You should be particularly vigilant in cases where:

Intermediaries are recommended or required by the end customer;

A written contract is absent or informal;

The place of business cannot be easily corroborated;

The nature and size of the intermediary is inconsistent with the services rendered;

There have been inadequate background checks or invoices lack supporting documentation; or

Intermediary interaction is sporadic or for a single purpose.

IV. Treasury and Accounts Payable

Corruption risk management efforts should target cash payments, expense reimbursements, irregular payment procedures, out-‐of-‐country payments, payments to tax havens or opaque jurisdictions or one-‐off payments.

Staff should be trained to be vigilant for suspicious vendors. They should be sceptical when invoices have vague descriptions, the vendor was set up or dormant prior to doing business with you, or the vendor was founded immediately prior to f inalising the business agreement.

V. High Risk Transactions

Certain areas of expenditure should be subject to careful controls. They may include, for example:

Gifts and entertainment;

Charitable and political contributions;

Travel expenses and payments to travel agents;

Conferences and seminars; Customer education / training; and

Reimbursements of (third party) expenses.

4. Due Diligence

Speaking to Senior Management, I have often heard people say that corruption is merely ‘a cost of doing business’ but they do not condone it and their organisation will not engage in corruption but they cannot vouch

POINT BLANK

for their business partners (be they, agents or intermediaries, suppliers or contractors). The regulators will not accept ignorance as a defense. On the contrary, organisations are surprised at the extent to which they are being held accountable for the actions of their business partners. This has profound implications.

The key consequence is that due diligence reviews using a proportionate risk-‐based approach, should be undertaken periodically. In particular, there should be a focus on ‘associated persons’, for example, those business partners who perform, or will perform, services on behalf of the organisation, including agents, distributors and high risk vendors.

When determining corruption risk, the business must:

Bribes, even small payments, are socially damaging as they promote a cultural acceptance of a vice that tends to lead to the spread of corruption and the undermining of legitimate governance and the rule of law.

Determine the identity of its business partners (suppliers, contractors, agents, distributors and JV partners);

Determine the adequacy of the level of due diligence carried out on business partners;

Ensure that the organisation’s business partners are aware of the importance of compliance with anti-‐bribery legislation; and

Incorporate contractual clauses in contracts with business partners requiring adherence to anti-‐bribery practices.

Increasingly, companies are employing the use of specialist forensic organisations for this purpose. Simply asking suppliers to provide uncorroborated supporting documentation is not good enough in practice. You should independently corroborate, who the actual owners of the business partners are, how long and the extent to which they have been

reputation for conducting business with integrity.

5. Communications and Training

Periodic risk-‐based management and staff training ensures that anti-‐bribery policies and procedures are properly communicated and embedded throughout the organisation. This can be promoted by internal and external communications and training focused on high risk areas or functions of the business.

In common with other types of misconduct, it is very important that the organisation develops adequate whistleblower channels, through which, suspected cases of bribery may be anonymously reported.

6. Monitoring & Review

Last but not least, regulators should see evidence of monitoring and regular review of the anti-‐bribery procedures in place.

Although the subject of bribery may not be a comfortable one, the Boards of our top companies are slowly coming to the realisation that they can no longer afford to ignore, tolerate, or simply outsource, the problem of bribery and corruption.

The message from the regulators is clear, companies and their management will be increasingly held to account and bribery should no longer be regarded as ‘simply a cost of doing business’.

POINT BLANK

62 January 2013

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SALES EDITORIALChristopher Stevenson Joyce NjeriTel 04 440 9138 Tel 04 440 9140Email [email protected] Email [email protected]

DE T E R M I N A T I O N A N D t h e right educational background can account for a lot in today's a c c o u n t i n g, a u d i t i n g a n d

finance world.

The profession is evolving at a rapid pace and Khalil Fawaz is testament to this. Accounting has gone beyond number crunching and now involves exciting work that supports corporate strategy and growth.

This not only means greater job prospects

accountants to evolve with the times. And

to be the way forward. This is why Khalil’s journey

the new CEO of Morgan International is inspiring and indicative of the times.

evolution of his career.

“Enrolling in the CPA programme and starting my career in auditing provided me with a solid accounting and finance background that formed the basis of my career. But along

my eyes set on the top job and each career move provided me with a solid foundation

GET GOING. MOVE FORWARD’

‘

Khalil Fawaz’s journey from CFO to CEO of Morgan International is awe inspiring and worthy of admiration

DIFFERENT DIMENSIONS

64 January 2013

DE T E R M I N A T I O N A N D t h e right educational background can account for a lot in today's a c c o u n t i n g, a u d i t i n g a n d

finance world.

The profession is evolving at a rapid pace and Khalil Fawaz is testament to this. Accounting has gone beyond number crunching and now involves exciting work that supports corporate strategy and growth.

This not only means greater job prospects

accountants to evolve with the times. And

to be the way forward. This is why Khalil’s journey

the new CEO of Morgan International is inspiring and indicative of the times.

evolution of his career.

“Enrolling in the CPA programme and starting my career in auditing provided me with a solid accounting and finance background that formed the basis of my career. But along

my eyes set on the top job and each career move provided me with a solid foundation

GET GOING. MOVE FORWARD’

‘

Khalil Fawaz’s journey from CFO to CEO of Morgan International is awe inspiring and worthy of admiration


64 January 2013

The power of professional education drives progress and development. It is not a luxury but rather a necessity if the Middle East and North Africa (MENA) region wishes to play a leading role in the global economy.

MBA. This helped the 33-‐year old executive to begin his journey in accountancy and ensured he stayed abreast with new developments and trends over the years.

He says the positive impact and priceless value his education gave him is what garnered his interest in Morgan International.

International represents leading international institutions offering a wide range of programmes

Human Resources.

present across 34 locations and helps thousands of candidates each year to succeed. Morgan

his CPA using the Becker CPA Review at Morgan.

The power of professional education drives progress and development. It is not a luxury but

in the global economy.

And this is why Khalil has always been keen to

organised and presented specialised training and

industries. He was nominated the best instructor

“Teaching at Morgan has been an extremely

knowledge with aspiring professionals across the

network base and kept me abreast of the latest

Khalil acknowledges that his passion for education and ability to make an impact would be incomplete without real-‐life work experience and exposure to the challenges in the marketplace. His 12 year career has been eventful and has

"Teaching at Morgan International has been an extremely rewarding experience, it allowed me to share my knowledge with other aspiring professionals across the region, and provided the opportunity to keep abreast with the latest trends in the accounting

65


investment experience at reputable regional and

He says that each milestone in his career enriched his understanding of the industry and helped him identify knowledge gaps and the skills needed to address new developments.

“Last year particularly provided me with unparalleled exposure that helped me accomplish

the Chairman-‐General Manager of Centre for

Khalil was responsible for over 100 employees at

and management accounting departments. His active role as CFO meant he was highly involved in strategic decision-‐making and this prepped him to seamlessly transition to CEO.

structuring and execution of the Rights Issuance of

transaction represented the largest investment banking transaction in the GCC region. He was also behind an international debt arrangement

Khalil was a pioneer with vision long before he joined

His journey is a testimony of how accounting and auditing can be a springboard for a rewarding

“Historically, CFOs were more financially driven, where as nowadays they have become more involved in strategic decision making and operational activities in the companies.”

UPWARD MOBILITY:

Along with technical knowledge, the transition from auditing to CFO to CEO requires self-discipline, perseverance

66 January 2013


investment experience at reputable regional and

He says that each milestone in his career enriched his understanding of the industry and helped him identify knowledge gaps and the skills needed to address new developments.

“Last year particularly provided me with unparalleled exposure that helped me accomplish

the Chairman-‐General Manager of Centre for

Khalil was responsible for over 100 employees at

and management accounting departments. His active role as CFO meant he was highly involved in strategic decision-‐making and this prepped him to seamlessly transition to CEO.

structuring and execution of the Rights Issuance of

transaction represented the largest investment banking transaction in the GCC region. He was also behind an international debt arrangement

Khalil was a pioneer with vision long before he joined

His journey is a testimony of how accounting and auditing can be a springboard for a rewarding

“Historically, CFOs were more financially driven, where as nowadays they have become more involved in strategic decision making and operational activities in the companies.”

UPWARD MOBILITY:

Along with technical knowledge, the transition from auditing to CFO to CEO requires self-discipline, perseverance

66 January 2013


career. He began his career at one of the ‘Big 4’

as an Experienced Manager in the Assurance and Business Advisory division.

audit projects in nine countries from his base

diligence mandates.

as audit methodology champion. Recognised for

Riyadh and Bahrain. He became Vice President of Investment Banking in only six months.

He says all this experience laid the foundations to successfully take on the responsibilities of a CFO and rise to the expectations of a CEO.

while nowadays they have become more involved

in strategic decision making and operational

concepts and this is something that will allow a person to persevere and make strategic decisions

accounting industry… and plans to use his new position to promote the profession. This vision

gap’ and helping the Mena region move towards reporting standards best suited to this era of globalised business.

nationalisation. Therefore local talents need to enhance their skills through professional

have an important role to play in this rapidly

this happen. The institution provides students with a greater learning experience and empowers

Khalil says he is excited to lead Morgan into a new phase by enhancing the educational

as well as employers who wish to train their

competitive advantage.

a leader in the professional education field. As

penetrating new markets… just to name a

TOP AMBITIONS:

I had my eyes set on the top job and each career move provided me with a solid foundation and required skills to understand and drive the business forward

67


Anam Sami, an Associate 3 in KPMG Lower Gulf FS Department, recently scored the highest marks globally in her ACCA Corporate Law, Audit and Assurance paper. She talks to Accountant Middle East about her achievement and future ambitions.

KPMG STARACES ACCA EXAM

Anam Sami receives her recognition award from Stuart Dunlop, the Head of ACCA Middle East

STUDENT ACCOUNTANT

68 January 2013

My motivation for success in the academic life is based on my unrelenting curiosity and my overwhelming need to know... rather than to merely believe.

Tell us about yourself, ACCA studies and your recent achievements

I was born and brought up in Dubai and went to the UK to pursue my Bachelors in

Economics. Upon graduating, I returned back to the

I am currently pursuing Association of Chartered

I have cleared nine out of the necessary 14 papers. I have managed to score the highest marks globally in two ACCA examinations. These include Corporate Law and the Audit and Assurance paper.

The facets of accounting profession are broad, including auditing, tax, legislation, management,

which is of most interest to you?

Financial Service is one of my areas of interest and I would like to continue my association with KPMG. KPMG has a huge client base and provides excellent training and support to its employees. In future, I aspire to specialise in

ACCA papers successfully.

What drives you?

My motivation for success in the academic life is based on my unrelenting curiosity and my overwhelming need to know rather than to merely believe. I don't study for grades, but rather to satisfy my desire to know and understand.

Who is your mentor/s?

My family has been very supportive indeed and their role in the entire journey till date has been substantial. Together with my family, I would like to extend my heartfelt thanks to my teachers and mentors who made it possible for me to excel in my studies.

I would also sincerely like to thank my performance manager and colleagues for their continued support and guidance.

My performance manager has been constantly guiding me in striking the right balance between work and studies. My colleagues have been very supportive, providing me with relevant on-‐the-‐job training and helping

me manage my work amidst study leaves and preparations for exams.

Worth mentioning here is the support of the Human Resource department, which has also

their guidance it would have been nearly impossible to cope between work and studies. They helped me in the smooth processing of my study leave applications, registration of classes and much more.

What’s the best advice you can give to youngsters wanting a career in accounting?

My suggestion for all the aspirants would be that in order to succeed one should try and develop good time management skills and organisation skills. Above all one must follow a good study plan and stay focused.

How do you spend your free time? What are your interests, if any?

In my spare time I love to read. My favourite authors are John Grisham and Sydney Sheldon. Apart from

ACCA supports its 154,000 members and 432,000 students globally throughout their careers, providing services through

Its global infrastructure means that exams and support are delivered at a local level,

they are based.

69

STUDENT ACCOUNTANT

MANY MIDDLE Eastern countries are working on growing their networks of tax treaties to help domestic

businesses expand internationally and to attract foreign investment to fuel their economic growth.

Tax treaties entered across the region contain a variety of distinct features, some of which are unique to the region. Foreign companies who enter these markets should examine the specific clauses of any relevant treaties to determine where and how they should structure their investments in the region.

Treaty issues involving the UAE are particularly unique: the country does not impose corporate income tax at the national level. However, all Emirates within the UAE have enacted corporate taxes through their own decrees. For now, these decrees are only enforced for foreign oil companies with exploration rights and branches of foreign banks. In most cases, the UAE treaties are most important for eliminating foreign tax on income from outbound activities.

Given the limited tax regimes and lack of formal tax authorities in UAE, determining

PARTNER, KPMG - INTERNATIONAL AND M&A TAX ADVISORY

NILESH ASHAR

UAE’S DOUBLE TAX TREATIES Emirates enacts decrees for purposes of eliminating foreign levies on income from outbound activities

TAX TALK:

The absence of taxation or enforcement in UAE raises questions on whether resident companies are entitled to access their tax treaty networks.

TAX WATCH

70 January 2013

MANY MIDDLE Eastern countries are working on growing their networks of tax treaties to help domestic

businesses expand internationally and to attract foreign investment to fuel their economic growth.

Tax treaties entered across the region contain a variety of distinct features, some of which are unique to the region. Foreign companies who enter these markets should examine the specific clauses of any relevant treaties to determine where and how they should structure their investments in the region.

Treaty issues involving the UAE are particularly unique: the country does not impose corporate income tax at the national level. However, all Emirates within the UAE have enacted corporate taxes through their own decrees. For now, these decrees are only enforced for foreign oil companies with exploration rights and branches of foreign banks. In most cases, the UAE treaties are most important for eliminating foreign tax on income from outbound activities.

Given the limited tax regimes and lack of formal tax authorities in UAE, determining

PARTNER, KPMG - INTERNATIONAL AND M&A TAX ADVISORY

NILESH ASHAR

UAE’S DOUBLE TAX TREATIES Emirates enacts decrees for purposes of eliminating foreign levies on income from outbound activities

TAX TALK:

The absence of taxation or enforcement in UAE raises questions on whether resident companies are entitled to access their tax treaty networks.

TAX WATCH

70 January 2013

For businesses set up under one of UAE’s offshore investment holding company regimes, tax residency certificates are simply not available.

whether an entity is tax resident in these countries and thus entitled to treaty benefits can be difficult . In order to verify their entitlement to tax benefits in treaty countries, resident companies need to obtain tax residence certificates from the UAE finance ministry.

For businesses set up under one of UAE’s offshore investment holding company regimes, tax residency certificates are simply not available.

The absence of taxation or enforcement in UAE raises questions on whether resident companies are entitled to access their tax treaty networks. The challenge to the ability to access these tax treaties is based essentially on three broad arguments:

‘Liable to tax’ criterion in treaty residence articles

Lack of double taxation

Existence of tax treaty abuse

Many of the treaties of the UAE link the criteria for ‘residence’ with the entity being ‘liable to tax’ in the country. Tax authorities in some countries, such as Turkey, will accept the residency of an entity that is subject to tax by law, even if no tax is actually paid (for instance, if they are liable to tax at a zero rate for their first 50 years of establishment under the Dubai International Financial Centre (DIFC) regime).

Other countries may accept a tax residency certificate (although tax authorities may also review the entity’s substance and beneficial ownership of its income). Whether entities are liable to tax has been questioned perhaps most often by the Indian tax authorities, which led the UAE and India to drop the criterion on re-‐negotiating their treaty. In most of the UAE’s new treaty negotiations, ‘liable for tax’ clauses are being replaced by residence criterion based on ‘place of incorporation or management’.

Some tax authorities may argue that since tax treaties are intended to eliminate double

taxation, treaty access should be denied to the UAE entities since no double taxation can arise.

However, there is a strong argument that the treaties’ main purpose is to encourage investment and so the lack of taxation in the UAE should not prevent treaty access. Nevertheless, the practice of the tax authorities in the relevant countries should be regularly monitored.

Access to the UAE tax treaties can also be denied on the basis of tax treaty abuses, due to the inclusion of ‘limitation of benefits’ articles in some treaties. For example, the UAE-‐India treaty requires a UAE legal entity to have a ‘bona fide business activity’.

Similar provisions also exist in the UAE’s treaties with Luxembourg, Belgium, Korea and other countries. Even where a treaty has no such abuse provisions, the tax authorities of certain countries, such as China, are evaluating potential treaty abuse under their domestic legislation or administrative interpretations.

The above issues are among the most common problems encountered for foreign entities attempting to access the benefits of the UAE’s tax treaty networks. Unique clauses in individual treaties may present other potential barriers to accessing treaty benefits. The lack of official translations of treaties into English or other languages can create further interpretational difficulties.

Given the UAE economy’s consistent growth fuelled by long term policy and vision of the country’s leadership towards diversification and progress, international and regional trade and investments are bound to increase going forward. For companies considering the optimal structure for their operations in or through the UAE, close review of the specific terms of each relevant treaty is crucial.

71

TAX WATCH

AN ALL NEW PARADIGMRapid growth of technology is swiftly in!uencing operational processes of SMEs in the UAE

A GRADUAL SHIFT in the thinking process of management teams at small and medium business has been taking shape in the recent

past, thanks to the rapid growth of technology. One factor in particular that has guided this shift has primarily come due to the success of Apple as a mobile device, whether as a phone or a tablet.

Most business owners possess one of them and in many cases both of them. What this has done is to make them understand that the Internet and the Cloud is something to which they can extend technology solutions for their businesses.

Their private and personal data and documents are already now on Apple’s cloud and they have access to it irrespective of whether they are using a phone, iPad, or a computer at any time.

been the lessons learnt from the recession. Business

is due to the fact that most entrepreneurs are now dealing with higher volumes of information than they did a couple of years ago.

A combination of these factors is starting to make organisations to rethink about the gains that could be realised as a result of embracing a ‘Business Process Outsourcing’ route. Suddenly it is not just about an outsource provider coming in to do the accounting grind, but entrepreneurs are seeking ways of how they can get more out of the entire outsourcing process, including increased process

a safety net for legal and regulatory compliance, where applicable.

It is safe to predict that the shift in how services are provided will happen faster at the level of small and medium-‐sized business models. This is because larger enterprises face issues of security, compliance and most often sheer bureaucracy that they have to confront to accomplish the same

The change in thinking process poses a few challenges for providers of traditional accounting

themselves providing only one part of a multi-‐part solution. The entry barrier for a pure play technology player to come in and offer a composite solution is very low.

Even though the available option may not be the ideal solution, what will happen is that the customer is lost by the current provider. In the customer’s opinion the available combined option is something that is at least a couple of points better than what he was getting before. So what are we talking about here? Most small businesses have not made great CAPEX investments in software applications yet. Even if they have, they have addressed the problem partially.

There are quite a few companies offering services like invoicing, payroll, accounting, manufacturing

These providers are able to provide value because the infrastructure they use is common across multiple customers. This is called multi-‐tenanting in technology language.

FIGURE 1:

Accounting service operating model

TECHNOLOGYTALK

72 January 2013

AN ALL NEW PARADIGMRapid growth of technology is swiftly in!uencing operational processes of SMEs in the UAE

A GRADUAL SHIFT in the thinking process of management teams at small and medium business has been taking shape in the recent

past, thanks to the rapid growth of technology. One factor in particular that has guided this shift has primarily come due to the success of Apple as a mobile device, whether as a phone or a tablet.

Most business owners possess one of them and in many cases both of them. What this has done is to make them understand that the Internet and the Cloud is something to which they can extend technology solutions for their businesses.

Their private and personal data and documents are already now on Apple’s cloud and they have access to it irrespective of whether they are using a phone, iPad, or a computer at any time.

been the lessons learnt from the recession. Business

is due to the fact that most entrepreneurs are now dealing with higher volumes of information than they did a couple of years ago.

A combination of these factors is starting to make organisations to rethink about the gains that could be realised as a result of embracing a ‘Business Process Outsourcing’ route. Suddenly it is not just about an outsource provider coming in to do the accounting grind, but entrepreneurs are seeking ways of how they can get more out of the entire outsourcing process, including increased process

a safety net for legal and regulatory compliance, where applicable.

It is safe to predict that the shift in how services are provided will happen faster at the level of small and medium-‐sized business models. This is because larger enterprises face issues of security, compliance and most often sheer bureaucracy that they have to confront to accomplish the same

The change in thinking process poses a few challenges for providers of traditional accounting

themselves providing only one part of a multi-‐part solution. The entry barrier for a pure play technology player to come in and offer a composite solution is very low.

Even though the available option may not be the ideal solution, what will happen is that the customer is lost by the current provider. In the customer’s opinion the available combined option is something that is at least a couple of points better than what he was getting before. So what are we talking about here? Most small businesses have not made great CAPEX investments in software applications yet. Even if they have, they have addressed the problem partially.

There are quite a few companies offering services like invoicing, payroll, accounting, manufacturing

These providers are able to provide value because the infrastructure they use is common across multiple customers. This is called multi-‐tenanting in technology language.

FIGURE 1:

Accounting service operating model

TECHNOLOGYTALK

72 January 2013

The benefits of Finance & Accounting BPO’s have evolved substantially over the past two decades. The focus initially was more on costs, but today’s BPO providers can add strategic value to an organisation by providing actionable insights or intelligence.

It translates to operating expenditure as almost all of these providers have their own servers and data centres along with ongoing management and support services all of which is part of a monthly fee.

for these companies.

The accounting service providers have not seen the real dimension of the threat yet. That threat is going to come from nimble service companies that are starting to provide these applications alongside accounting and advisory services combined with all of the above.

Suddenly customers can opt to see a management dashboard on their mobile phone or tablet, get

unless they invested in technology CAPEX. So what is the starting point for someone who would like to

what the core and non-‐core tasks are that a business

task is to formulate a simple question. For instance ‘is it important to my customer that I do this or can I outsource it?’ If the answer is positive, then obviously this activity needs to be retained and not outsourced. This way your attention is focussed on keeping your customer happy. Now you know what can be given to a technology or a service provider.

evolved substantially over the past two decades. The focus initially in the emerging days was more on costs.

Today’s BPO providers can add strategic value to an organization by providing actionable insights or intelligence. This is a result of the tools being used in the process going through considerable maturity over a period of time. So by taking this route there are some objectives that one must look to attain.

Firstly, this should result in increasing the strength of your company. This can come from your ability to now focus better on the customer or from the expertise built and accumulated by the provider.

Secondly, you must be able to reduce projected capital costs and therefore as a result, reduce investment risks. Thirdly, it should increase access

customer must improve and they must be able to perceive this improvement. From a vendor selection perspective they need to bring understanding of your business, metrics for performance measurement and most importantly, the ability to adapt as your business undergoes changes.

with providing a model where the business process is embedded with appropriate metrics. What this

If we can manage to separate the routine from an exception it is always possible to provide a technology solution to deal with the routine.

The goal then becomes how much more can be put in a basket called ‘routine’ and how much less can be put in the basket called ‘exception’. Basically this boils down to a review of both their processes

happen when, in what order, and what the red lines are. Once this is in place the ability to set up exception rules will start to emerge and providing information on the go for decision making becomes all the more meaningful.

TECH SAVVY:

Raju Ramesh, Finesse Co-Founder and CEO

73

TECHNOLOGYTALK

The UAE Internal Audit Association (UAE-‐IAA), the local body affiliated to the Institute of Internal Auditors (IIA-‐Global),

has announced the appointment of Kevin K. Rafiq as a new Chief Executive Officer. Rafiq will be responsible for providing direction and supervision to the committees of the Association, and coordinating with the Board of Directors to strengthen partnerships with various stakeholders. Rafiq’s professional experience spans the fields of international business, marketing, customer service, leadership training and development, strategic management and partnership development. A Magna Cum Laude graduate, Rafiq holds a bachelor degree of Science in Business Administration from Strayer University-‐USA, and an MBA in International Management from the University of Maryland-‐USA.

Farook Khimani – has been promoted as a Partner at UHY -‐ an international network of independent accounting and

1, 2013. A commerce graduate, he

nearly 20 years in audit, consultancy and corporate services business of the

including audit, corporate services, administration and client management of the Northern Emirates.

Anmar Khaznadar joins the Grant

as an Assistant Manager for the Fraud and Forensics department. Prior to joining Grant

Thornton, Anmar worked for Ernst & Young as a Senior Consultant for three years, having spent four years working with conventional and Islamic banks in the MENA region. He has worked within an international capacity for multinational investment banks and large corporations within various sectors.

V.S. Ravi has been promoted as a Partner at UHY -‐ an international network of independent accounting and

Accountant from the Institute of Chartered Accountants of India. He passed the Chartered Accountancy course in the year May 1999. He is the Director of the

functions. He has over eight years post

Accounts. Ravi has been associated

accountants and trainees.

Nilesh Ashar has joined KPMG Lower Gulf as a UAE Partner and his role will focus on leading the Firm’s international and

Mergers & Acquisitions tax advisory services. He is a member of the Institute

of Chartered Accountants in India and was previously working as a Director

Nilesh brings over 17 years experience working in Tax and has led several tax structuring assignments for private equity and sovereign wealth fund clients on their acquisitions in the UK and Europe. Nilesh has a degree in Chartered Accountancy from the Institute of Chartered Accountants of India and also a Bachelor of Commerce from Mumbai University.

Mushtaq Ali Shaikh has been promoted as a Partner at UHY -‐ an international network of independent accounting and

1, 2013. Mushtaq has been part of the firm from the last 24 years. He is responsible for the day-‐to-‐day running of the Accounting function throughout the organisation, including budgeting, trade finance activity and also oversees cash-‐f low and currency requirements.

Sumeet Nayyar has been promoted as a Partner at UHY -‐ an international network of independent accounting and

2013. Sumeet has been associated with UHY since 2007 and is currently in the Consultancy and Advisory division of the

on the new HR audit product currently

APPOINTMENTSIf you have made a new appointment, promotion or have any relevant hiring

news, please email the details and a photo to [email protected]

74 January 2013

Broadcast Pro B2B GMS 270x207-E.indd 1 10/24/12 6:20 PM

INDUSTRY APPOINTMENTS

The UAE Internal Audit Association (UAE-‐IAA), the local body affiliated to the Institute of Internal Auditors (IIA-‐Global),

has announced the appointment of Kevin K. Rafiq as a new Chief Executive Officer. Rafiq will be responsible for providing direction and supervision to the committees of the Association, and coordinating with the Board of Directors to strengthen partnerships with various stakeholders. Rafiq’s professional experience spans the fields of international business, marketing, customer service, leadership training and development, strategic management and partnership development. A Magna Cum Laude graduate, Rafiq holds a bachelor degree of Science in Business Administration from Strayer University-‐USA, and an MBA in International Management from the University of Maryland-‐USA.

Farook Khimani – has been promoted as a Partner at UHY -‐ an international network of independent accounting and

1, 2013. A commerce graduate, he

nearly 20 years in audit, consultancy and corporate services business of the

including audit, corporate services, administration and client management of the Northern Emirates.

Anmar Khaznadar joins the Grant

as an Assistant Manager for the Fraud and Forensics department. Prior to joining Grant

Thornton, Anmar worked for Ernst & Young as a Senior Consultant for three years, having spent four years working with conventional and Islamic banks in the MENA region. He has worked within an international capacity for multinational investment banks and large corporations within various sectors.

V.S. Ravi has been promoted as a Partner at UHY -‐ an international network of independent accounting and

Accountant from the Institute of Chartered Accountants of India. He passed the Chartered Accountancy course in the year May 1999. He is the Director of the

functions. He has over eight years post

Accounts. Ravi has been associated

accountants and trainees.

Nilesh Ashar has joined KPMG Lower Gulf as a UAE Partner and his role will focus on leading the Firm’s international and

Mergers & Acquisitions tax advisory services. He is a member of the Institute

of Chartered Accountants in India and was previously working as a Director

Nilesh brings over 17 years experience working in Tax and has led several tax structuring assignments for private equity and sovereign wealth fund clients on their acquisitions in the UK and Europe. Nilesh has a degree in Chartered Accountancy from the Institute of Chartered Accountants of India and also a Bachelor of Commerce from Mumbai University.

Mushtaq Ali Shaikh has been promoted as a Partner at UHY -‐ an international network of independent accounting and

1, 2013. Mushtaq has been part of the firm from the last 24 years. He is responsible for the day-‐to-‐day running of the Accounting function throughout the organisation, including budgeting, trade finance activity and also oversees cash-‐f low and currency requirements.

Sumeet Nayyar has been promoted as a Partner at UHY -‐ an international network of independent accounting and

2013. Sumeet has been associated with UHY since 2007 and is currently in the Consultancy and Advisory division of the

on the new HR audit product currently

APPOINTMENTSIf you have made a new appointment, promotion or have any relevant hiring

news, please email the details and a photo to [email protected]

74 January 2013


INDUSTRY APPOINTMENTS


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