Link issue12 Final One - SCLG

5 

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In the age of globalisation, one cannot shrug off the importance 

of proximities and performances of the neighbouring, regional 

countries. A fast growing economy with trade growth in double 

figures can haul along regional countries and contribute to 

overall trade growth. One such prime example is the triangle of 

China, India and Dubai. 

As China economy heats up and India Inc. scouts for new 

markets, Dubai is destined to play a substantial role in their 

supply chains due to its strategic geographical location, stateof-the-art 

facilities in logistics, free zones, ports and airports. 

Both the Asian giants are already biggest trade partners of the 

emirate. Last year, total imports from India were worth US$6.5 

billion, with China coming next at US$6 billion. India also 

constituted Dubai’s largest export market with total exports of 

US$240 million. 

Identifying and understanding business opportunities in China 

and India requires far more than an understanding of 

technology trends and take rates. To cash in requires 

knowledge of infrastructure, supply chains, geo-political 

issues, population, density, terrain, regulatory rules and 

cultural climates. 

SCLG is fully committed to facilitate exchange of information 

and finding new ways to facilitate more opportuninties for the 

business communities from both sides to be more deeply 

engaged in trade and in investment flows. 

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We would like to hear from you ! 

We welcome your comments and views on this issue of The LINK Magazine. Your 

opinion is valuable to help us serve you better. 

Keep us updated on the activities in your organisation. Send all the exciting news 

about your company to: 

The Editor, 

magazineeditor@sclgme.org 

Supply Chain & Logistics Group | www.sclgme.org

Contents 

8 SCLG-A ROUND UP 

SCLG initiates Singapore business ties 

14 RETAIL 

A Sweet Chain Story 

08 

16 SUPPLY CHAIN 

Halal food for thought 

18 LOGISTICS 

Dubai unveils US$ 33b Airport City 

20 WAREHOUSING 

Rack and roll 

22 MARKET WATCH 

DHL implements GCC single point of entry deal 

28 MATERIAL HANDLING 

Power of Supply Chain – Automated Internal Logistics 

28 

30 PRODUCT WATCH 

Intermec launches new rugged, reusable RFID tags 

32 TRANSPORTATION 

Boeing sees US$ 2.6 trillion market for new aircraft 

35 HUMAN RESOURCES 

Workplace: In harmony with diversity 

36 GATEWAYS 

DAFZA – A benchmark for free zones 

38 Legal 

How to ride on someone else’s reputation… Legally 

40 CONSTRUCTION 

Schuco takes quality to new heights 

32 

42 INSURANCE 

Timeliness of filing a claim 

43 BANKING & FINANCE 

E-payment benefits all and sundry 

45 CASE STUDY 

Virgin Atlantic Airways uses Symbol RFID solution 

47 INFORMATION TECHNOLOGY 

How RFID can help optimise supply chain management 

50 ACADEMIA 

A bended learning approach 

53 EVENT SPOTLIGHT 

First annual Middle East Logistics Awards 

47 


8 

Supply Chain & Logistics Group - A Round Up 

SCLG initiates Singapore business ties 

NEW MEMBERS 

We take great pleasure in welcoming 

our members and together hope to 

attain new heights of excellence. 

SCLG Executive Committee 

NEW CORPORATE MEMBER 

Building Bridges: SCLG members having an interactive meeting with business delegation from Singapore 

Supply Chain & Logistics Group (SCLG), 

the region's first independent supply 

chain and logistics organisation, 

recently initiated business ties with 

Singapore during a meeting held with 

Standards, Productivity and Innovation 

Board (SPRING), a Singapore 

government enterprise development 

agency. 

The meeting was held under the 

patronage of Dubai Chamber of 

Commerce and Industry (DCCI), 

represented by Atiq Juma Faraj Nassib, 

Commercial Services Director, to 

extend the chamber's support to the 

SCLG's continuous initiatives for supply 

chain and logistics professionals. 

Commenting on the meeting, Mike 

Lee, SCLG President said: “We are very 

pleased to extend SCLG's operations to 

a global level. With the full support 

from DCCI we look forward to 

strengthening our relationship with 

Singapore's supply chain and logistics 

operations for positive future 

collaborations.” 

"On behalf of DCCI, I would like to 

congratulate SCLG on hosting a 

constructive meeting with the 

Singapore delegation that further 

demonstrates their leadership position 

in the region and expertise in this 

field," said Atiq Juma Faraj Nassib, 

DCCI Commercial Services Director. 

“Dubai and Singapore enjoy 

prominent positions as regional 

logistics hubs for both the Middle East 

and South East Asia. With this in mind, 

we are committed to cooperation 

between SCLG and SPRING and look 

forward together to raising the bar in 

the industry,” Lee added. 

Hellmann 

Worldwide 

Logistics 

employs 15,000 

people globally and is present in over 

370 locations in approximately 140 

countries worldwide. This positions 

HWL as a truly global supply chain 

provider. HWL Dubai provides Air 

freight, Sea freight, Air Charter, 

Warehousing and Distribution services 

to a range of local and international 

clients. 

To support it’s future expansion 

plans, HWL is building a new 

distribution centre in JAFZ, to be 

operational by January 2007. 

Jinendra Sancheti, TNT 

Sancheti 

joins SCLG's 

Advisory 

Board 

Jinendra Sancheti is the Regional Vice 

President for India, Middle East and 

Africa region, responsible for TNT 

operations in 42 countries spanning 

over the Indian subcontinent, Middle 

East and Africa. 

A Chartered Accountant and 

Company Secretary by training, he 

joined TNT in 1990 in Bahrain and has 

held various positions in the company 

in the Middle East, Africa and Asia 

regions. 

He has wide industry experience and 

has been associated with a number of 

associations and forums, including the 

Express Industry Council and the Supply 

Chain and Logistics Group. He is a 

keen observer of the global trends and 

logistics in the Express industries and 

frequently participates in related 

forums. 

Perfect Picture: SCLG and Singapore business community pose for a group photo 


Supply Chain & Logistics Group - A Round Up 

9 

SCLG Networking Night 

-creating connections and building business relationships 

More than 100 people gathered at 

Hotel Kempinski, Mall of Emirates on 

the occasion of the Supply Chain and 

Logistics Group’s (SCLG) Networking 

Night. With a vision to unite 

professionals from various industries 

and to ignite possible business 

relationships, SCLG did not fail to 

impress. Fully furnished with its posh 

decoration, the venue glittered with 

lightings and most of all, smiles from 

members who were eager and anxious 

to prospect. 

Following the registration was a full 

hour of business networking session. 

Many exchanged name cards, nature 

of businesses, business plans, and 

some interchanged firm hand shakes. 

The attendees mingled freely and 

delightfully snacked on the 

complimentary food and cold drinks, 

courtesy the event co-sponsors 

TrackIT and Symbol Technologies. 

The Networking Night programme 

included presentations by Marco 

Landi of Symbol Technologies, Vivek 

Vijayan of Zebra Technologies, and 

V. Soma Sekhar of TrackIT Solutions 

which the audience gave full 

attention. 


About SCLG 11 

Meet SCLG President 

( Mike Lee 

) 

President of Supply Chain and Logistics 

Group, Mike Lee shares some notes as 

he gets onboard the new Executive 

Committee. 

As new SCLG president, what do you 

see as your top three priorities for 

the year and why? 

My focus for the year is on 

fundamentals. First, SCLG is a business 

group of supply chain professionals, so 

my top priority is to gain the 

participation of community not 

currently involved. Second, beyond the 

issue of getting more professionals 

involved, I also want to increase the 

involvement and participation of the 

existing membership. Some of this is as 

simple as doing a better job of keeping 

the membership informed about the 

many events and initiatives happening 

under SCLG. Third, I feel there is a 

strong need to strengthen the means 

for sharing information among 

professionals across industries. It will 

be my priority to see SCLG becomes a 

platform to discuss problem areas or 

create impulses for addressing it to the 

right institutions. 

Is it the job of SCLG to do more 

outreach to policy makers? 

SCLG certainly does need to conduct 

outreach to policy makers. I tend to 

avoid the term "lobbying," since it 

often seems to be associated with 

fundraising or influence pedaling, 

angles from which SCLG isn't involved 

at all. We believe we have a very 

credible voice as a business group, and 

we're increasingly being sought out for 

input in business policy issues. 

Currently how many members are 

there in SCLG? What benefits they 

enjoy? 

At the moment SCLG has 

approximately 250 members. 

SCLG gives members a chance to 

network with people in the industry 

that either require supply chain 

services or provide it. It is a great 

opportunity for them to find agenda 

items that may have not been within 

their scope. Also, our members get a 

chance to further their professional 

development through continuing 

education, seminars, training and 

other opportunities that we conduct 

from time to time. 

Is SCLG also involved in educational 

training? 

In the past, some members had 

enough foresight to recognise the need 

and had set up a working group within 

SCLG for Education and Advancement 

of Training. We inherited that and will 

continue doing the good work with 

same vigour and enthusiasm. 

How do you envision the growth of 

SCLG’s membership? 

The SCLG has been really successful 

in getting supply chain service 

providers and some noteworthy supply 

chain directors in the past two years. 

As we move forward, it is important to 

enjoin more end-users, who are supply 

chain practitioners deeply involved in 

their respective industries. Once they 

get onboard, we will have more 

collaborative relationships to tackle 

similar issues and challenges 

encountered in day-to-day operations. 

I think this way, growth will 

be felt more by each member. 

One thing is for sure: we must create 

more and more reasons why people 

should join us. If we have something 

that would benefit everybody, then 

everyone would be more interested in 

joining. 

What should someone do if they are 

interested in getting more involved? 

If you want to be a member or want 

to know about SCLG activities contact 

our administrator or check out our 

website (www.sclgme.org). We are 

always interested in developing 

contacts and recruiting new members. 

If there's something any member want 

the Group to do for him or industry, let 

us know; and consider being a part of 

making this happen. 

Are there any issues for the Group? 

I think it is a must to have a better, 

solid understanding of what constitutes 

the whole supply chain. For instance, 

moving products have to be viewed 

beyond warehousing and distribution. 

My observation in the Middle East, 

there is an over viewing of the whole 

cost of getting the merchandise to the 

market. But for now, the real challenge 

lies in getting everybody onboard. 

SCLG needs to be more energetic in 

enjoining participation from every 

practitioner. 

What are the opportunities for SCLG 

having its base here in Dubai? 

Dubai is creating a domestic 

environment for people to reside here 

but may not work here. Under the DCCI 

umbrella, we have this opportunity to 

get members whose business is away 

from the Middle East. From there, we 

can move on to talk about CIS issues, or 

the African continent issues. 


12 

About SCLG 

SUPPLY CHAIN & LOGISTICS GROUP 

SCLG BOARD OF ADVISORS 

Shashi Shekhar 

Emirates SkyCargo 

Mohammed Sharaf 

Dubai International 

Sanjay Naik 

Emirates Group 

Fadi Ghandour 

Aramex 

Mishal Hamed Kanoo 

Kanoo Group 

Clifford Cuttelle 

Tagstone 

David Wild 

DHL 

Michael Proffitt 

Dubai Logistic City 

Supply Chain & Logistics Group (SCLG) of the Middle 

East is a non-profit organisation, working under the 

umbrella of Dubai Chamber of Commerce& Industry to 

promote the cause of supply chain and logistics 

industry. This group brings an opportunity for personal 

and professional developments by offering networking 

prospects among like-minded professionals and 

corporations on a global basis. 

The SCLG was founded with the help of senior 

management professionals representing a wide 

spectrum of industries on Supply Chain. This group shall 

strive to bring the best of education, seminars and 

interaction through partnership/ alliances with a 

variety of similar bodies across the globe. 

The Link is the official magazine of the SCLG 

addressing the needs of the Logistics and Supply Chain 

Professionals/Management in the region. It presents 

news, views, developments and information to its 

readers drawn from the industry experts. The magazine 

aspires to serve as a benchmark guide to the industry, 

the first of its kind in the region. 

The articles offer valuable insight and information 

for today's Supply Chain executives. These articles and 

news features cover innovative supply chain practices, 

emerging technologies, e-commerce, market 

information from industry leaders and reports on breakthrough 

innovative practices. The Supply Chain and 

Logistics industry is still in the development stage in the 

region, but activities of SCLG will help build renewed 

professionalism in the industry. 

Hamdi Osman 

FedEx 

Saadi Al Rais 

RHS Logistics 

SCLG MEMBERSHIP 

CORPORATE MEMBERSHIP 

Membership is open to all organisations. Corporate 

members shall/may nominate 4 representatives. All 

nominated members shall be allowed to vote at the 

Annual General Meeting (AGM), and at any 

Extraordinary General Meetings. Board of Advisors 

and Executive Committee members shall decide the 

annual fees for membership. 

INDIVIDUAL MEMBERSHIP 

Open to any individual from any part of the world. 

The annual subscription shall be set from time to 

time as deemed necessary by the Board of Advisors 

and Executive Committee members. 

STUDENT MEMBERSHIP 

Open to students, full-time education only. 

Student membership shall not convey any voting 

rights to the individual. The annual subscription 

shall be set from time to time as deemed necessary 

by the Board of Advisors/ Executive committee 

members. 

Rob Turner 

Nestle Middle East 

Jinendra Sancheti 

TNT Express 

For details log on to: www.sclgme.org 

MORE REASONS - WHY BELONG TO SCLG? 

Access to Educational Training and Seminars at 

concessional rates. 

A Membership Certificate - to distinguish you/ your 

company as professionally focused enterprise 

committed to the cause of Supply Chain and Logistics 

• Access to networking evening(s) at 

rebated rates 

• Access to 'member only' section of 

SCLG coming soon 

• Rebates on Subscription of Membership to 

international partnering body of SCLG 

• Membership Card (discount offers being 

discussed at leading retailers /service 

providers) and many more to come............ 

Visit our website (www.sclgme.org) for more details. 

Wish to volunteer on various Sub Committee to 

support us in managing and fostering Supply Chain & 

Logistics Community? 

Contact - Kanchan Vora at admin@sclgme.org 

MISSION OF SCLG 

To provide an accessible, dynamic and professional 

networking environment that facilitates the 

achievement of professional, educational and personal 

goals, by members of SCLG community in an 

atmosphere that encourages professional development, 

diversity and innovation in Logistics and Supply Chain 

Management. 

OBJECTIVES OF SCLG 

• To promote the cause of Logistics and Supply Chain 

industry and raise the overall standards of all industries 

on end to end supply chain 

• To protect the interest of member organisations and 

support government bodies in formulation of policy 

framework for logistics organisations 

• To encourage the free exchange of knowledge and 

skills relating to supply chain and logistics within the 

members of the organisation 

• To provide all members an opportunity to network 

among each other and help facilitate an overall 

efficient commercial environment 

• Undertake studies, compute and maintain 

information, statistical data and official documents 

relating to various aspects of supply chain and logistics 

industry for the benefit of all 

• To establish and maintain contact with similar 

organisations internationally and provide all members 

an opportunity to network with like-minded 

organisations/ members across the globe 

• To conduct training courses, seminars, conferences 

and studies relating logistics and supply chain; also 

establish a library and research centre relating this 

industry to expand the knowledge base 

• To establish good relations with other professional 

groups or societies that are existing or to be established 

locally or globally 

• To promote the cause of education in Supply Chain 

and Logistics among nationals of UAE and thereby 

contribute to build a cadre of professional and extra 

competent nationals to take up current and future 

challenges of Logistics/ Supply Chain industries. 


About SCLG 13 

SCLG CONSULTIVE COMMITTEE 

Jan Bak 

PVAXX Limited 

Johnson Soans 

Panasonic Gulf FZE 

Pradeep Melakandy 

FMCG Logistics 

Dr. Satish Mapara 

GlobeApex Management Consultants 

C. Rajmohan 

Free Ports Shipping 

Dr. Madrecha 

Kanoo Group 

Roy A. Patterson 

UTi 

Graham Burne 

Kraft Foods 

Ravi Kashyap 

Steinweg Sharaf 

Arup Gupta 

Sharaf Logistics 

Alnoor Nagji 

Great Circle Lines 

Madhav Kurup 

Trident Freight 

VSCLG EXECUTIVE COMMITTEE 

Mike Lee 

President 

Global Shipping & Logistics 

(Al Shirawi Group) 

Sanjay Babur 

Vice President 

Cosmos Insurance 

Sai Kumar 

Treasurer 

Maltrans Logistics 

Tayssir Awada 

Dirk Van Doorn 

Abed Shaheen 

FedEx 

DHL 

Aramex 

Nigel Moore 

Usha Kaul Saraf 

Mohammed Asghar 

Logistics Recruitment 

DUC 

The Tutelage 

SCLG Endorsed Events Calendar 

2nd China Int. High-tech & Electronics Logistics 

Summit 

7-8 September 2006, Venue – Shanghai, China 

2nd Annual Asia Pacific Supply Chain & Logistics 

Summit 

11-13 September 2006, Venue – Singapore 

Southern Asia Ports, Logistics and Shipping 2006 

14-15 September 2006, Venue – Mumbai, India 

Supply Chain Summit 

26-27 September 2006, Venue – Shanghai, China 


14 

Retail 

A Sweet 

Chain Story 

Managing the sweet chain, that is – 

swimming through the confectionery 

industry is not as sweet as it may seem 

in a market where margins are tight 

and product quality is of paramount 

importance. Success in a highly 

competitive global food industry is 

sweeter only if a comprehensive and 

innovative business model becomes a 

practice. 

South Africa’s global food ingredient 

supplier, Orley Foods, and its regional 

business associate in the Middle East, Al 

Hathboor Foods employ one such 

management technique called RADAR 

business model. For the partner 

companies, a successful supply within 

the confectionery chain should involve 

Research, Attitude, Delivery and 

Relationships i.e. RADAR – prioritising 

these four key aspects of business. 

“Orley’s successful relationship with 

clients is a result of managing a journey 

that starts from the first contact 

between a company and their 

outsourcing partner, through to a 

complex relationship based on trust 

and mutual interest,” says Saul 

Abrahams, Orley Foods’ Sales and 

Marketing Manager. “However to be 

successful, all the participants in this 

chain must understand what is being 

outsourced and why, and know the 

rules of the game plan.” 

For Orley Foods, research means 

being backed by a strong technical 

team capable of developing innovative 

products considering that what sets 

brands apart in a competitive food 

industry is innovation. Orley Foods 

considers that such innovation can 

(L-R) Saul Abrahams, Sales and Marketing 

Manager, Orley Foods and Rajesh Sharma, MD, 

Al Hathboor Foods 

happen only in cross-pollination with 

customers’ marketing departments – a 

feedback system that addresses the 

exact requirements as per current 

market demands and customer 

preferences. 

Backed by internationally recognised 

food safety standards such as HACCP 

and quality management systems such 

as ISO 9001, Orley Foods competes with 

manufacturing giants from Europe and 

the United States. 

However, innovation alone cannot 

sustain competitive advantage, 

longevity and shareholder value. 

Innovation at speed (fast clip) 

combined with prompt delivery is 

crucial in the business. Delivery and 

relationship aspects are enhanced by 

the nature of Orley’s collaborative 

relationship with Al Hathboor Foods in 

Dubai. 

“Obviously as with all markets, trade 


Retail 15 

is influenced by relationships, and the 

credibility of the organisations,” states 

Abrahams. For many years now, Orley 

Foods has been promoting a variety of 

ice cream coatings and couvertures 

tailored to meet the climatic 

challenges of the region. “Through our 

association with Al Hathboor Foods and 

with their assistance, we have 

developed products tailored to the 

local conditions and have access to a 

strategically located and wellestablished 

distribution network and 

world class facilities,” adds Abrahams. 

Abrahams further noted the 

significance of a strategically planned 

and managed outsourcing initiative to 

become a ‘win-win’ situation for the 

participants involved. “Trust becomes 

more important than money in this 

marriage as outsourcing presents a 

myriad of complexities and the RADAR 

approach has been successful in 

tackling these challenges by instilling 

that sense of trust and dependency 

among business associates.” 

Al Hathboor Foods: An Extended 

Family 

Across the UAE, the family-run Orley 

brand has become a firm favourite with 

hoteliers, restaurateurs and 

confectioners serving not only the local 

population – including approximately 

16,000 South Africans who live in the 

UAE – and a throng of business 

travellers to the region, but also the 

growing tourism industry. About 90 per 

cent of chocolate chips and other 

related confectionery ingredients 

supplied to UAE markets by Al 

Hathboor Foods are inside or on top of 

popular cookies or ice cream retailed 

in the supermarket or served in airlines 

and hotels. 

As distributor, the outlook for Al 

Hathboor Foods goes beyond 

warehousing units and transporting 

products through air freight as and 

when it is required. Their role is 

treated as part of a holistic strategic 

philosophy that enables unique 

competitive / strategic advantage. 

“Exporting from South Africa to the 

Middle East obviously offers logistical 

complexity. However, the most critical 

aspect of business is the sales 

methodology and customer briefing 

processes, especially in the case of 

provision of a bespoke product,” 

explains General Manager Rajesh 

Sharma of Al Hathboor Foods. 

With retail product life cycles 

constantly being reduced, consumers 

expect more innovative and interesting 

products to hold their attention. Orley 

and Al Hathboor Foods believe that 

traditional ways of developing new 

products of 12 to 24-month R&D cycle 

times are no longer market-relevant. 

This takes the business into a new spin 

focused on customers’ requirements. 

Sharma noted, Orley’s/ AHF’s sales 

teams are also constantly working 

towards enhancing their soft skills such 

as listening besides effectively 

communicating the companies’ 

credentials while keenly focusing on 

the client or potential clients’ specific 

technical requirements or food 

challenge. “Currently, there are very 

few companies in this part of the world 

who could give the product at a volume 

determined by clients and delivered at 

their mentioned deadlines.” 

“The success of this approach was 

recently demonstrated in our provision 

of ground-breaking ice cream inclusion 

for a multinational customer. Prior to 

delivery – the entire timeframe given 

was just 12 weeks!” exclaimed 

Sharma. 

Global facts and figures posted a 

US$95-billion confectionery market in 

2002. By 2007, global sales forecast is 

projected at US$113 billion, with 

volume of 16 million tonnes. Al 

Hathboor Foods imports food 

ingredients of about 300 tonnes a year 

and Orley Foods makes sure the chain 

runs smooth, starting with 

appropriately structured and 

‘incentivised’ Technical & Innovation 

department & Logistics teams to take 

care of on-time delivery of products.

16 Supply Chain 

Halal food for 

thought 

The potential value of global halal food market 

could rise to US$500 billion, according to figures 

released by the International Market Bureau of 

Canada. 

Halal is an Arabic word meaning lawful or 

permitted. In reference to food, it is the dietary 

standard for Muslim population, as prescribed in 

Islamic holy book. 

Globally, there are an estimated two billion 

Muslim consumers of halal food, which are set to 

rise to three billion by as soon as 2010. As a 

demographic group, they spread across countries, 

typical diets and income groups, creating both a 

marketing and distribution challenges. 

Middle East analysts believe there are massive 

opportunities for local and regional producers to tap 

into and network with international distributors to 

cater to the demand for halal foodstuffs. 

Hasan A. Rimawi, Chief Technical Officer of Dubai 

Co-operative Society, tells The Link about 

complexities of Halal Food market and Al Islami’s 

successes. 

Please brief us about Al Islami Foods. 

The Al Islami story unfolds in the early seventies, 

when Hajj Saeed Bin Ahmad Lootah instituted the 

Dubai Co-operative Society. With relentless 

dedication, untiring efforts and outstanding 

integrity, the company soon began to set standards 

for others to follow. And in 1981, with a goal to 

make real halal food available for consumers, Dubai 

Co-operative Society established Al Islami. By coordinating 

Islamic supervision on all meat products 

imported from outside the UAE, Al Islami quickly 

gained the trust of millions of consumers through its 

first product line - frozen chicken - across the UAE 

and the Gulf. Spurred on by this success, Al Islami 

continued its efforts to produce a variety of real 

halal meat products like mutton, beef, burgers, 

sausages, kebabs, minced meat and much more. 

How big is the halal food market in the UAE? 

Hasan A. Rimawi 

Chief Technical Officer, 

Dubai Co-operative Society, 

Globally, halal food is US $150-billion market and 

caters to over two billion consumers worldwide. The 

UAE is witnessing a food consumption growth of an 

average 30 per cent and the food services segment 

makes up a considerable percentage of that 

amount. Unfortunately halal food does not have 

separate statistics to quote, but as the UAE 

population grows, imports of halal food products are 

also on the rise. Consumers here are very conscious 

of what they are eating and sensitive to halal aspect 

when trying new products. Without doubt, the halal 

issue is very important and high in demand. 

What are the complexities involved in halal food 

chain? 

Halal food on the surface appears to be simple to 

many people who only associate the halal food with 

animal slaughtering methods. Many non-Muslims 

associate halal as a marketing and labelling scheme. 

However, halal is a much more complex process – it 

requires complete Islamic supervision of food 


Supply Chain 17 

processes, from the preparation, 

slaughtering, ingredients used, 

cleaning, handling and processing, 

right down to transportation and 

distribution. The concept of halal food 

is truly from the farm to the table, and 

must be nutritious and prepared from 

permissible ingredients in a clean and 

hygienic manner. 

How effective is it for a halal food 

company to own and run its entire 

supply chain? 

A food company that owns its entire 

supply chain from “feed to fork” and 

perform its financial transactions in a 

halal method will have the ultimate 

solution for ensuring full halal food 

products being offered. 

Due to the complexity of the supply 

chain, many companies choose not to 

enter into this business. Maintaining 

“halalness” is more difficult for 

companies that provide a portfolio of 

different products. 

while delivering our goods to ensure its 

quality and elimination of any 

contamination or mix-up. In addition, 

Al Islami’s financial transaction is 

halal, with no interest involved. 

What are Al Islami plans to raise 

market share? 

Al Islami is now moving with the 

trend in terms of brand image 

enhancement. We changed our brand 

name from Co-op Islami to Al Islami to 

modernise it and give the brand more 

strength to compete regionally and 

internationally. New marketing 

strategies are planned and are ready 

to be launched soon. We’ll launch new 

product lines and foray into new 

markets. Al Islami believes all this 

effort will raise our market share and 

support our growth. We have also 

consolidated operations in our new 

headquarters in Dubai Investment Park 

as well as invested in IT solutions. 

Tell us about your participation in 

recently held Gulf Food Expo 2006? 

Gulf Food exhibition is the biggest in 

its category in the Middle East. Al 

Islami participates in it every year to 

demonstrate its leadership in the halal 

concept in the region. The exhibition 

presented a great opportunity for Al 

Islami to meet suppliers, customers 

and develop new business 

opportunities. Al Islami is constantly 

monitoring the latest technologies in 

the food business as many 

multinational companies take part in 

the expo. 

How does Al Islami ensure that the 

halal products are not mixed up with 

non-halal items during supply to 

retailers? 

Al Islami controls the aspect of 

supply chain piece by piece. Our 

employees are present at the 

source during the loading of 

containers when being shipped to the 

countries we serve. They ensure that 

Al Islami products only are loaded into 

containers. 

Once received at the ports, our 

containers are shipped directly to our 

central warehouse in Dubai or to our 

distributors in other countries. Our 

finished processed products are 

manufactured at our premises using 

only halal ingredients. Imported and 

processed Al Islami food products are 

distributed to retailers via our own 

fleet of trucks managed by our own 

employees. Al Islami distributors in 

different countries are qualified and 

trained to follow our own process 


18 Logistics 

Dubai unveils US$ 33b Airport City 

Dubai has a long list of superlatives 

like Burj Al Arab, Burj Dubai, The Palm, 

The World etc. – all of them known for 

putting the emirate on top of the world 

map. The latest addition to this list is 

the Dubai World Central (DWC) 

International Airport – the largest 

airport and part of massive $33 billion 

multi-phase development of DWC. 

Announced recently by H.H. General 

Sheikh Mohammed Bin Rashid Al 

Maktoum, Vice President and Prime 

Minister of the UAE and Ruler of Dubai, 

Dubai World Central is spanned over 140 

square kilometre city, almost twice the 

size of Hong Kong Island. The selfsustaining 

development in Jebel Ali 

includes Dubai World Central 

International Airport (JXB) – which when 

complete will be the world’s largest 

with a capacity equal to that currently 

of Chicago’s O’Hare and London’s 

Heathrow – and a cluster of specialised 

zones. Dubai World Central will have a 

population of some 750,000 people – 

more than the present population of 

Frankfurt and almost that of Stockholm. 

Conceived during the Government of 

Dubai’s Country Plan of 1990, the 

emirate had set aside land to construct 

second international airport in Jebel Ali 

in 2020-30. But Dubai International 

Airport (DXB) reaching its full capacity 

by 2012, the project has been 

substantially brought forward due to 

Dubai’s rapid commercial growth. 

Located in the close proximity of 

Jebel Ali Free Zone, DWC is the most 

strategically important infrastructure 

development yet launched by the 

emirate. It is designed to support 

Dubai’s aviation, tourism, commercial 

and logistics requirements until 2050. 

Phase 1 of all Dubai World Central 

components will be completed within 

the next three years period. The 

magnitude of the project is such that 

timelines are constantly evolving, with 

every effort being made to bring 

existing deadlines forward. The current 

Phase 1 plan already consists of Phases 2 

and 3 that were in place a year ago. 

Aprons are likely to be complete by 

November next year and roads will be 

ready by December 2007. 

While Dubai World Central will own all 

the land, each component will be 

contracted to several private individual 

engineering firms for development. 

Inner city transport will be the 

responsibility of Dubai World Central. 

An internal light rail network will link 

the whole of Dubai World Central and 

will be connected to rest of the emirate 

via the Dubai Light Rail Network (Dubai 

Metro). 

Although the exact number of 

residential units across Dubai World 

Central has yet to be finalised, the 

ultimate population will exceed 750,000 

people living in a mix of luxury villas, 

townhouses, super-deluxe apartments 

and blue collar accommodation. 

According to a DWC release, various 

factors came into play in reaching the 

population figure. Population growth in 

Dubai continues to surge from 690,000 

in 1995 to 862,000 in 2000 to 1.35 

million in 2005. 

Commenting on the project, 

HH Sheikh Mohammed said, “We 

have to make history and approach 

the future with steady steps, not 

wait for the future to come to us.” 

H.H. Sheikh Ahmed, President of 

Department of Civil Aviation, and 

Chairman of the Emirates Group 

and Dubai World Central said, “With 

Dubai World Central we are taking 

the future into our own hands… it 

will be a global brand known for 

its facilities and 

infrastructure.” 

Dubai World 

Central’s major 

components 

include: 

Dubai World 

C e n t r a l 

International 

Airport: 

This facility will 

be 10 times the size of 

the current Dubai 

International Airport and 

Dubai Cargo Village combined. 

The airport will have six parallel 

runways, all of 4.5 kilometres in length 

and separated by a minimum of 800 

metres wide and a 92 metre high control 

tower – the highest in the Middle East. 

There will be two luxurious terminals 

– the first dedicated to the services of 

airlines within the Emirates Group, the 

second catering to other regional and 

international carriers. A third, highly 

functional terminal is earmarked for 

low-cost charter airlines. 

The airport will have hotels and 

shopping malls, support facilities and 

state-of-the-art maintenance facilities 

which will create a regional 

maintenance hub capable of A, B and C 

checks on all aircraft, including the 

A380. 

JXB will be linked with the Dubai 

International Airport (DXB) via an 

express rail system and will be serviced 

by the Dubai Light Railway Network 

(Dubai Metro). Some 100,000 car 

parking 

spaces 

will be 

available 


Logistics 19 

for airport parking and car rental 

services. 

The Dubai World Central International 

Airport (JXB) will have handling capacity 

of over 12 million tonnes of cargo a year, 

120 million passengers annually and 

capable of handling all new generation 

aircraft. 

Dubai Logistics City (DLC) 

This key plank in Dubai’s integrated 

multi-model logistics proposition 

represents Phase I of Dubai World 

Central. Spanning over 25 square 

kilometres, Dubai Logistics City is 

designed to ultimately handle 12 million 

tonnes of air cargo annually in up to 16 

air cargo terminals. Work on the 

project, which is due to be operational 

at the end of next year, is 

already underway. Work 

on Phase 1 has already 

commenced and 

infrastructure is expected 

to be 

complete by 2007. Work is progressing 

well on the first 4.5 kilometre, CAT III, 

all-weather runway which allows for 

automatic landing. 

DLC will have its own aviation area, a 

dedicated cluster for specialised 

aviation industry suppliers and offering 

direct apron access and a dedicated 

labour village accommodating up to 

40,000 workers in purpose-built 

surroundings. The labour village, in a 

built-up area of 350,000 square metres, 

will be built and managed by DLC. 

Residential City: 

To be developed in three phases and 

covering some 7.16 million square 

metres, freehold land plots in 

Residential City are to be offered to 

developers 

on the open 

market who 

will then 

build in 

accordance 

with master 

p l a n 

guidelines. 

Phase 1 will 

see land plots 

for sale by the end of 

2007. Up to 250,000 

people are expected to 

live in the “city” 

where some 20,000 

people will be 

employed. The 

Dubai Metro 

will serve 

Residential 

City which 

will also 

have a 

dedicated, 

integrated 

r o a d 

network. 

The city 

w i l l 

include 

three 

hotels – five-star, four-star and threestar 

properties – and a shopping mall. 

Homes will be a mix of two-storey villas 

and luxury apartments in blocks ranging 

up to 24 storeys in height. 

Commercial City: 

To be developed in five phases, this 

“city” will cover some 14.53 million 

square metres. Designed as Dubai World 

Central’s business and finance hub, 

Commercial City will feature more than 

850 towers, ranging from 6-75 storeys in 

height – which will be home to a variety 

of businesses expected to employ 

around 130,000 people and offer super 

deluxe homes. A cluster of luxury villas 

are also included in the master plan. 

The first phase is expected to be 

completed by the end of 2009. 

The super-deluxe apartments within 

Dubai World Central will range from 2- 

75 storeys in height with the highest 

buildings mainly in Commercial City, 

which will be in Dubai World Central’s 

business and finance centre. 

The “city” will also boast up to 25 

hotels ranging from deluxe, through to 

five-star, four-star and three-star. 

Golf Resort: 

Dubai World Central will feature two 

18-hole golf courses each having a 

distinct feel from a traditional desert 

links style to a more lush tropical resort 

course. There will also be extensive 

practice facilities, driving ranges and 

putting greens as well as a luxury 

clubhouse with restaurants and a proshop. 

Plots in Golf Resort will be offered 

on the open market to a private 

developer. 

Up to 2,500 freehold homes – ranging 

from two storey villas to 24-storey 

apartment blocks – will surround the 

courses. It will also feature a high-end 

boutique hotel complete with a spa 

resort and around 150 rooms. 

Enterprise Park: 

This will be the region’s premier 

centre of excellence for technology 

manufacturing and science and 

technology education. Phase 1 is 

expected to be completed by the end 

of 2008. 


20 Warehousing 

Rack and roll 

Customer is the king. Many believe it 

but few satisfy him. Intermetal Ltd, a 

member of the Harwal Group of 

Companies, satisfies its customers with 

innovative, creative and quality 

products with the help of a large 

network of partners in the region. 

Founded in 1992, Intermetal Ltd is 

the leading manufacturer of banquet 

and conference, educational, outdoor 

and poolside and restaurant furniture 

in the Middle East. The company’s 

manufacturing facility in Sharjah 

utilises the latest technology to create 

a product range that is unrivalled in 

terms of world-class quality, 

uniqueness and cost effectiveness. It 

exports its products to more than 53 

countries worldwide. 

Intermetal Ltd forayed into racking 

industry three years ago to capture a 

sizeable market share. In such a short 

span of time the furniture major has 

also become the biggest manufacturer 

of racking systems in the country. It 

provides a complete a range of racking 

solutions from design to manufacturing 

and installation. 

According to Intermetal General 

Manager Nishan Basmajian, “If you are 

looking to fit out a warehouse, or 

require a few more bays of storage or 

just need accessories for an existing 

Nishan Basmajian 

General Manager, Intermetal 

system, Intermetal is here to help. We 

can advise you on the best storage 

solution using our vast product range.” 

“In just three years, the company’s 

sales have tripled, thanks to our new 

and innovative high quality products 

that stand the test of time. Our 

philosophy has always been to satisfy 

customer needs and provide innovative 

products at the best price possible. Our 

products are highly user-friendly and 

available in a wide range of sizes and 

designs. We also offer the customer an 

option of selecting the colour.” 

“Intermetal is a brand now in racking 

industry. A brand that is very well 

accepted and recognised for its quality. 

And that’s why our major clients 

include some of the big name in their 

respective industries for instance DHL, 

RAK Ceramics, Sultan Bin Rashid 

Establishments and Cosmos among the 

few.” 

The company’s interrack pallet 

racking helps manage the warehouse 

space effectively. The system not only 

helps reduce material handling and 

holding costs but also maximises 

productivity. Among the key 

advantages it offers include complete 

selectivity of items stored; more cubic 

space achieved as full utilisation of 

vertical space; systematic and safe 

storage of items resulting in improved 

house-keeping; reduce down time in 

storage/retrieval. The pallet racking is 

compatible with all type of material 

handling equipment and is capable of 

handling both palletised and nonpalletised 

goods. 

Intermetal’s racking products also 

meet the standard to withstand the 

extreme conditions. “Our racking 

products can handle the extreme hot 

temperatures like it’s in the UAE and 

the freezing cold warehouses 

temperatures which go to -23 degrees. 

For this purpose, anti-corrosion of the 

highest standard is done in-house by 

our experienced staff. The racking 

components are manufactured on highspeed 

roll forming machines and 

welded robotically at critical points. 

They are also subjected to elaborate 

pre-treatment processes and provided 

with epoxy polyester powder-coating, 

guaranteeing a lasting and scratchresistant 

finish.” 

Intermetal’s another key product – 

drive-in pallet racking – which ensures 

maximum space utilisation, making it 

ideal for investment temperaturecontrolled 

stores, where storage costs 

per pallet can be high. Drive-in 

racking’s arm bracket comes with a 

combination of lancings and bolts to 

ensure rigidity of the joint; high- 


Warehousing 21 

visibility upright guards to protect the 

upright from forklift damage; selfcetering 

type pallet support to easily 

guide and position the pallet; and floor 

and entry rails to guide the forklift 

while entering and traveling within 

bays to prevent damage. 

The company is currently engaged in 

a prestigious major project in Qatarbased 

Al Mannai Group of Companies in 

installing racking system in its 

warehouse. “Officials from Al Manni 

Group toured our facility in the UAE 

and were awed by the quality of our 

racking products and the advanced 

technology we employ in our facility. 

The Qatari company immediately inked 

a deal with Intermetal to install 

racking there.” 

Racking industry is 

witnessing strong 

growth throughout the 

Middle East as the 

warehouse industry 

expands and construction 

sector boom continues 

unabated. The total 

racking industry is 

estimated to be valued 

at AED150 million in the 

region with growth 

momentum likely 

to continue 

Intermetal Ltd is also fast expanding 

in the Middle East markets like Qatar, 

Kuwait, Saudi Arabia and Tanzania. 

“We are also getting inquiries from 

United Kingdom. In fact, we sent our 

samples which were at par with the 

European standards. The steel we use 

in our products is of very high quality as 

it is not ordinary steel. Not every 

company can afford to buy that grade 

of steel as you have to order a 

particular quantity of steel which costs 

very high.” 

Racking industry is witnessing strong 

growth throughout the Middle East 

region as the warehouse industry 

expands and construction sector boom 

continues unabated. According to an 

Intermetal Ltd research report, the 

total racking industry is estimated to 

be valued at AED150 million in the 

region with growth momentum likely to 

continue. 

“To achieve sustainable growth and 

profitability for all stakeholders, we’re 

committed to continually improving 

the effectiveness of our quality 

management system, by reviewing our 

quality objectives, improving our 

manufacturing processes and 

enhancing the competency of our 

employees. Recently, a robotised 

welding line was installed to improve 

efficiencies at the facility and gyrating 

is also done automatically with the 

help of robots that work 24 hours a day 

welding the beams for racking. The 

combination of this advanced process 

along with a fully automated bending 

machine and more traditional 

fabrication methods has further set the 

company ahead from its competitors.” 

The company has also embarked on a 

major expansion drive under which 

some of its facilities and operations will 

be relocated to Dubai Industrial City 

where the furniture and racking major 

has already purchased land for the 

purpose. “We will also shift our racking 

operations to the Dubai Industrial City. 

This multi-million dirhams expansion 

will facilitate us to meet the growing 

demand for our products in the racking 

segment. We’ll also enter into software 

industry. It’s also a fast growing industry 

and our new company will cater to the 

industry and Harwal Group,” said the 

articulate and eloquent Intermetal 

General Manager. 

He said the affiliated sectors – 

construction and warehouse – are 

giving fillip to racking industry to grow 

faster. Both of these industries are 

growing at a fairly strong pace, taking 

the racking segment along with them. 

“We forayed into this segment after 

conducting a comprehensive study. We 

found it a very lucrative business 

offering strong returns. All the other 

affiliated and non-affiliated industries 

are also aware of the significance of 

the racking. Considering the space 

constraints, the trend has shifted from 

horizontal to vertical. You can’t 

expand horizontally but you’ve to go 

vertical. As a result racking is the 

solution,” he concluded. 


22 Market Watch 

DHL implements GCC Single Point of Entry deal 

DHL has announced it has successfully 

implemented the Single Point of Entry 

(SPE) agreement as part of the GCC 

Customs Union. 

The move is set to provide a swift 

enhanced service to DHL GCC 

customers by cutting shipment delivery 

times by up to half a day. 

Implementation of the SPE agreement 

of GCC Customs Union allows DHL to 

perform one time processing of 

customs clearance upon entrance into 

its hubs in the region. 

DHL Middle East will provide SPE 

customs clearance in their hubs in 

Jebel Ali and Bahrain, as they are the 

Dubai Duty Free deploys Oracle Retail Solution 

primary entry for all freight arriving 

into the Middle East. John Ennis, 

Customs and Gateway Manager, DHL 

Middle East said: “This is a huge 

development for DHL and will allow us 

to provide even better services to all 

our GCC based customers as we expand 

this process in the future. The GCC 

Customs Union is one of economic 

agreements that supports the SPE 

process fully and we look forward to 

further developments within the GCC 

Customs Union in a drive to facilitate 

trade in the region.” 

Through implementation of SPE, the 

Deutsche Post World Net (DPWN) 

subsidiary will not only improve 

delivery times by up to half a day, but 

will also reduce the overall cost of 

international trade within the Council 

states by centralising the customs 

clearance at point of entry, the 

company said. 

The SPE principle is an integral 

part of the Unified Economic 

Agreement among the GCC States 

declared in 2002 in Doha, Qatar. The 

concept of the ‘First Point of Entry’ is 

currently implemented between 

Bahrain and Kuwait and not between 

all the GCC States. 

Dubai Duty Free (DDF) has announced 

that it has selected Oracle Retail 

Warehouse Management System 

(ORWMS) to streamline the movement 

of merchandise and data, giving them 

the back office information technology 

infrastructure to 

support their 

2006 target of 

$670 million in 

retail sales. The 

ORWMS will be 

deployed in the 

new 27,000 

sq. mt. semiautomated 

Distribution 

Center that is 

being built by 

Dubai Duty Free 

to support its 

growing retail business at Dubai 

International Aiport. 

The Oracle Retail Warehouse 

Management System offers 

sophisticated yet flexible configuration 

and built-in best practices, to 

coordinate the movement of goods 

through the warehouse and ensure 

supply issues are dealt with before they 

result in gaps on the shelves. Real-time 

inventory management results in 

improved forecasting, planning and 

allocation, and the extended 

capabilities mean that benefits are also 

appreciated by partners and suppliers 

of the retail leader. 

“With over 20,000 unique items of 

merchandise, the new Oracle Retail 

Warehousing Management System will 

be critical in accelerating and 

optimising the flow of goods from store 

to shelf, reducing lead times, freeing 

up people to focus on other areas, and 

ultimately eliminating lost sales due to 

out of stock situations” commented 

George Horan, Deputy Managing 

Director, Dubai Duty Free. 


Market Watch 23 

FAMCO wins warehousing project 

at Airport Cargo Terminal 

FAMCO has been awarded the 

subcontract by SD Middle East 

(Siemens) for the supply and 

installation of a state-of-theart 

Dexion ASRS (Automatic 

Storage & Retrieval System) 

to the new Cargo 

Mega Terminal at the 

Dubai International Airport 

expansion project. 

On behalf of the 

Department of Civil Aviation, 

the Cargo Mega Terminal 

will allow receipt of air 

freight on the air side of the 

airport, to be broken down 

for transhipment or for local 

deliveries by road from the 

land side. 

The scope of work for 

FAMCO and Dexion is 

the design, engineering, 

manufacture, installation, 

commissioning and handover 

of the ASRS racking system, 

the connections between 

the hoist towers and racking 

system, overhead access 

walkway for maintenance 

of the hoists plus site 

supervision and project 

management. 

Dubai textile trade crosses 

AED 21 billion 

The textile market in the 

Middle East has continued its 

strong growth in 2005, with 

total trade through Dubai 

touching an astonishing AED 

21.5 billion, an increase of 15 

per cent over the previous 

year, according to trade 

traffic statistics compiled by 

the Statistics Department of 

Dubai Ports, Customs and Free 

Zone Corporation (PCFC). 

Total imports increased from 

AED 12.1 billion in 2004 to AED 

13.4 in 2005, whereas reexports 

increased from AED 5.8 

billion to AED 7.1 billion over 

the same period. Total value of 

exports was pegged at AED 894 

million, up from AED 624 

million in 2004. 

Woven fabrics of synthetic 

filament yarn comprised the 

bulk of the total trade with a 

22 per cent share, followed by 

knitted clothing such as t- 

shirts, singlets and vests at 7 

per cent. Women’s suits, 

ensembles and jackets also had 

a 7 per cent share. Men’s suits 

and ensembles accounted for 5 

per cent, with miscellaneous 

other products forming the 

remaining 59 per cent. 

China ranked first on the list 

of top textile exporters to 

Dubai, with total exports of 

AED 4.8 billion. India was 

second with exports worth 

AED 1.1 billion, followed by 

South Korea, Indonesia and 

Thailand at AED 1 billion, AED 

588 million and AED 461 

million respectively. 


24 

Market Watch 

Emirates SkyCargo sets sights on South America 

Putting smiles to a business partnership: SkyCargo’s Prakash Nair (right) and Scand’s Marcos Oliveira at the Intermodal 

South America Exhibition in Sao Paulo. 

In a strategic move to expand in 

markets across South America, starting 

with Brazil, Emirates SkyCargo has 

appointed Scand Air Cargo as its Cargo 

Sales Agent (CSA) in Sao Paulo. The 

appointment, timed with Emirates 

Dnata Cargo’s Freezone Logistics 

Centre (FLC) at Dubai International 

Airport is fast becoming a heavyweight 

champion, with efficient handling of 

heavy and bulky machinery shipments 

destined for Dubai’s growing industrial 

sector. 

The FLC recently handled more than 

100 tonnes of unusually large machine 

parts flown to Dubai onboard a giant 

Antonov AN124 cargo aircraft 

chartered by freight forwarder Gulf 

Agencies Company (GAC). 

The complete cargo comprised 56 

individual shipments, many weighing 

more than 17 tonnes and unusually 

A Korean delegation of 10 senior 

government officials, headed by. 

Hak-Kyu Sohn, Governor of the 

industrial Gyonggi province in Central 

Korea, visited Jebel Ali Free Zone 

Authority (Jafza) recently as part of 

efforts to promote bilateral relations 

between Korea and the UAE. The 

delegation held discussions with 

Ibrahim M. Al Janahi, Executive Vice 

President of Jafza, and 

Dr. Mohammad Al Banna, Senior Sales 

Manager, Jafza. 

SkyCargo’s participation in Intermodal 

South America, South America’s largest 

trade show, will maximize the carrier’s 

ability to service the region. 

Prakash Nair, Emirates Manager, 

Network Cargo Sales Development 

Dnata cargo offers knockout service for heavyweight shipments 

large, with the biggest measuring 9.62 

metres long, 2.45 metres wide and 2.2 

metres high. 

They were discharged from the 

heavy-lift freighter directly onto ten 

flatbed 40 foot trailers waiting on the 

tarmac at the FLC, after airside 

clearance arranged by Dnata Cargo. 

Mario Coelho, Air Freight Manager of 

GAC in Dubai Cargo Village said: “This 

was a smooth and well-coordinated 

operation. Despite short notice, 

arrangements were quickly made to 

obtain the necessary papers and 

airport passes permitting direct airside 

entry for our trailers. I would like to 

High-level Korean delegation visits Jafza 

Hak-Kyu Sohn, Ibrahim M. Al Janahi, and 

Dr. Mohammad Al Banna 

said, "Participation in Intermodal South 

America has been an important step in 

developing relationships with key 

players, potential customers and in 

raising awareness of our service 

offerings. We have chosen to work 

with Scand as they are backed by a 

solid track-record and have an 

excellent reputation in the local 

market." 

By appointing a CSA, Emirates 

SkyCargo hopes to better serve its 

customers in South America and 

increase trade access to key markets 

including Japan, India, China, 

Thailand, Hong Kong, Australasia, 

South Africa and the Middle East. 

Marcos Oliveira, President of Scand 

Air Cargo, said, "We are delighted to 

announce our new partnership with 

Emirates SkyCargo and we are proud to 

be working with such a well-respected 

industry leader." 

convey my appreciation to the entire 

Dnata Cargo team for its outstanding 

service during the entire operation.” 

The heavy machinery parts were 

imported by a consignee currently 

completing a production facility in 

Jebel Ali Free Zone . 

P.P. Kannan Nair, Dnata Cargo FLC 

Services Manager said: "These 

heavyweight shipments demonstrate 

that FLC is fast becoming the preferred 

option for charter operators in 

specialised and project cargo, who 

often require direct delivery from 

aircraft to consignee on the tarmac 

because of unusual volumes." 

The visit comes as a major step in 

promoting bilateral relations and 

enhancing mutual co-operation 

between the two countries. There 

are at present 30 Korean companies 

operating in Jafza drawn from an 

array of sectors such as trading, 

manufacturing, engineering, 

electronics and communications, and 

this number is expected to increase 

in the near future, in light of the 

growing commercial and political 

relations between Korea and Dubai. 


Market Watch 25 

Euroblast makes AED 10m investment 

in Dubai Techno Park 

(R-L) Abdalla Al Bawa of Dubai Techno Park and Kabeer Khadar of Euroblast 

signing the agreement. 

Euroblast Middle East has entered into 

an agreement with Dubai Techno Park 

to invest AED 10 million in a facility in 

the Park’s premises. The facility will be 

developed in an area of 8000 sq. mts. 

and will accommodate their specialised 

facility used to service their clients in 

the Oil & Gas and industry. 

Euroblast is a well-known name in 

the Oil & Gas industry and will use this 

production facility to mainly assemble 

and test various equipments they trade 

in. Euroblast has been providing 

sophisticated project solutions that are 

conducive to the environment. 

Abdalla Al Banna, Commercial 

Aramex employs cutting-edge 

BOOMI technology 

Aramex, the leading provider of total 

transportation solutions in the MENA 

and South Asia regions, has 

implemented the BOOMI Integration 

Platform from Span Group, a leader in 

WMS and Supply Chain solutions 

The BOOMI Integration tool enables 

Aramex to seamlessly connect its 

Exceed WMS system with their internal 

ERP, as well as to their trading 

partners. 

BOOMI enables organisations to 

quickly implement cost effective 

integration solutions by delivering 

wizard driven, code-free support of 

EDI, XML, DB, Excel, and other 

document standards, and by providing 

an integration solution for back-office 

systems. 

“With the BOOMI Integration 

Platform, we are now able to provide a 

Director, Dubai Techno 

Park said, “One of the 

leading companies in 

surface finishing 

technology, Euroblast is 

an important addition 

to the growing high 

profile companies 

operating in our 

premises. The rising 

need for quality 

products in the field of 

Oil & Gas will be 

effectively addressed 

by Euroblast’s facility in the Park, and 

we are pleased to provide them all the 

support they require in carrying out 

their business operations smoothly.” 

Euroblast’s proposed fully equipped 

technology centre will be the first-ofits-kind 

in the Middle East. From this 

centre, clients from the Oil & Gas 

industry will have the opportunity to 

test various equipments to suit their 

requirements. The facility will also 

have a R&D department which will 

focus on clients whose specific needs 

cannot be fulfilled by standard 

equipments or various combinations 

of equipments. 

value added service to our customers 

by connecting our internal systems 

with their applications regardless of 

the ERP or legacy system they are 

using,” stated Abed Shaheen, Aramex 

3PL Product Manager. “Our business 

analysts are now able to design EDI 

or XML interfaces in hours. Previously, 

this was costly both in terms of 

time and money.” 

The immediate benefits from such a 

strategic decision will constitute a 

quantum leap in services, and Aramex 

has demonstrated its ability to build 

robust interfaces in record time. This 

was one of the primary reasons why 

several major distributors, wholesalers 

and retailers recently signed contracts 

with Aramex to store their 

merchandise at the state-of-the-art 

Jebel Ali Logistics Center. 


26 

Market Watch 

AED 257m Dubai Flower Centre fully 

operational 

The AED 257 million (US$70-million) 

Dubai Flower Centre (DFC), a 

strategically located state-of-the-art 

trans-shipment facility for perishable 

goods in the region has now become 

fully operational, and has handled total 

volume of 3,475 tonnes of perishables 

in the first ten days of operation. 

DFC, operating as a free zone, 

ensures seamless and prompt delivery 

of perishables from the producer to the 

end consumer and has the capacity to 

handle 180,000 tonnes of perishable 

products a year. All existing processes, 

payments and facilities remain 

unchanged, since DFC is supported by 

Dnata Cargo and its DACS+ system 

(Chameleon) for terminal handling 

activities to ensure efficient transfer of 

perishable cargo. 

DFC has been designed as a 

transhipment hub, and the main 

handling operations for import, export 

and transit take place on the ground 

floor of the facility. Rapid and efficient 

handling is aided by a fully automatic 

system that safeguards quality and 

maximises shelf life. At the moment all 

perishable transit cargo from Emirates 

is being handled by DFC. 

DFC's computerised tracking system 

enables exporters and importers to 

track the flight status, shipment 

loading and the temperature of their 

products through the supply chain. 

Standard Chartered rolls out China-UAE 

'trade corridor' 

A special ‘trade 

corridor’ between the 

UAE and China has been 

rolled out this year to 

facilitate trade 

opportunities between 

the high-growth 

regions. Belman states 

that with years of 

banking experience in 

both the UAE and 

China, Standard 

Chartered is strongly positioned to 

partner growing businesses and help 

them take advantage of emerging 

opportunities within these regions. 

“Bilateral trade between the UAE 

and China has seen a steady increase in 

recent years, and while it is now worth 

around USD $10 billion, this figure is 

expected to climb steadily by US$1-2 

billion annually. Given that the current 

volume represents a mere two per cent 

of China’s total foreign trade, we have 

identified enormous opportunites for 

SME businesses based in the UAE to 

expand and invest,” explained Belman. 

He added that SME clients are able to 

benefit by using Standard Chartered as 

their preferred partner on both ends of 

the UAE-China trade corridor. 

“We are uniquely positioned to be 

able to provide cross-border 

relationship managers, “ he says, “and 

our SME banking unit focuses solely on 

the requirements of our clients to 

ensure they are offered the widest 

range of banking products and services 

in the market, tailored especially for 

their needs.” 


28 

Material Handling 

Power for the Supply Chain - 

Automated Internal Logistics 

Internationalisation of the markets, global 

competition, increasing quality and service 

requirements as well as individualisation of 

services shape the present economic environment. 

While internet provides the electronic exchange of 

information, physical logistics has to be able to 

guarantee efficient warehousing and a very fast 

transportation of goods. 

Speed, flexibility and highest service quality 

demand a higher much more qualified work 

force with a very high working accuracy and 

exactly defined processes. This often leads to 

remarkably higher logistical costs which are 

not always paid by the customers. Therefore 

a solution cannot be found in the optimisation 

of manual processes. A break through can 

only be achieved by implementing intelligent 

and innovative logistics technologies and 

advanced personnel concepts, says 

Manfred Lindner, owner and CEO of 

ECOLOG Logistics Systems. 

An efficient supply chain is becoming more and 

more the crucial back-bone in any industry. The 

future challenges for the complete supply chain 

are highest reliability, shortest delivery times 

and almost no delivery errors – and all of that at 

lowest prices. 

Internal logistics play a major role, as shown in 

a study for the European market: 46% of the 

overall logistics costs are part of the internal 

logistics (intralogistics)! 

In 17 of the largest European countries the 

total logistics turnover is about 700 billion euros. 

Internal logistics covers about 46% of entire 

costs, which add up to 322 billion euros. For the 

Middle East similar figures should be taken into 

account. That means that logistics costs 

represent an enormous potential for 

optimisation and cost saving. Only by using 

automation in various fields of the internal 

logistics the massive costs can be cut down 

remarkably by simultaneously increasing 

efficiency and throughput. 

Having the right goods at the right place at a 



29 

certain point of time for lowest costs 

possible is the perfect task for an 

intelligent automated warehouse 

solution, says Manfred Lindner, CEO of 

ECOLOG Logistics Systems. 

While successful companies in the 

European market have succeeded in 

reaching considerable competitive 

advantages by automating their 

internal logistics, there are still massive 

potentials in this field in many 

companies in Dubai and the entire 

Middle East Region. Those companies, 

who initiate automation within their 

premises today, will have a remarkable 

advantage in terms of cost and control 

in the nearer future. And this is the 

case for most industries. 

With the help of automatic storage 

and retrieval systems and automatic 

solutions for the continuous transport 

of goods enormous competitive 

advantages can be gained. Stock 

keeping, order picking, packing and 

dispatch are easily manageable with 

automated warehouse solutions. The 

heart of such systems is an intelligent 

Warehouse Management System (WMS) 

that controls the entire processes. 

ECOLOG uses its own Supply Chain 

Management software named CI_LOG, 

which is based on state-of-the-art 

software technology. It controls all 

warehouse processes between inbound 

and outbound areas. 

The advantages of such automated 

storage and retrieval systems are 

stunning: 

Reducing picking 

errors to zero 

The advanced 

automated 

storage and 

retrieval 

solutions allow a 

minimised 

personnel 

dependence in 

the picking area. 

Errors through 

h u m a n 

intervention are 

practically not 

possible any 

longer. 

Dramatically increased throughput 

and much shorter delivery times 

With an automatic pallet storage and 

retrieval system it is possible to store 

and retrieve several hundred pallets 

per hour with only a few employees. 

With automatic bin storage systems in 

the small picks area it is easily 

possible to pick 1,000 positions per 

hour with only 4 employees. 

Highest reliability 

The automatic storage and retrieval 

system secures up to 100 percent that 

all delivery dates can be met and kept 

under control. The customers usually 

experience a dramatic improvement 

when changing from manual to 

automatic operation. 

Reduction of the logistics costs by 

50 percent and more 

Many factors allow a dramatic cut in 

the logistics costs. Extremely low 

human-resource dependence, almost 

no costs for wrong deliveries, highest 

throughput, a perfect stock security 

and best control over the complete 

material or product flow causes a 

radical reduction in costs. 

Reduction of the personnel 

dependence 

Simple operations and shortest 

training times lead to lowest 

personnel dependence. Flexibility 

with regard to needs of specific 

customers improves very much with 

the help of automatic storage and 

retrieval systems. 

Area profit up to 80 percent 

Automatic storage and retrieval 

systems usually require only 20-40 

percent of the designated storage 

space in the warehouse. This results 

in reduced premises costs or much 

more space for expansion. 


30 Product Watch 

Intermec launches new rugged, reusable RFID tags 

Intermec’s Large Rigid tag is a truly passive UHF radio frequency identification 

(RFID) transponder that delivers superior performance on a variety of surfaces 

including plastic, wood and metal. The tag, available in both Gen 2 and ISO 18000- 

6B versions, combines an impressive range with a rugged yet compact package 

designed for harsh industrial applications and temperatures ranging from -40° to 

250° F. No other tag on the market can claim the ruggedness and worldwide 

usability of these tags. 

The Large Rigid tag has a wide band antenna design, which allows for a single tag 

to be used virtually anywhere in the world with consistent UHF range performance. 

Additionally, the tag has a robust physical package and is designed for exposure to 

substances and harsh chemicals representative of typical industrial applications, 

including machining oil, gasoline, motor oil, methyl ethyl ketone (MEK), isopropyl 

alcohol, methyl alcohol, mineral spirits, acetone, and kerosene. 

Canter - Ergonomic comfort, superior performance 

Mitsubishi is renowned for building spirited automobiles for spirited people. Its range 

of commercial vehicles is no different. The extremely rugged and durable Mitsubishi 

Canter is a stylish vehicle that gives a cutting edge to the businesses. It is a robust and 

functional product that is very well designed for the purpose of moving large loads 

quickly and efficiently. 

A clever transmission handbrake system is provided in the larger models to create 

a stable platform for loading, while every Canter gets a switchable exhaust brake to 

help the driver retain control during steep descents more easily. Canter is a forwardcontrol 

vehicle; hence the cab is positioned above the front axle and the engine, 

which contributes to superb manoeuvrability. Moreover, its spacious and roomy cab 

provides ample space for three people at the front. In UAE, Canter is available as Wide 

Cab LWB Cargo Body; Canter Wide Double Cab; Canter Single/Double Cab 4WD; 

Canter Dump Truck. 

Crown lifts up operator comfort 

Maximising productivity in stockpicking comes down to a simple concept: confidence. 

When operators are continually working from what amounts to be the ledge of a 

three-storey building, they must be confident in their lift trucks in order to reach 

optimum levels of productivity. 

With the introduction of the SP 3400 Series, Crown has set a new standard for 

stockpickers while enhancing the company’s reputation for earning the trust of lift 

truck operators. "The SP 3400 Series delivers in every area that matters most to 

operators," said Rod Squires, Marketing Product Manager for Crown Stockpickers. "The 

frame and mast are designed for an extra measure of stability at height. In addition, 

the lift trucks feature superior visibility, added comfort, smoother operation, and 

enhanced reliability. It all adds up to greater confidence which means greater 

stockpicking productivity." 


Product Watch 31 

Maximum flexibility in automated handling tasks 

Automated palletising/ depalletising, commissioning and sorting of 

widely varying goods with differing dimensions – all this with just one 

gripping system: the Schmalz FXC/FMC. How is that possible? Quiet simple: 

the new compact large-area vacuum grippers FXC/FMC are built from only 

a few standardised modules: basic body, ejector, valve module and sealing 

mat. These modules permit the construction of individual large-area 

vacuum grippers which, due to the fact that all important functional 

elements are integrated, are very compact. The large-area vacuum 

grippers can be adjusted to any desired length and can also be combined 

easily to form large-area vacuum gripper blocks ("layer grippers"). 

Because of the integration of the ejectors into the aluminium body 

there are no more annoying projecting edges, which benefits dynamic 

processes. As a result of the new invented "combi-valve" SVK-W nearly 

every workpeace can be handled – even the cycle times can be reduced. 

Last but not least the durable sealing maps with self purification effect 

improve both safety and equipment availability. 


32 Transportation 

Boeing sees $2.6 trillion market for new aircraft 

Boeing forecasts a $2.6 trillion market 

for new commercial airplanes over the 

next 20 years. 

These new airplanes will 

accommodate an estimated 4.9 per 

cent annual increase in passenger 

traffic and a 6.1 per cent annual 

increase in air cargo traffic, Boeing’s 

Current Market Outlook 2006 

reported. 

Boeing projects a need for 

approximately 27,200 new commercial 

airplanes (passenger and freighter), 

doubling the world fleet by 2025. The 

vast majority of these new airplanes 

will be in the single-aisle and twinaisle 

categories. 

“We’re forecasting a continued 

strong long-term demand for new 

airplanes over the next 20 years," said 

Boeing Commercial Airplanes Vice 

President of Marketing Randy Baseler. 

“These airplanes will take people and 

products where they need to travel, as 

never before. Improved fuel efficiency 

and increased range will allow airlines 

to take more travellers directly where 

they want to go, when they want to 

go. New, much quieter airplanes with 

significantly reduced emissions will 

permanently change the character of 

the world airplane fleet.” 

On a delivery-dollar basis, the 

largest market is projected to be the 

Asia-Pacific region, with 36 per cent of 

the $2.6 trillion total – a result of the 

demand among Asian carriers in that 

market for more twin-aisle airplanes. 

North America will make up 28 per 

cent of the delivery dollars and Europe 

will make up 24 per cent. Deliveries to 

airlines in Latin America, the Middle 

East, and Africa will represent a total 

of 12 per cent of the delivery between 

2006 and 2025. 

Combined with the retained fleet, 

these new deliveries will result in a 

world commercial airplanes fleet of 

nearly 36,000 by 2025. 

DP World – UAE handles a record moves in a single 

vessel operation 

A record breaking 8,571 moves in a 

single vessel operation have been 

successfully completed by DP World – 

UAE, the region’s leading port and 

terminal operator at their Mega- 

Terminal in Jebel Ali. 

The moves carried out on MSC Rania, 

the latest 8,400 TEU vessel were 

implemented through the tandem lift 

cranes which are capable of lifting 

either two 40 foot containers or four 20 

foot containers simultaneously. 

This represents the maximum 

number of moves per vessel, breaking 

the record of 6,804 moves recorded in 

January 2005. The moves were 

completed in 41 hours at a high 

productivity level. 

Mohammed Al-Muallem, Senior Vice- 

President and Managing Director of DP 

World – UAE, said, “The throughput of 

Jebel Ali and Port Rashid for the month 

of June stood at 715,300 TEUs as 

compared to 618,920 TEUs for the 

same period last year. This growth and 

the record breaking number of moves 

are a commendable achievement 

which I attribute to the efficiency of 

my team.” 


Transportation 

33 

A380 - record number of emergency 

slides deployed 

Gulf Air ‘Cargo-on- 

Wheels’ extends service 

Airbus A380 – the world’s largest 

passenger aircraft – has set a record of 

deploying 16 emergency slides at the 

same time using only the aircraft’s 

battery power. This is the largest 

number of evacuation slides ever 

inflated simultaneously in any 

passenger aircraft. 

The tests form part of an overall 

European Aviation Safety Agency 

(EASA) and Federal Aviation 

Administration (FAA) certification 

programme. The test is another marker 

paving the way for certification by the 

end of 2006. 

In the test, the aircraft must provide 

routes of escape to occupants from all 

doorways in the event of an emergency. 

The deployment of the emergency 

slides must only be powered by the 

aircraft’s internal battery reserves. 

Typically the A380 will have around 

555 seats in three classes although 

many airliners will have fewer than 

500. The A380 will allow passengers 

even in economy class to enjoy more 

room than in any other aircraft. 

Gulf Air Cargo - a dedicated division of 

Gulf Air - has started new road feeder 

services (RFS) from Muscat to 

Dubai/Abu Dhabi and, from Bahrain to 

Dammam. 

The RFS from Muscat is available for 

all consignments, including charge 

collect (CC) cargo and, all general 

cargo is accepted except perishables, 

HUM, valuables, dangerous goods and 

live animals. From Bahrain, the 

service is available for pre-paid 

cargo only. 

Largest ship at Khorfakkan 

Etihad Crystal Cargo 

introduces SMS tracking 

The recently completed 400 metres 

quay at Khorfakkan saw the arrival of 

the largest container vessel to ever 

visit the port. The new 9,415 teu "CMA- 

CGM FIDELIO" moved smoothly 

alongside on the 16th July 2006 and 

work commenced immediately on the 

7,800 plus container exchange 

discharging and loading cargo for the 

UAE, the Upper Gulf and Indian Ocean 

ports. The FAL service vessel with an 

overall length of 349 metres and a GRT 

of 109,000 tonnes has a service speed 

of 25 knots. 

The container terminal at Khorfakkan 

managed and operated by Gulftainer 

Company Limited welcomed the giant 

vessel with tugs spraying fountains of 

water through their fire fighting 

equipment. 

Etihad Crystal Cargo is introducing 

SMS tracking for UAE-based 

customers, giving them the 

opportunity to track their shipments 

via mobile telephone. 

By sending a text message with the 

“Airway Bill Number(s)” to the 

number “3922746” or typing 

“EYCARGO” on the keypad, the 

customer gets real-time information 

about the status of their consignments 

directly onto the display of their 

mobile phone. 


Human Resources 35 

Workplace 

In harmony with diversity 

In Dubai, the growth and diversity of nationalities living 

and working in the country have reached to around 130, 

bearing unique cultures, values and norms, and 

outnumbering UAE nationals which comprise of about 20 per 

cent of the population. As workers the world over come to 

Dubai, workplaces have also become more complex. 

Managing cultural differences to make business work is not 

an easy task. Human Resource Manager Rachael Green shares 

how intercultural competence has benefited Dubai Duty Free 

(DDF) in all aspects of success in the industry - from gaining 

competitive advantage in customer service to high morale 

work environment, workplace communication, productivity 

and efficiency and eventually, driving sales up. 

So what did DDF do to develop intercultural competence 

within the workplace? 

Understanding one’s cultural norms and how it differs 

from others is the first crucial step toward ‘disabling’ the 

cultural ‘auto pilot’. It requires familiarisation with cultural 

characteristics, values, beliefs and behaviours and involves 

recognising how and when workplace behaviour is affected 

by culture and developing skills for managing it. 

DDF centered on a more focused approach in local 

recruitment within Dubai, sourced from about 13,000 

speculative curriculum vitae received each year. This also 

entailed researching and identifying several overseas 

locations. Due to economics, certain countries could not be 

used for the recruitment of frontline staff. Then it conducted 

orientation days at the overseas sites in order to try and 

prepare the candidates as much as possible with regard to 

the country norms and culture, the company and its culture 

and more importantly, the unique environment where staff 

live and work together in close proximity – 24 hours 7 days a 

week! 

As much as diversity offered great opportunities and value 

to an organisation, it also brought challenges and complexity 

arising from each national group’s different cultural norms 

and values. This affects everyday behaviour such as 

leadership style, work ethic, communication and customer 

service expectations. In this regard, DDF developed a training 

programme called ‘Harmony in Cultural Diversity’. Initially 

running with 70 workshops, currently all new team members 

go though the programme in addition to the company 

induction, familiarisation tours, selling skills and internal and 

external customer service programmes. 

The key objectives of ‘Harmony in Cultural Diversity’ were 

to increase knowledge and awareness, create an 

environment that respects differences, and encourage 

tolerance and understanding. This way, it helps interactions 

between each other and with customers, which makes staffs 

adaptable and able to adjust into situations and react 

accordingly. It also prepares existing workforce for the 

growth in diversity and the changes that it brings, as well as 

for new staffs. Managers and supervisors also benefit on a 

personal level but also as a leader in such a culturally diverse 

workforce. 

The programme realises how people ‘hear’ instructions in 

different ways. And with regard to job satisfaction and 

motivation, priorities, loyalties and expectations vary among 

cultures. The workshop helped to learn about one’s self, and 

what others think especially on stereotypes. It helped the 

team and the managers understand the culture shock 

everyone experienced as new expatriates. 

DDF has doubled the number of nationalities and more 

than doubled the staff strength in the last 5 years from 15 

nationalities of 673 staff in 2000 to 30 nationalities of 1550 

staff in 2005. This increase in diversity gave the company the 

ability to start to identify ‘best fit’ with staff to customer 

and product profile. 

DDF believes that focus on building cultural diversity and 

awareness has contributed to the success in terms of staff 

retention. After 22 years, 62 out of the original 100 staff are 

still working with DDF and 22 percent have remained over 10 

years service. Customer penetration stands currently at 43 

percent and there has been a 30 percent increase in positive 

customer comments over the last year. 

But for DDF, it is the intangibles that one feels on a daily 

basis: The energy on the shopfloor. Walking around the 

company and seeing the different physical appearances -- 

colours, heights, hearing the different languages, the 

different humour, the different outlooks and conversations in 

the staff tearoom and smelling different food; from social 

activities and parties where one can see and hear songs and 

dances from different parts of the world to company sports 

teams that range from table tennis to volleyball, cricket to 

football and EVERYTHING IN BETWEEN. 


36 Gateways 

(R-L) HH Sheikh Mohammed presenting the Dubai Government Excellence Program Award to DAFZA Director General Dr. Mohammed Al Zarouni 

DAFZA – a benchmark for free zones 

What others take decades to achieve, 

Dubai Airport Free Zone Authority 

(DAFZA) has accomplished more than 

that within first decade of its inception. 

The free zone has grown from strength 

to strength every year. With just 10 

employees and less than 55 companies 

in 1998, today DAFZA stands proud with 

more than 100 staff members serving 

825 major companies. After ten years, 

the Dubai Airport Free Zone has 

uniquely positioned itself to become 

the most favourable home for a large 

number of major multinational players 

active in various sectors. 

According to DAFZA Director-General 

Dr. Mohammed Al Zarouni, the free 

zone’s success is no doubt attributed to 

the support of the Dubai government, 

the confidence and trust that our 

clients rest on us and the excellent job 

performed by the employees on 

implementing the strategic goal of the 

free zone authority. 

“We’re fully focused to continue 

reasonable and sustainable growth, 

improve the quality of services to the 

maximum to satisfy our clients, 

employees and all associates. DAFZA 

also keeps an eye on the major global 

companies to help them tap the 

regional market through setting up 

offices in the free zone,” he added. 

The free zone has also strongly 

contributed to the growth of the UAE in 

general and Dubai in particular in the 

first decade of its operations. With 

more than 1,000 companies operating 

within the free zone’s periphery, the 

investments attracted to Dubai is 

immeasurable. “We shall continue to 

play this role as long as we keep 

improving our services to the 

international standards. And I assure 

investors and our clients that Dubai 

Airport Free Zone will become a 

benchmark for the free zones in the 

region,” he added. 

Dubai Airport Free Zone has become 

an ideal platform for multinational 

companies eyeing investment 

opportunities in the UAE and the 

region. The ongoing rapid expansion of 

Dubai International Airport, the most 

modern and fastest growing airport in 

the world serving over 100 airlines 

flying to more than 136 destinations 

worldwide, will benefit the free zone 

great deal by leveraging the zone's 

logistical, cargo and avionic services. 

In addition to having access to a vast 

consumer market of over 1.5 billion, 

the free zone investors enjoy the 

benefits and the facilities provided by 

Dnata FLC and Customs Department in 

the free zone making it the right link in 

the logistics chain. 

DAFZA has always been selective in 

choosing its companies. All companies 

applying to DAFZA must satisfy 

stringent evaluation criteria, including 

analysis of the company's reputation 


Gateways 37 

and financial strength. “Our aim is to 

bring in those companies that would 

add value to the airport as well as the 

business community of Dubai,” Zarouni 

said. 

The free zone offers countless 

incentives to foreign investors. “We do 

offer every thing that makes the job 

easier for our clients, including full 

ownership, 100 per cent repatriation of 

capital and profit, services for the 

company employees including visa 

procedures and introducing the 

business to local and regional markets 

using Dubai as a brand.” 

Zarouni said free zone has been 

growing in line with its vision to be the 

investor's top choice and will continue 

to succeed as the preferred investment 

destination for its excellence, 

commitment and services. The free 

zone's list of prestigious companies has 

consolidated its position as the hub for 

major players from various industry 

sectors. Some of the successful names 

include Boeing, Airbus, Porsche, 

Schuco, Richemont, Audi, Lufthansa 

Tecknik, US Robotics, Dicom and the 

list goes on. 

Focusing on aviation 

Commenting on the free zone’s future 

growth plan, Zarouni said: “We plan to 

put more focus on the aviation sector as 

our experience revealed that this 

sector holds unlimited business 

opportunities. The sector represents 

around 15 per cent of the total business 

in the free zone. Our targets are 

rationale and pragmatic.” 

“We are also in the process of 

improving and working out new 

strategies and initiatives to make 

DAFZA facilities more appropriate to 

clients’ expectations. We look forward 

to sticking to the world’s best standards 

DAFZA provides the 

world’s best 

standards and 

specifications in 

every aspect of 

services. It aims to 

optimise the 

facilities and 

services and do 

everything possible 

to surpass clients’ 

expectations. 

and specifications in every aspect of 

the services we provide. We aim to 

optimise the facilities and services and 

do everything possible to surpass 

clients’ prospects. We firmly believe in 

continuously improving the 

competency, knowledge and skills of 

our employees.” 

Dubai has become a natural choice 

for international companies to launch 

operations in the Middle East region but 

DAFZA is the preferred choice for 

multinational companies to set up 

regional headquarters to cash in on the 

proximity of the Dubai International 

Airport and the fast growing UAE 

economy. 

Last year, the free zone achieved 

staggering growth of over 62 per cent, 

registering 850 companies compared to 

500 in the previous year. This strong 

growth is on the basis of great 

opportunities and a wide range of high 

quality services free zone offers to 

companies based in the zone. DAFZA 

employees have also increased 

dramatically. “In brief we have 

achieved excellent progress in terms of 

improving services and facilities in 

preparation for more companies 

especially in aviation sector which is 

growing very fast. The year 2006 is even 

more significant as we complete 10 

years,” Zarouni said. 

Major expansion 

DAFZA has also embarked on a major 

expansion project in order to 

incorporate more companies waiting to 

set up offices. Currently, expansion 

work is progressing at a fast pace to 

complete the foundations of the new 

Phase 7 & 8 by the end of 2007. This 

expansion will enable the free zone to 

house more than 400 companies upon 

the completion. Companies will be able 

to cater the whole region through their 

offices in the free zone. 

As Dubai’s companies are going 

global, DAFZA has also set sights to 

become a major regional player and 

play a crucial role in managing the 

regional free zones and exchange its 

expertise with them. This is a very 

significant step in the development of 

free zone to diversify its resources. 

DAFZA experienced many challenges 

and tests of the time during the last ten 

years. But Dr. Zarouni believes it’s 

always the intelligent and good 

management, clear objectives, good 

strategies, transparency and strong 

human resources which help an 

organisation to eliminate those hurdles 

no matter how big they are. “We always 

overcame those obstacles and emerged 

a stronger organisation. I believe no 

organisation in the world operates 

smoothly without having certain 

obstacles on its way to growth and 

success,” he summarised. 


38 Legal 

How to ride on 

someone else's reputation... Legally ! 

Mark Hill considers franchising in the 

Middle East, why it is so popular these 

days, what it is and why the “legal stuff” 

is important. 

I don't know if you have noticed but franchising seems to be 

experiencing something of a boom in the Middle East. Now, 

the concept of franchising really is pretty broad and can 

cover fast food businesses, restaurants, hotels, soft drinks 

and clothing. Remember that when you walk into your local 

McDonalds, Pizza Hut, Starbucks, Virgin Megastore, Mango, 

Zara, Massimo Dutti or Giorgio Armani, the company running 

the operation locally is a franchisee. 

territory. The key part of the arrangements here will be that 

the brand owner will control the specifications and quality 

standards to which the goods are manufactured very rigidly. 

What is franchising? 

Well, according to the International Franchise Association, a 

franchise is a “continuing relationship in which a franchisor 

provides a licensed privilege to do business, plus assistance 

in organising, training, merchandising and management in 

return for a consideration from the franchisee”. The main 

categories are: 

• business format franchises where the franchisor will 

provide the franchisee with a licence to sell goods or provide 

services that are identified with the franchisor's trade mark 

and including allowing the franchisee to use a detailed 

business format, operating system, marketing plan, 

accounting system, stock control and training amongst other 

things; 

• product franchising or distribution – this is where a 

distributor sells products and/or provides services on behalf 

of the owner of the well known brand. The distributor 

remains independent and often will receive more limited 

assistance; 

• licence to manufacture – this is where the global brand 

owner will provide a licence for the franchisee to 

manufacture branded products to be sold in a particular 

Advantages and disadvantages 

From the franchisor's point of view, franchising can make 

sense. You can expand more rapidly covering more 

territories, and bringing on franchisees means that you often 

gain access to highly motivated local management teams 

who can drive that territorial 

expansion. And obviously, this can be done without the 

need for the franchisor to invest in capital assets or working 

capital in every territory they want to expand in. The 

downsides I guess are that you are opening up your trade 

mark and other intellectual property rights to possible abuse 

by disingenuous franchisees, and often franchisors 

(especially from the US) still tend to view the Middle East as 

being pretty remote. 

From the franchisee's perspective, perhaps the obvious 

thing is that you are trading on a recognised brand. Often, 

you will get a start up package which will give you assistance 

on site selection, launch publicity, marketing, accounting 

systems, and controlling stocks. The main disadvantage for 

the franchisee is the responsibility to pay not only an upfront 

fee but also ongoing fees, usually as a percentage of the net 

revenues from the business. The other disadvantage is that 

there will usually be considerable restrictions on market 

development (you will only be able to operate within the 

territories you are granted under the licence) and there is 

only so much you can do in terms of developing the brand 

(remember, it isn't actually your brand - you are simply 

renting it). 

Why is the “legal stuff” important? 

This is all about the risks and opportunities we have just 

talked about. From the franchisor's point of view, he is giving 


Legal 39 

Author: 

the ability to someone else to use his 

key assets i.e. his brand and his 

business processes. If proper controls 

are not put in place, the franchisor 

opens himself up to not being able to 

stop possible abuses especially in an 

area such as the Middle East. 

And for the franchisee, the costs 

involved in taking on a franchise, 

especially when we are talking about a 

master franchise agreement (where 

the franchiser will grant the master 

franchisee the right to open units and 

sell but also to sub-franchise to other 

parties so that he then manages 

various sub-franchises in addition to 

running his own units), the costs for 

the franchisee can be substantial. 

Under a master franchise agreement, 

often the franchisee will take on a 

contractual responsibility for a long 

time, often ten to twenty years in 

duration. As well as having to pay quite 

a substantial upfront fee, the 

franchisee will therefore be tied into a 

contract which it cannot get out of for 

a very long time with regular costs 

arising each and every year, in addition 

to the operating costs of running the 

franchise units themselves. 

So, with these kind of risks and 

concerns flying about, what should you 

do? As ever, the answer is pretty 

simple, write it down! There must be a 

contract which should reflect a 

balanced approach where both sides 

know who does what, when, for how 

much and what happens to the 

intellectual property rights. 

Doing your homework 

Remember to check out the local legal 

situation. For example, did you know 

that a franchise arrangement can be 

considered an agency agreement under 

UAE law? This means that there are 

specific legal implications in the 

Middle East which can make it difficult 

for a franshisor to remove an 

appointed franchisee and, under the 

agency law here, they might have to 

pay to get rid of them. 

Stuff to look out for in the contract 

Both sides should make sure that the 

contract gets checked out and make 

sure that it says what you think it 

should say or make sure you re-address 

Mark Hill, 

therightslawyers 

Dubai 

the deal so that it works for you. After 

you sign, it is simply too late. 

• How long does the contract last for 

and when can it be renewed? 

Remember as franchisee you must 

balance your investment against how 

long you can work the licence. 

So if you are going to spend millions 

in the first year but only have a one 

year appointment, you are simply 

asking for trouble. 

What is the territory being given and 

is it an exclusive appointment (i.e. no 

else gets the same thing in the same 

territory)? 

• What restrictions are there on selling 

the franchise on to a third party? 

Sometimes the franchisee simply 

cannot get out of the arrangement. 

• Which country's law governs the 

arrangement and do the parties have 

to go to court or is there a dispute 

resolution mechanism which tries to 

prompt discussion and arbitration? 

• How can the contract be terminated 

i.e. this is the get out for the 

franchisor but also it is an area of great 

risk for the franchisee. 

• And when the contract is terminated, 

what happens then e.g. do stocks get 

returned, are they paid for, is there 

any compensation for goodwill built up 

during the operation of the franchise? 

• What support is being provided for by 

the franchisor? If it isn't in the 

contract, it doesn't exist. 

• Remember to check the trade mark 

and other intellectual property rights 

provisions carefully. This is an area 

where problems constantly arise in 

franchise arrangements. 

• Oh yeah, and don't forget the money! 

Who has to pay what when? 


40 Construction 

Schüco takes quality to new heights 

Nael Afieh, 

Director, Schuco International KG 

It's a very competitive world. And 

everyone wants to be innovative, 

creative and offer quality products. If 

you're scouting for environment-friendly 

and supreme quality products for the 

building envelope then no choice is 

better than the market leader Schüco 

International KG. But its young and 

energetic Director Nael Afieh says quality 

does not come cheap. And rightly so. 

The German major is known for 

pioneering a number of technologies in 

the creation of building envelopes and 

providing state-of-the-art quality 

products. The company offers, apart 

from the comprehensive range of value 

engineered facades and Skylights, 

products including traditional PVC-U 

windows, balustrades, high quality 

aluminium conservatories and solar 

systems. The company also has a range 

of top quality automation 

products which are 

available throughout the 

Middle East and North 

Africa region. 

The German-headquartered Schüco 

began operations in 1951 with 

aluminium shop fronts, windows and 

doors. Through integrated thinking, 

power of innovation and the pursuit of 

perfection a system of building 

components were soon developed. 

When Schüco International KG 

expanded in 1961, its rise to 

multinational company status began. 

And now it has strong presence in 68 

countries. The company retains a 

workforce of 4,500 employees and over 

12,000 partner companies. The 

company has also strong presence in 

the Middle East for the last 25 years 

with regional head office based in the 

Dubai Airport Free Zone (DAFZ). 

Led by a young, dynamic and 

creative Dubai-based Nael Afieh, 

Schüco International business in the 

Middle East has leapfrogged in the 

recent few years, carrying out 

mammoth and iconic projects such as 

the National Bank of Abu Dhabi 

headquarters, Dubai Chamber of 

Commerce and Industry building, 

Jumeirah Beach Hotel, Abu Dhabi 

Conference Palace, Etisalat head office 

and Capital Towers etc. In the region, it 

has wrapped up the construction of 

façade of Kuwait Trade 

Center in Kuwait, 

Al Fardan 

Center in 

Qatar 

and Al 

Qala 

Tower in Makkah and many of the Saudi 

Arabian projects etc. According to Nael 

Afieh, "Schüco has just completed one 

of the toughest jobs in architectural 

and engineering designing in Lebanon. 

We're working on an iconic and twisted 

Marina Tower in Beirut which is a real 

marvel of science and technology. We're 

also looking at other regional markets 

such as India and North Africa where we 

see a strong potential for growth in the 

next five to six years." 

"Schüco registered an impressive 

growth of 300 per cent in the region 

last year and controls over 60 per cent 

market share of the top-niche 

construction market, thanks to the 

company's innovative, creative and 

competitive products. Our products 

such as casement windows, sliding 

patio doors, balconies, canopies, 

balustrades and solar products alike 

gave fillip to the company's strong 

growth in the region. Apart from a 

variety of design options, we offer 

virtually 

maintenance-free 

constructions, economical and without 

the need for major building work – but 

with a maximum cost/benefit ratio and 

maximum living value," he added. 

"Our products quality is so good that 

they are used as high as 3,500-metre 

high Alpine mountains in Switzerland to 

the lowest point on the earth which is 

Dead Sea – where we recently 

accomplished few prestigious hotel 

projects. The quality products provided 

by Schüco can be gauged from the fact 

that we completed a project on the 

Sheikh Zayed Road some 20 years ago 

and we have until now, not received 

any complaint from the company so far. 

Certain projects demand quality 

products and that 

high standard 

w e

Construction 41 

Schüco products quality 

is so good that they are 

used 3,500-metre high 

Alpine mountains in 

Switzerland to the lowest 

point on the earth which 

is Dead Sea. 

provide," said confident Nael Afieh. 

Schüco also owns and operates the 

world's largest and most advanced 

research and technology centre in the 

German city of Bielefeld. Here, it 

undertakes all aspects of testing 

windows, façades and solar products. 

The test procedures are widely 

regarded as the most stringent in the 

industry. Thermal collectors, 

photovoltaic modules and systems 

installations are all subjected to 

extreme testing. 

The company has taken the home 

concept well beyond the conventional 

roof and four-wall residence to highly 

intelligent and smart home. Schüco 

offers a full range of automated 

components that allow windows and 

doors to be monitored and controlled 

remotely while at the same time 

assuring the highest level of security. 

The Schüco e-drive is a “Plug and Play” 

system which when applied to the 

windows permits the opening, closing 

and locking of Schüco turn/tilt, bottom 

hung and parallel opening/side hung 

windows as and when required. E-drive 

simplifies the operation of window 

handles for handicapped users. Using a 

button located directly within the 

handle, the window is very easy to 

control. It is even possible to open and 

close several windows simultaneously 

using a single room control. On the 

upcoming new developments, Schüco is 

currently working on a project under 

which airconditioners 

will run on solar energy. 

The German giant also produces 

solar energy to meet electricity 

requirements. The sun rays are used to 

generate electricity (photovoltaic) or to 

heat water and air (solar thermal 

transfer). Solar energy is the purest 

form of energy; it is the only available 

energy source that can be exploited 

without harming or depleting the 

environment. 

To say that Schüco is ahead of times 

might sound archaic but the facts speak 

for themselves. For example, the 

company has installed powergenerating 

photovoltaic at its 

headquarters in Germany. Through this 

technology it fulfills power needs in its 

headquarter building in Germany and 

sells the surplus power to the country's 

grid stations. 

Nael Afieh said, "Projects like The 

World islands could rely on our 

competitive and energy-efficient solar 

products to meet energy demands 

whilst providing an environmentally 

acceptable solution. We are the market 

leader in this category; our solar energy 

products fulfill a market demand with 

an increase in Europe of 175 per cent 

for the solar products. We are the best 

solution for them." 

Schüco International KG operates 

internationally in conjunction with a 

network of licensed partners who 

manage the projects on behalf of the 

German construction giant. Within the 

Gulf region there are licensees who 

take on medium-scale projects while 

the others undertake the large-scale 

projects worth millions of dollars, and 

we supply them and support them 

through the Dubai office. 

Commenting on the boom in the 

construction market, Nael Afieh said 

the regional real estate industry in 

general and the UAE in particular is 

growing at an exceptionally fast pace... 

"It has also helped us to be part of the 

on-going boom. For example, one of our 

partners is working 

on projects worth 

over two billion 

dirhams in the UAE. The UAE, 

particularly Dubai, is the fastest 

growing market for us, followed by 

Saudi Arabia, Kuwait and Qatar. 

Construction industry is like fashion 

industry. It goes through different 

phases. 20-year ago one would not have 

seen curtain walls, buildings with so 

much glass and aluminium. But now it's 

a fashion. Everyone wants to be 

different and aims to create something 

that stands out." 

Nael Afieh acquiesced that the 

Dubai's strategic location and the Dubai 

Airport Free Zone Authority's (DAFZA) 

investor-friendly policies, state-of-theart 

facilities, advanced logistic 

services, e-administration service and 

online customs procedures facilitated 

his company's growth. It's a thriving 

place to do business. As one of the fast 

growing free zones, DAFZA provides 

creative and innovative solutions, 

world-class infrastructure, value-added 

services and incentives, a dynamic and 

thriving business environment. DAFZA 

services enable foreign firms to grow 

and be creative and support in their 

efforts to manage customer needs 

through technologically advanced 

support system. Most of the companies 

come to DAFZA to set up a base here to 

study and explore the neighbouring 

regional markets," he concluded.

42 

Insurance 

Timeliness of filing a claim 

The rule of prescription is like the 

sword of Damocles hanging over the 

head of every lawyer. In any dispute, 

one of the first things that lawyers must 

do when handling claims or disputes is 

to check whether there is still time to 

pursue the matter otherwise they run 

the risk of the sword falling on their 

head. But finding out whether a claim 

or dispute is time-barred is not 

always easy. 

Prescription is the statutory 

limitation of time beyond which an 

action, debt or crime is no longer valid 

or enforceable, in other words, it is the 

state whereby the cause to file or 

pursue an action is already timebarred. 

As used in this article, the term 

prescription and time limit are used 

interchangeably. 

In all jurisdictions throughout the 

shipping world, the first question to ask 

is what is the national law that has to 

be applied in order to decide issues on 

prescription or time limit. If a claim 

arises under a bill of lading or charter 

party which contains a clause on the 

choice of law, the situation is simple. 

For example, if the clause says that, 

“All disputes arising out of or in 

connection with this contract shall be 

governed by the law of France,” then 

everyone knows where to ask. But if 

the contract is silent, the lawyer needs 

to determine first which court to go in 

case the dispute cannot be settled 

amicably. 

As far as the Hague-Visby Rules are 

concerned, the problem arises on the 

fact that different jurisdictions have 

different rule on prescription. As an 

example, if a charterer lodges a claim 

against a shipowner because the owner 

fails to properly describe the vessel or 

did not deliver the vessel to the 

charterer as provided for in the charter 

party, the general time limit for such a 

claim under Dutch, French or German 

law is one year. However, in England, it 

is six years, and in Spain, the same 

claim will not prescribe for fifteen 

Author: 

Dr. Khalid M. Kadfoor Al Mehairi 

Emirates Advocates 

years. 

Moreover, in some countries, the 

situation is different for a claim made 

by a shipowner against a charterer. A 

claim to pay charter hire, for example, 

will prescribed or be time-barred in 

Spain within six months, within one 

year in France and the Netherlands, 

within three years in Germany, and 

within six years in England. By this 

fact, the statutory time limits between 

countries are far from being uniform. 

Such is the case for time limits of 

conventions connected to transport. 

The Hague-Visby Rules apply in 24 

different countries, including the UK, 

France and Spain, but not in Germany 

or Portugal. Germany did not ratify the 

Rules, however, the provisions in its 

commercial code are fully patterned in 

line with the Rules. In all Hague-Visby 

countries there is a one-year period 

within which a cargo claim has to be 

filed. The same period can be found in 

COGSA (Contract of Carriage of Goods 

by Sea). But this one-year period is 

only applicable to claims under bills of 

lading. All others, such as those in tort, 

are not covered by these conventions 

and have a longer time of prescription. 

Period of prescription can be set not 

only in statutes or conventions but also 

in contracts, mostly charter parties or 

bills of lading. The three-month time 

limit under the Centrocon arbitration 

clause is well known, but here are even 

shorter ones in existence demonstrating 

how different contracts can have 

different requirements which again 

differ from statutory provisions. Under 

Article III Rule 6 of the Hague-Visby 

Rules provides for one year period. But 

even such a widely known and accepted 

convention does not guarantee 

uniformity. There are also many more 

questions to be answered when applying 

the rule on prescription. For instance, 

when does the one year period begin? 

Article III Rule 6 says the period starts to 

run when the cargo is discharged or 

should have been delivered. But what 

does this mean? 

The High Court of England rendered a 

decision in June 2002 in the case of 

Trafigura vs. Golden Stavraetos. Upon 

arrival of the vessel at the original 

contractual destination, the receiver 

refused to accept delivery of the cargo 

because it was damaged. The receiver 

subsequently arranged with the 

shipowners for the cargo to be carried 

to and delivered at another port. It 

could have been argued that with the 

consent of both parties, they are 

able to change the contract at any time 

and that the second port finally became 

the only port where the goods are 

discharged and, therefore, the 

decisive one. 

But the High Court thought 

differently, ruling that prescription 

under Article III Rule 6 of the Hague- 

Visby Rules began to run from the time 

at which the cargo “should have been 

delivered” at the original port of 

discharge and not from the time that 

discharge was completed at the second 

port. The claimant’s suit was, 

therefore, prescribed or time-barred 

and summary judgment was entered in 

favor of the defendant shipowners. 

It is clear that it is not always easy to 

say when the one-year period begins to 

run. But this is just one of a whole host 

of uncertainties where time limits are 

Contd.on page: 44 


Banking & Finance 43 

E-payment benefits all and sundry 

The nature of payments constantly 

evolves for the most basic of reasons – 

because human beings are innovative, 

resourceful and pragmatic. We embrace 

new techniques and technologies that 

offer greater efficiency, convenience, 

and value creation, yet discard those 

that do not. The history of payments – 

the ways in which humans exchange 

value for goods and services – has been 

dynamic, fluid and driven by the 

marketplace. 

Today, that human determination to 

innovate and adapt – the same spirit that 

once drove us to shift from using bushels 

of corn to sacks of gold as a form of 

exchange – is powering the growth of a 

global electronic payments network. 

GLOBAL MARKET 

Electronic payment adoption has been 

growing at a steady pace worldwide. 

The number of electronic payments will 

double by the end of the decade, says 

research. The study of 79 countries, by 

research firm Global Insight, found that 

more than 210 billion electronic 

transactions are processed worldwide 

each year, but will be close to 420 billion 

by 2010. 

The Eastern Europe and Asia-Pacific 

regions are forecast to lead the world in 

electronic payment transaction growth, 

predicted at 21.6 percent and 19.2 

percent respectively, for the period of 

2004 to 2009. Other regions including 

the Middle East, forecast to increase 

15.9 percent, and NAFTA (North 

American Free Trade Alliance), expected 

to grow 12.3 percent, point to 

considerable growth within economies 

that have already established their 

electronic payment infrastructures. 

Conversely, according to the report, 

the use of cheques as a form of payment 

is forecast to continue its decline; as 

measured in 2004, approximately 20 

percent of non-cash transactions were 

cheque-based; in 2009, only 10 percent 

of total payments are predicted to be in 

cheque form. 

ADVANTAGES 

The widespread adoption of electronic 

payments has significantly expanded the 

sales volume of goods and services, 

reduced the barriers to immediate 

credit and liquidity, and eased 

geographic restrictions to trade and 

exchange. The benefits of electronic 

payments to all parties have been 

measurable and substantial. 

Benefits to buyers 

• The convenience of global 

acceptance, a wide range of payment 

options and enhanced financial 

management tools. 

• Enhanced security and reduced 

liability for stolen or misused cards. 

• Consumer protection through an 

established system of dispute resolution. 

• Convenient and immediate access 

to funds on deposit via debit cards. 

• Accessibility to immediate credit. 

Intuitively, the comparative cost of 

arranging for a consumer loan relative to the 

ability to obtain credit at the point of sale is 

substantial in considering both the direct 

processing costs as well as the implicit 

opportunity costs to borrower and lender. 


44 Banking & Finance 

Benefits to sellers 

• Speed and security of the 

transaction processing chain, from 

verification and authorisation to clearing 

and settlement. 

• Freedom from more costly labour, 

materials, and accounting services that 

are required in paper-based processing. 

• Better management of cash flow, 

inventory, and financial planning due to 

swift bank payment. 

• Incremental purchasing power on 

the part of the consumer. 

• Cost and risk savings by eliminating 

the need to run an in-house credit 

facility. 

A dramatic example of the 

efficiencies created by electronic 

payments can be seen in the public 

sector, where governments have used 

innovations such as purchasing cards to 

reduce paperwork, enhance financial 

controls and create more robust 

accounting and financial data. 

Convenience 

Anyone who has searched through 

pockets for exact change for parking, 

fumbled with foreign currency, paid 

exorbitant foreign exchange 

commissions, tried to cash a cheque in 

another country, or been concerned 

about carrying a large roll of banknotes 

can appreciate the convenience of 

payment cards. 

Fundamental to this convenience is 

virtually ubiquitous acceptance and 

utility – whether it’s an apparel store in 

Paris or a crafts shop in Nepal. Payment 

cards work in brick-and-mortar 

environments, over the phone, on the 

Internet and through the post. 

Applications are underway that support 

new uses such as recurring payments, 

insurance and payroll disbursements, 

rent and utility bills, and small-ticket 

transactions such as vending machines 

and car parks. 

Consumers place an enormous value 

on convenience – the sheer convenience 

of being able to access cash at an ATM or 

conduct a transaction directly at the 

point of sale with a credit or debit card 

clearly has had an impact on economic 

growth. 

Security 

A lost or stolen card is replaceable – 

lost or stolen cash isn’t. The guarantee 

that associations provide against misuse 

or theft of cards is something that 

consumers value. The electronic 

payment system provides additional 

insurance by facilitating dispute 

resolution in the case of unsatisfactory 

receipt of goods and services. This takes 

on increasing importance with the 

expansion of e-commerce. 

Sellers also gain from the security of 

electronic payments. A secure 

electronic system reduces risks of theft 

and loss to payments and receipts, and 

curbs the potential for pilferage and 

misplaced funds throughout the cash 

chain. 

Contd.from page: 42 

concerned. For instance, is time limit a 

question of procedural law (as in 

England) or of material law (as in 

Germany)? How are contractual time 

limits to be incorporated into a contract 

in order to make them binding? Is it 

possible to interrupt the running of time 

(prescription) and, if so, how? Can the 

period of prescription be extended? Is it 

automatically extended by negotiation? 

Is it the duty of the court to dismiss a 

prescribed (time-barred) claim even if 

the defendant did not invoke the 

argument of prescription? The list goes on. 

In the light of the foregoing, the first 

conclusion to be drawn is that 

prescription is not uniform at all, 

varying even from country to country. 

Things would be far less complicated if 

there was only one time limit, such as 

one year, which may be applied in all 

jurisdictions throughout the shipping 

world. But, while unifying the period 

of prescription would answer the first 

question of how long the time limit is, 

it would not address the many other 

and in some cases more difficult 

questions as mentioned above. There 

is also the danger that harmonising the 

period of prescription in the shipping 

industry would lead to disharmony in 

national legislation, so in fact, very 

little would be gained by creating one 

uniform time limit. Instead, it is 

believed, that there needs to be 

harmonization of different legal 

systems which would entail hard work. 


Case Study 45 

Virgin Atlantic Airways 

uses Symbol RFID solution 

to track assets 

Symbol Technologies, Inc., the 

Enterprise Mobility Company, was 

chosen by Virgin Atlantic Airways to 

supply RFID technology, as part of a 

pilot project, to track critical, high 

value aviation assets moving through 

its logistics supply chain at Heathrow 

International Airport. 

Virgin Atlantic is the first airline in 

the United Kingdom to use RFID 

technology to track parts onsite. 

Virgin Atlantic deployed Symbol's 

MC9000-G RFID handheld mobile 

computers with RFID readers and a 

Symbol wireless LAN (WLAN) 

infrastructure, including a WS2000 

wireless switch and AP300 access 

ports. The aim of the pilot is to track 

and trace high value repairable aircraft 

parts often at short notice. The 

installation is based at Virgin Atlantic's 

logistics facilities at Heathrow Airport 

with additional facilities at Gatwick 

Airport. Heathrow is the central 

distribution hub for the Virgin Atlantic 

logistics network. 

"In such a competitive market, there 

is a constant need to find efficiencies, 

control costs and expand business. 

Virgin Atlantic is keen to investigate 

the efficiency of the RFID-enabled 

warehouse," said Graham Holford, 

Senior Systems Analyst, Virgin Atlantic. 

"Symbol's RFID technology was seen as 

a way to improve efficiency by tracking 

and tracing items instantly and in realtime." 

Three AP300 access ports with 

external antennas 

support onsite 

data exchange at 

each location and 

the MC9000-G 

mobile computer 

enables precise 

real-time 

scanning and data 

entry, providing 

Virgin Atlantic's 

staff with inventory control and instant 

visibility into their supply chain. The 

MC9000-G mobile computer is a highperformance 

RFID mobile reader, and 

supports Microsoft® Windows Mobile 

operating system, for both RFID and 

bar code applications. This dual-mode 

operation was considered an “essential 

capability” by Virgin Atlantic, when 

selecting the technology for their 

investment. 

The project, called TRIM (Tracked by 

Radio Identification Method), utilises 

RFID tagging and was deployed at 

Virgin Atlantic with the specific aim of 

tracking serialised aircraft parts and 

tools at their main supply facilities and 

throughout their supply chain. Airplane 

parts are given a full inspection upon 

entry to the warehouse and logged into 

the inventory system computer, before 

being associated with an RFID tag. 

"Virgin Atlantic is doing precisely 

what we advise our most progressive 

clients to do - evaluate the application 

of this emerging technology in their 

own environment, and measure the 

effectiveness of the RFID solution 

based on the return on investment 

(ROI) and a clear business case," said 

Tarek Hassaniyeh, sales manager, 

Symbol Technologies Middle East. 

Symbol's RFID technology has 

demonstrated high-performance 

capabilities such as data capture and 

data accuracy, while also improving the 

accuracy and frequency of inventory 

management through stores and 

warehouses. Symbol RFID solutions 

have also increased the visibility of 

parts and materials within 

maintenance environments and offered 

more accurate inventory control at the 

point of entry to the aircraft stores. As 

a result, Virgin Atlantic has greater 

ability to comply with anticipated 

guidelines from EASA (European 

Aviation Safety Agency) concerning 

traceability and the authenticity of 

aircraft components. Virgin Atlantic 

will also be able to integrate with the 

RFID specifications proposed by Boeing 

and Airbus for use within the aircraft 

supply chain. 


Information Technology 47 

How RFID can help optimise supply 

chain management 

Ayman Abou Seif 

Managing Director for Gulf States 

Oracle Corp. 

Author: 

Squeezing cost and inefficiency out 

of the supply chain has been one of 

the recurring mantras of the 

industrialised world for the past 50 

years. 

The concept, as we would recognise 

it, has its roots in the Toyota 

Production System (TPS) of the 1950s 

and has been refined and improved 

significantly over the years to the 

point where one might expect that the 

most sophisticated devotees today 

have optimised their supply chains. 

The journey towards perfection, 

however, never ends. In the very near 

future, the adoption of sensor-based 

Radio Frequency Identification (RFID) 

technology will allow the creation of 

the real-time, sensor-connected 

manufacturing plant. By adding RFID 

tags to every product, tool, resource 

and item of materials handling 

equipment, manufacturers will be 

able to get better demand signals 

from customers and the market. 

At its core, RFID is simply an 

enabling technology that has the 

potential of helping retailers provide 

the right product at the right place at 

the right time, thus maximising sales 

and profits. RFID provides the 

technology to identify uniquely each 

container, pallet, case and item being 

manufactured, shipped and sold, thus 

providing the building blocks for 

increased visibility throughout the 

supply chain. 

The technology will bring benefits 

to a wide range of industries, as we 

shall see, but one of the main drivers 

of RFID adoption has been the retail 

sector, led by Wal-Mart in the US. 

Phillip J. Windley, an Associate 

Professor of Computer Science at 

Brigham Young University, estimates 

that US retail giant Wal-Mart alone 

could save $8.35 billion annually with 

RFID - that's more than the total 

revenue of half the companies in the 

Fortune 500. 

His massive total is made up as 

follows: $600 million through avoiding 

stock-outs; $575 million by avoiding 

theft, error and vendor fraud; $300 

million through better tracking of a 

billion pallets and cases; $180 million 

through reduced inventory; 

and a huge $6.7 billion by 

eliminating the need to 

have people scan 

barcodes in the supply 

chain and in-store. Small 

wonder, then, that Wal- 

Mart is investing $3 billion 

in RFID ove r several years 

and is one of the leading 

proponents of RFID 

implementation. 

RFID is a system of small 

electronic tags (comprising a 

tiny chip plus an antenna) that 

transmit data via a radio signal to 

RFID readers and related hardware 

and software infrastructure. The 

transmitters can be placed anywhere 

that tracking the movement of goods 

adds value to the commercial process: 

on containers, pallets, materials 

handling equipment, cases or even on 

individual products. 

The information on tags is read 

when they pass by an RFID reader, and 

that movement is captured and 

managed by the infrastructure. In this 

way, organisations are able to link the 

physical world to the digital world 

without any human interaction. 

Whatever actions are then triggered 

depends on the individual application, 

from basic stock replenishment at one 

end of the spectrum to facilitating the 

ultimate lean supply chain at the 

other. 

RFID promises to revolutionise 

supply chains and usher in a new era 

of cost savings, efficiency and 

business intelligence. The potential 

applications are vast as it is relevant 

to any organisation 

engaged in the 


48 

Information Technology 

production, movement or sale of 

physical goods. This includes retailers, 

distributors, logistics service 

providers, manufacturers and their 

entire supplier base, hospitals and 

pharmaceuticals companies, and the 

entire food chain. 

It has the potential to improve 

efficiency and visibility, cut costs, 

deliver better asset utilisation, 

produce higher quality goods, reduce 

shrinkage and counterfeiting, and 

increase sales by reducing out-ofstocks. 

It can even help improve the 

safety of the food and 

pharmaceuticals we buy. 

The key to delivering all these 

benefits is cost. The falling price of 

RFID tags is a driver for the 

technology. One Canadian consumer 

products manufacturer has 

established that RFID becomes 

revenue-neutral at 15 cents per tag, 

at which point the prospect of RFID as 

a replacement for barcode labels 

becomes very real indeed. 

Tag pricing is critical. Industry is 

hoping that tag manufacturers can hit 

5 cents per unit, and that is being 

regarded as a breakthrough level. Yet 

even that is still too expensive for, say, 

an individual can of Coke, which is 

why packaging companies and other 

researchers are looking at innovative 

ways to apply this technology. In the 

coming years, at least, we are likely 

to see RFID tags and barcodes existing 

side by side. 

The path to RFID nirvana is not 

without its obstacles: tag costs are 

still high; readers can't always read all 

the cases on a pallet; one frequency 

and one tag design does not fit all; 

standards are in a state of flux; endusers 

lack real RFID knowledge; and 

radio interference can upset the bestlaid 

plans. Wal-Mart laid down its 

marker as an RFID pioneer by issuing 

mandates to its suppliers throughout 

the entire supply chain. Wal-Mart, 

Metro Group, Tesco, Target and the US 

Department of Defense all told their 

top suppliers to incorporate RFID tags 

in all pallet shipments by 2005. Wal- 

Mart then relented a little, having 

found that not only would its suppliers 

find the deadline hard to meet, but so 

would Wal-Mart itself. Wal-Mart is now 

on track to have RFID in 600 stores and 

Squeezing cost and 

inefficiency out of the 

supply chain has been 

one of the recurring 

mantras of the 

industrialised world 

for the past 50 years. 

12 distribution centres by the end of 

this year. 

But early adopters of the technology 

are by no means confined to the retail 

sector. Among the Oracle customers 

undertaking trials or actively 

implementing RFID today are DHL in 

the Americas and Europe, NASA in the 

USA, YCH in Singapore, Dolomiti 

Superski in Italy, McCarran Airport in 

Las Vegas and NHK in Japan. 

Whether it enters the mainstream 

this year or next or even in 2010, the 

business value of RFID is undeniable. It 

will create winners all round. 

Manufacturers will benefit from 

increased inventory visibility, more 

efficient use of labour, better line 

operations and improved fulfilment. 

Retailers can benefit from reduced 

inventory, because the improved 

supply chain visibility allows better 

demand forecasting, lower safety 

stocks and lower order cycle times. 

Automated data capture will also cut 

costs by reducing labour in the store 

and warehouse, and fewer sales will 

be lost through out-of-stocks. 

And it's not just the retail sector 

that will benefit. Manufacturing 

industry as a whole will be able to 

fine-tune the supply chain to optimise 

efficiency and minimise inventory and 

waste. RFID tags in car sub-assemblies 

will make safety checks and recalls 

faster and easier. Tags in sub-sea 

structures like oil and gas pipelines 

will make maintenance and repair 

simpler. Hospitals will be able to 

maximise their return on assets by 

tracking the whereabouts of expensive 

and life-saving equipment at all times. 

The pharmaceutical industry will be 

able to reduce or even eliminate 

counterfeiting by giving each unit of 

dosage a unique Electronic Product 

Code (EPC) number. This will allow 

data to be recorded and be accessible 

to all supply chain partners on a drug's 

current location, all historical 

locations, the time spent at each 

location and environmental storage 

conditions throughout its life. 

The technology will benefit lots of 

other industries, too. Customer 

returns will be facilitated for the 

consumer electronics sector; 

aerospace will have safer handling of 

hazardous materials; port security will 


Information Technology 49 

be improved; the logistics and 

transportation industry will have 

better management of truck yards, 

container yards, shipping yards and 

cross-docking activity; consumer 

packaged goods will have easier 

receiving reconciliation, better lot 

tracking, faster and less expensive 

product recall and all the benefits 

associated with improved visibility 

throughout the supply chain. 

RFID is best viewed as part of a 

broader spectrum of sensor-based 

technologies. This includes the nowfamiliar 

technologies of barcode and 

magnetic stripe, as well as integration 

with equipment such as scales and 

dimensioning devices and sensors for 

such things as temperature, position 

and moisture. Hybrid sensors that 

combine RFID tags with temperature 

sensors, all embedded in a barcode 

label, are already available. 

Multiple point solutions aimed at 

each sensor-based niche simply will 

not scale and will not provide the best 

return on investment. As a result, any 

RFID capability must be part of a 

comprehensive technology and 

applications infrastructure that can 

collect events from these disparate 

sources, combine the data into 

composite transactions and then 

automatically trigger the appropriate 

business process. 

There is no doubt that RFID and 

other sensor-based technologies 

present massive potential for creating 

competitive advantage. Companies in 

these and other industries will find 

that incorporating these technologies 

into their information infrastructure 

and integrating them into their 

business processes will provide 

substantial business benefit. But, to 

realise maximum return on 

investment, they need to leverage 

their information architecture 

strategically. 

If RFID is to create value for 

business, first it will create data - 

masses of data. Users will need to 

ensure they have an IT architecture 

that can appropriately manage, 

analyse and respond to this new 

wealth of data being captured to truly 

gain visibility into their supply chain. 

But visibility without the action 

does not create value. Translating 

visibility to action requires tight 

integration between transaction, 

execution, planning and event 

management - with the ability to 

identify actionable events quickly and 

to translate these into adjustments to 

the operational plan. Weekly planning 

runs must be replaced by net-change 

iterative planning, Data Warehousebased 

reporting replaced by real-time 

operational analytics and exception 

event management, and fixed 

business processes by adaptive 

business flows. 

Two things are crystal clear: RFID is 

here to stay, and enterprises can 

The path to RFID 

nirvana is not without its 

obstacles: tag costs are 

still high; readers can't 

always read all the cases 

on a pallet; one 

frequency and one tag 

design does not fit all; 

standards are in a state 

of flux and end-users 

lack real RFID 

knowledge. 

achieve significant business value 

from embracing it. Due to the high 

cost of investing in RFID, each 

company needs to evaluate its own 

business processes to determine 

where and if RFID can be applied to 

improve operational and process 

efficiencies to positively affect the 

bottom line. 

If that evaluation suggests that the 

technology can benefit the business, 

the next step is to develop a roadmap 

for RFID implementation. For 

suppliers that need to meet 

customer-mandated deadlines, a good 

place to start is EPC Compliance 

Enabler. This is easy to install quickly, 

will work with your legacy system, 

print RFID labels and verify outbound 

shipments. 

The next stage would be to move to 

an RFID Pilot Kit, which allows you to 

capture and analyse data out of the 

box, test new devices and filters and 

perform custom, advanced data 

analysis. It will also leave you ready 

for integration with existing 

enterprise systems and deployment. 

From there you can move to 

developing RFID-enabled applications 

and integrating RFID data into 

existing applications. 

The early adopters are already well 

down the road towards RFID. At the 

very least, now is a great time for all 

businesses to start developing their 

own RFID strategy. 


50 

Academia 

John Mee, M.D. 

Supply Chain Centre of Excellence 

A Blended Learning Approach 

In the fast-paced era of globalisation, skills and 

qualifications of supply chain professionals are continuously 

challenged as more new factors within the chain take lead 

roles. Managing Director John Mee of the Irish based Supply 

Chain Centre of Excellence tells The LINK how ‘blended’ 

learning, a different learning method that can help 

professionals better manage supply chain changes. 

John Mee, M.D. 

Supply Chain Centre of Excellence 

Can you briefly assess SCM in Dubai? 

What aspect needs more focus here? 

The focus as always needs to be on 

some of the less visible, but 

nonetheless important aspects of SCM. 

I would suggest that the role of IT and 

the approach to forecasting and 

inventory management are salient 

here. The reasons I would offer are as 

follows: The location of Dubai as a 

gateway between East/West 

necessitates connectivity between 

these two geographical extremes, and 

this is the role of IT in SCM – to 

connect. 

Inventory has the prospect of being 

stock-piled in the gateway centre of 

Dubai as a result of attempting to 

match supply and demand along the 

East/West corridor. This could create 

an unnecessary strain on the working 

capital requirements of companies. 

Pre-emptive work here i.e. forecasting, 

would at least reduce the reliance 

upon chance in aligning demand and 

supply along the East/West, West/East 

corridor. 

What exactly is ‘blended’ learning? 

Employing a ‘blended’ learning is an 

academic format which allows the 

individual to learn and access materials 

at a time which is convenient to 

professionals, irrespective of their 

current location. The ‘blend’ is 

achieved by being assigned a personal 

coach whose responsibility is to be in 

regular contact with students as they 

are mentored as well as their progress 

at all times. Essentially blended 

learning is an amalgamation of 

synchronous (real time and personal) 

and asynchronous (elapsed time and 

impersonal) communication via the 

learning medium. 

How does this work? 

The learning medium is actually built 

around a virtual company packed in 

CDs. The actual learning offer is 

designed to deliver the learning in 

small, manageable units, with easy 

access to support from specialist tutors. 

Learners can apply the principles 

learned instantly in their day to day 

work. 

All throughout the learning process, 

students are appointed to a position 

within a fictitious company to perform 

the tasks required of that position to 

demonstrate the necessary 

competence for the qualification. 

How is the assessment process 

applied? 

Based on submission of tasks and 

written responses to these tasks, 

students will have amassed a complete 

portfolio of evidence of their 

competencies for final assessment. 

This will lead to the award of the 

appropriate qualification. The process 

achieves two things as it establishes 

the knowledge of the individual, and 

the ability to apply that knowledge in a 

practical manner. 

Are certificates and diplomas enough? 

In Dubai the learning needs to be 

formalised and ideally, recognised 

globally. I would suggest that 

ultimately there will be a requirement 

for higher levels of qualification 

programmes perhaps at Master level. 

Programmes that are positioned at 

Certificate and Diploma levels are vital 

“gateway programmes” to establish a 

reasonable level of acumen in the 

discipline but perhaps are missing the 

necessary depth and breadth to 

develop “the managers of tomorrow” 

at senior organizational levels that will 

be responsible for strategic planning. 

I believe that a full time senior 

executive programme at a Master level 

has tremendous merit in Dubai. It 

would allow Dubai a greater degree of 

self-reliance than at present, and 

actually support the desire for inward 

foreign investment by having an 

educated indigenous workforce readily 

available for foreign companies 

locating to the region. Ultimately 

Dubai will need to become selfsufficient 

in terms of senior managerial 

positions to maintain a cost base that 

compares favorably with evolving low 

cost countries such as China. This can 

be achieved by upskilling the 

indigenous labour pool and negating a 

reliance on the more costly Western 

expertise option. Such a move will 

protect the direct supply chain costs 

that Dubai itself can influence along 

the supply continuum. 


Academia 

51 

Many practitioners have acquired skills based on 

experience. What are the advantages of having 

academic credentials? 

Academic training either reinforces the operational 

experience or alternatively, offers a different, 

perhaps more credible, alternative perspective to be 

applied. That is why, nowadays, most leading 

organisations are seeking the blend of both 

operational practicality and academic rigour. 

Operational skill sets are really the “how to” of any 

level of business planning, with academic rigour the 

“why” element of such planning. 

Supply chain is more apparently global now. But in 

the learning process, does geographic location or 

specific industry issues take any importance within 

the study process? Not really. The subject of SCM at 

an accredited level can only be successful if applied 

in a generic format i.e. without influence to location 

or industry. This is not to say that practices and 

externalities do not shape our application of learning 

– but they should be factors that are bought into the 

equation once the fundamentals have been 

understood. If the differences were so great across 

region and industry, we would have specific SCM 

region/industry programmes in a subject that by 

definition is indeed global. Local nuances and 

industry characteristics aside, the core elements of 

any facet of supply chain management learning are 

eminently transferable. 

What changes should supply chain and logistics 

specialists prepare themselves in the next 

five years? 

I believe there are five changes that will stand out. 

First, SCM will become more virtual as the 

prevalence of outsourcing non core activities 

continues and non value adding assets and functions 

are divested. Second, supply chains will continue to 

expand globally across regions and timeframes 

making efficient management of the entire structure 

that more complex. 

Third, there will be a shift from a requirement for 

functional experts to a requirement for relationship 

experts and fourth, IT advances will continue on 

their exponentially evolving path, providing the 

enabling capabilities to optimize the extraction to 

consumption breadth of supply chain management 

activities. 

Lastly, the criteria for selecting locations in which 

to site operations will move from solely focusing on 

short term operational costs to one of longer term 

operational value as practitioners become more 

conversant with the traded-off process of the 

necessity to acquire optimal supply chain 

performance, and not just focus on acquiring 

functional excellence and sub-optimal overall supply 

chain performance. 


Events Spotlight 53 

First Annual Middle East Logistics 

Awards to set benchmarks for 

performance excellence 

A toast will be raised in 

recognition of excellence in the 

field of logistics in a prestigious 

event that will bring together key 

industry players in the entire 

Middle East. Dubbed as the first 

Middle East Logistics Awards 

(MELA), the momentous event – 

organised and managed by Media 

One Group – is slated for 

November 21, 2006, in Madinat 

Jumeirah, Dubai, UAE. 

The Middle East Logistics 

Awards 2006 aims to foster a 

healthy competition among equals 

in the dynamic and competitive 

logistics industry. And there is no 

better way to do this than 

honouring the trailblazers of the 

industry. MELA is a brand of 

excellence in logistics business 

that puts the best above the rest. 

Three major accolades will be 

awarded – the ‘Outstanding 

Achievement Award’, the ‘Best 

Personality of the Year Award’ 

and the ‘Outstanding Industry 

Sector Award’. More than thirty 

plum awards for different 

categories and industry sectors 

will highlight the outstanding 

contributors and stellar 

performers of the Middle East 

logistics industry. The exclusive 

world-class gala event aims to 

network all players in the Middle 

East logistics industry. 

The list of awards for sea 

transport includes the Best 

Seaport, the Best Container 

Terminal, the Best Global 

Container Terminal Operator, the 

Best Emerging Container 

Terminal, the Best Container 

Shipping Alliance, the Best Global 

Shipping Line and the Best 

Shipping Line. For air transport, 

awards will be given for the Best 

Airport, the Best Emerging 

Airport, the Best Air Cargo 

Terminal, the Best Express 

Operator, the Best Air Freight 

Alliance, the Best Air Cargo 

Carrier, the Best All Cargo Airline 

and the Best Air Charter Operator. 

As far as surface transport is 

concerned, awards for the Best 

Rail Operator, the Best Road 

Hauler, the Best Land Freight 

Agent and the Best Land Freight 

Forwarder are in the store. 

From the shippers, the search 

for the Best Exporter, the Best 

Importer and the Best 

Transhipment International Trader 

is on. Awards will be given to the 

Best Logistics Park (Air and Sea) 

and the Best Emerging Free Zone. 

Celebrating the spirit of 

entrepreneurship, awards will be 

given for Outstanding 

Achievement, Personality of the 

Year - Maritime Industry, 

Personality of the Year - Air Cargo 

Industry, Personality of the Year - 

Land Transport Industry and Young 

Achiever of the Year. Apart from 

all these acknowledgements, 

awards are there for the Best 

Logistics Service Provider in Sea 

Freight, Air Freight, Perishable 

Logistics and the Best 3PL. Key 

industry players will also be 

receiving awards for the Best 

Reefer Cargo Equipment Provider 

(Sea Freight), the Best Project and 

Special Cargo Provider, the Best 

Insurance Service Provider, the 

Best Trade Finance Bank, the Best 

Supply Chain Management 

Software Provider and the Best 

Logistics Education Course 

Provider. 

Less than four months to go, 

MELA is fast gaining momentum. 

MELA awardees will be 

determined by votes by the 

industry players. Votes will be 

based on the criteria of 

excellence that the industry is 

always looking for. Forms for the 

vote will be made available soon 

in all leading newspapers and 

trade and business magazines as 

well as on the website 

www.mela.ae. 


54 Events Spotlight 


Exhibition 2007 

Commercial 

Vehicle Show 

SME Expo & 

Conference 

The Middle East’s leading Materials 

Handling Exhibition for freight, cargo, 

logistics, distribution, warehousing, 

airport, ports, construction and 

manufacturing is scheduled to take 

place at the Dubai World Trade Centre 

from May 27-29, 2007. 

The event is an absolute must for all 

industry professionals interested in 

state-of-the art products and solutions 

within the materials handling and 

storage industries including forklift 

trucks & accessories, shelving and 

racking system, IT and supply chain 

systems, recruitment services, 3rd 

party logistic services, transport & 

distribution services. The event is 

expected to have a great significance 

for the region in view of the several 

mega projects and airport expansions 

taking place across the region. 

Owing to this boom in construction 

and transport industry in the Middle 

East and neighboring regions, which in 

turn developed a niche need for an 

International dais, has initiated the 

launch of ‘The Middle East 

International Commercial Vehicle 

Show’. 

To be held from November 27-30 at 

Dubai Autodrome, the event will bring 

together manufacturers, dealers and 

distributors of commercial, special 

need vehicles, earth movers & heavy 

equipments used for logistics, 

transportation, municipality, hospitals, 

construction and infrastructure, 

defense and special needs sector onto 

a common interacting platform, 

presenting an unprecedented business 

opportunity to the brands and the 

industry as well. 

International Exposition is proud to 

present the Small & Medium 

Enterprises (SME) Expo and Conference 

to be held on January 14 – 16, 2007 at 

the Dubai International Exhibition 

Centre, UAE. The event seeks to 

promote and encourage small and 

medium enterprises by providing them 

with opportunities to network with 

peers and learn about worldwide best 

practices and current issues related to 

SMEs and their management. 

More than 300 SMEs, SME service 

providers, trade promotion 

organisations and commissions, 

consulates, and chambers of commerce 

from around the globe are expected. 

Business matching services, forums, 

and one-on-one business advisory 

services to promote international 

business will be part of the conference. 

13th Arab Oil & Gas Show 2006 

The 13th Arab Oil & Gas Show 2006 

(OGS 2006), the Arab world’s premier 

event for petroleum industry 

professionals, investors, equipment 

and technology providers, will take 

place from September 9 to 11 at the 

Dubai International Exhibition Centre. 

Supported by the UAE Ministry of 

Energy the 13th edition of the annual 

event will showcase innovative 

technologies and services and provide 

an effective forum for discussing issues 

pertinent to the oil and gas sector in a 

region that accounts for nearly 60 per 

cent of the world’s proven oil reserves. 

The Show, which has seen the 

participation of over 3,500 companies 

from more than 35 countries since its 

inception, also acts as an effective 

interactive platform for networking 

and discussion among petroleum 

industry professionals from around the 

world on issues related to exploration, 

extraction, processing, storage, 

transportation and security in the oil 

and gas industry. 

For the second consecutive year, the 

event will feature the Arab 

Instrumentation and Automation 

exhibition (AIA), that will run 

concurrently with OGS 2006, and 

will display state-of-the-art 

instrumentation, control and 

automation technologies related to the 

energy, engineering, construction, 

manufacturing and communications for 

industry buyers from the Middle East, 

the Mediterranean and the Indian 

subcontinent.

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