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Middle East Edition
20th October 2023
 
THE HOT STORY
Emirates Global Aluminium appoints women as utility operators for the first time
Emirates Global Aluminium (EGA), the largest industrial company in the United Arab Emirates, has appointed women as utility operators for the first time in its history. This move is part of EGA's commitment to promote gender diversity at all levels of its business. By 2026, EGA aims to have 15% of all positions held by women and increase the proportion of supervisory roles held by women to 25% by 2025. EGA is a pioneer in recruiting women for frontline non-supervisory roles in the Gulf, implementing new international recruitment strategies. The company has already made efforts to facilitate greater gender diversity, including developing new strategies for worker accommodation and building facilities for women in its plants. Abdulnasser Bin Kalban, CEO of EGA, stated that diversity drives business performance and aligns with the broader objectives of the UAE. EGA has also opened national training programs for women in technical roles and appointed women to subsidiary boards.
WORKFORCE
ILO director general emphasizes importance of global collaboration
The International Labour Organisation (ILO) director general, Gilbert F Houngbo, has spoken at an event hosted by Georgetown University in Qatar (GU-Q) about the importance of global collaboration for creating a more equitable world. He emphasized the ILO's commitment to advancing social justice, combating workplace inequalities, improving labour conditions, expanding social protection, and promoting gender equality. Houngbo also discussed the impact of transformative technologies, such as AI, on economies and societies. He highlighted the need for heavy investments in reskilling workers to adapt to these changes. In a conversation with Dr Gerd Nonneman, the director-general explained the ILO's unique trilateral structure and addressed Qatar's labour reforms, praising the positive steps taken while acknowledging ongoing challenges. 
Tesla mechanics in Sweden threaten strike over collective bargaining agreement
Tesla mechanics in Sweden are threatening to go on strike unless the company signs a collective bargaining agreement. The metal workers' union, IF Metall, has been trying to negotiate an agreement with Tesla without success. The union is now threatening to order its members in all seven cities where Tesla operates service centres to walk out. The dispute concerns the employees' salaries, pensions, and insurances, as well as the rules of the Swedish labour market. Working conditions at major international companies have been a hot topic in Sweden, with tech workers at Spotify and Klarna also pushing for collective agreements. Those in favour argue that collective agreements ensure good and equal contracts for everyone, while those against argue that up-and-coming businesses need more flexibility. Spotify, for example, pulled out of negotiations with trade unions, stating that their employment conditions and benefits are already just as good or better than what is stipulated in a collective bargaining agreement.
CORPORATE
Mena banking sector sees 30% yoy growth in net profits, EY says
The Middle East and North Africa (Mena) region banking sector has experienced significant growth, with a 30% surge in net profits and a 12.2% increase in net assets, according to the EY Mena H1 2023 Banking Report. The report also highlights a rise in returns on equity, net interest margin, and operating income. Non-performing loans are expected to remain stable, and there is a focus on regulatory oversight and financial crime prevention. The report says the GCC banking sector is on an upward trajectory, driven by increasing demand for lending and a rise in sustainable finance. Digital transformation also is reshaping the Mena banking sector, with AI and chatbots providing faster and more personalised services. Banks are investing in digital solutions and improving risk management.
Saudi Arabia's sovereign wealth fund hires banks for debut sukuk
Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), has hired banks to arrange its debut dual-tranche U.S. dollar-denominated sukuk. The planned issuance will include 5-year and 10-year tranches under SUCI Second Investment Company's trust certificate issuance programme. Citi, HSBC, J.P. Morgan, and Standard Chartered Bank have been appointed as joint global coordinators and joint active bookrunners.
INVESTMENT
Saudi government fund backs Swedish VC firm Northzone
Saudi Arabia's Public Investment Fund (PIF) has invested in Swedish venture capital firm Northzone, making it the only European VC firm known to have received investment from PIF's venture investment arm Sanabil. PIF, with a $700bn portfolio, is looking to make significant bets on tech, sports, and video gaming. Sanabil, which invests around $3bn annually, has backed major Silicon Valley names including Sequoia Capital and Andreessen Horowitz. The disclosure of Northzone's investment comes as Saudi Arabia aims to reduce its reliance on fossil fuels and become a major player in the tech industry. European venture capital funds have faced challenges raising new funds, leading them to raise smaller funds compared to their American counterparts. PIF's deep pockets make it an attractive backer for European VC firms. Northzone, which recently raised $1bn for its tenth fund, has backed successful companies such as Klarna and Spotify.
TECHNOLOGY
Microsoft's new ChatGPT-style assistant can go to meetings for you
An artificial intelligence (AI) assistant developed by Microsoft will be available to customers using its office apps from the beginning of November. The tool can summarise meetings held in Teams for anyone who chooses not to attend, and draft emails, create Word documents, spreadsheet graphs, and PowerPoint presentations in moments. Microsoft 365 Copilot uses the same tech which underpins ChatGPT, created by OpenAI. The BBC’s technology editor, Zoe Kleinman, notes that both Europe's AI act and China's AI regulations state that people must know if they are interacting with AI rather than humans, but Collette Stallbaumer, head of Microsoft 365, said it was up to the individual using Copilot to clarify that.
Zoho seeks expansion in Middle East and Africa
Zoho, the global technology firm that reported more than $1bn in revenue in 2022, is expanding in the Middle East and Africa. The company aims to double its revenue every three years and sees the UAE as one of its biggest markets. The Middle East and Africa region has become the fastest growing market for Zoho, with its revenue contribution increasing from 2%-3% to nearly 10% of the global figure. Zoho plans to open new offices and hire more employees in Dubai, Jeddah, Riyadh, Nigeria, Kenya, and South Africa. Despite a slowdown in global economic conditions, Zoho remains bullish about the market and continues to invest. The company has also invested in local partnerships in the UAE to help businesses digitise their operations. Zoho's revenue growth has been organic, without external funding, and it aims to maintain its trajectory for the next three to five years. Hyther Nizam, President of Middle East and Africa at Zoho, stated: "If the economic conditions are conducive and the political situation favourable, then we hope to have the same trajectory for three to five years."
HIRING
Philippine carriers announce recruitment drive for aviation jobs
Philippine carriers, including Philippine Airlines (PAL), Cebu Pacific, and AirAsia Philippines, are preparing for significant workforce expansion to align with their ambitious growth plans. PAL, which swung to an operating profit of $298m in 2022, is hiring 300 cabin crew to support its fleet expansion. Cebu Pacific, the country's largest low-cost airline, is targeting thousands of pilots, aircraft mechanics, and cabin crew to accommodate its record aircraft orders. The airline has allocated $650m for new aircraft this year. AirAsia Philippines has already hired 260 new pilots, cabin crew, and technical crew in the first two months of 2023 and plans to hire more. The carriers' recruitment drives aim to meet the projected growth in domestic and international travel in the coming years.
INTERNATIONAL
Nokia to cut 14,000 jobs in cost reduction effort
Finnish telecom gear group Nokia has announced plans to cut up to 14,000 jobs as part of a cost reduction effort. The company's third-quarter sales fell by a fifth due to weak demand for 5G equipment. Nokia aims to achieve savings of between €800m and €1.2bn by 2026. The programme is expected to result in a workforce of 72,000 to 77,000 employees, down from the current 86,000. Ericsson, Nokia's rival, has also laid off thousands of employees this year. Nokia's CEO, Pekka Lundmark, stated that the cost reduction is necessary to adjust to market uncertainty and ensure long-term profitability and competitiveness.
 


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