TINA ERP system supports GCC VAT calculations

Source: dcs plus. Graphic for the TINA travel ERP software.

Romania-headquartered dcs plus has announced support that its TINA web-based ERP system for the travel industry now supports value-added tax (VAT) in the Gulf Cooperation Council (GCC) region. The company has an office in Dubai, UAE.

As of January 2018, all member states of the Gulf Cooperation Council (GCC) will introduce VAT as per the VAT Framework Treaty signed in October 2016. 

TINA collects the bookings from all selling channels, fits them into standardised, ready-to-automatise workflows. TINA travel ERP allows businesses to: 

• Calculate the VAT for each service that is introduced in the system: either based on the region where the service is offered - domestic, regional or international, or by customer type - company or individual, and even segmented by price component - supplier tax, service fee, and city tax 
• Allocate the right percentage of VAT automatically 
• Access reports regarding all transactions 

Cristian Dinca, CEO of dcs plus said: "TINA is used in more than 25 countries worldwide, helping and supporting large travel companies to automatise the process of VAT calculation and application, for almost 14 years now. Given our vast experience, we can assist GCC companies in adopting and implementing the new VAT framework, thus giving them more time to focus on growing their businesses."

Participation banks must adopt fintech innovations to grow: EY

• The Gulf Cooperation Council (GCC) region’s share of participation banking grew to 72%
• KSA, the UAE and Malaysia are the three largest participation banking markets, in terms of assets

According to EY’s recent Banking in emerging markets report, the assets of global participation banking, also known as Islamic banking, has reached US$924 billion in 2015, with growth rates declining across all regions compared to previous years.

The GCC region’s share of participation banking increased to 72%, as the size of assets in the Association of Southeast Asian Nations (ASEAN) countries declined during 2015. KSA, the UAE and Malaysia are the three largest participation banking markets in terms of assets, representing 34.2%, 17.2%, 13.3% of the global market share respectively.

Gordon Bennie, MENA Financial Services Leader, EY, says: “Today, more than 2 billion adults still do not have a bank account. There are also more than 200 million micro, small and medium size businesses (MSMBs) with unmet financing needs. The demand for a responsible, shari'ah-compliant financial system is huge. There is also a wealth of business opportunities offered by fintech innovations for participation banks, particularly in emerging markets.”

In the GCC region, fintech innovations have the ability to enhance market access and profitability of banks, dramatically. A starting point for participation banks is to activate a bold strategy for the finance function – inclusive of advanced data analytics, robotic process automation, the cloud, artificial intelligence and Blockchain.

Ashar Nazim, Partner, Global Islamic Banking Center, EY, says, “The fact that almost one-third of the US$3 trillion global shari'ah-compliant assets are either reported as ‘informal or ‘best estimates’ demonstrates the limitation of participation banks in making sound strategic decisions. Chief Financial Officers (CFOs) need reliable information and we are seeing a strong desire to improve data management and analytics at participation banks through fintech innovations.”

Some of the key areas for fintech innovation that are relevant for participation banks include: SMB and peer-to-peer lending platforms, payment-related innovations such as person-to-person payments, digital authentication and digital wealth management.

“There has been a clear evolution for CFOs from having the primary role of analysing historical data to one whose focus will be providing forward-looking insights. In-memory computing and big data are the clear direction forward, with predictive analytics being a key driver of these changes. Given that there is more fintech innovation going on outside of the banks than inside, the opportunity is for participation banks to win through collaboration. The bank of the future could be a consolidation of fintech boutiques under a single brand,” comments Ashar.

If banks were to consolidate with fintech companies, it could propel participation banks to become mainstream across 20 promising markets by 2021, up from five markets today, representing a jump from 100 million customers to 250 million customers over the same period.

Source: EY report.

Digital-only banks for Millennials are another fintech trend. The Millennial generation has a clear preference for conducting their financial services on an end-to-end digital platform. Using fintech innovations, banks worldwide are stepping forward to offer digital-only banking services to meet the differentiated needs of this customer segment.

Digital-only banking could become a significant client segment for participation banks. There is a case for participation banks to evaluate collaborative ventures with fintech firms to launch digital-only banks in their respective countries.

“The adoption of fintech innovations is not an option, but an absolute imperative for participation banks to continue to gain market share. Consumer technology penetration (mobile phone, tablet, laptop) in the GCC region is now comparable with that of consumers in most developed countries. Based on their familiarity and use of consumer technology, their behaviour patterns are modifying, with increased expectation to interact with banks using digital channels. Participation banks cannot realistically expect to gain sustainable future growth in their market share if they lag behind their conventional counterparts in digital transformation through the use of fintech innovations,” concludes Ashar.

Interested?

Download the Banking in emerging markets: GCC FinTech Play 2017 report (PDF)

Read the TechTrade Asia blog post about DBS' mobile-only bank in India

Bahrain joins Cruise Arabia Alliance

Bahrain has become the latest country to confirm its commitment to the Cruise Arabia Alliance, which now has membership from the UAE emirates Abu Dhabi, Dubai, and Sharjah, as well as Qatar and Oman. The alliance encourages its members to share best practices and ensure a region-wide level of service and standards offered to both the cruise lines and their passengers.

The announcement was made at the Seatrade Middle East Cruise Forum, which was held in Doha, Qatar and hosted by Qatar Tourism Authority (QTA). The announcement was made in conjunction with Bahrain announcing it would be complementing the 2015/2016 cruise season with 68,000 passengers and 32 calls from major cruise lines.

The QTA also stated that Qatar is expecting a three-fold increase in passengers next season. Thirty cruise ships will be bringing up to 50,000 passengers to Doha between October 2016 and April 2017 - up from the eight calls scheduled this season.

Hassan Al Ibrahim, QTA’s Chief Tourism Development Officer, said: “Qatar places huge importance on the cruise industry, both to diversify the tourism sector and Qatar’s overall economy. There are long-term plans to upgrade the country’s infrastructure, all of which will enable us to tap into the potential of cruise tourism by developing Qatar’s ports.

“We are building our infrastructure and human capital; we have a new destination brand that consolidates the industry’s efforts to attract more visitors; and, we are diversifying and enhancing the products and services across the entire industry.

“For our part, QTA is working with partners across the public and private sectors, to plan, regulate, develop and promote the tourism sector, with the aim of achieving growth that is both exponential and sustainable.”

He added: “QTA is committed to providing at least 6,000 rooms on cruise ships for the 2022 FIFA World Cup competition - in the redeveloped Doha Port – reinforcing cruise tourism as one of our most exciting and enduring legacies.”

The Forum confirmed that the Arabian Gulf is now the third most popular winter cruising destination with one million cruise passenger visits expected in GCC countries during the 2015 to 2016 season.

Chris Hayman, Chairman of Seatrade, organisers of the Forum, said: “Over the two days of the Forum, we have repeatedly heard from tourism and ports authorities across the region that the cruise industry has been identified as a crucial area for growth in the coming years and that many see this sector as an engine for sustainable development of their economies, and as an important pillar that supports efforts to limit dependence on natural energy resources as a driver of GDP.”

To achieve this, Hayman highlighted the significance of the Cruise Arabia alliance which is committed to its members working together with the common goal of growing cruise tourism and tackling the challenges faced, whilst taking advantage of the opportunities that will arise in the coming years.

Amongst the challenges discussed is the importance of each destination to create shore excursions that are diverse and offer unique onshore opportunities for cruise line passengers. The question of obtaining visas was also flagged as a challenge but was felt that each destination was developing wider flexibility and this had been well addressed since the last Forum in 2015. Security was also highlighted as a potential challenge as perceptions of passengers unfamiliar with the region had been influenced by international media coverage. However, it was felt that passengers who have visited the Arabian Gulf for themselves understand that it is a safe area with tight security, and can be ambassadors in promoting the region. 

The diversification challenge facing GCC countries

If the GCC countries were to catch up to the average OECD level of diversification, the region could see additional gains of up to US$17.7 billion. This is one of the findings of EY’s Growth Drivers 2 report: Digging beneath the surface - Is it time to rethink diversification in the GCC? 

Gerard Gallagher, MENA Advisory Leader, EY, says: “Dependence on oil and growing youth unemployment are the GCC’s biggest economic challenges. With recent oil price volatility, diversification has returned to the top of the GCC agenda; it’s an opportunity worth US$17.7 billion. To put that into context, it is more than three-quarters of the entire flow of foreign direct investment to the GCC region for 2013.” ­­

The EY Diversification Tracker, which benchmarks the GCC countries both globally and against each other, provides a standardised basis for assessing the degree to which economies have moved away from dependence on oil. It focuses on three aspects — export complexity, the share of the non-oil sector and private versus public sector spending — which have been combined to give a percentage of diversification relative to the highest global performer.

The report identifies a ‘sweet spot’ where regional strengths, economic impact and nationals’ employment preferences meet, allowing all three factors to be achieved.

“The best drivers of diversification are those that have the strongest linkages with the rest of the economy. These sectors are said to have a high economic multiplier: in other words, a dollar of investment translates into far more than a dollar of GDP due to the stimulation of other sectors. Sectors that fall in the sweet spot include: transport, financial services, retail and tourism, telecoms and R&D,” says Gallagher.

The analysis of multiplier sectors in hydrocarbon economies shows that additional investment in oil and gas brings the least additional return to GDP at US$1.30 and affects just seven other sectors. Construction is at the opposite extreme. It has the highest economic multiplier, averaging an impact of US$1.80 in GDP for every dollar invested in construction activity. This trickle down feeds into almost every other sector.

Michael Hasbani, New Markets Leader, MENA Advisory Services, EY says: “The key is not for governments to pump more public money into these sectors. The public sector needs to shift from being the main investor to being the enabler and driver of business, resetting the incentives, removing regulatory obstacles, encouraging collaboration and providing world-class infrastructure and services. The goal for diversification is not what is achievable in each individual country, it is how Gulf companies and governments can find innovative, proactive and profitable solutions to challenges such as resource scarcity, demographics and digitalisation, that are having a profound impact on how business is done and on where jobs are created.”

Creating jobs will be a critical outcome. However, diversification does not automatically create jobs that are viable substitutes for public sector employment. Creating private sector jobs will not ensure employment for young nationals unless they are taught the technical skills and professional attitudes that would both motivate and enable them to take on the increasingly demanding jobs that the knowledge economy brings.

To tackle this issue, many of the Gulf countries have been working to improve their education systems and have developed innovation ecosystems, encouraging technical research and entrepreneurship.

“Diversification will struggle if the GCC region only looks inwards. Governments and companies in the region should shape global trends to its advantage. The sectors that are preserved without transformation will no longer be relevant to the rest of the world, let alone competitive. The window of opportunity to break the reliance on oil and gas is now, but it will require new and innovative approaches to make it happen. It is time to truly capitalise the collective strength of the GCC, integrating our economies and harmonising regulations to encourage long term, sustainable prosperity and fulfill our global ambitions,” said Hasbani.

Hyundai launches Grand i10 in GCC

Source: Hyundai Motor Company.

The Hyundai Motor Company has launched the Grand i10 across the GCC. The car is positioned at those in their early 20s or 30s who are looking for comfort, convenience and safety, and comes in the hatchback and sedan body styles and two different trim levels – GL and GLS, with prices starting at US$10,000.  

According to Hyundai, the Grand i10 recorded sales of over 5,400 units in its first six months in Lebanon, where it was launched in April 2014. Tom Lee, Vice President and Head of Hyundai Africa and Middle East Regional Headquarters, said: “The Grand i10 has proven extremely popular with customers in other markets, and we are confident that economy-minded buyers in the GCC will also be attracted by its stylish looks, practicality and high levels of specification. This new model allows small car buyers the opportunity to enjoy the benefits that our ‘Modern Premium’ approach has previously delivered to owners of Hyundai mid-size, large and SUV models.”

With a longer wheelbase than the i10, resulting in more interior space, Hyundai’s new offering in the GCC provides a substantially roomier cabin than its key competitors, while the sedan version offers 407 litres of luggage space. On top of that the back seats in the hatchback fold down to provide extra cargo space when needed. 

The Grand i10 is extremely aerodynamic with a drag coefficient of 0.35, thanks to a lower overall height, engine undercover and aerodynamically shaped side mirrors. This low drag coefficient translates into a better fuel efficiency. Noise, vibration and harshness have also been reduced to minimal levels thanks to a resigned engine air intake, quieter fuel pump and improved body rigidity.

The Grand i10 boasts premium features such as a smart key, engine start button and, for added safety, a rear parking assist system. The hatchback model also offers Electronic Stability Control and Vehicle Stability Management for improved vehicle stability. A generously-sized glovebox with cooling system provides extra storage. At the same time, AUX, IPOD, USB and Bluetooth connections offer a fast and easy way to stream your music. Audio and Bluetooth functions can all be controlled via the steering wheel buttons.

The Grand i10 will be available across the GCC with two different power unit options: a 1.0L MPI petrol engine producing a maximum 66 PS at 5,500rpm, and a 1.25L MPI petrol powerplant engine delivering up to 87 PS at 6,000rpm. The choice of gearbox is either a 5-speed manual or a 4-speed automatic transmission. Both engines feature an all-aluminium construction to minimise weight and maximise fuel efficiency.

Kobo eReader ecosystem now available in GCC

Source: Kobo. The Kobo
Aura H2O eReader.

Kobo and multichannel distributor Lionfish today announced the arrival of Kobo's digital reading platform to the GCC region. Passionate readers can now enjoy Kobo's eBookstore with more than 4.2 million titles, eReaders, and apps for iOS, Android, Microsoft, and BlackBerry platforms. 

Starting today, Kobo will be available in 34 stores, including the Dubai Duty Free Stores, Virgin Megastores* and Xcite**. Kobo eReading devices will also be available for purchase online at Modvito, Souq.com and Jado Pado. Readers will have access to the Kobo eBookstore, featuring 4.2 million titles across 72 languages. From biographies and memoirs to business books, non-fiction to literary fiction, Kobo has something for everyone.

"Digital reading continues to rise across the globe and we're thrilled to be entering GCC countries to offer readers with best in class E Ink eReaders and eBookstore," said Jean-Marc Dupuis, Managing Director of EMEA, Kobo. "The Kobo Touch, Kobo Aura and Kobo Aura H2O offer different capabilities and price points, so there is definitely something for every reader. GCC countries are still in the early adoption stages of reading digitally and we are pleased to lead the transformation of this market."

Lionfish General Trading will be managing all facets of Kobo's presence in the GCC countries including distribution, retail partner relations, marketing and customer care.

The Kobo Touch eReader has an anti-glare 6" Pearl E Ink touchscreen that offers the closest experience to reading print on paper and is easy on the eyes, even in bright sunlight. Available in black, blue and lilac, the Kobo Touch has a battery life of up to one month and has 2 GB of internal memory for the storage of up to 1,000 books, with the option to expand to 32 GB with a micro SD card. The Kobo Touch will be available for AED429.

The new 6" Kobo Aura eReader is a front-lit E Ink eReader that features the first high-resolution, edge-to-edge display available in an E Ink eReader. Kobo's ComfortLight technology offers the most evenly lit display that is adjustable to suit any preference for the best reading experience, day or night. Available in black and pink, the sophisticated design of the eReader delivers the closest experience to print-on-paper with a 212 dpi and Pearl E Ink screen. With pinch-and-zoom capabilities for FLePubs/PDFs, Kobo Aura creates a smooth experience with a low-flash waveform screen to virtually eliminate page refresh and ghosting. With 4GB of storage (up to 3,000 books), expandable up to 32GB with a micro SD card, Kobo Aura has a battery life of up to more than two months. Kobo Aura will be available for AED729.

Kobo Aura H2O is IP67 certified, which means it is waterproof for up to 30 minutes in 1 metre of water with the port cover closed. This enables people to read more, more often, anywhere they like worry-free without damaging their device if accidentally dropped in or splashed with water. Reading on a sun-drenched beach is quite practical due to the device's dustproof design and anti-glare display.

At 265 dpi, the spacious 6.8" touchscreen with upgraded Carta E Ink technology - the first of its kind with these display dimensions - offers the closest experience to print-on-paper. The device's 1GHz processor means page turns are swift, and it comes with 4GB of onboard storage (expandable up to 32GB with a micro SD card). The Kobo Aura H2O will be available for AED999.

* All Virgin Megastores except those in Kuwait
** Only Xcite stores in Kuwait

Expatstoday offers essential tips for Gulf expats

Source: Expatstoday

A new portal targeted at expats wants your eyeballs. Would-be expats expecting to relocate to Bahrain, Kuwait, Oman, Qatar, Saudi Arabia & the UAE can check out living conditions in the Gulf countries on the Expatstoday website.

According to the company, the information it carries is as secure, relevant and reliable as possible. The pages for individual countries for the Gulf are fairly well-populated, indicating an existing community, but pages for other countries seem quite new, often with no listings in a number of categories. 

Source: Expatstoday website

The sections available include:

• Secure job exchange portal - job seekers can feature their profiles while employers can list job requirements. 
• Accommodation for rent - Accommodation profiles from owners who are open to expats as tenants.  
• Used cars - Details include what documentation is needed from expats, and the procedures to conclude a transaction successfully.
• Furniture and household items  
• Household and essential service providers - Look for home cleaners, painting, gardening, exterminators and similar services here.  

As with all communities, the success of Expatstoday will depend on how active individual members are and whether there are enough listings to make it worth visiting over and over again. There is definitely some level of utility for the GCC countries, and it could well extend in future to the pages for the rest of the world.