Ashish Panjabi was outside the UAE when the Iran war started. Mr Panjabi, chief operating officer of Dubai electronics and technology trader Jacky’s Group, made multiple airport visits before managing to get a flight back four days into the conflict. He says he is relieved to be back.
The company has been mostly operating as normal, with stores open and only a brief office closure initially. “We've actually been fairly OK. We had a new Samsung phone launch two days before all of this happened, the S26. And we were tracking with last year's flagship launch, we're tracking well with that, we're actually selling,” he says.
“People are still buying. People are still in the malls. People are still shopping. If there is a new gadget out there, they want it.”
The UAE, along with other Gulf countries, has attacked by Iran, which says it is retaliating for strikes by the US and Israel that began on February 28. The Emirates has emphasised that businesses in the country are operating as usual, with retail and tourism venues remaining open.
“I think this is the thing that Dubai does really well: trying to keep that sense of normalcy, the fact that malls stayed open, the fact that businesses are running, the fact that they're trying to keep venues open,” Mr Panjabi adds.
Supply shuffle
Salim Ahmed, co-founder and chief executive of Dubai-based heavy equipment supplier Dahbashi Engineering, says the situation was initially worrying, but work has since continued. “My guys have been working. They're quite positive. Nobody has called in a day [off],” he says.
With many ports across the Gulf region halting some operations amid the unofficial closure of the Strait of Hormuz, the shipping industry has been hit hard. Supply chains are being rerouted, but the logistics sector continues to be heavily disrupted.
Dahbashi Engineering is receiving supplies through functioning ports such as Salalah and Khorfakkan. The company has operations across the Gulf, so handling the logistics has been cumbersome. For example, shipments meant for Doha are coming to Khorfakkan and those meant to reach Jebel Ali port are in Sohar, Mr Ahmed explains. But the company has managed to keep supplies coming in from Europe through air freight.
“We have been very fortunate, to be honest, that supplies have not really been affected. Yes, the cost has gone up, which is beyond our control. At least we are able to service the customer,” he says.
Local ice cream company House of Pops has had to scale down its outdoor operations in the UAE, but has been exploring alternative options, says chief executive and co-founder Mazen Kanaan.
“One alternative option that we had was exports, because we were working on some projects and they were ready to be actioned,” he says. “But then also while we had the orders, we faced challenges in getting the raw material to produce this order. And then second, once the order is done, to export it.”
Creative solutions
The company, which makes plant-based ice cream, is working with importers, especially for fruit. But prices are “30 per cent higher” because of the air freight costs.
“There was an impact on the prices because of the shipments,” he says. “So that also impacted our profitability. But now it's about survival, not really about maximising profitability.”
With shipments not going out from Jebel Ali port, the company is looking at alternative export options, although many are not operating refrigerated cargo ships for frozen goods “because that's the first thing that gets stopped when there are disturbances”, Mr Kanaan says.
House of Pops is exploring ways to transport by road to Oman and Jeddah and ship from there. Some of the options are expensive, but Mr Kanaan is confident about finding solutions by the end of this month.
As an entrepreneur, “you need to pull yourself together and start taking action, because this action will create momentum, and this is where one door will open”, he says. “Then it gives you a bit more, and then you think outside the box … You need to do uncommon things in these situations.”
That’s a thought echoed by Jen Blandos, founder and chief executive of Female Fusion – a community of women entrepreneurs. “What's important … is that there's always opportunities within the downtimes,” she says.
“We've been speaking a lot to our members about – one – that they should be having a contingency plan in place, to have funds in place, to cover costs, cover salaries, to cover rent, but also, to be looking at what's working and what's not, and to quickly adjust those changes, and not sit back and wait for something to happen,” she adds.
“The businesses that are doing that, and have done that very rapidly, are in much stronger positions than those that aren't.”
It is important to “get rid of the stuff that's not important, but focus on the stuff that is”, she adds, citing marketing and PR communication as important during such periods.
“We have to hustle, we have to work hard,” she says.
Mr Panjabi says discussions are already taking place to find the opportunities once the situation changes. “There is going to be some rethinking, for sure,” he adds.
As the conflict drags on, the outlook remains unpredictable for businesses, Mr Ahmed says. “My experience with the business community over here – they have always come out better, except a few who were not really organised. I have seen at least five or six crises before … this community has always survived,” he says.
