Thea Myhrvold, the founder of TeachMeNow.com, the Dubai-based e-learning start-up, has signed up to a Microsoft cloud initiative. Satish Kumar / The National
Thea Myhrvold, the founder of TeachMeNow.com, the Dubai-based e-learning start-up, has signed up to a Microsoft cloud initiative. Satish Kumar / The National

UAE start-ups on the ground benefit from power of the cloud



Cloud computing may sound ethereal – but for many of the UAE’s smartest start-ups, it brings some very real benefits on the ground.

Many of us use the cloud every day without even thinking about it – like when we check our Gmail or stream the latest tracks on Apple Music.

But the cloud’s vast computing power is also forming the backbone of some of the UAE’s most high-tech businesses.

Take TeachMeNow.com, founded in late 2013, which is a virtual classroom where teachers can earn money by giving one-to-one video tutorials. The company is based in Dubai but the first live class it hosted involved a professor in Venezuela and a student in Saudi Arabia.

Thea Myhrvold, the founder and chief executive of TeachMeNow, says using the cloud brought several benefits. The company did not have to buy expensive hardware; connections between students and teachers are faster because of the cloud’s global network; and the service works in a web browser, without the need for an app.

Ms Myhrvold also says the cloud platform means her business can scale up without investing in new hardware. “You can have a global reach faster, with less cost,” she says. “We could have a million users tomorrow and our system wouldn’t crash.”

TeachMeNow hosts teachers specialising in subjects ranging from art to Arabic and chemistry to chess. Teachers set their own hourly rate, with the website taking a 15 per cent cut; the company also offers a version that can be used by institutions looking to sell online classes.

Cloud services, of course, come at a cost. TeachMeNow has temporarily sidestepped this expense by signing up to a Microsoft initiative called BizSpark, which offers start-ups a limited amount of free software, technical support and cloud services over three years. The company later qualified for the BizSpark Plus programme, which offers up to US$120,000 of cloud services during one year.

“We have saved quite a few thousand dollars already. And as a start-up, every cent counts,” says Ms Myhrvold.

Other tech firms have similar programmes aimed at start-ups, such as Amazon Web Services’ AWS Activate and the Google Cloud Platform for Startups. A Google representative in the UAE says members of the AstroLabs Dubai co-working space can get a free trial of the Google Cloud Platform, but start-up credits are not available in this market.

Michael Mansour, the chief innovation officer at Microsoft Gulf, says more than 100,000 start-ups worldwide are using the free BizSpark programme – and hundreds of them are in the Arabian Gulf.

“We have the greatest activity here in the UAE across all the Gulf countries. But we are seeing activity in Oman, in Kuwait, in Qatar, in Bahrain,” he says. “If you are starting a company, you don’t want the additional cost of software and hardware. We’re all coming to the realisation that the cloud is a cost-reducer.”

Mr Mansour acknowledges that the cloud “can be misunderstood”. A study in 2014 by Microsoft Canada found that 90 per cent of senior executives in Canada are not familiar with what cloud computing means. Almost half felt their company’s information would be unsafe in the cloud – even though, according to Microsoft Canada, the multiple backups of data made by cloud services “keeps it safe from fires, floods or malicious damage that could strike on-premise servers”.

KinTrans, another Dubai-based start-up, relies on a lot of data-crunching. It has developed software that translates physical sign language, which is analysed using a Microsoft Kinect motion-sensing device, into voice and text, enabling communication between the hearing and the deaf.

KinTrans is currently perfecting its technology and plans to start licensing out its software later this year, says Catherine Bentley, its co-founder and chief business development officer. She says the company had also taken advantage of Microsoft’s offer of free use of its Azure cloud computing and software services. “The data processing happens in the cloud. It keeps the on-earth operations really accessible for businesses,” says Ms Bentley.

“The Azure cloud is also going to be the way that we commercialise. So as a business-to-business model and licensing base, we can be everywhere and only one place at the same time.”

There have been some concerns raised about security in cloud computing. “Just because we can’t touch it, doesn’t mean it’s any more secure or less secure than any other device that we use,” says Ms Bentley.

business@thenational.ae

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Company Profile

Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed

MATCH DETAILS

Barcelona 0

Slavia Prague 0

WHAT IS THE LICENSING PROCESS FOR VARA?

Vara will cater to three categories of companies in Dubai (except the DIFC):

Category A: Minimum viable product (MVP) applicants that are currently in the process of securing an MVP licence: This is a three-stage process starting with [1] a provisional permit, graduating to [2] preparatory licence and concluding with [3] operational licence. Applicants that are already in the MVP process will be advised by Vara to either continue within the MVP framework or be transitioned to the full market product licensing process.

Category B: Existing legacy virtual asset service providers prior to February 7, 2023, which are required to come under Vara supervision. All operating service proviers in Dubai (excluding the DIFC) fall under Vara’s supervision.

Category C: New applicants seeking a Vara licence or existing applicants adding new activities. All applicants that do not fall under Category A or B can begin the application process through their current or prospective commercial licensor — the DET or Free Zone Authority — or directly through Vara in the instance that they have yet to determine the commercial operating zone in Dubai. 

Company Profile

Name: HyveGeo
Started: 2023
Founders: Abdulaziz bin Redha, Dr Samsurin Welch, Eva Morales and Dr Harjit Singh
Based: Cambridge and Dubai
Number of employees: 8
Industry: Sustainability & Environment
Funding: $200,000 plus undisclosed grant
Investors: Venture capital and government

A Cat, A Man, and Two Women
Junichiro
Tamizaki
Translated by Paul McCarthy
Daunt Books 

How to register as a donor

1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention

2) There are about 11,000 patients in the country in need of organ transplants

3) People must be over 21. Emiratis and residents can register. 

4) The campaign uses the hashtag  #donate_hope

A Long Way Home by Peter Carey
Faber & Faber

Stamp duty timeline

December 2014: Former UK chancellor of the Exchequer George Osborne reforms stamp duty land tax (SDLT), replacing the slab system with a blended rate scheme, with the top rate increasing to 12 per cent from 10 per cent:

Up to £125,000 – 0%; £125,000 to £250,000 – 2%; £250,000 to £925,000 – 5%; £925,000 to £1.5m: 10%; More than £1.5m – 12%

April 2016: New 3% surcharge applied to any buy-to-let properties or additional homes purchased.

July 2020: Chancellor Rishi Sunak unveils SDLT holiday, with no tax to pay on the first £500,000, with buyers saving up to £15,000.

March 2021: Mr Sunak extends the SDLT holiday at his March 3 budget until the end of June.

April 2021: 2% SDLT surcharge added to property transactions made by overseas buyers.

June 2021: SDLT holiday on transactions up to £500,000 expires on June 30.

July 2021: Tax break on transactions between £125,000 to £250,000 starts on July 1 and runs until September 30.

COMPANY PROFILE

Company name: Klipit

Started: 2022

Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant

Based: Dubai, UAE

Industry: Digital receipts, finance, blockchain

Funding: $4 million

Investors: Privately/self-funded

UAE currency: the story behind the money in your pockets
How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
JOKE'S ON YOU

Google wasn't new to busting out April Fool's jokes: before the Gmail "prank", it tricked users with mind-reading MentalPlex responses and said well-fed pigeons were running its search engine operations .

In subsequent years, they announced home internet services through your toilet with its "patented GFlush system", made us believe the Moon's surface was made of cheese and unveiled a dating service in which they called founders Sergey Brin and Larry Page "Stanford PhD wannabes ".

But Gmail was all too real, purportedly inspired by one – a single – Google user complaining about the "poor quality of existing email services" and born "millions of M&Ms later".

AS IT STANDS IN POOL A

1. Japan - Played 3, Won 3, Points 14

2. Ireland - Played 3, Won 2, Lost 1, Points 11

3. Scotland - Played 2, Won 1, Lost 1, Points 5

Remaining fixtures

Scotland v Russia – Wednesday, 11.15am

Ireland v Samoa – Saturday, 2.45pm

Japan v Scotland – Sunday, 2.45pm

Buy farm-fresh food

The UAE is stepping up its game when it comes to platforms for local farms to show off and sell their produce.

In Dubai, visit Emirati Farmers Souq at The Pointe every Saturday from 8am to 2pm, which has produce from Al Ammar Farm, Omar Al Katri Farm, Hikarivege Vegetables, Rashed Farms and Al Khaleej Honey Trading, among others. 

In Sharjah, the Aljada residential community will launch a new outdoor farmers’ market every Friday starting this weekend. Manbat will be held from 3pm to 8pm, and will host 30 farmers, local home-grown entrepreneurs and food stalls from the teams behind Badia Farms; Emirates Hydroponics Farms; Modern Organic Farm; Revolution Real; Astraea Farms; and Al Khaleej Food. 

In Abu Dhabi, order farm produce from Food Crowd, an online grocery platform that supplies fresh and organic ingredients directly from farms such as Emirates Bio Farm, TFC, Armela Farms and mother company Al Dahra. 

Biography

Favourite book: Zen and the Art of Motorcycle Maintenance

Holiday choice: Anything Disney-related

Proudest achievement: Receiving a presidential award for foreign services.

Family: Wife and three children.

Like motto: You always get what you ask for, the universe listens.

Herc's Adventures

Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5

'The Predator'
Dir: Shane Black
Starring: Olivia Munn, Boyd Holbrook, Keegan-Michael Key
Two and a half stars