DUBAI: Gulf-based businesses are preparing for the new economic order by leveraging on the new growth opportunities presented by the current global financial crisis. Long-term growth measures include acquiring assets, recruiting fresh talent and training them and exploring non-traditional growth markets with a focus "more volume, less value" deals.
This was the unanimous conclusion of a panel of GCC-based business leaders at the first Wharton Global Alumni Forum whose two-day sessions opened here yesterday.
The session on "Is the Dawn of the New Era of MENA Multinationals Delayed" witnessed much straight-talk with one of the participants urging the Arab world to "step up to respect each other before respecting outsiders" that was greeted by the audience with loud applause.
Presenting the case, Professor Witold J. Henisz, associate professor of management, The Wharton School, who was the moderator, asked the participants on what made their businesses succeed.
Mohamed Alshaya, executive chairman, M.H. Alshaya Co., Kuwait, said the key to the success of his organization was selecting the right talent and ensuring fair deals for all stakeholders.
Sami Bargoum, MD, Savola Group, Jeddah, highlighted the need to tailor the brands for the region, and focus on cultural proximity. Identifying how governments and the public sector work was the niche route to success developed by Tarek Sultan, chairman and MD, Agility Logistics, Kuwait.
Rami Makhzoumi, president and CEO, Future Pipe Industries, UAE, said the ethno-origin of companies are not a constraint, and asserted that the new generation of today's business leaders are "MNCs (multinational companies in our own individual capacity."
The panel highlighted that the attitude of governments to the private sector has shifted considerably even in conservative markets. Participants also called for the need to create job opportunities for Arab youth, who are expected to dominate the regional demography by 2030.
Alshaya and Bargoum said they are building on the current financial climate to invest in human resources and acquire new assets. "This is a good time to take a pause, look inward and look at how we can reduce costs. That is because businesses are concerned and must make contingency plans. But this is also the time to identify opportunities and act on them," said Alshaya. One of the strategies proposed by the panel was to look at non-traditional markets, and go for "bread and butter deals and larger volumes."
© Arab News 2009
