12 March 2009
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-ever Wharton Global Alumni Forum being held in the Middle East in Dubai.
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, the moderator Professor Witold J Henisz, Associate Professor of Management, The Wharton School, asked the participants on what made their businesses succeed.
Mohamed Alshaya, Executive Chairman, M H Alshaya Company of Kuwait, said the key to the success of his organisation was selecting the right talent and ensuring fair deals for all stakeholders.
Sami Bargoum, Managing Director, 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 Managing Director, Agility Logistics, Kuwait.
Rami Makhzoumi, President and Chief Executive Officer, 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 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 urged for the need to create job opportunities for Arab youth - expected to dominate the regional demography by 2030.
Alshaya and Bargoum said that 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."
Innovation, knowledge and relations key to success: Sheikh Nahyan
The ability to innovate, create knowledge and build relations across boundaries will be the keys to overcoming the challenges of the financial crisis, Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research and Chancellor of the Higher Colleges of Technology, said yesterday.
He was addressing the Wharton Global Alumni Forum - organised by the Wharton School of the University of Pennsylvania, the world's first collegiate business school - in Dubai.
The two-day event, which began yesterday at the Grand Hyatt, is being held in the Middle East for the first time.
"The UAE is very enthusiastic about the possibilities of global and regional economic collaboration and looks forward to more economic success in the years ahead," added Sheikh Nahyan, who urged the participants to "ask the right questions and focus on the important issues".
He said that the global economic policies and practices followed in the past required major structural changes for the future.
"These changes must be accompanied by appropriate social policies, a greater emphasis on ethical and transparent transactions and wider individual and institutional participation in all economic activities."
Sheikh Nahyan said the UAE played a key role in regional and global security, trade and investment.
"We are also involved in the economic integration of the GCC countries and a critical component of this includes developing the future leaders needed by our country and the region," he said.
"The UAE Government and national institutions have taken many necessary steps to deal with the current global economic crisis.
"We expect to fare well in the face of these unprecedented challenges and at the same time we are searching for advantages and opportunities in this crisis to emerge stronger."
Sheikh Nahyan said that the UAE was active in promoting socio-economic development in the Middle East.
"We are noted for enlightened social and environmental policies and we are truly a global and tolerant community.
"We emphasise the importance of maintaining peace and stability so that international cooperation can flourish, free trade and investment can thrive and market confidence and economic activity can be encouraged."
School Dean Thomas Roberton said the crisis had helped Wharton to change its point of view on global economic challenges and emerge stronger.
"For every economic downturn there is an upturn, and the current shakeout is an opportunity for innovation and to move to new directions," he added.
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-ever Wharton Global Alumni Forum being held in the Middle East in Dubai.
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, the moderator Professor Witold J Henisz, Associate Professor of Management, The Wharton School, asked the participants on what made their businesses succeed.
Mohamed Alshaya, Executive Chairman, M H Alshaya Company of Kuwait, said the key to the success of his organisation was selecting the right talent and ensuring fair deals for all stakeholders.
Sami Bargoum, Managing Director, 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 Managing Director, Agility Logistics, Kuwait.
Rami Makhzoumi, President and Chief Executive Officer, 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 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 urged for the need to create job opportunities for Arab youth - expected to dominate the regional demography by 2030.
Alshaya and Bargoum said that 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."
Innovation, knowledge and relations key to success: Sheikh Nahyan
The ability to innovate, create knowledge and build relations across boundaries will be the keys to overcoming the challenges of the financial crisis, Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research and Chancellor of the Higher Colleges of Technology, said yesterday.
He was addressing the Wharton Global Alumni Forum - organised by the Wharton School of the University of Pennsylvania, the world's first collegiate business school - in Dubai.
The two-day event, which began yesterday at the Grand Hyatt, is being held in the Middle East for the first time.
"The UAE is very enthusiastic about the possibilities of global and regional economic collaboration and looks forward to more economic success in the years ahead," added Sheikh Nahyan, who urged the participants to "ask the right questions and focus on the important issues".
He said that the global economic policies and practices followed in the past required major structural changes for the future.
"These changes must be accompanied by appropriate social policies, a greater emphasis on ethical and transparent transactions and wider individual and institutional participation in all economic activities."
Sheikh Nahyan said the UAE played a key role in regional and global security, trade and investment.
"We are also involved in the economic integration of the GCC countries and a critical component of this includes developing the future leaders needed by our country and the region," he said.
"The UAE Government and national institutions have taken many necessary steps to deal with the current global economic crisis.
"We expect to fare well in the face of these unprecedented challenges and at the same time we are searching for advantages and opportunities in this crisis to emerge stronger."
Sheikh Nahyan said that the UAE was active in promoting socio-economic development in the Middle East.
"We are noted for enlightened social and environmental policies and we are truly a global and tolerant community.
"We emphasise the importance of maintaining peace and stability so that international cooperation can flourish, free trade and investment can thrive and market confidence and economic activity can be encouraged."
School Dean Thomas Roberton said the crisis had helped Wharton to change its point of view on global economic challenges and emerge stronger.
"For every economic downturn there is an upturn, and the current shakeout is an opportunity for innovation and to move to new directions," he added.
By Staff Writer
© Emirates Business 24/7 2009
