Entrepreneurial Leadership and Change in Dubai

Before this trip, I would have told you that business culture in the Middle East was rigid and traditional, with little room for outliers or new ways of thinking. True, systems of government that dominated Arab life for several centuries have left a permanent mark on many Arab societies. It is also true that authority is still concentrated in the chief executive, and family relations are very important, with businesses often promoting nepotism. These family owned businesses that dominate the region conduct themselves with such risk-aversion that the signs of suppressed progress are evident. Let’s face it, we saw firsthand how much the UAE itself focuses on huge salary differentials and emphasizes status symbols, signifying an emerging class system throughout the region. But maybe there is hope. Dubai’s newfound entrepreneurial interests could eventually pull the rest of the country, and the region, into the modern business world. Now, we’re talking a few centuries more, perhaps. But as this new city matures and its reputation advances, people may begin to see firsthand that change is possible in the Middle East. Since family businesses control such a large portion of generated wealth in the region, the growth here will depend on their adoption of competitive modern business practices. These advancements will hinge on the new generation of leaders coming into power and changing the way the Middle East views itself and the rest of the world.

While there are many religious and societal rules that leaders must follow in professional settings, incoming younger generations continue to bring their individualism to the table. We saw examples of this with almost every business we visited. Starting with the more traditional family businesses we met with, Sultan Olayan from The Olayan Group was an outstanding example of professionalization. This meant reflecting a competitive corporate structure similar of non-family businesses while also maintaining the quality of family relationships in order to sustain the success of the group. Similarly, Antoine Choueiri from the Choueiri Group is poised to begin his professional career to gain experience before joining his father to ensure he can bring more to the business than just the family name. And Rohan Mehta, though taking a slightly different path from his father at Petrochem, continues to signal an ushering in of new talent that will soon be running the show.

In a different approach, an unprecedented entrepreneurial spirit is emerging to give these family businesses a little extra push, and we met with some exciting examples of this progress. A trend that is worth noting here is the ambitious development projects on the Gulf. Though uncharacteristic of traditional deal-making here, it brings up an interesting concept. With the Middle East trying to promote tourism as a major revenue generating stream, leaders must put risk-aversion aside and build up attractions as quickly as possible. In comes Mohammed Al-Mubarak from Aldar Properties. He is charismatically leading his firm to bigger and better opportunities with his dedication to growth in Abu Dhabi. Another important example is Ronaldo Mouchawar from Souq.com, who raised the largest amount of money of any internet-based business in the Middle East. An especially difficult feat that many other startups are facing due to the o investment hesitations of family offices. And finally, Nadim Jaroudi from the 1776 Dubai Incubator, who is fostering innovative companies dedicated to creating change in the world. All successful businesses in their own right who are working to change the face of business in the Middle East.

But one of the most important emerging trends to mention, (and most importantly to myself), is this region is also starting to see better changes for women in the workforce. Anisha Ramakrishnan and her father from Transworld were inspiring to learn from. Not only will Anisha be in a prominent role within her family’s business but will be leading in a field that not many women work in globally, regardless of the region. The company’s emphasis on experienced leadership and employee commitment will hopefully give way to similar moves throughout the industry and the region.

Traditionally, leaders in the Middle East respect Islamic tradition and resist sudden change. While these things I found to be true during my time in Dubai, I was surprised and excited for a new age of changes being made in business to comply with entrepreneurship attitudes and a younger, more informed generation entering the workforce. Though tradition still reigns here there is beginning to be an acceptance of new ideas that was not possible not too long ago. A sudden call for startups in the region has facilitated interest in endeavors outside of the family businesses. And even family businesses are starting to realize it may be time for them to emerge onto the modern business stage. I look forward to seeing where the region will go from here and what Dubai has to offer next. I am grateful to Northeastern for providing me this opportunity to see a region I may not have been able to otherwise, and for continuing to education me and change my own prospective on the world.