< Previous20 C EO M I D D L E E A S T SEPTEMBER 202 1 FAMILY BUSINESS Professional view. By the fourth generation, less than 5 percent of family-run businesses globally remain operational without professionalising, Kuruvilla says Back then, the company boasted financial resources but lacked effective management. Today, it actually has both. These are essential factors when leading any business, yet success in these areas cannot come to fruition without profes- sional leadership of the highest standard. Professionalising is futureproofing First, let’s be clear about the definition of professional. It means proper govern- ance guidelines, regular board meetings, official hiring policies, KPIs, and a suc- cession plan that offers a vision for the future. It also means family members are treated—and compensated—in the same way as employees hired from outside. Without these components, family companies are presented with a lose-lose situation. If they stick to the family-only approach, their success will diminish with each passing generation. In fact, research from Arthur D. Little shows that by the fourth generation, less than 5 percent of family-run businesses globally remain operational without professionalising. Meanwhile, if they decide to hire from outside, the absence of clear governance and opportunities for progression will ward off the best talent. You can’t pass on passion Of course, running a company profes- sionally is not the only success factor. Why did Amazon and Google initially become successful? It’s not necessarily because the founders were professional, but because they were passionate. Uber is an interesting case; the co-founder of the ride sharing platform, Travis Kalanick, turned out to be a public relations li- ability and was voted off the company board – a sign of professionalism in action. Yet without Kalanick, there would be no Uber. What gets a start-up off the ground is enthusiasm, belief – even obsession— and in this sense, a family set up is often the best way to begin. The problems come later. “IF FAMILY BUSINESSES STICK TO THE FAMILY-ONLY APPROACH, THEIR SUCCESS WILL DIMINISH WITH EACH PASSING GENERATION” SEPTEMBER 202 1 CEO MIDDLE E A ST 21 FAMILY BUSINESS When a mother or father starts a company, it is built on passion, but it is a stretch to assume that their children will be passionate about the same topic. So, while family members can make perfect founders, it is almost inappropriate for the second generation to remain solely in charge. The outsider perspective As a business matures, it needs peo- ple with experience, and for founders to assume that their children are the most knowledgeable people out there, is fundamentally flawed. Yes, a family member can be passionate, but that pas- sion is often better channelled through the role of board member than executive decision-maker. On the board, a family member can still offer valuable input, without responsibility for running the business day to day. That should fall to professional man- agers, and the advantages of hiring ex- ternally are manifold. First, they are free from the complexities of family dynamics. Professionalising in the Middle East, and regions where respect for seniority runs deep, can be particularly tough. Second, an outsider is more likely to prioritise the business over personal performance. For a hired professional, demonstrating the ability to grow a business is valuable CV material and a ticket to career progres- sion. By contrast, family members aren’t going anywhere. The winning formula The prevailing advice is not to eradicate ‘family’ from family business. Quite the opposite: by professionalising, families can protect their reputations and ensure their legacies live on. What’s important is reaching a happy medium, where family and external employees work in harmony for the good of the business. Family busi- ness is the backbone of Middle Eastern economies, and by professionalising, they can make sure it remains that way. “IT IS ALMOST INAPPROPRIATE FOR THE SECOND GENERATION TO REMAIN SOLELY IN CHARGE” Key contributor. Family business is the backbone of Middle Eastern economies Optimism. Fifty nine percent of Middle East family businesses expect to see growth in 2021, according to a PwC survey 89% The percentage of Middle East family businesses which expect revenue growth in 2022, according to PwC22 C EO M I D D L E E A S T SEPTEMBER 202 1 TIME | ROLEX WHY SOME EXPATS IN THE GCC ARE SEEKING CITIZENSHIP BY INVESTMENT CITIZENSHIP BY INVESTMENTSEPTEMBER 202 1 CEO MIDDLE E A ST 23 CITIZENSHIP BY INVESTMENT xpats from emerging markets have found a world of oppor- tunities in the Gulf region but, without a second passport, their long- term prosperity remains unstable. High net worth individuals from economically or politically insecure countries who are working in the region are increasingly seeking citizenship by in- vestments as means to secure their future and their children’s, explains Mohammed Asaria, founder and board member of Range Developments, an investment and hospitality company. “The home country of expats working in the region may be riddled with inse- curities, from Syria to Algeria or Libya. And, at the end of the day, after a life in the Gulf it is very difficult to go back to such a country,” explains Asaria. Although Dubai is now offering a 10- year retirement visa scheme, expats from such countries would feel more secure with a second passport and citizenship in hand. “Say a Syrian marries an Afghani and they want to move out of the GCC, going back to either country is not a vi- able option right now. You need a mutual country which provides them not only High net worth individuals from economically or politically fragile countries need a second passport to secure their future and their children’s BY NABILA RAHAL with the freedom to travel the world but also to retire in,” Asaria says. Retirement aside, a second citizen- ship also facilities career growth for those working from the region. Last minute in- ternational travel for business is difficult for those from countries with passports that limit their ability to travel and hence may hinder their career progress. “Second citizenship is important for expats who work here because we are E “SECOND CITIZENSHIP IS IMPORTANT FOR EXPATS WHO WORK HERE BECAUSE WE ARE PART OF THE COG IN THE GLOBAL ECONOMY” Offering. Grenada is the only CBI country which gives investors access to the USA, the world’s largest economy24 C EO M I D D L E E A S T SEPTEMBER 202 1 part of the cog in the global economy and for an expat to be successful they have to have access to that global reach,” he continues. Second citizenship While a second citizenship is prized among high net worth expats from emerging markets, not everyone is willing to put in the time to get a passport from countries like Canada or the US, which require that people live there for a length of time. “If you’re living in the UAE and making good money in your job, you don’t want to live in Canada for five years and give up the quality of life you have here for a passport,” Asaria says. This is where CBI kicks in for these expats, with a second citizenship from Grenada opening up doors to educating their children in the US. Grenada, located in the Eastern Caribbean, is the only CBI country which gives investors access to the world’s larg- est economy, the US, under the E-2 visa says, Asaria. Because Grenada has been a signatory to the US E-2 treaty since 1983, its citizens can opt to set up their own business in the US and then apply for the E-2 visa. Their children are awarded the same benefits as US citizens in American universities, meaning reduced fees and a higher chance of admissions (since they apply within the domestic pool versus the international one); they are also entitled to free public high school education. Tax considerations Another attractive feature of the E-2 visa versus other US immigration options is that recipients who spend less than 122 days a year in America are not taxed on a worldwide income, “a significant advantage over other options such as the EB-5, which sees holders taxed from the outset,” says Asaria. Among the benefits of the E-2 visa, which Grenadians can obtain in six weeks, is that the investor’s spouse can join and apply to work anywhere in America. An E-2 visa, which can generally be obtained in six weeks, allows an inves- tor to live and do business in the US in exchange for a “substantial” investment (minimum recommended threshold is $150,000 in the US). This investment must be in an enterprise that the investor is able to “develop and direct” and at least 50 percent owned by the investor. Access to the US market aside, citizens of Grenada enjoy travel to over “SAY A SYRIAN MARRIES AN AFGHANI AND THEY WANT TO MOVE OUT OF THE GCC, GOING BACK TO EITHER COUNTRY IS NOT A VIABLE OPTION RIGHT NOW” Expert. Mohammed Asaria, founder and board member of Range Developments CITIZENSHIP BY INVESTMENTSEPTEMBER 202 1 CEO MIDDLE E A ST 25 130 countries — including the UK and many European Union countries such as Germany or France — without the hassle of obtaining a visa prior to departure, another appealing feature for investors from economically or politically unstable countries. A Grenadian citizenship awards its recipients travel to China, and advantage over other Caribbean peers. To apply for CBI in Grenada, indi- viduals need to investment a minimum of $220,000 (plus associated government fees) in a Range development project in the country. The luxurious hotel Six Senses La Sagesse Grenada is Range Development’s latest CBI offering in the country and is government-approved real estate project. The resort is spread over 28 acres and comprises 100 rooms with over 30 swim- ming pools. Each suite has an indoor and outdoor living room and a personal pool. $299,880 Grenada’s citizenship by investment (CBI) Programme for a family of four “YOU DON’T WANT TO LIVE IN CANADA FOR FIVE YEARS AND GIVE UP THE QUALITY OF LIFE YOU HAVE HERE FOR A PASSPORT” Six Senses La Sagesse. Citizenship by investment programmes in Grenada supported by Range Developments are designed to offer investors and their families superior privileges CITIZENSHIP BY INVESTMENT26 C EO M I D D L E E A S T SEPTEMBER 202 1 COVER STORY | EMIRATI WOMENSEPTEMBER 202 1 CEO MIDDLE E A ST 27 EMIRATI WOMEN MEET THE EMIRATI WOMEN DRIVING THE UAE’S ECONOMY IN THE WAKE OF EMIRATI WOMEN’S DAY, CEO MIDDLE EAST SHARES THE STORIES AND ASPIRATIONS OF INSPIRATIONAL EMIRATI WOMEN WHO ARE PAVING THEIR WAY TO SUCCESS IN MALE-DOMINATED SECTORS BY LARA ABOUELKHEIR COVER STORY28 C EO M I D D L E E A S T SEPTEMBER 202 1 COVER STORY | EMIRATI WOMEN mirati women are now col- lectively advancing the UAE’s economy with their expertise, becoming role models to their compa- triots, both female and male. Today’s empowered Emirati women are an embodiment of the UAE’s advancements and its strong stance in regards to women’s rights and gender equality in the workplace. In the past year, the UAE has further strengthened its support for Emirati and non-Emirati women alike. From select- ing the Arab world’s first female astro- naut, legislating that at least one woman is to be present on company boards, to empowering the first Emirati female mechanic, the professional landscape for the UAE’s women is greatly evolving. Marking the sixth anniversary of Emirati Women’s Day on August 28th, this year’s theme was Women: Ambi- tions & Inspiration for Next 50 years, an ode to HH Sheikh Khalifa bin Zayed Al Nahyan, the President of the UAE, announcement of 2021 as the Year of the 50th, recognising the strides, achievements, and the hurdles that Emirati women continue to overcome. Emiratisation’s positive impact for women in the workplace The day highlighted the limitless ambi- tions of Emirati women and their aspi- E 70% The proportion of Emirati women who are university graduates in the UAE Empowerment. The UAE has further strengthened its support for Emirati and non-Emirati women alikeSEPTEMBER 202 1CEO M IDDLE E A ST 29 EMIRATI WOMEN rations for a more prosperous tomor- row, as many continue to thrive, holding leading positions across the nation in traditionally male-dominated sectors. Thriving in male-dominated fields, their efforts to bring about balance in the workplace, and more broadly throughout society, are ongoing. CEO Middle East speaks to inspi- rational Emirati women from differing sectors to hear their stories of success and failure, what Emirati Women’s Day means to them, and their words of wisdom. Industrial sector Dr Dalya Al Muthanna is president of General Electric (GE) in the UAE and the global chief of strategy and opera- tions for GE International Markets. Al Muthanna partners with the GE businesses in the industrial verticals of energy, aviation and healthcare to facilitate the execution of the market business strategy in the UAE. She also holds a global role, leading the strate- gic direction of the GE International Markets organisation, which enables GE to operate within selected strategic and emerging markets. Reflecting on this year’s theme, Al Muthanna says: “The theme emphasises the role women will continue to play in the progress, growth and prosperity of the UAE. It inspires all generations of Emirati women to contribute to the work of nation building – now and in the fu- ture – to assume leadership positions.” Al Muthanna also gives particular interest to promoting diversity, de- veloping leadership capabilities and local talent, as well as driving innova- tion to advance technological growth in the region. “The UAE continues its steadfast efforts to empower women at various levels, enrich their knowledge and quali- fications, and promote gender equality. Women play an important role in nur- turing future generations and preparing them for the skills of the future. “This year’s celebrations coincide with the ‘Year of the 50th’ and provides a valuable opportunity for Emirati women to follow in the footsteps of the founders of the nation to further strengthen the reputation of the UAE globally,” she adds. Maritime sector Abeer Alshaali is the deputy manag- ing director at UAE-based boat and yacht manufacturer Gulf Craft, and is responsible for overseeing the expan- sion of the company’s network in the US, Europe, and other key markets. Raised and educated in the USA, Alshaali spent her summers vacation- ing in the UAE, visiting the Gulf Craft factory and showrooms, and in turn forming a commitment to the company from a young age. “Being among the few Emirati wom- en in the yachting industry, my eyes are set on further establishing Gulf Craft’s global footprint that proudly represents the UAE and to inspire a new genera- tion of talented youth. It is important to celebrate how far we have come, but it is equally important to look at what remains to be done in the road ahead.” After taking time off to focus on personal commitments, she joined the Gulf Craft organisation and worked in the executive office, handling the management of the company alongside her father. She has since successfully overseen the implementation of new processes and has been instrumental in enhancing the efficiency and structure of the company. Discussing her professional achieve- ments in the industry so far, Alshaali “IT IS IMPORTANT TO CELEBRATE HOW FAR WE HAVE COME, BUT IT IS EQUALLY IMPORTANT TO LOOK AT WHAT REMAINS TO BE DONE IN THE ROAD AHEAD” Inspiration. Dr Dalya Al Muthanna is president of General Electric (GE) in the UAE and the global chief of strategy and operations for GE International Markets Achievement. Abeer Alshaali is the deputy managing director at UAE-based boat and yacht manufacturer Gulf CraftNext >