< Previous28 CEO MIDDLE EAST 16-30 NOVEMBER 2023 n the annals of human his- tory, there have been pivotal moments that reshaped our world—moments when innovation and progress converged to forge new eras. We stand on the precipice of such a moment today: the Fifth Industrial Revolution, a convergence of technolo- gies that promises not only to revolu- tionise industries but also to extend human life. The question on the minds of many is, how close are we to realis- ing this ambitious vision? The Fourth Industrial Revolution’s legacy Before delving into the prospects of the Fifth Industrial Revolution, let’s reflect on the legacy of its predeces- sor. The Fourth Industrial Revolution, characterised by the fusion of digital, physical, and biological systems, has already transformed the way we live and work. It brought us artificial intel- ligence (AI), blockchain, the Internet of Things (IoT), and more. However, it also raised concerns about auto- mation’s impact on employment and privacy, leaving us with a mixed legacy. The promise of the Fifth Industrial Revolution The Fifth Industrial Revolution represents a quantum leap forward. At its core, it combines AI, advanced biotechnology, nanotechnology, and quantum computing to usher in a new era of possibilities. One of its most compelling promises is the extension of human life. With breakthroughs in genetic engineering, regenerative medicine, and AI-driven healthcare, we are inching closer to not just treating diseases but preventing them altogether. It’s a vision where aging is not an inevitability, but a challenge to overcome. The role of AI in life extension AI is the linchpin of the Fifth Indus- trial Revolution’s potential to extend human life. We all know AI’s capa- HOW CLOSE IS HUMANITY TO USHERING IN THE 5TH INDUSTRIAL REVOLUTION AND EXTENDING LIFE? In the pursuit of extending human life, one essential factor to consider is the utilisation of advanced technology to optimise decision- making processes BY DMITRY KAMINSKIY, GENERAL PARTNER, DEEP KNOWLEDGE GROUP Revolutionry. Kaminskiy discusses The Fifth Industrial Revolution. HEALTHCARE I16-30 NOVEMBER 2023 CEO MIDDLE EAST 29 HEALTHCARE “UNWAVERING COMMITMENT TO INNOVATION, ETHICS AND COLLABORATION.” Break through. Ageing is not an inevitability but a challenge to overcome. bilities in processing vast amounts of data, identifying patterns, and making predictions with remarkable accuracy. In healthcare, this translates into personalised treatments, early disease detection, and the ability to decipher the complexities of aging. AI-driven research is unlocking new mecha- nisms and pathways toward extended longevity, and it’s only a matter of time before we see groundbreaking inter- ventions. Challenges and controversies As we stand at this crossroads of pro- gress, it’s crucial to acknowledge the challenges and controversies that ac- company such transformative endeav- ours. Ethical concerns about genetic editing, privacy issues in healthcare data, and the socioeconomic implica- tions of life extension are all topics that require thoughtful consideration. The Fifth Industrial Revolution de- mands a balance between innovation and responsibility. The bridge between dreams and reality The Fifth Industrial Revolution and the quest for life extension were once the stuff of science fiction. They were the dreams of visionaries who dared to imagine a world where technology transcends the boundaries of human limitation. Today, these dreams are becoming tangible realities, driven by the relentless pursuit of knowledge and innovation. The bridge between these dreams and reality is built by pioneers in AI, biotechnology, and countless other fields. It’s a bridge constructed by the daring spirit of exploration, pushing the envelope of what is pos- sible. The road ahead So how close is humanity to ushering in the Fifth Industrial Revolution and extending life? The answer lies in our unwavering commitment to innova- tion, ethics, and collaboration. We our collective intelligence. The future is uncertain, but one thing is clear: humanity is on the brink of a revolu- tion that will leave an indelible mark on our history. In the pursuit of extending human life, one essential factor to consider is the utilisation of advanced tech- nology to optimise decision-making processes. As we venture into this uncharted territory, employing AI and data-driven insights to map and optimise decisions related to technol- ogy development, investment strate- gies, and ethical considerations is not just advantageous; it’s imperative. Only through the intelligent use of technology can we hope to strike a balance between the extraordinary op- portunities these advancements offer and the potential risks they pose. The path forward requires a harmonious fusion of human intellect and artificial intelligence, shaping a future that har- nesses innovation and preserves our collective well-being. are making significant strides, but the path ahead is complex and fraught with challenges. It requires interdis- ciplinary cooperation, ethical frame- works, and a shared vision for a better future. As we navigate this transforma- tive journey, we must remember that the goal is not just extending life but enhancing its quality and purpose. The Fifth Industrial Revolution invites us to redefine what it means to be human—to transcend the boundaries of biology and harness the potential of 30 CEO MIDDLE EAST 16-30 NOVEMBER 2023 he temperatures might be starting to cool, but as we head into Q4, the hospitality sector in the region is starting to heat up ahead of the upcoming festive pe- riod. A journey that starts long before the first twinkling lights appear, capi- talising on the cheer that the period brings, is something that’s planned long in advance, especially in a market that’s bursting full of options. By now, you’ll have no doubt seen the festive brochures offering a rich va- THE BUSINESS OF THE FESTIVE SEASON December’s festivities do give the hospitality industry an opportunity to end the year on a real high BY NAIM MAADAD, FOUNDER OF GATES HOSPITALITY Festive joy. The hospitality industry capitalises on festive cheer. HOSPITALITY T16-30 NOVEMBER 2023 CEO MIDDLE EAST 31 HOSPITALITY “THE HOSPITALITY SECTOR IS HEATING UP IN THE RUN UP TO THE FESTIVE PERIOD.” On a high note. Q4 offers a chance for the hospitality industry to end the year on a high. riety of options across the city starting to appear, many of which will already be fully booked by the first week in No- vember as revellers rush to secure their perfect venues for Christmas and New Year’s Eve. As always, the venues that offer reputation, value, and consist- ency across the year will always prove the most popular. While the ‘year-round’ nature of the GCC means that we aren’t overly reliant on certain holiday periods to ensure we meet revenue targets, De- cember’s festivities do give the indus- try an opportunity to end the year on a real high, and in New Year’s Eve’s case, start the new one with a bang. With a record number of tourists visiting the UAE in Q4 last year and with hotel oc- cupancy expected at over 90 percent, the season is one that continues to bring the industry joy. A season for giving, the 29th edi- tion of Dubai Shopping Festival also provides the perfect platform for the retail industry to capitalise on those looking to purchase something special for others, whilst Tree Lighting cer- emonies and pop-up Christmas Mar- kets and Winter Gardens around the city give businesses another opportu- nity to make the most of both residents and tourists’ expenditure. With so many options, it should be no surprise that consumer spending in the UAE increased by 19 percent in 2022 as the region firmly cements itself as one of the shopping capitals of the world. As restauranteurs, we are blessed that our venues too are always in high demand, with a significant portion of business stemming from returning families and loyal guests from previous years, always a good sign. The month of December can see an increase in turnover of 25 percent when compared to the business volumes of Octo- ber and November, propelled by the convergence of holidays – including UAE National Weekend - the influx of travellers seeking experiential dining, family reunions, and the allure of out- its home. To put it simply, to be able to share in those moments is the reason why we work in hospitality. The extravagance of the New Year also brings significant business to the industry, with AED20,000 per night packages of the likes of the Burj Al Arab quickly snapped up, whilst it’s not unusual for restaurants around the Burj Khalifa fireworks to charge AED4,000 a head. A night full of glitz, glamour and cocktail dresses, although we embrace the spirit of the evening, we also recognise that our venues cater for a different clientele, one that is looking for a more laid-back end to the year. As is always the case in Dubai, there are options for all. For us and our positioning, community will always be key, no more so than during this special period. That too extends to our colleagues. Whilst the season may be busy and the hours long, in the hospitality industry we must ensure that they have the opportunity for festive cheer too. Whether that’s through flexible scheduling or additional recognition, the spirit of the season is about giving, and there is no better gift than the gift of inclusion and appreciation. We ask all our guests, who we are to welcome over the period, to embrace that too. door settings amidst the mild winter. And it’s not just family and friends who use the season for moments of connection, but also colleagues. Lead- ing up to Christmas, the two weeks preceding the holiday see a significant uptick in corporate bookings too, which account for up to 60 percent of our revenue as businesses use the magic of the season to bring people of various backgrounds together to celebrate in unity. So, whilst the financial side is, of course, important, it’s why Christmas is one of my favourite periods in the UAE. Here, it signifies more than just a holiday. It’s a time when our venues come alive with the richness of traditions from around the world, a celebration that transcends bor- ders and traditions and embraces the diverse community that calls the UAE 32 CEO MIDDLE EAST 16-30 NOVEMBER 2023 organisation that aims to be a market leader. Instead, company culture is in- creasingly becoming a differentiator. More than three-quarters of prospec- tive employees (77 percent) would take a company’s culture into account before applying — and more than one in three (35 percent) would turn down an oth- erwise perfect job offer if the organisa- tional culture clashed with their values. It has never been more important for organisations to foster a culture that’s conducive to the modern employee. Fortunately, the strategy for creating precisely this is one that is tried and tested, albeit found at a place in the enterprise few business leaders would think to look — their technology stack. Observability: An Answer to the Corporate Culture Conundrum As a market that’s projected to be worth of over $2 billion by 2026, observability provides a solution that seamlessly integrates and encompasses visibility across datasets, networks, and user experiences. It’s a process that embraces machine learning (ML) and best data practices to analyse massive amounts of information across an IT environment. Observability tools can pinpoint the root causes of outages or performance issues and deliver tailored insights. For these reasons, the poten- tial benefits of observability, both to your digital ecosystem and your bottom line, are clear. But the principles of observability can do more than give your digital eco- system the modern refresh it needs — they can do the same for your company culture, too. Observability as culture is all about integrating transparency, collaboration, and continuous improve- ments across every department, team, and level of your organisation. By embracing these pillars as prin- ciples to build your culture on, as well as technological troubleshooting tools, you can cultivate a more robust, more innovative, more strategic organisation THE ROLE OF OBSERVABILITY IN THE WAR FOR TALENT Applying the principles of observability – transparency, collaboration and continuous improvement – to people management can give Middle East enterprises a much-needed edge in the ongoing struggle to attract and retain top talent BY CULLEN CHILDRESS, SENIOR VICE PRESIDENT, PRODUCT AT SOLARWINDS People management. Childress discusses the ongoing struggle to attract and maintain talent. ECONOMY T he Middle East is facing a tal- ent crunch. A study by Zurich found that the UAE and KSA are grappling with a significant talent shortage, at approximately 24 percent and 30 percent, respectively. Simulta- neously, record numbers of employees are considering changing their jobs in the coming months. Interestingly, for many of these employees, job satisfac- tion is influenced by factors that extend well beyond just financial compensa- tion. In today’s global economy, fair pay is the baseline — expected of any 16-30 NOVEMBER 2023 CEO MIDDLE EAST 33 ECONOMY Clear view. Embracing transparency is where you can clinch an easy win. that’s better prepared for future chal- lenges. Transparency Observability is, essentially, all about transparency. By providing a single pane of glass through which you can see your entire IT environment, observability helps organisations address and prevent issues before they arise. The same can be done with a company’s culture: promoting open communication, giving all teams a greater view into the work and priorities of other departments, and being purposeful and direct about the company’s values and goals. If getting buy-in in other areas of cultural development proves challenging, embracing transparency is where you can clinch an early, easy win. It costs noth- ing to be transparent, yet the ROI can be massive. A company culture under- pinned by transparency has been proven to deliver high-value benefits, including establishing trust, boosting employee engagement, morale, and retention, improving employee stress levels and productivity, and having a direct impact on your business’s bottom line. On the other hand, without trans- parency, even the most thoughtfully planned initiatives to attract, retain, or just communicate effectively with em- ployees can seem like a confusing — or empty — gesture. Collaboration Observability breaks down silos and makes it easier to collaborate across different clouds, databases, and dashboards seamlessly. Leaders should aim to do the same for their teams by fostering greater collaboration across the entire organisation. A lack of effective collaboration and communication is the top cause of workplace failures, according to 86 percent of employees and executives. Just as observability is a step up from monitoring, collaboration is the output that evolves from transparent commu- nication. up for the creative, innovative, and forward-looking parts of their jobs. Continuous Improvements Keep in mind: being transparent doesn’t just apply to the things you’re doing well. Renowned leadership expert Marshall Goldsmith once put it best: “What got you here, won’t get you there.” Being afraid of change has little place in today’s business landscape, where agility and flexibility are increas- ingly table stakes. If your organisation is competitive and has longevity, it stands to reason that the challenges it faces tomorrow may not be the ones it met yesterday. As the company grows, evolves, and shifts, make sure that the culture does as well. Otherwise, you may look around one day and realise that the business and its culture have fallen completely out of sync with one an- other — and nobody, least of all your teams, wants to start from square one. Unlike technological observabil- ity solutions, no tool can monitor for cultural issues at the root cause and de- liver tailored insights for remediation. And, unlike your beleaguered iPhone, your employees won’t accept “remind me to make these updates tomorrow” as an answer indefinitely. The best way to know what im- provements to make is simple: ask! With a diverse, distributed, and dis- tanced workforce, the best practice for building company culture is to include your people in the process. Make a point of not just hearing but taking their feedback. The most valuable capital of any or- ganisation is its people. Your company culture should be shaped by and reflec- tive of them, not vice versa. Become a leader who embraces observability in both your tech stacks and among your teams. You’ll gain more than just a clear view across your organisation — you’ll gain a clearer understanding of the road to success ahead. 77% Of employees considert company culture before applying. Your head of accounting probably knows precisely where each decimal point needs to be within a spreadsheet and why it needs to be there. Can they say the same about the IT team’s technology stack or the sales team’s go-to-market plan? With a culture underpinned by collaboration, employ- ees won’t just learn how to get along — they’ll understand why each cog in your machine functions the way it does, as well as the effect of their work on their fellow employees, the end product, and the business as a whole. Collaboration doesn’t need to apply only to interpersonal or interde- partmental work, either. For instance, learning to collaborate with machine learning tools is one way to keep em- ployees engaged and productive. Far from replacing your employees, solu- tions like AIOps can support employees by delivering insights, automating mundane tasks, and reducing the risk of human error — all while freeing them 34 CEO MIDDLE EAST 16-30 NOVEMBER 2023 traditional models, Al Gurg shares his battle-tested strategies for honouring the founder’s vision while reinventing for the future. 1. As the third-generation leader of one of the UAE’s oldest family businesses, what do you attribute your continued success to? How do you ensure the core values and vision that helped establish the Group are sustained across genera- tions? As the third-generation leader of our family enterprises, I attribute our sustained success to an unwavering commitment to continuous learning, strategic innovation, and the preserva- tion of our foundational values. Being part of a family business that has thrived for over six decades offers a unique advantage: it allows each gen- eration to seamlessly assimilate, evolve, and apply valuable insights to our growth strategies, adeptly navigating challenges and ensuring the longevity of our operations. At ESAG, our legacy is deeply intertwined with the core ethos and objectives of our business. This legacy encompasses both tangible assets, such as our financial stability, and intan- gible assets, including the social and emotional capital we have amassed and contributed to the UAE’s development. Our corporate values are not mere prin- ciples; they are a living testament to our enduring commitment to responsi- ble and impactful business practices. My late grandfather, the founder of our Group, was a visionary who consistently challenged the status quo, relentlessly pursuing excellence in both business and philanthropy. His unwavering dedication, tenacity, and integrity have been instrumental lessons for me. He instilled in us the significance of diligence, consistency, and ethical conduct. In honor of his legacy, our objective is to fortify and expand upon the robust foundation he established. We strive to consolidate our operations while mak- THE SECRET TO MULTI-GENERATIONAL SUCCESS How one of the UAE’s oldest family businesses survives and thrives over six generations of disruptive change BY TALA MICHEL ISSA Secrets to success. Al Gurg discusses his battle-tested strategies to success. ECONOMY F rom humble beginnings in the 1940s to a modern business powerhouse, the Easa Saleh Al Gurg Group has evolved alongside the UAE. In an exclusive interview with CEO Middle East, current CEO Easa Al Gurg lifts the lid on the family enterprise’s tightly held secrets to enduring success across a turbulent era of economic ups and downs. With disruptive technolo- gies and consumer trends challenging 16-30 NOVEMBER 2023 CEO MIDDLE EAST 35 ECONOMY “ESAG2025 SERVES AS A GUIDING FRAMEWORK OF EMPOWERMENT, INTEGRITY AND DIVERSITY” Ethical practices. ESAG is committed to perserving their legacy for future generations. ing strategic investments in our areas of expertise. Our commitment to ethical business practices ensures that we not only preserve but also enhance our legacy for future generations, always staying true to the values and vision that have been the bedrock of our Group’s success. 2. Coordinating operations across real estate, and retail – among many oth- ers – must certainly present leadership challenges. How do you structure over- sight and ensure seamless collaboration between business units? The most important task for a leader is to instil a common vision across the organisation. This crucial step pre- sents unique challenges, but also many opportunities. To effectively navigate this complexity, we prioritise instill- ing a unified vision across the entire organisation. Our strategic blue- print, ESAG2025, serves as a guiding framework, anchored in principles of empowerment, integrity, and diversity. We emphasise fostering intrapreneur- ship and ensuring agility in our internal processes. Our diverse business portfolio de- mands a continuous focus on evolution and adaptability. We strive to create a roadmap that facilitates our ability to adapt swiftly and offer our customers enhanced choices. An important aspect in ensur- ing seamless collaboration between our business units is our dedicated and strong leadership team. We have established a structure where seasoned leaders oversee each entity and sector we operate in. These leaders are deeply committed to our core values and bring specialised expertise, ensuring that each business unit is aligned with our overall vision while also being respon- sive to the unique demands of their respective sectors. By cultivating an ecosystem that values learning, collaboration, and open communication, we lay the foundation for progress and prosperity. The syner- reduction of carbon emissions. Our investments in a sustainable economy are channeled through two primary pathways: collaboration via our joint ventures with Siemens Industrial and Siemens Energy, and initiatives within our own Group operations. We have actively engaged in Energy Services Company (ESCO) projects, empowering numerous clients to elevate and refine their operations in line with contemporary sustainability standards. This includes implementing energy-efficient solutions and process improvements that seamlessly integrate environmentally conscious measures into daily operations. Our efforts extend to offering carbon-neutral products via our brand partners, such as Interface, which provides eco-conscious carpets for offices, and PaperOne Digital, a certi- fied Carbon Neutral company powered entirely by renewable energy. We’ve also increased the use of steel scrap in our steel production and enhanced our facilities, ensuring our foundry is both energy-efficient and sustain- able. Across the Group, our companies implement an electronic waste recy- cling program and significantly reduce single-use plastic water bottle usage in our workplaces. gies created by our leadership team across various units ensure that our operations are harmonised, contribut- ing collectively to the achievement of our strategic goals. 3. As we look ahead to COP28 in the UAE, sustainability is top of mind for many businesses and investors. How has the Group strengthened its ESG strat- egy and initiatives in recent years? At ESAG, we are dedicated to a holistic approach to corporate sustainability, consistently upholding responsible practices that safeguard both individu- als and the environment. Our com- mitment is evident in the substantial strides we’ve taken on our path to sus- tainability, notably through investments in eco-friendly infrastructure and the 36 CEO MIDDLE EAST 16-30 NOVEMBER 2023 n the GCC, the concept of family offices has gained sig- nificant momentum in recent years with nearly $2 trillion projected to move from the current generation to the next in the next decade, and family offices are playing a crucial role in or- ganising this significant wealth transfer amongst family stakeholders. As the region’s wealth continues to grow due to a demand for a corporate- like structure from wealthy families to manage their growing wealth and assets, wealthy families in the GCC have sought to establish family offices to manage their assets, secure their finan- cial legacies, and ensure the prosperity of future generations. However, the journey of building family offices in the GCC is not without its challenges. Succession Planning and Proper Structuring One of the primary challenges fac- ing GCC family offices is ensuring the smooth transition of wealth and respon- sibilities between generations. Many family businesses have grown rapidly, amassing substantial assets, and ensur- ing the seamless transfer of wealth is a daunting task. It is vital for family of- fices to establish clear succession plans and governance structures to preserve the family’s wealth and values. Failing to do so can lead to fragmentation and discord, putting the family’s financial well-being at risk. Cohesion and Unity Family offices are established to preserve the family’s wealth and legacy. However, maintaining family unity is often easier said than done. Sibling rivalries, disa- greements, and generational gaps can lead to divisions within the family, which can extend to the family office itself. To build family offices that last, it’s essential to implement strategies for fostering co- hesion, promoting open communication, and managing conflicts constructively. A united family office is more likely to suc- ceed in its mission. BUILDING FAMILY OFFICES TO LAST IN THE GCC - NAVIGATING KEY CHALLENGES The journey of family wealth has not been without challenges, writes Tony Hallside, CEO, STP Partners Family ties. Family offices are on the rise to secure generational wealth. ECONOMY I16-30 NOVEMBER 2023 CEO MIDDLE EAST 37 ECONOMY “$2 TRILLION PROJECTED TO MOVE FROM THE CURRENT GENERATION TO THE NEXT OVER THE NEXT DECADE.” Generations. The region’s wealth continues to grow and passed down through generational ties. Outsourcing Partnerships Family offices in the GCC often rely on external partners, such as structur- ing consultants and prime brokers, to provide essential services. Selecting the right partners is crucial for the long- term success of the family office. The challenge lies in finding partners who align with the family’s values, goals, and long-term vision. Moreover, these partners should offer the expertise and support needed to navigate the complexities of managing substantial wealth. Ill-advised partnerships can lead to financial, operational, and reputational risks. Safety of Assets Ensuring the safety and security of the family’s assets is paramount. This extends beyond traditional asset man- agement to include the custody and safekeeping of investments. Choos- ing the right providers to warehouse family assets is a delicate task. Safety, transparency, and reliability are non- negotiable. Family offices must have a robust due diligence process in place to evaluate potential providers thoroughly. The loss or mishandling of assets can have devastating consequences for the family’s wealth and legacy. Technology and Flexible Solutions The GCC is a diverse region with a wide range of family structures and financial needs. A one-size-fits-all ap- proach does not suffice when it comes to technology and service offerings. Family offices must adapt to the unique requirements of each family they serve. Flexibility in terms of technology, investment strategies, and service plat- forms is essential for addressing these individual needs. By offering tailored solutions, family offices can cater to a broader clientele and enhance their long-term sustainability. In addressing these five pain points, family offices in the GCC can increase their chances of building institutions office’s mission is to ensure the preser- vation of the family’s intergenerational legacy. In the GCC, family values are deeply ingrained in the fabric of society. These values are more than just tradi- tions; they serve as a guiding compass for family offices. The stewardship of patient capital, where investments are made with a view to benefiting not only the current generation but also those that follow, is a principle deeply rooted in these values. The complexity of diverse family needs must be embraced, and it is the family’s values that play a significant role in shaping the family office’s investment philosophy. Values guide not only where investments are made but also how they are made. Building family offices to last in the GCC requires a combination of careful planning, effective commu- nication, and strategic partnerships. Succession planning, cohesion, out- sourcing, asset safety, and techno- logical flexibility are crucial elements to address to ensure the long-term viability of family offices in the region. By navigating these challenges with foresight and adaptability, GCC family offices can protect their wealth and legacy for generations to come. that stand the test of time. Each family office’s journey is unique and each has its own way of defining success that aligns with its values. Success in the world of family of- fices is not merely about generating substantial returns on investments. It goes beyond financial performance. To truly build family offices that last, it’s essential to align investment decisions with the overarching goals of the family. Often, family offices struggle due to a lack of a comprehensive investment policy statement. Without this guiding document, they risk losing sight of their core purpose: managing shared family wealth effectively. At its heart, a family Next >