< PreviousTECHNOLOGY 10 CEO MIDDLE EAST MAY 2024 illful ignorance is dangerous- ly widespread. It’s when we hear but don’t listen; when we look but don’t see. It’s when we know there’s a high probability that a fact exists but refuse to let that knowl- edge affect or change our behaviour. While in most cases we may not be legally liable, there is another aspect we should consider here – that of moral liability. Because there is no avoiding the fact that our feigned ignorance of these and other crucial issues isn’t just kicking the can down the road for future generations to solve, it’s also making the problems more entrenched and infinitely more difficult to resolve. We know this and yet we con- sciously choose not to act. We choose to maintain the status quo because it’s easier. Trying to institute change and positively impact the issues at hand re- Marilyn Pinto, founder at KFI GLOBAL, unpacks the consequences of willful ignorance FROM DENIAL TO DISASTER The richest 1 percent emit the same amount of carbon as the poorest two-thirds of humanity W OUTLOOK From our overconsumption of resources that steadily fuel the climate crisis and our penchant for overspend- ing that inflames the debt crisis, to our numbness to the social justice issues that deeply impact the social strife we are witness to – we are all guilty.OUTLOOK MAY 2024 CEO MIDDLE EAST 11 quires us to climb down from our very tall, very comfortable, ivory towers. Take the issue of overconsump- tion of resources. The richest 1 percent emit the same amount of carbon as the poorest two-thirds of humanity. Yet we know it’s this two-thirds of humanity that will pay the steepest price for this overconsumption. We know that it’s this two-thirds of humanity that will be most impacted by the effects of climate change that will follow these rising emissions. And we know that not enough is being done to mitigate the cause of these rising emissions and the devastating impact it will have on huge swathes of humanity. Still we wait. Or take the issue of the alarming rise in teen depression and anxiety in recent times. In his book The Anxious Generation – How the Great Rewiring of Childhood is causing an epidemic of Men- tal Illness, author Jonathan Haidt details the adverse impact that social media has on children and teenagers. Again, none of this is breaking news, we’ve known this for years now. What’s shocking is that not much is being done to stem this tide, given how straightforward the solutions are. When these social media companies were faced with growing evidence that their products were harm- ing young people, they retaliate with denial, obfuscation, and massive PR campaigns. The harmful effects of social media continue to irreparably damage our kids and teens. Still we wait. The issue of rising economic inequality is another thorny issue that’s becoming harder to ignore. In his seminal book, The Price of Inequal- ity, author and Nobel Prize winning economist Joseph Stiglitz explains why we are experiencing destructively high levels of inequality. The causes are multi-factorial and complex, they are also related and reinforce each other. The effects are far-reaching and detri- mental to societies worldwide. While it’s well known that the economic impact of this inequality stifles growth, the social impact can be less obvious but equally, if not more devastating as it erodes trust and cohesion, leading to increased social tensions and unrest that damages the very fabric of society. Still we wait. We hope that these and other seem- ingly intractable issues will magically resolve themselves. We convince our- selves that there are people who are bet- ter equipped to tackle these problems. We determinedly put these matters out of our mind telling ourselves that we don’t really understand the intricacies to come up with effective solutions and so we willfully ignore the problems. After all, we aren’t personally af- fected all that much right now. Our wealth and privilege cushion us from the worst outcomes. We’re secure in the knowledge that we could buy our way out of the problem, should we ever be directly confronted. Yet somewhere in the deep recesses of our mind, we must know. We must comprehend the imminent danger and the urgently action that’s needed from each of us. We must realise that the problems will come home to roost and when they do, we will wish we had acted sooner. We can’t afford to continue down this road of willful ig- norance any longer. Our moral obliga- tion must not let us, because the future of humanity hangs in the balance. “WE CAN’T AFFORD TO CONTINUE DOWN THIS ROAD OF WILLFUL IGNORANCE ANY LONGER. OUR MORAL OBLIGATION MUST NOT LET US, BECAUSE THE FUTURE OF HUMANITY HANGS IN THE BALANCE” We are all guilty from overconsumption of resources to our numbness to the issues of social justice, Pinto says There is an alarming rise in teen depression and anxiety but not much is being done to stem this tideTECHNOLOGY 12 CEO MIDDLE EAST MAY 2024 orporate governance is becoming an increasingly significant consideration within family businesses. It plays a crucial role in helping family-owned enterprises adapt to swift market changes while upholding the family’s core values and interests. Family offices often provide several advantages, such as safeguarding fam- ily interests, when the lines between personal and professional matters frequently blur. Well-structured corporate governance helps to separate family from business, protecting the family’s resources and promoting unity. The adoption of solid corporate govern- ance measures also leads to the profes- sionalisation of management, which minimises potential conflicts related to bias or favouritism by ensuring clarity in roles, responsibilities, and decision-making. Importantly, a transparent ap- proach to governance can also increase a family business’s appeal among investors, lenders, and other stakeholders – facilitating access to capital and enabling the company to pursue growth opportunities and operational expansion. Additionally, a comprehensive cor- porate governance strategy will include risk management strategies that identify, assess, and mitigate potential risks to the business. By addressing risks proactively, family companies can protect their assets, reputation, and future prosperity. Compliance with legal and regula- tory requirements is also essential for family companies to operate ethically and avoid any legal liabilities. A robust corporate governance framework ensures adherence to relevant laws and regulations, reducing the risk of fines, penalties, or legal disputes. Succession planning can be one of the thorniest issues faced by family businesses and a key sustainability enabler. Corporate governance plays a vital role in facilitating smooth succession planning. Clearly defined processes for leadership transition, in- cluding nurturing the next generation of leaders, help ensure continuity and stability during times of change. Exit strategies are also crucial as they detail how family members or other stakeholders can leave the busi- ness in a way that maximises value and minimises disruption. Properly ex- ecuted exit strategies facilitate orderly transitions, protect family wealth, and lay foundations for ongoing growth. In summary, corporate govern- ance is essential for family companies to navigate the complexities of their business while preserving integral values and interests. By implementing transparent, accountable, and strategic governance practices, family compa- nies can achieve sustainable growth, protect their assets, and maintain their legacy across generations. Corporate governance is the key to family business longevity BRIDGING GENERATIONS Compliance with legal and regulatory requirements is essential for family companies to operate ethically and avoid any legal liabilities, says Martinez, Maakaron and Khasawneh Corporate governance is essential for family companies to navigate the complexities of their business while preserving integral values and interests BY SARAH KHASAWNEH, ASSOCIATE, CROWELL & MORING DOHA. EDITED BY CATHERINE MARTINEZ, COUNSEL AND CHARBEL MAAKARON, MANAGING PARTNER, CROWELL & MORING DOHA C GOVERNANCE Family businesses also favour long-term sustainability by instilling transparency, accountability, and stra- tegic planning. This ensures continuity across generations and enhances the company’s resilience to market fluctua- tions and internal challenges. The biggest interviews The best commentary Subscriber exclusives Dedicated newsletters Join the community Unlimited access toTECHNOLOGY 14 CEO MIDDLE EAST MAY 2024 he UAE banking sector plays a pivotal role in driving the country’s transition towards a sustainable energy fuel mix. This includes providing crucial funding for renewable energy projects and clean technologies, with a specific focus on hydrogen production. Such support is in line with the UAE’s strategic goal of reducing emissions and achieving carbon neutrality by 2050. UAE banks like Mashreq have demonstrated significant commitment, pledging over $50bn to green financ- ing across various projects in renewa- ble energy, waste-to-energy initiatives, and green technology advancements. Within the realm of green finance, several tools are utilised, including green-oriented funds designed to promote sustainability-driven endeav- ours. The Gulf state, with the region’s Advancing green finance involves not only providing financial support for green projects but also issuing green bonds and fostering eco-friendly practices among stakeholders BANKS PLAY A PIVOTAL ROLE IN DRIVING THE UAE’S TRANSITION TOWARDS A SUSTAINABLE ENERGY MIX To bridge funding gaps for achieving net-zero carbon targets, increased private sector involvement is imperative alongside government initiatives BY BADAR CHAUDHRY, HEAD OF ENERGY SECTOR, MASHREQ T BANKINGBANKING MAY 2024 CEO MIDDLE EAST 15 second-largest economy, has been a trailblazer in introducing sustainabil- ity standards and principles within its banking and finance sectors. Key initiatives such as the Abu Dhabi and Dubai Sustainable Finance Declarations in 2016 and 2019, respec- tively, along with the Guiding Principles for Sustainable Financing in 2020 and the National Sustainable Finance Frame- work in 2021, have been instrumental in shaping a robust green financial market. In addressing global energy demands, the UAE recognises that a combination of resources – be it gas, oil, solar, wind, nuclear, or hydrogen – are essential. Mashreq, despite its longstanding history as a bank, embraces an innova- tive mindset, driving advancements from digital-first services for entry-level customers to supporting major corpora- tions and wealth management needs in the region. Our mission is centred on guiding customers towards daily success, partnering with them through challenges and triumphs to fulfil financial aspirations and achieve lasting success. We are not alone. The major national banks in the UAE are poised to bolster their commitments to green financing, aiming to surpass a collective AED1 trillion ($272bn). Their strategic focus includes accelerating financing support for businesses transitioning to zero carbon emissions, especially in sectors facing challenges in emission reduction. Additionally, plans are un- derway to increase funding for innova- tive projects, ecosystem restoration, and biodiversity preservation efforts. Mashreq stands out as a lead- ing contributor to the UAE Banks Federation’s AED1 trillion pledge for enhancing green financing as we are committed to facilitating AED110bn in sustainable finance by 2030, with substantial allocations already in mo- tion across the UAE, Qatar, Bahrain, Egypt, and India. The UAE’s financial landscape has also embraced green sukuk and bonds, with a combined The UAE, through its leadership role at COP28, pledged $100m to support these efforts, highlighting its commitment to climate action. We recognise that public-private part- nerships, backed by robust financial policies, play a crucial role in directing investments towards sustainable devel- opment goals. The financial sector’s proactive engagement in advancing green finance is pivotal for achieving long-term sustainability objectives. Collaborative efforts between public and private sectors, coupled with in- novative financing mechanisms like blended finance, present effective path- ways towards a low-carbon economy. To bridge funding gaps for achieving net-zero carbon targets, increased private sector involvement is imperative alongside government initiatives. Blended finance mod- els can help mitigate project risks and facilitate the adoption of new technologies, especially in emerging markets. Financial institutions like Mashreq are incorporating sustain- ability metrics into investment processes, aligning their investment strategies with long-term environ- mental goals for holistic impact. As global energy demands con- tinue to rise, with a growing emphasis on lower emissions, investments in regions like the UAE, known for their reliability and low-carbon energy offerings, attract top-tier investors. Initiatives by entities like ADNOC and Mubadala, which have gener- ated substantial foreign investment through strategic partnerships and financial initiatives, demonstrate the potential for using capital efficiently to unlock growth opportunities while prioritising sustainability. These initiatives not only benefit individual companies but also have wider eco- nomic implications, positively impact- ing economies like the UAE, the Arab world’s second-largest economy after Saudi Arabia. “PUBLIC-PRIVATE PARTNERSHIPS PLAY A CRUCIAL ROLE IN DIRECTING INVESTMENTS TOWARDS SUSTAINABLE DEVELOPMENT GOALS” Blended finance models can help mitigate project risks and facilitate the adoption of new technologies, especially in emerging markets, Chaudhry says market size of approximately $17bn in recent years. These financial instru- ments aim to tap into institutional funding sources that contribute to en- vironmental protection while offering attractive returns to investors. Advancing green finance involves not only providing financial support for green projects but also issuing green bonds and fostering eco-friendly practices among stakeholders like cus- tomers, SMEs, suppliers, and vendors. At global climate forums like the Unit- ed Nations Climate Change Confer- ence of the Parties (COP), significant agreements are being made to address climate challenges. For instance, at COP28, delegates formalised a loss and damage fund for the first time to aid vulnerable countries grappling with climate change impacts. 16 CEO MIDDLE EAST MAY 2024 COVER STORY SHERIF BESHARA THE MEDICINE MAN Sherif Beshara, Group CEO of American Hospital Dubai, shares his vision of the future of healthcare in the Middle East COVER STORY ould you tell us about your leadership philosophy and approach to managing such a large healthcare organisation? I always believe that leadership is about results, not rhetoric. My leadership philosophy is based on harmony between purpose, people and performance. Purpose - The purpose of American Hospital Dubai is to ben- efit people through our benchmark performance. Our purpose helps us understand people and define our performance. The people in our or- ing. We integrate human potential with innovation and we nurture a culture of performance excellence through motiva- tion, recognition and acknowledge- ment of contributions. We recognise the shared values of our purpose; that is delivering benchmark healthcare. What would you consider the top challenges facing the healthcare sector in the Middle East? How is American Hospital Dubai addressing these challenges? We have the following challenges at a national level: C ganisation serves patients, stakeholders and partners. Performance - How can ex- cellence and dynamism across the organisation be created? Empowering staff can help us meet our patients’ expectations. Effective leadership creates a baseline-to-top rise of core values. We nurture the grassroots – our people - so the entire ecosystem of American Hospital Dubai is healthy and thriving. How does American Hospital Dubai do it? We choose the best human expertise and empower it through train- 16 CEO MIDDLE EAST MAY 2024MAY 2024 CEO MIDDLE EAST 17 SHERIF BESHARA COVER STORY HEALTHCARE LEADERSHIP MUST ENSURE YOU MAKE THE CORRECT KEY FOR THE RIGHT PERSON SHERIF BESHARA COVER STORY18 CEO MIDDLE EAST MAY 2024 COVER STORY SHERIF BESHARA Keeping pace with technological evolution - Healthcare must integrate predictive analytics, data forecasting and Artificial Intelligence (AI) with performance. These advancements align with the region’s commitment to embracing innovation for enhanced patient care. Collaboration in healthcare - These are critical for future success. The UAE actively collaborates with many coun- tries, creating solutions for all. Healthcare spending and public health advancements - Governments must cut a larger slice from the budget for healthcare requirements, including boosting the numbers of healthcare providers and skilled professionals, investment in infrastructure and facili- ties, and technology and development to widen the region’s healthcare footprint. For example, hospitals are a critical national healthcare asset. The UAE’s projected hospital revenue is $9.14bn for 2024. Healthcare talent retention and ca- pacity building - The UAE’s Golden Visa for doctors has been a significant step in increasing healthcare profes- sionals’ numbers and contributions. Countries must retain their talent pool for a consistently thriving healthcare ecosystem. Electronic Health Records (EHR) Integrated National Database - The UAE has raced ahead in this area. Countries need to have this critical as- set to improve healthcare delivery. We also have challenges at the healthcare provider level: American Hospital Dubai is the region’s first private healthcare facility to earn accreditation from the US-based Surgical Review Corporation (SRC) $9.14bn The projected revenue of hospitals in the UAE for 2024MAY 2024 CEO MIDDLE EAST 19 SHERIF BESHARA COVER STORY The American Hospital Care Network (AHCN) aims to promote transformative healthcare in the region Ensuring sustainability - Health- care must pay attention to resource overutilisation, environmental impact and achieving a smaller carbon foot- print through waste reduction, recy- cling, energy and cost-saving systems and processes. AHD has always focused on sustainable measures. Our sustaina- bility policy measures our performance and demands accountability. We focus on the following to design our patient-centric healthcare model: • Human expertise for people. • Innovation for people. • Technology for people. Embracing disruption - Every healthcare professional and non-clini- cal worker must stay abreast of disrup- tions through training programmes, workshops, and knowledge transfers. We integrate predictive analytics, AI and robotics with our performance. American Hospital Dubai (AHD) has set a milestone in the region with the launch of the first artificial intelligence (AI) medical research centre in the UAE, in collaboration with Cerner. Expertise blending is healthcare’s new normal. AHD’s partnerships with Mayo Clinic and Siemens are exam- ples of how we expand the circle of our performance. Increasing Public-Private Partner- ships (PPP) – We are in the era of col- laborative impact, and healthcare must work closely with the government’s objectives to create maximum pub- lic health outcomes. AHD’s support of government healthcare objectives included initiatives that played a sig- nificant role in pandemic containment. Taking a pioneering role - Health- care providers must expand beyond lateral transactions to engineer more extensive benefits for people. We inte- grate education with healthcare to wid- en the impact on society. Our Ameri- can Health Academic Institute (AHAI) leads knowledge-sharing for the greater good. Our American Hospital Care Network (AHCN) provides third- party management and manages other healthcare providers and facilities as a core function. We are the first hospital in the Middle East to adopt this concept. We are setting up a medical college in partnership with the prestigious Baylor Medical College in Houston, Texas. It’s the region’s first such initiative. Digital transformation and tech- nologies like AI are revolutionising healthcare globally. How is American Hospital Dubai leveraging new tech- nologies to improve patient experi- ences and clinical outcomes? AI could contribute to almost 13.6 percent of UAE’s GDP by 2030, ac- cording to a PwC report. The country is aiming for a high AI literacy. Its 2031 National AI Strategy encom- passes core research, AI-led break- throughs, and more. We are in the era of predictive medicine and value-based healthcare delivery. AHD’s Centre of Excellence in Robotic Surgery (COERS) has performed more than 1,500 robotic surgeries, and we are training 20 Emirati surgeons in robotic surgery by 2024. We are the region’s first private healthcare facility to earn accredita- tion from the US-based Surgical Review Corporation (SRC). We have partnered with Robotic Surgical Systems (RSS) and UK-based CMR Surgicals to set up the region’s first training hub and educational academy to raise robotic surgery standards. We also partnered with Oracle Cloud Applications and Cerner for a significant digital transformation to improve our medical service excel- lence and expertise across our clinical and business domains. “HEALTHCARE PROVIDERS MUST EXPAND BEYOND LATERAL TRANSACTIONS TO ENGINEER MORE EXTENSIVE BENEFITS FOR PEOPLE”Next >