They are ambitious for the future, and always looking for opportunities to improve, innovate and ensure their long-term sustainability. Despite the unprecedented challenges businesses faced during the Covid-19 pandemic, family firms have managed to emerge stronger than ever, leading the way in building business synergy and trust to transform and adapt quickly during difficult times.
Ireland and the UAE are closely connected with many of their family businesses dominating major industries, playing a powerful role in delivering economic growth and growing mutually beneficial partnerships. Irish businesses, including family-led businesses employ almost 1.2 million people internationally.
Companies, whether an SME or large corporation, have had to take a hard look at the way they operate during the last few years and navigate a new path forward to enable them to stay relevant and ensure lasting success.
We know family businesses are more resilient, agile and trusted than others, with the PwC Middle East Family Business Survey indicating their resilience makes them more well-placed and prepared for recovery. They last through the generations, but with their multi-generational structure and family ownership and control, they undoubtedly face unique circumstances.
They feel strongly about their reputation and are ambitious and passionate about their growth and success, as well as being focused and mindful on the fragility of global economics. They are more aware of the importance of succession planning; tapping into fresh perspectives, by bringing in their younger generations to boost their digital technology and build their sustainability offering.
They are one of the oldest forms of business organisations globally, and the most common business ownership models credited for contributing to post-industrial growth. The economic impact of family businesses accounts for more than half of the global GDP and two-thirds of employment.
Ireland and the UAE are strong economic partners with similar visions and ambitions, but as is the case around the world, they have had to reinforce their competitiveness. Emirati and Irish family businesses alike understand the power of their business synergies.
The concept of synergy is when two different entities come together, they can utilise their assets and achieve more. They recognise the importance of being trusted and of building synergy with others to achieve common goals.
As family firms have weathered the storm of economic and societal challenges, it has been more important than ever for them to pursue new income sources and collaborations. Others have created new technology to transform their digital capabilities and increasingly so, many have decided to make concrete commitments on sustainability and ESG (environment, social and governance).
The PwC Middle East Family Business Survey recently showed that families businesses put diversification and improving digital capabilities at the top of their priorities.
Through increased collaboration, family businesses from the UAE and Ireland can mutually benefit and continue to build their economic foundations. Combining their resources and capabilities, they can work hand in hand to deliver innovation, greater results and save both time and money.
Here in UAE, Al Ghurair, are a great example of one of the oldest family businesses who have had to embark on a transformation journey to place innovation at the heart of their work in these changing times. Irish family businesses found across the region, such as Connolly’s Red Mills, Portwest, Fleming Medical and Botany Weaving, all have realised the huge opportunities and growth that exists across the UAE’s vibrant environment as it looks ahead to the next 50 years in their Centennial Plan 2071.
Family businesses also have an open and forward-thinking vision towards the wider ecosystem, eager to have a positive impact and make a difference. According to a Lombard Odier survey, about 85 percent of Middle East investors intend to increase their exposure to ESG (environment, social and governance) and sustainable investments in the future.
Sustainability matters more than ever to customers and employees, and new opportunities are presenting themselves to businesses. The UAE has been selected to host the COP28, the International Climate Conference in 2023, as it works towards reaching net-zero emissions by 2050. This offers huge opportunities to family businesses to reach out, achieve new aims and contribute to sustainable development.
For Enterprise Ireland, we know the importance of the business synergies between Emirati and Irish family businesses. Both can bring together their mutual assets to build trust, boost their innovation, solve challenges, increase their sustainability offer and transform their digital capabilities.
So, as we look ahead to the future and recover from the pandemic, we are optimistic about the opportunities and exciting markets for Irish family firms. There are countless ways to build their synergies with UAE businesses, and collaborate to drive economies forward, harness new partnerships and promote new technologies to achieve even greater potential together.
Conor Fahy, Regional Director for India, Middle East, and Africa at Enterprise Ireland.
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