BUSINESS FIRST


BUSINESS The Positive Arab Spring T by Penny Webb


he recent upheavals in the Middle East have forced many of us in the West to re-evaluate our perceptions of the region. It can no longer simply be thought of as a homogeneous bloc but an area in which a variety of sects, cultures and governance models exist side by side,


often with deeply uncomfortable consequences.


We are also learning that many Middle Eastern countries are by no means unsuited to democracy or constitutional reform even if they are still politically ‘young’ compared with many areas in the West. That said, many Western nations still have some way to go in achieving full democracy.


Resilience


Family firms in the region know they need to internationalise and rationalise their empires in light of tougher global economic conditions, and they must do so in a way that takes account of what has made them successful thus far. Steeped in traditions of philanthropic giving, of caring for the


entire family over a lifetime and beyond, these family firms were built on a spirit of incredible entrepreneurship in often hostile conditions. Many a family firm in the region has had to build, rebuild and build their wealth again as wars have been fought, industries nationalised and businesses confiscated. Their resilience is something from which we can learn.


// Many a family firm in the region has had to build, rebuild and build their wealth again…


To this end, Family Forum International was launched in Dubai earlier this month. The brainchild of businesswoman Gavina Rajendran, the Forum seeks to put Middle Eastern family businesses at the forefront of change, to become guides and examples for their region’s destiny. Membership is drawn from prominent families, family offices and trusted advisors from Kuwait, Bahrain, Saudi Arabia, UAE, Turkey, Syria and Lebanon.


// Gavina Rajendran, founder of the Family Forum International


Perhaps the biggest lesson of the last few months is that any solution to the Middle East and its tensions cannot be imposed by external forces but must come from within, tailored to suit the unique history of the region. Western models just don’t fit. Change will come from the best of what the Middle East has to offer, not from what those sitting in Western capitals mandate. I remember hearing at a recent conference in Bahrain a very senior member of a substantial and long-held family firm saying, ‘I support the next generation and will do all within my power to ensure they are happy and cared for. I know that in so doing I will help them to look after me as I grow old’. Here in the UK, care of the elderly is all about shuffling them off to homes. Which model would you prefer?


A think tank has also been founded to promote greater understanding of the issues affecting family firms, viewed through the prism of local sensibilities rather than those of the West. Yet the Forum’s first meeting demonstrated that at their core these families face the same sort of challenges as family businesses face in the West: the importance of education, the need to work closely with family members to understand responsible governance and increased transparency, and the socio-economic role of family owners to fully understand their roles and responsibilities within the family and the wider society at large. The group focused on value systems they held dear and ways in which they could leverage these for the good of the region. And there was much talk about the development of the next generation of family entrepreneurs who will be running these businesses in the future.


I recall a recent comment by the CBI which said the only way the West could break out of recession was via the success of private firms. Given that privately-held family businesses in the Middle East make up close to 95% of the region’s GDP, it seems they may have a head start on all of us.


Source: If you could like to learn more about the Family Forum International, or would like to become a member, please contact Gavina Rajendran at gavina.rajendran@familyforuminternational.com or Penny Webb at webb@efamilybusiness.com.


// JULY/AUGUST 2011 31


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