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Tue, Dec 24, 2024 | Jumada al-Aakhirah 23, 1446 | DXB
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From heritage to global influence: The pivotal role of UAE’s family businesses in shaping industries and markets
The evolution of these enterprises has mirrored the UAE’s transformation
The Al-Futtaim Group headquarters in Dubai Festival City. — Supplied photo
As the UAE ascends the global economic ladder, one of its foundational stones is often overlooked: the incredible impact of family-owned businesses that have nurtured the UAE’s commercial landscape. The nation, well-recognised for its rapid development, has an essential cornerstone in these family businesses, playing a key role in shaping industries and markets. Testament to their importance is the recent enactment of the family business law in October 2022, which became effective from January 2023. This law aims to promote growth, enhance competitiveness, and strengthen corporate governance in family-owned businesses. Al-Futtaim Group, a leading family-owned conglomerate, is a leading player in this field.
The UAE’s family business landscape
The UAE’s family business sector, underpinned by rich heritage and cultural values, stands as a testament to the nation’s entrepreneurial spirit. These businesses are microcosms of the UAE itself, embodying the nation’s penchant for growth, resilience, and forward-thinking ethos.
The evolution of these enterprises has mirrored the UAE’s transformation, underscoring their adaptability and agility. In the past few decades, the UAE has shifted from a trade-centric nation, primarily revolving around pearling and fishing, to a global hub for commerce and innovation. Simultaneously, family businesses have also evolved, demonstrating an impressive ability to adapt to changing economic landscapes, embracing modernity, and innovating while preserving their core values.
From humble beginnings in local markets, these businesses have expanded their footprints across borders, becoming key players in the international arena. Like the UAE, these businesses have shown that a small size does not limit global reach and influence.
Family-owned businesses have also significantly impacted job creation, skills development, and economic diversification in the UAE. Data from the Ministry of Economy indicate that these businesses contribute approximately 40% to the nation’s GDP, underscoring their economic importance.
Vision and leadership
One such family business leading this charge is Al-Futtaim Group. The company, rooted in the UAE’s entrepreneurial legacy, shapes various sectors with its diverse portfolio of over 200 companies that span automotive, real estate, retail, and finance, influencing markets and setting industry benchmarks.
As a family-owned business, Al-Futtaim Group takes a long-term view of everything, as it believes that sustainable success requires uncompromising commitment. That’s why some of the world’s most admired and innovative brands from sectors including automotive, retail, real estate and finance, among others, trust Al-Futtaim with their reputation and commercial success.
Driving innovation and entrepreneurship
Al-Futtaim Group’s SINYAR programme, designed to empower Emirati talent, embodies the group’s commitment to nurturing the next generation of business leaders. By providing comprehensive training and development opportunities, the programme helps employees build the skills and competencies necessary for a successful career in the retail and automotive industries. The programme also fosters a sense of entrepreneurship among the participants, inspiring them to bring innovative ideas to the table and think creatively about problem-solving.
Social responsibility and sustainability
The group has community development initiatives, ranging from local business support to social issue programmes, position them as a proactive corporate citizen. In parallel, their commitment to education ensures future generations are equipped with the necessary skills for a dynamic world. The Group remains committed to community development, education, and environmental conservation, translating responsible business practices into tangible societal and environmental benefits.
Environmentally, Al-Futtaim Group takes a strong stance, implementing energy-efficient operations, investing in renewable energy, and endorsing sustainable practices within its supply chain. Their growth aligns with societal well-being and environmental sustainability, underscoring their role in shaping a more equitable and sustainable future. Al-Futtaim Group’s approach is a testament to the significant impact that responsible and conscious businesses can have in creating a better future.
Building a lasting legacy
In a world where economic, social, and cultural boundaries are increasingly blurred, the story of Al-Futtaim Group exemplifies the potential of family-owned enterprises to achieve business success without compromising their roots, drive innovation while upholding tradition, and contribute to societal growth while maintaining fiscal profitability.
Amid the ever-changing business landscape, Al-Futtaim Group has adapted to new market dynamics while maintaining a strong connection to its heritage. This amalgamation of tradition and modernity has enabled the group to build a legacy that transcends commercial success and forge an identity deeply rooted in the spirit of the UAE.
A Staff Reporter
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