project "leader of LULU Hypermarket" مشروع الريادة في قيادة محلات الولو للتسوق

1. Final Project
MNGT 220 - Effective Leadership
Spring 2015-2016 Semester
Al-Lulu Market,
Leader Profile
Student Name: Ahmed Alshamsi ,,, ID: ......
Lecturer: ................

2. Leadership Profile:
Mr. Yusuff Ali M.A., Managing Director of LuLu Group ranks today among the top
business personalities. The Group has diversified into many significant areas under his
dynamic stewardship, retail being the most prominent of them.
His astute business vision and strategic mind have evolved ambitious growth plans for
the Group and ensured their materialization through a team of people who share his
drive and dynamism. Headquartered in Abu Dhabi, the capital city of United Arab
Emirates, the Group is best known in the Gulf through a chain of popular Shopping
Malls and Hypermarkets which serve the widest segments of multi-ethnic residents in
the region.
LuLu Group, with its 35,600 strong workforce from 37 different nations and operational
bases extending over the UAE, India, Oman, Qatar, Kuwait, Saudi Arabia, Bahrain,
Egypt, Kenya, Benin, Tanzania, Senegal, Uganda, Nigeria, Ghana, Ivory Coast, South
Africa, Mozambique, Cameroon, Togo, Gambia, China, Hong Kong, Indonesia,
Thailand, Vietnam, Malaysia, Brazil, Spain, Turkey, and United Kingdom is one of the
most successful corporates of the times with a steadily ascending growth curve over the
years.
Apart from his busy business involvement, Yusuff ali is equally active on the social
front and is associated with various organizations.
In recognition of his remarkable achievements in Business & Industry and his
distinguished services in the field of Social Work, he was conferred the prestigious
Padma Shri award by H.E. Smt. Pratibha Devisingh Patil, Hon’ble President of India

3. on 05th May, 2008. He was the first Non-resident Indian from the Gulf and the Middle
East countries to be honored with this coveted award by the Government of India.
Taking into consideration his outstanding achievement in the field of business and in
recognition of his valuable contribution in promoting the honour and prestige of India
and in fostering the interests of overseas Indians, he has been conferred with the
prestigious “Pravasi Bharatiya Samman Award” the highest Indian Government Award
given to Non-Resident Indians by Dr. A.P.J. Abdul Kalam, the Hon’ble President of
India at Mumbai in January, 2005.
The crowning glory in his career came when he was overwhelmingly elected by the
U.A.E. business community as the Director Board member of the Abu Dhabi Chamber
of Commerce & Industry (ADCCI). This was the first time that elections were held for
the ADCCI and expatriate was elected to the Director Board of one of the world’s most
prosperous and wealthy business regulatory authorities. In addition to this, he was also
unanimously elected by the Board members as the Vice-chairman of the prestigious
Trade Committee of the ADCCI. After four years, in the year 2009, the U.A.E business
community re-elected him to the Director Board of ADCCI with a thumping majority.
In the year 2014 he was again re-elected for a third time and he is the only non-Arab to
be elected to the Director Board of ADCCI consecutively for a record third time.
Yusuff ali is very closely involved in many social, charitable and humanitarian
activities both in India as well as in Gulf countries and plays a vital role in fostering
the interests of Non-resident Indians and keeping intact the communal harmony
among the NRIs in the Gulf.

4. • His earnest and dedicated efforts have helped in securing cremation grounds for
Hindu brethren in the Gulf.
• Through his close association with the authorities in the Gulf he has been able to
arrange free land for the Christian community to construct churches.
• His proximity with the Rulers and local Govt. authorities in the Gulf countries has
gone a long way in strengthening the bilateral ties between India and the Gulf
countries.
• As a true son of India, Yusuff ali has always strived to bring in foreign investments
and expertise to India especially to Kerala for various infrastructural development
projects, prime among them being the first and only International Airport with private
participation, in Cochin of which he is a Director.
• Of late, he has won big rounds of applauses for playing the mediator in the Kochi
Smart City venture, which is the dream project the whole State is seeking after. It was
at a crucial juncture when the project would have almost been dropped by the
TECOM Company from Dubai that Yusuff ali was requested to be a mediator by the
Kerala Government. His diplomacy won once again and the Smart City Project is now
being made into a reality.
• The philanthropist in him has always come to the forefront in organizing huge and
timely relief measures from the Gulf during many natural calamities in India viz.
Lathur Earthquake, Gujarat Earthquake, Tsunami Tragedy, Uttarakhand Floods &
Landslides. He was the first to contribute for the rehabilitation of the Calicut market
fire victims when thousands lost their livelihood and during the amnesty period in the
U.A.E. he was in the forefront by providing free air tickets including other facilities to

5. hundreds of hapless Indians who could not even afford a ticket back to their
motherland.
EMKE Group (LuLu Group International):
The EMKE Group alias LuLu Group International commenced its operations as a
family business venture. After joining the business, Yusuff Ali diversified the
business to include import and distribution of frozen products from Europe and
the US. The products were available not only in Abu Dhabi but also in the interiors of
the Emirates too. The business was soon expanded to include both food & non-food
categories. The group also started cold storages, meat and food processing plants,
large-scale import and distribution to hotel groups, catering companies, and shipping
services. By the 1980s, the group had a sizeable share of the wholesale and retail food
market in the UAE.
The Group headquartered in Abu Dhabi has grown into an international group with
operations spread over three continents. EMKE Group’s flagship retail chain of LuLu
Hypermarkets and Supermarkets is currently rated as one of the major players in
the Middle East retail sector with more than 100 stores in the Gulf Cooperation
Council (GCC) Arab states. Apart from the hypermarkets, supermarkets and
department stores, the group also owns several shopping malls, namely, Khalidiyah
Mall, Al Raha Mall, Al Wahda Mall, Mushriff Mall, Madinat Zayed Mall, Mazyad
Mall, Ramli Mall, RAK Mall, Al Foah Mall, and Al Khor Mall, spread across
the GCC states. LuLu Shopping Mall in Kochi, Keralawas opened on 10 March 2013.
It is the group’s first retail venture in India. Another ambitious project in progress is
the Riyadh Avenue Mall in Saudi Arabia. The Group has a vast organizational
structure of over 35,600 employees, representing 37 different nationalities, out of

6. which more than 28,900 are Indians. Retail business is the mainstay of the Group with
operations in major Middle East and African countries like
UAE, Oman, Qatar, Kuwait, Yemen, Saudi Arabia, Bahrain, Egypt and Kenya having
Retail Sourcing and manufacturing bases located in Far
East, India, Africa and Guangzhou in China. Indian operations mainly include Food
Processing, Export of Food & Nonfood products and convention center with bases
in Delhi, Lucknow, Mumbai, Chennai, Cochin and Trichur.
Deloitte has ranked the Group as one of the ten fastest growing retailers in the world.
Planet Retail UK has also ranked the Group as the No.1 Hypermarket chain in the
region.
Lulu Hypermarket Expansion & current economic scenario:
In the past few months, Middle East based retail major has been on an aggressive
investment and expansion phase announcing large investments in Egypt, Bahrain,
Saudi, India, Indonesia and Malaysia to the tune of almost US$ 1.7 billion.
Talking on the announced investment plan, Yusuff Ali MA, Chairman of Lulu Group
said on the sidelines of World Economic Forum which is being held in Davos,
Switzerland, "next two years are very crucial for us as we embark on new markets of
Egypt, Malaysia, Indonesia while strengthening our presence in the GCC and India.
Lulu which currently has 121 stores has been strengthening its sourcing operation
around the globe by setting up its own sourcing offices in UK, Brazil and soon in the
United States.
Commenting on its global operations, Yusuff Ali said, "To maintain highest quality
level, uninterrupted supply and to be competitive in the market, we have been setting
up our own sourcing offices around the globe including Far East, China, Africa,

7. Europe and now Americas. This will give competitive advantage in our current as
well future business. Dismissing all negative sentiments in the markets with reference
economic slowdown, he added, "these are just temporary phenomena and I am quite
confident that economy will rebound on the back of long term visions of Arab
Governments and strong fundamentals of its diversified income sources.
Most of his upper management has been with him since inception, four decades of
loyalty, and the team of executives is even entrusted to speak on his behalf. "I've
empowered them to make decisions. They are absolutely able to handle everything."
EMKE Lulu Group as a company boasts an extremely low turnover rate- there is no
revolving executive door on Yusuffali's team. As a strategy, the top management are
rewarded and retained, and the MD is firm on the value of the Group's human capital:
"Good talent grows with the company, you work hard you are rewarded, and not just
monetarily: there's new markets, new roles, new responsibilities, and new categories
of business. Our CEO, Saifee T Rupawala, has been with the Group almost since day
one. When we started, there was only a few of us, and we were all sharing a table."
These same top executives were at one point personally unloading cargo, in honest to
goodness startup style. So yes, Yusuff ali's net worth is reportedly at a cool US$2
billion, but he's put his nose to the grindstone over the years, and that handful of
executives that started with him are still with him except they're no longer the startup
they once were.

8. Positions held:
M.A Yusuff Ali has held and is currently holding several positions in government
bodies and agencies, social, educational and charitable sector.
Government bodies and agencies
Trustee – The India Development Foundation
Trustee – Overseas Indian Facilitation Centre
Former Member – Prime Minister’s Global Advisory Council (2008-2014)
Mediator for the Smart City project
Director Board Member, Abu Dhabi Chamber of Commerce and Industry (ADCCI)
Member of Central Wakf Council, Government of India
Director –Air Kerala International Services Ltd
Former Director – Kerala State Industrial Development Corporation Ltd. (KSIDC)
(2002 – 2014)
Director - Cochin International Airport Limited. He recently raised his stake by
acquiring five lakh CIAL shares held by Thrissur-based Dhanlaxmi Bank Ltd.
Director - Kannur International Airport Ltd. (KIAL)
Vice Chairman – Non-Resident Keralites Affairs Department (NORKA ROOTS),
Govt. of Kerala
Corporate Member – Federation of Indian Chambers of Commerce & Industry
(FICCI)

9. National Council Member – Confederation of Indian Industry (CII) and Co-Chairman
– CII Gulf Committee
Former Director of Air India (2010 – 2012)
Former Special Invitee to the Board of Directors – Air India & Indian Airlines Ltd.
(1997 – 1998)
Social, educational and charitable organizations
Managing Director — EMKE Group (LuLu Group International)
Chairman & Managing Director – LuLu International Shopping Mall, Cochin, Kerala
Chairman & Managing Director – LuLu International Convention Centre, Thrissur,
Kerala
Chairman – Muslim Educational Society Medical College, Kerala
Member — Indian Business & Professional Council, Dubai, UAE
Chief Patron — Indian Islamic Centers in U.A.E.
Chairman of the Board of Governors — India Social & Cultural Centre (ISC)
Chairman of Lakeshore Hospital & Research Center Ltd., Kochi, Kerala
Chief Patron – Le Mer Public School
Vice Chairman – Abu Dhabi Indian School, UAE
Trustee — Emirati – Swiss Friendship Platform
Minority stakeholder in the Catholic Syrian Bank

10. 1) Philosophy of Leadership Statement:
Effective leadership is about having a clear vision of where your business is heading.
It's about identifying new opportunities and inspiring your team to pursue those
opportunities. Leadership is required from individuals and from teams.
Building leadership and management includes:
Encouraging leadership at every level of the organization.
Leading by example and creating a positive and productive work environment.
Making sure your staff has the skills and resources to improve their learning and go
on learning.
Investing in management development and training.
Supporting innovative thinking and making use of new ideas.
How to Develop a Leadership Philosophy?
Earlier, we discussed why having a leadership philosophy is essential. The importance
is based on Character, Consistency, and Collaboration. Understanding the value may
be the easy part. The challenge is in taking the time to develop your leadership
philosophy and then use it.
The process to develop a leadership philosophy may vary by individual. Developing
one is the key so don’t get bogged down in the process. Use a process that works for
you. Again, the important element is to begin and write a leadership philosophy.

11. What is philosophy?
To recap, a philosophy is “a theory or attitude held by a person or organization that
acts as a guiding principle for behavior.” Several components are evident within this
definition:
A theory: Serves as a basis for how we act. Theories evolve as new information is
processed and we learn from our experiences.
An attitude: Attitude is about mindset. Leaders embrace a mindset to influence others
in positive ways so meaningful results can be achieved.
Guiding principles: Principles are the beliefs we hold close, keeping us grounded and
centered in how we lead in.
Behavior: Behavior is where our actions come together to match our words and our
words match our actions. Behavior is where trust is gained or lost.
To develop a leadership philosophy, my suggestion is a three-step process.
Step 1: Select an admirable leader
One of the first things you might want to do is identify someone you admire as a
leader. This person can be a historic figure or a current one leading a company,
community, or university. Political leaders are options, too. Identify what you admire
about this person. Be specific.
What traits make them stand out?
What have they done or are doing to be an admirable, respected leader?
What type of working relationships have they built?

12. What are their exceptional leadership attributes and imperfections?
Understand what you like about their leadership style and results and why you admire
them. Use these elements as a basis for developing your own leadership philosophy.
The objective is to not mimic them but learn from them and then apply those lessons
learned to your leadership philosophy.
Step 2: Define your theory, attitude, principles, and behavior
Each component needs to be thought through and defined. The process does not need
to be complex but it does need to be thoughtful. To begin the development process,
highlighted below are key statements to complete for each component.
Theory:
I believe ____________________________.
Take the time to think through 3 to 5 leadership elements you believe to be true in
your heart and soul. For you, these elements are irrefutable right here, right now.
Based on your experiences to date, you believe these 3 to 5 elements to be critical to
leading effectively and productively. By belief I mean, these are elements you believe
to be true about people, culture, and community.
Just start writing. Don’t over-think it. Just write until nothing else comes to mind.
Now, review, consolidate, eliminate. Focus on the 3 to 5 that resonate most within
your heart and soul.
For example:
I believe open, respectful collaboration can solve any problem.
I believe excuses and rationalizations are just being lazy.

13. Attitude:
My thoughts will ___________________________.
My words will _____________________________.
What is your general attitude in the workplace and in your neighborhood? What type
of words do you use most often? What type of good thoughts do you think about
when working with others or when preparing for a meeting? As you put yourself in
this frame of reference, write out your statements. After you have several written
down, read through them and discern what each say about your desired attitude. Write
down your attitude attributes.
For example:
My thoughts will focus on what is possible even when things seem impossible.
My words will try to encourage everyone to do their best and spark a laugh when
appropriate.
Principles:
I will lead by/with ___________________________.
What is non-negotiable? What are your imperatives? To be a stellar leader, what
needs to shine brightly and fully in working with others, making decisions, and
holding all accountable.
For example:
I will lead by always trying to do my best in whatever I do.
I will lead with empathy – listening attentively, seeking to understand, and leveraging
the experience and talents of others fully.

14. I will lead with learning mindset, knowing that situations change, people change, and
learning equals growth.
Behavior:
I expect to _________________________ in _________________________
situations.
Behavior is where your leadership philosophy gets tested. Behavior determines
whether your leadership philosophy is just a bunch of lofty words to be used in team
meetings or visible in your everyday actions. Identify what you expect your behavior
to be, given your theories, attitude, and principles. Think through success and failure.
Think through achievements and tough challenges.
For example:
I expect to respond rather than react in challenging situations.
I expect to focus on the process to understand and change in challenging situations.
Step 3: Check your leadership philosophy
After you think each through and write out your responses, the next step is to go have
a conversation with people around you and ask them how they would answer each of
the questions:
What do you think I believe?
What do you think my attitude is in good and challenging times?
How do you think I lead?

15. In good and challenging situations, what did my behaviors say about my leadership?
Tests drive your leadership philosophy, ensuring how you want to lead matches with
how you actually lead. This doesn’t mean you need to lower the bar of your
leadership philosophy. The opposite, in fact. Understand the work ahead and the
possibilities of leading fully within your philosophy.
I never developed a leadership philosophy when I was 20 something. I wish I had. I
would have been a stronger leader and learned more about myself and others along
the way. It is never too late to begin.
Some parts of a leadership philosophy are intuitive to who we are. Thinking through
what type of leader we want to be and how we want to lead will make us a better
leader. More importantly, in those difficult times, having a leadership philosophy will
keep us centered in moving forward as well as within the right boundaries when
temptations arise.
What suggestions would you add to develop a leadership philosophy? What value do
you see in having a leadership philosophy?
Leadership Skills
The ability to lead effectively is based on a number of key skills. These skills are
highly sought after by employers as they involve dealing with people in such a way as
to motivate, enthuse and build respect.

16. Leadership roles are all around us, not just in a work environment.
They can be applied to any situation where you are required to take the lead,
professionally, socially and at home in family settings. Ideally, leaders become
leaders because they have credibility, and because people want to follow them.
Two questions which are often asked are:
What exactly is a leader? and
How is being a leader different from being a manager?
Take a look at our pages ‘What is a Leader?’ And ‘Leadership is not Management’ to
find out more.
Many people also wonder if leadership can really be taught. People with vested
interests (academics and those offering leadership training or literature of some sort)
are convinced that it can. Many successful leaders, however, have never had any
formal training. For them leadership is a state of mind, and it is their personalities and
traits that make them successful leaders.
One of the most important aspects of leadership is that not every leader is the
same. Of course we have all heard jokes about ‘mushroom’ leadership (keep them in
the dark and feed them on manure) and ‘seagulls’ (swoop in, squawk, and drop
unpleasant things on people), but joking aside, there are many different styles of
leadership.
Different leadership styles are appropriate for different people and different
circumstances, and the best leaders learn to use them all.
Perhaps the most important skill a leader needs is to be able to think strategically.

17. Leadership is all about having a vision of where you want to be and working to
achieve that vision.
Alongside strategic thinking go organizing and action planning, both essential for
delivery of your vision and strategy, and risk management to help you avoid things
going wrong, and manage when they do.
Organizing Skills, Action Planning and Risk Management for more.
Leaders also need to be able to make good decisions in support of their strategy
delivery.
Along the way to achieving their vision a leader will come upon many problems.
Effective problem solving is therefore another key leadership skill. With a positive
attitude, problems can become opportunities and learning experiences and a leader
can gain much information from a problem addressed.
Leaders also need to be very organized on a personal level, and able to manage
themselves and their time, so that they can spend time doing what they need to do,
and not on other tasks.
As well as organizing their time and their teams, leaders need to spend a bit of time on
themselves, and particularly on their self-motivation. A leader who lacks self-
motivation will struggle to motivate others, as people are quick to detect a lack of
sincerity.
Developing People Skills
Another area which is crucial for leaders is skills in leading people. After all, without
followers, there are no leaders.

18. Leaders need skills in working with others on a one-to-one and group basis, and a
range of tools in their armory to deal with a wide range of situations.
One of the first skills that new leaders need to master is how to delegate. This is a
difficult skill for many people but, done well, delegation can give team members
responsibility and a taste of leadership themselves, and help them to remain
motivated.
Leaders also need to know how to give others their views on personal performance in
a way that will be constructive rather than destructive, and also hear others’ opinions
of them.
Leaders then need tools to help them understand the way that others behave, and
create positive interactions.
Finally, leaders have to be able to work well in group situation.
However, leaders spend much of their time in one particular group situation,
meetings, so they need to have particular skill in chairing and managing meetings.
Effective Personal Qualities
There are a number of personal qualities which leaders tend to display. However, for
all that this description implies that these qualities are intrinsic; they can be developed
and improved over time.
These qualities include charisma, that quality of ‘brightness’ which makes people
want to follow a leader, assertiveness, which enables that person to make their point
without aggression, but firmly, and empathy, understanding of how others feel.
One way to understand leadership qualities is in terms of Emotional Intelligence, an
umbrella term that describes how well we relate to others and to our own feelings.

19. Excellent Communication
Leaders also need finely-honed communication skills.
These skills are general interpersonal skills, not specific to leadership, but successful
leaders tend to show high levels of skill when communicating.
Good leaders tend to be extremely good listeners, able to listen actively and elicit
information by good questioning.
They know how to build rapport quickly and effectively, to develop good, strong
relationships with others, whether peers or subordinates.
They are usually very good at public speaking, equally skilled at getting their point
across in a formal presentation or Board meeting, or in an informal meeting or casual
corridor conversation.
They have strong negotiation skills, in the broadest sense, in terms of reaching win-
win situations and making sure that they know their ‘bottom line’.
They have also honed their ability to communicate in difficult situations, usually by
practice over time.
2) Analysis of a Critical Leadership Issue in an Emirati organization
The Future of Emirati business
Overview of the issue
The records set by the general index of confidence in the business climate and its sub-
indexes in 2015 has shown a continuous positive outlook amongst various businesses

20. towards the economic conditions in the Emirate of Abu Dhabi and optimism for the
future in spite of s slight decline of the general index value which reached 59 points in
2015 against 62 points recorded in 2014. The new result of the general index of
confidence came as part of the developmental indexes of the economic conditions in
the UAE.
The Future Business UAE platform, an investment platform to maintain and develop
the UAE’s role in the global economy, represents the first time the country has
created a permanent corporate exhibition for UAE companies and entities to leverage
the Expo’s global visitor reach and foster international cooperation in key national
growth areas.
The platform includes leading UAE entities in telecommunications, energy, food,
trade and commerce. It has welcomed prospective global partners following its
opening on May 1.
His Highness Shaikh Ahmad Bin Saeed Al Maktoum, Expo 2020 Dubai Higher
Committee Chairman, President of the Department of Civil Aviation, CEO and
Chairman of The Emirates Group and Chairman of Dubai World toured the specialist
exhibition and meetings theatre, along with His Highness Shaikh Sultan bin Tahnoon
Al Nahyan, Expo 2020 Dubai Higher Committee member, Chairman of Abu Dhabi
Tourism & Culture Authority, Tourism Development & Investment Company and Abu
Dhabi National Exhibition Company, and other officials.

21. Future Business UAE is managed by Dubai World Trade Centre (DWTC) on behalf of
the National Media Council, which has created the UAE National Pavilion on behalf of
the UAE Government.
At the platform, the Ministry of Environment and Water (MOEW) and the Supreme
Council of Energy (DSCE) are discussing sustainable energy initiatives with other
international councils and regulators.
“The Ministry of Environment & Water’s participation at Expo Milan 2015 is part of
its role to develop and promote sustainable development projects, and to ensure further
development of the UAE’s environmental sector,” said Mariam Saeed Hareb, Assistant
Undersecretary of Water Resources & Nature Conservation, MOEW, in the statement.
Meanwhile, Dubai Electricity & Water Authority (DEWA) is highlighting Dubai’s
position as a global role model for energy efficiency, renewable energy, sustainability,
creativity and innovation, and attracting investment in renewable energy and energy
efficiency, said Saeed Mohammed Al Tayer, Managing Director and CEO at DEWA.
“We will present the strategies, initiatives and achievements of DEWA, and exchange
best practices and experiences with other institutions and organizations from all over
the world,” he stated.
Also, the Dubai Chamber of Commerce is leveraging Future Business UAE to arrange
meetings with both individuals and entities keen to explore future business growth in
the UAE and involvement in Expo 2020 Dubai.

22. His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the United Arab
Emirates, announced earlier this year that 2015 was to be the Year of Innovation.
Inspired by this,
Forbes Middle East has for the first time unveiled new rankings focused specifically on
Emiratis and U.A.E-based enterprises that are pushing the boundaries of the business
world in the Middle East.
Mohammed Al Hammadi, Executive Director of Publishing and Editor-in-Chief of Al
Ittihad, delivered the keynote speech, praising the gathered trailblazers for using their
vision and talent to revolutionize their industries, bringing with them modernization
and growth, and making the United Arab Emirates one of the most diverse, inclusive
and innovative countries in the world. Mr Al Hammadi was recognized himself for his
continued support of entrepreneurs in the region. Among many other accolades, Mr Al
Hammadi is a founding member of the 'Young Arab Leaders' organization.
Abdul Baset Al Janahi, CEO of Dubai SME, the agency of the Department of Economic
Development (DED) in Dubai mandated to develop the SME sector, was also in
attendance to hand out the awards with Mr Al Hammadi and recognize the
achievements of the gathered leaders. Mr Al Janahi has been contributing significantly
to developing and maintaining an entrepreneurial ecosystem in Dubai and mobilizing
government and private sector support to help young and aspiring entrepreneurs in the
United Arab Emirates.
Mr Al Janahi said: "Dubai SME is proud to be part of the initiative from Forbes Middle
Ease to recognize entrepreneurial excellence as it complements our efforts to nurture
the U.A.E.'s entrepreneurial culture into a strategic enabler of economic development,

23. as envisioned by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice
President and Prime Minister and Ruler of Dubai. Dubai SME has supported more than
17,500 entrepreneurs and facilitated the launch of over 2,800 SMEs since its inception
in 2002, helping aspiring Emiratis realize their dreams and cementing Dubai's
reputation as a hub to launch and grow innovative and smart business concepts."
Forbes Middle East was supported by several organizations in hosting the event,
including: Dubai Islamic Bank; Rasasi Perfumes; Al Tayyar Travel Group; Al Ittihad;
Elegant Resorts; Elite Executive Services Company (EES); Al Oula Radio 107.4;
and Dubai One. The event was attended by some of the most inspirational and
successful leaders in the U.A.E. Some of the pioneering entrepreneurs and startups
present included: Jassim Albastaki from Envelope Investment LLC; Khalid &
Abdulrahman Basaeed from Feathers UAE; and Hashem Al Marzouqi from Al Fanar
Restaurant and Café; Idriss Al Rifai and Joy Ajlouny from Fetchr; Jon Richards and
Samer Chehab from Compareit4me; Shant Oknayan and Christos Mastoras from
GlamBox; Bader and Fahad Al Kalooti from Laundry box; Mudassir Sheikha from
Careem; and many more.
Mrs. Khuloud Al Omian, Editor-in-Chief, Forbes Middle East said: "We at Forbes are
incredibly proud of our tradition of honoring the most successful business leaders,
paying tribute to the people that have reached the top of their game, reinvented the rules
and brought about innovation in their industries. We want to shine a light on the local
startups and entrepreneurs that are shaking things up and inspiring growth and
diversification. Every single one of the people on our lists has proven that they have the
guts, the determination and the passion to excel at what they do, and by carrying out

24. their business in the United Arab Emirates they are bringing excellence to the whole
region."
Leadership Professionalization according to issue:
The entrepreneurial scene is booming in the U.A.E. The government is playing a central
role by stepping up initiatives to facilitate the creation of new businesses. It has declared
2015 the year of innovation. The message is clear: Startups are an engine for growth.
They create jobs; they disrupt old industries and give birth to new ones.
To reflect the diversity of innovation, we've put together two lists: one features Emirati
entrepreneurs; the other ranks entrepreneurs from around the world--but mainly Arab
countries--who chose Dubai as their headquarters to launch their startup.
The majority of Emirati businesses on our list are less than five years old. Although the
hospitality sector dominates, several startups are worth keeping an eye on, including
Bio D Packing & Packaging, which makes biodegradable material for packaging, 4M
Technologies, which develops drones for aerial photography, and Slices, which pivoted
from a restaurant to a provider of healthy lunch programs for schools to battle the
growing problem of obesity.
We see that the trend towards the professionalization of business globally is
particularly important locally. The backbone of regional businesses is family-run
businesses where there is a strong need for increased professionalization, specifically
in finance and accounting matters. In the Gulf, family businesses are estimated to earn
around 80% of all non-oil GDP. Almost three quarters of these are currently managed
and owned by the second generation and hence US$ 1 trillion in assets is expected to
be handed over to the third generation within the next 10 years. Global statistics show

25. that only 15% of family businesses survive to the third generation. The summit
leaders do not see any specific regional reasons why the numbers would be more
promising in the Middle East. They see an increased interest in and understanding of
governance issues from these businesses, and would encourage further
professionalization. This would require greater emphasis to be placed on the values of
transparency and accountability, while building robust governance structures for such
businesses. Professionalization in the region should also mean an increased effort of
the Chartered Accountants Worldwide membership bodies and similar organizations
to work with regulators to help build more vigorous frameworks in the region and
create good corporate governance practices. Critical success factors report 15 Data
Business leaders face an increasingly complex, technology-driven world. The demand
for quality data on which to base good business decisions is crucial. Yet in many
countries in the region such data – or correct data – is not easily available from public
sources. As a result, successful business leaders often have to obtain their own
relevant data, in order to create an important competitive advantage, identify
opportunities and trends and to enhance risk management. By providing more and
higher quality public data, governments would be able to level the playing field for
businesses, facilitating the efforts of start-up companies and entrepreneurs and the
environment for investment. Corporate governance and transparency Chartered
Accountants Worldwide business leaders believe that foreign investors will remain
wary about investing in the region due to a lack of transparency which causes a lack
of trust. Better transparency and corporate governance will encourage the innovation,
investment and ownership that will bring future success. As elsewhere in the world,
companies face the challenge of creating consistent cultures and behaviors among
their staff. Of particular importance is the need to increase understanding of business

26. risks, as well as ethics and cultural dimensions. 16 Critical success factors report Case
study Majid al Futtaim3 – Good governance in family business Majid al Futtaim is a
family-run business with an annual turnover of US$ 6.23bn. Mr Majid al Futtaim
founded the company in 1992 and opened its first shopping mall in 1995. The core
business involves managing and developing shopping malls and hypermarkets and
now spans 12 operating countries within MENA and The Commonwealth of
Independents States (CIS). Today, 250m people annually experience Majid al Futtaim
each year, which has been regarded as a regional benchmark for good governance
practice. Already in the late 1990s, the founder executed a clear vision to separate
ownership and management. Where possible, international best practice was followed,
which resulted in the businesses adopting the principles of the UK’s Combined Code
for Corporate Governance in most instances, but allowing for flexibility to adjust to
local needs. The organizational structure is dynamic. In its current form, the three
major subsidiaries are autonomous in their operational decision-making to allow for
industry-specific expertise and flexibility. A holding company, owning all three
subsidiaries, is responsible for the overall interest of the group and holds the treasury
functions. The board of directors of the holding company consists of one family
member, two executive and four non-executive directors. The roles and
responsibilities of the chairman, the board of directors and the CEOs have been
clearly defined. Each subsidiary has its own high-calibre board consisting of the
holding CEO and the holding chief compliance officer, as well as the CEO of the
respective company and a number of nonexecutive board members who are experts in
the respective industry in which the subsidiary works. The strong reputation of the
group and its well-communicated governance structures has made it a sought-after
employer in the region. Both high caliber board members and executive leaders were

27. attracted by the sound governance structures of the group. It also helped in obtaining
trust from banks, and facilitating a good credit record and related beneficial cost of
capital. The solid governance structures and related business growth have attracted
partners for joint ventures and other commercial opportunities. The checks and
balances have also helped to limit their risk exposure through optimizing their risk
management and decision making processes. 3 From Tharawat Family Business
Forum and the Pearl Initiative publication, Good Governance in Family Firms.
Critical success factors report 17 Entrepreneurship Future jobs and economic
advancement will be served by more entrepreneurial activities. Currently, government
organizations constitute a large part of the economies in the region. While the summit
participants do see entrepreneurial activities within some of these, they would
encourage more initiatives to develop and foster home-grown entrepreneurship
through the private sector. Changing role of the CFO A number of factors are
changing the role of the CFO in the region. Technology has changed the speed of
business, and changes in risk management, reputational protection, and a changing
financial landscape is changing the role of the CFO. In addition, in the region the
generational handover of family businesses will further impact the role of the CFO.
The CFO and the general role of the accounting profession needs to adapt and change
into the business leadership role seen in more mature economies. Umar Saleem, CFO
from DEPA in Dubai, expressed it as follows: ‘In my team, Chartered Accountants
already stand out. As we evolve, their skill to analyses, do detail, look at issues in
depth combined with the ability to look at the business and commercial aspects and
take a wider perspective will become increasingly important.’ 18 Critical success
factors report Talent attraction and retention Talent attraction and retention is
expected to remain high on the agenda. There is no doubt that this is a key and

28. complex issue that needs to be addressed. Anis Sadek, Managing Partner of Deloitte
Dubai commented: ‘The region as a whole is likely to face increasing youth
unemployment combined with pockets of talent scarcity. In addition, the oil-rich
nations of the GCC need to find ways to ensure the local population is ready to lead
tomorrow’s economies. Addressing these complex issues will require ease of labor
mobility, improvements in education and vocational training throughout the region,
policy harmonization and improvements in transparency, governance and financial
regulation and reporting.’ Educating and nurturing talent Education is at the heart of
talent management. Summit participants encouraged governments to enhance
educational systems throughout the region and urged companies to take a long-term
perspective when it comes to supporting education and nurturing future talent. Of
specific importance is strengthening financial frameworks and the financial
environment to ensure a vigorous economy with the support of the Chartered
Accountancy profession throughout the region, which will increasingly rely on home-
grown skills. Participants recognize that Chartered Accountants Worldwide MENA
members, as business leaders, need to priorities nurturing home grown talent to ensure
there are financially skilled leaders ready to take on their roles in future. As the
importance of quality reporting, transparency, governance and risk management is
increasingly recognized, the profession that delivers these skills will also be of
increasing importance. Edward Quinlan, retired EY country manager for the UAE,
commented: ‘It is key for the economic welfare of the region to train top quality local
talent for the Chartered Accountancy profession. By choosing this career local
nationals are contributing to the future of their countries, and fulfilling a civic duty.’
Critical success factors report 19 Case study United Arab Emirates4 Nationalization
and the Chartered Accountancy profession In many parts of the world the

29. accountancy profession is one of the most sought-after professions for young bright
graduates. This is not the case in the Gulf Region of the Middle East. Of the estimated
225,000 Emiratis in the workforce, 90% work for government-owned organizations.
Only a small pool of Emiratis work in the private sector, and since banks have a
mandatory quota of 40% nationalization in the workforce, competition for talented
young nationals is fierce. But that does not seem to be the only reason. Mohammad
Zamani, the first to graduate from ICAEW’s Emiratization Scholarship Scheme,
explained: ‘Our families have a big influence on what profession we choose. It is hard
to explain to them that it is worthwhile to work for an accounting organization for
double the hours and less pay than I would earn in a government organization.’
Traditionally, accountants are expatriates and lack the status that professionals have in
other parts of the world. This is reflected in many of the traditional CFO roles. These
roles are changing as the region starts to implement best practices in risk
management, M&As and IPOs. These new CFOs are often still newly recruited from
the West. 4 From summit participants and ongoing academic research by Dr J. Vinke,
American University of Sharjah 20 Critical success factors report Amanda Line, PwC
Partner heading the company’s MENA Training Academy, said: ‘It’s mainly the expat
graduates from the subcontinent that choose accounting as a major at university.
Students that are Arab nationals will have the same ambitions to be CEOs, but often
do not see the CFO role as a route to get there.’ Diversity and the rise of women in the
workplace The summit discussed the benefit to the region from greater gender
equality and the opportunity for more women in the workforce which would benefit
all countries. In the Gulf countries a higher number of women in the workforce will
also mean an increase in the percentage of nationals there, which is important to
create long-term sustainable leadership. In other countries, an increase in women in

30. the workforce is likely to have a positive impact on GDP and economic stability. In
many countries women are now receiving a good education and often outperform
their male counterparts. Marcus Freeman, CFO of Chalhoub Group, a leading family-
owned business, highlighted the group’s experience in Saudi Arabia: ‘There are now
more female graduates than males, and labour laws are being adjusted. Our group has
recruited and trained over 1,500 Saudi females in the last 18 months for our
operations in the Kingdom, mainly as staff in stores. In the wider perspective, the
entry of women in the workplace will no doubt be an important contributor to ‘beyond
oil’ economic development, much of which will take place in the service sector.’
Summit participants agreed that the rise of women in the workforce is inevitable and
will be beneficial. For example, in the UAE, 73% of Emirati women plan to set up
their own business. Engaging them early and providing opportunities will benefit the
economies and businesses long term.
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