In families we trust

Long before the free zones and swanky façades, that the world has now come to expect of the UAE, the Emirates heavily relied on family-led businesses for growth and economic progress.
It was here that time-honed craft and trade secrets - not found in business schools - were handed down from generation to generation.
While the nation has undergone a metamorphosis over the last two decades, having embraced a renewed vision and development goals, one only needs to scratch the surface to see that nothing much has changed.
In fact, according to the 2019 Edelman Trust Barometer: Implications for Family Business report, 69 per cent of people trust family business, a 13-point trust advantage over business in general. The study also places UAE among the top nations where family-run businesses are trusted more than other large businesses. These findings come as no surprise as some of the top business in the region are family run contributing to 60 per cent of GDP and employing over 80 per cent of the workforce.
Deep-rooted values, trust and respect for senior family figures, alongside, grit, unrelenting drive and an entrepreneurial spirit have helped the firms to reach greater heights and remain resilient in changing times.
Today, family-run businesses are an integral part of a thriving economy. Thanks to strong governance, they can expand their market reach, maintain profitability and gain access to private equality at a faster rate than their counterparts.
As the backbone of the economy, and given the pace of the business world, the need of the hour is for family businesses to remain agile and embrace change - particularly when it comes to talent and technology and take the lead in community and nation-building.
Young talent bring energy, fresh ideas, and a promise for a brighter future. Senior leadership have a pivotal role driving this change, where their long-term goals should focus on how they can nurture and empower the next generation to become successful torchbearers of the vision and values that the business was founded on. Their passion, coupled with the years of experience from senior leaders, will ensure growth and continuity of the business.
Technology or digital adoption is another area that often forms a barrier to progress in a traditional set-up. Balancing time-tested business models in a digitised world requires foresight, fortitude and an ability to embrace the new. Technology has broken down barriers and it is only in adopting these changes that agility and progress in business can be achieved.
Given the volatility that we face across economic, social and environmental challenges, there is an urgent need to capitalise on family business leaders as a driving force and contributor to the economy. Leaders need to pay close attention to mobilising local communities and their efforts toward nation building.
An EY study reveals that almost 81 per cent of the world's largest family businesses practice philanthropy, showing a personal commitment to issues that matter within and outside the organisation. Community service is one way to express the core values of the family and demonstrate its obligations to the societies it operates in.
Family business is the lifeline of the global economy and yet, in so many ways, its continuity today depends on its ability to remain relevant.
With the shifting business dynamics world over, the Middle East which is mainly dominated by family businesses has a massive opportunity in raising its profile, contribution and influence in the global economy. The investments made by companies in talent empowerment and innovation today will directly contribute to the future strength of our communities and the country at large. The growing entrepreneurial and start-up culture, for instance, is the move in the right direction and gives the region the much-needed impetus to build a sustainable future. With the availability of best-in-class facilities, we should forever be indebted to the Royal family, who welcomes everyone with open arms and has time and again proven that the UAE is truly a 'land of opportunity'.
From Ford Motor Company, Coca Cola to Ikea, family businesses have passed the test of time and today represent some of the world's largest companies. As businesses chart the path forward, remaining true to the family legacy and the vision of the founding fathers, one must continue to uphold the baton that is handed down to not only raise a business but also contribute to the betterment of humanity. Because as P.T Barnum, the greatest showman, once said, 'The show must go on', and this fact couldn't ring truer today.
The writer is founder and chairman of NMC Healthcare, Finablr, BRS Ventures and Neopharma. Views expressed are his own and do not reflect the newspaper's policy.