meed-logo

line1 line2 line3
SIGN IN / REGISTER

How family businesses can create a meaningful future

30 September 2022

Family businesses have been at the forefront of change in the UAE for generations, thanks to their commitment to the vision outlined by the nation’s leadership. 

Historically a driving force for advancement, they remain a staple component of the UAE’s commercial ecosystem today: synonymous with trust and recognised for their vital role in driving job creation and economic growth.

The Covid-19 pandemic resulted in some 70 per cent of business leaders in the UAE forming a stronger connection to their purpose, according to a November 2020 KPMG report entitled A different service for a new reality.

In an era of global uncertainty, purpose is the North star, defining why a business exists and guiding family businesses as they move to transform and innovate in order to stay relevant and competitive – both now and in the future. 

Further, consumers, employees and shareholders alike are increasingly paying attention to how companies go about their business: from operating models and treatment of their people to the values they display.

Alignment of corporate and personal purpose is now imperative across all stakeholder groups, and future success for family businesses will depend as much upon being recognised for their social contribution as their commercial leadership.

Aspirational view

For some, this will mean a seismic shift in mindset, which must be borne out of strategic intent. To make this shift, a clear and articulate vision of the future is a valuable, and indeed essential, tool.

If purpose is the North star, providing direction, a vision paints the picture of the future; it is an aspirational view of the destination along the way. For every stakeholder touchpoint, a vision brings alignment, structure and clarity, especially during times of unprecedented change. 

Al-Ghurair Investment has built a 60-year history founded on its pivotal role in the country’s evolution and for making bold moves with a progressive mindset. Today, we embrace that legacy into the core of who we are, and look to our next chapter, launching an all-new vision that incorporates our history and our future: ‘Pioneers in the pursuit of better to enhance life, every day’.

Pioneering passion

The UAE’s ongoing transformation has ushered in a new era of opportunities for family businesses, energising us to always stay one step ahead of the times.

That means embracing change as a constant and being agile in our ability to adapt and respond to market trends and movements. 

Our transformation journey emphasises innovation, driving us to make bold moves that disrupt – thereby consistently raising the benchmark and expanding consumer choice.

From a legacy built upon groundbreaking moments: establishing the first flour mill, the first canola seed crushing plant, the first cement company and being first-to-market with a multi-use mall, we retain our pioneering spirit and have bold intentions to add many more firsts to our future story. 

Future success will depend as much upon being recognised for their social contribution as their commercial leadership

John Iossifidis, Al-Ghurair Investment

Pursuing better for all

To remain at the forefront of development, family businesses need to continuously up their game to become better for customers, employees, shareholders and society.

Customer priorities and behaviours are shifting, and brand loyalties are continuously being tested. In a recent customer intelligence report, four out of five UAE consumers have switched brands at least once in the past year.

There are growing expectations around improving customer experiences. Managing digital touchpoints, customer insights and data analysis are critical. It is encouraging to see family businesses in the region treating digitalisation as a top strategic priority going forward, with cost reduction no longer the primary driving force. 

The focus should be on shaping customer journeys that resolve pain points and build moments that not only satisfy but delight. 

Finally, for every business decision made, family businesses need to keep an eye on the country’s future, investing in sectors that drive local economic development and social advancement for generations to come. 

Through our partnership with the Abdulla al-Ghurair Foundation for Education, we invest in and enable the development of Emirati and Arab youth, building better livelihoods through education. Furthermore, conscious mindfulness towards sustainability is an increasing imperative – focusing on circularity, waste reduction and managing carbon footprints.

Enhancing life, every day

From the beginning, we pledged to enhance life in the community by entering sectors that are core to customer needs, that advance society and make a meaningful contribution. All our efforts are guided towards facilitating the ‘ecosystem of life’ – feeding people, housing people, educating people or bringing communities together. 

Achieving sustainable change is not just about big, symbolic efforts, but the smaller moments, where our daily actions can make a genuine difference. 

We believe family businesses need to build a culture around pursuing ‘being better’ every day, whether through how they serve their customers or how efficiencies are built into internal processes.

We ask ourselves every day at Al-Ghurair: “What can we do better today?” as this is how we can fulfil our larger purpose and vision for the UAE.

In doing so, we seek to collectively lead the business into a new era of growth: becoming more progressive, people-oriented, value-driven and guided by a focus on sustainable excellence – all while creating value for all our stakeholders. 

The Al-Ghurair family is woven into the fabric of the country’s rich heritage and economic growth. I believe there is much to be excited about when I look towards the future of the UAE and our organisation’s role within it.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10032693/main.gif

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Abu Dhabi hopes bigger is better with Disney theme park

    8 May 2025

    Commentary
    Colin Foreman
    Editor

    Ever since Aldar Properties first launched the Yas Island project with its Yas Marina Circuit for the Abu Dhabi Grand Prix in 2006, Abu Dhabi has been steadily adding theme parks to the island’s roster of attractions. First, there was the Ferrari theme park, then came a water park, a Warner Bros theme park and, most recently, SeaWorld. 

    The theory with theme park development is bigger is better. 

    A destination needs a series of parks to create a critical mass to attract visitors who can stay and enjoy multiple parks in one visit. The example always cited is Florida, which is home to many of the world’s largest theme parks, including Disney World. 

    The theory gained particular traction in the region when Dubai Parks and Resorts opened. The company, which was public until it was acquired by Meraas in 2021, reported significant losses as it struggled to attract enough visitors.

    Although it opened with Legoland, Legoland Waterpark, Motiongate and Bollywood theme parks, insiders said that the problem with the development was that it did not have enough attractions to turn it into a successful theme park destination. 

    The financial performance of theme parks on Yas Island has not been publicly disclosed. While it is accepted that they have been more successful than their counterparts in Dubai, some say that the island still does not have the critical mass required to establish itself as a global destination for theme park visitors.


    Miral has developed a series of theme parks and other entertainment-related attractions on Yas Island 

    Enter Disney

    Disney changes that. It is the largest brand in the theme park space and will be a major attraction, but with limited information released on the project so far, it is difficult to fully gauge how significant the project will be. 

    The official release said that the project will be developed and operated by Abu Dhabi developer Miral, adding that Disney’s in-house design and engineering unit, Walt Disney Imagineering, will lead creative design and operational oversight to provide a world-class experience. It did not give any details on the ownership of the project. 

    In Hong Kong, for example, a company, Hong Kong International Theme Parks, was established as a joint venture, with the Government of Hong Kong holding 57% and The Walt Disney Company holding 43%. 

    In Japan, the structure is different. The Tokyo Disney Resort is owned and operated by Oriental Land, and the company pays licences and royalties to The Walt Disney Company.

    In interviews following the launch announcement, Miral CEO Mohamed Abdalla Al-Zaabi confirmed the arrangement will be like Tokyo. 

    Waterfront location

    The official release for the Abu Dhabi launch also said that the project is on Yas Island, which only has limited areas of land to develop. The release also said that the land is waterfront, and imagery in the launch video shows the Abu Dhabi skyline in the background, suggesting the land is on the northern waterfront of Yas Island. 

    There is a substantial tract of undeveloped land on the north shore of the island, which measures about 13 square kilometres (sq km). This is larger than the 4 sq km site that Hong Kong Disneyland occupies, but much smaller than Disney World in Florida, which spans an area of 111 sq km – nearly five times the size of the whole of Yas Island and nearly double the size of Abu Dhabi Island.

    The hope is that Yas Island will become a leading global theme park destination and attract large numbers of visitors wanting a holiday with multiple theme park visits

    Exclusivity clause

    Another area of interest will be whether Abu Dhabi has an exclusivity agreement with Disney for the region. No exclusivity was mentioned at the launch, but in Hong Kong, the issue became contentious when Disney announced plans to build a park shortly after Disneyland Hong Kong opened. Local politicians criticised the Hong Kong government for not including an exclusivity clause in its deal with Disney. 

    Tourism gateway

    Like Hong Kong, Abu Dhabi is a smaller economy sitting next to a larger regional player. With Saudi Arabia’s ambitious Vision 2030 strategy and its existing roster of theme park developments at Qiddiya, which includes a Six Flags, a water park and a Dragon Ball Z theme park, developers in Riyadh would likely be keen to have a Disney theme park, too. 

    For now, with Disney on board in Abu Dhabi, the hope is that Yas Island will become a leading global theme park destination and attract large numbers of visitors wanting a holiday with multiple theme park visits.

    The potential is certainly there. During the project launch, Disney highlighted that the UAE is located within a four-hour flight of one-third of the world’s population, making it a significant gateway for tourism. It is also home to the largest global airline hub in the world, with 120 million passengers travelling through Abu Dhabi and Dubai each year.

    If that potential is realised, then the bigger is better theory will be proved right. If the park’s performance disappoints, then it will suggest the region is not such a great destination for theme parks after all. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13840555/main.gif
    Colin Foreman
  • Firms bag $850m Qatar substation contracts

    8 May 2025

    Four local and international firms have won contracts for the construction of seven high-voltage substations in Qatar.

    State-backed Qatar General Electricity & Water Corporation (Kahramaa) signed the contracts, which have a total combined value of approximately QR3.1bn ($850m), with the following firms:

    • Elsewedy Cables Qatar Company (local/Egypt)
    • Voltage Engineering (local)
    • Best/Betas Consortium (Turkey)
    • Taihan Cable & Solution (South Korea)

    Kahramaa said the projects aim to “meet electrical network demand in light of the country's fast-growing …urban development”.

    The contracts include the provision and installation of underground cables and overhead lines extending around 212 kilometres to connect these substations.

    Qatari companies won the largest share, equivalent to 58.4% or QR1.8bn, of the total contract value.

    This reflects “our great confidence in the capabilities of the local private sector and its pivotal role in achieving our development vision and achieving Qatar National Vision 2030”, said Kahramaa president Abdulla Bin Ali Al-Theyab.

    Qatar Minister of State for Energy Affairs, Saad Sherida Al-Kaabi, and senior executives from Kahramaa and the contracting firms signed the deals at a ceremony held in Doha.

    Al-Kaabi said the projects will help “ensure our networks' continued and sustainable ability to accommodate the unprecedented growth of the power sector and meet the increasing electricity demand”.

    Kahramaa said the contractors will undertake the construction of electrical substations and the connection of cables and overhead lines, as well as the development of some existing substations to increase their capacity.

    Qatar has been ramping up its power generation capacity in recent years.  

    Qatar's Emir, Sheikh Tamim Bin Hamad Al-Thani, inaugurated the Ras Laffan and Mesaieed solar photovoltaic (PV) power plants on 28 April.

    The two plants have a combined capacity of 875MW and will more than double Qatar’s solar energy production to 1,675MW.

    In February, Qatar Electricity & Water Company (QEWC) and Kahramaa signed a power-purchase agreement for a 511MW peak electricity generation plant at Ras Abu Fontas, which will have a total cost of approximately QR1.6bn. The peak power plant is scheduled to become operational by January 2027.

    A consortium led by South Korea's Doosan Enerbility, and that includes Beijing-headquartered PowerChina, will undertake the Ras Abu Fontas peak power plant's engineering, procurement and construction contract, with Germany's Siemens Energy supplying the plant's gas turbines.

    Photo credit: Kahramaa

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13838850/main.jpg
    Jennifer Aguinaldo
  • OQ to take interest in Oman renewable projects

    8 May 2025

    OQ Alternative Energy (OQAE), part of Oman’s state-backed energy group OQ, will be taking shares in Oman’s renewable energy independent power projects (IPP), starting with the Ibri 3 solar scheme.

    “The direction seems to be for OQ Alternative Energy to own up to 25% shares in the upcoming solar and wind IPP projects in the sultanate,” says a source familiar with the plans.

    Before this development, private developers and investors owned the total shares in such projects, similar to the existing structure in Saudi Arabia.

    With this policy change, Oman will now be more closely aligned with the existing project structure in the UAE, where either Abu Dhabi National Energy Company (Taqa), Abu Dhabi Future Energy Company (Masdar) or the state utility, Dubai Electricity & Water Authority (Dewa), owns stakes in these projects.

    However, OQAE’s planned 25% ownership share will be slightly lower than the typical 40% to 60% shares that Taqa, Masdar or Dewa owns in the UAE’s renewable energy IPP projects.

    Currently, OQAE owns a 51% share in three renewable energy projects being developed in partnership with France’s TotalEnergies for the state-backed firm, Petroleum Development Oman (PDO).

    The Riyah-1 and Riyah-2 wind power plants will be located in the Amin and West Nimr fields in southern Oman, while the North Solar project will be situated in northern Oman.

    Each plant will have a capacity of 100MW, Total Energies announced in December.

    PDO will purchase the electricity from the plants through long-term power-purchase agreements with the developer team, whose 49% shares are owned by TotalEnergies.

    OQAE is also part of Hyport Coordination Company, a consortium comprising Belgium’s Deme Concessions and BP Oman. The consortium plans to develop a green hydrogen project in Duqm that can produce more than 50 tonnes a year of green hydrogen in its first phase by 2029.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13838800/main.jpg
    Jennifer Aguinaldo
  • Data centres churn investments

    8 May 2025

     

    Global investment firm KKR appointed retired US Army general and former Central Intelligence Agency director David Petraeus as chairman of its Middle East operations in mid-April.

    The move is indicative of the region’s importance as a destination for the firm’s future investments, and capitalises on the strength of the relationships Petraeus has forged with Gulf country leaders during his years as a top US military strategist.

    KKR’s most recent commitment in the region entails acquiring a stake in UAE-based Gulf Data Hub (GDH), which operates seven data centres in the UAE and Saudi Arabia. The UAE firm plans to build additional data centre facilities in Kuwait, Qatar, Bahrain and Oman, and KKR has committed to support its $5bn expansion plan.

    “[Petraeus' appointment] is a good move on their part. It reinforces the region’s growing status and importance as a data centre investment destination, due to a significant interest in artificial intelligence (AI) deployments,” says a senior executive with an international data centre operator.

    KKR’s prior investments in the region include a partnership with Abu Dhabi National Oil Company (Adnoc) in 2019 to create Adnoc Oil Pipelines, and acquiring a portfolio of commercial aircraft from Abu Dhabi’s Etihad Airways in 2020.

    The private equity firm’s investment in GDH, however, shows only part of the picture as far as the rapidly evolving data centre investment landscape is concerned.

    In March, Abu Dhabi-based critical infrastructure-focused sovereign investor ADQ and US-headquartered power developer Energy Capital Partners agreed to establish a 50:50 partnership to build new power generation and energy infrastructure that will serve the long-term needs of data centres and industrial clusters in the US and selected other international markets.

    The two firms plan to make total capital investments of more than $25bn across 25GW-worth of projects. The combined initial capital contribution from the partners is expected to amount to $5bn.

    That announcement came a day after UAE National Security Adviser and Deputy Ruler of Abu Dhabi, Sheikh Tahnoon Bin Zayed Al-Nahyan, met with US President Donald Trump at the White House. During the meeting, the UAE is understood to have committed to a 10-year, $1.4tn investment framework for the US.

    Tech funds

    In the past 24 months, Abu Dhabi and Riyadh in particular have set up funds, sometimes in partnership with global firms, to invest in AI and data centre infrastructure, both domestically and abroad.

    Abu Dhabi’s MGX aims to build $100bn in assets under management within a few years, along with US-headquartered and Blackrock-backed Global Infrastructure Partners and Microsoft, the fund's key partners. It is part of the US’ Stargate consortium, which aims to mobilise up to $500bn to build AI infrastructure in the US over the next four years.

    In Riyadh, a $100bn AI initiative known as Project Transcendence is expected to invest in data centres, technology startups and other related infrastructure for the development of AI.

    US-based Silver Lake announced in March 2025 that, together with MGX, it has become a minority shareholder in state-backed, Abu Dhabi-based Khazna Data Centres, one of the region’s largest data centre operators.

    In 2023, Saudi sovereign wealth vehicle the Public Investment Fund (PIF) partnered with US-based DigitalBridge to develop data centres in Saudi Arabia and across the GCC states.

    In early 2025, Saudi Arabia-based DataVolt – which is owned by Vision Invest, a major shareholder in Saudi utility developer Acwa Power and a public-private partnership advocate – signed a preliminary agreement to build a data centre in Neom, Saudi Arabia. The $5bn facility, with an initial phase of 300MW, is the first of many such schemes that DataVolt is planning.

    Not to be outdone, the founder of Dubai-based private real estate developer Damac pledged to invest $20bn in data centre projects in several US cities earlier this year.

    And there is more to the growing – if outsized – number of bidirectional data centre-focused investment flows than meets the eye.

    Given the global AI race and mounting competition, investment decisions regarding data centres are moving from a simple, commercial focus to account for complex geopolitical considerations, according to Jessica Obeid, a partner at Dubai-headquartered New Energy Consult.

    “As the US weaponises its technological advancements, decisions to invest in US-based data centres hedge against the risks of US export controls, positioning developers in proximity to suppliers, ensuring reliable access to components.

    “Yet, this access could become costlier, driven by trade tariff wars, heightened regulations and limited access to grid infrastructure,” Obeid says.

    She adds that the GCC is quickly positioning itself as a global digital hub, driven by cost-competitive energy, advanced infrastructure and strong government backing.

    “Proximity to reliable power supply at an affordable cost, and speed in licensing processes and grid connections, are increasingly becoming strategic factors in data centre deployment – and the GCC offers that.”

    Powering AI strategies

    Almost all of the GCC states have formulated AI strategies that aim to improve operational efficiencies, create jobs and support their energy transition and net-zero initiatives.

    As a result, analysts expect the region to register double-digit annual growth in data centre construction activities in the next few years.

    In a recent update, global consultancy PwC projected that the Middle East data centre capacity could triple from 1GW in 2025 to 3.3GW in five years’ time.

    According to data from regional projects tracker MEED Projects, as of April, an estimated $12bn-worth of data centre construction projects are in the planning stage, in addition to over $820m under bid and $7bn under construction.

    Li-Chen Sim, assistant professor of civil security at Abu Dhabi’s Khalifa University, says that AI investments are, on the one hand, “all part of a carefully conceived strategy to … diversify out of a hydrocarbons-driven economy, to create new revenue streams from overseas data centres, build new growth sectors, support business requirements and offer more knowledge-based jobs as opposed to traditional manufacturing from domestic investments”.

    On the other hand, AI investments also aim to future-proof the hydrocarbons sector, which Sim expects will continue to be a significant driver of growth, revenue and exports, even as the use of renewable power grows.

    However, the ability of Gulf states to execute their plans for leveraging AI to diversify economies and create jobs –and specifically to address youth unemployment – depends on two factors, according to Obeid.

    The first factor is the ability of countries to advance their AI goals from infrastructure to capital and partnerships. The second involves the speed with which they can build up adequate human capital and a skilled workforce.

    “We will have to see how governments align their educational curricula with the AI policies and electricity infrastructure development,” she says.

    Ecosystem investment

    AI and data centre investments go beyond the facilities that house thousands of advanced graphics processing units, miles of cables and many cooling systems. To run and execute applications – particularly AI inferencing tasks – data centre facilities require a substantial amount of energy. 

    Moreover, data centres in the Middle East and North Africa region face elevated environmental risks due to the high ambient temperatures, which increase energy demand for cooling, as well as water requirements.

    This presents both a challenge and an opportunity, according to Obeid. "The GCC has an opportunity to advance innovation in energy and cooling technologies. Liquid cooling is necessary for AI workloads, and small modular reactors will become central in these data centres.” 

    In January, Abu Dhabi’s Emirates Water & Electricity Company (Ewec) appeared to show the way with a plan to build a round-the-clock solar photovoltaic (PV) plant combined with a battery energy storage system (bess) facility.

    The 5.2GW solar PV and 19 gigawatt-hour bess plant is expected to deliver renewable power as baseload, and UAE President Sheikh Mohamed Bin Zayed Bin Sultan Al-Nahyan has said that the project will help power advancements in AI and emerging technologies, and support the delivery of the UAE National AI Strategy 2031 and 2050 Net Zero initiative.

    Sim agrees that renewables combined with battery storage is part of the answer when it comes to building sustainable data centres. “Globally, data centres consume about 1% of electricity, and this figure – together with carbon emissions by data centres – is expected to grow significantly.”

    He notes that Goldman Sachs Research forecasts that global power demand from data centres will increase 50% by 2027, and 165% by the end of the decade, compared to 2023.

    “The other part of the puzzle with regard to sustainability is water consumption by data centres, particularly those in the Gulf, where high temperatures necessitate even more cooling measures.

    “Singapore, for instance, has pioneered integrated water systems that recycle treated wastewater for reuse – and this circular water model could be an option for data centres in the Gulf, instead of using expensive desalinated water,” says Sim.

    As things stand, the GCC can play a key role in the advancement of these and other technologies, along with efficiency measures and the optimisation of server utilisation through AI applications such as digital twins, says Obeid.

    This is just as well, since the region appears to be on the cusp of a boom in inbound and outbound investments that will build data centre capacity abroad and closer to home.

    “We are at a pivotal moment for innovation, where the intersection of digital advancements and energy innovation could position the GCC as a global leader, shaping the future of sustainable digital infrastructure,” concludes Obeid.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13732105/main5907.jpg
    Jennifer Aguinaldo
  • Diriyah floats museum tender

    8 May 2025

    Saudi gigaproject developer Diriyah Company has tendered a contract to build the new iconic museum in the DG2 area of the Diriyah project in Riyadh.

    MEED understands that the tender was issued in April, with the bid submission deadline in June.

    Diriyah completed the prequalification process for the project in February this year.

    Diriyah Company is expected to award more multibillion-dollar contracts this year. In April, MEED exclusively reported that the client had awarded an estimated SR4bn ($1.1bn) contract for a utilities relocation package for the King Salman University (KSU) project located in the second phase of the Diriyah Gate development (DG2).

    The contract was awarded to the joint venture of Beijing-headquartered China Railway Construction Corporation and China Railway Construction Group Central Plain Construction Company.

    Last month, MEED also reported that the company had awarded an estimated SR5bn ($1.3bn) construction deal to build the Royal Diriyah Opera House.

    The contract was awarded to a joint venture of local firm El-Seif Engineering & Contracting, Beijing-headquartered China State Construction Engineering Corporation and Qatari firm Midmac Contracting.

    Tendering activity is also progressing on several other major schemes at Diriyah, including the King Khalid Road project, which passes through the development. The client received bids from firms in the second week of April for the main construction works on this project.

    The client is also expected to finalise the contract award shortly for the Arena Block assets in the Boulevard Southwest section in the DG2 area.

    Diriyah gigaproject

    The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

    The company awarded several significant contracts last year, including three contracts worth over SR21bn ($5.5bn). These included an estimated $2bn contract awarded to a joint venture of El-Seif Engineering & Contracting and China State to build the North Cultural District.

    In late July, Diriyah also awarded a $2.1bn package to a joint venture of local contractor Albawani and Qatar’s Urbacon to construct assets in the Wadi Safar district of the gigaproject.

    In December, MEED reported that Diriyah Company had awarded an estimated SR5.8bn ($1.5bn) contract to local firm Nesma & Partners for its Jabal Al-Qurain Avenue cultural district, located in the northern district of the Diriyah Gate project.

    Once complete, Diriyah will have the capacity to accommodate 100,000 residents and visitors.

    MEED’s April 2025 report on Saudi Arabia includes:

    > GOVERNMENT: Riyadh takes the diplomatic initiative
    > ECONOMY: Saudi Arabia’s non-oil economy forges onward
    > BANKING:     Saudi banks work to keep pace with credit expansion
    > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
    > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
    > POWER: Saudi power sector enters busiest year
    > WATER: Saudi water contracts set another annual record
    > CONSTRUCTION: Reprioritisation underpins Saudi construction
    > TRANSPORT: Riyadh pushes ahead with infrastructure development
    > DATABANK: Saudi Arabia’s growth trend heads up

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13838747/main.jpg
    Yasir Iqbal