Generational Changes In The Gulf Business Milieu

14 Sept, 2002

If, as the wag said that "the only thing constant is change and the only thing certain is death", then, generational changes must come a close third; particularly in terms of their impact on the businesses and on the geo-political worlds. Sociologists will want to study this as part of their scientific enquiry into the Arab economic ethnicity! What is fascinating however, are the emergence of certain clear trends in the region's business landscape and it would be interesting to track and comment on.

The first is the clear essence of public bickerings in commercial and policy matters. At the senior level and anywhere in the region, this is rarely an issue and this rancour-free policy dialogue has something to do with a caring and compassionate leadership, conscious of the need to foster economic growth in their countries and yet reconcile conflicting points of view smoothly, while maintaining strong centres of authority. There are often, some robust differences of views expressed gently but the general theme has been one of developing consensus and identifying viable action plans. Besides, once the powers that be, make a decision, it is a case of all "hands to the pump", to make the decisions / projects a success. Mercifully none of the analysis - paralysis or constant sniping at or sabotaging of each others' efforts found in the developing world democracies are noticed in this region. In the GCC, there are hardly any instances of confrontation, if at all any. Partly, this is a result of the strong traditional influence, the Majlis-type consultative processes; where decisions are not made in a hurry but only after deferring to others' points of view; while eschewing egos.

Some external media observers deride the spectacular progress in the GCC as a leap 'from a camel to cadillac syndrome'. But there is a perceptible change in the ways in which things are decided among the youth in the region. Many of the young managers are U.S. or Western educated and have seen a totally different approach towards work ethic and decision-making. Individuality triumphs over collectivism and they are no longer low-key, as used to be the case with their fathers and forefathers. Some are decidedly more assertive and aggressive, not just in their actions but in articulating their opinions, in a high profile, media-savvy manner.

In the region, generally there are two emerging economic / operating styles - one of dynamic actions; accompanied by much hype and hoopla. On the other hand, many countries and decision-makers in the region shun publicity and let things happen at a more leisurely pace. Authority tends to be somewhat centralised and many governmental officials prefer not to draw much attention to themselves and stay out of the public eye. It is difficult to say which is the more effective or successful way, the high profile ones' or that of the quiet but powerful operators. In the case of the latter, the fiscal pressures may not be there, especially, if they have huge wealth being generated from oil reserves and from the reinvestment of external financial reserves.

Another noticeable trend relates to cross-cultural attitude. Earlier generations thrived in contact with the populace in the Arab, African and Asian region; including the hinterlands of Iran, India and East Africa. Those historic ties are gradually getting quite a bit loosened. Because of their educational background and fast-paced work and life styles, the new generation in the GCC, favour contact and relationship with Western corporations and citizens. The earlier contacts with the erstwhile Eastern counterparts were in businesses that are now regarded as not being fully above board. For instance, the so called 're-export' activities involved ignoring the importing countries' rules and regulations and thus represented a genre of high risk commerce - be it in the gold, textile, electronics and other trading activities. Since the oil boom, this has given way to a more global economic mix of manufacturing, industrial, travel, tourism and technology companies and clusters of professionals - legal, accounting, technical, medical etc. Thus the old Suk-style, unorganised activities have yielded place to more respectable business pursuits.

Again the new generation of young nationals in this region feel much more comfortable having Microsoft, IBM, Oracle, Reuters and the names of other big Western corporations dazzling on their dashboard of business activities. This represents a substantial shift in the business milieu and cultural mores in the last few decades and impacts the way businesses are now managed. Whenever symposia or seminars are arranged, the natural preference is to invite intellectuals or professionals from the developed world (even if they are relatively low-placed in the hierarchies of global companies). To some, these provide a "veneer of world class quality"; despite the past relationships with the Orient! Some say that this approach is a Freudian wish to be seen to be mingling with the best of breed and some almost feeling embarrassed about their fathers' and grandfathers' ties with businesses and persons from the Eastern world. Some cynically label all this as a colonial hangover and logical reaction; given that the lowest common denominators in terms of unskilled and semi-skilled labour, will preclude nationalities that are preponderant in some menial and low level jobs in the country; especially after the oil bonanza and affluence attracted the developed nations' attention to this part of the world. Some in the older generations naturally frown on these tendencies of opening up economies and establishing contacts with the new found friends, because they still believe that when it will come to the crunch, the traditional friends and the old-time allies will be the ones who will stand by and that others are fair weather friends with mercenary / commercial interests at heart. There is arguably, some justification in all this, but in the business world, there is the question of acceptance in the global community that comes through networking on a higher and loftier plane!

Yet another general change concerns quality and organisation. Well established corporations and businesses spot opportunities and make quicker decisions. Unfortunately, cronyism and bureaucracy being so rampant in the Orient, they are not able to leverage upon the close relationships and the goodwill that prevailed in the past.

Another generational change that we are witnessing is the withering of the dubious reputation that surrounded businesses in the yesteryears. Refreshingly, this has given way to much more transparency and disclosure. Going forward, good corporate and geo-political governance will be major areas; where the younger generation of regional leaders and decision-makers will make a distinct difference and contribute to a healthier economic environment. Because of their training and educational background, they will mingle and fit in easily and well into the 'global village' and cope with the change and challenges that the financial markets and e-businesses will, no doubt, sweep this part of the world. While some may have nostalgia for the simplicity and sensitivities of the past, it is only natural and right that successive generations give way to a fresher thinking from the younger inheritors of the business legacy. Hopefully the latter will avoid the mistakes made by their elders and there will be support and safe counsel from the greying / fading generations.

(The author (sureshk@emiratesbank.ae) is a General Manager in Emirates Bank Group. The views expressed in this article are not necessarily shared by the Bank.)

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