Co-ordination and harmony among local and expatriate workers are key to maintaining a company's growth. Patrick Eckersley / arabianEye
Co-ordination and harmony among local and expatriate workers are key to maintaining a company's growth. Patrick Eckersley / arabianEye
Co-ordination and harmony among local and expatriate workers are key to maintaining a company's growth. Patrick Eckersley / arabianEye
Co-ordination and harmony among local and expatriate workers are key to maintaining a company's growth. Patrick Eckersley / arabianEye

Question of leadership shifts from "who" to "how"


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There is a sensitive and delicate question that is whispered among employees and managers throughout the GCC: "Who is a better leader, the expatriate or the local?"

Locals are exasperated by the manners and approach of foreigners who bring with them an attitude of superiority. In those instances, expatriates are generally perceived as arrogant and inconsiderate individuals who cannot succeed in the region because they do not understand the way business is conducted locally.

Nationals may even share the view that a foreigner can never be a good leader because he or she "does not make the effort to understand the culture". And, therefore, the perception is that a western leader will not act properly in formal meetings, or worse, will not know how to negotiate with powerful local clients and suppliers.

On the other hand, there are numerous expatriates, from countries such as South Africa, Australia, the UK and the US, who quietly express frustration with the way business is conducted in the GCC. They complain that their managers do not know how to lead. A common question asked is: "How do companies manage to make money working as they do?"

So, who is the better leader?

Perhaps we are asking the wrong question. In only a decade, sandy deserts were transformed into modern and sophisticated cities through aggressive ambitions requiring a workforce dramatically expanded in size and capability. Additionally, the workforce growth is out of sync with indigenous population growth. This creates a near-term imbalance of available workers for the workforce. With the exception of Saudi Arabia, the limited local population in Gulf states compared with private and public-sector ambitions means there is a huge need for expatriates.

Given this reality, the question needs to shift from "Who is the better leader?" to "How can one be the best leader?"

Organisations must embrace an approach that maximises the capability from nationals and expatriates while adapting to the unique and diverse work environment in the region.

Gulf countries rank among the most competitive in the world, yet they are facing increasing global competition. While the pressure to reduce dependence on an expatriate workforce in the long term is understandable, it is imperative for companies to understand how to create the optimal operational environment and propel employee performance in the short term to maintain growth. In a climate of fierce competition for resources, market share and talent, the region's economic development depends on accomplishing those two tasks.

The first step for becoming an effective leader in this environment is to recognise the cultural differences between team members and make the best use of the variety of backgrounds. The second step is to provide great clarity. All over the world, employees long for clarity in direction and task from their leaders. In a multicultural environment, this becomes even more of an imperative. The final step is to take a hands-on role in employee growth. While these steps are commonly given lip service, successful leaders in the GCC must put them into action.

The GCC requires that organisations have a strong cadre of leaders capable of guiding and motivating employees to respond to the fast-changing demands of the market. The most successful leaders are those whose traits are a combination of the home-grown and the imported.

Dr Tommy Weir is an authority on fast-growth and emerging market leadership, and is the author of The CEO Shift

Fight card
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  • Julaidah Abdulfatah (Saudi Arabia) beat Martin Kabrhel (Czech Rep) POINTS
  • Kem Ljungquist (Denmark) beat Mourad Omar (Egypt) TKO
  • Michael Lawal (UK) beat Tamas Kozma (Hungary) KO​​​​​​​
  • Zuhayr Al Qahtani (Saudi Arabia) beat Mohammed Mahmoud (UK) POINTS
  • Darren Surtees (UK) beat Kane Baker (UK) KO
  • Chris Eubank Jr (UK) beat JJ McDonagh (Ireland) TKO
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MATCH INFO

Burnley 0

Man City 3

Raheem Sterling 35', 49'

Ferran Torres 65'

 

 

COMPANY%20PROFILE
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding

Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.

Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.

Until the end of Ramadan, the iftar events take place from 7pm until 9pm, from Saturday to Thursday. Advanced booking is required.

For more details, email openminds@cultures.ae or visit www.cultures.ae

 

Water waste

In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.

Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.

A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.

The Emirates is the world’s third largest per capita water consumer after the US and Canada.

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  • DLD registration fee can be paid through banks or credit cards at zero interest rates

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