Survey Reveals Dubai Family Businesses Prioritize Expansion And Technology

The Dubai Centre for Family Businesses, under the auspices of Dubai Chambers, has recently unveiled insights from a comprehensive survey conducted in collaboration with global consulting firm PwC. This survey sought to delve into the perspectives, ambitions, and strategic inclinations of the forthcoming generation of family business leaders in Dubai. With participation from 889 respondents across 63 countries, including a contingent from Dubai, the study sheds light on the evolving landscape of family enterprises and the strategic paths preferred by their future stewards.

According to the 2024 survey findings, the next generation of family business members in Dubai places a high emphasis on diversifying into new sectors and markets over the next two years. This goal is closely followed by a focus on business development and the integration of new technologies. This contrasts with global trends where business development takes precedence, followed by market expansion and talent management. Notably, attracting and retaining top young talent emerges as a significant priority worldwide.

The survey highlights a distinct ambition among Dubai's future business leaders to venture beyond traditional boundaries, indicating a robust drive towards innovation and growth.

A striking revelation from the survey is the widespread interest in generative Artificial Intelligence (AI) among Dubai's young family business members. An impressive 87 percent expressed keen interest in leveraging generative AI to foster innovation and enhance operational efficiency within their enterprises, surpassing the global average of 82 percent. Furthermore, respondents from Dubai demonstrated a higher familiarity with generative AI technologies compared to their international counterparts.

The anticipated impact of generative AI on business operations is significant, with around 32 percent of Dubai's respondents optimistic about its potential to boost profitability within a year—again outpacing the global average.

Succession Planning Insights

The survey also sheds light on succession planning within Dubai's family businesses. While 42 percent of respondents are aware of existing succession plans, many have not been involved in their development. Despite this, there is a clear understanding among participants regarding family protocols and constitutions. Concerns about the current generation's readiness to retire pose challenges for succession processes, according to 45 percent of respondents.

Participants recognize AI's potential to enhance operational efficiency, employee productivity, and customer experience. Moreover, AI is seen as a driver for technological adoption, digital workforce capabilities enhancement, and overall business growth.

Family Values and Leadership Aspirations

The survey underscores a strong alignment with family values and goals among Dubai's next-generation business members. A majority express eagerness to take on leadership or governance roles within five years. There is also an optimistic outlook on career prospects within their family businesses, highlighting opportunities for learning and growth.

This comprehensive survey offers valuable insights into the priorities and aspirations of the next generation of family business leaders in Dubai. Their focus on expansion, technology adoption, and innovation positions them well for future success in an increasingly competitive global landscape.

With inputs from WAM