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Gulf Business
a day ago
- Business
- Gulf Business
MENA's moment: A region becoming a core pillar across asset classes
Image: Supplied 'The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday's logic.' – Peter Drucker The global investment playbook is being quietly, yet decisively, redrawn. No longer relegated to the margins or regarded merely as a 'must-visit' stop for capital raising, the Middle East is asserting its place on the global stage. What was once viewed as a subset of emerging markets is now standing firmly on its own: a region of rising strategic significance across public and private markets, infrastructure, real assets, and venture capital. Structural reforms driving real economic power The numbers tell a compelling story. Gulf sovereign wealth funds now manage approximately $12tn globally as of 2024, with forecasts pointing to $18tn by 2030 (Deloitte). To put this in perspective, that represents nearly two-thirds of China's entire GDP and over 40 per cent of US GDP. These funds are no longer passive pools of petrodollars; they have become strategic investment vehicles actively shaping global market dynamics. At the heart of MENA's transformation is economic diversification. Nations such as Saudi Arabia and the UAE are pushing well beyond oil dependency, guided by forward-looking visions like These comprehensive strategies emphasise industrial expansion, digital transformation, clean energy, tourism, logistics, financial services, advanced manufacturing, healthcare, education, and knowledge-based sectors. This diversification is supported by institutional reforms, improved regulatory frameworks, and financial infrastructure modernisation that together are driving investor confidence. Market activity and institutional depth MENA's capital markets are gaining in both scale and sophistication. In 2024, the region saw 54 IPOs raise $12.6bn (EY). Meanwhile, the GCC bond market surged, with a 71 per cent year-on-year increase in issuances. The total GCC market capitalisation reached $4.2tn. Momentum continued into 2025. According to EY's These developments are backed by improved institutional infrastructure. Exchanges have adopted global standards, regulatory regimes have become more transparent, and financial free zones offer globally competitive environments. Governance and oversight now match international benchmarks, creating conditions that are attracting long-term institutional capital. Sectoral evolution and strategic growth Diversification is not only occurring at the macro level. MENA's sectoral landscape is expanding rapidly. Fintech is one of the standout sectors, with more than 1,000 firms now active and four unicorns already in existence (McKinsey). Between 2023 and 2024, $1.9bn was invested in 237 fintech deals, driven by progressive regulation and digital penetration. The energy transition is another defining theme. The region is leveraging its natural advantages in solar and wind to become a global leader in renewable energy. Saudi Arabia's renewable capacity is projected to surpass that of many European nations within the decade. Egypt, Morocco, and the UAE are also developing large-scale solar and wind assets, with support from both public and private investment. Technology and innovation remain central to MENA's strategy. The UAE expects artificial intelligence to contribute 14 per cent of its GDP by 2030. It is launching the Stargate AI campus in partnership with OpenAI, Oracle, Nvidia, and Cisco – part of over $2tn in committed regional investments including those from Saudi Arabia and Qatar. Demographics, fiscal discipline, and domestic capital formation The region's young, increasingly educated population is a key growth driver. This demographic dividend is translating into rising demand for housing, healthcare, infrastructure, and digital services. Governments are also fostering retail investor participation through financial literacy programs and accessible investment platforms, which is helping to deepen domestic capital pools and support market liquidity. Underpinning this progress is a remarkably resilient fiscal foundation. Most Gulf economies are currently operating with positive fiscal balances, buoyed by strong commodity prices, particularly in oil, metals, and petrochemicals. Importantly, the commodities supercycle has not triggered a return to past complacency. Austerity measures introduced during the COVID-19 pandemic, including subsidy rationalization and VAT implementation, remain largely in place, demonstrating a discipline that strengthens long-term investment credibility. At the heart of this evolving landscape, asset management firms like ASB Capital are stepping into a pivotal role – bridging investor needs with on-the-ground insights to help unlock value on both sides of the equation: channelling regional growth to the world and directing global capital into the region's most transformative opportunities. MENA as an integral force across asset classes: No longer a theory The next great investment opportunity is rarely found where everyone is looking – it emerges where fundamentals quietly shift before the world catches on. The case for MENA as a core component of global asset class allocations is no longer speculative. Its economic cycles are increasingly uncorrelated with the West. Its reform trajectory is aligned with global capital priorities. And its return profile is no longer just competitive – it is indispensable. The writer is the senior executive officer of ASB Capital.
Forbes
28-06-2025
- Business
- Forbes
Why Your Work Culture Deserves Tender Loving Care
. Pixabay Culture, it's been said, is how employees' hearts and stomachs feel about Monday morning on Sunday night. If you're a leader in your workplace, organizational culture is arguably the only sustainable competitive advantage that's completely within your control. Is that a big deal? As Peter Drucker famously said, 'Culture eats strategy for breakfast.' Organizational psychologist Laura Hamill has invested her career in studying culture. She was director of People Research at Microsoft and co-founded Limeade, an employee experience software company. Dr. Hamill brings both scientific rigor and practical insight to the topic of culture. Her book is The Power of Culture: Bringing Values to Life at Work . Hamill talks about what she calls the concept of cultural betrayal. 'When a company's aspirational culture differs significantly from the reality that people experience, leaders and organizations quickly lose credibility,' she says. 'People are acutely aware when leaders aren't walking the talk, and a sense of cultural betrayal can take root. Employees understandably feel resentful when what they were 'sold' about an organization is not what they receive—and this can have a significant impact on employees, especially in mission-driven companies.' Hamill says the impact of perceived cultural betrayal can run deep, generating negative feelings about the company, withdrawal behaviors (such as not participating in company meetings and events), and increased employee attrition. 'By contrast,' she says, 'when the aspirational culture is clearly articulated and consistent with what employees experience, intentional culture is alive and well. Unfortunately, many organizations tend to stop their culture work after they have posted their values on their website, not realizing that they are only at the beginning of the journey.' Laura Hamill . She also talks about power and culture. 'The value placed on power within an organization influences the extent to which power shapes its culture,' she says. 'Shared power and its distribution among leaders, managers, and employees also play a significant role in reinforcing specific aspects of culture.' Hamill says leaders are crucial in shaping organizational culture, serving as role models and culture architects. 'They must be aware of their power and intentional about their actions and communications,' she says. 'However, leaders often lack awareness of their power and how their actions, even small ones, can be misinterpreted as cues about what's valued in the organization. As 'culture megaphones,' leaders' explicit and implicit messages significantly impact the organization's values and priorities. So, to understand culture, you must also understand power.' Hamill uses the term 'intentional culture' to emphasize the importance of deliberate focus on the mindsets and behaviors that produce desired outcomes. 'Most organizations are not intentional about their culture and don't work to have an explicit connection between what they are trying to achieve and the culture they have,' she says. 'If you aren't intentional about your culture, it's unlikely that it's working to your advantage.' 'Toxic culture' seems to be a popular term these days. Is that just a new term for an old problem, or are there actually more cultures that are problematic? 'I think toxic cultures have always been around, but maybe we have more awareness about them and—thank goodness—less tolerance for them now,' Hamill says. 'Also, I think now we are articulating and sharing the impact toxic culture is having on people and organizations.' What are the tell-tale signs that an organization's culture has become toxic? There are several key indicators to watch for, Hamill says. 'One of the most obvious signs is a high turnover rate, particularly among those who have the ability to find employment elsewhere. They are often the first to leave, seeking better opportunities and a more positive work environment. However, even before employees make the decision to depart, there are early warning signs that can signal a toxic culture. You may notice withdrawal behaviors, such as a decline in participation and engagement. Employees may start to skip company meetings or events, finding reasons to avoid participating. When they do attend, they may be hesitant to speak up, ask questions, or contribute to discussions. This silence can be a red flag, suggesting that employees feel uncomfortable or unheard.' . . Hamill says another concerning indicator is a growing sense of apathy among the workforce. 'When employees lose enthusiasm for their work and seem to be merely going through the motions, it can be a sign that they have become disengaged and disconnected from the company,' she says. 'This apathy can be contagious, spreading throughout the organization and eroding morale. I look for signs in the language like using 'they' instead of 'we' when talking about the company and saying things like 'That's beyond my pay grade' or 'Not on my job description.' While these signs can be disheartening to witness, recognizing them early is crucial for addressing the underlying issues and taking steps to improve the workplace culture.' For maximum positive impact, how should an organization's culture be aligned with its operational strategy? 'Explicitly,' Hamill says. 'Effective leaders recognize the critical link between culture and business strategy. They understand that a strong, positive culture can be a powerful driver of organizational success, while a dysfunctional culture can hinder progress and performance. By aligning cultural work with the overall business strategy, leaders can ensure that the changes they implement support the company's mission, values, and goals.' Hamill says this strategic alignment helps create a culture that not only engages and empowers employees but also contributes to the organization's competitive advantage and long-term success.
Forbes
23-06-2025
- Business
- Forbes
The Successful CEO In A World Of Uncertainty
Concept for success. Given today's global economic and geostrategic uncertainty, its small wonder CEO turnover, which reached record heights in 2024, continues into 2025*. Managing company and industry risk effectively is increasingly difficult in the midst of major exogenous forces destabilizing the business environment critical to success. As Peter Drucker used to say, the root cause of crisis in every organization is when the assumptions on which the enterprise was built and run no longer fit reality. Surely those assumptions about markets, customers, competitors, and technology are now compounded by greater geopolitical and macroeconomic uncertainty than at any time in the last half century. It would be hard to argue that the assumptions on which most business were built and run are not today in a major state of flux. So the need for CEOs to have dynamic strategic foresight tools to help discern these changes and, to the extent possible, get out ahead of them, is critical to their success. From my extensive interaction with CEOs around the world these days I see three fundamentally different ways CEOs are reacting to these changing assumptions. These different ways of responding to the new global business environment will in large measure, determine whether or not they can succeed, and hence, their longevity. The first group of CEOs I would call 'delusional'. They are clinging on to old realities because that's what they know, are comfortable with, and require the least amount of change. I recall vividly delivering a paper in Davos in 2016 in which I asserted that we were moving from 'globalization to islandization'. But most in the audience clung onto the notion that at best, globalization and integration had reached a bump in the road, believing that globalization was inevitable, immutable and irreversible. Now, nine years later, we know nothing could be further from reality. The second group of CEOs I would call 'mesmerized'. They see dramatic change, challenges and complexity, but they are content to admire the fire. They are either unwilling to change or are frozen in place waiting for the proverbial fog of war to lift and hoping for a return to the status quo ante. The third group of CEOs, and the ones most likely to succeed in a world of continuous, convulsive change, I would call the 'agile'. They are willing to ask the critical questions and put in place strategic foresight and risk management capabilities, as well as rely on a network of informed advisors (which should include their Board of Directors), to provide the peripheral vision needed to be competitive. They establish a dynamic strategy around which they improvise guided by a sophisticated system to monitor early warning signs for changes in their planning assumptions compelling a change in direction. The successful CEO, able to navigate in these chronically uncertain waters, needs also to double down on developing a corporate culture at all levels of the enterprise able to keep their collective ears to the railroad track, monitoring new forces of change potentially affecting corporate operations and competitiveness. As Peter Drucker would say, 'culture eats strategy for breakfast every morning'. Too much attention, often understandably driven by shareholder and financial analyst anxiety, is being placed on the lagging indicators of current performance. Surely good current performance is an indicator of corporate health but largely tells us what a company did six months or even years before that which has yielded current financial performance. More importantly, the successful CEO focuses corporate attention on the leading indicators of likely future performance. This future-focused attention is critically important when the future business conditions are evolving and shifting rapidly. Finally, in this chronically complex and volatile world the temptation in the C-suite is to avoid communicating with stakeholders in the absence of certainty. But some degree of volatility and uncertainty is likely to be steady state as far as the eye can see. This is not an excuse to fail to communicate. In fact, in this environment, the successful CEO communicates more frequently and broadly than ever, authentically sharing their own anxiety, but importantly also informing their stakeholders that corporate strategy is well-tuned to changing direction as conditions might demand. Rather than unsettling employees, shareholders, financial analysts, the CEO who demonstrates an appreciation for business environment volatility accompanied by agile planning and risk management protocols will reassure key stakeholders. In this world of uncertainty, the agile CEO is more likely to succeed than their delusional or mesmerized competitors.
Forbes
26-05-2025
- Business
- Forbes
The New Destiny Of Management: Creating Value Faster
Communication technology with global internet network What will it take to attain the Drucker Forum's goal of turning management into a noble calling that helps create a worthy society? We will need more than piecemeal patches added on to current management thinking. Instead, we need to re-conceive management afresh as the art and science of creating value for others faster. In its HBR article of June 2024, the Drucker Forum suggested that 'The Next Management' should include at least seven aspirations: including innovation more than efficiency, ecosystems more than single institutions, long-term, more than short term, focus, human augmentation, more than automation, management as an art, more than a science, reality grounded more than ideology, and self-renewal capacity, more than revolution.[i] There is nothing wrong with these seven 'fixes' in themselves. They will, however, make little difference if the underlying concept of management involves creating value primarily for the firm, its executives and its shareholders. This traditional concept of management has a long and troubled history. It was assumed by Adam Smith in Wealth Of Nations, (1776), by Fredrick Taylor in The Principles of Scientific Management, (1911), by the U.S. Business Round Table (1997), by most articles in leading management journals even today [ii] Meanwhile, a different approach emerges from following Peter Drucker's advice to 'look out the window and note what is visible but not yet seen.' Over the last quarter century, some firms have already begun implementing the converse of merely making money for the company. Now profits are a result, not the goal. As these new firms found ways to have human concerns modify and drive the processes, practices, and methods of management, they have grown much faster and ironically have made exponentially more money than companies focused primarily on making money. They tend to began with the customer and worked backwards, while also giving thought to all the stakeholders. In so doing, they began to live the new destiny of management: creating value for others. Examples of firms that are mostly pursuing this goal and the results they have obtained in terms of long term returns and workplace satisfaction are included below in Figure 1. They include firms of all sizes and in all sectors in the U.S., Europe and Asia. In one sense, this is like rediscovering the wheel. For millennia, the human race has known that when we create value for others, the true spirit of living is alive in us. Whatever our kind of work, whether it is a business, a team, a family, a community or a political movement, when we embody the spirit of creating value for others, we become inventive, searching, daring, and self-expressing. We may disturb and upset, but we often also open the way for better understanding. What led to the change? It wasn't a sudden moral epiphany on the part of business leaders. It's a recognition by businesses that the world itself has changed. The internet (and now AI) gave rise first, to firms, new possibilities for innovation, and then to customers, more choices, and finally to firms again, the potential of new business models that can generate exponential network effects.[iii] The old way of managing can't keep up. Smart managers saw they had to do something different. While each firm is unique and uses its own language, the underlying management patterns have much in common. Thus Apple talks of a different 'culture'. Microsoft speaks about 'mindset', 'empathy' and 'values.' Amazon focuses on 'leadership principles.' Some firms talked of 'mental models' and 'narratives.' The Agile Manifesto spoke of valuing 'individuals and interactions' more than 'processes and tools.' Despite the differences, they are all about putting people ahead of processes. The new breed of firm generally uses subjective concepts to drive their objective business processes. These mindsets, goals, values, and narratives are the very things that traditional management dismissed in principle. The result has been an upheaval in every aspect of business practices. It can be called a paradigm shift in management, although probably no more than 20% of public firms have yet made the transition. Instead of trying to fix individual issues by adding patches to a framework of traditional management, the fastest growing firms have transformed almost every process so as to form an integrated concept of running a company. These multiple but integrated changes require that managers and staff need to think about work differently. How they perceive the organization is different, as is the language they use in the workplace. Methods, processes and tools don't disappear. But in these firms. it is the mindsets, and values that drive and transform the methods and processes, rather than vice versa. The result is a culture where employees can see meaning in what they do. It is not that the fast-growing firms without flaws. They all need to make continued progress towards creating steadily more value for stakeholders. and avoid backsliding towards self-interest. Lessons For Others Understanding how these fast-growing firms are being managed is the first step for those firms that are still being managed by yesterday's methods and processes. Unless they begin making similar shifts, most will not survive, at least in their current form. And read also: How Creating Value For Others Has Become The Key To Business Success How Networks Of Competence Are Crushing Hierarchies Of Authority Figure 1: Public firms with a track record of sustained fast growth. Firms with track records of sustained fast growth [i] Straub, R. Re-framing Management For The 21st Century,' HBR, June 2024. [ii] See for example Michael Mankins 'Lean Strategy Making' HBR, May-June 2025 [iii] Denning, S. 'Understanding How Exponential Network Effects Do—Or Don't—Happen' Aug 4, 2024 [iv] 'The CEO of e.l.f. Beauty on Maintaining a Startup Culture While Scaling.' HBR, Jan 2025
Yahoo
20-05-2025
- Business
- Yahoo
Tech startup leaders need to think globally from the get-go
'The best way to predict the future is to create it.'This timeless insight from renowned 20th-century Austrian-America management consultant Peter Drucker is especially relevant for startup leaders who aim to build something that stands the test of time. Housing market shift explained—and where it's happening the fastest 4 free Coursera courses to jump-start your AI journey Rite Aid is closing 95 more stores after selling assets to CVS and others: See the full list of locations across 6 states In today's digital economy, global expansion has never been easier—yet many tech founders are still focused on an initial geographical market. While starting with that thinking may seem practical, failing to embed a global mindset from the get-go can limit long-term potential. The reality is, startups that delay international thinking face tougher roadblocks later—scaling infrastructure, product-market fit, cultural nuances, and competition become bigger hurdles than necessary. The best startups anticipate these challenges early, positioning for global impact before opening a second office. I've seen this firsthand—setting out to empower the world with your company's tools shouldn't just be a tagline; it should shape every product decision, hire, and expansion effort. For founders unsure where to start, here's what I've learned about building global-first from day one. A strong vision serves as a guiding light through the thousands of decisions a company must make. Startups that scale successfully have a clear and ambitious purpose that informs their strategy from day one. For example, at Canva, we've aimed to make our product accessible to anyone, anywhere in the world. And while this seemed massively aspirational at our founding, it's helped us avoid complacency, and feels more realistic as you focus on hitting incremental milestones. In the early days, you won't be able to build a solution for every conceivable challenge. Focusing on your most obvious core audience, or, finding a niche that isn't too restrictive—tools for real estate, e-commerce, marketing, etc.—can ensure the foundation to support future expansion. Balancing ambition with practicality isn't just a challenge—it's a necessity. Those who master it pave the way for sustainable, scalable global success. Startups often face resource constraints, making it tempting to prioritize short-term gains over long-term scalability. However, founders must resist the urge to build products solely for their initial market. Instead, they should develop solutions with modularity and adaptability in mind. I believe in focusing on solving a fundamental problem—simplifying graphic design was our strategic focus—while ensuring that a platform can evolve for different industries, languages, and cultures. As your startup grows, maintaining flexibility becomes even more important. More than 10 years in, my company is still adapting to changing markets, shifting consumer expectations, and emerging trends. If you are an American startup founder, remember that 95.7% of the world's population lives outside of the U.S., and many of them may fall into your target customer demographic. Therefore, the ability to refine strategies based on global opportunities is a crucial trait of long-term success. This goes far beyond just translating the interface. It involves integrating local payment methods, content, templates, SEO strategies, and much more. At Canva we refer to a helpful metaphor of cupcakes and icing. The cupcake is our core offering of design and workplace software. The icing is the way we build on top to suit different countries, languages, and industries. The most important thing is that the cupcake is made in a way that it can expand and serve all of these different needs. A founder's passion is contagious. When a team believes in the company's mission, they'll go the extra mile to execute it. But passion alone isn't enough—it must be communicated effectively and proven in actions. Founders should meaningfully lift the hood on their own motivations as often as is appropriate, whether it's the inspiration behind the product, the obstacles overcome, or the impact their product has had on customers worldwide. I know from experience that this can be extremely successful in uniting a workforce around a shared mission. This becomes even more critical as a company scales across borders and languages. Consistently telling and refining your story ensures alignment and momentum, especially as new markets open up. A globally resonant narrative makes it easier to expand into different regions while maintaining a strong brand identity—and it starts at the top! Startups that embrace new technologies early gain a competitive edge. Staying ahead means keeping a pulse on industry shifts, making judgement calls as to whether a new technology aligns with your goals, and taking calculated risks. It also means building to adapt, and minimizing reliance on any single model or partner. Find ways to be 'pluggable' with other tools and technologies so you can evolve your tech stack without starting from scratch. In Q3 2024, AI startups accounted for 31% of global venture funding, signaling an industry-wide shift toward automation and intelligent systems. AI is offering an unprecedented opportunity to grow efficiently, without adding costs. Companies that delay integrating these advancements risk falling behind. Regardless of a startup's stage, a forward-thinking approach to technology is key to long-term success. The most successful startups aren't those that expand internationally just because they need to continue to grow sales; they're the ones that embed a global mindset into their culture, strategy, and vision from the get-go. Founders must recognize that the world is their market, not just their home country. From my native Australia to America and everywhere in between, each market might benefit from a product in different ways. Wise founders will commit to exploring and embracing those differences by building adaptable products, crafting a resonant brand story, hiring teams with diverse perspectives, and leveraging technology to stay ahead. In the end, the startups that think globally from the beginning are the ones that don't just react to the future—they create it, just as Drucker envisioned. 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