The Dubai Centre for Family Businesses, which operates under the umbrella of Dubai Chambers, has revealed the results of a survey conducted to gauge the opinions, aspirations, and strategies of the next generation of family business members in the emirate.
The survey was aimed at developing a better understanding of the changing dynamics of family businesses, as well as the strategic directions favoured by their future managers.
Issued by global consulting firm PwC in collaboration with the Dubai Centre for Family Businesses, the 2024 survey identified the top priorities for the next generation of family business members during the coming two years. A total of 889 respondents from 63 countries participated in the survey, including a group in Dubai.
Dubai's next-generation family business members prioritize expanding into new sectors and markets, followed by business development and adopting new technologies. Comparatively, Dubai's focus on sector expansion surpasses global peers. The survey highlights a keen interest in generative AI among Dubai's family businesses, with 87% expressing personal interest, above the global average of 82%. Additionally, Dubai respondents exhibit greater familiarity with generative AI than their global counterparts. They anticipate AI's potential to enhance profitability, efficiency, and customer experience, with 32% expecting increased profitability within a year, exceeding the global average of 21%.
Among the next generation of family business members surveyed in Dubai, 42 percent of respondents confirmed they are aware of succession plans within their family business; however, many did not participate in the preparation of these plans. The majority of participants indicated that they find it easy to understand the different provisions of family protocols and constitutions.
45 percent of respondents stated that the ability or readiness of the current generation to retire can create challenges with the succession process.
Participants identified the key benefits of AI as increased operational efficiencies, improvements to employee productivity, and an enhanced customer experience. AI was also identified as a catalyst for adopting new technologies, enhancing the digital capabilities of the workforce, and achieving business growth.
The survey demonstrated that family business members in Dubai have a strong understanding of family values and goals, as well as the rights and duties of all business owners. The majority also expressed a desire to assume a leadership position or role in governance management within the next five years. The findings also highlighted positive expectations among the next generation of family business members in terms of their future careers, including learning and growth opportunities within their family businesses.
News Source: Emirates News Agency
