Family-owned businesses are uniquely placed to shape the fourth industrial revolution to ensure it is empowering and human-centered, rather than divisive and dehumanizing, Badr Jafar, chief executive of Crescent Enterprises and managing director of the Crescent Group, told delegates at a public session titled “The Family Business Case” at the World Economic Forum in Davos, Switzerland. Other panelists included Andre Hoffmann, vice chairman of pharmaceuticals giant Roche, and Lubna Olayan, chief executive of Olayan Financing Company.
“Family businesses are the epitome of human commerce, and tend to be deeply connected to our employees, stakeholders and communities. Our stakeholders know us and the values that we represent. Therefore the key to being successful and sustainable in the era of this technological revolution will be to leverage these natural advantages while being realistic about the things we need to change about ourselves,” Jafar said.
According to the Family 500 Index, the world’s 500 largest family businesses produce $6.5 trillion per year in sales and employ over 21 million people — enough to make them the third largest economy in the world behind the US and China. In the Middle East and North Africa region, 85 percent of non-oil GDP is generated by family businesses that are set to hand down assets totaling more than $1 trillion to the next generation within the next 10 years.
The discussion outlined that, unlike many companies whose financial impact is constantly being evaluated on a quarterly basis, family businesses are generally more capable of pursuing a long-term, value-driven strategy, which results in these businesses enjoying higher levels of trust and loyalty than other types of companies. According to the Edelman Trust Barometer, family-owned companies are significantly more trusted than public companies, state-owned businesses or even NGOs.
Jafar added: “We can choose to either take this trust for granted, or use it to help us work with all our stakeholders to shape this revolution in a manner that improves the state of the world, which will also in turn enhance this trust even further.”
However, the sustainability of many family businesses worldwide, including in the Middle East, is plagued by a myriad of challenges related to poor governance codes, often leading to failed succession and depletion of wealth and assets. For this reason, family businesses are increasingly embracing the business case behind good governance — according to a recent research report released by the Pearl Initiative, a nonprofit organization promoting a culture of corporate transparency and accountability. Eighty-nine percent of the 350 companies surveyed across the Gulf region believed that improved corporate governance standards are essential to the survival and growth of business in the region.
WEF panel spotlights family businesses
WEF panel spotlights family businesses
Rheem Middle East wins awards for sustainability
Rheem Middle East, a sustainable industry leader in heating, ventilation, air conditioning and water heating solutions, has garnered significant attention at the Climate Control Saudi Awards 2024 — the inaugural edition of CPI Industry’s awards in Saudi Arabia. The company secured multiple accolades in recognition for its commitment to fulfilling its social responsibilities and playing a pivotal role in promoting sustainable, energy-efficient solutions, particularly in Saudi Arabia, where it prioritizes environmental and social impact.
Rheem’s award-winning solutions, also sold under the brands Ruud, Friedrich and Richmond, include their ducted inverter products, which earned the “Manufacturer Supplier of the Year” award and their commercial heat pump, which won the “Supplier of the Year for Water Heaters” award. Additionally, Rheem was honored with the “Dominique de Souza Award for Innovation,” celebrating the groundbreaking ProTerra Hybrid Heat Pump, a truly sustainable solution that is four times more efficient than standard water heaters, contributing to significantly reducing greenhouse gas emissions.
Beyond technological leadership, Rheem remains steadfast in its zero-waste commitment, coinciding with its 100-year anniversary in 2025. Rheem’s initiatives will see them reduce produced greenhouse gases by 50 percent, eliminate landfill waste completely and promote energy-efficient solutions globally. Since 2019, Rheem has already diverted more than 80 million tonnes of waste from landfills annually through their eco-friendly manufacturing plants, such as the one in the GCC.
“As our teams work toward achieving zero waste by 2025, we are happy to see our efforts being recognized here in the Kingdom. As the Kingdom leads the way with its sustainability goals under Vision 2030, Rheem also leads by developing environmentally conscious solutions with a sustainability-first approach and bringing them to key markets such as Saudi Arabia,” said Brian Hempenstall, vice president and general manager at Rheem Middle East. “We are on track to meet the sustainability goals we’ve set for our 100-year-anniversary coming up in 2025,” he added.
As a leader in environmental consciousness, Rheem aligns fully with the Kingdom’s vision of a cleaner future. The company has been recognized by the United States Environmental Protection Agency for four consecutive years with the Energy Star Partner of the Year — Sustained Excellence Award, due to its steadfast commitment to environmental protection through energy efficiency measures, organization-wide energy savings and continuous improvements from previous years.
New Murabba showcases future of urban living
New Murabba, a PIF company, highlighted its transformative vision for urban living at Cityscape Global 2024, one of the world’s largest real estate and urban development exhibitions, where it was the foundation sponsor. Inaugurated by the Ministry of Municipalities and Housing, the event was held from Nov. 11 to 14 under the theme “The Future of Living.” Held at the Riyadh Exhibition and Conference Center in Malham, Cityscape Global 2024 brought together more than 400 attendees, including global industry leaders, investors, and experts in urban development — all with the focus on shaping the future of real estate and architecture.
The event provided an unparalleled platform for New Murabba to connect with key stakeholders and investors and showcased the Kingdom’s rapid economic growth. The event’s emphasis on the future of living, asset horizons, and proptech aligns perfectly with New Murabba’s mission to create a vibrant, sustainable downtown that harnesses renewable energy, smart city technologies, and efficient resource management.
New Murabba welcomed Prince Turki bin Hathloul bin Abdulaziz, deputy governor of the Najran region, along with several dignitaries and guests at its pavilion.
They were received by CEO Michael Dyke and the company’s team, who provided an informative presentation on the destination’s latest advancements.
Dyke participated in a panel discussion exploring how sustainable investments can drive urban growth and improve quality of life.
“Cityscape Global 2024 is a remarkable opportunity to engage with visionary leaders, investors, and partners who share our commitment to creating a sustainable and dynamic urban future,” said Dyke. “New Murabba is proud to contribute to Riyadh’s evolution as a global city, offering an innovative approach to urban living that integrates advanced technology, sustainability, and community-centric experiences to create a vibrant, livable city.”
“By participating in this prestigious event, New Murabba will serve as a model for other developments across the globe, encouraging them to place sustainability and quality of life at the forefront of their development strategies,” Dyke added.
As Saudi Arabia seeks to position Riyadh among the world’s top 10 most livable cities, New Murabba is poised to play a crucial role in achieving this vision. The project aligns perfectly with the Kingdom’s ambitious development goals by embracing sustainability, advanced technology, and smart city concepts. New Murabba is set to attract foreign investors eager to participate in Saudi Arabia’s dynamic and expanding real estate market.
The AI revolution: Transforming advertising in MENA with innovation and authenticity
Artificial intelligence is reshaping advertising in the world, enabling brands to craft campaigns that are personalized, innovative, and efficient.
AI-driven personalization and targeting
Personalization lies at the core of AI’s transformative impact. The MENA region’s cultural diversity and varied consumer preferences demand highly tailored campaigns, and AI is meeting that challenge head-on.
A remarkable example is Coca-Cola Arabia’s 2022 campaign during the FIFA World Cup in Qatar. To boost reach and sales among Saudi Gen Z audiences, Coca-Cola collaborated with Google and EssenceMediacom to conduct affinity-based audience research. This led to the creation of over 30 personalized video ads using Google’s AI-powered Ads Creative Studio. These ads dynamically tailored visuals and messages in real-time to resonate with specific interests like gaming, soccer, and fashion.
The results were extraordinary: a video view-through rate of 46 percent (exceeding the planned 30 percent), a 42 percent cost-per-view saving, a 10 percent market share growth in Saudi Arabia, and a 22 percent increase in sales volume during the promotional period. These outcomes highlight how AI-powered targeting can achieve measurable business success.
Creative innovation with AI
AI is also transforming content creation, automating repetitive tasks and enabling brands to generate dynamic, high-quality visuals and videos. Tools like Runway ML have become integral in the region’s creative workflows.
In a project for a regional beauty brand, we used AI to generate visuals aligned with local beauty standards and cultural symbolism. The combination of AI and cultural understanding resulted in content that deeply resonated with audiences. Similarly, Anghami, MENA’s leading music streaming platform, uses AI to deliver personalized audio ads tailored to listener preferences, improving ad recall and brand affinity.
Building trust in advertising
As AI becomes integral to advertising, ethical considerations such as transparency and cultural sensitivity are paramount. In my work with a financial services provider, consumer resistance to AI-powered decision-making around data privacy required a proactive approach. By adopting IBM Watson OpenScale for transparency in AI models, we bridged the trust gap effectively.
Another notable example is TikTok’s use of AI-powered moderation tools that filter content in alignment with regional cultural norms. By combining AI with human oversight, TikTok ensures transparency while adhering to local regulations, fostering trust among users.
Future trends in AI-powered advertising
AI is driving several trends that will shape the future of advertising in MENA:
1.Predictive analytics for enhanced targeting
AI uses historical data to predict consumer behavior, allowing brands to tailor campaigns for maximum ROI.
2.Hyper-personalization of content
Real-time, highly personalized messages based on user behavior and demographics are significantly boosting engagement rates.
3.AI-generated creative content
Dynamic tools like DALL·E enable brands to quickly create visually engaging content, maintaining a fresh and consistent presence.
4.AI-optimized programmatic advertising
Machine learning ensures precise ad targeting and efficient use of budgets, revolutionizing ad buying.
5.Ethical AI and transparency
As regulatory scrutiny grows, brands are adopting explainable AI systems to build consumer trust.
While these trends highlight AI’s potential, challenges remain. Infrastructure inconsistencies across the region mean some markets are thriving with AI solutions, while others struggle with basic digital integration. Bridging this gap requires investment in digital education and partnerships with tech providers.
Strategies for marketers in MENA
In my experience, marketers in MENA must ACE their approach: Adapt, Conceptualize, and Engage. AI-driven advertising offers opportunities to stay competitive and deliver impactful campaigns. Key strategies include:
- Leverage advanced tools (Adapt): Use platforms like Meta Advantage+ and Google Ads Creative Studio to craft tailored campaigns. Creative automation tools like Smartly.io can ensure content freshness.
- Build data ecosystems (Conceptualize): Implement AI-powered customer data platforms like Tealium or Segment for deeper insights and strategy alignment.
- Focus on creative AI (Engage): Tools like Runway ML and Synthesia enhance storytelling by creating culturally relevant, visually consistent content.
- Adopt ethical practices: Build trust through transparent campaigns with tools like IBM Watson OpenScale to monitor AI fairness.
- Stay agile: Monitor and adjust campaigns using predictive analytics tools like Google Analytics 4 (GA4) or Datorama by Salesforce for real-time optimizations.
Conclusion
AI is revolutionizing advertising in MENA, unlocking new opportunities for personalization, creativity, and efficiency. While challenges like digital readiness and ethical concerns persist, the potential for AI to redefine advertising is immense.
Elon Musk once remarked, “AI is far more dangerous than nukes.” While this highlights AI’s power, I believe it can be a force for good — provided it is used with professionalism, transparency, and positive intent.
The future of advertising in MENA will be defined by a fusion of technological innovation and cultural sensitivity, paving the way for impactful and authentic brand storytelling.
- The writer is Safwan Kanj, managing director at EssenceMediacom — Saudi Arabia.
Abeer announces soft launch of ‘Lavender Health’
Abeer Medical Group has announced the soft launch of Lavender Health, a premium speciality healthcare facility dedicated to provide value-based healthcare services. The soft launch took place at the Global Health Exhibition, attended by high-profile guests including Dr. Ibrahim Alomar, assistant deputy minister for health investment, along with officials from the Ministry of Health and senior leadership from Abeer Medical Group. The event marked a significant milestone in the group’s ongoing commitment to providing exceptional healthcare services, emphasizing quality and a delightful experience for everyone.
Alungal Mohammed, president of Abeer Medical Group, said: “As we embark on the 25th year in the Kingdom, I am happy to introduce Lavender Health, a new vertical with a selected set of specialities for the niche group. This facility is a testament to our dedication to high-quality healthcare and our mission to meet the evolving needs of our care seekers.”
Dr. Alomar said: “The launch of Lavender Health is a commendable initiative that aligns with our continual efforts to enhance healthcare accessibility and quality in the Kingdom. We applaud Abeer Medical Group for their initiative and dedication to improving the health and well-being of our citizens.”
Lavender Health is set to offer a wide range of healthcare services equipped with state-of-the-art technology and skilled healthcare professionals, ensuring that care seekers receive the highest standard of care.
TDF CEO joins World Travel & Tourism Council Executive Committee
In a landmark achievement for Saudi Arabia’s tourism sector, Tourism Development Fund CEO Qusai Al-Fakhri has been appointed to the Executive Committee of the World Travel and Tourism Council. This appointment highlights TDF’s growing international influence and its vital role in transforming Saudi Arabia into a leading global tourism destination in line with the objectives of Saudi Vision 2030.
The Executive Committee membership, one of the highest roles bestowed on a Saudi entity within the WTTC, reflects TDF’s commitment to sustainable tourism development and international collaboration. The WTTC unites key decision-makers, leaders, and experts from across the global tourism industry, focusing on strategies that drive long-term growth in travel and tourism.
The TDF CEO’s appointment underscores TDF’s leadership in fostering international partnerships, advancing Saudi Arabia’s tourism industry, and positioning the Kingdom as a top destination for foreign investment. By sharing insights and learning from global best practices, TDF will further accelerate the growth of Saudi tourism, enhancing its global standing and economic potential.
Al-Fakhri said: “Joining the WTTC’s Executive Committee is a prestigious recognition of Saudi Arabia’s growing influence in the global tourism landscape. It reaffirms TDF’s commitment to driving tourism transformation in the Kingdom.”
Through this platform, we aim to leverage global expertise and innovative solutions to achieve the ambitious goals of Saudi Vision 2030, while promoting sustainable growth across Saudi Arabia’s tourism sector.” He also highlighted TDF’s continued dedication to developing the sector through financial support and advisory solutions that empower investors and enhance collaboration with both local and international stakeholders.
The WTTC is the premier global entity representing the private sector in travel and tourism. Its mission is to raise awareness of the industry’s economic and social impact while providing a platform for leaders to share insights and address critical challenges. The WTTC’s annual global summit brings together top executives from the world’s largest travel and tourism companies to explore key issues and opportunities.
