There is something contradictory about the most recent Dubai boom. Although statistics show that the emirate’s economic growth is accelerating, not everyone is able to benefit of this development yet. Businesses in Dubai and the entire Gulf regions are facing various challenges today. The main reason for that is that old solutions no longer apply. In other words, the business strategies which were successful before the financial crisis are now risky or outdated.
New Business Environment
The new Dubai boom we are witnessing is different from that seen prior 2009. The business environment in the city has changed. Gulf businesses have become more international and mature. As a result, organizations today are much more complex compared to half a decade ago. It is also true that GCC countries are now trying to break away from their oil and gas dependency. For that purpose, they are searching for ways to diversify their economies.
These factors enable the business environment in the Gulf to change constantly. In fact, this tendency is likely to be seen in the next few decades. Therefore, neither startups nor mature companies are safe. They all need to keep a constant lookout on the situation so that they can evolve with it.
Old Methods Won’t Help
Although some businesses in the Gulf region still fail to recognize the need for change, there are others that take various measures to turn the odds at their side. However, most of them do one common mistake – they rely on old business strategies, which cannot help them in the present situation.
Another key fact about Dubai’s economy today is that business competition has reached higher levels. Only in Dubai’s free zone port Jebel Ali, there are nearly 6,400 different companies. In addition, nearly each of the world’s largest banks has an office in the emirate. To find a place in such an environment requires innovative measures and strategies.
Company leaders, for example, need to do their best and improve their skills. Nevertheless, in the process they need to find a way and balance the rational with the emotional side of business. Moreover, they need to also train their employees to do the same, as the local customer services standard lags behind international. Simply said, business executives should not focus entirely on the amount of job that needs to be done, but also on the motivation behind it. Every milestone or fulfilled goal need to be seen be seen as a success or a step towards it.
Dubai demonstrates that it aims to be ranked side-by-side with cities like London, New York and Singapore. This results in tougher competition, which automatically raises the bar for companies in the emirate. This is yet another factor that pushes businesses to adapt to the quickly changing environment.
So what is the best business strategy to follow? The answer is simple and maybe slightly disheartening – there is no single formula for success. The truth is that every business needs to customize its solutions, depending on its sector, clients, completion and aims.
