DIFC Introduces Initiative to Enhance Succession Planning and Longevity of Family Businesses
In an innovative initiative, the DIFC Family Wealth Centre, in partnership with MIT Sloan Executive Education and the DIFC Academy, is launching the premier ‘Sustaining Family Business Success’ high educational program in Dubai.
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This program aims to equip family businesses within the Dubai International Financial Centre (DIFC) and the broader region with the adequate education on maintaining success across generations.
The innovative MIT Sloan Executive Education program provides family businesses preparing for expansion in Dubai and elsewhere with new insights and perspectives. It covers the exploration of opportunities, challenges, trends, and strategies essential for the management and leadership of family businesses and broader family enterprises through multiple generations. Participants of the course will receive a Certificate of Completion from the MIT Sloan School of Management.
John Davis, the Faculty Director at MIT Sloan, highlighted the need for family businesses to adapt to the rapidly changing global environment by adopting a future-focused and flexible approach to stewardship, emphasizing the creation of diverse values aligned with family principles as the outline for success in today’s world.
Christian Kunz, the Chief Strategy, Innovation & Ventures Officer at DIFC Authority, emphasized on the importance of the Dubai and DIFC’s business ecosystem, strategic position, and commitment to innovation as key factors making it the perfect environment for family businesses. He expressed enthusiasm about providing members of the DIFC Family Wealth Centre and family businesses access to cutting-edge education on sustaining success, enabling them to upscale and continue their growth locally and internationally.
This announcement is part of a series of measures by the Dubai International Financial Centre (DIFC) to support the ongoing innovation, growth, and succession planning of family businesses confidently. The DIFC Family Wealth Centre, launched in March 2023, represents a world-first initiative, offering comprehensive services to family businesses at a crucial time when an estimated AED 3.67 trillion (USD 1 trillion) in assets is expected to transfer to the next generation in the Middle East over the next decade.
Additionally, the DIFC introduced the Family Arrangements Regulations in February 2023, offering tailored support for families to preserve their legacies across generations and geographies. These regulations complement the UAE Family Business Law, fostering a supportive environment for family businesses.
Structured on six foundational pillars, future vision, managing turbulence, governance, talent, succession, and multigenerational success, the initiative is in line with the UAE Government’s dedication to bolstering family businesses, vital for the nation’s economic growth.
With only 20% of family businesses in the Middle East reaching the third generation, providing next-generation leaders with top-tier education is essential for their enduring success.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Highlighting a significant recovery and robust growth across all key performance metrics.
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Bank of Sharjah has released its results for the period ending 30 June 2024, showcasing robust performance and strong momentum since the beginning of the year. The Bank reported a net profit of AED 171 million, a significant turnaround from the AED 144 million loss in the same period last year.
This remarkable improvement is attributed to a substantial increase in net interest income, stringent credit underwriting, and reduced operating costs, marking a 233% increase over the previous year when excluding the one-time impairment charge from de-linking its Lebanese subsidiary.
The Bank’s exceptional financial results highlight the effectiveness of its strategic focus on sustainable growth, with notable improvements across all major performance metrics. Funded and unfunded income both saw increases, with net interest income rising by 108% and operating income growing by 34%.
Additionally, the cost-to-income ratio improved significantly to 40.1% due to cost discipline measures. The balance sheet remains strong with a loans-to-deposits ratio of 86.63%, indicating comfortable liquidity. The Bank also maintains strong capitalization, with a regulatory capital adequacy ratio exceeding 15% and Tier 1 and CET1 capital ratios around 14%. These positive results underscore the Bank’s underlying strength, operational efficiency, prudent risk management, and ongoing enhancement of shareholder value.
Commenting on the Bank’s results, Sheikh Mohammed bin Saud Al Qasimi, Chairman of Bank of Sharjah, stated: “We are pleased with our outstanding performance in the first half of 2024, which reflects our commitment to adding value to our customers, supporting our communities, and rewarding our shareholders. Despite the challenging geopolitical situation in the region, the UAE economy has remained resilient and continues to register healthy growth following various economic diversification initiatives that provide consistent impetus for trade, investment, and wealth creation. Bank of Sharjah has entered a new chapter with a new leadership team, focused on building new business streams, expanding our reach across the UAE and the region, and delivering exceptional service to our customers.”
He added: “Our performance in the first half of the year demonstrates the effectiveness of our new strategy, and we look forward to delivering continued growth in the years to come.”
The CEO, Mr. Mohamed Khadiri, commented “2024 has begun exceptionally well for Bank of Sharjah, with the bank achieving a record year-on-year profit. I am delighted with our stellar performance as we continue to strengthen the bank’s fundamentals. Our outstanding results reaffirm that our new business strategy is on track to deliver sustainable revenue growth, driven by business expansion, operational efficiency, prudent risk management, and talent development. This achievement is also a testament to the Bank’s success in providing high-quality financial services that meet the aspirations and growing needs of our customers.”
He further added: “Bank of Sharjah is a strong and respected brand within the local community. We are leveraging our core strengths to build a platform that will operate at its full potential across the UAE and the region. The Bank remains focused on executing our strategy and is well-positioned to maintain strong performance throughout 2024 and beyond.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
