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Opportunities in the Financial Crisis for Family Businesses
The global financial crisis is an opportunity for family businesses with sufficient liquidity to make solid investments. Buying a business in Dubai is one way to make such sound investments.
This was the message from leading global and regional business and financial leaders who spoke yesterday at the DIFC Summit organised by the Dubai International Financial Centre (DIFC) and the Tharawat Family Business Forum, to discuss the opportunities and challenges faced by family businesses in the current global economic environment.
Dr Omar Bin Sulaiman, Governor of Dubai International Financial Centre (DIFC) and vice-chairman of the UAE Central Bank, said: "The current financial crisis may provide several opportunities for family businesses to make investments both globally and regionally."
"In investing, family businesses should focus on good business value. As long as an investment is a good deal today, it will eventually bring good returns. The global economic cycle will turn and when it turns, it will be a wise and good investment."
While acknowledging the fact that the financial crisis has had an impact on the region, speakers urged the family business community to look at the business environment positively. A difficult environment often refocuses families on the core businesses which made them successful. At the same time, valuations for buying a business in Dubai have become more reasonable.
All panel members felt that the region was well-equipped to weather the global financial storm because of its strong fundamentals.
"There is a huge scope for growth. Most of the region's population is comprised of young people. Demand growth may slow down but there will always be growth," Bin Sulaiman said.
"I'm very optimistic about the region. Surpluses from oil revenues were invested in infrastructure and this will pay off," he added. This infrastructure will support population growth well into the future.
"The quantum of infrastructure spend, current account surplus and the buoyancy of the private sector, in addition to many other factors, indicate that the economy is in good shape," another panel member pointed out.
