What is the biggest motivator among executives in the Middle East? The desire to be in the spotlight. Illustration by Lee McGorie / The National
What is the biggest motivator among executives in the Middle East? The desire to be in the spotlight. Illustration by Lee McGorie / The National

Leaders love the spotlight



Some executives are motivated by money, while others may be driven by the pursuit of power or influence.

And a mass survey of business leaders in the Middle East has revealed what makes them tick.

Stanton Chase International, an executive search firm, used a software tool called TalentScan to assess hundreds of people in the region.

More than 350 companies and organisations were asked to identify up to 15 senior executives to take the online survey.

Typical questions included asking them to state their priorities from about 25 options or to choose words to express how they see themselves.

The software uses the answers to build a picture about why they do what they do and how they do it.

"The usefulness of this tool is it helps you outline your organisation's culture - what moves people in your organisation, what motivates them so you don't give them the wrong kind of praise," says Wassim Karkabi, the regional practice leader of the industrial sector covering Europe, Middle East and Africa for Stanton Chase, Dubai.

"You might be paying an arm and a leg in bonuses when you don't really need to because your organisation and the people in your company don't really care about them."

So what is the biggest motivator among executives in the Middle East? The desire to be in the spotlight - which can be a plus, but runs the risk of alienating other employees.

"As a group, these leaders show an ability to think 'outside of the box' and take appropriate risks. They stand up for their own ideas and rights, and project confidence to others," says a report on the results.

"They also have the risk of alienating some of their direct reporting personnel and employees because of frequently wanting to be in the spotlight."

The bottom line is another big motivator of Middle East business leaders.

"That's the good news," says the report. "They are keen business people who keep their financial goals in mind for their organisations, and for themselves."

But it can come at the expense of other aspects, such as standards, recognising others in the organisation or spending time with their families.

"Without attention to these important areas, the high money drive can be self-defeating, and even in the midst of a high-drive, it can lower the overall optimal performance of an organisation," the report warns.

The desire to help others came in third with the executives.

This may seem at odds with the executives' love of the spotlight, but it actually makes sense, says Mr Karkabi.

"They are in a role where they are transferring information and they feel more important because of it," he says.

"The self-actualisation part of it is where you disseminate all the knowledge that you have collected … down back to the ranks. This is the helping part, the coaching part."

The fourth-highest score was influence. Middle East executives are competitive and like to take charge of projects.

The desire to position their companies as knowledge and information leaders in their respective industries came in fifth, followed by the ability to be problem-solvers who come up with creative solutions.

The survey also showed that Middle East executives are decision-makers. They can be flexible with rules and regulations when required, but tend to be more reserved in their dealings with others.

Being more reserved comes from the fact they are working in an area with a melting pot of cultures.

"There is a cultural gap, a difference, between people coming in and those local to the region," says Mr Karkabi.

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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Fatherland

Kele Okereke

(BMG)

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MATCH INFO

Uefa Champions League final:

Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports

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Swansea 2

Grimes 20' (pen), Celina, 29'

Man City 3

Silva 69', Nordfeldt 78' (og), Aguero 88'

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
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What are the regulations?
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Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.