The Economic Council of Dubai has signed a memorandum of understanding (MoU) with Boston Consulting Group. As part of the agreement, the business strategy advisor will provide the Council with consultancy support in fields related to economic, financial and regulatory topics.
Earlier this month, Dubai’s Ruler Sheikh Mohammed bin Rashid Al Maktoum launched ‘Dubai Plan 2021’, a new strategy outlining the emirate’s development framework over the next seven years. The plan aims to reinforce the emirate’s positioning as a “global centre” across a number of areas. Key pillars of the strategy include the launch of the Dubai Smart City strategy, an initiative to turn Dubai into the capital of the Islamic economy and the objective of becoming a hotspot in the aviation industry*, as well as growing several local corporates into global players.
To support the execution of the ‘Dubai Plan 2021’, the government has signed a long-term contract with American strategy consultancy The Boston Consulting Group. “BCG is the world's leading advisor on business strategy with clients in the private, public, and not-for-profit sectors. We are happy to collaborate with BCG and look forward to see the outcomes of the agreement we've signed, and how we can jointly support the government of Dubai in this new era in a direction that serves the newly launched Dubai Plan 2021,” says Hani Al Hamli, secretary-general of the Dubai Economic Council (DEC).
Joerg Hildebrandt, head of BCG Middle East, adds: “The DEC is a vital player in advancing Dubai's economic agenda through its sound recommendations which are built on contributions from the public and private sectors, as well as from world-renowned academics. BCG is delighted to be a selected thought partner for DEC.”
Besides helping government institutions and corporates with business advisory services, family businesses in the region will also receive particular attention. Recent research from McKinsey & Company reveals that in the Middle East 67% of businesses are run by families, and to capitalise on the potential, the DEC has earmarked the segment as a key growth pillar. Accordingly, the MoU tasks BCG with developing a framework that will be considered beneficial by family businesses of all sizes to achieve their family and business objectives. “Looking at the tremendous contribution of family businesses to GCC economies, and to UAE economy in particular, we are thrilled to work with the DEC to help developing and optimising local family business organisations where needed,” comments Marc Dahlke, head of BCG's family business operations in the Middle East.
According to Dahlke, there is high demand for strategy and counselling in the family business segment, across a wide range of topics: “We experience high demand for optimising corporate structures and governance, portfolios and expansion plans, be it through IPO, M&A, joint ventures, asset swaps, etc. We look forward to contribute to a framework that will be considered beneficial by family businesses of all sizes."
* According to recent research from Oxford Economics, the economy-wide contribution of the aviation industry will grow to a staggering 45% of GVA by 2030, with 35% of Dubai’s population working in the aviation and related tourist industries.