"Beyond Real Estate Projects: Why Human Capital Should Be the GCC’s Real Investment"

It’s Time We Build People, and Not Real Estate Projects!

 

This was the title of an article I had written for a local magazine exactly 15 years ago.  The magazine had asked me to share my thoughts for their publication.

I eventually ended up scrapping the whole article after a few of people around me and the editor as well thought the article would rub off a few executives in the real estate sector the wrong way (Including my own real estate clients at the time. Not the best of ideas I’ve come up with at the time evidently)

However, the key message behind the article was something I felt quite strongly about.  The country (and especially Dubai) was witnessing a real estate boom with projects being announced on the daily.

This was pre-2008 financial crisis. The great and fun times for businesses especially in the real estate and construction sectors.

 

However, I noticed a few warning signs in workplaces and how businesses approached their human capital.  Signs such as:

 

Lack of Future-Proofed Capability Building: Amidst economic uncertainties, such as the 2008 financial crisis, the 2014 oil price crash, and the COVID-19 pandemic, I noticed a common trend. Employers consistently froze or cut Training and Learning & Development budgets as a knee-jerk response to these crises. This short-sighted approach left existing workers underprepared for cross-functional roles, changes in their industry and future jobs.

 

·      Revolving Door Policy: Actually, not really a policy, but it had become a widespread attitude by business managers.  How many of us are not familiar with the “If you don’t like how we do things here, or are not cut out for it, we’ll find someone else to replace you”. Managers seemed more prepared to opt for ‘cut and terminate’ option, rather than then seeking other options.

  

·      Workplaces Turning in to ‘Transit Lounges’: A term coined by author of the book ‘Seven Metaphors on Management’ Farid A Muna, the ‘transit lounge’ is a workplace phenomenon where employees from different backgrounds and cultures adopt a more transient attitude to work.  While they might work together on tasks, they lack connection, understanding and acknowledgment of their cultural differences.  Everyone is focused on their own destination inside the organization or out. Since then, employers in the region are increasingly appreciating the importance of best practices in diversity, inclusion, belonging and cultural integration if they are to maintain workplace happiness and productivity.

 

·      Not Enough ‘Level 5’ Leaders: In one of my favorite books ‘From Good to Great’ Jim Collins describes leaders with a unique blend of personal humility and professional will. Leaders who are willing to listen, are driven and committed to achieving greatness. Instead, most executives on the top displayed either egotistical or indecisive leadership.  At best, they displayed what Jim Collins refers to as ‘Level 4 Leadership’. Highly capable and charismatic leaders who lack the humility and will to drive the organization.

 

So, why do I bring this up now?

 

The real estate sector in the UAE among other sectors is currently experiencing growth, driven by rising property values, new developments and luxury properties. 

Property prices expected to increase by 8-10% in 2025!

Job gains in the UAE recorded this week its 'sharpest' increase in 11 months, according to the latest Standard & Poor Global's PMI data.

Sounds promising right?

Yet at the same time…

  • Geopolitical uncertainty in the region is at its highest (Add the recent tensions between India and Pakistan, two countries whose population constitute most of the workforce in the GCC region).

  • Automation threatens to replace an estimated 45% of the existing jobs according to reports.

  • The entry of millennials in the workplace and the impact of the generational gap.

  • The increased urgency to upskill, employ and integrate GCC nationals in different industries.

 In conclusion,

 

With the increasing need for adaptability in a rapidly changing marketplace, changing geopolitics and uncertainty; organizations in the Middle East should prioritize leadership development across all levels, not just top management.

This shift will need to recognize the importance of skill-building and leadership development that is:

  • Aligned with the local realities,

  • Connects with the cultural backgrounds of talent,

  • Future-Proofed,

  • And inclusive. Especially of the qualified national talent.

 

Now My question to you is:

 

What are the mistakes that we can learn from and avoid so that organizations in the UAE and Gulf region are better prepared for the future?

Talib Hashim