Stakeholder capitalism can help the Mena region bounce back more resilient than ever

The magnitude, complexity, and socioeconomic impact of the Covid-19 pandemic is only now being fully understood. The ongoing black swan event is, by force, pushing industry leaders to rethink and transform their global supply chain model.

As a new wave of technology signals further changes to our lives and the regional ecosystem, how should sectors such as retail adapt?

Covid-19 does not recognize borders. Contagion has been evident not only in the transmission of the virus across countries but in the global economic propagation of this health shock on production, consumption and the consequent slowdown in economic activity.

Egypt is one of the Middle East’s most powerful transformation stories.

The global economy is deep into the worst economic crisis of the last 100 years. Across the Middle East and North Africa, the economic outlook is perhaps even more severe than elsewhere, as the region faces unprecedented dual shocks from COVID-19 and the collapse in oil prices. With malls closed and social distancing in place, consumers are simply not spending money like before.

The COVID-19 pandemic is testing the resilience of nearly every business to its limit. Many companies have suspended their operations completely, and even those who are allowed to continue trading are struggling. The challenge is not just coping with disrupted supply chains and volatile consumer behaviour, but also preparing businesses for the new normal after this virus has been contained.

The region must reclaim its rich scientific heritage, but it needs billions of dollars annually and government and institutional support. Today’s world is full of disruption. The rate at which new entrepreneurs and fresh business ideas are emerging, continues to gain momentum globally and regionally. Every day, we read about new start-ups pushing the boundaries of technology, exploration and experience.

We live in a world with so many questions and few clear answers. “Too many laws, too few examples.” Uncertainty is the new norm, and we are called upon to make major decisions while figuring out what tomorrow will look like.

Since Amazon’s purchase of Whole Foods, a deal that sent shockwaves across the retail world, the question that every brick-and-mortar retailer faces is how they propose to stem the tide of ‘follow-suit’ competition that will now inevitably engulf their market.

New products and services are often created to enable businesses to sustain their success, diversify their investment and protect revenue from volatility. Success stories and failures are easily found, but in the era of climate change, diversifying away from risk cannot rely on products and services alone.

• A more agile approach to risk management is needed post-COVID.

• Annual risk assessment should make way for continual 'horizon-scanning' for possible business threats.

• This level of preparedness and planning should permeate entire company cultures.

 

We live in times of unprecedented complexity. Global forces and technological changes have catalysed disruption to the point it has outpaced our ability to adapt. 2016 was the year in which rising dissident voices rose to an undeniable pitch. Brexit, the election of Donald Trump to the US presidency and the shift towards extremes in many European countries. Around the globe, social contracts are breaking down and a new narrative between the governing and the governed has not yet been crafted.

Retail is critical to the economy of the UAE. In Dubai, for example, it makes up just over a quarter of our gross domestic product. Harking back to our long history of trading and our mercantile spirit, you could say that retail is in the country's DNA.

This year’s Davos Agenda centres on the urgent task of rebuilding trust to deliver a more inclusive, cohesive and sustainable future. But with the inspiring global vaccine effort signalling an end to the pandemic, is there a danger that we – as a global business community – could revert to business as usual?