Prioritize emerging sectors with high growth potential, adopt new technologies to stay competitive: Follow Hassan Malik of Deloitte

Businesses should understand the economic goals of their target countries and tailor their offerings to support those goals.

The rapid adoption of digital technologies such as AI and blockchain have undoubtedly become significant forces influencing businesses today. There is also an increasing emphasis on sustainability, driven by both regulations and consumer demand for environmentally friendly practices.

In this dynamic environment, Middle Eastern companies face unique opportunities and challenges. To successfully navigate this landscape, we turn to Hassan Malik, Managing Partner of Monitor Deloitte Middle East, a strategic consulting service line of Deloitte.

Hassan brings over 18 years of experience in strategy and execution, working with both consulting firms and industry leaders. Hassan’s experience includes corporate and business unit strategy, strategic planning, strategy execution, and business development.

In the interview below, Hassan, as a judge for the Middle East International Business Awards and National Business Awards 2024, shares valuable insights into how businesses in the region can thrive in the coming years.

What emerging trends do you see shaping businesses in the region? How can businesses best leverage these trends?

There are a number of emerging trends that are shaping businesses today. One significant trend we see is the growing adoption of digital technologies, including artificial intelligence, blockchain, and IoT, that are revolutionizing business operations and increasing efficiency. Another trend is the growing emphasis on sustainability and corporate social responsibility, driven by both regulatory requirements and consumer demand for environmentally friendly practices. Additionally, the rise of the gig economy and remote work, which have been around for some time, are evolving and transforming the labor market and prompting organizations to rethink their talent strategies. To capitalize on these trends, companies should invest in digital transformation initiatives, prioritize sustainability in their operations, and adapt their workforce strategies to accommodate remote work arrangements.

What unique challenges and opportunities do companies in the Middle East face in terms of strategic planning?

One of the biggest challenges is the availability and accuracy of data to help inform strategic planning decisions. In general, there is limited public or private information on sectors, sub-sectors, companies, and key demographic, economic, and social indicators, although this may vary slightly depending on the specific sector. This can make it difficult to make clear choices and choose the future direction of the business. To achieve excellence in strategic planning, companies must conduct in-depth market analysis, leverage local expertise, and remain agile.

The Middle East is experiencing significant efforts to diversify its economy. Can you share your insights on how companies can contribute to and benefit from this development?

Larger economies in the Middle East have historically focused on traditional sectors such as oil and gas. However, the drive to diversify into new sectors for the region, including renewable energy, tourism, sports, events and technology, can provide new opportunities for businesses to provide additional products or services, as well as reach a much broader potential target customer base for existing products or services. Businesses should understand the national visions of key economies in the region and consider how they can contribute to them in a valuable way. Consider prioritizing high-growth sectors that may have previously been in their infancy and be at the forefront of adopting emerging technologies.

How to maintain a balance between long-term strategic planning and the need for flexibility and speed of response in a dynamically changing market?

I would suggest separating strategy from planning. Strategy defines what the company wants to achieve and what success looks like. This should not change regularly despite the agility of the market; rather, it should be innovative, ambitious, and long-term. It is about the integrated set of choices available to the company and that the company chooses. When it comes to agility in a rapidly changing market, the company should have active market intelligence to learn about significant market changes, focus on shorter planning cycles that allow for frequent adjustments, and implement more agile practices for both management and the entire organization that focus on collaboration and flexibility. By combining them, the company should be able to navigate a dynamic market while remaining aligned with its long-term strategy.

How important do you think diversity and inclusion are to the long-term success of businesses in the region? What initiatives have you seen that effectively promote diversity and inclusion in the Middle East business community?

Diversity and inclusion are key to the long-term success of companies in the region, supporting innovation, driving employee engagement and increasing organizational performance. In the Middle East, where cultural diversity is common, embracing diversity and inclusion can unleash the full potential of talent and drive business growth. Some of the effective initiatives I’ve seen at both Deloitte and other leading organizations include implementing inclusive recruiting practices, providing diversity training and education, and creating a supportive work environment where all employees feel valued and have the opportunity to contribute their unique perspectives.

As a judge for the Middle East International Business Awards and National Business Awards, what qualities do you value in award-winning companies?

I look for several characteristics, such as innovation, strategic vision and execution, and a commitment to sustainability. I also value companies that prioritize customer satisfaction, employee development, and ethical business practices. Ultimately, award-winning companies are those that not only succeed financially, but also have a positive impact on society.