When one looks at the list of companies that compromise the PAL Group, the most striking thing is the sheer diversity of industrial sectors represented. This multi-disciplinary approach encompasses green building, utilities, logistics, travel, construction, fisheries, property development, engineering, district cooling centres and even robotics. Given the varying fields of endeavour in which the PAL Group can claim proficiency, it is reasonable to view the group as a case study in joint venture best practice
Founded in 1999 by General Manager, Syed Basar Shueb in conjunction with the Royal Group, PAL is an indigenous conglomerate that grew organically by identifying opportunities in the marketplace and making the right business partnerships with key companies. The group has grown to now employ 6,000 overall throughout the eleven member companies, seven of which are fully owned.
Shueb sits on a further twenty boards due to the various interests that PAL has acquired along the way. In terms of management, each of the group’s companies,(Al Jaraf Travel, Al Jaraf Fisheries, Al Jaraf Logistics, Aleron, Ambrosia, PAL Systems, PAL Robotics, Hydra Trading, Infinity TV, PAL Technology and Royal Falcon) runs an autonomous operation, with the noted exception of HR and finance which are centralised at the group’s headquarters.
This disparate variety of interests necessitates a further enquiry into how equilibrium is maintained when managing them collectively. CEO Financial spoke exclusively to the group’s General Manager in order to explore the issue. “When entering any joint venture, the most important thing is to be upfront and set out everything from the beginning”, explains Shueb, “When we explore a possible business partnership with a company that has expertise in a particular area that we want to enter, we are careful to lay out all of our expectations from the start so that there can be no confusion down the road.
Transparency is crucial, as is mutual trust between the parties. Once the roadmap has been set out from the start and everybody concerned knows what their deliverables and time frames are, the path is set for working toward a common goal.” Shueb goes on to explain his management style with regard to the group. “When the JV is up and running, each company functions within its own framework. We, the group management, are not necessarily experts in each particular field, so we trust our joint venture partners with decision making for their particular businesses.
Of course, I meet the managers as and when required and keep a close eye on the various interests. We have weekly, monthly and quarterly reviews in which all issues can be discussed. Being fully owned by Royal Group Holding benefits us also, as it means we have a strong partner behind us”. Having actively participated in the World Future Energy Summit, displaying its district cooling and green building credentials, it was notable that PAL also took the opportunity to display “Reem B”, the world’s strongest humanoid robot. Whilst still in the prototype phase, the ultimate goal is for the robot to assist humans with sophisticated tasks and become a truly useful servant. Such forward thinking exemplifies the fact that PAL as a group quite clearly has its eyes firmly fixed on the future.
Having set out a clear blueprint for its future development in Vision 2030, the government of Abu Dhabi as whole, is moving forward with very deliberate purpose towards the aim of developing an ideal economic model. As a key constituent of the Abu Dhabi business landscape, Shueb sees strategic opportunities to service the growth that has been set out in this mandate. “First and foremost, we want to work directly with the government in order to deliver upon the planned infrastructural projects that have been set out. Secondly, under Vision 2030”, explains the General Manager, “the population of Abu Dhabi is set to double within the next two decades in order to service the anticipated growth of and diversification within the economy. These people, as workers, will also become consumers. Therefore, there arises considerable opportunity in servicing their needs as consumers through a variety of routes. Some areas that spring to mind include hospitality, catering and education.
We are interested in forming new joint venture partnerships with a view to entering these support industries.” “For any company experienced in these support industries, we are a natural partner of choice. We have the experience on the ground here which is a priceless commodity. We are well-connected with thepeople that matter and have a proven track record of successfully forging and maintaining joint venture partnerships”, declares Shueb.
In terms of the Emirate itself, the message of the General Manager is clear;
“In terms of a place to do business, Abu Dhabi presents endless opportunity, once you have the right approach. Abu Dhabi is a future city”.