Alain Bejjani: Response to conflict will strengthen Dubai

Alain Bejjani arrives at the Arts Club in Dubai unhurried. It is 1pm, 27 days into the Iran conflict. Outside, a storm billed as the “Dubai cyclone” is building. He is due to fly to Tokyo later in the evening.

None of it seems to register. Conflict and disruption are familiar territory for the former chief executive of Majid Al Futtaim, a high-profile UAE retail group that counts Carrefour of France – a ubiquitous supermarket operator up and down the Gulf – among its franchises. Bejjani has led 50,000 employees over 17 countries, producing $9.5 billion in revenue.

He is speaking ahead of this month’s launch of his book Next: Leading Through the New Realities, in which he charts his role as a leader through times of volatility. His experience means that he is unfazed by the drama and conflict of the last month.

Bejjani grew up in Lebanon during the civil war and has since led through a succession of shocks: the 2008 financial crisis, the oil price downturn in 2014, the Covid-19 pandemic and the Russia-Ukraine war.

“What you discover in crisis and in war is how strong life is,” he says. “The desire for life to prevail is something you only truly understand when you experience it.”

He sees that same instinct playing out in Dubai today. Since the US and Israel launched strikes on Iran in late February, Tehran has fired thousands of missiles and drones at Gulf states.

The UAE has borne the brunt, with air defences detecting large numbers of projectiles aimed at the country and stopping most in their tracks.

Bejjani draws a distinction between perception and reality. He says uncertainty may initially hit discretionary spending – luxury retail, travel and property – but confidence tends to recover quickly if incomes are secure. He argues that the pattern is already visible.

“The amount of disruption to daily life is negligible,” he says. “Of course there is an economic impact, but people are still living, still working.”

Majid Al Futtaim media library

The comparison with Covid-19 is, in his view, far more severe. Almost six years to the day, he still reflects on how quickly the situation escalated in early 2020, when malls across Dubai were forced to shut.

“I would have never imagined that,” he says. “At that point, our crisis response was straightforward. First, we focused on keeping the business running as much as possible. Even as large parts of the economy were shutting down, which is not the case today.

“Second, we prioritised our people. We made a clear decision not to reduce salaries or cut jobs because of Covid-19. Of course, normal performance management continued, but no one was let go as a result of the pandemic.”

The UAE’s handling of the pandemic ultimately reinforced its position as a haven for capital and talent, even if the latest bout of regional instability has tested that perception.

Bejjani argues that criticism from abroad often overlooks the reality on the ground.

“You know, the old world is always sceptical of the new world,” he says. “From a safety standpoint, we continue to be safer in the UAE today on an individual level than if we were in London or in the US.”

• A Houthi Red Sea return would deepen the strain on Gulf logistics
• From majlis to Discord, private conversations are not for sales
• Gulf oil producers can bypass Hormuz – but they cannot replace it

According to Bejjani, lessons from Covid and the supply chain turmoil that followed the Russia-Ukraine war have strengthened contingency planning, particularly around food security and global sourcing.

The result is a system that continues to function even under pressure. Airports remain operational, banks liquid and consumer activity, while softer, has not collapsed.

“I’m confident this will ultimately strengthen the country and further reinforce Dubai’s global position,” he says.

“It will earn even greater respect, because it has demonstrated that it is serious – serious about safety, about people’s lives and livelihoods, and about delivering on those commitments.”

Bejjani draws a sharp contrast with Lebanon, where instability has persisted for years and has been compounded by renewed Israeli attacks aimed at forcing Hezbollah out of the country.

“Sadly, there is no magic wand,” he says. “I think by encouraging more people to vote in larger numbers, this will encourage better, more serious people to run for office. In my opinion this could lead to a gradual improvement in the country.”

However, he is unlikely to be among those running, he concedes: “I love politics but I don’t have any political ambitions.”