Purpose, Partnership and Policy – The Story of Mohammed Abdallah AlGaz

In this article, Khalifa AlGaz, Head of Science & Technology Diplomacy Section, Ministry of Foreign Affairs and 3rd generation family business member shares the entrepreneurial journey of his grandfather, Mohammed Abdallah AlGaz. Early on, his grandfather’s journey taught Khalifa much about resilience, the power of interconnected thinking and how an ambitious vision for one’s own family can transcend to the society we live in. Khalifa realized that this unique entrepreneurial journey and family legacy can teach both private and public sector leaders alike how a clear vision for the future and the ability to develop and execute long-term strategies whilst integrating various stakeholders, can drive success and lasting impact.

Entrepreneurial Beginnings

Mohammed Abdallah AlGaz was born in the early 1920s in Dubai, where he grew up in abject poverty. Despite the economically challenging circumstances, AlGaz demonstrated an entrepreneurial spirit from an early age. As a young man, he took on various odd jobs, saving what little he earned to rent a dinghy and purchase textiles from ships that passed along the coast of Dubai. He would then sell the goods in Dubai for low profits. Between 1937 and 1941, this small independent trading venture allowed AlGaz to accrue a modest capital of 2,000 Indian rupees by the age of 20 – an early success that laid the foundation for what would eventually become the United Arab Agencies (UAA). However, his endeavors were disrupted during the Second World War, when Dubai was struck by a famine that affected the whole region.

AlGaz lost his father at a very young age, making him the head of his family. To escape hunger, he moved with his mother and grandmother to Manama, the capital of Bahrain, where he eventually found work as a carpenter in neighbouring Dammam, in the Kingdom of Saudi Arabia. During these years, the family lived with great frugality and modesty, with AlGaz working diligently and tirelessly in near isolation to support his family. Fortunately, by the end of the war, the famine in Dubai had waned, allowing him and his family to return home to their community.

Following the end of the Second World War, and with the general improvement in economic conditions, AlGaz anticipated that consumers in Dubai would begin seeking goods beyond the bare necessities.

Acting on this insight, he used his savings to buy dried lemons in Manama, which he successfully sold to grocers in Dubai at a significant profit. This marked the beginning of his next trading venture, which quickly grew to include a variety of goods such as textiles, foodstuff, and building materials. AlGaz leveraged the connections he had established in Manama and Dammam, as well as the experience gained during his years of frequent travel overseas, to outpace the growth of many of his competitors and accelerate his business growth.

A Phase of Growth and Expansion

However, despite his commercial success, AlGaz’s underlying motivation was a desire to improve his community’s well-being. He often reflected on this period as a time when he was driven to offset the hardships caused by the famine in Dubai, considering it his civic duty to venture abroad in search of needed goods. During this period, AlGaz met Juma AlMajid, a young and ambitious entrepreneur from Dubai. The two entrepreneurs were aligned in their vision and values, and soon decided to join forces and form what was initially known as the “Mohamed & Juma AlMajid Company”.

Early on, both AlGaz and Juma AlMajid understood that the post-war Arab world, like Europe and North America, would be determined by global megatrends and a growing demand for new infrastructure. They foresaw an urgent need for paved roads, the establishment of an electricity grid and the connection of households, and the growth of the consumer economy. Based on this vision, their partnership – which vertically integrated logistics, trading, and distribution of general goods – quickly flourished.

Over the years, the Mohamed & Juma AlMajid Company expanded beyond trading general goods, branching out into consumer electronics, cars, construction materials, and appliances, among others. Notably, it was the first company to sell Nissan cars in Dubai. AlGaz famously drove Nissan cars during his hunting trips, exemplifying their superior desert-trekking capabilities as a marketing strategy. This eventually caught the attention of government officials, as well as royalty from several Emirates.

Shaping a New Nation

Shrewd and civically driven, AlGaz quickly realised that Dubai’s modernisation required collaboration between the private and public sectors. He also understood that no single corporation would be able to modernise the city without government support. This insight was pivotal for the company, and led to a division of roles: AlGaz concentrated on politics and public policy, while Juma AlMajid increasingly focused on business operations. In 1958, AlGaz officially entered the public domain as a member of the Dubai Municipal Council, the precursor of today’s Dubai Executive Council. Recognised for his financial expertise, he was appointed to the committee tasked with overseeing the management of the Dubai government’s budget. Around the same time, AlGaz also became a board member of the Dubai electric company, which was tasked with establishing the city’s electric grid.

During this time, AlGaz and Juma AlMajid, who had newly rebranded the company as United Arab Agencies (UAA), began securing exclusive distributor licences with global brands such as Phillips, General Electric, Nissan, Opel, Kia, Frigidaire, Yokohama Tires, and Pepsi, among others. Their conglomerate was guided by a clear vision: to not only embrace modernisation, but also to drive it. As the Dubai government was paving roads and electrifying homes, UAA was selling cars, radios, air conditioners, and fridges, as well as fast-moving consumer goods.

The company operated with the belief that the private sector had a duty to complement the strategic directives of the public sector and that economic prosperity was a shared responsibility.

Throughout this period, UAA increasingly focused on property development, specifically developing residential buildings, commercial real estate, and hotels. Notably, in 1957, UAA was responsible for constructing AlKhaleej Grand, one of the first multistorey hotels on the Dubai Creek. Similarly, in 1963, it developed the famous Phillips Building, which was the tallest structure in Dubai’s then sparsely populated skyline, setting the stage for the construction boom that would follow in the coming decades. Like UAA’s focus on modern consumer goods, the drive for construction was also motivated by a vision to provide modern living options for the waves of new residents pouring into Dubai. Above all else, AlGaz and Juma AlMajid’s partnership was built on their clear and unwavering vision of transforming Dubai into a modern metropolis.

In 1964, after two decades of partnership, AlGaz and Juma AlMajid decided to amicably split the UAA conglomerate, equally dividing their assets to focus on their individual responsibilities. AlGaz continued his work in the public sector and increasingly directed his attention toward philanthropy. He became a key advisor to Sheikh Rashid bin Saeed AlMaktoum, the leader of Dubai, who he accompanied to state visits in Egypt, Iran, and the UK, as well as oil concession meetings in the US. Throughout the 60s, AlGaz assumed several public positions, including the first Secretariat of the Dubai Chamber of Commerce, as well as a member of the Dubai Port Committee tasked with enhancing port services. He also played a crucial role in aligning perspectives between Dubai and Abu Dhabi to establish a union of the Trucial States. After the formation of the United Arab Emirates in 1971, AlGaz contributed to establishing the Federal National Council, and was eventually appointed as the first vice-chairman of the Central Bank, owing to his years of experience with the budgetary committee in the Dubai Municipal Council.

Strength in Purpose

Mohammed Abdullah AlGaz’s journey is an example for how family business leaders are generational thinkers and not only shape their companies, but also contribute to economic growth and in unique cases even to nation building. By examining the contributions of entrepreneurs, business and society leaders, we gain valuable insights into the factors impacting economic growth and societal change. Their experiences offer lessons on resilience, innovation, and strategic thinking, which can inform approaches to leadership and decision-making today and for the future.

Publication Date: xx-January-2025