Firms purchasing other firms or joining hands with other firms is a practice that dates back to the old age. This is not new to the modern day market. Perhaps what one may ask is why such a practice has continued to thrive across generations.
Basically, there are many reasons why one firm may opt to purchase or merge with others. Firstly, some companies purchased other firms or joined hands with them as a means of entering new markets rather than purely starting from the scratch.
However, recent trends have proved that business joint ventures are not just for purposes of business growth but also act as a catalyst for blending of cultural blending and have proved able to show significant effects on cultural/religious dissonant societies. In general, interactions arising from business contacts have shown positive results on the long term, resulting into better understanding and, in some instances, acceptance of unfamiliar cultures, customs as well as traditions. Ventures between the west and Islam businesses have themselves not been a failure. These joint ventures have shown success in cementing relationships between the West and Islam.
In 2008 for instance, Zurich Financial Services Group based in Zurich, Switzerland, announced an agreement aimed at establishing a joint venture company with a UAE-based known as Abu Dhabi National Takaful Company PSC. In the joint venture, the two companies created a new family takaful business. The new insurance company formed out of this venture was named, Zurich Takaful Company Limited with its base in Dubai International Financial Centre. Zurich Financial Services Group received 51% control in the joint business venture company, while Abu Dhabi National Takaful Company PSC received the remaining 49% stake.
In his speech the CEO of Zurich’s Global Life business segment, emphasized that the launch of Zurich Takaful was an astounding opportunity for growth and in line with its Global Life’s strategy, while at the same time reinforces the importance of business looking beyond their operational cultures and adopting openness in responding to clients. According to him, this was a way of acknowledging global diversity and creating products which responds to the needs of these diverse groups.
The new business venture offered a unique and rare partnership, blending global financial strength and experience with specialist takaful experts brought together by two top brands. On the other hand, the CEO of TAKAFUL expressed delight at the new partnership noting that other reinforcing the recognition of the larger Islam as a group worth considering in tailoring businesses, it opens doors for incorporation of the interest of people from different cultures into day to day business operations. The business venture according to him, offers opportunity for the two businesses to participate in rapidly growing business lines within the region and the world at large.
In essence, these kinds of joint ventures offer a platform for strengthening of the already existing ties between the West and Islam, and also offer greater impetus for allowing businesses from the West to venture and fit well into the larger Islam business market.
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