Workshop 6 (cancelled)

1. Reflections on the Entrepreneurial and Servant Leadership
Qualities of Hadhramis (Yemen’s most successful class of
businessmen)
Dr. Nabil Sultan *
sultann@hope.ac.uk
Prof. David Weir **
weird@hope.ac.uk
Presented at Symposium Servant-Leadership: Higher Educational Needs and Challenges in
a Global Perspective
(Vrije University, Amsterdam)
________________________________________________________________________
Abstract
No one can doubt that many Arab organisations are run (to a large extent) on management
principles based on Western theories. After all, many of those organisations exist in Arab
countries which were under colonial rule (of one type or another) for a very long time and
consequently inherited the Western culture of running a business which is largely
influenced by Western theories and ethos of management and leadership.
However, there is emerging evidence that some of the leaders of such organisations also
employ business practices influenced largely by indigenous and religious motivations and
that many have proved to be very successful leaders. For example, many Arab business
leaders place great weight on personal relations and at times perform traditional
management practices in order to do business. Furthermore, some of the successes of those
leaders were also attributed to their conservative religious upbringing which placed great
value on honesty, trustworthiness and social and moral responsibility.
In this paper, we look at the subject of leadership from a different cultural perspective and
in doing so we examine the experience of the Hadhrami business leaders of Yemen.
The Leadership Debate
In the next section we review the research and thinking about leadership in Yemen as an
example of leadership in the region more generally. Of course there are differences between
countries, as well as between the rural and urban areas; but Yemen is of interest in its own
right as well as from a comparative perspective. Very little has been written on the subject
of leadership in modern Yemen. This is particularly more evident in the context of
entrepreneurial leadership. This situation could be due to a number of factors. Firstly, most
successful Yemeni entrepreneurs found success outside their own country, in places as far
afield as Southeast Asia and as near as Saudi Arabia and some parts of Africa. Secondly,
many of the successful large enterprises that currently exist in Yemen (especially in the

2. north) are relatively new. Only after the 1962 revolution of North Yemen did privately-held
enterprises started to grow and prosper. Thirdly, privately-owned enterprises (particularly
those of large and medium sizes that emerged and thrived during the British rule) in South
Yemen were nationalised (without any compensation) in 1969 by the country’s Marxist
regime which prohibited the establishment of any significant private enterprise. This state
of affair was to last until 1990, the year of the declared unity between South and North
Yemen.
However, there is enough anecdotal evidence that can form the basis for exploring
examples of Yemeni entrepreneurial leadership. To begin, it should be noted that the
definition of what leadership is has often been problematic for both practitioners and
academics (Ford, 2006, p237). Nevertheless, some generalisations seem to have emerged
from this body of literature. For example, one author (Joseph Rost), collected 221
definitions of leadership ranging from the 1920s to the 1990s which, according to Ciulla
(2005, p160) seem to say the same thing, that “leadership is about a person or persons
somehow moving other people to do something”. As such, some authors criticised the main
theories of leadership for being conceptualised primarily at the “dyadic” or “dualistic”
(leader-follower) level where the overriding concern is with managerial effectiveness
(Yukl, 1999, pp290, 295, 301; Collinson, 2005, p1420; Zoller and Fairhurst, 2007, p1333).
The main concern of mainstream researchers has focused on “what is it that makes an
effective leader?” However, persuasive answers have proved elusive and findings have
been inconclusive and inconsistent (Collinson, 2005, 1423). According to Ciulla (2005,
pp160-161), scholars who worry about constructing the ultimate definition of leadership are
asking the wrong question. The whole point about studying leadership, according to her, is
to answer this question: what is good leadership? The word ‘good’ here has two senses,
morally good leadership (i.e. guided by ethical principles) and technically good leadership
(i.e. effective at getting the job-at-hand done). According to her, a good leader is an ethical
and an effective leader who brings about good change.
Authors such as Alexander and Wilson (Alexander and Wilson, 2005, pp137-156), contend
that integrity and altruism are essential qualities of a “responsible” style of leadership. In
their experience with examining thousands of managers, Alexander and Wilson recognise
that the presence of integrity (at the core of which is honesty and trustworthiness) and
altruism (concern for the welfare of others) in an individual can be a source of strength for
addressing situations created by human behaviour (e.g. self-serving, negligence or
deliberate malevolence).
Greenleaf’s perception of a servant leader is one of a responsible and caring leader. Real
leaders, according to Greenleaf’s view, are those who emerge with a strong desire to serve
others. Conscious choice then may persuade those people to aspire to lead (Greenleaf,
1970). Servant leadership is based on strong altruistic ethical beliefs. It emphasizes that
leaders should be attentive to the concerns of their followers, empathize with them, take
care of them and nurture them (Northouse, 2007). If fact, the term servant leadership
predates Greenleaf by some 1400 years when the prophet Mohammad once made his stance
clear on what he thinks of a leader. He said (in an authenticated Hadith, ie., a saying or
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3. statement): “The Leader of the people is their servant” (in Arabic: Sayyid Al-koam
Khadimohum).
Many of these theories and contentions that emphasise the ethical and altruistic credentials
of good leadership are influenced by ancient and traditional theories of deontology (the
duty to do good) and teleology (the consequences of one’s actions). This notion is clearly
emphasised by Ciulla (2005, p163) who argues that there is a need for both deontological
and teleological theories to account for the ethics of leaders.
Rost (1991, p176) argues that what is needed is a reconstruction of our understanding (as
leaders and followers) of the concept of “civic virtue” so that our self- and group interest
are bound up in the public interest.
Ethical and moral corporate leaders are more likely to engage in promoting corporate social
responsibility (CSR), defined as “using the firm’s resources to advance societal interests”,
Waldman and Siegel (2005, pp195-196).
Examination of some of the successes of entrepreneurial leaders in Yemen suggests that
ethics, altruism, and service to the people, as suggested by the aforementioned definitions
of “good”, “responsible” and “servant” leadership, might have been important factors
behind those successes. However, in the Yemeni context, we contend that those leadership
traits were likely to have been influenced by culture and a religiously conservative
upbringing.
Yemen as a Case Study
Considering the Yemeni case in point, Islam has played an important role in establishing a
long tradition of CSR and community cooperation in response to a historical heritage of
neglect of social duties on the part of the state. Social responsibility is an obligation that is
called for in the Quran and is in keeping with the conduct of the Prophet Mohammad
(originally a trader widely known for his honesty) and the few disciples who ruled after
him. According to Benthall (1999, p11) it is doubtful whether any other world religion has
an equivalent to the Islamic principle that a hungry person has the right to share in the meal
of one who is well fed. Moreover, Islam also places great importance on trust and honesty
in dealing with one another and in trade. The Quran, in more than one place, warns against
unfair trading.
Beekun and Badawi (1999, pp28-29, 39) argue that, from an Islamic perspective, Muslim
leaders should be honest, not because being so makes better leaders but also because they
are accountable for their deeds to a very high authority: Allah. They also argue that the
Quran explicitly links the concept of honesty (amanah) to leadership and quote the story of
the Prophet Yusuf (Joseph) in the Quran as evidence.1
1
The Quran reveals how Yusuf was placed, by the king of Egypt, in a responsible and leadership role (in charge of the
granaries and storehouses of the kingdom) due to his trustworthiness (Yusuf, 12:54-55).
.
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4. Many of Yemen’s entrepreneurial leaders are largely the product a conservative Islamic
upbringing which characterised many of Yemen’s rural areas where most of the country’s
entrepreneurial leaders during the first half of the 20th and before originated. Many of those
leaders saw it as their duty to provide vital public services denied to local communities by a
colonial regime (as was the case in South Yemen and parts of Southeast Asia and Africa)
and an autocratic and backward Imamic regime (as was the case in North Yemen before the
revolution).
One of the main salient characteristics of private sector Yemeni enterprises is that they
tended to be owned by families, often the founders and their family members e.g. brothers,
sons etc. This is by no means a Yemeni phenomenon. Almost 95 per cent of American
businesses are family-owned and in Asia family dynasties control 46.6 per cent of the GDP
in the Philippines, 84.2 per cent in Hong Kong and 76.2 per cent in Malaysia (Ciulla, 2005,
p176). This feature tends to provide the socially responsible leaders of such organisations
with the necessary flexibility and discretion needed in responding to the social obligations
that present themselves. According to Roper and Cheney (2005, p99) the relative autonomy
of privately-owned companies has allowed the consistent pursuit of social values,
sometimes against the prevailing wisdom of financial analysts and in marked contrast to
some competitors.
A close examination of some of the success stories of Yemeni entrepreneurs indicates that
culture, religion and the desire to address the inequalities of resource allocation and neglect
by the state played an important role in their emergence as successful entrepreneurs and as
leaders.
The Hadhrami Phenomenon
Yemenis, especially those who come from the region of Hadhramaut2 (known as
Hadhramis) had developed a reputation for being successful entrepreneurs. Hadhramis
made a name for themselves as successful business entrepreneurs, particularly in Southeast
Asia, Africa, Saudi Arabia and South Yemen. Sir Richard Burton, a 19th century British
orientalist, once remarked “it is generally said that the sun does not rise upon a land that
does not contain a man from Hadramaut” (Burton, 1966, p58). Hadhramis were also
famously known for their integrity and altruistic credentials which may be ascribed to their
conservative Islamic upbringing. This is not surprising given that the region of Hadhramaut
was historically known as an Islamic teaching centre. Furthermore, Hadhrami businessmen
tended to help other emerging Hadhrami businessmen through the provision of seed capital
or credit. They were also famous for their ability to resolve business disputes between them
through mediation which often took place in the majlis (i.e., living room) of their
designated Hadhrami “sheikh” (a person which commands the respect of others). They had
very little need for police or courts (according to one observer in a programme about
Hadhrami migration aired by the famous Arab satellite channel “Al-Arabia” in 2008).
These meeting places also played an important role in ensuring that business was conducted
2
A vast region (historically famous and religiously conservative) that occupies a large part of South Yemen.
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5. fairly. For example, people who behaved inappropriately (e.g. failed to pay their debts etc.)
could run the risk of being ostracised by other Hadhrami businessmen who could refuse to
do business with them. This arrangement ensured discipline and fair play.
Hadhramis are believed to have begun their journey (or diaspora as is often described) to
Southeast Asia in the early 18th century; a journey which lasted to the Second World War.
By the end of the 1930s, about 110,000 Hadhramis are thought to have lived in that part of
the world. Out of this number, the majority (90,000) lived in what was then known as the
Netherlands East Indies, present day Indonesia (Lukas, 2002, p5).
In Singapore, for example, during the 19th century they formed a powerful and influential
economic elite who owned substantial swathes of land and traded in clothes and a wide
range of goods such as spices and tobacco. Most importantly, they were well respected
among the Malay/Muslim community for their religious piety and social responsibility
which manifested itself in the building of mosques, schools and the upkeep of poor families
(Bafana, 1996, p5). Such was the respect for those entrepreneurial leaders that gangsters in
Singapore had a code which forbade the bothering of Arabs, while other distinguished
figures ensured that they received due credit for their contributions (Albahar et al, 1996,
p4). In the 1940s, the famous Al-Kaf Hadhrami family in Singapore created bequests to
support the distribution of food to needy local families every Thursday or Friday (Carapico,
1998, p70).
When the Al-Kaf family eventually returned to Hadhramaut in the early 20th century, they
continued their charitable behaviour such as making donations to the poor, bettering city
slums, constructing roads, introducing small English automobiles (transported by camel
across the plateau and assembled in the valley), building elaborate guesthouses equipped
with modern furniture, food and servants (Pike, 1940, p648). One particular Al-Kaf family
member (Sayyid Abubakr Al-Kaf) was the main engine for these activities. Indeed, he is
the epitome of a servant leader. He spent a great deal of his wealth and time in Hadramuat
trying to better the lives of communities that were neglected by the colonialists of Aden and
their subservient local sultans.
Sayyid Abubakr Al-Kaf, with support from Harold Ingrams, the first political officer in
Hadhramaut, succeeded in establishing peace among the warring tribal factions of
Hadhramaut which lasted for generations. According to Pike (1940, p648), this was the
greatest humanitarian achievement in the modernisation program of Hadhramaut. In 1938
Sayyid Abubakr Al-Kaf received the first recognition for his public services when he was
appointed Companion of the British Empire (CBE). The following quotation sums up the
admiration and respect held for this man by one British official (Ducker, 2003):
Sayyid Abubakr was a man of independent spirit who did not hesitate to speak his
mind. When he was advanced to KBE in 1953, he declined to give up his CBE, as
protocol required, remarking that what the British gave with one hand, they took
away with the other! Both decorations appeared in his letterhead. In 1954 he was
formally knighted by HM Queen Elizabeth during her one and only visit to Aden.
During the ceremony Sayyid Abubakr was exempted from the requirement to kneel
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6. before the Sovereign; he had earlier made it clear that as a Muslim he could only
kneel before God.
Sayyid Abubakr was respected in his personal life as a devout Muslim and a man of
his word; and he was blessed with a wife who had an equally high reputation.
Ingrams wrote of him at some length in his book, Arabia and the Isles. From the
early 1930s until his death in 1965, Western travellers and many British officials,
myself included, benefited from his wisdom, help and unstinting hospitality….
Sayyid Abubakr was a great conciliator and public benefactor whose name will be
remembered with respect long into the future.
Hadhramis were equally influential in Indonesia and Malaysia, whether as successful
entrepreneurs, political, administrative or religious leaders. In Malaysia, the Arabs (largely
of Hadhrami descent) played a prominent role in ending the Thai occupation of the
sultanate of Kedah. One particular person of Hadhrami descent, Sayyid Jamal Al-Layl, was
awarded in 1843 by the Sultan of Kedah for his loyalty in the struggle against the Thai by
being made sultan of the newly created border state of Perlis. The Jamal Al-Layl was the
only Arab family to rule a Malay state and it remains the ruling family of Perlis to the
present day. Other personalities of Hadhrami descent were highly influential religious
scholars such as Sayyid Muhammad Al-Aydarus (the son of a grain merchant from Java)
who lived in Trengganu and Sayyid Ahmad Al-Attas who lived in Johore and was reputed
to have been the first person to be appointed as state mufti (Othman, 1997, pp85-89).
In Batavia (Jakarta) a group of wealthy Hadhrami entrepreneurs and property owners
established in 1901 Jamiyyat Al-Khayr (Benevolent Society) whose main aim was to lay
the foundation for a more modern type education styled on Western curriculum which
included subjects such as mathematics, history, geography and English alongside more
traditional Islamic subjects. The drive for education received a major boost in 1914 when
Hadhrami merchants established the Arab Society for Reform and Guidance (Jamiyyat Al-
Islah wa Al-Irshad Al-Arabiyya) which exists to this date. It comprises over one hundred
branches throughout Indonesia and has around fifty thousand members. Its activities
include the running of kindergartens, primary and secondary schools and hospitals. The
founders of this organisation saw education in languages and modern science as key to
overcome the backwardness of the Islamic community and bring progress (Mobini-Kesheh,
1997, pp231-240).
The Hadhrami diaspora also extended to East Africa where they established successful
businesses in those regions, particularly in the retail industry which they controlled and, to
a lesser extent, the wholesale and resale of the cereal trade. However, their main influence
in East Africa was more in the educational, cultural and political spheres than commerce.
Saudi Arabia was another destination for the Hadhrami diaspora. In 1969 Hadhramis living
in Saudi Arabia were estimated to be numbering between 150,000 to 180,000 (Freitang,
1997, p320). Many of them rose to become powerful entrepreneurs such as Salim Ahmed
Ben Mahfouz, Abdullah Ahmed Baqshan, Bamawada, Bakhashab and Bin Laden. The
6

7. businesses established by these people employ thousands of people and continue the
socially responsible Hadhrami tradition. Many of them have charities such as the Awon
Foundation and Taybah Welfare Association (IRIN, 2007).
However, the Hadhrami entrepreneurial spirit lived on to create wealth and prosperity in
Yemen itself. After the Second World War, Aden, under British rule, underwent a rapid
economic development. In the late 1950s, its port ranked fourth in the number of ships it
handled after London, Liverpool and New York and its social services were more advanced
than those of many European countries (Bidwell, 1983, pp81, 82). As a consequence, trade
prospered and the city attracted many people from within South and North Yemen and
many other parts of the world.
In this vibrant economic environment, an elite of Hadhrami wealthy entrepreneurs
emerged. Like their fellow Hadhramis of the diaspora, many were devoutly religious. They
were highly regarded for their integrity and altruistic credentials. Hadhrami names such as
Bazaraah became household names in Aden during the 1950s. They were responsible for
the support of many poor Yemeni families and built mosques and schools (accessible to all
people irrespective of their ethnic or country of origin) throughout the country.
Conclusion
There is very little research on Arab entrepreneurial leaders in any depth or scale that could
give some insights into how such people lead their organisations and/or influence their
social environments. In this article, business success was our yardstick for selecting leaders.
The examples of Arab entrepreneurial leaders presented in this article were intended to
support the centrality of ethics and altruism in good, responsible, servant and successful
leadership. Furthermore, these examples have also demonstrated, in our view, factors
particular to the environment from which those leaders have originated which might have
played an important role in influencing their actions such as culture and a conservative
Islamic upbringing. We believe, however, that more research is needed to explore this
phenomenon in greater depth and this would be a worthwhile effort for a future study.
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* Dr. Nabil Ahmed Sultan graduated from the University of Liverpool with a PhD in Management in 1992
and in 1996 he received his MSc in Information Systems from the same university. After a two-year working
period for the United Nations Development Program (UNDP) as Program Officer in Sanaa (Yemen) and
Regional Program Officer at the Arab Bureau in New York (USA) he moved on to work as a Program
Officer/Lecturer in IT and Business for the University of Liverpool’s Center for Continuing Education until
1998. From 1999 he worked as a Senior Lecturer at Liverpool Hope University’s Faculty of Business and
Computer Science where he developed and taught many successful modules and programs and published
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10. many works. Dr. Sultan has a keen interest in Arab Gulf affairs and has provided consultancy work relating to
this region to a number of businesses.
** Prof. David Weir is an experienced and highly successful Business School Professor and for 25 years a
Dean, with outstanding career record in institutional leadership, teambuilding, professional leadership and
program development, in UK and internationally, special research and teaching expertise in Management in
the Arab Middle East, Strategic Management, Multicultural Management, Risk and Crisis management,
Poetry of Management, Strong public service profile and community recognition. He has substantial high-
level industry experience at board level and as strategic consultant. As well as having a large consulting
portfolio of private and public sector clients, he also considerable experience as mentor and advisor to
corporate leaders as well as younger faculty and consulting colleagues. He has an impressive record of
publications on the Arab Middle East and development issues.
10