Executive Summary
Family businesses are the mainstay of the GCC economy and account for over 90 per cent of the private sector. Traditionally involved in trading, manufacturing, financial services, real estate and construction, family businesses have diversified into other sectors, over the years. The single key feature of a GCC family business is the ownership structure, which takes the form of direct and complete family control, and is characterized by a handful of senior family members influencing decision making. Liberalization in the GCC has led to stricter regulations in the capital markets, increase in competition, both domestic and foreign, and a greater need for transparency and accountability.
In this report, we look at family businesses in the context of GCC, and distinguish between the running of family and non-family businesses. The report provides an analysis of over fifty family groups in the GCC, their sector preferences, and generational success. Furthermore, we list the strengths and challenges faced by GCC family businesses, and recommend best practices for the future.
