A seminar titled “Key Long-Term Success Factors for Saudi Family Businesses” revealed the economic strength of family businesses in the Kingdom, and the figures showed that their wealth amounts to about 22.5 billion riyals, the size of their investments in the Saudi market equivalent to 10 percent of GDP and 40% of non-oil GDP.

62% of family business wealth in the Kingdom.

62% of the wealth of family businesses in the Kingdom

In the seminar, which was attended by the Riyadh Chamber, represented by the Family Business Committee, Al-Tamimi & Associates, and PwC, the speakers explained that the Kingdom accounts for 48% percent of family businesses in the Middle East, and 62% percent of the wealth of family businesses is concentrated in the Kingdom.

Graham Nelsen, CEO of the Riyadh Chamber of Commerce and Industry, said that the Kingdom accounts for 48% percent of family businesses in the Middle East, and 62% percent of the wealth of family businesses is concentrated in the Kingdom. Graham Nelson of Al Tamimi & Associates said that family businesses outperform their non-family counterparts, as they possess many advantages, including long-term investment, long-term vision, non-financial goals, community support, cooperation with supporting companies, competition, and social responsibility.

Graham Nelson of Al Tamimi & Associates said that family businesses outperform their non-family counterparts.

Controlling 90% businesses

. Jerry Watts, Legal Counsel at Al Tamimi & Associates, discussed the challenges facing family businesses, revealing that this sector represents the backbone of the GCC economy, accounting for 80% of all businesses in the Middle East, controlling 90% of total business activities and non-oil GDP in the region, and employing 70% of total private sector employment.

Gerry Watts, Legal Counsel at Al Tamimi & Associates, discussed the key challenges facing family businesses, revealing that this sector represents the mainstay of the GCC economy, accounting for 80% of all businesses in the Middle East. Most businesses in the Gulf are under the age of 60, with family businesses run by first- or second-generation family members, with a few companies seeing third-generation involvement, as 66% of family businesses are involved in five or more sectors.

Watts showed that the majority of businesses in the Gulf are under the age of 60, with family businesses being run by first- or second-generation family members.

Developing to survive and compete

<As a result of global competition in local markets and a more open economy, family businesses in the Gulf region are facing significant challenges, but Watts explained that many of them have successfully navigated through the evolutionary phase by separating the company from private wealth, establishing or hiring a family office to independently manage private wealth, and institutionalizing the company by improving governance frameworks, attracting talent, investing in infrastructure, reviewing several organizational structures, and emphasizing the importance of working on establishing a family charter. Firas Haddad said that family businesses in the Middle East are more ambitious in the medium term, with 40% looking to achieve strong growth in the next five years, the second highest rate in the entire survey, and 98% of those who expect this growth are confident of achieving it, pointing to the areas that need to be professionalized: processes, governance frameworks and skills.