Middle East Family Businesses Call for Stronger Governance Systems

Over 80 percent of businesses in the region are family-run or family-owned. With an estimated AED3.67 trillion (US$1 trillion) expected to be handed down to the next generation within the upcoming five to 10 years1, family businesses play a key role in the region’s economic development.

A recent PricewaterhouseCoopers (PwC) survey2 conducted with family business owners entitled: ‘Kin in the Game’ Family Business Survey 2010-11, stated that the biggest external threat facing family business is the transition from one generation to the next. 27 percent of the respondents said they expect their business to change hands within the next five years, with 53 percent wanting business to remain in family hands.

Yet, 48 percent have no succession plan. And of those that do have a succession plan, only 50 percent have decided who will take over the top job. As Barbara R Hauser, chairman, Barbara Hauser LLC, USA and one of the speakers at the Family Business Retreat puts it: “Family business transition requires the right governance while at the same time the right approach to strategic investment and expansion opportunities. As family businesses are one of the backbones of the Arab economies, developing a state-of-the-art governance system is essential to ensure sustainability and continuity for both large conglomerates, as well as in family-run SMEs.”

These key issues will be discussed and debated at the Family Business Retreat in Bahrain. Eminent speakers like Tony Jashanmal, Director, Jashanmal Group, UAE; Walid Chiniara, Co-founder and Managing Director, The Family Business Advisory Group, UAE, Hamid R. Al Zayani, Chairman, Al Zayani Investments W.L.L., Bahrain and Constantin

Salameh, CEO, Abdulla al Masaood & Sons, UAE will touch upon key issues such as ‘Generational Transition in Changing Times’, ‘Dynastic Planning: Family Governance and the Sustainability’ and ‘Times of Change: Challenges Facing GCC Family Businesses Today’ among others.

The Family Business Retreat will take place from January 24th – 27th, 2011 at The Ritz, Bahrain. The selective event is looking at welcoming over 60 delegates with a strong focus on building the family business in the region.