Family businesses & SMEs play a vital role in driving global economic growth. In the Middle East and GCC, family business account for 80% of non-oil GDP and 75% of private sector. Most businesses in this region are young and are in the midst of a succession from the second to the third generation. NextGen Desert Green understands what makes family and closely held businesses unique and the spectrum of challenges that can limit their success. We at NexGen, focus exclusively on helping both the family and the business. We combine our deep understanding of family dynamics with the latest research and best practices to provide solutions that balances business strategy, family systems, control, and family harmony while maximizing shareholder value.
KSA dominates the rich list followed by UAE
Majority of family businesses are young
Most of the family businesses are young with more than half of the businesses currently in the midst of a succession from the second to the third generation. However, only 15% are likely to survive. Succession is the most critical issue being faced as nearly $1 trillion in assets are expected to be passed to next generation in the next 10 years.
CHALLENGES FACED BY FAMILY BUSINESSES
Family-owned businesses in the region are far more complex in terms of number of businesses and family size vis-à-vis their western counterparts
Conflicts between family members/relatives
Competitive business environment following liberalization
No more easy access to credit on the basis of “name lending” by banks
Succession intentions of next-generation members are low and are even in decline
Poor corporate governance
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 GCC-focused family business study by Gulf Family Business Council and McKinsey