Al Tamimi & Company launches first dedicated GCC Family Business and Private Client Practice

The Practice has been established to address the many issues facing family business organizations in a dynamic, changing world. Al Tamimi & Company has offered quality legal advice to companies and individuals in the Middle East for over 15 years. The firm has expanded to become the largest, local, non-affiliated law firm in the GCC. To date, Al Tamimi is the only law firm in the MENA and GCC regions to have developed a full-service Family Business and Private Client Practice dedicated to families in business, Ultra High Net Worth Individuals (UHNWI) and entrepreneurs.

"Trust is the essential factor that governs the longevity of a family business, trust amongst the business owners themselves, their employees and customers. Today, this trust has to be protected through legal and financial mechanisms and constitutional foundations developed to maintain the longevity and profitability of the family business structure," said Essam Al Tamimi, Founding Partner of Al Tamimi & Company. "Agreeing on a family constitution that clears up the thorny, emotional family issues - those that cause the most conflicts and necessitate difficult but resolute decisions - frees up resources to tackle the more pressing business issues."

Statistics have shown that family businesses in the GCC form the backbone of economic activity where they comprise 83 per cent of all business enterprises. They employ an estimated 60 percent of the labor force and create at least 70 per cent of new jobs. Supporting such organizations in building long term, stable legal foundations becomes essential for economic growth, especially with the onslaught of multinational competition and international trade agreements and obligations.

Family-controlled businesses (FCBs) dominate the market both in terms of the size and range of their investments and the numbers they employ. According to studies conducted recently in North America and Europe, FCBs are more profitable than non-FCBs; they enjoy stable earnings; better cash flow and higher sales per employee.

FCBs also tend to grow faster and have higher returns on assets and on equity than non-FCBs. They often endure twice as long as non-FCBs, despite the notorious adage "shirtsleeves to shirtsleeves in three generations."

Walid Chiniara, the Head of The Family Business & Private Client Practice at Al Tamimi, said:

"The strength of a family business lies in its industry specific comparative advantage, expertise and financial muscle. In a highly competitive market scenario - as is currently the case in all GCC countries - where economies are being opened up to foreign investment, goods and services, allocating resources to compete in the market and away from internal family feuds is the key. We will assist families wishing to protect their interests by devising enduring succession plans and help them address the underlying human aspects."

In this regard, the Practice will work with seniors and juniors in a family business to defuse tensions and resolve conflicts where appropriate. "In addition, the Practice will act as a mediator and facilitator for families looking at the key areas of governance and succession planning," continued Chiniara.

Chiniara is a counselor-at-law, a family business advisor and a mediator with over 25 years experience advising multinational corporations, private clients and families in business across five continents. He is a member of the Quebec Bar, the Family Firm Institute and the Society of Trust and Estate Practitioners.

The Practice comprises family business, corporate and trust experts who will provide high quality, professional, innovative, flexible and above all confidential advice. While it will continue to offer traditional corporate re-engineering, tax and estate planning, mergers and acquisitions (M&A), real estate and other investment banking-related services, the new Family Business and Private Client Practice will provide uniquely specialized and dedicated family business advisory services; it will conduct continuity audits, organise family councils, devise family and corporate governance systems as well as manage and resolve inter-generational conflicts and draft family constitutions.