Family-owned businesses account for more than 80 per cent of the business sectors in the Gulf Cooperation Council and the Middle East, says an expert.
Dr Nouf Al-Ghamdi, family business advisor, reveals that the contribution of these businesses to the kingdom’s GDP is more than 90 per cent, reports Saudi-based Al-Sharq.
Meanwhile, family business investments account for 75 per cent of the business sectors in the European Union and contributes 70 per cent to the GDP, she adds.
Al-Ghamdi notes that family businesses will face a major crisis during the next two decades when the third generation takes over, adding that the proportion of family businesses run by the third generation does not exceed 15 per cent at the moment.
She adds that family businesses are the key economic backbone of the Saudi economy, particularly with regard to the creation of new jobs and the Saudisation of existing jobs.
“ in addition to their contribution to fulfilling the needs of community members goods and services and in support of trade and economic relations between the kingdom and other countries of the world,” says Al-Ghamdi.
She says, “Family business investments in the domestic market amounted to SAR247.5 billion, accounting for ten per cent of GDP in Saudi Arabia, while the average wealth of those companies amounted to SAR22.5bn, which is the highest in the Arab region.”
(SAR1 = AED0.98 at the time of publishing)