“Family offices account for more than half of the Mena region’s GDP and the lion’s share of the workforce…family firms across the Middle East are preparing for a future shaped by sustainability, digital technology, and new growth,” according to Forbes Middle East.
The UAE and Saudi Arabia, the two largest economies in the Arab world, listed 37 and 25 entries, respectively, in this year’s Forbes Middle East’s ‘Top 100 Arab Family Businesses’.
Trailing behind is Kuwait with eight family businesses followed by Qatar with seven, Egypt (6), Oman (6), Bahrain (4), Jordan (2), Morocco (2), Algeria (1), Lebanon (1), and Yemen (1). Forbes Middle East stated that 89 of the 100 family firms are diversified, with operations in multiple sectors.
“PwC estimates that family businesses contribute 60% to GDP in Mena and employ
80% of the workforce, while Harvard Business Review reports that families control 65-75% of businesses in the Middle East valued at $1bn or more. Looking ahead, the trend looks set to continue, with approximately $1tn expected to pass to the next generation of Mena businesses within a decade,” Forbes Middle East stated.
Forbes Middle East added: “Despite the challenges, families still dominate the region’s business scene, and all indications suggest that will remain the case for many years to come.
“With solid foundations and long legacies upon which to build, Middle Eastern family businesses are planning for a future of growth and expansion, with 89% expecting revenue growth this year and 58% looking to expand into new markets in the next two years, according to PwC research. Most importantly of all, perhaps, nearly two-thirds of firms in the region have up-and-coming family members working in the business, paving the way for a new generation of family-led success.”