The Role Of Succession Planning And Corporate Governance In Ensuring The Longevity Of UAE Family Businesses

The Middle East's economy is dominated by family-owned businesses, which make up 90% of the private sector

The third generation of family businesses, however, struggles to remain profitable with over 95% struggling to remain profitable

the most common reasons causing family businesses to fold, in which the reins are usually handed to a successor

Comprising over 90% of the private sector in the Gulf region, family businesses are a catalyst of innovation

Without proper transition planning or alignment on the previous and future visions, the reins are usually handed to a successor

Not only in the UAE, but globally, family businesses showed great agility during the COVID-19 pandemic

Almost 60% of family-owned businesses reduced their expenses due to the pandemic

Around 8.6% of family businesses worldwide laid off employees during the pandemic, versus 10.2% of non-family businesses

By renegotiating vendor contracts, almost 60% of family-owned companies avoided losing employees and reduced expenses.