90% of GCC business activity controlled by family firms
New research released by a consulting group claims that 90 per cent of all commercial activity in the GCC is controlled by family businesses, compared to 65 to 80 per cent in other parts of world.
SKOPOS Consulting Group, a provider of customised organisation development (OD) solutions to companies in the Middle East and Africa, has cited recent research which reveals that almost three-quarters of the region’s family businesses are owned and managed by the second generation, and one-fifth by the third generation.
According to SKOPOS, this scenario reaffirms the importance for family businesses in the region to incorporate organisational development mechanisms to ensure long term success and profitability.
An estimated 75 per cent of the Middle East’s private economy is governed by around 5,000 families whose companies generate 70 per cent of regional employment.
“Family businesses in the Middle East should prepare for succession to effectively manage change. Developing the next line of leaders is crucial to ensuring longevity and sustained success of the company, especially given the rapidly changing and highly competitive business environment in the region.
“Incorporating a well-planned organisational development framework that includes leadership development programs will contribute to more effective management, greater long term stability and continued business success,” said Dr. Hussein El Kazzaz, Managing Director, SKOPOS Consulting Group.
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