With 60-80% of all GDP in the region being generated by family businesses it is great to see that firms in the Middle East and North Africa are aware that the skills required by the next generation of leaders are different to those of their predecessors.
Many of the businesses in the transition mix are diversified conglomerates and with constantly changing markets they present challenges in themselves. Add the dynamics of family firms and the need to plan for the future of the family and the business and there is a lot on the plate for the next generation to tackle.
Introducing the right governance structures to define roles and responsibilities and to help with the professionalisation of the business will also help put them on the right path.
Family businesses in the Middle East and North Africa are confronting important internal and external challenges. New generations are taking control of family conglomerates with different ideas about how these should operate and what the role of family members should be. Meanwhile, their external environment is becoming more uncertain and competitive. To handle the generational transition and their external circumstances, family businesses should seek to become institutions that clearly separate business and family, have adaptive strategies to compete and grow within and outside the region and strive for distinct and sustainable corporate enablers. Each family business will have a different path to institutionalisation and priorities based on its own situation