Doha: Five companies from Qatar which are jointly owned and run by family members have made it to the Forbes’ Top 100 Arab Family Businesses in the Middle East 2021 list. The Qatari family businesses include Al Faisal Holding (Rank 11), Alfardan Group (Rank 26), Almana Group (Rank 72), Abu Issa Holding (Rank 95), and Almuftah Group (Rank 100). Only Arab families were considered for the list, while listed companies were not considered to be family-owned businesses.
Forbes noted in the list that family businesses are considered more influential than corporates in the Middle East, citing a PwC report on family firms contributing approximately 60 percent of the region’s GDP and employing 80 percent of the workforce. The report estimated that in the previous decade, up to $1 trillion had passed from one generation to the next within the Middle East’s family businesses.
In its most recent Middle East Family Business Survey 2021, PwC highlighted the extraordinary resilience and agility of family businesses in the Middle East amidst an exceptionally challenging year. It added that while many have been hit hard by the COVID-19 pandemic, they remain optimistic that growth will return in the coming months and years, and are looking forward to the future.
PwC said that 89 percent of Middle East family businesses expect revenue growth in 2022, while 58 percent plan to expand into new markets in the next two years. The survey added that 42 percent of the family businesses in the region admit that conflict does occur from time to time. It added that 59 percent also see an opportunity to lead on sustainable business practices.
The report went on to reiterate that financial resilience of family businesses makes them well-placed to succeed and fuel the post COVID-19 recovery. Recent events have also shown that those who embarked on their digital journey were better placed during the crisis, PwC noted.
Of this year’s top 100 family firms, 87 percent are diversified business conglomerates, which invest in a variety of different sectors and geographies. When it comes to gender diversification however, family businesses in the Middle East are still very much run by men, said Forbes. It added that of the top 100 family-run companies in 2021, 32 of the chairpeople are the original founders or cofounders, and only three are headed by women. “As new generations take over and families modernise, we may see more women in the top roles in future,” Forbes added.
