As in other GCC states, family owned and managed businesses contribute significantly to the economy of Qatar. Families in Qatar participated in the economic boom and have accumulated significant wealth and financial power. 

Yet this wealth can be lost when families are confronted with a succession crisis or when there has been a failure to train and prepare the next generation for the transition of the family business.  

Family business restructuring is therefore a cornerstone consideration for families in business. The key is developing an institutional structure which enables the family business to survive over generations. This is known as “conversion”.

There is no single correct answer as to when and how to approach family business conversion; however, experience has shown that it is a necessary precondition for most family businesses to survive and flourish. 

Successful conversion can:

• consolidate family assets; 

• allow specialisation in the running of businesses and management of assets; and

• engage family members in the active management of the business within sound governance framework.

What is conversion from a family business into an institution?