Family Businesses: Handing Over To The Next Generation
Type
E-journal
Date
18 Apr 2016
Jurisdiction
Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, United Arab Emirates
Taxonomy
General Company Law & Business Entities, General Family Law
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
Along with oil, family businesses are the backbone of the Arab economies. The majority of family businesses in the Middle East are now transferring to the second generation and it is important that they have succession plans in place to ensure that the business survives and prospers following this transition.
Most family businesses have governance structures in place for their commercial matters, but fewer have formal ownership structures.
Unfortunately, corporate governance is often given a lesser status than profitability. It is important that a well-defined succession plan or good corporate governance is implemented before the business passes to the next generation.