In MENA economies, family businesses account for 60% of the GDP and employ close to 80% of the workforce. That said, only 9% of them have a clear succession plan in place. Shadow Governance Intel picks apart the key watch points for foreign investors ahead of the generation shift that is set to dominate the region’s commercial landscape over the foreseeable future.

  • The issue of succession planning in big family conglomerates presents a challenge to (1) those families in question and (2) the actors engaging with them.
  • For their part, a commercial family must balance the dual objectives of providing shared access to wealth on one hand, with pinpointing and empowering its key future decision makers on the other hand. While both are important variables, they may run against one another in certain circumstances.
  • From a foreign investor or partner’s standpoint, dealing with leadership transitions potentially means a reshuffling of touch points in the family entity. With large families and many individuals involved, maintaining access to the real decision makers become a priority.
  • Reputational and integrity concerns also come into play in this environment, creating a constant need for seasoned business intelligence to stay in tune with the conglomerates being invested in or partnered with.