Manama: Mahmood Rafique, Editor: Four leading family businesses in the Kingdom of Bahrain are among the top 100 Arab Family Businesses 2023 list released by Forbes Magazine on Wednesday, August 2nd, 2023.
The latest Forbes issue released featured Farooq Yousif Khalil AlMoayyed of YK AlMoayyed (31st place); Khalid Kanoo of Yusuf Bin Ahmed Kanoo Group (45th place); Dr Esam Abdulla Fakhro of Abdulla Yousif Fakhro Group (76th place) and Nawaf Al Zayani of Al Zayani Investments (79th place) among top 100 Arab Family Businesses.
Most of the top family-owned businesses in the Middle East either started off as dealers, agents, or distributors for international companies, with the most successful enterprises evolving by adding more services and sectors to their portfolios. However, recently more family businesses are looking to access the region’s stock exchanges for growth. In our 2023 list of the Top 100 Arab Family Businesses, over 60% are major shareholders in a company listed on a regional stock exchange. Most of these listed companies’ family businesses were among the founding shareholders. These listings not only bring in capital but allow family members to unlock value, as well as improve transparency and governance.
While there are now female board members in most family businesses in the Middle East, all the heads are still men. Only four of the top one hundred family businesses have women leaders. Most of the companies on our list have stood the test of time, with six of the entries established in the 1800s.
Saudi Arabia dominates with thirty-three entries and is home to four of the top ten companies. The U.A.E. comes in close second place with twenty-nine entries, followed by Egypt with nine, and Qatar with eight. Family businesses have also begun investing in startups, with the Mansour and Abdel Latif Jameel families investing in global startups. The Tamer Group acquired Mumzworld, a childcare e-commerce company, in 2021.
Family businesses are still playing catchup in terms of sustainability, but as most are reaching the second or third generation, they have begun to change with the times. Many of them are bringing in corporate governance, establishing clear structures, and putting professional managers in place. A few companies have separate family boards and corporate boards, and several have non-family members on their boards. Most have a non-family member in the top management team.
On the ESG front, the region’s family businesses focus on social causes rather than the environment. According to a 2023 PwC study, only 11% of family businesses have set targets around their environmental impact and only 38% regularly communicate how they are performing against non-financial indicators.
While many are still focused on traditional business and, to a considerable extent, have stayed clear of tech, they will need to transform as tech continues to disrupt industries.
