Family-owned businesses play an important role in the Saudi Economy given their high contribution to the GDP, which was estimated to be around 25% in 2012. From the 25 largest family businesses in the GCC, Saudi Arabia is home to nine. FBs are mostly focused in industry (24%), services (11%) and banking (11%).
According to EY’s Family Business Yearbook (2014), “90% of companies in the Middle East are family-owned businesses” and account for 2% of the worlds largest 250 family-owned businesses. These companies generate nearly 80% of the region’s GDP, employ nearly 70% of the labor in the GCC and constitute nearly 75% of private sector economic activity.
Given the new governmental direction towards a private sector led economy and increased privatization, there figures are expected to rise in coming years. Additionally, the private sector (including family businesses) will face additional pressure and demand to operate at higher levels of efficiency and competitiveness, especially in the face of economic and labor market reform and increased foreign direct investment.
Amrop Saudi Arabia’s expertise in Executive Search across the active sectors includes advising family businesses in appointing senior executives across a broad spectrum of functions including C-level management, Sales, Marketing, Finance, IT and HR to name a few.
In addition, our Board Consulting Services allow Family Owned Businesses to restructure their boards and achieve improved governance by appointing independent directors and ensuring their board collectively contains the competences and experiences required to achieve goals and objectives.
Moreover, though our Leadership Assessments service, Amrop is able to advise family businesses by selecting the right leaders for tomorrow through a structured approach to succession planning. Leadership Assessments are also used for talent mapping, development planning and improved retention to name a few of its applications.
Our local expertise enables us to understand and appreciate a Saudi family-owned business’ unique needs and challenges. This understanding forms the basis of our context-driven approach, allowing us to integrate both the functional and cultural perspective when advising our clients.
As we are part of a global organization, we are able to combine this local expertise with our global knowledge and experience as needed. This includes sourcing talent from the international markets and conducting cross-border assignments with Subject Matter Experts from the Amrop partnership.