Arab Family Business Needs Change

ABU DHABI, 27 May 2008 — Family-owned Arab businesses need to raise their standards of governance and structure to international levels to avoid losing ground as competition intensifies, accountancy firm Ernst & Young said.

“Governance, organizational structure and related components need to be updated, and there are serious gaps in terms of succession plans and transition,” Rami Nazer, a partner for business management advisory at Ernst & Young in Middle East said.

“The operating environment of businesses in the Gulf and Middle East is changing, so family businesses must embrace change ... a radical change and approach is needed,” he said at conference in Abu Dhabi.

Ernst & Young surveyed family owned companies in Saudi Arabia, Kuwait, Qatar, Oman, Jordan and Lebanon.