Addressing a press conference, the Argentine author, who is senior adviser at Egon Zehnder International (EZI), one of the largest privately held executive search firms worldwide, outlined the critical importance of succession planning and the need to recognize and develop the leadership talents of Saudi and other Gulf nationals to ensure the region's future economic success and sustainability.

"When you make the wrong people-decisions, the results can be incredibly damaging, leading to the loss of jobs, a fall in revenue or share prices, and -- potentially even more damaging -- a decline in trust among business leaders and consumers," said Fernandez-Araoz, who is author of the business book bestseller "Great People Decisions."

"All of these can have extremely negative consequences for investment and growth," he said. "If more businesses in the Kingdom are to develop into globally recognized and trusted brands it is essential that the people leading those companies have the skills that their role demands, and that they in turn are supported by management teams with talent matched to their responsibilities."

Benoit Duthu, EZI's head for Middle East, said: "Creating local leaders is an important part of that process. With such a large number of successful family or government holdings in the region, which are increasingly looking toward international presence or public company status, ensuring that the right team and structures are in place to sustain that company's success in the long term has never been more important."