Family businesses stand at more than SR350bn

The Council of Saudi Chambers (CSC) has stated that the family owned-businesses contribution to GDP stood at 12.8 percent representing more than SR350 billion ($93 billion) volume of investments in this sector in the domestic market, citing a data released in 2012.
According to the statement made by CSC Secretary General, Khaled Al-Otaibi, these firms play a pivotal role in terms of its remarkable contribution to the country’s economy that has prompted the National Center for Family Enterprises (NCFE) at CSC in cooperation with the National Anti-Corruption Authority to organize a forum on the best practices in the fight against corruption in the family businesses, with the participation of local and international experts.
Al-Otaibi said the event, which will be held under the aegis of Mohammed Al-Sherif, head of the commission at the end of this month, has substantial importance in light of the economic role played by the those companies in the Saudi economy as shown by the results of an international survey conducted by the PWC, which is specializing in family firms. The survey shows that 80 percent of Middle East companies are owned by families or are under family managements, and that 5 to 8 percent of them show continuing success beyond the third generation.
The findings also said that these firms face many challenges in light of the economic changes in regionally and globally.
Talking on the forum agenda Al-Otaibi said: "The event will highlight the most prominent and leading successful applications both international and national experiences in the field of corporate governance and showcase its role in promoting the sustainability of the family businesses in the fight against corruption and bribery.”
Mohammed Al-Sulami, NCFE head, said: “The forum aims to demonstrate the importance of the governance system in the development of family businesses and support the stability and sustainability that would emphasize the role of control as a key factor in reducing corruption and raise the efficiency of these companies.”
He said that such event would strengthen transparency and cost reduction and profit growth thereby enhancing the sustainability of the family business and raise their competitiveness in the international markets.