Succession Continues

Family businesses have been the lifeblood of Middle East economies for decades, ever since the Arab world first began forming its metropolises in the desert. But today, many of these have evolved well beyond what those early founders could have imagined, handed down through generations, diversified across multiple sectors, expanded across continents, and listed on regional stock exchanges. In the U.A.E. alone, family-owned businesses reportedly account for 60% of the GDP and 80% of the workforce, according to a 2022 report by KPMG.

But will they continue to grow? And will new generations continue to be the ones taking the businesses into the next era? PwC’s 2023 family business report forecasts positive results as long as they continue to build and capitalize on consumer trust. According to the report, 65% of the family businesses surveyed in the Middle East reported growth in their most recent financial year, indicating a recovery from the pandemic slump, and 74% believe they will grow further in the next two years. But trust is paramount, and while family businesses are traditionally trusted more by consumers, as the consumer demographic changes and Gen-Z release their spending power, issues such as ESG, diversity, and sustainability are coming to the forefront. In short, a brand’s reputation for good behavior can make or break its future.

Changing demographics will also determine whether a family business remains a family affair. According to a 2019 survey from Deloitte, more than 70% of family businesses fail before reaching the third generation. This shows a natural evolution. The founder establishes the nascent business and commits to building their vision, the second generation is born into a growing enterprise and is inspired to take it further, but the third generation is born into a wealthy legacy and seeks their own success. However, handing the batten to one or more of your children is not the only way to grow.

Going public and taking a step back can also secure a prosperous future. 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, with most being the founding shareholders. While family members remain on the boards, the management and operations can be entrusted to senior executives, allowing new generations to follow their own path while keeping a foot in the door of their birthright legacies. The path of succession can deviate for those families willing to broaden company ownership.

This month we speak to second and third-generation leaders, as well as one that is safeguarding a listed business on behalf of its family founders. Rita Maria Zniber, Chairman and CEO of Moroccan agribusiness group Diana Holding, is leading the business first established by her late husband, side-byside with their daughter, Diana. Hassan Allam and Amr Allam, the Co-CEOs of Egyptian construction company Hassam Allam Holding, are continuing their grandfather’s vision, heading a family business that has been growing for nearly 90 years. And Tarek Hosni, CEO of Saudi pharmaceuticals giant Jamjoom Pharma, has just led the Jamjoon family’s thriving business through an IPO, the largest on Tadawul this year so far.

I hope you enjoy the issue.

—Claudine Coletti, Managing Editor

Innovating Since 2010

AUGUST 2023 ISSUE 131

Dr. Nasser Bin Aqeel Al Tayyar President & Publisher nasser@forbesmiddleeast.com

Khuloud Al Omian

Editor-in-Chief Forbes Middle East, CEO - Arab Publisher House khuloud@forbesmiddleeast.com

Editorial

Claudine Coletti Managing Editor claudine@forbesmiddleeast.com

Laurice Constantine Digital Managing Editor laurice@forbesmiddleeast.com

Fouzia Azzab Deputy Managing Editor fouzia@forbesmiddleeast.com

Amany Zaher Senior Quality Editor amany@forbesmiddleeast.com

Jamila Gandhi Senior Editor jamila@forbesmiddleeast.com

Rawan Hassan Senior Translator rawan@forbesmiddleeast.com

Samar Khouri Reporter samar@forbesmiddleeast.com

Cherry Aisne Trinidad Senior Online Editor aisne@forbesmiddleeast.com

Research

Jason Lasrado Head of Research jason@forbesmiddleeast.com

Nermeen Abbas Senior Researcher nermeen@forbesmiddleeast.com

Elena Hayek Researcher elena@forbesmiddleeast.com

Layan Abo Shkier Research Reporter layan@forbesmiddleeast.com

Business Development

Ruth Pulkury Senior Vice President - Business Development ruth@forbesmiddleeast.com

Fiona Pereira fiona@forbesmiddleeast.com

Karl Noujaim karl@forbesmiddleeast.com

Sarine Nemchehirlian sarine@forbesmiddleeast.com

Sarah Gadallah Hassan sarah.g@forbesmiddleeast.com

Upeksha Udayangani Client Relations Executive upeksha@forbesmiddleeast.com

Tayyab Riaz Mohammed Financial Controller riaz@forbesmiddleeast.com

Soumer Al Daas Head of Creative soumer@forbesmiddleeast.com

Julie Gemini Marquez Brand & Creative Content Executive julie@forbesmiddleeast.com

Mohammed Ashkar IT Manager ashkar@forbesmiddleeast.com

Muhammad Saim Aziz Web Developer saim@forbesmiddleeast.com

Habibullah Qadir Senior Operations Manager habib@forbesmiddleeast.com

FORBES US

Chairman and Editor-In-Chief Steve Forbes CEO and President Michael Federle

Copyright© 2019 Arab Publisher House

Copyright @ 2019 Forbes IP (HK) Limited. All rights reserved. This title is protected through a trademark registered with the US Patent & Trademark Office Forbes Middle East is published by Arab Publisher House under a license agreement with Forbes IP (HK) Limited. 499 Washington Blvd, 10th floor, Jersey City, NJ, 07310 Founded in 1917

B.C. Forbes, Editor-in-Chief (1917-54); Malcolm S. Forbes, Editor-in-Chief (1954-90); James W. Michaels, Editor (1961-99) William Baldwin, Editor (1999-2010)

ABU Dhabi Office Office 216, Podium 2, Yas Creative Hub, Yas Island, Abu Dhabi, U.A.E. - P.O. Box 502105, info@forbesmiddleeast.com Dubai Office Office 309, Building 4, Emaar Business Park, Dubai, U.A.E. - P.O. Box 502105, Tel: +9714 3995559, Qatar 14-DD2, Commercial Bank Plaza, West Bay, Doha, Qatar readers@forbesmiddleeast.com subscription@forbesmiddleeast.com

Queries: editorial@forbesmiddleeast.com For Production Queries: production@forbesmiddleeast.com

Check our Sustainability Policy

Abdullah AlHaithami Advocate & Legal Consultants

P.O.Box 95561 Dubai • UAE Tel: +971 4 886 8535

Forbes Middle East is legally represented by www.intlawfirm.com