Introduction FamilyBusiness2FamilyBusiness
The fictional Al Mamnoon Group is a successful Kuwaiti family business that is run by the second generation after its founder, Mohammed Al Mamnoon, faced sudden health issues and had to retire. With his two sons Rashid and Khalid in charge the business continues to strive. So much so that the third generation is gradually joining the family business in various different ways. This transition is challenging for the family and results in a few difficulties between Rashid and Khalid. Find out what advice Arab family business leaders give to the Al Mamnoon Group through this issue’s Tharawat magazine case study survey.
The Al Mamnoon Family and the Third Generation Challenge
T
he Al Mamnoon group was established in
Over the years, Mohammed and his two sons worked very
1967 in Kuwait by Mohammed Al Mamnoon.
hard to build a strong and diversified group of companies.
With great commitment and hard work
In the 90ies the Al Mamnoon group established activities in
Mohammed grew his small trading business
agriculture, finance and real estate, as well as a successful
into a diversified business group in few years.
cement factory.
Mohammed’s first son Rashid chose to pursue his engineering
In the 2000s however, Mohammed faced sudden health
studies in Egypt. While in Cairo, he got married to Mona
problems. He trusted Rashid’s expertise and sense of business
Al Masri, whose family owned and operated a large cotton
and put him in charge of the day-to-day business activities. As
plantation in Egypt and they had three children together
the two brothers got on well, they decided to start a holding
after they moved back to Kuwait: Ahmed, Marwa and Tarek.
structure, Al Mamnoon Investments, to ensure that the family’s ownership remained clearly structured. Both Rashid and
Khalid, Mohamed’s second son, had always been passionate
Khalid would own 30% each while Mohammed kept 40%, and
about the fine food and service industry and wanted to
remained the non-executive Chairman. The brothers arranged
establish the Al Mamnoon Group as a leader in five-star
the management of the companies amongst themselves.
hospitality. However, his father was reluctant to start a
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business so different from the core activities of the company
In the meantime, two of Rashid’s three children, Ahmed
in trade and manufacturing.
and Marwa, finished their studies and decided to go and
Tharawat magazine Volume 15
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