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The State of Family Businesses in the GCC — Insights from Our Quarterly Magazine

PublishedAugust 10, 2025

Family businesses have long been the backbone of Gulf economies. From sprawling retail empires to diversified conglomerates in construction, real estate, logistics, and finance — these businesses are responsible for a significant portion of the region’s private sector GDP.

In this exclusive look from our latest quarterly magazine, we unpack the current state of family-owned enterprises across the GCC, explore the opportunities and challenges they face in 2025, and reveal how the next generation is shaping the future.

Family Business in Numbers: Still Dominating

According to recent studies:

60-80% of non-oil GDP in GCC countries is driven by family-run businesses.
In Saudi Arabia alone, family firms are estimated to control $250 billion in assets.
The UAE has over 100 active family businesses that are now expanding globally across hospitality, fintech, and energy.

This dominance isn’t fading — but it is evolving.

A Generational Shift is Underway

One of the most notable trends in 2025 is the transition of leadership to younger family members. These new leaders bring modern approaches, global education, and digital-first mindsets to legacy businesses.

What’s changing?

Younger heirs are diversifying portfolios into AI, biotech, and ESG-focused investments.
Corporate governance reforms are being implemented, including independent boards and succession planning.
Private equity partnerships are increasing, as families seek capital without going public.

This generational shift is seen as both a risk and opportunity, depending on how well succession is managed.

Key Challenges Facing Family Firms Today

Despite their deep roots, family businesses in the Gulf face several ongoing challenges:

1. Succession Planning & Leadership Conflicts

Many family businesses still lack formal succession plans, leading to leadership disputes and instability during transitions.

2. Regulatory Pressure & Economic Diversification

With governments pushing for economic transformation (Vision 2030, UAE Strategy 2031, etc.), family firms must adapt to digitalization, compliance, and tax reforms.

3. Talent Retention & Professionalization

There’s growing pressure to bring in non-family executives, especially in tech, finance, and operations. However, maintaining the family’s vision while opening up management remains a balancing act.

4. Transparency & Trust

As some family firms go public or partner with global investors, the need for clear governance, transparency, and risk management is greater than ever.

Leading the Way: Notable GCC Family Businesses in 2025

Here are just a few standout examples of Gulf family enterprises embracing innovation while holding onto legacy:

Al-Futtaim Group (UAE): Diversifying into mobility tech and retail AI.
Abdul Latif Jameel (KSA): Investing heavily in renewables and EV infrastructure.
Y.K. Almoayyed (Bahrain): Expanding through regional real estate and hospitality.
Oman’s Zubair Corporation: Now integrating ESG goals into its industrial arm.
Al Ghurair Group (UAE): Launching an education-focused fund run by the third generation.

These companies show that tradition and transformation can go hand in hand — when managed wisely.

Looking Ahead: What’s Next?

As the GCC continues to modernize its economies, family businesses will remain vital — but only those that embrace innovation, plan ahead, and adopt world-class governance will thrive long-term.

In our full magazine feature, we also cover: