Dubai: An estimated $1 trillion (Dh3.67 trillion) in assets will be transferred to the next generation of family-owned companies over the next decade in the Middle East. The smooth generational transition of businesses requires a clear set of laws according to Family Business Network (FBN GCC), a GCC focused non-profit organisation.
FBN on Monday issued a white paper on the legal structures available to available to family businesses in the GCC for succession planning and a set of new recommendations on the need to strengthen the legal framework in the GCC.
“We have realised that without a well-planned and resilient legal structure for a family business, the pursuit of continuity by focusing on good governance, professionalisation and next generation can be futile,” said Abdul Aziz Al Ghurair, Chairman of the Family Business Network GCC.
Given their importance of family businesses to GCC economies, FBN officials said there is growing realisation at the government level on the need for creating specific laws to assist family business generational transition.
“FBN GCC legal white paper presents an aggregate outlook at legal obstacles, risks and solutions for succession planning in the context of GCC family dynamics. This is the first time that a study takes a comprehensive approach across GCC countries, and across various legal vehicles,” said Fadi Hammadeh, General Counsel of Al Futtaim group.
