Future-proofing Middle East family businesses
Achieving sustainable growth during disruptive times
report the economic environment as their top challenge
plan to improve profitability
intend to step up their digital capabilities in the next two years
have a robust, formalised and communicated succession plan in place
There is a new norm in which Middle East family businesses need to operate. Market dynamics are changing and are calling for new business models, digitalisation is disrupting whole industries with new related skillsets being required, trust in institutions and technology is more important than ever, and millennials are changing the way companies do business. These changing times are reflected in the results of the 2019 PwC Middle East Family Business Survey. Our past editions showed that family businesses in the Middle East outpaced their global peers in revenue growth, however this year presented a slightly different picture: Growth over the last 12 months decreased compared to 2016.
Middle East family businesses have succeeded so far thanks to an entrepreneurial founding generation that forged powerful political and financial alliances. Despite tough times in the past, they have remained resilient. But the economic environment is more challenging than ever with narrowing profit margins and an unpromising global economic outlook. The days of double-digit growth are – at least for the foreseeable future – a thing of the past.
The message is clear: Middle East family business leaders cannot afford to remain idle.
Interpreting our survey’s results, we realise that family businesses need to address four distinct areas that can serve as pillars for growth, and look inward, long-term, forward and outward to ultimately unlock value:
Entrepreneurial & Private Business Leader, PwC Middle East
Tel: +971 4 304 3590