Mubasher: Family-run businesses in the Gulf region remain highly resilient at the beginning of 2018, according to a recent report titled “GCC Family Business Survey 2017” by KPMG.

This positive outlook proves once again that this major segment of the economy will continue to boost the regional growth.

The report revealed that “despite the challenges brought about by low oil prices, family businesses across the GCC maintain the drive forward towards sustained economic growth.”

The report noted that more than a third of the interviewed companies showed that their income from their family businesses had increased in the previous 12 months, with 38% reported stable or improving year-on-year revenue.

KPMG’s report clarified that the picture for family businesses across the GCC seems relatively optimistic; it is reported that 33% of them registered a growth in revenue in the past 12 months, 38% managed to keep the revenue flat in the said period, while only 29% suffered a drop.

“In terms of their overseas investment, the past year witnessed 38% of them posting an increase in overseas activity, 10% decreased activity and 33% remained steady,” the report added.

The family business leaders who were interviewed across the Gulf area confirmed the strengths and key attributes of such businesses, with 57% of them having long-term strategic perspective, 59% asserted that they had fast and flexible decision-making processes, and 54% demonstrated shared values and character.

“As family businesses continue through the generations, it is essential that appropriate profit is generated to distribute to an increasing number of shareholders. Nearly half of respondents noted that increased competition was a major concern, and hence it is not surprising that 38 percent are planning to diversify into new products and services and 23 percent were looking to move into new markets,” the KPMG report noted.

More than 60% of respondents indicated that they have members of the next generation in management positions within the company, while 25% have recruitment in process.

About 30% of respondents said they are looking to become more creative and 38% plan to diversify into new products and services so they manage their family businesses.

“Family businesses in the GCC grow their business and pursue new opportunities by relying on increased profitability, revenue and diversification,” said Fuad Chapra, head of deal advisory and family business at KPMG in Saudi Arabia.