Riyadh - Exclusive Sharikat Mubasher: Family businesses are the backbone of Saudi Arabia’s private sector, accounting for a significant share of small and medium enterprises (SMEs). The Saudi government actively supports these businesses through tailored financing programs and regulatory reforms, recognizing their vital role in job creation and economic resilience.
In an interview with Sharikat Mubasher, Karim Ghandour, Founder and CEO of Legacy Line, revealed that Saudi Arabia hosts around 645,000 family-owned SMEs.
Speaking on the sidelines of the World with Purpose KSA summit, Ghandour emphasized the critical challenge these businesses face in ensuring smooth intergenerational succession. He noted that 80-85% of family-run SMEs fail to survive into the second generation, forcing many to explore exit strategies to avoid continuity failures.
The CEO clarified that the total number of registered businesses in Saudi Arabia reached around 1.3 million, 650,000 of which are family-run businesses.
Ghandour identified the lack of a strategic vision during generational transitions as a key pitfall, often sparking intergenerational conflicts that jeopardize long-term sustainability.
He also underscored the significance of the World with Purpose KSA in highlighting the purpose of family-owned businesses and enhancing their sustainability.
Founded in 2004, Legacy Line acts as a comprehensive family office for regional family businesses by providing informed guidance to instate structures and strategies that will simplify the complexities of maintaining the success of any family business.
The World with Purpose KSA took place on 28 and 29 April and gathered the top 200 global family businesses with the leading family businesses of Saudi Arabia to foster partnerships and discuss the pivotal role of family enterprises in driving global prosperity and impactful change.
It showcased how family businesses can leverage their influence for significant social impact, harness technological advancements to drive innovation, and facilitate cross-border collaborations that open new growth avenues in support of Vision 2030.
