Gulf States Strategy Advisors

The states of the Gulf Cooperation Council (GCC) have arguably the strongest fundamentals of any region in the world: they have strong, resilient economic growth, sustainable public finances and household balance sheets, current account surpluses, strong government revenues from hydrocarbons and bright prospects for future growth as those revenues are invested in projects aimed at surring economic diversification.

 

Whilst hydrocarbons are still important for the GCC economy, other sectors such as logistics, petrochemicals, professional services, tourism and others are playing an increasingly central role in supporting economic growth.

 

Family businesses account for about 80% of non-oil GDP within the Middle East region, while 95%-five per cent of all companies in the GCC are family owned. They are the backbone of the GCC economy. Currently,  over half of these businesses are transitioning from their second to their third generation, and many are unprepared for the succession. These businesses  represent an important factor of social stability, as well. Being the largest employer in the GCCs, they are also vital for government agencies, as they depend on fees and tax income. Preparing for the transition to new leadership is an opportunity to establish relationships with non-family business managers and professionalise their company and their Network.