IslamicFinance.de

The history of family-owned businesses in the Gulf countries spans more than 100 years during which time the required entrepreneurial and managerial experiences have been passed on from one generation to another. These families contributed to the development of sectors such as trade, banking and construction, and resulting in the collection of taxes that helped stabilise financial conditions and support state budgets in the pre-oil era.
When oil revenues started flowing in, the Gulf nations encouraged family businesses to expand into many areas. They even contributed to the emergence of new business groups through the awarding of contracts to implement projects, especially infrastructure-related ones vital for development needs.
This approach contributed to a qualitative development of these companies, some of whom went on to enter partnerships with global players and gained in administrative and technical expertise to implement large projects and enter overseas markets.
However, most of the family businesses maintained a conservative management style, despite the enormous economic expansion in the Gulf which required a more modern management style characterised by flexibility and innovation.