95% of Establishments in Saudi Arabia are Family-Owned, Contributing 66% to Private Sector GDP: NCFB

The Medina Chamber, in collaboration with the National Center for Family Business (NCFB), organized a workshop titled “Institutional Transformation of Family Business: The Role of the Family Charter.” Family businesses represent approximately 95% of establishments in the Kingdom of Saudi Arabia, contributing 66% to the private sector’s gross domestic product and employing 56% of private sector workers and 48% of the total workforce in the Kingdom.

Dr. Ayth bin Ibrahim Al-Mubarak, CEO of the National Center for Family Business, led the workshop, emphasizing the importance of institutional transformation for family enterprises. He discussed the motivations for transformation, practical steps for implementation, desired governance practices, and the role of family enterprises in enhancing economic and social development through increased competitiveness and GDP contribution. Dr. Al-Mubarak also highlighted the necessity of family and national transformation processes, the significance of family charters for dispute resolution, and the importance of training and development.

The Center’s program aims to educate family business owners about drafting family charters by reviewing common practices within the Kingdom. This initiative will help owners fulfill their roles effectively and responsibly, proposing and discussing best practices in an interactive setting with family business specialists.

The Muhammad Ibrahim Al-Subaie and Sons Charitable Foundation supports the “Ghoroos” program, part of an initiative to find alternative methods for resolving family business disputes.

In 2023, the Center’s database registered over 23,000 subscribers from family establishments, according to NCFB statistics.