Family Businesses Contribute $216 Bn to Saudi GDP

  • Date: 02-Jan-2021
  • Source: Asharq AL-awsat
  • Sector:Economy
  • Country:Saudi Arabia
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Family Businesses Contribute $216 Bn to Saudi GDP

A total of 538 family enterprises, about 63 percent of operating establishments in Saudi Arabia, contribute to $216 billion of the national growth development product (GDP), according to a study by the Business Sector Observatory (Marsad) of the Riyadh Chamber.

The study discussed Saudi family businesses and their impact on the national economy, future trends, challenges they face and their relationship to Vision 2030.

It revealed that 92 percent of the family businesses are located in major areas of the country with 45 percent in Riyadh, 28 percent in Makkah and 18 percent in the Eastern Province.

Family businesses represent between 70 to 90 percent of the total number of companies around the world, it added, revealing that Saudi family businesses represent all classifications of companies, including joint companies, simple partnerships, joint-ventures, joint-stock companies and limited liability companies.

However, the largest percentage of Saudi family companies fall under limited liability companies, as they are more legally in line with the reality and composition of Saudi families.

The study provided a detailed analysis of the stages of development of family businesses, their percentage, size, geographical distribution and challenges.

It also reviewed how they