Governance in Family Firms - Pearl Initiative

Governance in Family Firms Programme

Family-owned businesses, comprising 90% of the Gulf’s private sector, are vital for economic growth and job creation. However, only 14% remain profitable by the third generation, underscoring the need for effective succession planning amid imminent wealth transfers.

Launched in 2012, the Pearl Initiative’s Governance in Family Firms programme addresses governance challenges, trends, and best practices for Gulf family firms. It promotes a culture of institutionalised governance, fostering transparency, balanced family involvement, and shareholder trust to ensure sustainability and economic impact through tailored programmatic activities.

Programme Objectives

By embedding and institutionalising corporate governance best practices for business continuity and resilience, the programme aims to foster a culture of high-level governance and drive behavioural change within family firms. The programme creates value for family firms across the region through programmatic activities, to allow them to adapt best practices of corporate governance, in the context of family businesses and family dynamics. The programme has the following objectives:

Raise awareness and understanding of governance issues, trends, and existing practices amongst GCC family firms.
Publish research to highlight key trends, challenges and practices impacting governance within family firms.
Establish a hub for NextGen family business leaders, in a community of family firms to facilitate the exchange of experiences, practical learnings, and best practices.
Support family firms on international standards and implementation of effective corporate governance practices through facilitated convenings, training and provision of practical tools and frameworks.

For further information and partnership opportunities, please contact us at [email protected].

Programme Achievements

Launched in 2012, the Pearl Initiative’s Governance in Family Firms programme promotes governance to enhance transparency, sustainability, and access to capital and talent.

Phase one delivered the Good Governance in Family Firms report with Tharawat Family Business Forum and Family Business Ecosystem in the UAE with the Sheikh Saoud Bin Khalid Bin Khalid Al Qassimi Chair, alongside webinars, roundtables, and a thought leadership publication. A 3-day Executive Education programme was held with Cambridge Judge Business School. Over 600 leaders engaged through 24 events, gaining governance tools.

With Jersey Finance, Alfaisal Corporate Governance Center, and Saudi Arabia’s NCFB, the programme launched Charting the Future, focusing on next-generation preparedness. Phase two equips emerging leaders with workshops to address evolving governance needs in a dynamic socio-economic landscape.

“It is often too easy to forget that shareholders and board members have separate functions in businesses. Family businesses have an opportunity to bring in diversity through better leveraging the board structure. Involving younger generations of the family can also shape family business governance and boardroom dynamics for the better.”

Noura Alturki

Vice President, Nesma

“With a GDP contribution of 60% and workforce contribution of 80% in the Middle East, there results a critical need for institutionalising the family office as it plays a particularly significant role in sustaining the Gulf region’s economy. The Pearl Initiative empowers the next generation to take over the family business without posing any risks to its survival but rather creating opportunities for growth.”