Family Business

Family Businesses dominate the Saudi Arabian market. At present, there are about 538,000 family businesses in the Kingdom, 63 percent of the total operating enterprises. They contribute $216 billion to the gross domestic product of Saudi Arabia, and employ about 7.2 million people, 52 percent of the total workforce. Family businesses are very common in Saudi Arabia since they center on better wealth management and preservation.

The  decision making in family businesses often rests on the family that owns the company and leads it over successive generations. One of the strengths of such companies is their fixed activities and the focus of their owners on managing its affairs. Many of the family members join the company at an early age, and from there, they quickly learn the mechanism of the work, their responsibilities, and how to manage the company and understand the nature of the market that it operates in. However, family businesses are not problem free, there are a lot of challenges that these businesses face, including but not limited to,  the overlap between ownership and business interests, which can threaten the company’s sustainability. 

At Mohammed Al-Muzayen Law firm, our legal services include advising and providing effective legal solutions to families engaged or would want to engage in a common business enterprise of all shapes and sizes, with their own unique circumstances and needs.

In this type of business, it is important to highlight professionalism in the management of a family business, especially during the times where the management of the business will be passed on by the founding generation to its successor.  At Mohammed Al-Muzayen Law firm, while we preserve the business side of your enterprise, we will also harmonize relationships among family members and avoid litigation arising from succession by providing tailor-fit and straightforward solutions to protect the interests of each family member.