About
A national body working for the sustainability of family businesses and their contribution to national development.
- 69%
- of family businesses are in Riyadh, Makkah and the Eastern Province
- +80%
- of the family-business workforce is in these regions
- 89%
- have fewer than 50 employees and revenue of up to SAR 40 million
About the Center
The Center was launched under Royal Order No. 49691 of 15 Dhu al-Qa'dah 1433 AH, directing the Ministry of Commerce, in coordination with the Council of Saudi Chambers, to reopen and support the Center. It pursues its mission by providing services and engaging effectively with family businesses, government bodies, advisors and society.
Our vision
Sustainable family businesses that contribute to national development.
Our mission
To build an integrated ecosystem that sustains family businesses and strengthens their contribution to national development, through effective engagement and services for all stakeholders.
Who we serve
Family businesses, government and the public sector, advisors and professionals, educational institutions, the local community and the international community.
What is a family business
The Center uses a definition in line with global best practice. A family business is a company in which at least 50% of the shares or voting shares belong to one or more members of the same family, whether founders, later shareholders, or relatives who inherited the ownership. For companies listed on the Saudi capital market, 25% of voting shares is enough. Sole proprietorships are included because ownership passes to the heirs. The definition is consistent with those used in the UAE, by the European Commission, the OECD, the World Bank, the Institute for Family Business in the UK, Germany, Austria and Australia.
Where family businesses are and how big they are
Most family businesses are concentrated in Riyadh (29.1%), Makkah (24.3%) and the Eastern Province (15.5%), which together hold 69% of them. The great majority are micro and small businesses: about 89% have fewer than 50 employees and revenue of up to SAR 40 million. Source: Ministry of Commerce data.
Main challenges facing family businesses
- A high share of sole proprietorships in the ownership structure
- Limited financial literacy and awareness of alternative finance, and high barriers to financing
- Difficulty attracting and retaining talent
- Low spending on research and development
- No clear understanding of formal governance frameworks and tools
- Little support in preparing governance documents such as the family charter
- No dedicated programs for family conflict and dispute resolution
- Limited awareness of HR and succession planning, and too little training to prepare for succession
- Limited inclusion and empowerment of women in family businesses
- A shortage of research, information and statistics on family businesses
- No clear investment opportunities and no database of potential investors
- An environment that does not favor wealth creation, and limited government representation
These challenges were identified in the current-state assessment, and they differ in how much each one weighs.
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