Middle East Family Businesses Project Strong Growth
New KPMG report highlights high confidence and strategic clarity among family-run enterprises in the region.
Updated on Oct. 27, 2026 in Business Strategy
Live Poll
Is reinvesting current earnings into your business a reliable way to ensure long-term growth?
The 2026 Middle East Family Business Report shows that 84 percent of surveyed leaders expect to outperform their competitors. These firms cite strategic clarity and strong internal consensus as the primary drivers of their future growth.
Why it matters
The confidence displayed by these firms is rooted in their defined growth strategies and emphasis on family values. As these businesses grow, their ability to navigate generational transitions and evolving decision-making structures will be critical.
KPMG surveyed 135 senior leaders across the region, finding that 67 percent of family businesses are actively deploying AI tools. However, only 25 percent of these organizations have established formal governance frameworks to manage the technology.
The players
KPMG
This global professional services network conducts regular research into corporate governance and family business trends.
The details
Family businesses remain a pillar of the Arab economy, representing 60 percent of GCC GDP. While these firms prioritize family reputation and shared values, 56 percent currently view cybersecurity as an IT-only responsibility rather than a strategic business priority.
Timeline
2026: Publication of the KPMG Middle East Family Business Report.
Next two years: Period for planned reinvestment of earnings and shareholder equity as growth capital.
Next five to ten years: Window for expected business performance outperformance.
To 2035: Timeline for business succession planning and geographic expansion.
Market Landscape
This report follows the trajectory established by the 2026 Middle East Family Business Report, which serves as a benchmark for regional economic health. The findings underscore a shift where family-led entities are increasingly positioning themselves to outpace global competitors.
Consumers and partners of these firms can expect increased investment and service innovation as these companies push to outperform market peers. However, the lack of formal AI governance could pose potential operational risks that may impact future service reliability.
The takeaway
Family businesses in the Middle East demonstrate significant resilience by prioritizing unity and reinvestment over short-term returns. Implementing formal governance for new technologies like AI will be essential for these firms to maintain their competitive advantage through 2035.
Further reading
Learn more about the latest industry trends in Business Strategy.
Source note: This article includes information reported by Economy Middle East.
Live Poll
Is reinvesting current earnings into your business a reliable way to ensure long-term growth?
