Mohamed Jasir, Naimat U. Khan and Yasser Barghathi
This paper aims to explore corporate governance (CG) and succession planning in family-owned businesses in the United Arab Emirates (UAE).
Abstract
Purpose
This paper aims to explore corporate governance (CG) and succession planning in family-owned businesses in the United Arab Emirates (UAE).
Design/methodology/approach
Semi-structured interviews are conducted with 16 owners and heirs of UAE family businesses. The interviews – face-to-face and asynchronous electronic – are conducted instead of a questionnaire to get an in-depth analysis of the topic in the context of both medium- and large-sized family businesses.
Findings
The responses are mixed with regard to governance challenges (duality, gender, internal control, transparency, etc.). The majority of the interviewees indicate that succession planning remains one of the biggest challenges for family businesses in the UAE. Fifteen of the sixteen interviewees document that a sound succession strategy must be in place to ensure the continuity of the business and prevent future disputes among potential successors. Similarly, the respondents also emphasise the importance of transparency and accountability for the sustainability of family businesses. The sustainability of family businesses relies on many aspects, such as national regulations, corporate systems and the succession process. Finally, most of the respondents from medium-sized companies opined that incorporating CG is a time-consuming and expensive process.
Practical implications
The interviewees supported stewardship theory in case family members are occupying positions on the board as they have more long-term commitment and a greater sense of belonging to the business (socio-emotional wealth) compared to non-family members. The interviewees acknowledge that the lack of professionalism and conflicts of interest among family members can be offset by recruiting non-family members.
Originality/value
Family businesses are particularly significant in the Arab world as they account for over 60% of gross domestic product (GDP) and use above 80% of the workforce which make them interesting research subject. In addition, this paper explores the CG challenges faced by both large- and medium-sized family businesses in the UAE within the theoretical framework of stewardship theory.
Details
Keywords
Tarek Ladjal and Tayeb Brahimi
The nature of the relationship between the Arabs and China in its historical and current dimensions raises the issue of compatibility and coexistence and the possibility of its…
Abstract
The nature of the relationship between the Arabs and China in its historical and current dimensions raises the issue of compatibility and coexistence and the possibility of its continuity among nations and cultures. During the fifteenth-century-period, in which Arab–Chinese relations developed, a model of coexistence and harmony between the two civilizations and cultures emerged, which is rare to find in the history of relations between societies and countries. In this chapter, the researchers attempt to return to history to discuss the forms of the development of peaceful relations between China and Arab societies, and the cultural and psychological motives that led to the normalization of political relations in a pattern of mutual respect and peaceful cooperation on many common issues, which still continue to affect positively the relations between China and the Arab world nowadays. The study found that the nature of the eastern mentality of both parties and the positive stereotypes that each side has about the other long time ago have contributed decisively to shaping these relations in the subsequent centuries.