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Family businesses remain one of the most powerful forces shaping economies across the Arab world. According to Forbes Middle East’s 2026 Top 100 Arab Family Businesses list, GCC-based companies accounted for 86 of the 100 entries, with Saudi Arabia and the UAE alone representing 63 firms. These businesses continue to preserve legacy while adapting through governance, innovation, and long-term strategic growth.
However, many now face a structural challenge: transitioning from founder-led models to more institutionalised structures capable of sustaining growth across generations.
Recent data underscores the scale of this transition. A 2025 Lombard Odier study found that only 18% of GCC family businesses have a comprehensive succession plan, even though 96% of senior leaders express confidence in their ability to take the company forward. Caliber Middle East research from 2024 revealed that close to 60% of family businesses in the region originated during the 1940s–1960s oil boom, yet only an estimated 10% have successfully reached the third generation. The same study highlighted that 50% of GCC family businesses argue about future direction, while more than 70% lack a formal process to resolve family disputes.
These conditions have elevated the importance of professionalisation as many enterprises move toward institutional ownership and governance models.
Private equity’s evolving role
I.M. Mamlouk & Co., a regulated private investment firm based in Abu Dhabi, deploys capital through private equity and special situations investments. The firm operates a GCC-focused platform purpose-built to institutionalise and scale mid-market businesses, pursuing direct investments in private companies with strong fundamentals and growth potential across the GCC and broader MENA region.
The firm’s approach aligns with broader shifts in how value is created in private markets. Moonfare’s June 2026 analysis noted that operational improvement has replaced leverage as the primary driver of private equity value creation, with revenue growth accounting for 71% of value in 2024 exits. KPMG data cited in the same report showed that 64% of private equity firms now rank margin growth as a top value driver amid elevated financing costs.
This evolution favours investors who can actively support operational transformation rather than relying solely on financial engineering — an area where mid-market family businesses in the GCC often require the most support.
Special situations and transitional opportunities
Beyond traditional growth capital, special situations investing is gaining relevance in the region. I.M. Mamlouk & Co. targets complex, event-driven, or transitional opportunities where disciplined capital can unlock value. These investments are particularly well-suited to family businesses navigating generational change, ownership restructuring, or operational challenges.
Fortune Business Insights estimates that the Middle East and Africa private equity market reached $157.81 billion in 2025, driven by economic diversification programs and investments in infrastructure, logistics, healthcare, and technology. Mid-market businesses, the backbone of non-oil GDP, stand to benefit significantly from this capital inflow, provided they can meet institutional standards of governance and performance.
Building institutional strength
As more GCC family businesses recognise the need to professionalise, investors with deep regional expertise and a long-term orientation are well positioned to support this transition. By focusing on operational value creation alongside capital deployment, firms can help portfolio companies strengthen governance, professionalise management, and build sustainable competitive advantages.
I.M. Mamlouk & Co. continues to emphasise this disciplined approach across both its private equity and special situations strategies. The firm was recently supported in its communications efforts by Narrative One, reinforcing its commitment to building a credible, institutional-grade platform for the GCC mid-market.
