The Pearl Initiative, a business-led non-profit organisation focused on promoting corporate accountability in the Gulf region’s private sector, recently collaborated with Al Tamimi and Company to hold a virtual session to unpack the New Companies Law in Saudi Arabia and its impact on family firms. The session convened family business leaders from across the kingdom to learn more about how the new Companies Law supports family-owned businesses' long-term sustainability and stability.
Led by Omar AlHumaid, senior counsel at Al Tamimi & Company, the session outlined the changes introduced by the new law that have implications for family firms. The new Companies Law allows for the introduction of a family charter in the articles of association to regulate ownership, governance, management, work policy, employment, and dividend distribution in family-owned companies.
Mohamed Al Moosa, of the Pearl Initiative said: "Family businesses in Saudi Arabia play a significant role in the economy and account for 63 per cent of businesses in the private sector. The new Companies Law provides a legal framework that enables robust governance which is essential for family businesses to operate effectively and sustainably."
The new Companies Law, which came into force last year, brings significant changes for family businesses in Saudi Arabia. The law applies to all business entities regardless of the number of shareholders or type of business. As a result, family firms have a legal framework to formalise their governance structures, establish boards of directors, adhere to corporate reporting and disclose standards to bring the country into line with international best practices. This new law marks a key milestone and a monumental shift in the ability of family firms to navigate issues of ownership, governance and succession through legal frameworks designed to enhance their sustainability, longevity, competitiveness, and agility.
The session is part of the Pearl Initiative's mission to enhance corporate governance, transparency, and accountability across the private sector in the Gulf region, with a dedicated programme focusing on family firms, contributing to the overall growth and prosperity of the region.
Bilwani's contributions are monumental with his collaborative approach to ethical practices and partnering to showcase potential around the world in copper export
Reviewing Dr Koduru’s extensive 18-year IT journey, it's clear that he seamlessly merges academic robustness with hands-on industry insights
Yadav's comedic prowess and versatile acting have endeared him to audiences both in India and beyond, making him a celebrated figure in the world of cinema
Car insurance companies like Carinsurance.ae have increasingly become more prominent and have come to the rescue of car enthusiasts, especially in the UAE
The tool employs cutting-edge machine learning algorithms, adeptly processing immense volumes of structured/unstructured financial data
The new move aims to export €200 million in two years to boost food security
The UAE offers plenty of business incentives and a robust real estate market for investment and personal use