Introduction: A regulatory gap at the heart of the Saudi economy
Recent data reveals that only 27% of family businesses in Saudi Arabia have clear and effective policies for integrating female owners into their management and supervisory structures. This figure, disclosed during the “Women in Family Businesses Council” meeting, highlights a significant regulatory gap in one of the most important sectors of the national economy, and comes at a time when the Kingdom is undergoing unprecedented economic and legislative transformations aimed at enhancing women’s empowerment as a key component of Vision 2030.
General context: Family businesses and Vision 2030
Family businesses are the backbone of the Saudi economy, contributing significantly to non-oil GDP and employing a large segment of the workforce. Historically, the management and succession of these businesses have been governed by traditional customs that may not always guarantee women's active participation, even with legal inheritance rights. With the launch of Vision 2030, which has set women's empowerment and increasing their participation in the labor market to 30% as key objectives, it has become essential for these companies to align their internal structures with the national vision to ensure their sustainability and growth.
The importance of the event and its expected impact
The council meeting, organized by the National Center for Family Businesses in partnership with the Tharaa Association, underscored that women's empowerment is no longer an option, but a strategic imperative. The study discussed revealed that the gap lies not in recognizing women's right to ownership, but in translating this right into an influential role in decision-making. The figures indicate that nearly half of these companies completely lack any regulatory framework for women's participation, leaving their role dependent on family connections and personal initiative rather than being an institutional right guaranteed by the family charter.
The absence of such policies not only affects the rights of female owners but also threatens the long-term stability of the companies themselves. Family disputes over management and inheritance are among the biggest threats to the continuity of family businesses, and clear and comprehensive governance policies that ensure the participation of all parties are the key safeguard for overcoming these challenges and guaranteeing a smooth and secure transition between generations.
Dimensions of women's empowerment and its impact on performance
The council participants emphasized that women's empowerment is not limited to executive positions, but takes many forms that align with their abilities and aspirations. While some female owners may choose to participate in day-to-day management, others may find their ideal role lies on boards of directors, where they can contribute to oversight and strategy development. The findings highlighted that women's presence in leadership positions enhances risk management efficiency, raises emotional intelligence in navigating complex family dynamics, and broadens strategic thinking to encompass new social and consumer dimensions.
In this context, Dr. Aaidh Al-Mubarak, CEO of the National Center for Family Businesses, stressed that empowering women begins with qualifying them as responsible owners, capable of understanding financial statements and participating in investment decisions, which is what the center is working to achieve through its various programs and initiatives.
A future perspective: From ownership to effective partnership
This statistic is alarming, but it also presents a genuine opportunity for development. Bridging this gap requires serious investment in training and the inclusion of clear policies for employing and involving family members (men and women) within binding family charters. This comes at a time when official figures from the Ministry of Commerce confirm that Saudi women have become key players in the economy, with women accounting for a significant percentage of new commercial registrations recently. This demonstrates that women's empowerment is not merely a social goal, but a fundamental driver of sustainable economic growth.
