Family businesses across the Middle East are reporting stronger confidence in future growth than their counterparts worldwide, according to findings from the KPMG Middle East Family Business Report 2026.
The report, released on 27 October 2026, surveyed 135 senior family business leaders across the region as they weigh pressures spanning growth, talent, technology and succession. KPMG said the timing comes as the Arab region’s economy approaches around $4 trillion, with family businesses accounting for an estimated 60% of GCC GDP and representing a large share of private-sector wealth and employment.
Higher expectations for outperformance
KPMG reported that 84% of family businesses in the Middle East expect to outperform competitors over the next five to ten years, compared with 72% globally.
The report attributes that confidence to what it describes as strategic clarity. It said 85% of respondents reported having a defined growth strategy for the next five to ten years, while 80% said there is strong internal consensus among family members and leadership on how to grow the business.
Competitive advantages tied to brand and values
According to the KPMG findings, family reputation and brand equity were the most successfully leveraged assets among respondents, with 93% rating them as key value drivers. The report also said shared values and purpose were rated as major drivers by 89% of respondents.
It added that the region places a greater emphasis on long-term stewardship than the global average. KPMG said 81% of Middle East respondents would prioritise family unity even at the cost of lower returns, versus 66% globally.
Geographic expansion a top priority
For the decade ahead, geographic expansion emerged as the highest-impact growth driver. KPMG said 36% of respondents ranked expanding their geographic footprint as their single highest-impact growth driver through 2035, and more than half placed geographic expansion among their top two priorities.
On funding, the report said reinvestment of earnings and shareholder equity was identified by 55% of respondents as the preferred source of growth capital over the next two years.
Succession concerns rise with the long-term agenda
As leadership and governance issues move further up the agenda, business succession and next-generation readiness rose to become a key long-term concern. KPMG said 34% of respondents cited succession as their top challenge through 2035, up from 29% in the near term.
The report also said governance and strategic decision-making showed the sharpest climb between time horizons, rising from 19% in the short term to 27% in the long term, reflecting expectations that decision-making structures will become more demanding as companies grow and transition across generations.
AI adoption outpaces governance
KPMG also highlighted gaps between capability needs and current frameworks. It said 67% of family businesses are actively deploying AI, while only 25% have established formal governance frameworks to oversee it. AI adoption and governance were described as the top near-term challenge, cited by 37% of respondents.
On cybersecurity, the report said 56% of respondents continue to view it primarily as an IT responsibility rather than a board-level risk, and identified this as a governance gap that becomes more consequential as businesses scale and grow in complexity.
KPMG commentary
Abdullah Akbar, Partner and Head of Private Enterprise at KPMG Middle East, said that family-owned enterprises have driven regional economic growth for generations, and that long-term thinking, values and relationships are competitive strengths. He added that as these businesses expand into new markets and adopt new technologies, leadership continuity, governance and organisational capability become increasingly important for sustaining growth while remaining aligned with principles that have guided them.
