Majed Garoub has played a pivotal role in shaping the governance landscape for family businesses in Saudi Arabia. As the backbone of the Saudi economy, family businesses are crucial to the Kingdom’s long-term growth and success. Garoub’s efforts have been instrumental in ensuring these businesses are equipped to thrive across generations, aligning with the Kingdom’s Vision 2030—an ambitious roadmap for economic diversification and sustainable development.
Through his innovative ideas and thought leadership, Garoub has emphasized the critical importance of governance in family-owned enterprises. Research consistently shows that many family businesses do not survive beyond the first or second generation, primarily due to the absence of governance structures that foster transparency, continuity, and strategic planning. Garoub has been a vocal advocate for the implementation of robust governance frameworks, which are key to unlocking the full potential of these businesses in line with Vision 2030’s objectives of economic resilience and growth.
Corporate governance, as Garoub champions, is more than just a set of policies and procedures; it is a transformative approach to ensuring business sustainability. Governance enables transparent communication between partners, boards of directors, and management, while also promoting effective risk management and long-term continuity. His pioneering work has laid the foundation for family businesses to flourish in a competitive and evolving market. One of his key contributions has been the promotion of family charters or constitutions—a vital step in defining clear relationships and decision-making processes among family members, ensuring the business’s integrity.
Garoub’s thought leadership has helped address common points of conflict in family businesses, including:
- Prioritizing business interests over personal or family interests.
- Avoiding automatic appointments for family members to company positions based solely on family ties.
- Ensuring family members are treated on par with other employees in terms of expectations and responsibilities.
- Maintaining transparency regarding salaries for family members working within the business.
- Senior leadership roles do not necessarily have to be filled by family members; the best-qualified candidates should lead.
Moreover, Garoub has tackled one of the most challenging aspects of family businesses—defining clear exit strategies. By promoting policies that guide the exit of family members from the business, Garoub has helped minimize conflicts that could otherwise undermine the company’s stability.
Majed Garoub’s contributions go beyond governance structures; his vision is deeply aligned with the broader goals of Vision 2030. By ensuring family businesses are governed by transparent, well-defined rules, and by fostering innovation and sustainability within these enterprises, he has positioned them as key players in Saudi Arabia’s economic transformation. His innovative ideas and dedication to building governance frameworks have not only strengthened family businesses but also supported the Kingdom’s long-term vision of a diversified, sustainable, and prosperous economy.
In addition to his efforts in family business governance, Garoub has taken significant strides in advancing legal and arbitration practices in the Gulf region. His leadership in initiating and organizing the 1st GCC Law and Arbitration Week, to be held from January 26th to 30th, 2025, at the GCC Commercial Arbitration Centre in Bahrain, is a testament to his commitment to promoting collaboration and legal excellence.
The event, organized in partnership with esteemed institutions such as Dar Al-Hekma University, the American University of Bahrain, the University of Bahrain, Gulf University, and the Arab Open University, will serve as a platform for knowledge exchange and dialogue on pressing issues in law and arbitration.
Garoub’s vision for the GCC Law and Arbitration Week aligns with his broader mission to elevate the region’s legal frameworks and promote the rule of law, critical components of Vision 2030. By spearheading this pioneering event, Garoub is helping to solidify the GCC’s position as a hub for commercial dispute resolution, while also contributing to the overall development of the legal landscape in the region.
In conclusion, Majed Garoub’s leadership in family business governance and his groundbreaking work in law and arbitration have been transformative for Saudi Arabia and the broader GCC region. His efforts are vital to the Kingdom’s journey toward realizing Vision 2030, empowering businesses, fostering legal innovation, and ensuring a future of sustained economic growth and success.
