Regional stock markets are far too small to serve the needs of capital markets, according to Al Zayani Investments chairman Hamid Rashid Al Zayani.

European capital markets are effectively covered by one trading system with Euronext while the GCC is in the ridiculous position of having six separate stock markets, he said.

Speaking on the sidelines of the Family Business Retreat Conference, he said that for the region's capital markets to move forward they need to be much bigger than they are at present.

'What we need is one bourse for the whole region,' he said.

'Consolidation is a must. We need one governing body but in this electronic age we do not even really need a trading floor. Keeping small bourses will continue to restrict the growth of capital markets,' he added.

He said that public companies could complement family businesses in seeing growth in the region though family businesses were likely to be the dominant force for some time.

'The key to developing family business is to be organised and my business is perhaps unique in having organised a succession structure which sees the leaders stand down at the age of 65,' he said.

'This allows the next generation to know when they will come into control and also allows those who stand down to enjoy their wealth while they still have their stamina rather than when they have lost their health.

'It also allows the next generation to know where they are on the ladder,' he added.

He said his business believed family members should work as employees for three years before joining the board.

'You have to take family members into the leadership and give them strategic positions because you cannot keep them just as employees. You can't really sack your own son, can you?'

He said that another key pillar of his business was Zakat and that the business made contributions to the community of 2.5 per cent a year.

'A business is not just about creating wealth, it is also about making a contribution to the community. It is the job of businesses to have social responsibility and the wealthy should help the needy,' he added.-TradeArabia News Service