Family businesses, which constitute 75 per cent of the private sector, are a key force for economic recovery and will need better governance and leaner organisations to deal with an uncertain future.

The Family Business Retreat conference is being held in Bahrain from January 24 to 27, under the patronage of Industry and Commerce Minister Dr Hassan Fakhro at the Ritz-Carlton Bahrain Hotel and Spa.

'We are happy that Institute for International Research (IIR) Middle East has chosen Bahrain to host the Family Business Retreat,' said Dr Fakhro.

'Family businesses play a vital role in the growing economies of Bahrain and across the region.

'I hope this event will provide a platform for all family business leaders to share ideas and address relevant issues,' he added.

Addressing the growth of family business in the region, spanning several market segments, he is of the opinion that family businesses in the Middle East are faced with three main challenges, which, if navigated properly, will help pull them out of their financial woes.

'The recent economic downturn has exposed family businesses to strategic and operational challenges,' said Abdulla Al Masaood & Sons chief executive officer Constantin Salameh.

Abdulla Al Masaood & Sons is a diversified private holding with interests in more than 40 business units.

'Family business leaders need to gear themselves for a very competitive business environment, especially, from other family businesses and multinational conglomerates coming from the Far East and Europe,' he added.

The challenges, according to Salameh, are risk management, portfolio rationalisation and corporate governance.

'Management investment risk requires prudent decision-making clarity and ensures that companies diversify their investments across different verticals, industries and geographies,' he said.

'Portfolio rationalisation, on the other hand, ensures companies focus on their competencies, thereby attaining leadership positions and taking strategic business decisions.

'And, corporate governance allows family businesses to have the right financial and business control foundation ensuring continuous value creation,' he said.

'With the old guard starting to hand over the reins to a more dynamic, risk-friendly younger leaders, the strength, diversification and legacy of the past will play a vital role in keeping the boat steady,' he added.

The meeting will have a number of eminent speakers including Bahrain Family Business Association chairman Khalid Kanoo, who will chair the conference.-TradeArabia News Service