Family businesses in Saudi Arabia represent more than 60% of the private sector and are vital to the Kingdom’s Vision 2030 transformation. Yet as many founders near retirement, the lack of a clear succession plan and family business restructuring strategy threatens decades of growth. Without a defined ownership and governance framework, these enterprises risk internal disputes, asset fragmentation, and leadership uncertainty — challenges that can quietly erode even the most established Saudi family empires.
At Mavins Saudi Arabia, we’ve seen that proactive family business restructuring and succession planning are no longer optional — they’re essential for survival and growth in a rapidly changing regulatory and economic environment.
The Hidden Risk Behind Success
Many first-generation founders believe their businesses will naturally continue under their children’s leadership. In reality, without a formal structure, succession often leads to:
- Disputes among heirs over ownership and control
- Fragmented assets that lose strategic coherence
- Unclear leadership authority and decision-making rights
- Tax inefficiencies and legal exposure during inheritance transitions
- Loss of credibility with banks, regulators, and partners
A lack of structure can quietly undo decades of achievement within just a few years of succession.
The Modern Saudi Model: From Family-Owned to Professionally Governed
Under Vision 2030, Saudi Arabia encourages stronger corporate governance and family office models. Modern family enterprises are increasingly establishing:
- Holding Companies – Consolidating operating entities and assets under one umbrella to streamline control and reporting.
- Family Waqf or Trust Structures – Protecting assets from division while ensuring all heirs benefit fairly from profits.
- Shareholders’ Agreements & Family Constitutions – Defining voting rights, ownership rules, and dispute-resolution mechanisms.
- Professional Boards & Advisory Committees – Separating ownership from management while maintaining family influence.
These models align with Saudi legal frameworks and international best practices, ensuring continuity, compliance, and clarity.
How Mavins Helps Families Transition Smoothly
At Mavins Saudi Arabia, our multidisciplinary advisors — spanning governance, legal structuring, valuation, and finance — support families through each stage of transformation:
- Diagnostic Assessment – Mapping ownership, legal entities, and inter-family relationships to identify vulnerabilities.
- Strategic Restructuring – Designing holding or waqf-based frameworks that balance control, inheritance, and compliance.
- Succession Planning – Establishing transparent leadership succession and governance policies.
- Tax & Legal Optimization – Aligning with Saudi and international laws to minimize inheritance disputes and exposure.
- Ongoing Advisory – Supporting board formation, performance reviews, and family governance councils.
Every structure is customized to the family’s values, vision, and generational goals — not just legal compliance.
Preserving Legacy, Not Just Wealth
True succession is not about distributing assets — it’s about preserving legacy. It ensures that the next generation inherits a thriving institution, not just ownership certificates. Families that act early secure stability, harmony, and a shared sense of purpose.
Let’s Start the Conversation
If your family business is entering a generational transition, now is the time to act.
Mavins Saudi Arabia can help you design a structure that protects your name, safeguards your assets, and empowers your next generation of leaders.
Contact us at info@mavins-kw.com or visit www.mavins-kw.com to schedule a confidential consultation.