Who Controls the Boardroom? International Study Highlights Corporate Governance Gaps in Arab Family Businesses

A new study on family business governance in the Middle East and North Africa (MENA) has revealed limited female representation on the boards of family-owned businesses in the region, alongside differences in board size, average tenure and directors’ recorded qualifications compared with family businesses outside the region.

The Family Business Governance in the Middle East and North Africa 2026 report found that women account for just 7.3% of board seats at family businesses in MENA, compared with 16% at family businesses outside the region. The average board size stands at 8.6 members in MENA, versus 11.3 members among their counterparts elsewhere.

These findings raise questions about the effectiveness of governance and oversight frameworks at family-owned businesses, as well as their ability to leverage diverse expertise and enhance decision-making. Business continuity and succession planning remain key challenges for family businesses, particularly as they seek to sustain operations and transfer leadership across generations.

Published in October 2026 by the Egyptian Association of Internal Auditors, in collaboration with Viselift Consulting, the report draws on a database of 51,970 company records spanning multiple years. The database covers 6,926 listed companies across 29 countries and 47 sectors.

The family business analysis compares 30 companies in the MENA region with 386 family businesses outside the region, as well as 196 non-family businesses within MENA. The study covers the period from 2002 to 2025.

Women hold 7.3% of board seats at family businesses in MENA, compared with 16% in the external comparison group, a gap of 8.7 percentage points, according to the report.

Female representation is among the indicators used to assess board composition, alongside board size, directors’ expertise and tenure. The disparity highlights the importance of broadening the pool of talent involved in corporate decision-making, allowing boards to benefit from a wider range of experience and perspectives.

The study also found that family businesses in MENA have an average of 8.6 board members, compared with 11.3 members at family businesses outside the region, a difference of 2.7 seats.

Average board tenure stands at 4.4 years for family businesses in MENA, compared with six years outside the region. Meanwhile, the average number of recorded qualifications per board member is 1.80, versus 2.09 in the external comparison group.

While these figures highlight differences in board characteristics, they are not sufficient on their own to determine governance quality or corporate performance. A comprehensive assessment of board effectiveness must also take into account directors’ independence, the depth and relevance of their expertise, the clarity of their responsibilities, and the strength of oversight over executive management.

Within MENA, non-executive directors account for 74.8% of board seats at family businesses, compared with 80.8% at non-family businesses, a difference of six percentage points.

This points to differences in board composition between family-owned and non-family businesses. However, the effectiveness of board oversight also depends on other factors, including director independence, clearly defined mandates, the effectiveness of board committees, and the strength of risk management and accountability frameworks.

Dr. Baher Abdel Aziz, investment and finance expert and partner at Viselift Consulting, said strengthening governance at family businesses requires a focus on board effectiveness and the expertise represented among its members, alongside clear mechanisms to separate ownership from management. Such measures, he said, can strengthen oversight of corporate performance and support business continuity.

He added that the challenge is not simply a matter of board size or the number of directors, but rather the board’s ability to make well-informed decisions, monitor risks, define responsibilities and draw on expertise aligned with the company’s needs and expansion plans.

Embedding sound governance practices can also help family businesses organize the transfer of responsibilities between generations, reduce reliance on individual decision-making and strengthen institutional management, supporting their long-term continuity and growth, he explained.

For his part, Dr. Hatem Ramadan, investment and finance expert and Head of Business Analytics Consulting at Viselift Consulting, said the report underscores the importance of treating corporate governance as an integral part of family businesses’ growth and sustainability strategies, rather than merely a set of regulatory procedures—particularly as operations expand and market conditions become more complex.

He added that an effective governance framework starts with clearly defining the roles and responsibilities of owners, the board of directors and executive management. It also requires measurable key performance indicators (KPIs) and regular mechanisms for reviewing decisions and assessing risks, helping improve resource allocation and support more informed investment decisions.

Greater diversity of expertise on boards, broader representation of qualified professionals, and stronger oversight and accountability mechanisms can enhance family businesses’ ability to navigate economic challenges and plan for expansion. These measures can also help establish a stronger institutional framework for transferring management responsibilities across generations, he noted.

The report concludes that family business governance cannot be assessed on the basis of a single indicator. Instead, it requires a comprehensive evaluation of interconnected factors, including board composition, diversity of expertise, directors’ tenure, the balance between executive and non-executive roles, and the effectiveness of oversight and accountability mechanisms.

These factors are particularly important for family businesses seeking to expand while ensuring business continuity across generations. Sustainable growth requires clear management structures, well-defined responsibilities and authority, and strategic decision-making backed by effective monitoring and evaluation mechanisms.