• MoU to focus on developing long-term strategic relationship between entities
Riyadh, Saudi Arabia, 2 November, 2022: The GCC Board Directors Institute (GCC BDI), a not-for-profit organisation that guides board directors of organisations in acquiring the know-how and tools to reach and sustain effective corporate governance, today announced the signing of a Memorandum of Understanding [MoU] with the National Center for Family Business [NCFB], an organisation committed to strengthening the role of family business in the Kingdom of Saudi Arabia and ensuring their sustainability.
The MoU focuses on the development of a long-term strategic relationship between GCC BDI and NCFB as well as strengthening their cooperation to explore collaborative opportunities and enhance standards of corporate and family governance in Saudi Arabia. The MoU also aims to reinforce the role of family businesses in furthering the Saudi economy and increase their contribution to KSA’s GDP and Vision 2030.
The MoU was signed in Riyadh on November 1 by Jane Valls, Executive Director of GCC BDI, and Dr Ayth Al Mubarak, Chief Executive Officer of NCFB during a Family Business Governance Forum being run by GCC BDI in collaboration with NCFB.
Commenting on the MoU, Jane Valls, Executive Director of GCC BDI, said: “At GCC BDI, we aim to create a positive impact on the economies and societies in the region through promoting professional directorship and raising the level of board effectiveness. Family Businesses are a key component of this mandate, and this is where our MoU with the National Center for Family Business in Saudi Arabia will help us enhance the standards of corporate and family governance in the Kingdom. By joining forces with NCFB, we seek not only to empower family businesses in the Kingdom but also to ensure their long-term competitiveness in the changing business landscape.”
In his comments, Dr Ayth Al Mubarak, Chief Executive Officer of NCFB, said: “Family businesses represent 63% of the private sector entities in Saudi Arabia, and account for 32% of the national gross domestic product (GDP). Family businesses are key to the growth of the country’s GDP, and this MoU with GCC BDI will go a long way in raising awareness about effective governance in line with Saudi Vision 2030. We aim to work collaboratively with GCC BDI to extend a wide array of programmes and certifications to empower family businesses in the Kingdom.”
The MoU stipulates close collaboration between GCC BDI and NCFB on raising awareness and providing professional development and education through workshops and forums, such as the GCC BDI Family Business Governance Workshop. This involves, among other aspects, running a Certification in Board Directorship for Family Businesses.
GCC BDI and NCFB will also work together on relevant research and case studies, as well as other topics of mutual interest, including partnering on forums and workshops.
Given the significance of family businesses on the national level, the NCFB was opened by a royal decree in 2014, directing the Ministry of Commerce to support and organise the center. The NCFB works towards its mission by providing services and the effective communication with family businesses, public agencies, advisory and management consultation firms, and the general community.
Over the past one-and-a-half decades, GCC BDI has grown to over 2600 members and has helped over 2,600 board directors across the Gulf region in developing their professional capabilities. Founded in 2007 as a not-for-profit entity, GCC BDI’s mission is to promote the highest professional standards of corporate governance and directorship through capacity building, advocacy, and sound governance practices.