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Bahrain’s family businesses are poised for significant expansion by embracing artificial intelligence (AI), digital transformation, and mergers and acquisitions (M&A), according to a new global report.
The findings from the ‘Global Family Business Report 2025,’ released by KPMG Private Enterprise and the STEP Project Global Consortium, highlight that the next generation of ambitious leaders in the GCC are set to give regional firms a “unique edge to expand beyond borders.”
The report, which studied 2,683 family businesses in 80 countries, underscores the critical need for these companies to adapt to an era of rapid technological advancement and global shifts.
“Family businesses across Bahrain and the wider GCC are at the heart of our economies, and their ability to adapt and grow across generations is vital to the region’s long-term prosperity,” said KPMG Enterprise, Middle East, South Asia, Caucasus and Central Asia head and partner Harish Gopinath.
He added that the ambition and innovation of young leaders will increase access to growth capital, enabling family businesses in Bahrain to strengthen their role as regional and global players.
Jeyapriya Partiban, partner and head of advisory, KPMG Bahrain, noted a growing commitment among local family enterprises to adopt governance, digital transformation, and sustainability while staying true to their core values.
“Leaders within these businesses are actively strengthening both Family and Corporate Governance frameworks to ensure that family dynamics and business performance are aligned and mutually reinforcing,” she said.
The global data shows that strong governance matters, with successful family businesses 10 per cent more likely to have a formal board structure, enhancing their sustainability.
KPMG Private Enterprise Family Business global leader Robyn Langsford stressed that modern growth is “not just about financial expansion but about resilience and adaptability.”
The study reveals that family firms are increasingly leveraging growth capital and M&A to expand and diversify. In the past three years, nearly 500 businesses engaged in M&A, with 60 per cent targetting other family-owned firms.
Private Equity is also playing a larger role, providing funding and expertise to aid in successful transitions and long-term growth.
The report outlines a number of key actions for family businesses to ensure success, pushing them beyond simple succession towards a meaningful transition of capital across generations. To achieve this, companies should first enhance governance by establishing formal board structures. They must also foster multi-generational engagement, ensuring multiple generations are involved in strategy, particularly since only 52pc of the next generation currently participate.
Further, it is vital to prioritise sustainability by embedding environmental, social, and governance (ESG) principles into business strategies. Finally, firms should look externally to leverage capital and M&A (mergers and acquisitions) to explore strategic acquisitions for expansion and innovation, and build ties with private equity firms to gain access to new funding and strategic insights.
avinash@gdnmedia.bh
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