Summary: GCC and the wider mid-east has, perhaps, the highest concentration of cash-rich, diversified owner managed businesses (OMBs) on this side of the globe. Evolving from trading houses into diversified conglomerates, these businesses now face an unprecedented threat – change or perish. The reason for this has largely been a slow but steady change in local business regulations, imminent movement of the GCC economies into WTO, and fast movement of hot gulf money into other economies-a phenomenon that is forcing investors to reevaluate their options. OMBs face new realities that can fundamentally alter the way they function. The key reason for this situation is the inability of owners to distance them from day-to-day management of the business. Such micromanagement, coupled with closeted decision-making, and little or no emphasis on management / leadership development, is the main cause that stunts OMBs’ growth prospects.
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