Amman, Jan. 8 (Petra) – The General Controller of Companies, Wael Armouti, called for the establishment of effective governance practices to ensure the continuity and sustainability of family businesses.

During a panel discussion organized by the Companies Control Department in collaboration with the USAID Economic Reform Program, Armouti highlighted that family businesses constitute about 90% of enterprises in Jordan. However, they face unique challenges, particularly regarding succession planning.

According to a statement issued on Wednesday, participants from the public and private sectors discussed legislative options for governing family businesses to enhance their sustainability. This reality poses a significant challenge to the national economy in the long term and acts as a barrier for potential investors seeking partnerships with local companies due to the lack of clarity in organizational structures and role definitions within family businesses.

The USAID Economic Reform Program previously supported the Companies Control Department in reviewing the challenges facing family businesses, examining best practices from the region, evaluating the current legal framework, and conducting a comparative study of regional legislation on family business governance.

The program and the department also conducted interviews with prominent companies in Jordan to understand the challenges they face and the governance initiatives they have adopted over the years. These efforts highlighted the importance of separating management from family-related challenges, a practice that has significantly contributed to institutionalizing family businesses.

//Petra// AF
08/01/2025 23:10:59