Introduction
Saud Bin Majid, grandson of the founder of Al Saud Company, walked through the long corridor that leads to the main offices and stopped in front of the last door. Having knocked on the door two times without receiving a reply, he opened it cautiously. From the portrait above the mantel, he felt the gaze of Sheikh Saoud Bin Khalid Bin Khalid Al Qassimi, his grandfather and the founder of the firm. In the office, everything was just as it had been when his grandfather was alive. Saud looked over his shoulder, making sure that no one was observing him. Stepping in, he closed the door and dropped down onto the sofa. The time for the succession had arrived, and he was to take over management of the Al Saud Company. The die was cast, and events that could not be reversed were now in motion. Saud Bin Majid had long known he was expected to take over the family business and had worked hard, first at other firms and then within the Al Saud Company, to develop his own confidence and to earn the trust of the other family members.
Nevertheless, today, he reflected on the daunting task he had inherited. He asked, “How can a young man with a young man’s limited experience in business and even in life manage the future of a firm and a family? How can I integrate the interests of the first, second, and third generations into a new balance between my family and our family business? How can I introduce necessary changes while maintaining respect for the legacies of our founder and the second generation of managers? Will I make my future within this firm? Do I have a future outside it?”
The Al Saud Company is a family firm established in the late 1970s by Sheikh Saoud Bin Khalid Bin Khalid Al Qassimi in the Emirate of Sharjah in the newly established country of the United Arab Emirates (UAE). The new country enjoyed rapid development, and Saud Bin Majid took part in the boom by opening a firm that did business in the construction and real estate sectors. As the years passed, the company continued to grow, benefiting from the opportunities offered by the rapid growth of the UAE and the surrounding Gulf Cooperation Council (GCC) region.
In 2004, the family faced a crisis: Sheikh Saoud fell ill, and it was suddenly apparent that the issue of succession had not been adequately addressed, leaving the future of the firm uncertain. However, the family pulled together after Sheikh Saoud’s death, uniting around the firm. More than 10 years later, the Al Saud Company is again in a state of transition, now to the third generation of leadership. The transition period occurs amid the backdrop of significant changes in the family and in the business environment and will demand leadership if the continuity of the business is to be maintained while continuing to satisfy the growing number of shareholders.
Authors:
- Dr. Rodrigo Basco
- Tor Brodtkorb