Emirati Journal of Business, Economics, & Social Studies

Browse Journals

Articles

Vol. 4 No. 2 (2025): Emirati Journal of Business, Economics and Social Studies

Navigating ESG Challenges in GCC Family-Owned Businesses in the UAE and Saudi Arabia: A Qualitative study

  • Mohammed Al Omairi
Submitted
July 7, 2025
Published
2025-08-11

Abstract

Sustainable business plans currently include environmental, social, and governance (ESG) factors as essential elements. However, incorporating ESG principles is still a major obstacle in the Gulf Cooperation Council (GCC), especially for family-run businesses in Saudi Arabia and the United Arab Emirates. This research explores the ESG-related difficulties that these companies face whilst pinpointing the primary obstacles to successful ESG adoption. By employing a qualitative approach encompassing in-depth interviews from 15 participants, the study identifies major themes such as lack of transparency in governance structures, lack of ESG awareness and competence, underdeveloped legislative frameworks, and deeply ingrained sociocultural norms as impediments in embracing ESG. In order to promote ethical and sustainable corporate practices throughout the GCC, the results highlight the urgent need for context-specific ESG frameworks and more regional regulatory norm alignment.

References

  1. Al Naim, A. S., & Alomair, A. (2024). Board Composition and Environmental, Social, and Governance Reporting: Impact of Foreign and Busy Directors in Saudi-Listed Firms. Sustainability, 16(20), 8985. https://doi.org/10.3390/SU16208985
  2. Ali, M. Z., & Ali, S. M. (2018). Why Are Family-Owned Businesses Unable to Sustain Beyond the Second Generation. Global Management Journal for Academic & Corporate Studies, 8(2), 128–143.
  3. Aloulou, W. J., Algarni, E. A., Ramadani, V., & Hughes, M. (2023). Passionate to be a social entrepreneur in Saudi Arabia: A moderated mediation analysis of social entrepreneurial intention. Business Ethics, the Environment and Responsibility, 32(2), 698–712. https://doi.org/10.1111/BEER.12510
  4. Almeida, C. M., and Sousa, J. P. (2022) 'ESG performance and financial returns: Evidence from the Middle East', Journal of Sustainable Finance and Investment, 13(2), pp. 112–125.
  5. APCO Worldwide and GCC Board Directors Institute (2022) ESG in the GCC Region: Accelerating Integration. Available at: https://gccbdi.org/sites/default/files/2023-01/APCO-GCC-BDI-ESG_Report_2022.pdf (Accessed: 18 December 2024).
  6. Arayssi, M., & Jizi, M. (2024). Royal family board directors and the level of ESG disclosures in GCC listed firms. Journal of Accounting and Organizational Change, 20(1), 58–83. https://doi.org/10.1108/JAOC-08-2022-0123/FULL/PDF
  7. Bannerjee, S. S., Pillai, R., Tabash, M. I., & Al-Absy, M. S. M. (2025). Unveiling Inter-Market Reactions to Different Asset Classes/Commodities Pre- and Post-COVID-19: An Exploratory Qualitative Study. Economies 2025, Vol. 13, Page 66, 13(3), 66. https://doi.org/10.3390/ECONOMIES13030066
  8. Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/https://doi.org/10.1177/014920639101700108
  9. Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706QP063OA
  10. Bryman, A. (2004). Qualitative research on leadership: A critical but appreciative review. The Leadership Quarterly, 15(6), 729–769. https://doi.org/10.1016/j.leaqua.2004.09.007
  11. Cohen, B., & Winn, M. I. (2007). Market imperfections, opportunity and sustainable entrepreneurship. Journal of Business Venturing, 22(1), 29–49. https://ideas.repec.org/a/eee/jbvent/v22y2007i1p29-49.html
  12. Creswell, J.W. (2014) Research design: Qualitative, quantitative, and mixed methods approaches. 4th edn. Thousand Oaks, CA: Sage.
  13. Dean, T., & Mcmullen, J. S. (2007). Toward a theory of sustainable entrepreneurship: Reducing environmental degradation through SEE PROFILE. Article in Journal of Business Venturing. https://doi.org/10.1016/j.jbusvent.2005.09.003
  14. Dimaggio, P. J., & Powell, W. W. (1983). THE IRON CAGE REVISITED: INSTITUTIONAL ISOMORPHISM AND COLLECTIVE RATIONALITY IN ORGANIZATIONAL FIELDS. American Sociological Review, 48(2), 147–160. https://doi.org/10.2307/2095101
  15. Freeman, R. E. (1984). Strategic Managment: A Stakeholder Approach. Pitman.
  16. Hofstede, G. (1980). Culture and Organizations. International Studies of Management & Organization, 10(4), 15–41. https://doi.org/10.1080/00208825.1980.11656300
  17. In, S. Y., Rook, D., & Monk, A. (2019). Integrating Alternative Data (Also Known as ESG Data) in Investment Decision Making. Global Economic Review, 48(3), 237–260. https://doi.org/10.1080/1226508X.2019.1643059
  18. Nimer, K., Abughazaleh, N., Tahat, Y., & Hossain, M. (2025). Family Business, ESG, and Firm Age in the GCC Corporations: Building on the Socioemotional Wealth (SEW) Model. Journal of Risk and Financial Management 2025, Vol. 18, Page 241, 18(5), 241. https://doi.org/10.3390/JRFM18050241
  19. Ramadani, V., Aloulou, W. J., & Zainal, M. (Eds.). (2023b). Family Business in Gulf Cooperation Council Countries. https://doi.org/10.1007/978-3-031-17262-5
  20. Rowe, A. (2020). Environmental, Social and Governance (ESG) reporting – through the Chinese ‘lenses.’ Corporate Social Responsibility and Accounting. https://espace.curtin.edu.au/bitstream/20.500.11937/77671/2/EAA%202016RoweYu.docx
  21. SaudiVision2030. (2016). Strategic Objectives. Riyadh: Saudi Vision 2030. https://www.vision2030.gov.sa/
  22. Shleifer, A., & Vishny, R. W. (1997). A Survey of Corporate Governance. The Journal of Finance, 52(2), 737–783. https://doi.org/10.1111/J.1540-6261.1997.TB04820.X
  23. Strategic, H., Chu, J., Fang, J., Jiang, Y., Xin, B., Zhang, W., Zhang, W., Xiaocui Lou, C., & Kumar Shee, H. (2023). Strategic Entrepreneurship and Sustainable Supply Chain Innovation from the Perspective of Collaborative Advantage. Sustainability 2023, Vol. 15, Page 12879, 15(17), 12879. https://doi.org/10.3390/SU151712879
  24. Tawfik, O. I., Alsmady, A. A., Rahman, R. A., & Alsayegh, M. F. (2022). Corporate governance mechanisms, royal family ownership and corporate performance: evidence in gulf cooperation council (GCC) market. Heliyon, 8(12), e12389. https://doi.org/10.1016/J.HeliyON.2022.E12389
  25. Tracey, P., & Phillips, N. (2011). Entrepreneurship in emerging markets strategies for new venture creation in uncertain institutional contexts. Management International Review, 51(1), 23–39. https://doi.org/10.1007/S11575-010-0066-8/METRICS
  26. Zhu, N., Aryee, E. N. T., Agyemang, A. O., Wiredu, I., Zakari, A., & Agbadzidah, S. Y. (2024). Addressing environment, social and governance (ESG) investment in China: Does board composition and financing decision matter? Heliyon, 10(10), e30783. https://doi.org/10.1016/J.HELIYON.2024.E30783

Downloads

Download data is not yet available.

Similar Articles

1-10 of 32

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)

1 2 3 4 5 > >>