The Role of Endowments in the Sustainability of Family Businesses in the Kingdom of Saudi Arabia: A Field Study

This study aimed to identify the role of endowments (Waqf) in the sustainability of family businesses. It focused on family businesses with endowments in the Kingdom of Saudi Arabia, seeking to understand the challenges faced by these businesses, the role of endowments in ensuring the continuity of family companies, and the contribution of endowments to intergenerational succession. To achieve these objectives, the study employed a descriptive survey approach, utilizing both quantitative data through a questionnaire and qualitative data through semi-structured interviews. The research population consisted of all officials in family businesses with endowments in Saudi Arabia who are relevant to family work and endowments. The sample included a convenient selection of 51 officials who participated by completing a paper-based questionnaire. Additionally, eight experts in family endowments in Saudi Arabia participated in semi-structured interviews conducted face-to-face and via Zoom. The results indicated a variation in the engagement of different generations within family businesses with endowments, revealing that 61% of family businesses employ the second generation, while 35% employ the third generation and only 4% employ the fourth generation. The study also highlighted the main challenges faced by family businesses with endowments, including a lack of qualified personnel to manage the endowments, unclear strategic vision for the endowments, weak financial planning related to the endowments, balancing the interests of the company with the conditions set by the endowers, and the presence of family disputes that affect the utilization of the endowments.