[2008-05-20]  Qasimis most influential family on ADX-listed Discuss firms' boards
Qasimis are the most influential family on the boards of the companies listed in Abu Dhabi Securities Exchange (ADX), while in the financial capital Dubai, Ghurair family with 6.2 per cent seats emerged second-most powerful among the firms listed on Dubai Financial Market (DFM).

A study Power Matters: A survey of GCC boards jointly published by Hawkamah, the Institute for Corporate Governance and the capital-based The National Investors, an investment bank, has looked into different aspects of the board of directors and the influence their members yield on the economy, as well as trends observed on corporate leadership and ownership.

Family power: The study has brought a revised version of the family power ranking — a GCC classification of the ten most influential families by market, as measured by the number of board seats they own and weighted by their share of the local market capitalisation.

It shows that prominent families usually associated with the leadership of a country or emirate are often underrepresented on the boards of public companies, except in Qatar. Between one-quarter and three-quarters of all listed companies have at least two members from the same family.

Top ten famlies on ADX: In terms of number of board seats held by one family as a per cent of total board seats of listed companies Qasimis have 7.9 per cent of the total board seats. Dhaheris have 4.4 per cent, Mazroueis 3.3 per cent, Qubaisis 2.9 per cent, Suwaidis 2.5 per cent, Khouris 2.3 per cent, Rumaithis 2.1 per cent, Muhairis and Shamsis have each 1.9 per cent seats,

while Hosnis have 1.7 per cent seats. In terms of values represent the proportion of total market cap held by a family, Suwaidis have a clear lead on Qasimis representing 7.2 per cent of the market cap.

Dhaheris with 7.1 per cent came second followed by Hajeris 3.9 per cent. Others in the ranking are: Qasimis 3.7 per cent, Nahyans 3per cent, Otaibas 2.8 per cent, Mazrouies 2.8 per cent, Omrans and Rostamanis each have 2.7 per cent, while Sayeghs represent 2.6 per cent of the total market cap.

Top ten on DFM: In terms of board seats held by one family as a per cent of total board seats of listed companies on DFM

Ghurairs with 6.2 per cent have emerged as leaders, followed by Mullas 3.9 per cent, Futtaims and Saris each hold 2.3 per cent.

The fourth ranking has been jointly shared by six families — Jallafs, Kazim, Lootahs, Mazrouies, Shamsis and Maktoums, who each have 1.9 per cent seat on the boards.

The study said that directors are understood to be the most powerful and influential individuals in a company hierarchy. In the context of the Gulf region, where the family has been at the core of political and economic influence, families with most board

representation can be thought of as controlling the economy. "We define the family in the broadest sense of the term, as being formed by the body of all individuals bearing the same surname," said the report.

The study conducted its "power concentration" analysis by mapping family board presence across all GCC countries — counting 4,254 individual board members and clustering them by family.

The study concleded that power concentration is very high in the GCC. This may seem to be in contradiction with its earlier conclusion about the reasonable cross board memberships.



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