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Sunday, 5 July 2009

Saudi family businesses sink under debt

Parmalat, Saad Group and Al Gosaibi have one thing in common: they are private companies that grew big and then faced serious problems with creditors through one mishap or another.

Italy’s Parmalat was founded by Calisto Tanzi as a milk conglomerate based in Milan. Mr Tanzi aspired to make Parmalat the Coca-Cola of the milk world. He introduced long-life milk products and the famous Tetrapak carton for dairy products.

Saad, owned by the al Sanei family, grew from a local Saudi real estate company to a multinational diversified group in finance and international investments, while Al Gosaibi diversified from its core beverage and trading business into finance and construction.

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