Family-owned companies play a pivotal role in the economic landscape of the UAE, contributing approximately 60% to the nation’s GDP. This remarkable statistic positions these businesses as essential drivers of employment, accounting for over 80% of job opportunities and making up nearly 90% of all private enterprises in the country. The importance of family businesses is underscored by the UAE’s vision for 2031, which aims to increase the GDP to 3 trillion dirhams. This was highlighted by the Ministry of Economy and Tourism during a recent open dialogue session that brought together representatives from six of the largest family businesses in the UAE.
Strengthening Communication and Collaboration
During the session organized by the Ministry, key representatives discussed ways to enhance direct communication with family businesses and enable them to navigate the evolving legislative and regulatory environment. Topics included the importance of facilitating the transfer of ownership and management between generations, as well as the administrative challenges that often arise between age groups. Notably, the Federal Law Decree No. (37) provides effective solutions for resolving disputes in a manner that helps ensure business stability.
Unified Register for Family Businesses
The UAE has made significant strides in developing a comprehensive and competitive legislative framework for this vital sector. According to Abdulaziz Al Nuaimi, Assistant Under-Secretary for Entrepreneurship and Economic Affairs, the introduction of the unique Federal Law Decree No. 37 of 2022 regarding family businesses marked a significant milestone. This legislation, along with four ministerial decisions, established the “Unified Register for Family Businesses,” organized a “Family Business Charter,” and set forth mechanisms for purchasing and issuing various ownership classes.
Al Nuaimi explained that the registration process for the Unified Register is now fully operational, housing 18 companies. This register offers vital services such as company registration, certificate issuance, and charter deposits. The legal frameworks provided by this law support the sustainability of family businesses, ensuring seamless governance and generational transition while encouraging expansion in emerging economic sectors.
Consultative Services for Sustainable Growth
In August, the Dubai Center for Family Businesses, operating under the Dubai Chambers, launched three specialized consulting services aimed at promoting long-term sustainability and growth for family-owned enterprises. These tailored services aim to enhance the comprehensive capabilities of all family businesses in Dubai, preparing them for the future and enabling them to navigate economic trends effectively while addressing challenges and capitalizing on promising opportunities.
This initiative aligns with the Dubai Center for Family Businesses’ commitment to bolstering the contribution of family businesses to the national economy, supporting the emirate’s future development plans. By enhancing the competitiveness of this vital segment of the economy, the center aims to safeguard their interests, regulate their activities, and invest in developing leadership skills to ensure their future sustainability.