The UAE: Family Businesses Strengthen Their Growth and Contribution to the National Economy
The United Arab Emirates is steadily advancing in enhancing the role of family businesses, which directly contributes to their growth and increases their contribution to the national economy. Family businesses are a cornerstone of the economic structure, significantly supporting the sustainability and competitiveness of the economy at both regional and global levels. Through the development of legislation and a clear future vision, the government aims to ensure the continuity of these family entities and enhance their capabilities in facing various challenges.
Recent Legislation to Support Family Businesses
As part of its efforts to strengthen family businesses, the Ministry of Economy and Tourism introduced the world’s first law of its kind, Federal Decree No. 37 of 2022 concerning family businesses. This law aims to ensure the continuity of businesses through well-studied legal mechanisms, facilitating the transfer of ownership between generations and enhancing diversity in economic activities, including the new economy. This is a pivotal step that underscores the UAE’s commitment to providing a conducive environment for the growth of family businesses.
Unified Register for Family Businesses
The ministry has issued four ministerial decisions to establish a unified register for family businesses, which currently includes over 15 companies. This register offers multiple services, including company registration and the issuance of necessary certificates, contributing to the continuity of management and operational processes. The integrated process of registering companies enhances smooth and direct transitions while adhering to transparent and reliable practices.
International Collaboration and Local Innovations
As part of the “Developing Economic Policies in the Country” project, the Ministry of Economy and Tourism collaborated with the Organisation for Economic Co-operation and Development (OECD) to exchange global best practices, thereby strengthening the legislative framework for family businesses. In this context, His Excellency Abdullah bin Touq Al Mari, Minister of Economy and Tourism, emphasized that the UAE places family businesses at the heart of national economic growth strategies, believing in their vital role.
“Thabat” Program to Enhance Family Business Investments
The Ministry of Economy and Tourism launched the “Thabat” program to support family business investments and diversify their activities. The program has successfully provided its services to over 200 companies to date, reflecting its ability to offer training courses and advisory sessions. The program has already contributed to the launch of four startups in various technological fields, helping empower the new generation to achieve their ambitions in the new economy.
Family businesses represent an essential part of the economic fabric of the country, contributing 60% to the gross domestic product and employing 80% of the workforce. These businesses are spread across a wide range of vital sectors, making them a key driver of sustainable economic growth in the UAE and supporting the country’s future vision.