Post by : Badri Ariffin

Family businesses are integral to the UAE’s economic landscape, contributing nearly 60% to the national GDP, generating over 80% of jobs, and comprising around 90% of private-sector enterprises. This underscores their essential role in realizing the ambitious 'We the UAE 2031' vision, which seeks to boost the GDP to AED 3 trillion.

Recently, the Ministry of Economy and Tourism held a dialogue with representatives from six prominent family firms to promote partnerships and maximize the potential of the country’s supportive legislative framework. The discussion emphasized how the UAE has developed a competitive structure to enable these businesses to flourish and sustain their legacy through generations.

A significant milestone in this initiative is the introduction of the world’s first Family Business Law — Federal Decree-Law No. 37 of 2022. This legislation is reinforced by four ministerial resolutions that create the Unified Family Business Register, a Family Charter framework, share buyback regulations, and guidelines for various share categories. The Unified Register is currently active, with 18 companies registered, providing services like registration, certificate issuance, and charter storage.

The dialogue also addressed challenges that family-owned businesses face, especially intergenerational conflicts that can hinder their progress. The legal framework established by Federal Decree-Law No. 37 of 2022 offers explicit methods to oversee ownership, governance, and generational transitions, securing stability and long-lasting success.

Moreover, the conversation opened up opportunities for family firms to expand into new sectors and increase investments, reaffirming their centrality in molding the UAE’s economic destiny. With robust regulations, structured frameworks, and a well-defined vision, the UAE is set to continue nurturing family-owned enterprises as a cornerstone of national prosperity.

#Global News #Share Market #UAE News