Post by : Bianca
Haleem
At the foundation of the UAE's economic landscape, family-owned businesses account for nearly 60% of the nation's GDP, generate over 80% of jobs, and comprise almost 90% of private-sector entities. These stats emphasize the essential function of family enterprises in realizing the UAE's ambitious 'We the UAE 2031' initiative, which seeks to elevate the national GDP to AED 3 trillion.
Recently, the Ministry of Economy and Tourism convened a dialogue with leaders from six prominent family businesses, aiming to enhance collaboration and utilize the nation's progressive regulatory landscape. This conversation highlighted the UAE's efforts to forge a competitive framework that fosters long-term sustainability for these companies across generations.
A significant milestone in this evolution is the world’s pioneering Family Business Law—Federal Decree-Law No. 37 of 2022. Alongside this, four ministerial resolutions were introduced to create the Unified Family Business Register, establish the Family Charter framework, and outline share buyback systems and various share categories. The Unified Register is presently operational with 18 companies registered, providing key services such as registration, certificate issuance, and charter deposits.
Additionally, the meeting addressed the challenges family businesses encounter, particularly the intergenerational conflicts that can hinder growth and operations. The legal structure under Federal Decree-Law No. 37 of 2022 presents definitive pathways to manage ownership and governance transitions, ensuring long-term stability and success.
The dialogue also shed light on the potential for family enterprises to diversify into emerging economic sectors and enhance investments, underpinning their crucial role in shaping the UAE's financial landscape. With solid regulations and a clear framework in place, the UAE is committed to empowering family-owned ventures as a pillar of national success.
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