The Abu Dhabi International Center for Arbitration has entered into a significant memorandum of understanding with the Abu Dhabi Family Business Council, which operates under the Abu Dhabi Chamber of Commerce and Industry. This partnership aims to promote long-term sustainability and solidify governance principles for family businesses in the United Arab Emirates.
The agreement establishes a framework for collaboration focused on enhancing the legal resilience of family firms, embedding robust corporate governance practices, and developing effective mechanisms for the prevention and resolution of family business disputes. Through this cooperation, both parties will encourage the use of arbitrators, neutral parties, mediation, and arbitration as reliable tools to protect business interests while maintaining family relationships. These measures will also facilitate smooth generational transitions and resolve disputes in a confidential and private environment, aligning with the highest international standards and procedural integrity.
Developing an Integrated System
Dr. Ali bin Harmal Al Dhaheri, Chairman of the Abu Dhabi International Center for Arbitration, stressed the center’s commitment to establishing a comprehensive and advanced system for resolving family business disputes, in response to modern commercial demands and the complexities of family structures.
He stated, “This agreement represents a significant step towards broadening the use of private and confidential dispute avoidance and resolution mechanisms, which are effective tools for preserving both business and family relationships. Through this memorandum, we aim to strengthen the legal framework of family businesses, entrench corporate governance, and establish effective frameworks for litigation, mediation, and arbitration based on best global practices.”
An Advanced Environment
Khaled Abdul Kareem Al Fahim, Chairman of the Abu Dhabi Family Business Council, noted, “This agreement supports the council’s efforts in reinforcing the legal foundations and corporate governance that underpin the sustainability of family businesses and ensures smooth leadership transitions across generations. Through this collaboration, we aim to provide an advanced environment that enhances the stability of family enterprises and supports their vital role in fostering sustainable economic growth in Abu Dhabi and the UAE.”
This partnership serves as a cornerstone of the united efforts between the Abu Dhabi Family Business Council and the Abu Dhabi International Center for Arbitration to empower the family business sector and prepare it for the future.