The United Arab Emirates continues to adopt a forward-looking vision to enhance the regulatory and legislative frameworks governing family-owned businesses in the country. This initiative aims to strengthen their growth and sustainability while bolstering their contribution to the competitiveness and expansion of the national economy both regionally and globally.
The Ministry of Economy and Tourism has played a pivotal role in implementing the world’s first comprehensive and unique legislation dedicated to this vital sector—Federal Law Decree No. 37 of 2022 concerning family businesses. This law aims to ensure the continuity of family-owned enterprises through legally structured mechanisms and thoughtful procedures. It seeks to diversify their activities, facilitate the transition between current and future generations, and encourage them to expand into advanced economic sectors, particularly in the emerging economy.
The ministry has also introduced four ministerial decisions that established a unified registry for family businesses, currently comprising over 15 family enterprises. Additionally, it has organized the family business charter, set up mechanisms for family businesses to repurchase their shares, and enabled the issuance of multiple share categories for family firms.
This unified registry serves as a comprehensive federal platform, providing essential services for family businesses in the UAE. It facilitates the registration of family firms, the issuance of registration certificates, and the deposition of family charters to ensure the sustainability of management and operational processes. The registration of family businesses is now fully operational through a centralized system that aligns with local authorities’ procedures for granting licenses, guaranteeing smooth and reliable processes throughout the country.
As part of its “Economic Policy Development” project, the Ministry of Economy and Tourism has collaborated with the Organisation for Economic Co-operation and Development (OECD) to exchange the latest global expertise and best practices in the formulation of policies and regulations concerning family businesses. This collaboration aims to enhance the legislative framework for this critical sector and keep pace with regional and international developments.
According to Abdullah bin Touq Al Marri, the Minister of Economy and Tourism, the UAE, under the guidance of its leadership, has prioritized creating an advanced legislative environment to foster the growth and sustainability of family businesses over the coming decades, aligned with global best practices. This focus reflects the nation’s vision that family businesses are key drivers of economic growth and sustainability and support national efforts towards building a future economy.
The minister emphasized that the ministry is dedicated to its ongoing efforts and active collaboration with partners to elevate the leadership of this vital sector, pushing it to new levels of advancement and prosperity, contributing to the national goal of raising the GDP to 3 trillion dirhams by the next decade.
The Ministry has launched the “Thabat” program aimed at supporting family business investments, diversifying their activities and entrepreneurial projects in the new economy, and enhancing their partnerships and opportunities within domestic and international markets. The program has successfully served 200 family businesses to date, offering participants strategic training courses and foresight sessions.
Since its inception, the program has facilitated the launch of four promising startups in sectors such as real estate technology, finance, healthcare, and e-commerce, driven by a group of next-generation family members. This reflects the program’s active role in empowering new generations to expand ventures in various new economy sectors.
Family businesses account for 60% of the national GDP and employ 80% of the workforce, making up approximately 90% of all private enterprises in the UAE. They operate across a broad spectrum of essential economic sectors, including the new economy, hospitality, retail, real estate, and construction.
Family businesses play a crucial role in diversifying the national economy, with those in Abu Dhabi comprising 50% of the companies in the construction sector, 60% in finance, 80% in wholesale/retail, and 70% in transport.
Globally, family businesses contribute around 70% of the world’s GDP, signifying that over two-thirds of global economic activity stems from these entities. They are also the largest employers worldwide, accounting for nearly 60% of total global employment.