UAE unveils governance overhaul to boost family businesses

Family businesses in the UAE are poised for a boost as the Ministry of Economy introduces a unified registry and implements four new cabinet resolutions to enhance governance and competitiveness.

The initiative also aims to ensure the sustainability and leadership of family-run enterprises, aligning with a clear vision to solidify the UAE’s position as a leading destination for local, regional, and global family companies, the Emirates News Agency, also known as WAM, reported.

Abdullah Al-Marri, the UAE’s minister of economy, stressed the pivotal role of family businesses in global economic growth. He emphasized their significance as a main driver supporting the national economy’s growth and sustainability, facilitating the country’s transition toward a knowledge-based, innovative future economy.

The minister further noted that the launch of the unified registry for the sector is “an important step forward” in strengthening its governance and regulating registration procedures.

Privately-owned companies in the UAE contribute 40 percent to the national gross domestic product, representing 90 percent of the total number of private companies, underlining their importance in achieving the national goal of doubling the GDP to 3 trillion dirhams ($816 billion) by the next decade in accordance with the “We the UAE 2031” vision.

Minister Al-Marri emphasized the UAE’s commitment to ensuring the sustainable growth of family enterprises through legislation, proactive policies, and initiatives, including the “Thabat” program.

This program is designed to support family enterprises, encouraging expansion into new economic sectors and fostering growth across successive generations.

He added: “This is necessary to build an integrated work system for family enterprises in the UAE in addition to the advanced legislation and technology infrastructure they currently benefit from.”

The economy minister emphasized that the introduction of the Family Charter is crucial for the success and continuity of future generations of family companies. “It defines rules of family ownership, goals, values, including mechanisms for assessing quotas and distributing profits.”

The new registry will facilitate the registration of family-owned companies, issuance and revocation of leadership certificates, and provide continuous updates on the businesses’ status.

“The UAE continues to develop sustainable economic policies for the development of the family businesses sector given its significance as a key driver of national economic growth, while also strengthening its competitiveness regionally and globally,” said Abdullah Ahmed Al-Saleh, under-secretary of the Ministry of Economy.