Family businesses contribute around 60 per cent of the UAE’s GDP, account for more than 80 per cent of employment, and represent nearly 90 per cent of all private-sector companies in the country, according to the Ministry of Economy and Tourism.
The Ministry shared these figures during an open dialogue session that brought together representatives of six family-owned businesses in the UAE.
The session aimed at enhancing engagement and enabling them to benefit from the country’s legislative and regulatory environment.
UAE launches world’s first family business legislation
Abdulaziz Al-Nuaimi, Assistant Undersecretary for Entrepreneurship and the Economic Affairs Regulatory Sector at the Ministry, said the UAE has made strides in developing a legislative framework to support the growth and prosperity of family businesses.
The ministry launched the worldโs first comprehensive legislation dedicated to this vital sector โ Federal Decree-Law No. 37 of 2022 on Family Businesses, the Emirates News Agency (WAM) reported.
He noted that the ministry launched the world’s first legislation dedicated to this sector โ Federal Decree-Law No. 37 of 2022 on Family Businesses.
The Ministry has also issued four ministerial resolutions that established the Unified Family Business Register, introduced the Family Charter framework, set out procedures for share buybacks by family-owned companies, and enabled the issuance of multiple share categories.
Unified family business register now operational
The Assistant Undersecretary explained that the Unified Family Business Register is now in operation, and currently includes 18 companies. The register provides services such as registration, certificate issuance, and charter deposit.
He reviewed the legal and regulatory frameworks established under the Family Business Law, as well as mechanisms designed to support the sector’s sustainability, enhance governance, and ensure transition between generations.
He outlined the opportunities and enablers available to encourage family businesses to expand their operations and investments in new economy sectors.
Addressing challenges in generational transition
The meeting addressed challenges affecting the evolution of family businesses in the UAE, particularly differences among second-generation and subsequent owners that may disrupt performance stability and hinder growth.
Participants discussed solutions under Federal Decree-Law No. 37 of 2022, which offers a legal framework for managing ownership, governance, and transition between generations.
The family business sector is a cornerstone in supporting ‘We the UAE 2031’ vision to double the national GDP to AED3 trillion.
