Today's Edition
ABU DHABI (WAM)
The UAE continues to adopt a forward-looking vision to enhance the regulatory and legislative frameworks governing family businesses in the country.
The vision aims to foster sustainable growth, ensure long-term viability, and strengthen the sector’s contribution to national economic competitiveness both regionally and globally.
The UAE Ministry of Economy and Tourism played a key role in issuing the world’s first comprehensive and pioneering legislation dedicated to family businesses: Federal Decree by Law No. (37) of 2022 concerning the Family Businesses.
The law aims to ensure business continuity through legal mechanisms and structured procedures, support diversification of business activities, ease generational transition, and encourage expansion into advanced sectors, particularly the new economy.
The Ministry has also issued four ministerial resolutions under which a unified registry for family companies was established. This registry currently includes more than 15 registered family firms. It also governs family business charters, share buy-back mechanisms, and the issuance of multiple classes of shares.
In statements to the Emirates News Agency (WAM), Abdullah bin Touq Al Marri, Minister of Economy and Tourism, emphasised that the UAE, guided by its wise leadership, has prioritised the creation of an advanced legislative environment to promote the growth and sustainability of family businesses over the coming decades.
He highlighted that family businesses are a vital driver of national economic growth, and a pillar of the UAE’s long-term vision to build a future-ready economy.
He reaffirmed the Ministry’s commitment to advancing this vital sector through continued efforts and active collaboration with stakeholders. These efforts align with the 'We the UAE 2031' vision, aiming to increase the country’s GDP to Dh3 trillion by the next decade.
Family businesses contribute approximately 60% of the UAE’s GDP, and employ 80% of the workforce. They also account for around 90% of private sector companies in the country.
These businesses operate across a wide range of vital economic sectors, including the new economy, hospitality, retail, real estate, and construction.
Family firms play a crucial role in diversifying the national economy. In Abu Dhabi alone, they represent 50% of the companies in the construction sector, 60% in financial services, 80% in wholesale and trade, and 70% in transportation.
Globally, family businesses contribute around 70% of global GDP, making them responsible for more than two-thirds of global economic activity. They are also the largest employer worldwide, providing jobs to nearly 60% of the global workforce.
