Today's Edition
Mays Ibrahim (ABU DHABI)
Family businesses account for nearly 90% of private-sector companies in the UAE and about 60% of national GDP, making their long-term growth and succession a priority as the country diversifies its economy, officials said on Wednesday.
Speaking at the inaugural Forbes Middle East Family Business Summit, presented by First Abu Dhabi Bank (FAB), officials outlined measures that aim to help family businesses maintain continuity across generations, expand their operations and establish new ventures in the UAE.
Hamad Sayah Al Mazrouei, Undersecretary at the Abu Dhabi Department of Economic Development (ADDED), said family businesses' long-term outlook was essential to economic transformation.
“The partnership between government and family enterprises helped build Abu Dhabi, and it remains central to our future.”
The UAE has introduced legislation to support family businesses, including Federal Decree-Law No. 37 of 2022 on Family Businesses.
Abu Dhabi has also established a legal framework governing family business ownership, Al Mazrouei said.
Clear ownership, governance and succession arrangements can help businesses expand and maintain continuity across generations, he added.
“Your success is ours,” Al Mazrouei told business in Abu Dhabi. “Our responsibility is to help you move from ambition to operation with clearer requirements and faster processes and coordinated support.”
ADDED works on delivering that promise, working closely with entities including the Abu Dhabi Investment Office, Abu Dhabi Chamber and Abu Dhabi Global Market.
“We are focused today on the speed of doing business, making it simpler and faster for companies to establish, operate and grow in Abu Dhabi,” he added.
Al Mazrouei identified food security, healthcare, life sciences, smart manufacturing, artificial intelligence, logistics, construction, infrastructure and tourism as areas offering opportunities for businesses to grow.
He urged family businesses to position themselves within Abu Dhabi's economic ecosystem and pursue opportunities in emerging industries.
Juma Mohammed Al Kait, Acting Undersecretary at the Ministry of Economy and Tourism, said sustaining family businesses required early succession planning, clear ownership arrangements and defined decision-making processes.
The federal Family Businesses Law provides a flexible governance framework that takes into account the different circumstances and priorities of individual families, he said.
The Unified Family Business Register offers services including registration, certificate issuance and the filing of family charters, which can help establish shared principles and clarify responsibilities among family members.
The ministry's Thabat Programme for Building Entrepreneurial Projects also supports the next generation of family business members in launching new ventures within their families' business ecosystems, drawing on existing capital, reputations and networks.
Al Kait also stressed the integral role family businesses play in advancing the UAE’s economic goals.
