The Dubai government is implementing a series of initiatives aimed at safeguarding family businesses and enhancing their competitiveness and growth prospects in an ever-changing global landscape. The goal is to drive a new phase of robust economic growth in the emirate.
In the past year, Dubai has introduced legislative and support measures to assist family businesses in navigating the challenges and opportunities arising from the evolving global economy.
Family businesses currently account for over 40 percent of Dubai’s GDP and play a crucial role in the UAE’s economy, with 90 percent of private companies in the country being family-owned, according to a report from the UAE Ministry of Economy. Moreover, these businesses are major employers, providing livelihoods for more than 70 percent of the private sector workforce.
Dubai’s strategic location and its reputation as a highly connected city make it an attractive global hub for family businesses seeking access to high-growth markets. The emirate’s excellent infrastructure, healthcare, education, and lifestyle offerings further contribute to its appeal for family-owned enterprises. The projected growth in financial wealth in the UAE is expected to fuel significant expansion in the family business sector.
However, to ensure sustained prosperity for future generations, family businesses must address various challenges brought about by the changing economy, including digitization, cultural issues, governance, and succession planning.
To empower family businesses and pave the way for lasting success, Dubai has recently launched a range of initiatives. One notable initiative is the establishment of the Dubai Centre for Family Businesses by Dubai Chambers.
This center aims to educate family-owned firms on leadership transition, succession planning, and growth. It also offers support through various programs, including a center for resolving family business-related disputes.
Furthermore, the center has introduced new governance guidelines to help family-owned companies establish effective governance frameworks, facilitating a smooth succession process and ensuring the continuity of family businesses.
Dubai Chambers’ Chairman, Abdulaziz Abdulla Al Ghurair, expressed confidence that these measures, combined with legislation promoting a favorable business environment and specialized training, will enhance the impact of the family business sector and enable them to overcome challenges and elevate governance standards for seamless leadership transitions between generations.
He added, “We at Dubai Chambers are committed to supporting the success of family businesses by representing their interests, enhancing their competitiveness, and advancing the capabilities of the next generation of leaders.”
In March of this year, the Dubai International Financial Centre (DIFC), the leading financial hub in the Middle East, Africa, and South Asia (MEASA) region, unveiled the DIFC Family Wealth Centre, a groundbreaking initiative that is the first of its kind globally.
The primary objective of the DIFC Family Wealth Centre is to bring together family-owned businesses and ultra-high net-worth individuals (UHNWIs) from around the world to offer comprehensive support services, enabling them to preserve and expand their wealth.
The centre’s services are not only designed to boost the growth of local family businesses in Dubai but also to attract similar enterprises and UHNWIs from diverse international locations.
With an estimated AED 3.67T in assets expected to be transferred to the next generation in the Middle East over the next decade, this initiative assumes a pivotal role in fulfilling Dubai’s commitment to bolstering family businesses.
Essa Kazim, the Governor of DIFC, emphasized that by leveraging the DIFC’s extensive experience and expertise, family businesses in Dubai can elevate their growth prospects and achieve effective succession planning for future generations.
“We understand the critical role family businesses play in the global economy, and the DIFC Family Wealth Centre’s end-to-end service offering is designed to empower them to thrive, innovate, and preserve their legacies for generations to come,” he said.
