Family-owned companies play a significant role in shaping the UAE economy, contributing approximately 60 per cent of the GDP, over 80 per cent of employment, and nearly 90 per cent of private-sector firms, according to the Ministry of Economy and Tourism.
During an open dialogue with representatives from six major family businesses, the Ministry reaffirmed that these firms remain a cornerstone of the “We the UAE 2031” vision, which seeks to double the national GDP to AED 3 trillion ($816 billion). The session emphasised the government’s commitment to providing an enabling environment that sustains family enterprises and supports their long-term expansion.
Strengthening the Legal Foundation
Abdulaziz Al-Nuaimi, Assistant Undersecretary for Entrepreneurship and the Economic Affairs Regulatory Sector, highlighted that the UAE has made “significant strides in developing a competitive and integrated legislative framework to support the growth and long-term prosperity of family businesses.”
He explained that the UAE introduced Federal Decree-Law No. 37 of 2022 on Family Businesses, the world’s first comprehensive legislation dedicated entirely to this sector. To reinforce its implementation, four subsequent ministerial resolutions were issued to:
- Establish the Unified Family Business Register
- Introduce the Family Charter framework
- Set share buyback procedures for family companies
- Enable multiple share categories for greater flexibility
These measures aim to modernise governance, enhance transparency, and protect family ownership structures across generations.
Governance, Sustainability, and Generational Continuity
Al-Nuaimi confirmed that the Unified Family Business Register is now fully operational, with 18 companies already enrolled. The platform facilitates registration, certificate issuance, and charter deposit, simplifying compliance and recordkeeping for participating firms.
He also reviewed broader legal and regulatory frameworks that promote governance, sustainability, and intergenerational transition—key priorities for preserving the longevity of family enterprises.
The discussion further addressed common challenges such as internal differences among second-generation owners, which often affect performance and succession planning. Participants explored solutions available under Federal Decree-Law No. 37 of 2022, which provides a structured mechanism for managing ownership, governance, and succession.
By fostering transparency and institutionalising best practices, the UAE aims to ensure that family-owned businesses continue serving as resilient pillars of economic growth and national diversification.
