ABU DHABI: The UAE is enhancing its support for family businesses through modern legislative reforms and strategic policies aimed at boosting their role in the national economy. With a clear forward-looking vision, the government is nurturing an environment that promotes sustainable expansion, encourages generational continuity, and ensures resilience for decades to come.
One of the major initiatives led by the Ministry of Economy and Tourism is the enactment of Federal Decree Law No. (37) of 2022, recognised as the world’s first comprehensive legislation dedicated to family businesses. This pioneering law provides structured mechanisms to support long-term business continuity, diversification into advanced sectors, and smooth leadership transitions within family-run firms.
To reinforce this framework, the Ministry introduced four ministerial resolutions, establishing a unified registry for family companies. The registry now includes over 15 firms and outlines governance practices such as family business charters, share buy-back policies, and multiple share classes—offering these firms operational flexibility and legal clarity.
Abdullah bin Touq Al Marri, Minister of Economy and Tourism, emphasised the nation’s commitment to creating a globally competitive business ecosystem. “Family businesses are integral to our vision of a future-ready economy,” he said in remarks to Emirates News Agency (WAM), referring to their contribution to the “We the UAE 2031” vision, which targets a GDP increase to AED3 trillion by the next decade.
Currently, family businesses contribute nearly 60% to the UAE’s GDP, employ 80% of the workforce, and make up 90% of the private sector. In Abu Dhabi, they dominate several key sectors—accounting for 80% of wholesale and trade, 70% of transportation, 60% of financial services, and half of the construction industry.
On the global scale, family businesses are responsible for 70% of GDP and nearly 60% of employment, underscoring their critical role in both regional and international economic landscapes.
-Agencies/WAM
