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When it comes to family businesses, the UAE has big plans.
In the past 18 months alone, the country has introduced numerous programmes, initiatives and regulations, all designed to support the development and growth of family businesses.
In addition to approving the law allowing family businesses to list on the country’s financial market, the government also enacted a new family business ownership governance law to facilitate the transition to the next generation and launched a program aimed at converting 200 family business projects into major projects . By 2030, the company will be established and a committee has recently been established to ensure the continuity of the family business.
As Sheikh Maktoum bin Mohammed, Finance Minister and Deputy Ruler of Dubai, explained when launching one of the plans last year: “The UAE is on the verge of unprecedented growth over the next 50 years, and the family Businesses are invited to become the backbone of Dubai’s economy. This.”
These measures come as the country continues its transition towards a more sustainable economy, and recognizing the importance of family businesses to the country’s economy and society is key to achieving this.
Data from the UAE Ministry of Economy shows that family businesses not only account for 90% of private businesses in the UAE, but also employ more than 70% of the industry’s workforce and contribute approximately 40% to the UAE’s GDP.
They create jobs, build ecosystems through supply chains, and contribute to communities through philanthropy. They are some of the largest conglomerates in the United States, spanning key sectors including finance, real estate, retail, lifestyle and technology.
However, many people need help and support to make the transition to the “new economy”.
Why UAE family businesses need help to grow
As stated by His Excellency Abdulaziz Al Ghurair, Board Member of the Abudullah Al Ghurair Group of Companies, one of the largest and most successful business family groups in the UAE. Nationwide In the last year, most family businesses have become accustomed to the “traditional economy”.
These companies need to “take the initiative to enter this new economy. In the new economy, you need to understand the business and you need to take some risks.”
This is a sentiment shared by many UAE business leaders and members of government, including His Excellency Dr Ahmed Falasi, Minister of State for Entrepreneurship and SMEs. “What we find increasingly difficult in the region is third-generation family owners running businesses in a one-man show,” Al Falasi told attendees at last year’s Top CEOs Forum in Dubai.
“We want them to build their business in a way that is future-proof – that’s not necessarily going to happen until they reach billions of dollars. [stage]”.
In order to promote the development of family businesses into the new economy, prepare them for the future, help them embrace digitalization and cultivate more entrepreneurial thinking, the government has introduced various laws and introduced a number of measures.
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