Supporting Family Businesses for Sustainable Growth in Dubai

In a recent forum organized by Dubai Chambers in collaboration with the Ministry of Economy and Tourism and the Indian Business and Professional Council, attendees explored strategies for enhancing the sustainability of family businesses. This event drew 87 members of the Indian business community and focused on strengthening governance and encouraging the adoption of international best practices.

Importance of Family Businesses in the UAE

Family enterprises play a crucial role in driving economic growth, contributing significantly to the UAE’s GDP and workforce. According to statements made during the forum, family businesses represent approximately 60% of the UAE’s GDP and employ around 80% of the workforce. Furthermore, they account for about 90% of all private companies within the country, spanning vital sectors such as hospitality, retail, and real estate. This highlights their essential function in fostering economic diversification and competitiveness, positioning them as key players in the nation’s economy.

H.E. Abdulla bin Touq Al Marri, the Minister of Economy, emphasized that family businesses are a pivotal element of the UAE’s drive towards a knowledge-based economy. He referred to the Federal Decree Law No. (37) of 2022, which aims to provide a flexible regulatory framework for family businesses, promoting an environment conducive to their growth and adaptability in changing economic landscapes.

Unified Family Business Registry: A Game Changer

The forum also spotlighted the recently launched Unified Family Business Registry, a comprehensive federal platform designed to support family businesses in the UAE. H.E. Al Marri outlined the registry’s services, which include the registration of family businesses, issuance of registration certificates, and establishment of family charters. This initiative is intended to foster business continuity and enhance management practices, ensuring that family businesses are well-equipped for future challenges.

Both H.E. Al Marri and H.E. Mohammad Ali Rashed Lootah, the President and CEO of Dubai Chambers, urged family businesses to take advantage of the services offered by the registry. They emphasized that these initiatives are designed to create a robust business environment characterized by competitiveness and an openness to global markets. Such offerings present an array of growth opportunities across more than 2,000 economic activities, thereby strengthening family businesses’ positions in the regional and global market.

Future Directions for Family Enterprises

Dubai is not just focused on the current needs of family businesses; it is also committed to preparing them for future challenges. H.E. Lootah underscored the importance of transitioning family businesses to more advanced institutional models that align with global trends. He reiterated the commitment to help these enterprises adopt best governance practices, ensuring their longevity and impactful contributions to the national economy.

The forum concluded with discussions on innovative strategies for enhancing operational performance and ensuring successful leadership succession across generations. By focusing on these areas, family businesses can improve their stability and efficiency, making them more resilient in the face of changes both locally and globally.

With the launch of new advisory services and a comprehensive directory of family business advisers in Dubai, there are more tools than ever for family enterprises to enhance their operational capabilities. These efforts not only focus on immediate business needs but also ensure that family businesses are equipped for long-term success and growth in an ever-evolving economic landscape.