Family Businesses Contribute 60% To UAE GDP: UAE Ministry Of Economy And Tourism
Family businesses are pivotal to the UAE's economy, contributing approximately 60% of the GDP. They also provide over 80% of employment and make up nearly 90% of private-sector companies. These businesses are integral to the 'We the UAE 2031' vision, which aims to double the national GDP to AED3 trillion.
The Ministry of Economy and Tourism recently hosted an open dialogue session with representatives from six major family-owned enterprises in the UAE. This meeting aimed to foster direct engagement and help these businesses leverage the country's advanced legislative and regulatory framework.
Abdulaziz Al-Nuaimi, Assistant Undersecretary for Entrepreneurship and Economic Affairs Regulatory Sector at the Ministry, highlighted significant progress in creating a competitive legislative environment. This framework is designed to support family businesses' growth and long-term success.
The UAE has introduced Federal Decree-Law No. 37 of 2022, marking the world's first comprehensive legislation dedicated to family businesses. This law is complemented by four ministerial resolutions that have established key structures like the Unified Family Business Register and the Family Charter framework.
The Unified Family Business Register is now operational, including 18 companies. It offers services such as registration, certificate issuance, and charter deposit. This register is part of efforts to enhance governance and ensure smooth generational transitions within family businesses.
Al-Nuaimi also discussed legal frameworks under the Family Business Law that aim to sustain this sector's growth. These frameworks focus on improving governance and facilitating intergenerational transitions smoothly.
The meeting addressed opportunities for family businesses to expand into new economy sectors. However, challenges were also discussed, particularly internal conflicts among second-generation owners that could affect stability and growth.
Participants explored solutions provided by Federal Decree-Law No. 37 of 2022. This law offers a streamlined legal framework for managing ownership, governance, and generational transitions effectively.
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