Dubai Seminar Highlights Role Of Waqf, Foundations In Family Business Continuity

The Dubai Centre for Family Businesses, under Dubai Chambers, recently concluded a seminar on ‘Uses of Waqf, Foundations, and Trusts in Family Businesses.’ This event was part of the centre’s Governance Series and saw participation from over 40 family business representatives.

Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, attended the seminar. Ali Mohammed Al Mutawa, Secretary General of Endowment and Minors' Trust Foundation, delivered the opening speech. Discussions centred on how endowments, institutions, and covenant funds can ensure the continuity and sustainability of family businesses.

Speakers from Awqaf Dubai and Clyde & Co, a global law firm, explored the legal aspects and benefits of waqf, foundations, and trusts. They highlighted how these structures help preserve family wealth and contribute to the development and maturity of family businesses.

Ali Mohammed Al Mutawa noted that family endowments are a type of family business within legal frameworks. The foundation manages several family endowments organised through specific mechanisms. Efforts are made to collect, describe, and preserve their documents while ensuring their investment using modern methods.

Al Mutawa stated that Awqaf Dubai oversees 99 family endowments valued at AED 2.8 billion. These endowments act as a safety valve for future generations by guaranteeing continuity and preservation for heirs regardless of circumstances. He also mentioned the growing culture of endowment in the UAE.

The Governance Series is a key initiative by the Dubai Centre for Family Businesses. It includes educational seminars on important issues such as laws and governance frameworks essential for good succession planning. These sessions promote long-term success and regulatory compliance among family businesses.

Networking Opportunities

The series aims to support family businesses in overcoming challenges and expanding their activities. Participants benefit from networking with local, regional, and international family businesses that share success stories spanning multiple generations.

Mohammad Ali Rashed Lootah commented, "The Dubai Centre for Family Businesses remains committed to enhancing Dubai’s favourable business environment for family businesses and strengthening their administrative and operational frameworks. This comes as part of our efforts to ensure their sustainable legacies by supporting the development of their businesses in line with the emirate’s evolving business and regulatory landscape. Family-owned companies are a vital contributor to Dubai’s economic success and will play a key role in achieving the ambitions of the Dubai Economic Agenda (D33) over the coming decade."

Commitment to Growth

The centre was launched in May 2023 under Dubai Chambers to ensure the sustainability and growth of family businesses as key contributors to the nation’s economy. It is dedicated to developing this sector to enhance its economic contribution towards advancing Dubai’s future development plans.

The seminar provided valuable insights into how legal structures like waqf can support family businesses' longevity. By learning from other successful enterprises, participants gained knowledge that could help them navigate challenges more effectively.

With inputs from WAM