Abu dhabi: Family businesses contribute around 60 percent of the UAE's GDP, as affirmed by the Ministry of Economy and Tourism, with these enterprises accounting for more than 80 percent of employment and nearly 90 percent of all private-sector companies in the country. They play a crucial role in supporting the 'We the UAE 2031' vision, which aims to double the national GDP to AED3 trillion.
According to Emirates News Agency, these figures were shared during an open dialogue session that included representatives from six major family-owned businesses in the UAE. The session was aimed at enhancing direct engagement and enabling these businesses to benefit from the country's advanced legislative and regulatory environment.
Abdulaziz Al-Nuaimi, Assistant Undersecretary for Entrepreneurship and the Economic Affairs Regulatory Sector at the Ministry, highlighted that the UAE has made notable progress in developing a competitive and integrated legislative framework to support the growth and prosperity of family businesses. He mentioned the launch of the world's first comprehensive legislation dedicated to this sector - Federal Decree-Law No. 37 of 2022 on Family Businesses.
The Ministry has enacted four ministerial resolutions that established the Unified Family Business Register, introduced the Family Charter framework, set out procedures for share buybacks by family-owned companies, and enabled the issuance of multiple share categories. The Unified Family Business Register, now fully operational, currently includes 18 companies and offers services such as registration, certificate issuance, and charter deposit.
The Assistant Undersecretary reviewed the legal and regulatory frameworks established under the Family Business Law, alongside mechanisms designed to ensure the sector's sustainability, enhance governance, and facilitate smooth intergenerational transitions. He also discussed opportunities and enablers available to encourage family businesses to expand their operations and investments in the new economy sectors.
During the meeting, major challenges affecting the evolution of family businesses in the UAE were addressed, specifically internal differences among second-generation and subsequent owners that could affect performance stability and long-term growth. In response, participants explored viable solutions under Federal Decree-Law No. 37 of 2022, which provides a streamlined legal framework for managing ownership, governance, and generational transition.