The Ministry of Economy and Tourism has confirmed that family-owned businesses contribute approximately 60% of the UAE’s GDP, generate over 80% of employment, and make up nearly 90% of all private-sector companies in the country. This underscores their central role in advancing the ‘We the UAE 2031’ vision, which aims to double national GDP to AED 3 trillion.
These insights were shared during an open dialogue that gathered representatives from six major family enterprises in the UAE to strengthen direct engagement and support them in leveraging the nation’s advanced legislative and regulatory ecosystem.
Abdulaziz Al-Nuaimi, Assistant Undersecretary for Entrepreneurship and the Economic Affairs Regulatory Sector at the Ministry, highlighted that the UAE has made major progress in establishing a competitive and integrated legislative framework to ensure the growth and long-term success of family businesses.
He noted that the Ministry introduced the world’s first comprehensive law dedicated to this key sector — Federal Decree-Law No. 37 of 2022 on Family Businesses. In addition, four ministerial resolutions were issued to create the Unified Family Business Register, introduce the Family Charter framework, outline share-buyback procedures for family-owned firms, and allow the issuance of multiple classes of shares.
The Assistant Undersecretary explained that the Unified Family Business Register is now fully operational, currently listing 18 companies, and offering services including registration, certificate issuance, and charter submission.
He also detailed the legal and regulatory frameworks established under the Family Business Law, along with mechanisms designed to enhance sector sustainability, reinforce governance, and ensure smooth intergenerational succession.
In addition, he highlighted the opportunities and incentives available to support family businesses in expanding their operations and investments into new-economy sectors.
The session also explored major challenges facing family-owned businesses in the UAE — particularly internal disputes among second-generation and later stakeholders, which may undermine stability and long-term development.
Participants discussed potential solutions under Federal Decree-Law No. 37 of 2022, which provides a unified legal framework to support ownership management, effective governance, and generational transition.
(Inputs from WAM)
