Strengthening Family Business Governance in Dubai

Post by : Bianca Suleiman

In a collaborative initiative, Dubai Chambers partnered with the Ministry of Economy and Tourism alongside the Indian Business and Professional Council to organize a dedicated forum targeting the fortification of family businesses and their enduring viability.

Dubai’s Indian family business community convened to engage in discussions centered on improved governance structures, leadership transitions, and the integration of esteemed global practices.

Key figures in attendance, Abdulla bin Touq Al Marri and Mohammad Ali Rashed Lootah, emphasized the significance of the recent Federal Decree Law No. (37) of 2022, which is instrumental for family businesses.

This legislative framework is designed to enhance legal adaptability for family enterprises, facilitating growth, expansion, and resilience against fluctuating economic scenarios. Importantly, it fosters continuity over generations.

According to Abdulla bin Touq Al Marri, family enterprises are fundamental to the UAE's economy, responsible for approximately 60% of the nation's GDP, employing 80% of its workforce, and accounting for nearly 90% of private sector companies. He noted the UAE's robust legal infrastructure, with the Family Business Law serving a pivotal role.

A notable point was the inauguration of the Unified Family Business Registry, a national system that empowers families to register their businesses, obtain relevant certificates, and develop family charters—key components ensuring effective management and sustained operational continuity.

Marri urged all family businesses in the UAE to engage with the registry, showcasing the UAE’s favorable business climate that spans over 2,000 economic sectors.

Mohammad Ali Rashed Lootah remarked on the profound legacy of family firms in Dubai, built upon trust and experience, while pointing out Dubai Chambers’ efforts to aid these entities in adopting contemporary governance practices to position themselves for future advancement.

With 87 participants present, the forum emphasized enhancing governance frameworks, planning for leadership succession, and elevating operational effectiveness. Topics revolved around the imperative for innovative approaches to boost competitiveness in both local and international markets.

Looking forward, the Dubai Centre for Family Businesses plans to roll out three advisory services in 2025, which will address current business evaluations, family charter creation, and family office planning.

Additionally, the centre has launched a directory of family business advisors within Dubai, aiding firms in connecting with reliable professionals within crucial business domains.

The forum illustrated Dubai's unwavering commitment to empower family businesses and bolster their role in driving economic growth and enhancing global competitiveness.

#Global News #World News #UAE News #Dubai News