Emirates .. Family companies enhance their growth and contribution to the national economy

Abu Dhabi, July 27 / WAM / The UAE continues to adopt a future vision to develop the organizational and legislative frameworks for family companies in the country, in a manner that ensures the enhancement of its growth and sustainability, and establishes its contribution to the growth and competitiveness of the national economy regionally and globally.

The Ministry of Economy and Tourism contributed to the issuance of the first integrated and unique legislation in the world concerned with this vital sector, which is a decree of a federal law No. 37 of 2022 regarding family companies, which aims to ensure the continuity of family companies in the country through legal mechanisms and deliberate procedures, diversify their activities and facilitate their transfer between future and current generations, and motivating them to expand in advanced economic sectors. Especially the new economy.

The Ministry has worked to issue 4 ministerial decisions, according to which the unified record of family companies, which currently includes more than 15 family companies, as well as organizing the family company charter, mechanisms for buying family companies for their shares, and the family company’s issuance for multiple categories for classes.

The unified registry represents a comprehensive federal platform that provides family companies in the Emirates major services, which are the registration of family companies in the registry, the issuance of registration certificates and the deposit of family covenants to ensure the continuity of management and operational operations, and the mechanism of registration of family companies in the unified registry is now full of their capacity through an integrated system that is in line with the procedures of local authorities competent to grant licenses, which guarantees the smoothness of procedures and their reliability at the state level.

Within the framework of its project “Developing Economic Policies in the State”, the Ministry of Economy and Tourism cooperated with the Organization for Economic Cooperation and Development “OECD” to exchange the latest global experiences and practices in developing policies and legislation related to family companies, in a way that contributes to enhancing the pioneering legislative structure of this vital sector, and accompanies regional and international developments and changes.

His Excellency Abdullah bin Touq Al -Marri, Minister of Economy and Tourism, said in a statement to the Emirates News Agency, “WAM”, that the UAE, thanks to the directives of its rational leadership, paid great attention to creating an advanced legislative environment to enhance the growth of family companies’ business and support their continuity and sustainability during the coming decades, according to international best practices, explaining that this interest comes from the state’s vision that family companies are the main engine to enhance the growth of the economy The national and its sustainability and support for the national trends aimed at building the economy of the future.

His Excellency stressed that the ministry continues in its relentless efforts and its effective cooperation with its partners to enhance the leadership of this vital sector and push it to more advanced and prosperous levels, which contributes to achieving the national target of the vision of we the Emirates by raising the gross domestic product of the state to 3 trillion dirhams by the next decade.

The Ministry of Economy and Tourism launched the “stability” program with the aim of supporting the investments of family companies, diversifying their entrepreneurial activities and projects in the fields of the new economy and strengthening their partnerships and opportunities within the country’s markets and outside, and the program succeeded in providing its services to 200 family companies in the country so far, and providing companies participating in the program strategic training courses and future forensic sessions.

From its inauguration, from its inception until today, the launch of 4 promising startups in the real estate, financial, health and e -commerce technology sectors, led by a group of family companies in the country, which reflects the active role of the program in enabling new generations to expand various projects in the new economy sectors.

Family companies contribute 60% to the country’s gross domestic product, employ 80% of the workforce, in addition to that they constitute about 90% of private companies in the country, and family companies operate in a wide range of biological economic sectors, including the new economy, hospitality, retail, real estate, and construction.

Family companies play a vital role in diversifying the national economy, as family companies in the Emirate of Abu Dhabi account for 50% of companies operating in the construction sector, 60% in the financial sector, 80% in the wholesale/trade sector, and 70% in the transport sector.

On the global level, family companies contribute about 70% of the global GDP, which means that more than two -thirds of global economic activity emanates from these entities, and is the largest operator of the workforce globally, as it employs approximately 60% of the total workers around the world.

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