"Economy and tourism"Family businesses contribute 60% of the gross domestic product

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Dubai, 7 November / WAM / The Ministry of Economy and Tourism confirmed that the family business sector contributes about 60% of the UAE’s gross domestic product, provides more than 80% of job opportunities, and constitutes nearly 90% of the total private companies in the country, making it an important focus in supporting the achievement of the “We Are the Emirates 2031” vision, which aims to double the GDP to 3 trillion dirhams.

This came during an open dialogue session organized by the Ministry, which brought together representatives of 6 of the largest family companies in the country, with the aim of enhancing direct communication and enabling them to benefit from the advanced legislative and regulatory environment.

During the meeting, His Excellency Abdulaziz Al Nuaimi, Assistant Undersecretary for the Entrepreneurship Sector and Regulation of Economic Affairs in the Ministry, confirmed that the UAE has made great strides in developing an integrated and competitive legislative structure to regulate the work of this vital sector.

He pointed to the issuance of the first integrated and unique legislation of its kind in the world, which is Federal Decree Law No. 37 of 2022 regarding family companies, and the subsequent 4 ministerial decisions that established the “Unified Register of Family Companies” and organized the “Family Company Charter” and the mechanisms for purchasing shares and issuing multiple categories for them.

Al Nuaimi explained that the registration mechanism in the unified registry is now fully operational, and the registry currently includes 18 companies, and provides registration services, issuing certificates, and filing charters.

He reviewed the legal frameworks provided by the law to support the sustainability of family businesses, ensure their governance and smooth transfer between generations, and stimulate them to expand into the sectors of the new economy.

The meeting discussed ways to empower family businesses by regulating the transfer of ownership and management between generations, and discussed the most prominent challenges they face, such as administrative disparities between generations, and how Federal Decree Law No. (37) provides effective solutions to resolve disputes in a way that ensures the stability of their business.