Family businesses contribute 60% to UAE’s GDP and 80% of employment, as the Ministry highlights their role in national growth.

ABU DHABI: The UAE’s family businesses are a vital engine of economic growth, contributing 60 percent to the country’s GDP and accounting for over 80 percent of private-sector employment, according to the Ministry of Economy and Tourism. These businesses represent nearly 90 percent of all private companies in the UAE, underscoring their pivotal role in realising the ‘We the UAE 2031’ vision.

The figures were shared during a recent open dialogue session hosted by the Ministry, attended by representatives of six prominent family-owned firms. The meeting focused on strengthening engagement and outlining how family businesses can benefit from the UAE’s progressive legal and regulatory infrastructure.

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Abdulaziz Al-Nuaimi, Assistant Undersecretary for Entrepreneurship and the Economic Affairs Regulatory Sector, emphasised the nation’s significant progress in building a competitive ecosystem for family enterprises. He highlighted Federal Decree-Law No. 37 of 2022, the world’s first dedicated legislation for family businesses, as a cornerstone of this effort.

Since the law’s introduction, the Ministry has issued four supporting ministerial resolutions. These include the Unified Family Business Register, the Family Charter framework, share buyback procedures, and new share classifications—all designed to enhance transparency, continuity, and governance.

The Unified Family Business Register, now operational, currently includes 18 companies and offers services such as official registration, certification, and charter documentation. These tools aim to promote sustainability and streamline intergenerational succession planning.

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Al-Nuaimi also addressed common challenges facing UAE family firms, particularly leadership transitions and internal conflicts among second-generation stakeholders. He said the legal framework offers practical solutions to maintain stability and ensure smooth ownership transfers.

The Ministry continues to encourage family enterprises to invest in emerging sectors of the economy and benefit from government incentives, reinforcing their role as key drivers of national development.