Sheikh Khalifa Bin Zayed Al Nahyan.
The new law aims to further enhance the family-owned business legislative ecosystem by adopting a more flexible and sustainable economic model, in line with best international governance practices. The law also aims to boost family businesses’ contribution to the diversification and growth of the economy.
The new family business ownership governance law empowers owners of family business to: prevent selling of shares or dividends to individuals or companies outside the family, and to require prior approval from family partners before a shareholder sells their respective equity stake to a non-family member.
Owners of family businesses can also issue family-owned shares with weighted voting rights and prevent the pledging of family-owned businesses as encumbered assets, to avoid expropriation.
The current law is not applicable to family-owned businesses where non-family members own more than 40 per cent of shares.
The provisions of this law are applied to family-owned businesses on an opt-in basis for owners or co-founders by submitting a request to the Abu Dhabi Department of Economic Development (ADDED), which will issue the executive and administrative regulations of the new law from March 2022.
Commenting on the new law, Mohamed Ali Al Shorafa, Chairman of ADDED, said, "This law is a major pillar in enhancing the vital role played by these businesses in driving economic development. It also provides a legislative framework to ensure the growth and sustainability of family-owned companies in line with the evolving business sector, since it allows ownership by non-family members up to 40 per cent of the capital. This will support the expansion and development of family-owned businesses."
He added, "Family-owned businesses in Abu Dhabi continue to contribute to economic diversification and the knowledge-based economy, equipped with decades-long experience in the market, strong resilience, and experience in partnering with government entities, as well as investing in sectors targeted by strategic initiatives launched by the emirate of Abu Dhabi."
The global event gathered delegates from PCC member countries to discuss export-oriented innovation and growth strategies as well as the pivotal role of export credit agencies in trade facilitation and promotion.
“The decision will undoubtedly attract and welcome new and large investment in the country. It will also be conducive to perpetuate existing business established by expatriate community.”
The 100 per cent foreign ownership in the UAE is indeed a great step forward among a series of other reforms that the UAE has boldly undertaken over the years to increase cost competitiveness.
Anum Baqai pointed out that the UAE will have a bright future with the convening of the Expo 2020 Dubai in early October, and "we have great expectations and are certain of the success of this event." Baqai expressed her happiness to be in the UAE, where she has been residing for 11 years.
The UAE Ministry of Foreign Affairs expressed its sincere condolences to the US Government and people and to the families of the victims of this heinous crime, wishing a speedy recovery to all the injured.
Sheikh Mohamed Bin Zayed Al Nahyan, Sheikh Mohammed Bin Rashid Al Maktoum and Dr Sheikh Sultan Bin Mohammed Al Qasimi have sent cables of condolences to King Abdullah on the passing of Dr Faisal Al Yasin, the father of Queen Rania.
The ministry stressed in a statement that its aim to continue expanding the scope of testing nationwide to facilitate the early detection of coronavirus cases and carry out the necessary treatment.