Family businesses contribute 60 per cent to UAE GDP, says ministry

The Ministry of Economy and Tourism has affirmed that family businesses contribute around 60 percent of the UAE’s GDP, account for more than 80 percent of employment, and represent nearly 90 percent of all private-sector companies in the country, making them a cornerstone in supporting ‘We the UAE 2031’ vision to double the national GDP to AED3 trillion.

The Ministry shared these figures during an open dialogue session that brought together representatives of six major family-owned businesses in the UAE, aimed at enhancing direct engagement and enabling them to benefit from the country’s advanced legislative and regulatory environment.

Abdulaziz Al-Nuaimi, Assistant Undersecretary for Entrepreneurship and the Economic Affairs Regulatory Sector at the Ministry, emphasised that the UAE has made significant strides in developing a competitive and integrated legislative framework to support the growth and long-term prosperity of family businesses.

He noted that the ministry launched the world’s first comprehensive legislation dedicated to this vital sector — Federal Decree-Law No. 37 of 2022 on Family Businesses. The Ministry has also issued four ministerial resolutions that established the Unified Family Business Register, introduced the Family Charter framework, set out procedures for share buybacks by family-owned companies, and enabled the issuance of multiple share categories.

The Assistant Undersecretary explained that the Unified Family Business Register is now fully operation, and currently includes 18 companies and provides services such as registration, certificate issuance, and charter deposit.

He also reviewed the legal and regulatory frameworks established under the Family Business Law, as well as mechanisms designed to support the sector’s sustainability, enhance governance, and ensure smooth intergenerational transition.

He also outlined the opportunities and enablers available to encourage family businesses to expand their operations and investments in new economy sectors.

The meeting also addressed major challenges affecting the evolution of family businesses in the UAE, particularly internal differences among second-generation and subsequent owners that may disrupt performance stability and hinder long-term growth.

In response, participants discussed viable solutions under Federal Decree-Law No. 37 of 2022, which offers a streamlined legal framework for managing ownership, governance, and generational transition.