Economic growth in UAE? It’s all in the family business – ZAWYA

Economic growth in UAE? It’s all in the family business – ZAWYA

Amendment to Amnesty Law encouraging firms to go public to bring more transparency, generate more wealth. The UAE Cabinet's decision to approve a draft law amending the Agency Law to allow and encourage family businesses to go public will bring in more transparency, improve productivity and corporate governance, as well as address the liquidity shortage issue to a great extent in UAE markets, say analysts.. Financial market analysts believe that allowing the family businesses - which are involved in diverse sectors, control wealth worth billions of dollars and employ thousands of people in the UAE and region - will not just give fillip to the local initial public offering market but also give greater depth to local markets and also generate more wealth.. The IPO process is critical to economy's ability to generate wealth and innovation and brings in retail and institutional investors necessary for the growth of capital market," Kumar said.. Investment opportunities will arise in capital market as more and more family businesses will opt for listing," Makvana added.. "It appears that the new law would allow families to access capital markets based on their track record giving them financial support to grow," he said..