UAE Develops Plan to Regulate Operations of Family Businesses

UAE Develops Plan to Regulate Operations of Family Businesses

For the family ownership contract all parties must be members of the same family and have a single common interest.

The UAE has put into place a roadmap to regulate operations of family-owned businesses in the country and ensure their continuity over successive generations, the Minister of Economy said on Monday.

 

Emphasising the importance of developing a legislative structure to streamline the operations of family businesses in accordance with international best practices, Minister Abdulla bin Touq Al Marri said that family businesses are a major focus area in the country's efforts to build a more flexible and sustainable economic model. “A clear plan has been developed to enhance their leadership and competitiveness.”

In August last year, Dubai issued a law regulating family-owned businesses in the emirate to help protect family wealth and grow their contribution to the country's economic and social development.

The law allows for new family ownership contracts to be formed setting out the rights and responsibilities of family members. For the family ownership contract to become legally binding, the new law also states that all parties of the contract must be members of the same family and have a single common interest.

In September, Dubai Chamber of Commerce and Industry announced that