Covid-19 is strengthening UAE family businesses’ corporate governance structure – The National

Covid-19 is strengthening UAE family businesses’ corporate governance structure – The National

Family firms are the backbone of the UAE's economy.. According to a study released by the Sheikh Saoud bin Khalid bin Khalid Al-Qassimi Chair in Family Business at the American University of Sharjah earlier this year, one-third of family firms in the UAE have formal family councils that harmonise the relationship between the family and the firm.. Having a formal family council and protocol is essential to promote family and business welfare as well as to organize the relationship between family members and the business.. Less than half of surveyed family firms in the UAE have such a formal board of directors.. During the current global pandemic, such a board could adjust its role to scrutinise the risks of the crisis and monitor the associated effects and future consequences on both the family and the business.. Being caught without a board of directors during a challenging time may adversely affect family firms' ability to foresee risks and adjust procedures and policies to mitigate the challenges ahead.. Merely having a board of directors in place does not guarantee success-the board's composition and structure matter to ensure competitiveness in times of crisis.. The report shows that only 22 per cent of family