New family business law set to drive UAE economy

New family business law set to drive UAE economy

New law will help double family-owned businesses’ contribution to the nation's GDP to $320 billion in 2032 by preparing them for the future economy

New law will follow best international practices and aim at enhancing corporate governance structure in the country.

Published: Sun 1 Jan 2023, 6:31 PM Last updated: Sun 1 Jan 2023, 6:44 PM

The new family business law looks set to strengthen corporate sector and diversyfy the UAE economy by attracting investment in key sectors and contributing more to the country's gross domestic product (GDP) in coming years, experts say.

New law, which becomes effective this week, will follow best international practices and aim at enhancing corporate governance structure in the country. It will help double family-owned businesses’ contribution to the nation's GDP to $320 billion in 2032 by preparing them for the future economy.

Analysts, economists and legal experts said the enactment of the Family Companies Law by the UAE government is a welcome piece of legislation which enables family businesses to overcome challenges when planning succession under the existing legal framework of the UAE Companies Law.

Building business conglomerates

Vijay Valecha, chief investment officer, Century Financial, said the new family business law, which intends to increase the contribution of family enterprises to