Dubai’s family-run businesses, which already account for over 40% of the city’s GDP, are set to get even more support.
As reported by Khaleej Times, a plan is in place to draw family enterprises and ultra-wealthy individuals from around the globe to strengthen the local economy.
According to a report from the UAE Ministry of Economy, a staggering 90% of private firms in the UAE are family-owned. These companies are a major component of the economy and provide jobs for more than 70% of the private sector workforce.
They are deeply embedded in key areas like real estate, construction, retail trade, hospitality, manufacturing, financial services, healthcare, education, and technology.
The city’s leaders have big plans for economic growth. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, unveiled the Dubai Economic Agenda D33, outlining ambitious goals for the next ten years.
Financial wealth in the UAE is growing fast. It’s expected to rise by 6.7% annually and hit the $1 trillion mark by 2026, up from $700 billion in 2021. This increase is predicted to spur significant expansion in the family business sector.
But there are challenges to tackle if these businesses are to grow and prosper. They will have to deal with issues like digital transformation, cultural shifts, governance, and succession planning.
To help them navigate these obstacles, Dubai has launched a series of initiatives aimed at enabling family businesses to pave the way for long-term prosperity.
Earlier this year, Dubai Chambers introduced the Dubai Centre for Family Businesses. The Centre’s mission is to educate family firms on handling leadership transitions, planning for the future, and achieving growth. It will offer a range of initiatives, including a center to help resolve family business disputes.
Recently, the Centre presented governance guidelines to help family firms establish effective governance frameworks. These guidelines provide detailed advice on how to draft a family constitution and offer practical tips to help family businesses build strong governance structures for smooth succession and business continuity.
Chairman of Dubai Chambers, Abdulaziz Abdulla Al Ghurair, said, “Dubai’s visionary leaders have made the city a global hub for business and investment, and they remain committed to creating the best possible environment for family businesses to succeed.”
The Centre has also rolled out several programs designed to enhance the global competitiveness of local family businesses. These include leadership training programs, educational initiatives on important issues, and awareness campaigns about governance.
In March, Dubai International Financial Centre (DIFC) launched the DIFC Family Wealth Centre. The center is the first of its kind worldwide and offers a wide range of services such as advisory and concierge services, certification, education, and dispute resolution support.
The DIFC Family Wealth Centre aims to unite family businesses and ultra-wealthy individuals worldwide to protect and grow this sector. Given that approximately AED 3.67 trillion in assets is expected to pass to the next generation in the Middle East within the next ten years, this initiative is critical in fulfilling Dubai’s commitment in supporting family businesses.
Via Khaleej Times
