KHALEEJ TIMES, Tuesday, Jan 5, 2021 | Jamadi Al Awwal 21, 1442
UAE roadmap to regulate family-owned businesses
Emirates:
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 it has
signed a memorandum of understanding with the Family Business Council – Gulf (FBC-Gulf)
that will see the two entities cooperate on a research agenda that meets the
changing needs of family business in Dubai.
Al Marri said that his ministry is keen to raise the level of coordination with
all its partners from federal and local government entities and the private
sector to develop several specific initiatives that would enhance the readiness
of priority sectors and economic activities, most notably family businesses, to
keep pace with the nation’s transformation over the next 50 years.
“The work teams formed by the Ministry and FBC-Gulf have put in place a number
of tracks to move forward in this regard, and formulate the necessary economic
policies to provide a supportive and encouraging environment to enhance the
contribution of family businesses and their significant roles in the
diversification and growth of the national economy,” the minister said.
Al Marri made these remarks during a meeting with the representatives of FBC-Gulf,
which was held to review the progress of work achieved by the teams and joint
work committees.
The meeting was also attended by Dr Thani bin Ahmed Al Zeyoudi, Minister of
State for Foreign Trade; Abdulaziz Abdalla Al Ghurair, chairman of the board of
directors, member and honorary chairman of the Family Business Council-Gulf;
Abdullah bin Ahmed Al Saleh, undersecretary of the Ministry of Economy; and Omar
Al Futtaim, vice-chairman of the board, besides several experts and advisors
from both sides.
Both sides underlined the importance of the existing cooperation between MoE and
the FBC-Gulf and the important initiatives presented by the joint work teams
that support the operations of this sector and provide it with the necessary
legislative and organizational support.
The joint-team reviewed the steps that have been implemented so far subsequent
to the meetings of three main working groups — the strategy team, the research &
development team, the legislation and best practices team.
The teams have agreed to start work in the next phase according to fixed time
frames and clear specifics and implementation mechanisms that focus on three
main tracks. These include development of policies that support the growth of
family businesses, enhancing data collection regarding family companies, and
raising awareness on the importance of family business governance.
The two sides also agreed to form a technical committee to follow up on the
implementation of the plans and initiatives agreed upon.
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