No one is ignorant of the magnitude of the influence of family businesses on the path of the national economy, through what they play an important role in several areas, and therefore their continuity and development are primarily a national interest, and any imbalance in them does not affect the movement of the economy only, but also to workers and employees And the beneficiaries of the services of those companies.
Therefore, it is very necessary that family companies work to convert into joint stock companies, in order for family companies to maintain their stability and long-term persistence first, and to achieve many benefits and benefits that can benefit them in particular, and the national economy in general, in terms of ease of providing liquidity For the company, which gives it the ability to finance its expansion plans and investment projects, at the lowest costs, to obtain new human capabilities, capabilities and competencies, and to provide solid capital capable of carrying out huge projects, and to improve the company's financial, administrative and production capabilities.
In addition to protecting the company from collapse and disappearance, after the absence of the first generation of founders, and the transfer of ownership to the heirs, and therefore all of this leads to the development of the national economy by expanding the base of joint-stock companies, expanding the base of ownership and diversifying activities, which leads to an increase in revenue and the local output of the state, And activating the performance of the stock market, by entering new companies.
Despite these benefits, it is clear that there is a noticeable fear among Emirati family companies, of converting to public joint stock companies .. What is the reason for that ?!
In fact, the reason for this is not one, but there are several reasons, including: fear of losing control of the company’s decision, fear of faltering new capital, in addition to fear of interfering in the company's economic activity, and starting ill-conceived expansionary operations that affect the company's reputation, Inability to reach a fair price per share!
Not only that, and the matter is not related to concerns only, but there are claims that owners of family companies see as a necessity that must be met, so that they can make the decision to switch to public shareholding companies. That in the past years, and specifically from 2008 until today, these companies went through difficult circumstances, which greatly limited the achievement of high profit rates, but the situation is now considered better, and there are signs of improvement that are looming on the horizon.
The Securities and Commodities Authority’s request for private companies to present the “Balance Sheet”, or the balance sheet of companies, which are private companies, raises the margin of hesitation for these companies, while it will certainly not hesitate if given, for example, a two-year grace period after listing in the financial market , Even providing budget papers, as a kind of encouragement for these companies to subscribe.
Also, the requirement for these companies to provide a guarantee of at least 10% annual profits for a period of two years comes as a kind of incapacitating conditions in such current conditions as the whole world is going through, and all companies around the world are affected, while this condition can be postponed at least two years But not for sure now!
In the UAE in general, and Dubai in particular, a number of successful large family companies, that if they are listed on the financial market will constitute a significant support to the local market, and will work to achieve significant economic benefits, so it is necessary for the Securities and Commodities Authority to secure subscription terms These companies, by adopting their assets for evaluation, giving companies the flexibility and choice to sell a percentage of their shares, or not to sell, for a period of at least three years, providing facilities for these companies is very important, especially as they excel in their performance, and controlling their management over many international or local companies Listed in the financial markets.
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