Mohammed bin Rashid issues a decree establishing the Family Business Center in Dubai

DUBAI, 2nd February, 2020 (WAM) -- Vice President and Prime Minister of the UAE, His Highness Sheikh Mohammed bin Rashid Al Maktoum, in his capacity as Ruler of Dubai, issued a decree establishing the Family Business Center in Dubai, with the aim of enhancing the sustainability and growth of family businesses in the emirate.

Pursuant to the decree, the center is established within the organizational structure of Dubai Chambers, and it undertakes the functions entrusted to it under this decree, the decisions issued pursuant thereto, and the legislation in force in the emirate.

The decree establishing the Family Business Center in the Emirate of Dubai is in line with the Federal Decree Law on Family Business, which aims to establish a comprehensive and easy legal framework to regulate the ownership and governance of family businesses in the UAE, facilitate their transmission between generations, support the continuity of family businesses and enhance the role of the private sector in Economic growth and community contribution in the country.

And the decree establishing the Family Business Center in the Emirate of Dubai specified the functions and powers of the center, which include providing technical and administrative support to family businesses, ensuring their sustainability and smooth succession of generations in them, preparing a comprehensive strategy to support and develop family businesses in the emirate, and offering innovative options to deal with these companies and enhance opportunities its growth, and submit proposals on policies and initiatives related to enhancing the sustainability and growth of family businesses, including incentives for these companies.

The center also undertakes to support the managerial skills and competencies of partners in family businesses, their founders, members and their children, in a way that ensures the development of their administrative skills, in a way that achieves a smooth succession of leadership and management for these companies, and educates and introduces partners in the family business to government services that are provided to these companies and ownerships, and the legislation applicable to them, and raises their awareness The importance of adopting sound governance systems for the sustainability of their family businesses and family ownership.

The functions of the Family Business Center in Dubai include the preparation of guiding forms for family business incorporation contracts and family charters for these companies, and family ownership contracts, organized in accordance with the provisions of the Federal Decree Law on Family Business, the Law Regulating Family Ownership in the Emirate of Dubai, and the legislation in force in the Emirate.

The center is responsible for providing advice and advice on procedures for establishing family businesses and establishing and organizing family ownership, in accordance with the requirements of its partners, and proposing solutions to problems and obstacles faced by family businesses with government and private agencies, and ways to settle them.

The functions of the Family Business Center in Dubai include coordination with the concerned organizational units in the chambers to propose tools for linking the chambers and family companies to facilitate and regulate their business operations for the benefit of both parties, and to organize and participate in events, exhibitions and conferences in areas related to family businesses, which contribute to achieving the goals Chambers, preparing, studying and analyzing the conditions of family businesses in the Emirate, and preparing the necessary reports in this regard.

The decree called on the concerned government agencies in the emirate and others to fully cooperate with the center and provide the necessary support to it to enable it to carry out the tasks and powers entrusted to it under this decree and the decisions issued pursuant thereto and the legislation in force in the emirate.

It also stipulates that the Chairman of the Board of Directors of Dubai Chambers shall issue the decisions necessary to implement the provisions of this decree, and any text in any other legislation shall be repealed to the extent that it contradicts the provisions of this decree, and shall be enforced from the date of its issuance and published in the Official Gazette.

It is noteworthy that, according to the latest figures, family businesses in the UAE represent about 90% of the total number of private companies in the country in the year 2021, and are among the largest contributors to the national gross domestic product, and the largest source of employment and Emiratisation, and their investments are distributed in various fields, most notably the real estate sector. construction by 22%, retail by 19%, hospitality, tourism and travel by 14%, industry and manufacturing by 10%, technology and electronics by 8%, and shipping and logistics by 7%.

Emirati family businesses have also achieved leadership and high competitiveness at the regional level, as they acquired 25% of the Forbes Middle East list of the 100 most powerful Arab family companies during 2021.

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