Abu Dhabi launches first-of-its-kind Family Business Index

The Abu Dhabi Department of Economic Development (ADDED) and United Arab Emirates University (UAEU) have inked a Memorandum of Understanding (MoU) to establish the Abu Dhabi Family Business Index, the first initiative of its kind in the region.

This collaboration aims to strengthen the emirate’s economic intelligence and research infrastructure, enabling insights into economic diversification and growth.

Based on various metrics, the Abu Dhabi Family Business Index will rank family-owned and controlled businesses within the emirate.

The index will cover…

Key indicators included in the index will cover revenue, industry and employment figures. Other indicators include governance structures, leadership gender ratios, succession planning, longevity, and overall contribution to socio-economic development.

This initiative is expected to hold significant value for investors, policymakers, academics and the public.

The index will provide a deeper understanding of the role and impact of family businesses on the economy and society, potentially shaping future strategies and decisions.

Additionally, it aims to support efforts to increase the contribution of family businesses to economic diversification and growth.

Aligns with UAE’s family business governance law

The MoU signing comes on the heels of Abu Dhabi’s 2022 family business ownership governance law, which aimed to enhance the legislative ecosystem further.

This law facilitates a more flexible and sustainable economic model, promoting smooth transitions to successive generations in line with best international governance practices.

Commenting on the development, Rashed Abdulkarim Al Blooshi, Undersecretary of ADDED, highlighted the significance of this strategic cooperation between ADDED and UAEU, stating it as a major step forward in propelling Abu Dhabi’s research and development efforts.

“The Abu Dhabi Family Business Index will play a pivotal role in developing the business landscape by providing valuable insights about this significant segment of our socio-economic fabric,” Al Blooshi remarked.

“Family-owned businesses in Abu Dhabi, equipped with decades of experience, continue to contribute positively to economic diversification, job creation, and the transformation towards an innovation-driven economy. We believe the index provides a suitable mechanism to accelerate our growth trajectory.”

Academic support from UAEU

Al Blooshi further emphasised the impactful results this collaboration promises to deliver, achieved by combining UAEU’s academic expertise and research capabilities with ADDED’s knowledge and mandate as a catalyst for economic growth and diversification. “This collaboration with the UAE’s national university is key to ensuring that our future is driven by research, knowledge transfer, and cooperation,” he concluded.

The agreement extends beyond the index, further enabling cooperation in evidence-based economic and financial research fostering knowledge sharing, and facilitating joint research activities, training workshops and research publication sharing.

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