Family-owned businesses ‘make up 90%’ of UAE’s private sector

Businesses in the UAE are known the world over for being progressive trailblazers that, along with the country’s government, have helped turn the once sparse desert landscape into an economic powerhouse.

While big brands tend to make their presence felt in cities such as Dubai and Abu Dhabi, there is another quieter but equally powerful side to the country’s economy where family businesses have a big say.

In a statement released by the Dubai Centre for Family Businesses on state-owned news service WAM, the organisation has highlighted how “family-owned businesses make up approximately 90% of the UAE’s private sector.”

“Family businesses play a critical role contributing significantly to Dubai’s non-oil GDP and employing a substantial proportion of the country’s workforce. A large number of Dubai-based family businesses range between 55–70 years old, having been established during the 1950s and 1960s,” says the centre.

Ensuring sustainability

Interestingly, because the founders of these businesses are getting older, this has prompted the centre to focus more on ensuring sustainability for these companies going forward.

“The majority of these businesses are expected to undergo a generational transition in the next 5-10 years,” says the centre.

This is why the centre has moved to unveil three toolkits for family enterprises, focusing on key areas impacting the continuity, sustainability and competitiveness of  these companies.

More specifically, the toolkits look at “Succession Planning for Family Businesses”, “Family Office” and “Fostering Productivity through Streamlined Family Communication”.

The “Succession Planning for Family Businesses” guide elaborates on best strategies for leadership transition processes. Meanwhile, the “Fostering Productivity through Streamlined Family Communication” toolkit provides guidance on various areas including the value of family meetings, standing agenda items and secretariat procedures. Finally, the “Family Office” toolkit highlights the benefits and structure of a family office, and how to establish a robust governance and operational model for the family office.

Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, said, “The three toolkits that we’ve developed is a continuation of our efforts in providing useful and practical guides on key topics for family enterprises. We are committed to providing all means of support to them. The sustainability of family businesses is important, and we are committed to empowering them with the support they need to achieve continuity and successful transition between generations.”