The Future of Family Businesses in the UAE: Insights into the Enacted Family Business Law


Family businesses have long been an integral part of the United Arab Emirates’ (UAE) economy, contributing significantly to its growth and development. Recognizing the importance of these enterprises, the UAE government took a significant step forward by enacting the Family Business Law. This comprehensive legislation aims to provide a solid legal framework for family businesses, addressing key challenges and ensuring their long-term success and continuity. In this article, we delve into the implications of the Family Business Law and explore its impact on the future of family businesses in the UAE.

Recognition of Family Businesses:

The enactment of the Family Business Law reflects the UAE government’s commitment to supporting and nurturing family businesses. It recognizes the unique nature of these enterprises and their contribution to the national economy. By providing a legal framework specifically tailored to family businesses, the law highlights the importance of this sector and seeks to bring cohesion, transparency, and stability to their operations.

Governance and Regulation:

One of the key aspects addressed by the Family Business Law is the governance and regulation of family businesses. The legislation establishes guidelines and best practices for corporate governance, promoting transparency, accountability, and effective management. It emphasizes the importance of implementing proper internal control mechanisms, such as clearly defined roles and responsibilities, decision-making processes, and succession planning.

Smooth Succession Planning:

Succession planning is a critical element for the long-term viability of family businesses. The Family Business Law aims to facilitate smooth transitions by providing guidelines and safeguards for successful intergenerational transfers. The legislation promotes the preparation of clear and comprehensive succession plans, ensuring a transparent process that minimizes potential disputes and disruptions. This not only preserves the family legacy but also enhances overall business sustainability.

Protection of Family Members:

The Family Business Law also focuses on protecting the interests and rights of family members involved in the business. It ensures fair treatment, equitable opportunities, and safeguards against potential conflicts of interest. The legislation provides mechanisms to address conflicts and disputes among family members, encouraging dialogue, mediation, and other alternative dispute resolution methods. Additionally, it promotes the establishment of family councils or boards to enhance communication and collaboration within the family business structure.

Access to Financing and Capital:

Ensuring access to financing and capital is crucial for the growth and expansion of family businesses. Recognizing this, the Family Business Law encourages financial institutions and investors to support family businesses through tailored financial products and specialized services. By establishing a favorable environment for obtainng funding, the legislation aims to stimulate the growth and competitiveness of family businesses in the UAE.

Professionalization and Knowledge Transfer:

The enactment of the Family Business Law also promotes the professionalization of family businesses. It recognizes the importance of acquiring specialized skills and knowledge required for effective business management and growth. The legislation encourages family members to seek relevant education, training, and development opportunities to enhance their capabilities. Furthermore, it recognizes the value of external expertise and the role of non-family professionals in providing guidance and strategic advice to family businesses.


The Family Business Law in the UAE marks a significant milestone in promoting the sustainability and growth of family businesses in the country. By addressing governance, succession planning, protection of family members, access to financing, and professionalization, the legislation is designed to enhance the long-term viability and competitiveness of family businesses. It provides a solid legal framework that supports the unique dynamics of family-owned enterprises, fostering their contribution to the UAE’s economy and preserving their legacy for future generations. With the enactment of this law, the future of family businesses in the UAE appears poised for continued success and prosperous growth.

“Disruption is a day-to-day feature of business that shows up more frequent and intense in Family Businesses. Need expert Family Business deals, disruption, strategy and complexity management advisory? Better Ask Handle!”

Muhammad Fadel,

Managing Partner, Strategy & Complexity

“Potentially originating from a dozen+ causes, conflict is unavoidable in Family Businesses and, if not properly resolved, may end up with a total destruction of the business. Need expert Family Business conflict resolution advisory? Better Ask Handle!”

Ikhlas Thabet,

Managing Partner, Client Relations

“With the direction to enact UAE’s Family Businesses Law, Handle dedicates the majority of its activities and expertise to help UAE Family Businesses thrive for 50+ years. Need expert Family Business advisory? Better Ask Handle!”

Mohamed Abu El-Makarem,

Principal Advisor & CEO

“The legal intricacies on UAE’s Family Businesses add more and more pressures on the overall Family Business performance and threatens sustainability. Need expert Family Business legal advisory? Better Ask Handle!”

Mohamed El Murshidi,

Managing Partner, Legal Affairs

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