Dubai Family Business Center, a subsidiary of Dubai Chambers, has released a new guide to aid family businesses in sustainable growth through efficient governance frameworks and regulatory guidelines. This is part of the center’s initiative to offer practical resources on critical topics to family businesses. Last year, the center introduced six guides covering essential areas that affect the continuity, support, and competitiveness of these businesses.
As Director General of Dubai Chambers, Mohammed Ali Rashid Lootah emphasized the significance of family businesses in the economy. He highlighted their contribution to non-oil GDP in Dubai and their role in creating employment opportunities. To ensure their success and longevity, it is crucial to promote best governance practices that facilitate leadership succession across generations while supporting economic growth aligned with Dubai’s goals.
The guide focuses on corporate governance and its significance in family businesses. It outlines key bodies such as the family council, board of directors, and board committees. Additionally, it specifies the requirements for committees and board meetings to ensure effective governance within family-owned enterprises. Family-owned firms constitute approximately 90% of private companies in the UAE and contribute around 40% to the country’s GDP. With a projected compound annual growth rate of 5.5%, private financial wealth in the UAE is expected to reach $1.3 trillion by 2027 according to “World Wealth Report 2023” by Boston Consulting Group.
In conclusion, this new guide from Dubai Family Business Center highlights the importance of effective governance structures for sustainable growth in family-owned businesses. By implementing best practices and following regulatory guidelines, these enterprises can continue to contribute positively to Dubai’s economy while ensuring long-term success for future generations.
