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21 April 2024

Dubai Centre for Family Businesses launches new corporate governance toolkit for family businesses

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By E247

The Dubai Centre for Family Businesses, which operates under the umbrella of Dubai Chambers, has developed a new guide aimed at helping family businesses cultivate sustainable growth through the implementation of effective corporate governance. The ‘Corporate Governance Guidelines for Family Businesses’ toolkit focuses on governance structures, governance frameworks, and key regulatory guidelines for family businesses.

The launch of the new toolkit reflects the centre’s ongoing commitment to providing practical guides on the main topics of interest to family enterprises. It follows the publication of six guides during 2023 addressing key areas affecting the continuity of family-run businesses and aims to support their long-term sustainability and competitiveness.

His Excellency Mohammad Ali Rashed Lootah, President & CEO of Dubai Chambers, commented, “Family businesses are an essential part of our economy, contributing significantly to Dubai’s non-oil GDP and employing a substantial proportion of the country’s workforce.”

His Excellency added: “These companies play a vital role in driving economic growth, and we remain committed to encouraging them to follow best practices in corporate governance that support their continuity and ensure the successful transition of leadership between generations. The success of family businesses boosts economic activity and contributes to achieving the goals of the Dubai Economic Agenda (D33), which aims to double the size of the emirate’s economy over the coming decade.”

The new guide comes as a continuation of the centre’s efforts to provide effective tools to support family businesses. It underlines the importance of corporate governance for family businesses, as well as highlighting the main bodies entrusted with family business governance including, family councils, the board of directors, and board committees; key governing documents; and the main requirements for board committees and meetings.

Family businesses account for around 90% of the total number of private businesses in the UAE and contribute around 40% of the national GDP. With an estimated compound annual growth rate of 5.5% in new wealth, the BCG Global Wealth Report 2023 has forecast that private financial wealth in the country will reach US$ 1.3 trillion by 2027, a surge that is expected to drive significant expansion within the family business sector. Supporting the sustainability and growth of family businesses is crucial in ensuring they remain key contributors to the nation’s economy.

The toolkit can be accessed by clicking here.

Launched under the umbrella of Dubai Chambers in May 2023, the Dubai Centre for Family Businesses is entrusted with ensuring the growth and long-term sustainability of family businesses in Dubai. The centre aims to further develop this vital sector and enhance its economic contribution to support the emirate’s future development plans.