DUBAI, July 15 (Xinhua) -- Family businesses in the United Arab Emirates (UAE) are witnessing rapid growth, driven by supportive government policies and modern legislative frameworks that aim to enhance their sustainability and contribution to the national economy.
According to data from the UAE Ministry of Economy and Tourism, the number of registered family businesses increased from around 15,000 in 2022 to over 17,000 by mid-2025, marking a growth of more than 13 percent in just two years.
Currently, family-owned enterprises contribute approximately 40 percent to the UAE's non-oil GDP and represent nearly 90 percent of private sector companies in the country, underscoring their critical role in job creation and economic diversification.
To support long-term continuity, the UAE has introduced new legislation over the past two years, most notably the Family Business Law, which came into effect in early 2023. The law provides a clear legal framework to guide intergenerational ownership transfers, corporate governance, and the transformation of family businesses into private joint-stock companies-while preserving their familial character.
Noura Al Ahmed, CEO of a family-owned food company, told Xinhua that the biggest challenge facing family businesses is "smooth succession planning." She noted that several regional businesses have struggled due to the absence of clear administrative and financial inheritance strategies.
"Balancing family relations with institutional business requirements is a constant challenge," Al Ahmed said. "But it can be overcome through training and governance. The current regulatory environment in the UAE is very encouraging, especially with the new laws and government support for corporate transformation."
Economist Hazem Al Nuaimi said that UAE family businesses have "evolved significantly thanks to state policy, and are now more prepared for regional and international expansion."
"The flexibility of family enterprises, combined with the UAE's stable business environment, positions them as key drivers of economic growth in the coming years," said Nuaimi.
Estimates indicate that nearly 47% of family businesses in the UAE have already initiated the transition of management to the second and third generations, signaling a shift toward more institutional thinking.
Abdullah Al Muhairi, general manager of a Dubai-based family business, said, "We successfully restructured our company last year by leveraging the new regulations, and we're now preparing to expand into new sectors."
Al Nuaimi emphasized that supporting family businesses is a vital part of achieving the UAE Vision 2031, particularly regarding economic diversification and private sector engagement. "If these businesses continue to institutionalize, they will become a cornerstone of competitiveness and a magnet for high-quality investment," he said. ■
