In Dubai, family businesses are synonymous with economic stability and growth. Up to 90% of private companies in the UAE are family businesses, employing more than 70% of the private sector’s workforce and contributing around 40% to our national GDP.

Leading a family business successfully requires careful stewardship. Facilitating a smooth generational transition to preserve the family legacy while strengthening governance and keeping pace with global developments can prove complex, as there are many unique intricacies involved in family business management. Take, for example, informal governance structures. These can lead to internal disputes and inefficiencies, while divergent goals between older and younger generations may hinder strategic decision-making.

Dubai’s Innovative Approach

Recognising the critical role of family businesses in economic development and job creation, the Dubai Centre for Family Businesses was established under the umbrella of Dubai Chambers in 2023. The centre is dedicated to ensuring the sustainability and growth of family businesses through the promotion of governance and succession planning. By fostering innovation and best practices, it ensures long-term sustainability across diverse industries, cementing the role of family businesses in Dubai's economic growth.

The Dubai Centre for Family Businesses complements the UAE’s Family Business Governance Law, which was enacted in 2022 to provide a legal framework for the regulation of family-owned businesses. This pivotal piece of legislation includes mechanisms for dispute resolution, succession planning, and the protection of family assets, enabling family members to formalise ownership and governance agreements and reducing the potential for disputes.

As a key advocate for family businesses, the centre has partnered with globally renowned educational institutions to deliver world-class training, including the Dubai Family Business Management Programme and the Next-Gen Family Businesses Training Programme. These impactful programmes are designed to equip the next generation of family business leaders with the specialised knowledge and skills required to lead a family business effectively.

Fostering Effective Governance

Establishing clear governance processes helps manage the intricacies of wealth transfer and reduces unnecessary friction. Family businesses are encouraged to adopt proven corporate governance practices to foster transparency, accountability, and operational efficiency. Effective governance is a critical step in aligning diverse interests of stakeholders with strategic business goals.

According to a Capgemini World Wealth Report published in 2024 , single-family offices have grown by 200% during the past decade. These can serve as powerful tools for family businesses, providing a central hub to oversee the management of investments and real estate, recordkeeping, philanthropy, and wealth transfer, all in line with the family’s values and vision.

Strong governance mechanisms contribute to long-term sustainability and are vital to the process of wealth transfer and ensuring a smooth transition of leadership.

Smart Succession Planning

In Dubai and the wider Middle East, many families face their first intergenerational wealth transfer. They will have to navigate this transition against a backdrop of evolving social norms, managing both Sharia and non-Sharia law as well as international inheritance and tax laws. According to wealth analytics firm Kidbrooke, wealthy families across the Middle East will pass AED 3.67 trillion ($1 trillion) to the next generation during the coming decade.

Existing family heads are increasingly seen not just as owners, but also as stewards that nurture a future-oriented and agile family enterprise in line with the family’s values. They are looked to for guidance in ensuring the next generation of leaders have the right skills, mindset, knowledge, and education needed to lead the family business into the future. Addressing this area, the centre developed a detailed guide to Succession Planning for Family Businesses that outlines optimal strategies to achieve a smooth leadership transition.

The implementation of effective succession plans creates stability and reassurance for other family members and stakeholders. Planning at an early stage allows family businesses to leverage founders as mentors while developing the role of younger generations over time.

A Blueprint for Success

Dubai's proactive approach provides an actionable blueprint for governments across the globe seeking to empower family enterprises. The main takeaway is providing institutional support. Governments can establish dedicated institutions to provide resources and guidance tailored to family businesses. Education and training are also key. Programmes that educate family members on best practices in governance, leadership, and innovation are central to strengthening resilience within family enterprises.

By supporting family businesses with robust policies and forward-thinking strategies, Dubai is not only preserving its economic heritage, but contributing to a thriving and dynamic future. For other economies, the adoption of similar frameworks can empower family enterprises to transcend obstacles to growth and drive prosperity for generations to come.

I am confident that the family business sector will continue to serve as the beating heart of Dubai’s economy, advancing sustainable economic development and bringing us closer to achieving the Dubai Economic Agenda (D33) goal of doubling the size of Dubai's economy within a decade.

As a strategic partner of the World Government Summit 2025, Dubai Chambers remains committed to fostering international cooperation and promoting innovative solutions that unlock mutual growth. We encourage countries around the world to draw inspiration from Dubai’s approach to strengthening its family business ecosystem, which we believe can serve as an effective model to support the sector’s enduring success on a global scale.