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Thursday, April 18, 2024
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New governance guidelines issued for family businesses

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A new set of governance guidelines has been released to support family businesses and assist them in designing and developing governance frameworks to ensure a smooth succession process and business continuity.

This guide is from the Dubai Family Business Centre, which operates under the umbrella of the Dubai Chamber of Commerce.

The move is part of a comprehensive plan approved by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, at the Fifth Session of the Dubai Council in May 2022. In supporting systems and processes, ensuring the sustainability of the family business for at least the next 100 years.

Best Practices

The guidance draws on international best practice and adapts it to local needs. Their publications are part of a comprehensive program implemented by the Center in partnership with the Dubai Chamber of Commerce and the Government of Dubai.

The Governance Guide provides detailed advice on the value of developing a family constitution (also known as a “family charter” or “family agreement”) and provides practical tips, tools and insights to support business families in establishing effective governance structures.

Sustainability of family business

Abdul Aziz Abdulla Al Ghurair, Chairman of the Dubai Chamber of Commerce, commented: “The launch of the new Family Business Governance Code Another important step forward in sustainability, growth and continuity. The principles outlined provide a comprehensive, integrated vision that will help companies develop effective strategies for smooth transitions between successive generations of leadership and promote the idea of ​​good governance.”

solid foundation

The guide and its accompanying tools are designed to help families clearly define the complex roles and relationships of their business, and find a healthy middle ground where complex issues can be discussed in an environment of trust and transparency.

The principles and recommendations contained in the guide are also highly relevant to experts involved in supporting the design and adoption of sound governance structures and practices in family businesses.

Family-owned businesses account for approximately 90% of the UAE’s private sector, contribute significantly to Dubai’s non-oil GDP, and employ a significant proportion of the emirate’s workforce. Many of Dubai’s family-owned businesses were established in the 1950s and 1960s and are expected to undergo a generational transition over the next five to ten years.

The Dubai Chamber is committed to enhancing the competitiveness of family businesses, protecting their interests and investing in their leaders to ensure their sustainable future, recognizing their important contribution to the D33 objectives of the Dubai Economic Agenda, which aims to Increase private sector investment in development projects to reach AED1 trillion (US$270 billion) by 2033.

sustainability and growth

Established in May 2023 under the leadership of the Dubai Chamber of Commerce, the Dubai Family Business Center aims to be the entity that ensures the sustainable development and growth of family businesses in Dubai, develops key sectors and increases their economic contribution. In turn, it will support the future development plans of the emirate.

The center aims to support the family business community, enhance its ability to keep pace with global developments, and build confidence in the emirate’s business environment to foster sustainable economic growth. — trade arab news agency

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