Family businesses in the region need to move away from investing heavily in traditional sectors such as real estate, logistics and hospitality, and instead, consider diversifying into digital assets, e-commerce and new sectors like financial investments, according to Abdulla bin Touq, UAE Minister of Economy.
“Irrespective of their size, family businesses make a significant contribution to the nation’s economic development and help in job creation,” the minister said at the launch of the DIFC Family Wealth Centre on Wednesday.
“This is happening at a time when the UAE has stepped up its efforts to solidify family businesses as key partners in the country’s sustainable development over the next 50 years.”
Family-owned businesses are key drivers of the UAE economy, accounting for a substantial number of jobs, and they boost economic activity through their supply chain ecosystems.
Last year, the UAE launched the Thabat Venture Builder programme that aims to double family-owned businesses' contribution to the nation's gross domestic product to $320 billion by 2032 by preparing them for the future economy.
The programme aims to transform 200 family business projects into major companies by 2030 with a market value exceeding Dh150 billion ($40.84 billion) and annual revenue of Dh18 billion.
The Dubai International Financial Centre (DIFC) announced the creation of the Family Wealth Centre last August, in a push to double the sector’s contribution to the economy by 2030.
It is expected to bring family businesses and ultra-high-net-worth individuals (UHNWI) — people with a net wealth of $30 million or more — from the UAE and the broader Middle East, Africa and South Asia region and beyond to DIFC, and provide access to a range of support services to enable legacy and succession planning.
The centre will open at a time when about Dh3.67 trillion in assets will be transferred to the next generation in the Middle East over the next decade.
Family businesses face many challenges, including digitalisation, longevity of succession planning, sustainability-related issues, technological advancement and intergenerational shift, Mr bin Touq said.
“It is estimated that only 20 per cent of wealth managed by family businesses reach the third generation in the Middle East”, he said.
“These realities confirm the importance of this centre and similar entities as platforms that bring together the sector’s stakeholders to discuss common challenges.”
Family businesses contribute about 80 per cent to the region’s GDP and employ 40 per cent of the workforce, according to Essa Kazim, governor of DIFC.
However, family businesses are facing challenges, such as increasingly complex regulations in the countries where they hold assets, he said.
“Globally, we are experiencing the biggest intergenerational wealth transfer in modern history. Being a relatively young nation, many family businesses here are experiencing this transfer for the first or second time,” Mr Kazim said.
“This brings complexity because they may not have the experience or established processes in place to manage the transfer of their wealth in a manner where the decision-making entities that hold their business and private wealth remain aligned with the family governance principles.”
About 87 per cent of high-net-worth individuals in the Middle East indicated in a survey that they believe their family businesses are set up for efficient wealth transfer to the next generation. Yet only 24 per cent have effective succession planning in place in a manner that properly preserves wealth for future generations, Mr Kazim said.
If intergenerational wealth transfer is not properly planned, the probability of it being lost by the third generation is very high, he said.
Through certification and accreditation schemes operated by the Family Wealth Centre, family businesses and their advisers will be given examples of best practices and standards in respect of family governance and succession planning.
The DIFC has built a legislative framework to assist families in establishing structures for their succession planning. This includes the foundation law, trust law, DIFC Companies regime and the recently enacted Family Arrangements Regulations, Mr Kazim said.
The financial hub enacted DIFC Family Arrangements Regulations to enable more family-owned businesses to start operating from its Family Wealth Centre.
The new regulatory framework will govern how the UAE's regional and global family-owned businesses, and UHNWI and private wealth offices, operate from the financial hub.
DIFC’s existing family offices have the choice to move to the new centre and take advantage of tailor-made services and extra privacy benefits it offers.
Common OCD symptoms and how they manifest
Checking: the obsession or thoughts focus on some harm coming from things not being as they should, which usually centre around the theme of safety. For example, the obsession is “the building will burn down”, therefore the compulsion is checking that the oven is switched off.
Contamination: the obsession is focused on the presence of germs, dirt or harmful bacteria and how this will impact the person and/or their loved ones. For example, the obsession is “the floor is dirty; me and my family will get sick and die”, the compulsion is repetitive cleaning.
Orderliness: the obsession is a fear of sitting with uncomfortable feelings, or to prevent harm coming to oneself or others. Objectively there appears to be no logical link between the obsession and compulsion. For example,” I won’t feel right if the jars aren’t lined up” or “harm will come to my family if I don’t line up all the jars”, so the compulsion is therefore lining up the jars.
Intrusive thoughts: the intrusive thought is usually highly distressing and repetitive. Common examples may include thoughts of perpetrating violence towards others, harming others, or questions over one’s character or deeds, usually in conflict with the person’s true values. An example would be: “I think I might hurt my family”, which in turn leads to the compulsion of avoiding social gatherings.
Hoarding: the intrusive thought is the overvaluing of objects or possessions, while the compulsion is stashing or hoarding these items and refusing to let them go. For example, “this newspaper may come in useful one day”, therefore, the compulsion is hoarding newspapers instead of discarding them the next day.
Source: Dr Robert Chandler, clinical psychologist at Lighthouse Arabia
How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
IF YOU GO
The flights: FlyDubai offers direct flights to Catania Airport from Dubai International Terminal 2 daily with return fares starting from Dh1,895.
The details: Access to the 2,900-metre elevation point at Mount Etna by cable car and 4x4 transport vehicle cost around €57.50 (Dh248) per adult. Entry into Teatro Greco costs €10 (Dh43). For more go to www.visitsicily.info
Where to stay: Hilton Giardini Naxos offers beachfront access and accessible to Taormina and Mount Etna. Rooms start from around €130 (Dh561) per night, including taxes.
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
The specs: 2018 Opel Mokka X
Price, as tested: Dh84,000
Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
Fuel economy, combined: 6.5L / 100km
More from Rashmee Roshan Lall
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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