Family Business Law

Family businesses are undoubtedly prominent participants in the global economy. In the UAE in particular, they are considered the backbone of the business community and significantly contribute to the country’s GDP and economic stability. According to the Gulf Family Business Council Report, 1 trillion USD is due to transition to the successive generations in the next decade. However, research has revealed that 95% of the companies do not succeed to survive through the next generation due to several factors. Indeed, the continuity of the family business and the retention of wealth within the boundaries of the same family constitute a key concern that needs to be dealt with. In this course, we will tackle the following topics: 1) What is a family business? 2) The importance of a family business to the global and local economies; 3) The challenges raised by the transition of the family business to the next generations; 4) Succession planning strategies which may be adopted within the legal and regulatory framework in the UAE, in particular: a. Family business law no. 9 of 2020 which regulates family-owned businesses in Dubai and the new Abu Dhabi family business ownership governance law of 2022; b. Corporatization of family business; c. Good governance as an absolute necessity; d. Trusts and foundations recognized in DIFC and ADGM; e. Family offices. 5) Disputes within family businesses and pre-emptive measures to be adopted to avoid disputes.