Dubai: In line with the other initiatives launched to help family businesses in Dubai thrive, the Dubai Centre for Family Businesses released a ‘Sample Article of Association for Family Businesses’ on Wednesday.
The Sample Article of Association for Family Businesses can be used as a starting point for families who wish to draft a new Article of Association for Family Businesses or revive their existing ones to align with the family business vision and incorporate sections of the family constitution into the Sample Article of Association for Family Businesses.
The Centre, launched in May 2023 under the umbrella of Dubai Chambers, expects that this document would help families running businesses in streamlining management and governance procedures, as well as corporate best practices.
Family businesses are crucial to Dubai's economy, making up over 90 per cent of the entire private sector in the emirate. The sector makes up a huge chunk of Dubai's non-oil GDP.
Given that most family businesses in Dubai were founded in the 1950s and 1960s, a generational shift is expected over the decade. The newly released 'Sample Article of Association' is expected to help promote growth and continuity among family businesses.
This release is a part of the wider plans to help promote the growth and smooth transition of these family-led businesses. For instance, in December 2023, the centre developed three toolkits for family enterprises - Succession Planning for Family Businesses, Family Office and Fostering Productivity through Streamlined Family Communication.
Additionally, last month, the UAE Ministry of Economy mandated that UAE family businesses register on a new Unified Family Businesses Registry as part of four new cabinet resolutions aimed at enhancing the governance of these companies in the country.
