Family businesses will remain front and centre in Abu Dhabi’s growth story

At a time of rapid economic development, Abu Dhabi’s resilient and diversified economy has established the emirate as a hub for business and investment.

When we meet business leaders and investors, a key question is: ‘How Abu Dhabi plan to sustain the growth trajectory of the soaring ‘Falcon Economy’’?

It is vital to recognise the pivotal role family-owned businesses and private sector, in general, play in shaping our economic landscape and the huge opportunities they provide for driving prosperity. These enterprises are not just a cornerstone of our economy, they reflect our emirate’s deeply rooted values and long-term socio-economic vision.

Globally speaking, some of the world’s biggest companies are family-owned and they have demonstrated their potential as significant economic drivers. The 2023 EY and University of St. Gallen Family Business Index indicates that the largest 500 family businesses are growing faster than the global economy, collectively generating $8.02 trillion in revenue and employing 24.5 million people.

In ‘The Capital of Capital’, family-owned businesses have been a fundamental pillar of the economy, constituting 90% percent of our private sector, which is witnessing a stellar and consistent growth with over 35% rise in less than a decade.

Family-owned businesses in Abu Dhabi represent around 50% of companies in the construction sector; 60% in the finance sector; 80% in the wholesale trade sector; and 70% in the transportation sector. Supported by private sector and family businesses, Abu Dhabi non-oil sectors are progressing, recording a growth of 6.6% in Q2-2024 to contribute over 55% of total real GDP, while sectors like transportation and storage, finance and insurance, and construction grew by double digit.

Beyond traditional wealth management, family businesses are expanding their influence, emerging as key investors in various sectors and innovative technologies, reflecting the Emirate’s supportive business environment, which has carefully nurtured the growth of family-businesses for generations.

At Abu Dhabi Chamber of Commerce and Industry, our programmes and initiatives focus on providing direct support for SMEs and family businesses such as new public -private partnerships, better access to new markets, and enhanced business services. These steps aim to ensure that the emirate is an ideal destination where businesses can flourish.

In 2022, Abu Dhabi issued the family business ownership governance law to enhance our legislative ecosystem by implementing a more flexible and sustainable economic model. This initiative aligns with best international governance practices and facilitates smooth transitions across generations ensuring that family businesses continue to thrive in today’s economy.

Focus squarely on family businesses

As we anticipate the inaugural Abu Dhabi Business Week (ADBW), it is crucial to reaffirm Abu Dhabi’s commitment to cultivating a dynamic and business-friendly economy for all.

During the week, the ADCCI will host the Family Business Forum, offering a glimpse into the inner workings of successful family enterprises and fostering dialogue among distinguished leaders and industry experts.

This forum will offer a suitable platform to enhance an open, transparent, and constructive dialogue with family-owned businesses to discuss challenges including succession planning and transition to new generations, governance and decision-making, access to capital, enhancing innovation and competitiveness, tax benefits, and how regulatory frameworks and government’s initiatives can play a role in developing a proper succession.

Renowned experts and leaders of family offices, locally and globally, will speak at the Family Business Forum to share their insights on how family-owned businesses surmounted challenges to build successful and thriving conglomerates, equipped with decades-long experience, resilience, and proactive approach to address new trends and changes in the marketplace.

By bringing the public and private sectors together, ADBW will empower businesses across various industries and open new avenues for collaboration.

Enabled by Abu Dhabi’s unique model of smart partnerships between public and private sectors, our family businesses and key players in the private sector are poised to write a new chapter in the long history of collaborating with the public sector to drive economic growth and sustainability while effectively balancing global partnerships with local investments.

By fostering meaningful discussions about the necessary strategies for sustainable growth, succession planning, and effective governance, the Family Business Forum at ADBW will shape a roadmap for family businesses to thrive, paving the way for a new generation of business leaders. This is vital in reinforcing Abu Dhabi’s successful track record in empowering entrepreneurs and driving the growth of businesses of all sizes.

Together, we can ensure that family businesses remain at the forefront of Abu Dhabi’s economic transformation and lead us towards an innovative and prosperous future.