Family Business Challenges and their Regulations under UAE Family Business Law

Abstract

The United Arab Emirates (UAE) has created a unique, comprehensive, and flexible legal framework for regulating the ownership and governance of family companies. This article examines how Federal Decree-Law No. 37 of 2022 on family businesses (the Family Business Law) addresses the main challenges faced by these companies. The article begins with an overview of the various definitions of family businesses, followed by a description of the definition adopted by the Family Business Law. The article then explores how the new law helps family businesses navigate the complexities of growth while preserving family control and the family’s long-term vision. The article further discusses the challenges associated with business continuity and analyses how the Family Business Law establishes robust corporate governance measures to support their long-term continuity and facilitate their transfer across generations.