Family Businesses Employ 80% of Abu Dhabi Workforce, Says Top Official

Family businesses play a critical role in Abu Dhabi’s economy, employing 80% of the workforce in the UAE capital, a senior official from the Abu Dhabi Chamber revealed during Abu Dhabi Business Week on Thursday.

Shamis Ali Al Dhaheri, the second vice-chairman of the Abu Dhabi Chamber, emphasized the importance of supporting family-owned enterprises, which form the backbone of the emirate’s private sector. Addressing a key issue, Al Dhaheri highlighted succession planning as a recurrent topic in high-level discussions.

“Succession is a core issue among family businesses,” he said. “I urge family owners to explore and leverage laws that bring significant advantages in succession planning.”

Launch of the Family Business Council

To address these challenges, the Abu Dhabi Family Business Council was officially launched on Wednesday. The council aims to assist family-owned businesses in identifying priorities, overcoming challenges, and implementing innovative solutions to secure their future.

The council’s first initiative focuses on guiding businesses through succession planning and preparing the next generation of leaders. Local authorities are also working to educate younger family members on effective partnership and shareholder practices, offering programs designed to produce positive results.

“The establishment of the Family Business Council is a strong statement of the government’s commitment to supporting these enterprises,” Al Dhaheri added.

Economic Impact of Family-Owned Businesses

Family businesses account for a significant share of the UAE’s private sector economy. According to data from the Dubai Chamber, 90% of private companies in the country are family-owned, employing more than 70% of the private sector workforce. In Abu Dhabi, these companies are key contributors to economic growth and private sector employment.

Investing in the Future

Khalid Al Fahim, a board member of the Abu Dhabi Chamber, noted that family businesses are increasingly investing in startups and technology firms to adapt to evolving market demands. “Family businesses have always been involved in driving the economy forward,” he said.

By embracing advancements and maintaining a focus on innovation, these enterprises are ensuring their continued relevance and contribution to the UAE’s economic progress.

Building for Generational Success

The Abu Dhabi government’s initiatives reflect a long-term vision for supporting family businesses. Programs aimed at enhancing governance, fostering collaboration, and guiding succession planning underscore the importance of these entities in the UAE’s future.

The Abu Dhabi Family Business Council is expected to play a pivotal role in helping family-owned enterprises navigate the complexities of leadership transitions while ensuring sustainable growth and stability.