Synopsis of new UAE Family Business Law

A new UAE Federal Decree Law No.37 of 2022 on Family Businesses (the "Law") was issued in October 2022 and comes into force on 11 January 2023.

The Law aims to:

• establish a comprehensive legal framework for the ownership and governance of family businesses in the UAE, including by facilitating transfers between generations;
• support the continuity of family businesses and enhance their role in the private sector;
• provide mechanisms for the resolution of family disputes; and
• enhance the contribution of family businesses to the economy and competitiveness of the UAE.

Some of the highlights of the new Law include the following:

• a flexible, opt-in regime, based on voluntary registration;
• open to UAE businesses majority-owned by a single family (this concept is to be further defined by Cabinet Resolution);
• special benefits and incentives may be granted at federal and emirate level;
• different share classes are permitted – this is a ground-breaking development for onshore LLCs; and
• bespoke dispute resolution processes specific for family businesses.

We have prepared an in-depth special briefing, designed to support and inform our clients about the new Law, and its potential impact.

Click here to learn more