DUBAI, UAE – The Dubai Center for Family Businesses, which operates under the Dubai Chambers umbrella, has released a ‘Sample Article of Association for Family Businesses’ to outline effective management, governance procedures and corporate best practices.
This will help promote growth and continuity among family businesses in Dubai.
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.
Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, said: “The Dubai Center for Family Businesses continues to enhance its efforts and services, striving to achieve its strategic goals, ensure sustainable growth among family businesses in Dubai, enhance their contribution to the national economy, and promote governance.”
The ‘Sample Article of Association for Family Businesses’ outlines a set of options for companies to update their contracts and assesses the role these play in mitigating risks associated with disputes, while ensuring business continuity, in line with the long-term vision for both families and companies, and with the specific needs of each company.
The Article of Association takes into account the requirements and conditions of family businesses who are registered as limited liability companies (LLCs).
Family businesses make up around 90 percent of the total number of private companies in the UAE, contributing significantly to Dubai’s non-oil GDP, in addition to employing a large number of workers in the country.
Most family businesses in Dubai are 55 to 70 years old, founded in the 1950s and 1960s.
The majority of these companies are expected to undergo a smooth generational transition in the next five to 10 years.
The Dubai Center for Family Businesses was launched under the Dubai Chambers umbrella in May 2023.