The United Arab Emirates (UAE) is on the rise, and it’s not just their impressive skyscrapers that are grabbing attention. This Middle Eastern nation is strategically positioning itself as a global hub for family businesses. Many of these businesses have been operating for generations, preserving cultural heritage and values. They contribute significantly to employment, providing jobs for both locals and expatriates. By investing in various sectors, from real estate to retail, family businesses drive economic growth. Their long-term perspective fosters stability and resilience, even during economic fluctuations. Additionally, family businesses often engage in philanthropy, supporting education, healthcare, and social causes. Some UAE family businesses have expanded internationally, enhancing the country’s reputation.
Let’s delve into the compelling reasons why the UAE is the perfect option for your family businesses and entrepreneurial dreams.
Why UAE for family businesses?
Geography: Imagine a place that perfectly blends East and West, offering easy access to European, Asian, and African markets. That’s the UAE’s geographical advantage, making it a prime location for global trade and logistics. But it doesn’t stop there. The UAE boasts a powerful financial sector with low taxes and a focus on privacy, attracting investment and making it a magnet for financial flow.
Family Business Friendly: Now, let’s talk about what truly sets the UAE apart: its understanding and appreciation for family businesses. With a significant chunk of their GDP coming from family-owned ventures, the UAE government actively supports this sector. They offer a business-friendly climate, including recently allowing family businesses to list on the stock exchange, and provide guidance on tax and succession planning – crucial aspects for any family-run company.
Financial Powerhouse: The UAE’s financial sector thrives due to a combination of factors. Minimal taxation and a focus on privacy make the UAE an attractive destination for businesses and individuals seeking to minimize their tax burden and protect their financial information. This, in turn, encourages foreign investment and capital flow, which fuels economic growth. While fostering a welcoming environment, the UAE also maintains a strong regulatory framework overseen by the Central Bank, ensuring the stability and security of the financial system. These factors combined solidify the UAE’s position as a financial hub in the Middle East and a major player on the global investment scene.
Stability and Safety: The UAE’s ambitions go beyond just creating a supportive environment. They’re aiming to become the go-to destination for global family businesses. By establishing legal and institutional frameworks that rival established hubs like Switzerland, they’re offering stability and a safe space for family businesses to flourish.
Some success stories of family businesses in the UAE
Al Ghurair Group: Founded in 1960, this family-run conglomerate is a prime example of the UAE’s success in nurturing family businesses. They boast a diverse portfolio, including the first shopping mall in the MENA region (Dubai’s Al Ghurair Centre) and ventures in packaging, building materials, and investments.
Easa Saleh Al Gurg Group (ESAG): Another long-standing fa mily business, ESAG has been a major player since the 1960s. Originally focusing on trading partnerships with international brands, they’ve cleverly diversified into retail, building materials, and even industrial sectors. Their success lies in a combination of strategic acquisitions, organic growth, and forming key partnerships with companies like Unilever and Siemens.
Sharjah Entrepreneurship Center (SEC): This isn’t a single-family business, but it’s a great example of the UAE’s support for family-run ventures. Launched in 2016 by the Sharjah government, the SEC specifically focuses on empowering family businesses. This initiative has fostered the growth of numerous family businesses in Sharjah, contributing significantly to the emirate’s economic diversification.
Magnati Group: Founded in 2012 by the Nahdi family, Magnati Group is a prime example of a recent success story. This family-owned business focuses on real estate development and construction, specializing in high-end residential and commercial properties. Their rapid growth can be attributed to their focus on innovation and sustainability in their projects. They’ve also leveraged the UAE’s position as a regional hub to attract international investors and partners, further propelling their success.
The UAE’s transformation is still unfolding, but one thing’s for sure: it’s becoming a top spot for family businesses. With its unique blend of opportunity, stability, and cultural richness, the UAE could be your family business’s next big move. To explore more about the vibrant UAE community and its latest happenings, please check our Insights page.
