What’s Sheikh Maktoum's new committee for family business disputes in Dubai?

In a significant move towards maintaining the prosperity and harmony of family businesses in Dubai, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, has established a 'Family Business and Family Ownership Disputes Settlement Committee.'

This initiative, guided by the vision of Sheikh Mohammed bin Rashid Al Maktoum, aims to preserve the continuity and reputation of family businesses during dispute resolutions, a critical element in Dubai's economic landscape.

Now, if you’re a bit unsure on family businesses and the dispute settlement process, in short; A family business is usually one in which more than half the shares are controlled by members of the same family. It can also be a business that has been passed between generations and usually dispute settlements in such cases require the assistance committees.

So, let us break down just everything you need to know about this new committee in Dubai!

The significance of family business’ committees in Dubai

Dubai places a strong emphasis on fostering the growth and sustainability of family-owned businesses, recognizing their pivotal role in the emirate's economy. And in case you didn’t know, over 70% of businesses in the UAE are family owned!

So, the goal of this committee is to create an environment that enables these businesses to thrive across generations, contributing to Dubai's economic ambitions and its position as a global business hub.

The committee's composition and purpose

The 'Committee for Dispute Settlement of Family Businesses and Ownership' is made up of financial experts that collaborate and work alongside with judges, to provide specialised judicial expertise to family businesses during their disputes.

So, what are the committee’s primary functions, you may ask?

The committee’s primary function is to address and resolve disputes in businesses while ensuring the business's operations, reputation, and financial health remain intact throughout the dispute resolution process.

Taresh Eid Al Mansouri, who is the President of Dubai Courts, explained that the committee's establishment is a testament to Dubai's commitment to a just society and fair judiciary. It solidifies the emirate's global legal and judicial standing concerning family business development while enhancing economic and social stability.

Professor Saif Ghanem Al Suwaidi, who is the Secretary General of the Dubai Judicial Council, also underlined that the committee would help enforce laws governing family businesses and family ownership in Dubai. Its focus is on swift dispute resolution, balancing justice and the preservation of economic interests.

Key details of the committee

The committee's structure includes a chairman, who must be a judge of no less than an appeal judge. Their responsibilities cover a wide range of disputes, from family ownership contracts to family business partnerships.

For disputes that can be resolved amicably, the resolution mandates referral to the Family Members Council before the committee's involvement.

The committee has the authority to take necessary measures to preserve the continuity and reputation of family businesses during the dispute resolution process.

Ensuring fairness and oversight

In line with the rules of justice, any decision allows for appeals of the committee's decisions and rulings before the competent court within Dubai Courts. These decisions will be following strict procedures.

The committee is also obligated to submit regular reports to the Ministry of Economy for periodic review and to ensure all things are running smoothly and efficiently.

Building on a strong foundation

This initiative builds upon Sheikh Mohammed bin Rashid Al Maktoum's earlier decree that established the Family Business Centre, which aims to support the sustainability and growth of Dubai's family-owned businesses, ensuring a smooth transition of power and continued prosperity.

In sum, Sheikh Maktoum's new committee is a vital step towards preserving the integrity of family businesses in Dubai, reinforcing the emirate's commitment to a just legal framework and the stability of its economy.

Impressive, isn’t it?

If you are keen to find out more about Dubai’s economy shaping itself - take a read at our latest blog here.

Want to know more about family businesses in the UAE? Check out our Taking Care of Business podcast on family forums and businesses here.