In Abu Dhabi, a new regulation on family business ownership governance has been enacted.

1. IN ABU DHABI, A NEW REGULATION ON FAMILY BUSINESS OWNERSHIP GOVERNANCE HAS BEEN ENACTED. THE NEW LAW’S PURPOSE IT AIMS TO IMPROVE THE LEGAL ENVIRONMENT FOR FAMILY-OWNED ENTERPRISES BY IMPLEMENTING A MORE FLEXIBLE AND LONG-TERM ECONOMIC MODEL BASED ON WORLDWIDE BEST PRACTICES. THE BILL ALSO AIMS TO BOOST FAMILY BUSINESSES’ CONTRIBUTION TO THE ECONOMY’S DIVERSITY AND GROWTH. DISPUTE RESOLUTION ANY DIFFICULTIES ARISING FROM A FAMILY PROPERTY CONTRACT MUST BE ADDRESSED BY A SPECIAL JUDICIAL COMMITTEE COMPRISED OF EXPERTS IN LEGAL, FINANCIAL, AND FAMILY MANAGEMENT AREAS, WITH THE CONFIDENTIALITY AND PRIVACY OF ANY DISPUTE, AS WELL AS QUICK RESOLUTION PROCESSES, GUARANTEED. ANY PROVISION OF OTHER LEGISLATION THAT CLASHES WITH THE LAW’S PROVISIONS IS SIMILARLY REPEALED. IN DUBAI, THERE IS A LAW THAT GOVERNS FAMILY-OWNED BUSINESSES. ON AUGUST 13, 2020, THE RULER OF DUBAI SIGNED LAW NO. (9) OF 2020 REGULATING FAMILY OWNERSHIP (THE “LAW”). THE LEGISLATION PERMITS FAMILY MEMBERS TO ENGAGE IN A LEGALLY BINDING AND NOTARIZED CONTRACT (THE “FAMILY PROPERTY CONTRACT”) THAT PROVIDES FOR THE COMMUNAL OWNERSHIP AND ADMINISTRATION OF FAMILY-OWNED PROPERTY FOR THE BENEFIT OF THE PARTIES TO THE FAMILY PROPERTY CONTRACT, AS WELL AS THEIR SUCCESSORS. Family members can adjust the conditions of the Family Property Contract as they see fit under the law. It will also allow them to address a variety of areas of the family’s communal enjoyment of the property, such as giving particular proportionate ownership requirements relating to income and capital rights, as well as administration and management. Method of acquiring a family property interest The law also allows for the acquisition of interests in the underlying family property by transferring an individual family member’s rights in the Family Property Contract to heirs through inheritance or specific bankruptcy laws. IN DUBAI, DISPUTES OVER FAMILY PROPERTY CONTRACTS ARE RESOLVED Problems over Family Property Contracts are addressed by a special judicial committee comprised of legal, financial, and family management professionals, ensuring confidentiality and privacy while resolving conflicts fast. Any provision of other laws that clashes with it are also repealed by the law. How may lawyersindubai Attorneys and Legal Consultants help you? assets and planning for the long-term viability of their companies. In this sector, our firm, Family Business Practice, provides wealth preservation solutions for large, complex organizations. Please let us know if there is any way we can help you in this area, and we will be happy to do so. Lawyersindubai chosen specialized Family Business Practice assists business families in protecting their Contact Info DUBAI | United Arab emirates +971 50 5071820 leads@lawyersindubai.com +971505071820