SEDD implements SEC decision on registering family businesses

Commenting on that, Hamad Ali Abdalla Al Mahmoud, SEDD Chairman, stressed that Sharjah is working continuously to develop a legislative and regulatory environment to enhance the growth of family businesses and support their continuity and sustainability over the coming decades, in accordance with the best international practices. SEDD Chairman added that such thing is important because family businesses represent a basic and significant element in enhancing the growth of the emirate’s economy and supporting its competitiveness regionally and globally. Also, SEDD Chairman pointed out that in continuation of the national efforts to provide an ideal work environment for family businesses and encourage them to grow and prosper, a number of family businesses have been registered in the Companies Register. 

From his side, Fahad Ahmed Al Khamiri, SEDD Director, said that the decision specified the scope of its provisions to be applied to family companies established in the emirate, existing companies owned by owners from one family, branches of family companies from the emirates, and family companies established in free zones, in a manner that does not conflict with the laws and regulations of the free zones. Also, according to the decision, the company shall have an incorporation contract in accordance with the provisions mentioned in the Companies Law. The decision also included articles regulating the ownership of the family company, the partner’s shares disposition and valuation, the categories of shares, the family endowment company, in addition to the family charter, dispute settlement, dissolution and liquidation of the company, executive decisions, implementation and validity.

Furthermore, document that regulates the governance of family affairs related to the Family Business, and the family relationship with the family business, in accordance with Executive Council Resolution No. 31 of 2024 regarding the regulation of family companies in Sharjah. This charter includes the rules for family ownership, goals and values, mechanisms for evaluating shares and methods for distributing profits.

Moreover, it is worth mentioning that family businesses are crucial in enhancing the growth and prosperity of the emirate’s markets, ensuring their sustainability and diversifying their activities in various economic commercial sectors, especially the new economy, and supporting the emirate’s attractiveness to global family businesses. This will contribute to consolidating Sharjah’s position as a leading destination for local, regional and global family businesses.