The Government of Dubai has promulgated Dubai Law No.9 of 2020 – Regulating Family Ownership in the Emirate of Dubai (“Law”)[1] with an objective to facilitate easy transmission of assets within the successive family generations (upto the fourth degree) whilst setting out pre-determined legal processes to be followed by such families to avoid legal disputes.
The Law is of vital importance since majority of the UAE businesses in the hospitality, construction and real estate sectors are family owned. Furthermore, the networth of the UAE business families gross over $ 40 billion, with substantial part of the wealth concentrated in Dubai, the richest city in MENA region.
The family businesses can at their will elect to apply and benefit from this Law by executing a notarized Family Ownership Contract (“FOC”) between the family members for a term of 15 years and renew it subject to the terms agreed, provided that each renewed term doesn’t exceed 15 years. The Law permits FOC to manage and administer the stocks and shares in commercial companies, civil companies, assets of sole proprietorships (with exception of public joint stock companies), other moveable or immoveable assets including intellectual property rights, industrial designs and other rights with respect to the aforesaid assets owned by the members of the family (“Family Assets”). The FOC shall determine the share of the partner in the Family Assets as per agreed terms or in accordance with legal inheritance. read more