Foreword | Family Business

Welcome to the Family Business edition of the Al Tamimi Law Update magazine.

Family Businesses pervade all aspects of the economy of the wider middle east, with statistics pointing to the vast majority of industry in private hands.  These businesses have developed in step with the growth and maturity of the region’s economies over recent decades, assisted in part by the obvious mutual benefit to governments of a healthy and dynamic private sector.  However, the key characteristics that make them such successful wealth generators; flexibility and the adaptability to pivot and catch the next opportunity also belies their most significant flaw, the reliance on individuals.  Owners are often critical to the continuing success of a business and the biggest challenge for founders is to ensure that success continues into the future.

Governments have recognised this challenge: Nawal Abdelhadi explores the recent legislative developments focusing on assisting family businesses. I identify how the dual financial hubs of the DIFC and ADGM can assist families looking to restructure for the long term.

Both Alyzeh Zahid and Ingy Darwish, in their respective articles focus on the inner workings of a well-structured family business and how best to ensure their ongoing success.

Real Estate is a common asset class to all substantive family owned businesses in the wider region and in his Article, Abdulla Khaled addresses some of the key regulatory issues when considering how to structure and deal in family owned real estate.

And finally, in this edition, particular aspects of real estate planning, tax and the defensibility of common ownership structures are explored in depth.

We hope that you find this issue informative and all of the authors are available to address any queries or comments arising from the content.