The UAE launches a new scheme to empower family businesses

The UAE's Ministry of Economy has launched a new scheme, Tabat, to empower family businesses.

The Tabat program was launched under the direction of His Highness Sheikh Mohammed bin Rashid Al Maktoum (UAE Vice President, Prime Minister, and Ruler of Dubai) to help family businesses in the UAE to expand into sectors of the future economy.

"Our goal is to transform 200 family projects into major companies by 2030 and become one of the engines of the UAE economy for the next fifty years," Sheikh Maktoum tweeted.

The program – which is expected to help a new generation of Emirati entrepreneurs and family-owned businesses to venture into new ventures – will focus on economic sectors such as artificial intelligence, renewable energy, agri-tech, aerospace, computing, biomedicine, and ed-tech.

Family-owned firms represent 70 percent of the UAE's GDP and 60 percent of the country's employment. They represent 40 percent of the national GDP and 70 percent of private sector manpower.

Under the Tabat program, more employment opportunities will be available to women.

Each batch will include 10 to 20 family firms, and each family firm will nominate three members to form its team. They will create profitable commercial projects within five months, which will be presented to investors at the end of the program.

"Family businesses have two challenges - how to develop and develop them and make them adopt innovative technologies and make them part of economic growth," Al Marri said at the opening of the event.

The minister said the UAE will enter unprecedented growth in the next half-century and invites family-owned businesses to be the backbone of this great economy and growth.

Abdul Aziz Al Ghurair said that family businesses, large and small, serve as the backbone of the economy and are among the prominent ones, representing 80 percent of the private sector in national GDP, jobs, and Emiratisation.

“Their sustainability is critical to our regional economy and national outlook. The Tabat program is helping transform family businesses to play a bigger role in shaping the UAE's economy over the next fifty years.

Tabat provides family businesses with the guidance, knowledge, and tools they need to launch new ventures, direct investment into future economic sectors, and the means to involve the next generation of entrepreneurs in their businesses,” said Al Ghurair.

He said the Tabat program would help encourage greater participation of women and increase their role in family businesses.

The new scheme is a government-led intervention in regulation to help family-owned businesses expand and grow.