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Ministry of Economy Recognizes Pioneering Family Businesses in ‘Thabat’ Program

by Swati Gupta

September 21, 2023 26

The Ministry of Economy (MoEc) hosted a prestigious ceremony in Dubai to honor the first cohort of participants in the ‘Thabat’ family business program.

The event brought together prominent dignitaries, including Abdullah bin Touq Al Marri, Minister of Economy; Abdul Aziz Al Ghurair, Chairman of Dubai Chambers and Chairman of the Family Business Council – Gulf; Hessa bint Essa Buhumaid, Director-General of Dubai’s Community Development Authority; Abdullah Mohamed Al Mazrouei, Chairman of the Federation of UAE Chambers and Chairman of Abu Dhabi Chamber of Commerce and Industry; Rashed Abdul Karim Al Balooshi, Under-Secretary of the Abu Dhabi Department of Economic Development (ADDED); Sheikh Sultan bin Saqr Al Nuaimi, Second Vice Chairman of the Ajman Chamber (ACCI); and Abdulaziz Al Nuaimi, Assistant Under-Secretary for the Commercial Affairs Regulatory Sector at the Ministry of Economy, along with various officials.

In his address, Bin Touq expressed appreciation for the visionary leadership of the UAE in recognizing the significance of nurturing family businesses, which play a pivotal role in bolstering the competitiveness and sustainability of the national economy. He highlighted the Ministry’s commitment to developing a comprehensive and advanced framework for family businesses, both locally and internationally, in alignment with global best practices. He also stressed that the UAE’s first-ever comprehensive legislation for the governance of family businesses was enacted to create a conducive legal environment for their growth.

Bin Touq went on to emphasize the launch of the ‘Thabat’ program, designed to further the UAE’s regional leadership in fostering a competitive environment for family businesses in emerging economic sectors. This program serves as a critical catalyst for enhancing the capabilities of UAE family businesses, facilitating their expansion into new markets, and supporting their ventures into innovative domains. Notably, many of the projects initiated by the first batch of participating companies are centered around healthcare technology and modern digital solutions, aligning with the UAE’s new economic model emphasizing flexibility and innovation.

“The ‘Thabat’ program is a key incentive to enhance the capabilities of the UAE’s family businesses, enabling them to transition to new economic sectors. It supports their expansion into foreign markets, especially since the top two projects created by the participating companies are based on healthcare technology and modern digital solutions. These fields are among those pillars that support the UAE’s new economic model based on flexibility and innovation. We look forward to enhancing cooperation with our partners to encourage more family businesses to join this programme and benefit from its advantages and transformative potential. The second batch – ‘Thabat2.0’ – targets family businesses operating in many sectors of the new economy,” he remarked.

Bin Touq extended congratulations to the standout projects from the inaugural batch of the ‘Thabat’ program, highlighting ‘Apterra’ by the Al Serkal family and ‘Nutralis’, a digital platform project by the Al Yusuf family.

Al Nuaimi shed light on the Ministry’s vision for 2023-2026, which involves expanding the ‘Thabat’ program to accommodate upcoming batches over the next three years. As part of these enhancements, financing opportunities will be offered to family businesses that successfully complete the program to support their growth. This expansion will allow two batches per year, each consisting of 7 to 10 companies. Additionally, participation will be open to family businesses from overseas, enabling them to develop projects and products to enter the UAE market by 2025, ultimately establishing the UAE as the region’s family business hub.

Henrike Luszick, Founder and CEO of Bridgemaker, delivered a keynote address emphasizing the vital role of corporate venture building in reigniting the entrepreneurial spirit of family businesses. She highlighted the importance of equipping these businesses with the necessary talent, agile startup culture, innovation-driven mindset, and a proven methodology to ensure sustainability and growth in an ever-evolving market landscape.

“Through our partnership with the UAE’s Ministry of Economy, we will provide a hands-on approach to venture building, blending legacy preservation with future-forward thinking. This initiative aims to empower the next generation of family businesses, ensuring sustainability and growth in an ever-evolving market landscape,” she added.

Launched in August 2022, the ‘Thabat’ program is a testament to the MoEc’s commitment to preserving the economic and business legacy of the UAE’s family enterprises. The program aims to ensure the continuity of these businesses across successive generations, encourage their diversification into new economic sectors, and transform 200 family projects into rapidly growing companies over the next decade.

Family businesses constitute a staggering 90 percent of the total number of private companies in the UAE, contributing a significant 40 percent to the nation’s GDP.