Dubai is to set up a committee to boost family businesses, a critical part of the emirate's private sector economy, its Government Media Office said on Tuesday.
The move will prevent any harm to family businesses’ reputation or financial position while a dispute is being considered, a statement said.
Sheikh Maktoum bin Mohammed, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, has issued a resolution to set up the Family Business and Family Ownership Disputes Settlement Committee.
"This committee will consider and settle all disputes concerning family businesses and ownerships, along with the authority to take the preventative and urgent measures to preserve its continuity and to prevent the interruption of its work or affect its reputation or financial position throughout the period of consideration of the dispute,” Sheikh Maktoum said in a post on X, formerly Twitter.
“Family businesses are an essential component of Dubai's economy and through the activation of this committee's role it will remain a steadfast partner in Dubai's prosperity and progress.”
Dubai's family businesses generate more than 40 per cent of the emirate's gross domestic product, government data indicates.
About 90 per cent of private companies in the country are family-owned, a report by the UAE Ministry of Economy says. They also employ more than 70 per cent of the private-sector workforce.
Family businesses operate in a range of vital sectors including property, construction, retail and wholesale trade, hospitality and tourism, manufacturing, financial services, health care, education and technology.
The outlook for family businesses in the emirate is “exceptionally promising”, as financial wealth in the UAE is projected to surge 6.7 per cent annually to reach $1 trillion in 2026, up from $700 billion in 2021, which will spur significant growth in this sector, Dubai Media Office said in July.
“Dubai is keen to ensure we have the right climate that helps family businesses grow and flourish generation after generation, contributing to the Dubai Economic Agenda D33’s objective of making Dubai one of the world’s top urban economies as well as the fastest-growing and most attractive business hub,” DMO quoted Sheikh Maktoum as saying.
A judge with a rank not lower than appeal level will be appointed committee chairman. The panel will include two members with experience in the legal, financial and family business-management fields, who will be appointed on a recommendation from the director general of Dubai Chambers.
In May, Dubai Chambers set up a dedicated centre for family-owned businesses to help them to navigate challenges such as succession planning and achieving sustainable growth.
All family businesses in the emirate, regardless of their size or turnover, will be able to use services offered by the Dubai Centre for Family Businesses, which aims to make corporate governance an integral part of growth and continuity strategy of family-owned private companies, Abdul Aziz Al Ghurair, chairman of Dubai Chambers, said at the time.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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