Abu Dhabi Unveils Groundbreaking Family Business Index

In a move that underscores the growing importance of family-owned businesses, Abu Dhabi has launched the groundbreaking Abu Dhabi Family Business Index, the first initiative of its kind in the region. This collaborative effort between the Abu Dhabi Department of Economic Development (ADDED) and the United Arab Emirates University (UAEU) aims to shed light on the significant role these businesses play in the emirate's economy and society.

The index will function as a ranking system, meticulously evaluating family-owned and controlled businesses across Abu Dhabi based on a comprehensive set of metrics. These metrics will encompass various aspects crucial to a business's success and longevity, including financial performance measured by revenue, industry sector, and employment generation. Additionally, the index will delve into governance structures, a vital component for ensuring stability across generations. It will assess factors such as the presence of robust succession plans and the balance of leadership roles across genders.

The Abu Dhabi Family Business Index goes beyond simply measuring financial strength. It will recognize businesses that demonstrate a commitment to long-term sustainability and social responsibility. The index will track a business's contribution to the emirate's socio-economic development, taking into account its initiatives and practices that benefit the community.

This groundbreaking initiative is expected to yield valuable insights for a wide range of stakeholders. Investors and policymakers will gain a deeper understanding of the family business landscape in Abu Dhabi, enabling them to make more informed decisions. Academics will have access to a rich data source to further explore the unique characteristics and challenges faced by family-owned businesses. The general public will benefit from a heightened awareness of the significant contributions these businesses make to the emirate's economic prosperity and social well-being.

The launch of the Abu Dhabi Family Business Index comes at a time when the emirate is actively seeking to diversify its economy and foster long-term growth. Family businesses, renowned for their focus on long-term planning and commitment to local communities, are seen as a crucial pillar in achieving these goals. By recognizing and supporting these businesses, Abu Dhabi is creating an environment that encourages their continued success and contribution to the emirate's flourishing economy.

The Abu Dhabi Department of Economic Development (ADDED) and the United Arab Emirates University (UAEU) have expressed confidence that the Abu Dhabi Family Business Index will serve as a valuable benchmark, not only for Abu Dhabi but potentially for the wider region as well. The comprehensiveness of the index and the data it generates are expected to provide a model for other economies seeking to understand and support the role of family-owned businesses.

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