In Brief:
- Abu Dhabi has established specialised Family Business Dispute Resolution Committees under Resolution No. 3 of 2026.
- The Committees are expected to handle disputes relating to ownership, management and constitutional arrangements of family businesses, with decisions carrying the legal force of a Court of First Instance judgment.
- The new framework emphasises confidentiality, business continuity, and structured dispute resolution, aligning with wider UAE developments.
Abu Dhabi has taken a significant step in the development the legal framework applicable to family-owned businesses through the issuance of Resolution No. 3 of 2026, establishing Family Business Dispute Resolution Committees for disputes involving family businesses headquartered in the Emirate.
This development follows similar measures introduced in Dubai under Resolution No. 14 of 2023, which established the Tribunal for Settlement of the Disputes of Family Companies and Family Property. Together, these developments reflect a broader UAE policy direction towards specialised dispute resolution mechanisms designed to support the governance, continuity and stability of family businesses.
The Committees are expected to have jurisdiction over disputes relating to the ownership, management and memoranda of association of family businesses in Abu Dhabi. Reported areas of jurisdiction include disputes:
- between partners;
- between partners and family members;
- involving third parties; and
- arising from grievances against decisions issued by Family Councils for Dispute Settlement under the federal family business framework.
Complaints against Family Council decisions must generally be filed within 30 days of the relevant decision being issued or notified.
Based on currently available information, where no Family Council exists, or where the parties elect not to proceed through that route, disputes will initially be referred to a settlement centre. If settlement is not achieved, the matter may proceed to the relevant Committee for determination.
Each Committee will be chaired by a judge and supported by two experts with relevant legal, financial and family business management expertise, together with a secretary. The Committees may also appoint technical experts where required, depending on the nature of the dispute.
Decisions of the Committees are expected to carry the legal force of a Court of First Instance judgment, subject to appeal in accordance with the Civil Procedures Law.
Disputes involving family businesses are often inherently more complex than standard commercial or shareholder disputes. They frequently involve overlapping issues of control, ownership expectations, succession planning, informal family arrangements, personal relationships, and business continuity.
A notable feature of the new framework is the reported ability of the Committees to grant urgent and preventive measures aimed at preserving business continuity during the course of a dispute. This may be particularly significant in situations involving management deadlock, operational disruption or reputational risk.
The Resolution also places emphasis on confidentiality, including potential disciplinary and criminal liability for the unauthorised disclosure of dispute-related information. This is likely to be of particular importance to family businesses seeking to manage disputes discreetly and minimise commercial and reputational exposure.
In practice, disputes rarely arise in isolation. By the time formal proceedings are initiated, underlying issues may already include informal governance arrangements, unclear ownership expectations, competing succession plans, or a breakdown in trust between key stakeholders.
Accordingly, this development serves as a timely prompt for family businesses to review whether they have in place:
- clear constitutional and governance frameworks;
- effective shareholder and family arrangements;
- defined management and decision-making structures;
- appropriate dispute escalation mechanisms; and
- robust succession and continuity planning.
Conclusion:
The introduction of specialised Family Business Dispute Resolution Committees in Abu Dhabi represents an important development in the UAE’s approach to resolving complex family business disputes in a structured, confidential and commercially sensitive manner.
In light of this development, family businesses should consider proactively reviewing their governance frameworks and dispute preparedness to ensure resilience in the face of potential conflicts.
Hadef & Partners’ Dispute Resolution and Corporate teams regularly advise on complex and sensitive family business matters, including governance, succession and shareholder disputes. If you would like to discuss how this development may affect your family business structure, governance arrangements or any current dispute, please contact Mohamed Eissa at m.eissa@hadefpartners.com or get in touch with your usual Hadef & Partners contact.
This article is intended for general informational purposes only and does not constitute legal advice. Readers should seek independent legal counsel in relation to their specific circumstances.