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Family-owned firms seek govt support

DUBAI - The authorities in the UAE are urgently required to formulate appropriate legislation and regulations that ensure steady and robust performance of Family Owned Corporations (FOCs) operating in the country, according to a prominent UAE businessman.

In an exclusive interview with, Abu Dhabi-based Shaikh Musalam Salim bin Ham, Chairman, Executive Manager, Bin Ham Group (BHG), said: "The Family Owned businesses have played a pivotal role in developing and supporting the UAE economy in the early day and now. The family owned corporations have contributed great deal in the economic burst in the UAE during early days of the 70s and 80s," added bin Ham.

He said, the UAE economy wouldn't have boosted and performed that well without the contribution of the family owned firms.

He pointed out that, the favourable circumstances that have accompanied the emergence of those firms in the last two decades, have multiplied the chances of their success.

Bin Ham, called for the reviewing of legislation which regulated operations of companies in the private sector, and called for more government support to enable firms to face the challenges that have been forced on them by the rapidly changing global economy.

Bin Ham, said, that the investment atmosphere in the UAE was very suitable in the past and is expected to improve tremendously, especially in the light of the Council of Ministers' decision to allow AGCC citizens to establish private companies in the UAE and own shares in the stock market. This is a brave and timely initiative by our government to open investment opportunities for our neighbours and to lure more capitals in the country.

He said: "The UAE membership in the World Trade Organization (WTO) will positively reflect on the performance and operations of the national productive corporations by driving them to develop and improve their performance methodologies and mechanisms in order to provide the needed quality standards required to face international competition."

On the government's inclination to privatise some of its sectors, Bin Ham said that the government's move had been necessitate by the need to upgrade the efficiency of the production sectors and to stimulate their competitive abilities, while partially keeping in its custody shares in the services sectors which are meant for privatisation.

On the family-oriented businesses' task in boosting the national economy, he said that those entities have contributed effectively in formulating the infrastructure of the various sectors in the UAE, as much as they have assisted in establishing the cornerstones of the tremendous civilisation currently experienced in the country under the leadership of the President His Highness Shaikh Zayed bin Sultan Al Nahyan. Asked about the real problems face family owned companies, Bin Ham said, that such problems were brought to the surface along the regional and global accelerated development which affect the economy and subsequently affected the performance of the local firms in relation to production costs, market competition and other major challenges.

He said that the UAE should provide material and moral facilities and support to its private sector as being done by some AGCC countries, especially that the UAE possessed a powerful economy.On converting family businesses into public firms and their role in emiratisation, he said that the intention to that effect was very commendable. "But as regarding the issue of emiratisation,I believe that UAE citizens have the priority in getting employed except that the employing bodies are dictated by profit and loss, therefore a balance should be struck somewhere along those lines and convince the private sector to give them full opportunity as long as that would satisfy both ends."Job-seekers are looking for job opportunities and we are looking for qualified cadres to help run our businesses so we can together garner maximum benefits for our firms" ,he said, while affirming that the number of citizens employed in the private sector was minimal compared to the numbers of expatriates. On the evaluation of investment environment in the UAE, Bin Ham said that following the decision by the council of Ministers to allow AGCC countries' citizens ownership of firms and stock market shares, more was expected from the investment environment in the coming phase to encourage investors into creating new projects that were liable to succeed. On the necessary requirements for emiratizing capital, given the hike in liquidity in the local market," Banks and other financial bodies must act to support projects to accomplish that target," he said. On privitasation he said that privatisation of governmental firms aimed at promoting the performance of companies, raising production and increasing profit." I suggest that the government retains some shares in eligible companies, because it can interfere to redress any urgent crisis that may affect companies' performance," he said. On investments abroad he said: " We are managing real-estate projects in Yemen, Morocco and the Sultanate of Oman. In Muscat we have a project at the value of Dh100 million , and in the Nile State of Sudan ,we have a 10,000 acres land-reclamation project, in addition to oil ventures there. In Yemen, too ,we have agricultural schemes. At the moment ,new real-estate projects including a 5-star hotel costing Dh100 million will be ready soon. Few months back we had started construction of a residential compound at Mamzar area in Sharjah comprising three towers of 43 storeys.