Introduction
Family businesses are central to the UAE economy. As they expand and pass from one generation to the next, questions of ownership, management, governance, and succession can become increasingly complex.
Against this background, Decision No. (3) of 2026, issued by the Head of the Abu Dhabi Judicial Department, introduces specialised Family Business Dispute Resolution Committees for family companies headquartered in Abu Dhabi.
The move reflects a clear shift towards more specialised dispute resolution, recognising that family business disputes often require more than ordinary commercial litigation.
A Dedicated Forum: What the Law Actually Establishes
The Decision establishes a standing committee in Abu Dhabi, chaired by a judge and supported by two specialists with legal, financial, or family business management experience. A secretary is also appointed, while the chairperson is nominated by the Abu Dhabi Judicial Council.
This multidisciplinary structure is important. Family business disputes rarely turn on legal issues alone; they often involve commercial judgment, financial realities, and sensitive governance dynamics.
The Decision also protects independence. A committee member cannot participate if they previously advised on the dispute, prepared a related report, or acted for any party.
Jurisdiction: Broader Than It May First Appear
Article (2) gives the committees a broad mandate. In practical terms, they may consider:
- Disputes between shareholders, family members, and related parties arising from the company’s constitutional documents, ownership, management, or membership, as well as disputes involving the company itself.
- Grievances against decisions issued by the Board of Directors under Article (19) of Federal Decree-Law No. (37) of 2022 on Family Businesses. Such grievances must be filed within 30 days from the date the decision is issued or notified to the concerned party. Failure to meet this deadline results in the grievance being treated as though it had never been filed.
The committees therefore address not only disputes but also significant governance issues that may affect the stability and continuity of family businesses.
For advisers, the key point is to assess jurisdiction early and act quickly where a board decision is being challenged, particularly given the strict 30-day deadline.
Broad Powers: The Ability to Protect Business Continuity
Article (3) is one of the Decision’s most practical features. It gives the committees wide powers to order urgent and protective measures while a dispute is ongoing.
This can be critical where a dispute threatens asset transfers, creates management deadlock, excludes minority members, or disrupts business operations. Prompt, targeted relief can preserve value and prevent escalation.
The committee may also take any other measure it considers appropriate, giving it flexibility to respond to the facts of each case.
Expert Assistance: Recognising the Limits of Legal Analysis Alone
Article (4) allows the committees to appoint external experts where specialist input is needed. This is helpful because many family business disputes require technical, financial, or sector-specific analysis.
A real estate group, a hospitality business, and a manufacturing company may each present distinct issues. The framework enables the committee to appoint the appropriate expertise when required.
The Priority of Amicable Settlement
Article (5) introduces an amicable settlement stage before the committee proceeds to a formal decision. This is a valuable feature.
If settlement efforts fail, or if no agreement is reached through the relevant board mechanism, the committee may proceed to resolve the dispute.
The approach is commercially sensible. Family disputes can damage relationships and impact business continuity severely. A structured conciliation stage allows families the chance to resolve issues before formal proceedings take over.
Procedure, Decisions, and Appeals
Article (6) sets out the procedure. Sessions are recorded in minutes, and the family company or its management may appear through an authorised representative or licensed lawyer.
Article (7) deals with decision-making. The committee applies civil procedural rules, and urgent decisions must be reasoned and issued promptly. Such decisions have the force of a first-instance court judgment.
Article (8) preserves the right of appeal under the Civil Procedure Law and related regulations.
Confidentiality: A Cornerstone, Not an Afterthought
Article (9) imposes confidentiality obligations on committee members, staff, and participants. This is central to the framework.
For family businesses, confidentiality is often essential. Public disputes can affect reputation, market confidence, and sensitive financial information.
The Decision reinforces confidentiality through an oath requirement, a prohibition on disclosure, and potential criminal liability, giving families greater confidence in using the process.
Litigation Costs
Article (10) provides that committee fees are governed by Law No. (13) of 2017 concerning Judicial Fees in Abu Dhabi. This gives parties greater cost predictability without creating a separate fee regime.
The Broader Legislative Context
The Decision sits within the UAE’s wider family business framework.It complements Federal Decree-Law No. (37) of 2022 on Family Businesses by creating a specialised forum for governance, ownership, and succession disputes. It also aligns with Federal Decree-Law No. (40) of 2023 on Mediation and Conciliation in Civil and Commercial Disputes.
Together with the Civil Procedure framework and Abu Dhabi’s judicial legislation, the Decision strengthens the dispute resolution architecture for family businesses in Abu Dhabi.
Practical Implications: What Family Businesses and Advisers Need to Know
Review Your Constitutional Documents Now
Family constitutions, shareholders’ agreements, and governance charters should be reviewed now. Clear dispute resolution provisions are no longer optional; they are part of sound succession and continuity planning.
The 30-Day Window is Non-Negotiable
Grievances against board decisions must be filed within 30 days. If this deadline is missed, the grievance is treated as though it had never been filed. Advisers should therefore identify and communicate the deadline at the earliest opportunity.
Interim Relief Is Available, and You Should Use It
Interim relief may be decisive at the outset of a dispute, particularly where assets, management control, or business continuity are at risk. It should be considered early when the facts justify it.
Plan for Governance, Not Just Dispute Resolution
The new committee is not a substitute for sound governance. Clear decision-making rules, succession plans, and family protocols remain the most effective means of preventing disputes. The committee provides an important safeguard, but it should not be regarded as the first line of defence.
Finally, at Habib Al Mulla and Partners, we are seeing increased attention among family businesses to governance, succession, and dispute prevention. The new framework is a welcome development: it provides a specialised forum for sensitive family business disputes while offering a timely reminder that strong governance remains the best protection against conflict.
Seek Legal Counsel
Should you have any questions or require assistance with any matters relating to Ajman’s new Rental Dispute Centre, please do not hesitate to reach out to our Partner and Head of Commercial Disputes, Alia Al Mulla and Senior Associate, Hossam El Safoury.
Disclaimer
The content provided in this article is intended for informational purposes only and does not constitute legal advice. While every effort has been made to ensure the accuracy and completeness of this information, the article does not offer a guarantee or warranty regarding its content. The matters discussed in this article are subject to interpretation, and legal outcomes may vary based on specific facts and circumstances. We recommend that readers seek individual legal counsel before making any decisions based on the information provided. If you require specific legal advice, please contact us directly.