The New Regulatory Framework for Resolving Family Business Disputes in Abu Dhabi

Decision No. (3) of 2026 concerning the formation of committees for resolving family business disputes in the Emirate of Abu Dhabi represents a significant regulatory development in managing disputes related to family businesses. It establishes a specialized judicial framework that combines legal, financial, and administrative expertise within a unified mechanism for resolving such disputes.

First: Establishment of a Specialized Judicial Committee (Article 1)
The decision introduces a committee chaired by a judge and comprising two experts in law, finance, and family business management, along with the appointment of a secretary. A key development lies in incorporating non-judicial expertise into a quasi-judicial structure that blends judicial authority with practical experience. It also requires that no member who has previously expressed an opinion on the dispute may participate, ensuring impartiality and avoiding conflicts of interest, thereby enhancing the efficiency and quality of dispute resolution.

Second: Expansion of Jurisdiction (Article 2)
The decision broadens the committee’s jurisdiction to include all disputes arising between partners, family members, the company, and third parties, as well as grievances against decisions of boards of directors of family businesses. This ensures a unified forum for dispute resolution and prevents fragmentation across multiple bodies.

Third: Granting Preventive Powers to Safeguard Business Continuity (Article 3)
The committee is granted the authority to take urgent and precautionary measures during the consideration of disputes to safeguard the continuity of the business and prevent disruption of operations, damage to reputation, or adverse impacts on financial standing. This reflects a shift in the committee’s role from merely resolving disputes to protecting the economic entity during the dispute.

Fourth: Engagement of Technical Expertise (Article 4)
The committee is authorized to appoint experts from the Judicial Department’s roster or from outside it and may also seek assistance from government entities or relevant companies, depending on the nature of the dispute. This enhances the accuracy of technical assessments and supports judicial decisions with specialized expertise suited to each case.

Fifth: Promotion of Amicable Settlement (Article 5)
The decision provides for referring disputes to dispute resolution centers in the absence of a family council, or where there is an agreement not to resort to it, in accordance with mediation and conciliation rules. This reinforces amicable settlement as a preliminary stage before judicial determination.

Sixth: Nature of Decisions and Speed of Resolution (Article 7)
The committee issues reasoned decisions promptly. These decisions are deemed equivalent to judgments issued by a court of first instance, granting them direct judicial force while maintaining efficiency in dispute resolution.

Seventh: Right of Appeal (Article 8)
The decision permits appeals against the committee’s decisions before the Court of Appeal in accordance with the Civil Procedure Law, achieving a balance between swift resolution and the right to two levels of litigation.

Eighth: Confidentiality and Protection of Information (Article 9)
Committee members and the secretary are required to maintain the confidentiality of deliberations and information. Disciplinary and criminal liability is imposed for any disclosure of data related to the dispute, given the sensitive nature of family businesses.

Ninth: Litigation Fees (Article 10)
Proceedings before the committee are subject to the same court fees prescribed under applicable legislation, ensuring consistency in the financial framework without creating parallel cost structures.

Decision No. (3) of 2026 thus establishes a specialized judicial system for family business disputes that integrates judicial and technical expertise, enhances the speed of resolution while preserving legal safeguards, and emphasizes business continuity and stability during disputes.

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