Family Offices in the UAE: A Growing Trend

What is a Family Office?

A family office comes as more than a wealth management firm. It’s a comprehensive service specifically designed to meet the complex needs of wealthy families.

These offices manage investments, financial planning, and succession strategies while overseeing governance, tax planning, and philanthropic efforts. The main goal is ensuring family wealth lasts and grows over generations. This requires careful attention to the family's values and vision.

Why is the UAE Now in the Spotlight?

So, why are wealthy families flocking to the UAE to set up their family offices? The answer lies in a unique mix of factors.

First, let’s talk about taxes. The UAE offers a tax-free environment that is hard to resist. No personal or corporate income, capital gains, or inheritance tax exists. This allows family offices to retain wealth, dedicating a larger share to investment strategies, charitable causes, and long-term wealth preservation.

Secondly, the UAE’s location is ideal for those looking to tap into emerging markets in Asia, Africa, and Europe. Its position between East and West offers family offices unparalleled access to diverse asset classes and investment strategies, making it an essential part of any global financial plan.

A Thriving Environment for Incorporating

The UAE’s government has also taken active steps to attract family offices. In 2023, two key initiatives were introduced that reshaped the wealth management landscape.

The first is the “golden visa” program, which offers long-term residency to eligible investors, entrepreneurs, and professionals. This initiative provides security and stability for families looking to base their wealth management operations in the UAE. It encourages them to invest in the country’s real estate and business sectors.

The second initiative, establishing a "family wealth center," offers specialized services for affluent families. This center helps wealthy families manage their assets while navigating governance and cultural complexities unique to multi-generational wealth. As family businesses grow more global, the need for advisory services tailored to succession planning and intergenerational wealth transfer has never been greater. The center plays a crucial role in ensuring that wealth is preserved and grows in alignment with family values.

These moves aim to draw more Western wealth managers to the UAE, benefiting from the growing pool of high-net-worth individuals and contributing to the nation's booming economy.

The Rivalry Between Dubai and Abu Dhabi for Family Office Leadership

The UAE is a friendly place for family offices. Dubai and Abu Dhabi are the top cities. Both offer distinct advantages, but each has its unique approach.

Dubai’s International Financial Centre (DIFC) has attracted many wealthy people. It is known for luxury, stability, and a strong financial system. In recent years, the DIFC introduced new regulations specifically for family offices, simplifying the process of establishing operations there.

These new rules allow for high privacy, a key priority for ultra-high-net-worth individuals (UHNWIs) who wish to manage their assets discreetly. These rules mean family offices do not have to register with the Dubai Financial Services Authority. This gives them more freedom to focus on growth.

Meanwhile, Abu Dhabi’s Global Market (ADGM) has positioned itself as a flexible, forward-thinking alternative. Its ecosystem is designed for family offices looking for bespoke solutions.

The ADGM launched the Emirates Family Office Association. This group encourages sharing knowledge and working together among family offices. It is a great option for those seeking a personalized wealth management approach.

Setting Up a Family Office in the UAE:

A Streamlined Process

Starting a family office in the UAE has become easier than ever. The country’s regulatory bodies, particularly the DIFC and ADGM, provide robust support to help establish family offices smoothly. Both offer dedicated teams to assist with navigating the regulatory landscape, making the setup process quick and efficient.

What’s more, the introduction of long-term residency options, such as the “golden visa,” means that families can secure their place in the UAE for the long term. Knowing their family office can thrive in a stable, secure environment offers financial benefits and peace of mind.

Family offices also benefit from 100% foreign ownership, no restrictions on capital repatriation, and access to various investment strategies across different asset classes. Whether it's real estate, private equity, or venture capital, the UAE offers many choices to suit every family’s unique needs.

Career Opportunities in the UAE

As the number of family offices in the UAE grows, so does the need for skilled professionals. 

Family office careers in the region are rising, from investment strategy to financial planning positions. Many UHNWIs seek succession planning, risk management, and governance experts to ensure their wealth is managed well for future generations.

Family office jobs are appealing due to their good salaries and the chance to work with some of the richest families in the world. As more UHNWIs look to establish a presence in the UAE, the demand for talented individuals to help manage their wealth is stronger.

The UAE’s Growing Role in Global Wealth Management

The UAE’s position as a leader in wealth management is set to strengthen in the coming years. Its economic stability and forward-thinking regulations make it an increasingly attractive destination for UHNWIs. Beyond its financial advantages, the country offers a high quality of life, world-class healthcare, and top-tier education options. These factors contribute to its growing appeal as a base for family offices and wealthy families.

The UAE is also forming strategic partnerships with other global wealth management centers, such as Hong Kong and Singapore. These collaborations open new doors for family offices, allowing them to diversify their portfolios and expand their global footprint.

Bottom Line

The UAE's Future as a Power Player

The UAE offers great tax benefits, a strategic location, and government support, making it a top choice for family offices worldwide. You can choose Dubai, with its strong financial systems, or Abu Dhabi, with its flexible, personal approach.

The UAE has many opportunities for family office creation. These offices want to grow, protect, and manage their assets for future generations.

As the number of UHNWIs choosing the UAE continues to rise, the country’s role in shaping the future of global wealth management will only become more prominent. Establishing a family office in the UAE isn’t just about financial growth but creating a lasting legacy.

For any inquiries or further information, feel free to reach out to the Wealth Consulting team:

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To your continued success!