For many of the richest families and individuals worldwide, the Dubai International Financial Centre (DIFC) is a reliable, international hub.
DIFC has contributed to Dubai’s ranking as the top city in MEASA and among the top 22 cities worldwide in terms of the wealthiest populations. It is home to over 120 of the wealthiest families and individuals in the world, with combined net worths exceeding $1 trillion.
The World’s Wealthiest Cities Report 2023 states that over 68,500 HNWIs—those with at least $1 million in liquid assets—206 centi-millionaires—those with a net worth of at least $100 million—and 15 billionaires are among the population of Dubai.
Dubai family businesses
With a workforce of over 41,500 and over 5,500 active registered companies, the DIFC is the deepest financial center between London and Singapore. Its status is supported by 20 years of consistent growth, including a record-breaking year in 2023 that has further encouraged wealth flows to the Center and Dubai.
To support family businesses as they future-proof their growth ambitions and succession plans in Dubai and beyond, Dubai International Financial Centre established the first Family Wealth Center of its kind in the world last year.
At the DIFC Family Wealth Center’s first-ever “A Legacy of Excellence” exclusive luncheon, which celebrated the occasion and the amazing progress made in just over a year, leading family businesses and advisors were invited. Essa Kazim, the governor of the DIFC, Arif Amiri, the chief executive officer of the DIFC Authority, and Minister of Economy Abdullah bin Touq Al Marri welcomed them all.
Al Marri said: “The UAE has long been the primary and preferred destination for business and investment in the GCC and wider MENA region. Similarly, the UAE aims to become the regional center for family businesses.
“Dubai stands as a pivotal hub for family wealth, offering unparalleled opportunities and resources for growth and preservation.
“In just one year, the DIFC Family Wealth Centre has played a crucial role in nurturing this ecosystem. Recognising Dubai’s significance as a global center for family wealth, the Centre’s swift impact underscores its commitment to fostering prosperity and security for generations to come”.
Essa Kazim, Governor, DIFC, said: “Dubai and DIFC have rapidly positioned themselves as the premier destination for family businesses worldwide. The exponential growth and expertise witnessed within the Centre, underscores its pivotal role in shaping the landscape of family wealth.
“Today we mark another significant milestone, in the DIFC Family Wealth Centre’s first anniversary, as we also reflect on DIFC’s innovative 20-year journey that has led us here.
“We remain dedicated to providing best-in-class resources to our esteemed members, nurturing enduring legacies and empowering families for generations to come, as we together shape the future of finance”.
During his welcome address, Arif Amiri, Chief Executive Officer of DIFC Authority, said: “DIFC’s rise as a global hub for family wealth stems from its commitment to fostering a growth ecosystem for the wider financial sector.
“With a strong pursuit of transparency, regulation, and knowledge-building, DIFC has earned the trust of 230 banks, including 27 of the top 29 globally systemic banks, and more than 350 highly reputable wealth and asset management firms.
“This momentum is further fuelled by an influx of family businesses and related entities drawn to DIFC’s lifestyle offerings and its world-class DIFC Family Wealth Centre, which is built for innovation, succession planning, and future prosperity.”
There has been an increase in interest in family wealth management at DIFC, which has more than 440 registered foundations and over 600 active entities connected to prominent family companies and individuals.
An 81 percent increase in single-family offices and a 12 percent increase in holding companies were supported by the Center’s commitment to regulatory transparency and family confidentiality in 2023. The Center’s efforts were primarily motivated by interest in prescribed companies, or private companies that can be established by a qualifying applicant or for a qualifying purpose.
To facilitate this expansion, DIFC has also unveiled “Prosperity Across Generations: Unlocking the Power of DIFC for Families,” a comprehensive new guide designed to arm families with information on estate planning, wealth management, succession, and governance in Dubai and the DIFC.
The Single Family Office (SFO) Regulations were replaced or repealed on January 31, 2023, with the DIFC Family Arrangements Regulations. These changes were made in line with the UAE’s goal of assisting family businesses in maximizing their economic contribution.
A private registry option, which offers families and their Ultimate Beneficial Ownerships (UBOs) the highest levels of privacy and confidentiality, is one of the benefits of the new regulations.
By UAE Family Business Law, family businesses in the DIFC are also certified under these regulations to receive benefits and incentives.
Along with the updated regulatory framework for family businesses, the establishment of the DIFC Family Wealth Center in 2023 has enabled families to safeguard their wealth and legacies for future generations. This is achieved by providing best-in-class customized solutions for governance, succession planning, asset allocation and portfolio management, philanthropy, and Sharia compliance.
The Center’s collaboration with the Innovation Hub, which helps owners of the next generation stay on the cutting edge of technological mechanisms and applications, strengthens it even more.
Family businesses in the DIFC benefit from an internationally recognized legal system that is based on English common law and encompasses a variety of structures and regimes. Additionally, the Center’s diverse and cosmopolitan community, which includes some of the best restaurants, venues, cultural hubs, and lifestyle destinations in the city, gives them direct access to accredited advisors, networking opportunities, educational programs, and a wide range of experiential events.
A MoU of Understanding was recently signed by STEP Arabia and DIFC Family Wealth Centre to advance the shared interests of both parties about supporting family businesses as they strive toward multigenerational success and improving the capacity of advisors to do so.
Since family businesses account for 60% of the UAE’s GDP, 80% of its workforce, and 90% of its private companies, the DIFC Family Wealth Centre is also beneficial to the local economy as a social mechanism for wealth distribution.