The Dubai World Trade Centre Authority (DWTCA) today announced new regulations to encourage family businesses to establish Single and Multiple Family Office (SFO & MFO) licenses with the free zone.
The regulations address the needs of family-run entities and introduce a new platform for wealthy families to set-up offshore holding companies within DWTCA's designated free zone to manage their private family global wealth, assets and investments from Dubai, the MENA region's financial services capital.
Dubai has emerged as one of the most popular cities in the world for ultra-wealthy families, after more than 2,000 high-net-worth individuals moved to the emirate in the first six months of 2021. The city's population of hign net worth invidials rose 3.8 per cent to 54,000, up from 52,000 in December 2020. The emirate's business-forward outlook and low-risk environment make it an excellent prospect for Single and Multiple Family Offices.
Speaking on the development, His Excellency Helal Saeed Almarri, Director General of Dubai World Trade Centre Authority (DWTCA) said: “Family businesses are a highly significant segment within today's global economic landscape and are integral to the wider international investment community. Following an exceptionally challenging year, family businesses worldwide have shown extraordinary resilience and agility, and are eager to diversify and expand into new markets. DWTC Authority recognises the need for a specialised legal and regulatory framework that offers distinct flexibility and fundamental benefits for setting up Single and Multiple Family Offices in Dubai, providing an attractive environment that supports Family Offices to operate successfully".
DWTCA's SFO regulations allow for offshore entities, founded directly by members of a single family, to own and manage their collective wealth, assets, businesses and investments through incorporating a new Free Zone Establishment (FZE) or Free Zone Company (FZCO), subsequently licensed to operate from DWTCA's designated free zone.