Family-owned businesses play a vital role in the economy, contributing over 60% of the GDP in many regions. Their significance in driving economic growth cannot be overstated. In recent years, there has been a notable increase in the establishment of family offices, driven by families‘ desire for comprehensive wealth management, access to investment opportunities, privacy, family governance, succession planning, and philanthropic aspirations.
The UAE has experienced a rise in the establishment of new family offices, attracting wealthy families from around the world who recognize the opportunities available in the region. The UAE‘s appeal as a destination for family offices stems from its combination of tax advantages, strategic location, robust financial services sector, and high-quality lifestyle amenities. The pro-business environment and supportive infrastructure further enhance its attractiveness for wealth management and investment purposes.
In 2021, financial wealth in the UAE grew by 20%; approximately 41% was generated by ultra-high-networth individuals and family offices, forecast to increase to 46% by 2026. It is estimated that the UAE’s financial wealth will continue to grow at a compounded annual rate of 6.7% and reach USD 1 trillion by 2026.
The regulatory framework in the UAE has been a significant driver in attracting family offices to set up in the country. The government has implemented supportive initiatives, including investor-friendly policies and streamlined business setup processes, fostering a conducive environment for family offices. The UAE‘s commitment to aligning its regulatory framework with international standards and best practices further strengthens its credibility and reputation.
Considering these factors, it is evident that the UAE is emerging as a hotbed for family offices, with a conducive business environment, attractive regulatory landscape, and a wide range of opportunities for families seeking to establish and grow their wealth in the region.
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