Part 5: Spotlight on the UAE

Why set up a Family Office in the UAE? 

The GCC financial wealth is projected to grow annually by 4.7% to reach $3.5 trillion by 2027, up from $2.8 trillion in 2022, according to the Boston Consulting Group’s report titled 'Global Wealth Report 2023'. The UAE is the largest wealth market in the Middle East, with individuals holding $925 billion.

The sustained economic growth in the GCC has created a fertile ground for personal wealth accumulation through increased income opportunities, thriving businesses, appreciating asset values and a growing sophistication of financial markets.

In this article, we delve into the 9 key reasons why the UAE is seeing a surge in Family Office set-ups across the region.

1. Favourable tax environment 

The UAE offers a highly attractive tax regime for family offices. There is no personal income tax, no capital gains tax, and no inheritance tax. This allows for efficient wealth preservation and transfer across generations, a critical consideration for family offices. This tax neutrality extends to most corporate income within free zones, further enhancing the financial appeal.

2. World-class infrastructure & quality of life

The UAE offers advanced infrastructure, luxurious living standards, world-class education systems, and healthcare facilities, topped up with a vibrant cosmopolitan atmosphere, making it an appealing destination for raising families.

3. Strategic location & connectivity

Situated at the crossroads of Asia, Africa, and Europe, the UAE offers excellent air and sea connectivity, facilitating global business operations and investment diversification.

4. Flexible business environment

The UAE boasts free zones with relaxed regulations and streamlined processes, making it easy for families to establish and operate businesses, further enhancing wealth creation opportunities.

5. Diverse & talented workforce

Out of the 10 million-strong population in the UAE, 8 million are expats. The UAE has expatriate-friendly policies which allows people to work and live in the country. This has attracted a large pool of talent from all over the world.

6. Political & economic stability

The UAE enjoys a high degree of political and economic stability, which is a crucial factor for families seeking a safe and secure location for their wealth. The country's stable political environment, strong leadership, and diversified economy provide a solid foundation for long-term planning and investment. This stability is complemented by a business-friendly environment that encourages innovation and growth.

7. Robust legal & regulatory framework

The UAE has made significant strides in developing a sophisticated legal and regulatory framework that supports family offices. The Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) offer common law frameworks, independent regulators, and specialised courts, providing a familiar and secure environment for international families. These jurisdictions also offer specific family office regulations, providing clarity and structure for their operations.

8. Government initiatives & support

The UAE Government offers several initiatives to attract family offices and businesses, including long-term visas, financial support, the benefit of using free zones that allow 100% foreign ownership, tax exemptions, and streamlined business setup facilities.

How can Ocorian help?

Our dedicated global family office teams are based in key jurisdictions including the Channel Islands, the UK, the UAE, the Caribbean, Singapore, Hong Kong, and Mauritius and have technical expertise and a comprehensive understanding of the dynamics of family wealth. 

Our clients are at the heart of what we do. We offer enhanced and expert services to our clients, wherever they are located. Reach out to the team and find out more.