A dazzling metropolis in the United Arab Emirates, Dubai is renowned for its iconic skyline, luxurious lifestyle and prosperous economy. As one of the fastest-growing cities in the world, Dubai has transformed into a global hub for business, tourism, and innovation. The city’s strategic location at the crossroads of Europe, Asia, and Africa makes it an ideal destination for family offices.
A Bustling Oasis for Work and Lifestyle
Dubai is a leading destination for family offices due to its dynamic economy, tax benefits, and luxury lifestyle. The city’s strategic location, diversified economy, and business-friendly environment, including free zones like the Dubai International Finance Centre (DIFC), make it attractive for foreign investments. For family offices, Dubai offers an excellent quality of life, cutting-edge infrastructure, and robust legal and regulatory structures.
Dubai’s political stability and secure environment provide a solid foundation for wealth management. With its blend of luxury, opportunity, and strategic advantages, Dubai stands out as a premier destination for family offices aiming to grow and preserve their wealth in a dynamic and cosmopolitan setting.
Synonymous with sophistication and luxury, the Dubai International Financial Centre (DIFC) was established in 2004 as a financial centre for corporates throughout the Middle East, Africa, and South Asia markets. In March 2023, the DIFC introduced the DIFC Family Wealth Centre (DFWC). The purpose of the DFWC is to support family businesses in preserving their wealth and ensuring succession planning by offering a comprehensive suite of services.
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As an emirate in the UAE, Dubai levies a 9% corporate income tax on both local and foreign companies. However, there are exemptions to this rule, such as charities, investment funds, and enterprises within the oil and mining sectors. For family offices in particular zones, like the DIFC, might benefit from a 0% tax rate on certain income types, provided they comply with specific criteria.
Dubai offers a competitive corporate tax environment, with a standard corporate tax rate of 9% on taxable income exceeding AED 375,000 (roughly $100,000). The standard rate of VAT is 5%, with certain transactions being exempted or zero-rated.
The UAE has an extensive network of double taxation treaties to foster economic cooperation, offer tax relief and promote international investments. The tax treaties span over 100 countries and greatly benefit family offices operating in Dubai. These agreements highlight the region’s commitment to creating a secure and attractive investment environment.
Establishing a DIFC Foundation in Dubai can help family offices with wealth structuring, family legacy planning, ringfencing assets, and philanthropy. Among its key advantages are:
Dubai has various legal structures available to help family offices preserve and manage their wealth. In particular, the DIFC privacy arrangements for family offices offer an exemption from the public registry. For family offices with privacy as a top priority, the arrangement keeps the details of the shareholders and interest holders confidential. Below are a few of the popular structures:
Setting up a DIFC Family Office offers a specialised way for single-family or multiple-family offices to manage, protect, and grow their wealth. This structural setup is especially useful for families looking to keep their wealth stable over the long term through multiple generations.
Multi-family offices registered in the region must ensure that each family’s information is kept private and separate from the others. In addition, if handling financial investments, they must be regulated by the Dubai Financial Services Authority (DFSA) and comply with the specific rules and standards.
Families with multiple businesses can streamline management and decision-making by establishing a Holding Company. This structure consolidates various businesses and investments under one umbrella, simplifying ownership and control. It easily facilitates broader investment diversification and efficiently handles the paperwork and backend tasks for multiple ventures. Holding companies are ideal for family offices seeking to simplify management, clarify ownership, and flexibly pursue diverse investment options.
A Prescribed Company (PC) is a special-purpose vehicle regime offered by DIFC. They are considered private companies under the DIFC Companies Law, irrespective of their number of shareholders. Setting up a PC in the DIFC provides:
PCs are an attractive tool for family offices with complex structures across different geographies.
The DIFC Trust Law allows for the establishment of trust arrangements that are subject to DIFC law. Setting up a Trust can enable family offices to protect and manage their assets while structuring their distribution according to your wishes. Trust arrangements are a great tool for succession planning and the transfer of wealth to the next generation, primarily because they separate legal ownership from beneficial ownership in assets.
According to the IMF data sets, the UAE, and thus Dubai, has a strong economy and significant trade surpluses. While oil is a big contributor to its income, the country is fairly diversified, with a growing non-oil sector. Inflation rates are relatively low, and the fiscal position remains strong due to sound financial management and substantial reserves. The UAE is working on making its economy even better and more competitive by focusing on long-term plans that include being innovative and sustainable.
The Dubai Economic Agenda ‘D33’ seeks to firmly establish Dubai as one of the top three cities to invest, live, and work in. It aims to double the size of Dubai’s economy by 2033 and consolidate its position among the top three global cities. That includes 100 transformative projects, with targets to increase foreign trade to AED 25.6 trillion and add 400 cities as key trading partners over the next decade.
As part of the United Arab Emirates, Dubai enjoys a broad network of diplomatic and commercial relations worldwide and is a member of the Gulf Cooperation Council, UN, World Bank, and IMF. The Ministry of Foreign Affairs is committed to achieving the strategic, political, and economic interests of the United Arab Emirates through effective diplomacy that promotes security, stability, and sustainable development across the world. Through its well-balanced foreign policy, the UAE continues to support progress, development, and prosperity at home and abroad.
Dubai’s diversified economy opens up investment and co-investment opportunities across sectors like real estate, hospitality, technology and healthcare, as well as ESG-focused portfolios. The business ecosystem is also optimally suited for expansion and growth, offering extensive networking prospects for industry leaders to nurture deals, build strong partnerships and scale operations. Family offices in Dubai can avail of a wide range of tailored services, including wealth management, tax planning, estate planning and legal counsel. The city also does not impose any inheritance, estate or wealth taxes, enabling wealth preservation to span generations.
Dubai is now a global hub for businesses and experts who offer various professional services. In particular, the DIFC connects many top companies and firms in finance, accounting, management, law, risk management, education, research, and HR. Moreover, the centre has cemented its position as the largest and preferred hub for wealth management companies and hedge funds. The total number of WAM firms now exceeds 370, mostly from Asia Pacific, GCC, Europe, the UK, and the US.
The city attracts talent from around the globe, with laws in place to ensure safety and equality for all. As part of its unique ecosystem offering, DIFC provides access to a deep pool of talent and expertise, A-grade infrastructure, regulatory frameworks, and direct access to both established and emerging markets. In addition, in partnership with the DIFC Family Wealth Centre, The Academy and Hawkamah Institute provide educational programs for family office professionals and their principals.
Dubai is known as the most significant financial hub between London and Singapore. It has a large workforce of over 41,500 people, and more than 5,500 companies are registered there. This area has seen steady growth for 20 years and hit a record high in 2023. This success has attracted even more investment and business to the Centre and to Dubai as a whole. The city’s stable economy attracts top innovators, entrepreneurs, and professionals from numerous sectors and industries.
Focused on building a knowledge-based economy, Dubai boasts renowned educational institutions and cutting-edge research facilities. Regulated by the Knowledge and Human Development Authority (KHDA) to ensure growth and quality, education in Dubai primarily constitutes private institutions that cater to all ages and multicultural groups. Dubai has more than 263 early learning centres for newborns to six-year-olds, while older students can choose from diverse international curricula and extra-curricular activities when considering school enrolment.
Dubai is a family-friendly destination with a wide range of indoor and outdoor attractions that can be enjoyed throughout the year. From sandy beaches to majestic mountain ranges, and from Michelin-starred restaurants to traditional eateries, as well as iconic souks and modern malls, Dubai offers the perfect blend of old and new. The city is ranked among the top five safest cities in the world placing a high priority on personal safety of residents and visitors.
Dubai is an ultra-modern, fast-growing city that has attracted millions of foreign nationals from over 200 countries. As one of the world’s most diverse, multicultural destinations, it is known for its harmony and tolerance, blending traditional values and hospitality with prominent modern influences.
To better serve and support family offices, the DIFC has a multi-national team fluent in various languages alongside English, including Arabic, Mandarin, Hindi, French, German, Greek, Portuguese, Spanish, Tagalog, and Urdu.
Dubai has one of the region’s best healthcare offerings, with its wide-ranging departments, state-of-the-art infrastructure and equipment, highly qualified medical professionals from around the world, and progressive treatment options. Every neighbourhood has a network of clinics and pharmacies, and most have easy access to premium hospitals, ensuring that patient care remains a priority at all times.
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Taurus Wealth, established in 2008, is a global wealth management firm with offices in Singapore, Dubai, and Zurich.
Evaluate key statistics to compare Dubai with other regions
| Comparison | Dubai |
|---|---|
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Corporate Income Tax Rate |
9% |
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Henley Passport Index 2023 Rankings |
9 |
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Dubai’s financial hub is now home to family offices that control more than $1 trillion in assets, a Bloomberg report...
Dubai’s financial hub is now home to family offices that control more than $1tn in assets, driven by the influx of high-net worth individuals over the past few years. “Family...
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