11/10/21

UNITED ARAB EMIRATES: Dubai targets family office businesses with regulatory changes.

As published on international-adviser.com, Monday 11 October, 2021.

The Dubai World Trade Centre Authority (DWTCA) has established newly created regulations to encourage family businesses to obtain single and multiple family office (SFO and MFO) licences within its free zone.

The regulations address the needs of family-run entities and introduce a platform for wealthy families to set-up offshore holding companies within DWTCA’s free zone to manage their private family global wealth, assets and investments from Dubai.

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 or free zone company.

The MFO regulations cater to the international professional and wealth management and advisory service industry providers looking to operate and expand their market presence and management portfolios in the region. MFO licences enable services offered to multiple families, their members, businesses, entities, trusts and foundations.

These regulatory changes follow last month’s agreement between DWTCA and the Securities and Commodities Authority (SCA) to create a framework supporting the regulation, offering, issuance, listing and trading of crypto assets and related financial activities within DWTCA’s free zone.

Helal Saeed Almarri, director general of the 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.

“The DWTCA 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”.