Dubai: Preserving Inter-Generational Wealth in an Evolving Global Landscape

Dubai has transformed into one of the world’s leading financial hubs, fueled by an influx of private wealth, with family businesses and affiliated entities being a key driver behind the momentum. Dubai International Financial Centre (DIFC) is playing a significant role in shaping the family wealth landscape in the region by providing a robust ecosystem for inter-generational wealth preservation and growth.

Against the backdrop of a continually evolving global wealth landscape, Dubai’s robust business environment, political stability, strategic location, competitive tax regime, and lifestyle benefits have become some of the biggest draws for high-net-worth individuals. The emirate has also positioned itself as a preferred base for centi-millionaires, with its long-term residency options and its proactive approach towards crisis management as seen during the Covid pandemic.

Today, Dubai has the highest concentration of private wealth in the Middle East, as it continues to offer a thriving and safe economic climate, motivating wealthy individuals to relocate. It is currently home to 72,500 millionaires, 212 centi-millionaires, and 15 billionaires, according to Henley & Partners’ latest research.

DIFC is playing a pivotal role in strengthening Dubai's reputation as a major global financial hub by accelerating private wealth inflows into the city. A growing number of family offices and prominent financial players are moving to Dubai and choosing DIFC to establish their local presence.

DIFC has also become the region’s premier hub for wealth and asset management, with over 400 wealth and asset managers based in the Centre and more than USD 700 billion in Assets Under Management (AUM) — an increase of 58% from USD 444 billion a year prior. This reflects a growing demand for premium wealth management services from ultra-high-net-worth individuals and family offices who are drawn to Dubai’s vibrant economy.

Shaping the family wealth landscape in the region 

DIFC is home to more than 600 active registered entities associated with family businesses, including 120 of the world’s wealthiest families and individuals with a combined net worth exceeding USD 1.2 trillion. These families have chosen DIFC to help them manage their wealth, protect their assets, plan for succession, and accomplish their philanthropic goals under its world-class jurisdiction governed by common law principles.

Strategic initiatives to support multi-generational success

DIFC’s appeal for family offices is further bolstered by its progressive initiatives, including the launch of DIFC Family Wealth Centre (DFWC), followed by the Family Arrangements Regulations enacted in 2023, with a renewed focus on family privacy, legacy, and continuity.

DFWC is a world-first initiative that offers a holistic approach for family businesses to preserve and grow their wealth through DIFC’s ventures, such as the DIFC Academy, Innovation Hub, and Dubai AI Campus, alongside a trusted network of accredited professional advisors providing expertise on matters such as international legal and structuring advisory, estate, and inheritance planning, family governance, wealth management, dispute resolution, and next generation development.

DFWC’s growth-enabling ecosystem is supplemented by the Family Arrangements Regulations 2023, which provide a comprehensive framework for families undertaking succession and legacy planning within DIFC and ensuring that their interests are protected by the highest level of legal and regulatory oversight.

Dr. Ahmed Saif Belhasa, Chairman of Belhasa International & Group, referred to the family’s move to join DFWC as “highly strategic to ensure future growth and solid succession planning”, highlighting the Centre’s “protected, growth-focused ecosystem” and “swift on-boarding process, robust regulations, and advanced ring-fencing structure” (DFWC guide, page 16). 

Setting the benchmark in family wealth management structures

DIFC offers an innovative suite of structures and solutions that cater to the diverse needs of family businesses. The Centre’s world-class structures include family offices, holding companies, trusts, and foundations, which collectively provide families a sophisticated pathway for structuring, protecting and growing their wealth in an increasingly complex world.

The DIFC Family Office regime provides single-family offices with a best-in-class platform to manage all aspects of the families’ affairs and legacy, with the utmost privacy and confidentiality under the DIFC privacy arrangements for family offices.

Setting up a holding company in DIFC enables families to manage multiple businesses and investments under one roof. It also helps streamline decision making, clarify ownership structure, simplify cost structures, and offer more flexibility to diversify investments.

DIFC offers charitable trusts, non-charitable or purpose trusts, and investment trusts to meet the different needs of families. DIFC trusts help ensure that families’ assets are safeguarded, efficiently transferred across generations, and managed professionally.

Governed by the DIFC Foundation Law No. 3 of 2018, DIFC Foundations offer a flexible, secure and tax-efficient solution for asset protection, legacy planning, wealth management, and philanthropic endeavors.

With a firm focus on fostering family privacy and knowledge-sharing, DIFC aims to empower families with access to up-to-date information and expertise on the structures, governance, and tools available to support their multi-generation success. To that end, the Centre has published comprehensive guides covering DIFC Foundations and DIFC Trusts, and an in-depth look at its complete proposition for family businesses titled ‘Prosperity Across Generations: Unlocking the power of DIFC for families’.

DIFC’s ongoing efforts towards empowering family businesses and building enduring legacies play a crucial role in realizing the Centre’s broader vision to drive the future of finance regionally and globally.