UAE launches global family business and private wealth hub to attract more family offices

DIFC Authority Board of Directors has just approved the opening of a global family business and private wealth hub in the UAE
United Arab Emirates
To welcome more family offices into its shoreline.

The new initiative, which will be launched next month by DIFC, is hoped it will double its contribution to the UAE economy, help the sector grow and provide a full range of support services to enable new and existing hypermarkets. high net worth families.

The UAE is already a hub of family wealth. Financial wealth in the region rose 20 percent last year, compared with an 11 percent increase globally. By 2021, 41% of wealth will come from ultra-high net worth individuals and family offices, a share that is expected to grow to 46% by 2026. UAE records net inflow of more than 2,000 millionaires in 2021, helping country account for 30% of total financial GCC wealth and growing number of ultra-high net worth families looking to UAE as home for their family offices , these wealth will soar.

Tarek Hajjiri, CEO of the new centre, said:The centre is another important milestone in the development of DIFC’s wealth and asset management division. It embodies DIFC’s long-term commitment to providing high-quality private wealth management services commensurate with global standards. “

While Hajjiri and the wider DIFC team are attracting new family offices globally, family businesses that already exist within the UAE framework have been specialising their wealth with the help of an initial public offering (IPO), adding to the UAE ‘s circulation.

Saudi Aramco’s 2019 listing has given a big push for families to list their operations to help them grow their businesses and diversify their assets, and with more than 60% of operations in Saudi Arabia run or controlled by families, there is still plenty of wealth to be created. Household wealth already accounts for more than 33% of GDP.

Over the past 24 months, due to liquidity events, we have been approached by a number of family businesses in Saudi Arabia looking to establish family offices, and we now have five of the top ten family businesses in Saudi Arabia as clients. They are very passionate about establishing sound corporate governance structures, which presents both challenges for their family offices and great opportunities for businesses like ours.

Demand for top talent has surged in developed parts of the world, as newly formed specialized family offices need both the leaders of their boards and equally highly skilled investment professionals to manage their balanced portfolios. Family offices in the region are investing heavily in the global macro economy through private equity and real estate, as well as in illiquid sectors.

The Middle East’s executive and investment-focused talent pool is unmatched by the likes of New York and London, where many sources their talent, but for professionals fascinated by the Saudi family office environment, it’s a simple challenge. One is clearly growing.

With favorable taxes and a drive to change its global image, Saudi Arabia is definitely a growth area in terms of wealth creation and space to watch, but in terms of IPOs around the world, they are the perfect example of what is possible when listed.

1TRN (AED 3.67 trillion) will be transferred to the next generation in the Middle East over the next decade, existing family businesses specialize the way they manage their assets, the UAE is rapidly gaining global attention as a family office destination, and we expect Emirates to Experiencing tremendous growth over the next 12 months.