90% of UAE’s Private Firms Are Family-Owned: Discover How DIFC’s Wealth Centre Safeguards Their Legacy!

Family businesses are the backbone of the UAE’s economy, making up 90% of private enterprises and employing 80% of the workforce. But in a fast-evolving global business landscape, how do these families protect their wealth and ensure continuity across generations??

The DIFC Family Wealth Centre (DFWC) is dedicated to supporting family businesses and high-net-worth families in safeguarding their legacies and achieving sustainable growth. By offering tailored, confidential frameworks designed to address the unique needs of family offices, DFWC empowers families to build resilience, foster continuity, and create a strong foundation for future generations.?

?Here’s how DFWC adds value:?

Custom Regulations: The Family Arrangements Regulations (effective January 2023) introduce a Family Business Register and streamlined provisions for family arrangements. Bonus: DIFC family offices don’t need to register as DNFBPs with the DFSA—giving you more freedom.?

Empowering Governance: DFWC organizes executive programs, workshops, and mentorship opportunities to strengthen family governance and succession planning.?

Global Connections: Families gain exclusive access to DIFC’s Global Family Offices Club, along with high-level networking and forums to forge valuable relationships.?

Can DIFC’s Registry offer unmatched privacy for your legacy??

DIFC emphasizes confidentiality, critical for family offices that manage extensive private wealth. Facilities like the Private Family Registry and DIFC Privacy Vault protect sensitive family information. Additionally, DIFC family offices are not required to disclose Ultimate Beneficial Ownership (UBO), minimizing the risk of database leaks and maintaining privacy for family affairs.?

Operating under English common law principles, DIFC is a jurisdiction known for legal stability, transparency, and effective dispute resolution. These features make it a preferred choice for families looking for reliable governance solutions to manage and protect their wealth.??

Single and Multi-Family Offices in DIFC Family Wealth Centre??

DIFC supports both Single-Family Offices and Multi-Family Offices, offering distinct frameworks tailored to the needs of different family structures. A Single-Family Office within DIFC provides comprehensive, centralized governance for one family, managing wealth, assets, and lifestyle needs, without the need for DFSA authorizations for non-financial services.??

In contrast, DIFC’s Multi-Family Office framework serves families seeking a shared resource model, allowing them to access more extensive advisory services and enjoy cost efficiencies. However, this setup requires DFSA approval when financial services are extended across multiple families, ensuring adherence to regulatory standards.??

Foundations and Prescribed Companies vs. DIFC Family Wealth Centre??

For families with straightforward asset structures or minimal administrative requirements, the DIFC presents alternative structuring tools like DIFC Foundations and Prescribed Companies. These options offer flexibility in governance and confidentiality, making them suitable for families aiming to preserve wealth without a formal family office. Conversely, the DIFC Family Wealth Centre serves those needing a more comprehensive approach to governance and wealth management, providing essential resources for families with intricate financial landscapes.??

For families with a long-term vision, DIFC offers a solid regulatory framework, confidentiality, and a supportive family wealth ecosystem that could be worth considering. While it’s important to explore all available options, DIFC's reputation for stability, comprehensive services, and a global platform for wealth management make it a compelling choice for those looking to safeguard and grow family assets across generations.?

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However, the challenge of securing a family legacy is real, and timing is key. Delaying these crucial decisions can lead to missed opportunities for wealth preservation and succession planning, making it essential to act sooner rather than later.?

Disclaimer: Content posted is for informational & knowledge sharing purposes only and is not intended to be a substitute for professional advice related to tax, finance, legal, compliance or accounting. No warranty whatsoever is made in this regard, and it is not intended to provide and should not be relied on for tax/finance/legal/compliance or accounting advice. The content posted is subject to future amendments / changes / clarifications in the regulation by the authorities. For any clarifications, you may contact our finance, tax,?compliance, legal team.

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