Why Family Offices are Choosing the UAE

The UAE’s real estate market is ripe with potential, and as someone deeply invested in this space, I can’t help but feel excited about the opportunities for family offices. Over the last 24 months, the UAE has emerged as a top destination for global family offices. What’s drawing them here is a combination of strategic location, strong economic policies, and a welcoming regulatory environment.

As per Arabian Business, “Family offices are fast emerging as the new focal points for attracting and routing high-value investments in Dubai’s real estate sector, providing tailored solutions in sync with the unique goals and values of the ultra-rich.”

Here’s how families can get set up in the UAE, and why many have already made the move.

ADGM: Tailored Solutions for Family Offices

If you’re looking at Abu Dhabi, the Abu Dhabi Global Market (ADGM) offers some fantastic options. They provide a range of family office licenses and structures that cater to different needs. What stands out to me is ADGM’s adherence to English Common Law, which creates a familiar and trusted legal environment for international investors. In the past year alone, there’s been a 30% increase in family office licenses issued by ADGM. It’s clear that more family offices are recognizing the advantages here.

DIFC: A Premier Hub for Wealth Management

The Dubai International Financial Centre (DIFC) is also making headlines as of late. DIFC offers a variety of family office structures and licenses designed for efficient wealth management and estate planning. The benefits are impressive, from tax efficiency and access to a global financial network to the application of English Common Law. There has been a remarkable rise in family offices based in DIFC over the last two years. It’s becoming a go-to hub for anyone serious about managing their wealth.

Preserve Your Wealth with Foundation Structures

One strategy I recommend for enhancing wealth preservation is using foundation structures. These provide a solid framework for asset protection, governance, and succession planning, making sure your family’s wealth is preserved for future generations. Both ADGM and DIFC offer flexible foundation structures that can be tailored to your family office’s unique needs.

Access Exclusive Off-Market Opportunities

Having a local presence in Dubai also opens up access to exclusive off-market private equity and real estate investments. These deals are often off-limits to the general market and can offer significant advantages. They allow family offices to secure prime properties and investment opportunities that might not be available elsewhere, leading to potentially superior returns and a more diversified portfolio.

Overall, the UAE’s sophisticated legal frameworks, strategic location, and investor-friendly environment present unparalleled opportunities for family offices. By taking advantage of what ADGM and DIFC offer, embracing foundation strategies, and tapping into off-market investments, you can significantly enhance your wealth management and investment strategies.

ABOUT THE AUTHOR:

Kabir Joshi is the Founder and Head of Investments & Advisory at Vantage Properties. With over 24 years of multidisciplinary experience and exposure to transactions exceeding $2 billion, Kabir is a leading expert in real estate development, portfolio strategy, asset management, investment analysis, and risk management.

Kabir’s career is marked by significant achievements, including orchestrating one of the largest transactions in Business Bay and structuring a landmark exit for Dubai’s pioneering co-living project in Al Furjan. His advisory work has also facilitated the successful exit of a 132-townhouse portfolio valued at AED 200 million.?

Kabir holds a Bachelor of Business Administration degree from Panjab University and an MBA in Strategy & Finance from Hult International Business School.