The Dubai World Trade Centre Authority (DWTCA) rolled out new license rules on Sunday, 10 October 2021 to encourage and attract family businesses to establish Single and Multiple Family Offices (SFO & MFO) licenses within its designated free zone.
Vide Circular No. (12) dated 30 September 2021 on the Rules and Regulations regarding Single Family Office & Multi-Family Office activities within the DWTCA free zone, the centre announced the addition of a new license category for ‘Family Office Management’, under which two new activities were included including Single Family Office and Multi-Family Office.
The centre, founded in 1979 has opened Dubai to the global exhibitions and conferences industry and has become the heart of Dubai and continually grows as a platform for opportunities, creativity and communication. As the centre identifies the growing needs of family-run businesses, it introduces a new platform for wealthy families to establish offshore holding companies within its free zone to manage their private family wealth, assets and investments globally from Dubai, one of the world’s top financial hubs and the financial services capital of MENA region.
The first six months of 2021 witnessed more than 2000 high net worth individuals relocating to Dubai which has become one of the most sought after destinations for ultra-wealthy families. The population of HNWIs in the city has grown markedly, rising almost 4 % over the last year. Political stability, world-class health care facilities and a business-friendly tax-free environment have given Dubai an edge over other cities in attracting HNWIs for establishing Single and Multiple Family Offices, Foundations and Trusts.
His Excellency Helal Saeed Almarri, the Director-General of Dubai World Trade Centre Authority (DWTCA) briefed the media saying, “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. DWTC Authority recognises the need for a specialized 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”.
DWTC SFO is a regular Free Zone Establishment (FZE) or Free Zone Company (FZCO) allowed to carry out Management of Professional Services including wealth, assets, investment, succession, governance, financial and/or legal affairs of a Single Family only.
While Professional Services include Consulting, Investment Advisory, Asset/Portfolio Management, ESG and CSR Management, Succession/Inheritance Advisory, the Administrational services include Compliance and Record-Keeping, Administrative/Office Affairs, Secretarial Management, Concierge Services. SFOs must be set up as an independent parent entity and not a Branch office with a physical presence in DWTC.
Incorporation of DWTC SFO is very much affordable and flexible as only a minimum of USD 136,000 in proven liquid assets, held by a single family is needed and for Professional and Administrational Services requirements, non-family member professionals may be appointed. DWTC also allows up to 49% of SFO’s control with non-family members and can have 100% Foreign Ownership with full repatriation benefits of capital and profits.
DWTC MFO is a professional FZE or FZCO that provides specialized services to growing family offices that are expanding to multiple geographies, industries and operations and often need professional support services. This business structure primarily represents a growing number of international consultants, professional service providers and business advisory firms who are looking for increased presence and expanding operations and portfolio management in the MEASA region.
Firms willing to provide professional and administrational services to wealthy families on wealth-related matters can now opt for a DWTC MFO license and render their expert services to multiple families as their customers.
DWTC MFO structure is flexible as it allows professionals to advise multiple families, their members, trusts and foundations under a single license with 100% foreign ownership and 100% repatriation of capital and profits.
The new Family Office licensing regime reaffirms the planned strategy of DWTC towards enhancing family office businesses in the free zone as it has already agreed with the Securities and Commodities Authority (SCA) to support the regulation, offering, issuance, listing and trading of crypto assets and related financial activities within DWTCA’s free zone. The agreement outlines a framework that permits the DWTCA to issue the necessary approvals and licenses for carrying out financial activities relating to crypto assets
DWTC is a unique and highly developed ecosystem for businesses aspiring for both local and international opportunities and the free zone offers the most conducive environment for startups, SMEs and large corporations to conduct operations locally and simultaneously access international markets.
“DWTC Authority has made strong progress this year as a free zone of choice for the investor community. With Dubai’s business-friendly environment, best in class regulatory options and comprehensive judicial ecosystems, we are confident of maintaining this momentum. DWTC Authority will continue to review and update regulatory and licensing offerings to ensure we always present unique investment opportunities to the international business community,” highlighted H.E.Helal Saeed Almarri.
As Dubai witnesses a fast recovery from the virus and registers strong growth in the first half of 2021, the global business and investing communities started recognizing DWTC as the most preferred business destination. New company registrations grew by almost 300% year-on-year with 427 new companies registering in 2021.
DWTCA has long played a major role in diversifying the economy of Dubai and has always strived to create a bigger economic impact by attracting FDI through business setup in Dubai free zone.
