The United Arab Emirates (UAE) has built its name for being the safe haven for ultra-high-net-worth individuals and families in recent years. With the introduction of favourable regulatory frameworks and policies, the country is set to be the next Family Office hub.
The UAE recorded an astonishing net inflow of more than 2,000 millionaires in 2021 alone. With its strategic location, favourable tax regime and robust economy, the UAE has gradually developed into an ideal destination for Family Offices. Among all the emirates, Dubai and Abu Dhabi are major drivers of the growth of the Family Office industry in the country.
Dubai, the second largest emirate of the country is no stranger to the ultra-rich world. Known for its low taxes and luxurious lifestyle, the city is home to many ultra-high-net-worth individuals and families. Dubai International Financial Centre (DIFC) is a special economic zone in Dubai that is widely recognised for being a leading financial hub for private wealth. The city has taken multiple measures to further enhance its appeal to Family Offices. DIFC has recently introduced Family Arrangements Regulations that allow Family Offices in the UAE to operate without registering with the Dubai Financial Services Authority as a ‘designated non-financial business or profession’. As a result, Family Offices in the region will no longer be required to disclose the name of the common ancestor, source of wealth and amount of equity. Family Offices value privacy and discretion as they serve wealthy families who often wish to keep their financial affairs private, therefore an influx of Family Offices to the region is envisioned following the implementation of this new rule.
Abu Dhabi Global Market (ADGM) is an international financial free zone located in Abu Dhabi, the capital of the UAE. The ADGM offers a tailored approach to Family Offices and a well-established investment eco-system with numerous big hedge funds, venture capital firms and crypto companies. As an effort to entice Family Offices, ADGM facilitated the launch of the Emirates Family Office Association, an organisation that aims to connect local and international Family Offices through a trusted platform. Subsequently, we are seeing remarkable growth in the number of Family Offices. Ray Dalio, the founder of the hedge fund Bridgewater Associates, is one of the high-profile individuals to set up a new Family Office in the UAE recently. With an estimated personal fortune of $19 billion, Dalio announced the launch of his new Family Office in ADGM as part of his venture in the Middle East. The Abu Dhabi office will help manage Dalio’s investments as well as his philanthropic activities alongside his US and Singapore offices.
As mentioned in our previous article, Hong Kong, the top Asian Family Office hub is now forging closer ties with the Middle East. The increased collaboration between two regional Family Office hubs will provide immense opportunities for Family Offices in both regions to prosper. The UAE is poised to become a leading jurisdiction for Family Offices in the years to come. A tremendous growth in Family Office activities and a surge in demand for top Family Office talent in the Middle Eastern region is anticipated. That being said, Family Offices often lack the knowledge and capability to identify suitable candidates and compensation trends. Though there is the availability of local talent in the region, it has always been challenging for Family Offices when it comes to attracting and more importantly, retaining talent.
Agreus is an established full-service resources and recruitment consultancy dedicated to working exclusively with Family Offices. We have worked with Family Offices worldwide and have established a global presence. For a more tailored conversation about hiring for your Family Office in the Middle East, please do not hesitate to get in touch. Apart from recruitment, we have also created the world’s biggest Family Office Compensation Benchmark Report in collaboration with KPMG Private Enterprise which is set to be released in June 2023. We pride ourselves on adding value to the industry and will continue to closely monitor the trends in the Family Office space.
If you are interested in working for Family Offices in the Middle East, please see the link below:
https://www.agreusgroup.com/family-office-jobs/?_sfm_job-location=Middle%20East