Dubai’s DWTC Authority announces regulations to license setup of family offices

The Dubai World Trade Centre Authority (DWTCA) announced new regulations to encourage family businesses to establish single and multiple family office (SFO and MFO) licenses with the free zone.

The regulations address the needs of family-run entities and introduce a new platform for wealthy families to set-up offshore holding companies within DWTCA’s free zone to manage their private family global wealth, assets and investments from Dubai, a statement said.

Dubai’s population of HNWIs rose 3.8 per cent to 54,000, up from 52,000 in December 2020.

Helal Saeed Almarri, director general of Dubai World Trade Centre Authority (DWTCA), said: “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 specialised 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.”

DWTCA’s SFO regulations allow for offshore entities, founded directly by members of a single family, to own and manage their collective wealth, assets, businesses and investments through incorporating a new free zone establishment (FZE) or free zone company (FZCO), subsequently licensed to operate from DWTCA’s free zone. MFO licenses facilitate and enable services offered to multiple families, their members, businesses, entities, trusts and foundations, the statement added.

The new SFO regulations follow last month’s agreement between DWTCA and the Securities and Commodities Authority (SCA) to create a framework supporting the regulation, offering, issuance, listing and trading of crypto assets and related financial activities within DWTCA’s free zone.

Read: UAE stock market regulator, Dubai World Trade Centre Authority agree to support crypto assets trading

DWTCA reported strong growth in the first half of 2021, with 427 new company registrations, equating to 300 per cent year-on-year growth over the same period in 2020.