In recent years, the United Arab Emirates (UAE) has established itself as a global hub for Family Offices, with significant impacts on the local and regional economy. With its strategic location, favorable tax environment, and robust financial services sector, the UAE—particularly Dubai and Abu Dhabi—has increasingly attracted Family Offices. This development supports the region’s economic diversification and attracts substantial private capital.

Attractive Location for Global Private Wealth
According to the Family Office Compensation Benchmark Report by the consulting firm KPMG in 2023, the contribution of Family Offices to the UAE’s economic performance is higher than in many other countries. In 2021, wealth in the UAE grew by an average of 20%, with 41% of this attributed to Family Offices or ultra-high-net-worth individuals (UHNWIs). This figure is expected to rise to 46% by 2026, with average wealth increasing by 6.7%. The significance of Family Offices is, therefore, set to grow further.
The UAE offers a secure environment for ultra-wealthy individuals and families. Thanks to welcoming regulatory frameworks and policies, the country has positioned itself as a new hub for Family Offices. The absence of inheritance and wealth taxes makes the UAE a tax-efficient location for wealth management. Additionally, the geographical location and thriving financial ecosystem provide Family Offices access to a wide range of investment opportunities, including popular asset classes such as private equity and real estate.
By implementing favorable tax policies, the UAE actively positions itself as an ideal destination for Family Offices. According to a recent report, the UAE is expected to see an influx of 4,500 millionaires in 2023 alone, with a significant portion coming from Indian Family Offices. These are particularly attracted by the relaxation of business ownership rules and residency options. In this context, Dubai and Abu Dhabi have become the primary drivers of the growth of the Family Office industry in the country.
Safe Haven for Wealth Management
The UAE has successfully established itself as a safe haven for ultra-wealthy individuals and their Family Offices. This is mainly due to the country’s favorable regulatory frameworks and political initiatives aimed at attracting these wealthy families. In particular, the introduction of tax incentives, such as the absence of inheritance and wealth taxes, makes the UAE an efficient location for wealth management. Additionally, the UAE’s geographical location—strategically positioned between Europe, Asia, and Africa—and its thriving financial ecosystem are major attractions for Family Offices seeking access to a broad spectrum of investment opportunities, including popular asset classes such as private equity and real estate.
Drivers of Economic Diversification
Family Offices contribute significantly to the diversification of the UAE’s economic base. Through their investments in local businesses, real estate projects, and other economic sectors, they not only foster direct economic growth but also strengthen the UAE’s regional and international connections. The presence of these offices in the UAE promotes innovation, attracts expertise, and creates jobs, which in turn bolsters the country’s economy and increases its global influence.
Growth and Professionalization of Family Offices
The UAE, particularly Dubai and Abu Dhabi, is witnessing a rise in the establishment of Family Offices, driven by the appeal of their cosmopolitan cities, state-of-the-art infrastructure, and diverse investment opportunities. These cities have become hubs of global trade and offer a compelling ecosystem for Family Offices to engage with international markets, drive innovation, and pursue cross-border ventures. The UAE’s efforts to promote a business-friendly environment and diversify its economy beyond the oil sector have attracted significant foreign investment and expertise. This has contributed to the growth of Family Offices, as both local and foreign entrepreneurs seek to capitalize on the UAE’s potential for wealth creation and preservation.
Strategic Initiatives and Regulatory Adjustments
The Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) have introduced specific regulations and structures tailored to the needs of Family Offices. These initiatives enhance the attractiveness of the UAE for global Family Offices by providing a familiar and navigable legal environment while respecting the privacy and requirements of the families.
Promoting Economic Development
The presence of Family Offices in the UAE contributes to economic diversification by investing in local businesses, real estate, and other sectors. These investments promote economic growth and create jobs while also strengthening international relationships and cooperation. The long-term nature of Family Office capital and their willingness to invest in local markets support the development of a stable and sustainable economy.
Summary
The UAE has successfully positioned itself as an attractive destination for Family Offices worldwide, playing an important role in the region’s economic landscape. By providing a favorable business environment, attractive tax incentives, and a robust financial infrastructure, the UAE supports the establishment and growth of Family Offices. This development not only contributes to the diversification and strengthening of the local economy but also positions the UAE as a leading global hub for family wealth and investments.