Dubai Family Offices Oversee Over $1 Trillion in Assets

Dubai has emerged as a significant global hub for family offices, with entities based in the city managing over $1 trillion in assets.

This growth is attributed to an influx of high-net-worth individuals and favorable conditions for wealth management.

The Dubai International Financial Centre (DIFC) hosts over 120 family offices and 800 related structures, collectively controlling more than $1.2 trillion. These family businesses contribute substantially to Dubai’s economy, aligning with the UAE’s growing reputation as a top destination for wealthy individuals. A report from Henley & Partners predicts the UAE will attract the most millionaire relocations this year.

Key factors driving this growth include Dubai’s advantageous tax policies, low crime rates, and strategic geographic location. Prominent figures, such as Nigerian billionaire Aliko Dangote, have established family offices in the city, further cementing its appeal to the ultra-wealthy.

The number of registered foundations, a favored structure for managing family wealth, surged by 53% in Dubai last year. Abu Dhabi also saw growth, with a 35% increase in foundations, supported by its $1.5 trillion in sovereign wealth funds.

Dubai’s financial sector has expanded rapidly, with employee numbers at DIFC rising by nearly 66% since 2019, reaching approximately 44,000 by mid-2024. Global financial firms, including Millennium Management and Balyasny Asset Management, have bolstered the city’s hedge fund presence, employing over 1,000 individuals. DIFC is building three new office towers to meet the growing demand as it anticipates a record number of new firms setting up operations this year.

Dubai is now ranked among the top ten locations globally for hedge fund activity and is on track to secure a spot in the top five in the coming years, reflecting its increasing prominence in the global financial landscape.