EXPO 2020 in Dubai being the major factor and as expected after BREXIT 3,500 millionaires are willing to move to U.A.E. Dubai is the 5th topmost secured place to park your assets and offers a luxury living standards besides being a tax heaven jurisdiction. Not only do investors and entrepreneurs consider to start up their business in UAE or Dubai but also consider to operate their Business offshore via Dubai and perhaps even run their family offices. The Dubai International Financial Centre is a free zone amongst the many other free zones in Dubai and one of the best financial centers around the globe and going to be world class in its future.
DIFC is stationed at halfway point of Dubai, having its own court which includes highly experienced judges from World Class principal common law Jurisdictions inclusive of Singapore, Hong Kong & England.
DIFC is governed by two main authorities, which includes DIFC itself for most of the non-financial activities and DFSA (Dubai Financial Services Authority) for governing and regulating the conduct of financial services in and from the DIFC.
DIFC has its own independent arbitration center that implements the rules emulate on the London Court of International Arbitration.
As the world population is sprouting, so is the Ultra High Net Worth Individuals (HNWI). According to Merrill Lynch & Cap Gemini’s World Wealth Report, there are more or less 85,500 HNWI’s with equity of US$.30 trillion around the globe.
According to FAMILY FIRM INSTITUTE succession planning survey, only 30% of businesses transfer to second generation, 12% still operable into 3rd generation & only 2-4% of all the family businesses trickle down to the fourth generation or beyond. So, that is why desideratum of family office originates for HNWI’s.
Family office is an office that is an intimate wealth management advisory firm that assists HNWI’s, which is much more exclusive than conventional wealth management companies that offer all out source finance and investments services to individuals or families.
Family offices are incorporated for two basic purposes:
- Family expenses, which may include daily expenses or family supporting
- Financial Planning and Investments
DIFC offers three main group of activities under which Single Family Office (SFO) is listed as below