(MENAFN-Mid-East.Info) Dubai, United Arab Emirates: The Dubai World Trade Center Authority (DWTCA) today announced new regulations to encourage family businesses to license Single and Multiple Family Office (SFO & MFO) with the free zone.
The regulations meet the needs of family entities and introduce a new platform for high net worth families to set up offshore holding companies within the DWTCA’s designated free zone to manage their global private family wealth, assets and investments. from Dubai, the financial services capital of the MENA region.
Dubai has become one of the most popular cities in the world for ultra-wealthy families, after more than 2,000 wealthy people settled in the emirate in the first six months of 2021. The population of HNWI of the city grew 3.8%. at 54,000, up from 52,000 in December 2020. The business outlook and low-risk environment of the emirate make it an excellent prospect for single and multiple Family Offices, Trusts and Foundations.
Speaking on the development, His Excellency Helal Saeed Almarri, Managing Director of the Dubai World Trade Center Authority (DWTCA), said: “Family businesses are a very important segment in today’s global economic landscape and are an integral part of the the wider international investment community. After an exceptionally difficult year, family businesses around the world have demonstrated extraordinary resilience and agility and are eager to diversify and expand into new markets. The DWTC Authority recognizes the need for a specialized legal and regulatory framework that provides distinct flexibility and fundamental benefits for the establishment of single and multiple Family Offices in Dubai, providing an attractive environment that helps Family Offices to function with success ”.
DWTCA’s SFO regulations allow offshore entities, founded directly by members of the same family, to own and manage their collective wealth, assets, businesses and investments by incorporating a new Free Zone Establishment (FZE) or a free zone company (FZCO), subsequently licensed to operate from the free zone designated by the DWTCA.
Whereas the new MFO regulations are aimed at growing international providers of professional and wealth management and advisory services seeking to operate and expand their market presence and management portfolios in the MEASA region. MFO licenses facilitate and enable the services offered to many families, their members, businesses, entities, trusts and foundations.
Through its new regulatory framework, DWTCA reaffirms its commitment to family businesses and Dubai’s position as an attractive hub for local, regional and international family offices. New SFO regulations follow last month’s agreement between DWTCA and the Securities and Commodities Authority (SCA) to create a framework to support the regulation, offering, issuance, listing and trading of crypto assets and related financial activities within the DWTCA Free Zone.
DWTCA has become a highly sought-after FTZ after a period of strong growth in the first half of 2021, with 427 new business registrations, representing 300% year-over-year growth over the same period in 2020.
HE Helal Saeed Almarri added: “The DWTC Authority has made great strides this year as a free zone of choice for the investment community. With Dubai’s favorable business environment, best-in-class regulatory options and comprehensive forensic ecosystems, we are confident to maintain this momentum. The DWTC Authority will continue to review and update regulatory and licensing offerings to ensure that we always present unique investment opportunities to the international business community. “
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