Dubai is a business paradise. Thanks to the favorable tax climate, modern infrastructure, strategic location, and government’s business-friendly policies that cater to each segment of entrepreneurs.
Be it start-ups, SMEs or MNCs, it has the ideal business climate for everyone, the eco-system in Dubai is inclusive of all businesses irrespective of their size and industry. No wonder why the number of super-wealthy people in Dubai has grown exponentially by 3.8% in the first half of 2021.
Living up to the expectations again, Dubai World Trade Centre Authority (DWTCA) has introduced new rules and regulatory frameworks to facilitate billionaires in Dubai running family businesses in the country to manage their global wealth, investments, and assets within DWTCA’s designated free zone and expand their businesses internationally. It is primarily done to enable ultra-wealthy family businesses to set up single and multiple offices in the free zone by acquiring Multiple Family Office (SFO & MFO) licenses. The new bill aims at smooth functioning of their offshore operations ensuring maximum profitability.
Dubai, being a global business hub, understands the importance of the matter. Entrepreneurs need an ideal business environment to flourish. Not only does it have the right ecosystem, but it amends rules and regulations to meet the evolving needs of the market. Dubai World Trade Centre Authority has taken the initiative to provide a solid platform that empowers super-rich family businesses through flexibility and more fundamental benefits. “Dubai has emerged as one of the most popular cities in the world for ultra-wealthy families after more than 2,000 high-net-worth individuals moved to the emirate in the first six months of 2021. The city’s population of HNWIs rose 3.8 percent to 54,000, up from 52,000 in December 2020. The emirate’s business-forward outlook and low-risk environment make it an excellent prospect for Single and Multiple Family Offices, Trusts and Foundation,” Dubai World Trade Centre Authority said.(Source)
2020 turned out to be an absolute nightmare. Nevertheless, family-based businesses have shown extraordinary resilience and agility. They just did not just endure and survive the pandemic but managed to navigate through the tricky waters of economic crisis exceptionally. Moreover, family businesses contribute significantly to the world economy and paramount for international investment.
Family-owned businesses can manage their collective wealth and business assets for their offshore entities through a new Free Zone Establishment (FZE) or Free Zone Company (FZCO) incorporation. Such businesses are now licensed to operate from DWTCA’s designated free zones.
These multiple family office regulations are positively welcomed by family businesses and are likely to enhance their market presence as well as better wealth portfolio management in the Middle East, Africa, and South Asia (MEASA region). The MFO licenses thus empower multiple families, their members, entities, trust, and foundations in Dubai to expand their footprints and become truly globally competitive.
The new framework regulations are a testament to DWTCA’s commitment to billionaires in Dubai who own family businesses to establish themselves as leading local, regional, and international market leaders. These new SFO frameworks are an agreement between Dubai World Trade Centre Authority (DWTCA) and The Securities and Commodities Authority (SCA) that took place last month. It supports regulations, issuance, listing, and trading of Crypto assets and other financial-related activities within the free zone of DWTCA.
It received an overwhelming response in the first half of 2021 given the strong H1 growth. 427 new companies applied for the registration making DWTCA the most sought-after free zone. It is staggeringly equivalent to 300 percent year-on-year growth compared to the same period in 2020.
“DWTC Authority has made strong progress this year as a free zone of choice for the investor community. With Dubai’s business-friendly environment, best in class regulatory options, and comprehensive judicial ecosystems, we are confident of maintaining this momentum,” said His Excellency, Helal Saeed Almarri, director-general of Dubai World Trade Centre Authority (Source)
He further added that Dubai will thrive to make these regulations and amendments more suitable and business-friendly to ensure Dubai stands tall among the international business community.
These new framework regulations are poised to give a great boost to billionaires in Dubai running family businesses. It empowers them to unleash the true potential of the domestic and international market. Not only does it help generate employment, but it is surely destined to make Dubai even more globally competitive.