“Coming from a ruling family, Al Khalifa opines ‘the importance and expansion of business are essential. I humbly believe that the family business is the foundation of any winning economy,'” said HE Sheikh Abdulaziz bin Duaij bin Khalifa Al Khalifa.
This quote from HE Sheikh Abdulaziz bin Duaij bin Khalifa Al Khalifa emphasizes the significance of family businesses in building a strong economy. Family offices and ultra-high net worth individuals (UHNWIs) are set to play a pivotal role in the UAE’s economic growth, with a projected contribution of $1 trillion to the economy by 2026. This projection is driven by an expected 46 percent increase in financial wealth over the next three years, demonstrating a compound annual growth rate of 6.7 percent.
To capitalize on this potential, family offices in the UAE are actively implementing strategies to enhance their wealth and reputation. Nearly half of all family offices in the UAE have already established succession plans, and a significant portion of CEOs stand to earn substantial bonuses. This reflects a shift towards a more informed approach to wealth management.
In recent years, the UAE’s supportive regulatory framework has played a crucial role in attracting family offices to the country. The government has introduced various programs and initiatives aimed at benefiting family businesses. Governance guidelines have been issued to assist these enterprises in establishing effective governance structures and ensuring seamless business transitions.
The UAE is quickly gaining prominence in the family-owned business sector, with initiatives like the Global Family Business and Private Wealth Centre at the Dubai International Financial Centre (DIFC) positioning the Middle East as a competitive hub for family offices. With the ease of relocation, favorable tax regulations, and a thriving business environment, the UAE is becoming an attractive destination for single-family offices, multi-family offices, and businesses alike.
As HE Sheikh Abdulaziz bin Duaij bin Khalifa Al Khalifa pointed out, “My Private Office has facilitated numerous family businesses and investors with their inception and networking with UAE’s families, and we look forward to assisting many more.” This reflects the growing opportunities and support available for family businesses and investors in the UAE, making it a promising environment for economic growth and success.