Dubai has emerged as a major hub for family offices, with entities in the city managing over $1 trillion in assets.
This development reflects the growing appeal of the emirate to ultra-high-net-worth individuals seeking favorable financial environments.
The United Arab Emirates is projected to become the leading destination for relocating millionaires in 2024, according to Henley & Partners.
Dubai’s appeal stems from its favorable tax policies, low crime rates, and strategic location connecting Europe, Asia, and Africa.
Arif Amiri, CEO of the Dubai International Financial Centre (DIFC) Authority, confirmed the milestone during the Future of Finance event. “The DIFC is home to over 120 families and 800 family-related structures, collectively managing more than $1.2 trillion in assets,” he stated.
Notable entrants include Nigeria’s richest billionaire Aliko Dangote, who has reportedly established a family office in Dubai. The rise in family offices underscores Dubai’s role as a secure and efficient base for managing significant wealth portfolios.
What we know
Dubai has seen a sharp increase in wealth management vehicles. Registered foundations in the DIFC grew by 53% last year, reflecting the demand for structures supporting generational wealth and estate planning. Neighboring Abu Dhabi recorded a 35% increase in similar registrations, bolstered by its $1.5 trillion in sovereign wealth funds.
- Dubai’s financial sector has expanded significantly. The number of professionals employed in the DIFC surged by 66% since 2019, reaching nearly 44,000 by mid-2024. This includes major hedge funds such as Millennium Management and Balyasny Asset Management, which have established operations in the city.
“We are one of the top ten global hubs for hedge fund activity,” Amiri noted. “Based on current growth trends, we are on track to break into the top five in the near future.” To meet the growing demand, the DIFC is developing three new office towers.
- Dubai’s rise as a family office hub aligns with its broader ambitions to become a leading global financial center. With a record number of firms expected to establish themselves in 2024, the city continues to strengthen its position as a preferred destination for wealth management and investment activity.
- Rothschild & Co has joined the list of global financial firms capitalizing on Dubai’s booming wealth market. On Tuesday, the bank announced the opening of its Dubai wealth management office, which will cater to UHNW families, entrepreneurs, charities, and foundations in the region.
The office, already operational, is designed to strengthen Rothschild’s local presence while complementing its Geneva-based Middle East team. The firm’s move underscores Dubai’s growing appeal as a hub for wealth management services, positioning it as a strategic base for global financial institutions.
