Paradigm Shift in Ultra-Wealth Management: Dubai Emerges as the New Epicenter of Family Offices

Comprehensive operations from wealth management to inheritance and accounting
Global family office assets reach $5.5 trillion
Dubai establishes infrastructure to attract UHNW individuals

The world’s ultra-high-net-worth individuals (UHNW) are shifting their focus from conventional investment management to “family offices.” The growing demand reflects a broader need for sophisticated, professionalized services that integrate investment, asset preservation, and intergenerational wealth transfer. Amid this transition, the United Arab Emirates (UAE) is rapidly rising as a new hub for global wealth management. In the wake of the COVID-19 pandemic and the Russia–Ukraine war, the influx of private capital has accelerated toward jurisdictions combining openness with aggressive foreign investment incentives — positioning Dubai at the forefront of the global family office ecosystem.

Wealth Management’s New Trend: From Asset Managers to Family Offices

According to Deloitte, there were approximately 8,030 family offices worldwide as of 2024, managing assets valued at around $5.5 trillion. By 2030, these figures are projected to reach 10,720 offices and $9.5 trillion, respectively — a growth driven by rising personal wealth and global demographic aging.

Global consulting firm Capgemini reports that, as of last year, there were 23.4 million high-net-worth individuals (with assets exceeding $1 million) and 234,000 ultra-high-net-worth individuals (with assets over $30 million). Although UHNW investors represent only about 1% of all HNW individuals, they control 34% of total HNW wealth — roughly $90.5 trillion — underscoring the extreme concentration of capital among the global elite.

Managing wealth ranging from hundreds of millions to billions of dollars, family offices have become a symbolic and strategic domain within wealth management. The concept dates back to 19th-century Europe, when the Rothschild family formalized private asset management through dedicated stewards. In the modern era, American oil magnate John D. Rockefeller popularized the term “family office,” and JP Morgan refined the model to oversee family assets and art collections. Today, the world’s most prominent entrepreneurs — including Bill Gates, Jeff Bezos, and Mark Zuckerberg — all operate their own family offices.

The proliferation of family offices is reshaping the financial industry, especially the traditional fee-based wealth management model. As more families opt for direct investments, demand for conventional asset management has declined. Moreover, family offices are exerting growing influence on capital allocation and market dynamics — extending their reach into corporate governance, sustainability initiatives, and industrial direction through strategic partnerships and long-term investments.

Dubai’s Rise as a New Global Hub

Dubai has now emerged as the preeminent center of gravity for global family offices. In 2024 alone, the city attracted approximately 6,700 new millionaires — the largest inflow in the world — far outpacing the United States (3,800) and Singapore (3,500).

The UAE’s ascent as a global family office hub began during the pandemic. By swiftly deploying vaccines and reopening borders earlier than most countries, the UAE became a magnet for wealthy individuals from India, Russia, and beyond. According to KPMG, the UAE’s financial assets grew 20% in 2021 from the previous year, with high-net-worth individuals and family offices accounting for 41% of that growth — a share expected to rise to 46% by 2026.

The World’s Wealthiest Cities Report 2024 notes that Dubai is now home to about 80,000 residents with liquid assets over $1 million, along with 206 centi-millionaires (net worth above $100 million) and 15 billionaires. Ranking 18th globally, Dubai’s millionaire population has more than doubled over the past decade, with a 102% growth rate — the fastest among major world cities — confirming its status as the new epicenter of global wealth migration.

The UAE’s Family Office Ascent

Dubai’s momentum stems from its strategic location, political and economic stability, world-class security, and highly favorable legal and tax frameworks. Positioned at the crossroads of the Middle East, Africa, Asia, and Europe, the UAE offers family offices unparalleled access to global markets. Both Dubai and Abu Dhabi have established world-class financial free zones — the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) — providing strong legal protections and international investor confidence.

Both DIFC and ADGM operate independent legal systems based on English common law, with zero or minimal income and corporate taxes. Dubai, in particular, has deregulated the wealth management sector extensively, recognizing “family wealth management” as a distinct industry. In 2023, the DIFC launched the Family Wealth Centre and introduced comprehensive Family Arrangements Regulations, simplifying registration procedures so family offices can operate without complex licensing processes typically required of financial institutions.

ADGM, meanwhile, introduced the Restricted Scope Company (RSC) structure specifically for family offices. Unlike conventional corporations, RSCs are exempt from public disclosure and accounting submission requirements, offering a privacy-focused governance model similar to Singapore’s Variable Capital Company (VCC) framework. The UAE’s absence of personal income and capital gains taxes, coupled with no restrictions on foreign exchange or overseas investment, has further reinforced its status as a global wealth-friendly jurisdiction. Moreover, both DIFC and ADGM allow 100% foreign ownership, ensuring UHNW families can establish offices with full control and security.

Another key pillar in the UAE’s family office ecosystem is its foundation regime. Introduced sequentially across ADGM (2017), DIFC (2018), and the Ras Al Khaimah International Corporate Centre (RAK ICC) in 2019, the foundation framework enables families to establish independent legal entities without share capital — thus avoiding inheritance exposure. Founders can design governance structures, bylaws, and management rules tailored to their family’s long-term needs. Complementary family business laws safeguard business continuity and provide dispute resolution mechanisms, ensuring stability and multi-generational preservation of family wealth.