The Dubai World Trade Centre Authority recently issued new regulations to encourage family businesses to establish Single and Multiple Family Office (SFO & MFO) licenses with the free zone.
The regulations were issued in order to aid the needs of family-run entities and introduce a new platform for wealthy families to set-up offshore holding companies within DWTCA’s designated free zone to manage their private family global wealth, assets and investments from Dubai, the MENA region’s financial services capital.
Helal Saeed Al Marri, Director-General of DWTCA, said,
"Family businesses are a highly significant segment within today’s global economic landscape and are integral to the wider international investment community. Following an exceptionally challenging year, family businesses worldwide have shown extraordinary resilience and agility, and are eager to diversify and expand into new markets. DWTC Authority recognises the need for a specialised legal and regulatory framework that offers distinct flexibility and fundamental benefits for setting up Single and Multiple Family Offices in Dubai, providing an attractive environment that supports Family Offices to operate successfully."
DWTCA’s SFO regulations allow for offshore entities, founded directly by members of a single family, to own and manage their collective wealth, assets, businesses and investments through incorporating a new Free Zone Establishment (FZE) or Free Zone Company (FZCO), subsequently licensed to operate from DWTCA’s designated free zone.
Whereas the new MFO regulations cater to the growing international professional and wealth management and advisory service industry providers looking to operate and expand their market presence and management portfolios in the MEASA region. MFO licenses facilitate and enable services offered to multiple families, their members, businesses, entities, trusts and foundations.
Through its new regulatory framework, DWTCA is reaffirming its commitment to family businesses and Dubai’s position as an attractive a hub for local, regional and international family offices. The new SFO regulations follow last month’s agreement between DWTCA and the Securities and Commodities Authority (SCA) to create a framework supporting the regulation, offering, issuance, listing and trading of crypto assets and related financial activities within DWTCA’s free zone.
Al Marri added,
"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. DWTC Authority will continue to review and update regulatory and licensing offerings to ensure we always present unique investment opportunities to the international business community."
News Source: Emirates News Agency
