Family Office
Over the past decade, the UAE has become a leading private wealth management hub and global gateway for UHNW individuals and their families. The growing single-family office (“SFOs”) ecosystem is a key part of this momentum.
One the one hand, there are local needs. Family- owned businesses are a cornerstone of regional wealth generation and the region is on the cusp of an unprecedented intergenerational transfer of wealth. Established by UHNW individuals (“UHNW”) – usually those with a net worth of over USD30 million – to manage positive cash surplus, and safeguard exponentially growing wealth for future generations and sensibly pass it to their heirs, SFOs work at the nexus of these events.
On the other hand, in a context of high inflation and economic uncertainty, many have opted to shift their proprietary investment infrastructure to the Gulf, convinced by the UAE’s clear and effective policymaking combined with fundamentals such as security, political stability, high GDP, a fiscally advantageous climate and world class connectivity. An estimated 4,000 millionaires have flocked to the UAE in 2022, a number predicted to increase by 50% over the next 10 years.
Recent Work
The Brief
Advised on the corporate, tax and legacy planning aspects vis-a-vis the relocation of the functions of a Singaporean based SFO to the UAE, taking advantage of an existing ADGM holding corporate structure.
What We Did
Conversion of an existing ADGM holding company into an ADGM SFO, and incorporation of an ADGM Foundation to own the SFO, as well as an existing ADGM SPV, which in turn owns several classes of assets.
What Was Achieved
SFO functionality, tax efficiency, consolidation and succession planning/wealth preservation were achieved by the proposed corporate structure in the UAE.
How we can help
With 610+ SFOs/PICs under administration, we have second-to-none experience and local practical know-how structuring SFOs in the DIFC and ADGM.
Working closely with families, we aim to fulfil the role of trusted advisor, providing guidance on all legal and wealth management needs and sourcing the best team to achieve the family’s objectives. Irrespective of the stage of the family’s wealth management journey [See chart ‘The SFO’s Evolutive Journey of a family office], we meticulously organize and safeguard family assets while architecting strategies and vehicles to optimise the SFO arrangement in line with the family’s investment strategy and needs at the time.
Recognizing the dynamic nature of family structures, we are regularly entrusted by families to scrutinize their existing frameworks and operations. Our guidance brings forth a transformative touch, offering pathways to enhance and refine these structures, ensuring they are optimized for future prosperity.
