Family offices and UHNW investors expected to boost UAE's wealth to $1 trillion by 2026

Marcus Baram
Author Marcus Baram
Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.
Aug 31, 2023
1 month ago
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Dubai

As Dubai has grown in importance as a regional hub for family offices and ultra-high-net-worth individuals, the UAE’s financial wealth is expected to spike at an annual rate of 6.7% and reach $1 trillion by 2026, according to the findings of the 2023 Global Family Office Compensation Benchmark Report by KPMG and Agreus.

Many wealthy families have been drawn to the country due to its tax advantages, strategic location, robust financial services sector and luxury amenities. Family offices in the region have been aggressive about increasing their wealth and preserving their legacy – nearly half (47%) of family offices in the UAE have a succession plan in place, and 30% of CEOs in the country are able to earn more than 50% of their salary as an additional bonus, per the report. 

“Middle East family offices are approaching 2023 with an educated outlook,” said Raajeev B. Patra, a partner and head of private enterprise at KPMG Lower Gulf. “Previously, many family offices focused heavily on investments and less on having a robust sophisticated operational infrastructure, but this trend has changed. The regulatory framework in the UAE more specifically has been a significant driver in attracting family offices to set up in the country.”

Part of that regulatory framework involves the implementation of supportive initiatives such as investor-friendly policies and streamlined business setup processes. 

In addition, UHNW families in the country are increasingly introducing employee participation schemes like profit sharing, rise in B corps and interest in employee ownership trusts, according to the report.

Marcus Baram
Author Marcus Baram
Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.