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.