New DIFC rules to attract ultra-wealthy families

FAMILY AFFAIR: The DIFC has set up new regulations to cater for ultra-wealthy families. (Getty Images)

The Dubai International Financial Centre (DIFC) on Tuesday announced new regulations to attract ultra-wealthy families to establish Single Family Offices (SFOs).

The new rules specifically address the needs of family-run institutions and create a platform for wealthy families to set up holding companies at the DIFC to manage private family wealth and family structures anywhere in the world.

Dr Omar Bin Sulaiman, governor of the DIFC said: "In recent times, family offices have become highly significant on the global economic landscape.

"In the Middle East, where more than 75 per cent of firms are family-run and with total assets in excess of $1 trillion, the need for a specialised legal and regulatory framework is especially acute."

"In contrast to conventional financial institutions, SFOs have no direct public liability as shareholders are bloodline descendants of a common ancestor.

"As such, their regulatory requirements differ significantly. By establishing the new regulations, the DIFC is once again reaffirming its commitment to family run businesses thus addressing its desire to make the DIFC a hub for local, regional and international family offices."

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