DWTC Family Office Regime Now in Effect

As part of its Free Zone Rules and Company Regulations, the Dubai World Trade Centre (“DWTC”) has introduced Single Family Office (“DWTC SFO”) and Multi Family Office (“DWTC MFO”) Regulations and Licensing Schemes (“Regime”), designed for families to manage their global private wealth portfolios.

The Regime came into effect under Circular No. (12), pursuant to Rule 4.6 of the DWTCA Free Zone Rules and Regulations as well as clause 134 of the DWTCA Company Regulations.

Under the Regime, some new solutions have become available that will allow family businesses to secure, consolidate and manage their wealth, business interests and investment assets, ranging from real estate to different kinds of companies and businesses, under the DWTC vehicle(s).

DWTC SFO

An SFO can be established in the DWTC by members of a single family. This vehicle can be utilised to own and manage the affairs of that single family, under a dedicated license. Under the DWTC SFO, the family can benefit from professional and administrational services such as, but not limited to, wealth, assets, investment, succession, governance, financial and/or legal affairs, compliance, secretarial and/or concierge services, that would be provided to the single family, its members, businesses, entities, trusts or foundations.

Key Benefits

• Minimal requirement of only AED 500,000 (USD 136,000) in proven liquid assets, held by the single family;
• No restrictions on the number of family generations the structure can concern;
• Ability to employ non-family members for any or all of the Professional and Administrational Services required by the SFO;
• Flexibility to allow up to 49% of SFO’s control with non-family members;
• 100% Foreign Ownership; and
• 100% Repatriation of capital and profits.

DWTC MFO

As family businesses expand their operations geographically and venture into multiple sectors of operation, they often seek support of a professional firm who specialise in looking after family businesses.

The second vehicle the DWTC have introduced, namely the DWTC MFO, is dedicated to those professional service providers, consultants or advisory firms, specifically.

Firms who would like to advise families on their wealth-related matters, and assist with certain administrative matters in this regard, would be now able to apply for a DWTC MFO license and assist multiple families as their clients, with family wealth administration.

Key Benefits

The DWTC MFO has the following advantages:

• Allows professionals to advise multiple families under one DWTCO MFO license;
• 100% Foreign Ownership;
• 100% Repatriation of capital and profits.

Why SFO/MFO at DWTC?

As the family businesses expand, and the need for specialist family office assistance increases, the introduction of the Regime by the DWTC seems to be an excellent step towards boosting family business activity in Dubai, and the UAE overall.

Families that have onshore Dubai operations can locate them in DWTC, alongside the DWTC SFO. Professionals who used to provide global support to multiple families under their European or Asian operations can now establish presence in the DWTC.

It seems, with the introduction of the DWTC SFO and the DWTC MFO, the DWTC is ideally-placed to become home for high net worth families, exploring secure and flexible platforms for the management of their family wealth, assets, businesses and interests, as well as professionals who wish to provide their assistance to those families.

How we can help:

Our team will be delighted to assist you in registering and securing ongoing compliance of a DWTC SFO/ MFO by:

1. Advising you on the Regime;
2. Assisting you with the incorporation process of a SFO or MFO under the Regime; and
3. Advising and assisting you on complying with the DWTCA laws and regulations in relation to the operations of your SFO/ MFO.