JobXDubai

The rise of family offices in Dubai signifies a growing recognition of the importance of tailored wealth management solutions for affluent families. Image: Shutterstock

Family offices are fast emerging as the new focal points for attracting and routing high-value investments in Dubai’s real estate sector, providing tailored solutions in sync with the unique goals and values of the ultra-rich, industry insiders said.

The Rising Trend

The rising trend is leading to a surge in opening of foundations and entities connected to prominent family businesses and individuals at the Dubai International Financial Centre (DIFC). At the last count, as many as 440 registered foundations and more than 600 active entities connected to prominent family businesses and individuals are estimated to have been located at the DIFC, which is becoming a focal point for family office activities in Dubai.

Dubai’s Wealth Influx

Industry insiders said the continued influx of billionaires, centi-millionaires and high-net-worth individuals add to aiding the family offices’ rising role in attracting and managing investment activities of the rich and famous. According to the World’s Wealthiest Cities Report 2023, Dubai is home to approximately 68,500 HNWIs, 206 centi-millionaires, and 15 billionaires, making it a highly attractive destination for wealth management and investment opportunities.

Weather-Proofing Investments

The recent extreme weather incidents highlighted the need for the incorporation of climate-resilient designs in real estate projects as an additional measure to both re-assure investors and also to protect their investments. Dubai – as also many other parts of the region – faces formidable challenges from its scorching summers, threat of rising sea levels, and, of late, of flooding.

Expert Insights

“As Dubai continues to evolve into a hub for personal and multi-generational financial services, the establishment of single or multi-family offices within the DIFC has been actively encouraged,” said Sachin Kumar Singh, Business Head and Managing Partner at Foremen Fiefdom, a leading Dubai-based real estate service provider.

“By prioritising climate-resilient infrastructure and properties, we can forge a sustainable path for Dubai’s real estate market, ensuring its allure for residents seeking a comfortable, progressive lifestyle,” Singh added.