Dubai’s financial hub is now home to family offices that control more than $1 trillion in assets, a Bloomberg report stated on Wednesday.
The development comes on the back of an influx of high-net worth individuals in Dubai over the past few years, it added.
“Family businesses contribute significantly to Dubai’s economy,” Arif Amiri, the chief executive officer of Dubai International Financial Centre Authority, was quoted as saying in the report.
“The DIFC is home to over 120 families and 800 family-related structures and entities who manage more than $1.2 trillion in assets,” he said at the Future of Finance event in the city.
The United Arab Emirates (UAE), of which Dubai is a part, is poised to be the top destination for relocating millionaires this year, according to a report from migration advisory firm Henley & Partners.
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Nigerian billionaire Aliko Dangote is among those setting up a family office in Dubai, Bloomberg reported.
Dubai is a premier destination for family offices due to its strategic location, tax advantages, and robust financial ecosystem. Positioned at the crossroads of Europe, Asia, and Africa, the emirate offers global connectivity, making it ideal for managing cross-border investments and operations.
In another report of Henley & Partners earlier this year, Dubai was ranked the third-richest city among all countries that come in the BRICS bloc.
“Dubai is in third place, living up to its reputation as the ‘City of Gold’ with 72,500 millionaires making it their home, of whom 212 are centi-millionaires and 15 are billionaires,” the migration advisory firm said in its report.
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It also said UAE’s millionaire population has shot up since 2013 by 77%, “and the Middle East’s leading wealth hub is now home to 116,500 millionaires, including over 300 centis”.
Data released by real-estate consultancy Knight Frank showed total sales of the ultra-luxury property segment reached $2.3 billion (DHS8.4 billion) last year as demand for luxury in Dubai remained robust.
The employee numbers at DIFC surged by two-thirds since 2019 to nearly 44,000 in June this year, including some of the biggest hedge funds, from Millennium Management to Balyasny Asset Management, and the industry employs over 1,000 people in the city, Bloomberg reported.
The DIFC expects a record number of firms to set up this year too, and is building three new office towers to meet the anticipated demand, it added.
“We are now one of the top ten locations in the world for hedge funds activity,” Arif Amiri said. “And based on the current trajectory, we are on track to become one of the top five in the coming years.”
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UAE’s Economic Agenda D33 aims to make Dubai the world’s fastest, safest, and most connected city.
The ambitious plan to double Dubai’s gross domestic product (GDP) and foreign direct investment (FDI) to 32 trillion AED and 650 billion AED by 2033 is supported by substantial investments in innovation and technology, including fintech, artificial intelligence, and blockchain.
Since the establishment of the DIFC in 2004, the UAE has distinguished itself as the Middle East’s leading financial hub, offering a premier platform for financial institutions to thrive.
As of September 2024, Dubai ranks 16th in the Global Financial Centers Index (GFCI), Zawya reported on Wednesday.
Last month, Dubai Land Department launched the Real Estate Sector Strategy 2033, targeting doubling the sector’s GDP contribution to AED73 billion and pushing the market value to AED 1 trillion.
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The strategy outlined a focused roadmap to elevate the sector’s economic impact on the emirate by “significantly increasing transaction volumes and reinforcing its appeal as a premier destination for international investors”, according to a report in Emirates News Agency (WAM).
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