There is great care required in managing family wealth in today’s fast-changing financial world. The basis of multigenerational wealth management involves prudent means for families and businesses to find intelligent solutions that accord with their values and long-term goals. With the huge increase in private wealth in the MEASA region, most particularly among very rich individuals or UHNWIs, the need has grown even greater for more sophisticated strategies of wealth and asset management.
DIFC is one of the world’s foremost financial hubs. It gives an overall framework relating to wealth and asset management firms, hence making it a primary hub for family wealth management. DIFC has risen to become the most sought-after destination in the conduct of the wealth management business in the region today. This free zone offers a secure and efficient, yet friendly, environment wherein families can safely turn over their family wealth to competent and skilled advisors and asset managers.
A Great System of Managing Wealth
DIFC has been termed the best financial hub in the MEASA region, standing for the Middle East, Africa, and South Asia. The place is home to over 330 firms dealing in wealth and asset management. The Centre has built a strong international system serving the diversified needs of family offices, ultra-high-net-worth individuals, and institutional investors. The system is based on the best possible legal and regulatory frameworks that indeed create a safe environment for the management of wealth and assets.
Following are some key points about the DIFC ecosystem:
- Regulatory Excellence: Ensuring a sound and clearly defined rulebook, it is entrusted to the Dubai Financial Services Authority to ensure that they follow international best practices-a factor that should give confidence to families in their plans for wealth management.
- Collaborative Approach: DIFC offers a unique teaming model that forges powerful links between its clients, regulators, and authorities. This model helps create a setting in which the professionals dealing in wealth management can work closely with the clients to address their unique needs and develop solutions befitting their requirements.
- Industry Size and Growth: The DIFC’s wealth and asset management industry was estimated at over $450 billion, including assets under management of over $165 billion. Such a vibrant environment means that family wealth managers can benefit from a broad spectrum of investment opportunities and solutions.
Family Wealth Centre: Safeguarding Legacies
The Family Wealth Centre at DIFC is a first of its kind, developed to respond to the increasing demand for wealth management by family businesses and ultra-high-net-worth individuals from across the Middle East. Given that an estimated AED 3.67 trillion is set to transfer to the next generation over the decade ahead in the region, this unique centre will support families in their quest to demystify the usually complex mechanisms of transferring their wealth and planning their estates in relation to perplexing inheritance laws to secure their legacies.
Family Wealth Management Solutions
The DIFC offers a broad choice of personalized services covering:
- Wealth Management: Investment planning, portfolio management, financial planning, and diversification.
- Asset Management: Access to private equity funds, hedge funds, and venture capital projects.
- Estate and Inheritance Planning: Third-party advice on succession of assets, including Sharia-compliant solutions.
- Real Estate Advisory: Professional real estate investment advice concerning the rapidly growing local market.
Conclusion
With the best regulatory environment, including innovative solutions like the Family Wealth Centre and its strategic location, DIFC is best placed to create and preserve family wealth across the entire Middle East and beyond.