Dr. Habib Al Mulla, Chairman of the Dubai Financial Services Authority (DFSA), announced today the setting up of a Family Project Office at DIFC to better manage the financial planning and succession issues of large family-owned enterprises in the UAE and the region.
He announced the new office in a presentation to The Society of Trust and Estate Practitioners (STEP) Arabia conference. The conference runs from April 25-26 at the Emirates Towers hotel, Dubai.
A global body, STEP has more than 11,000 members working in the legal, accountancy, trust, banking, and insurance fields. STEP practitioners advise on all aspects of trust, personal tax and estate planning including inheritance issues and trust management.
Addressing delegates, Dr. Habib said: “There are more than 5,000 family businesses worth US$500 billion in the GCC, accounting for 75 per cent of the private sector economy and hiring 70 per cent of labour in the Gulf.”
He said: “Nearly 95 per cent of family businesses do not survive the third generation of ownership. DIFC is aware of these challenges and ensures that its tax treaty network, international regulatory framework and stock exchange provide the ideal base for the family office. To continue on our path of rapid progress we are adding one more crucial segment in the form of the Family Office.”
“This is a growing sector and we are proud to say that we are developing the perfect cluster, infrastructure and environment to involve service providers and users under one roof.
“The DIFC Trust Law has been enacted to provide vehicles and structures to help better manage the succession of family wealth.”
Roberto Julfar, Legislative Counsel of the Dubai Financial Services Authority, will discuss new rules for trust service providers on April 26 at the STEP Arabia conference
Dr. Habib outlined the major DIFC’s achievements to date: the launch of the Dubai International Financial Exchange (DIFX), the enactment of the DIFC Trust Law, and the proactive establishment of an institute for corporate governance, Hawkama, dedicated to promoting business ethics and transparency at the centre and in the wider UAE.
The Dubai Financial Services Authority (DFSA) is a central component of the Dubai International Financial Centre (DIFC), a new financial centre established to position Dubai as a recognised hub for institutional finance, and the regional gateway for capital and investment to the Middle East.
The DFSA is an independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the Centre, including asset management, banking, securities trading, Islamic finance, re-insurance, and an international financial exchange. The DFSA has been created using principle-based primary legislation modelled closely on that used in London and New York, and the DFSA regulatory regime operates to standards that meet or exceed those applying in the world's major financial centres.
