DUBAI INTERNATIONAL FINANCIAL CENTRE PRESENTS FINDINGS FROM WEALTH MANAGEMENT WORKING GROUP CONSULTATION

-          Group consultation process identifies models of best practice to enhance the Centre’s offering to clients

-          Initiative supports DIFC’s focus on becoming a leading, regional wealth management and succession planning platform for GCC families

-          Recommendations help strengthen DIFC’s core offering to the international wealth management community

The Dubai International Financial Centre (DIFC) Wealth Management Working Group has presented a report to the Governor of DIFC, His Excellency Essa Kazim, which underlines the importance of the Centre in becoming a regional hub for family business, the source of 60% of GDP and an employer of over 80% of the workforce in Middle East economies.

The DIFC Wealth Management Working Group, set up in August 2016, made the presentation following an extensive consultation process, during which a number of areas were explored: trusts; foundations; issues in respect of establishment and ongoing maintenance in the DIFC; Shari’a compliance; DIFC entities and structures outside the Centre; as well as a review of outcomes and existing arrangements.

His Excellency Essa Kazim said: “The DIFC Wealth Management Working Group was set up last year to discuss and compile an updated wealth management strategy for the DIFC. The new solutions and structural reforms identified by the Working Group not only allow us to deepen our core offering, boosting the Centre’s growth, but also facilitate ease of business for firms based in, or looking to join, the DIFC.”

“These recommendations will support our ongoing enhancement of the Centre as a leading regional hub for wealth management and succession planning platform for GCC family businesses, both of which remain important components of our 2024 Strategy,” His Excellency continued.

As well as deepening the DIFC’s core offering to the international wealth management community, the Working Group formulates and proposes strategies, policies and objectives relating to the Centre, which are submitted to the DIFC Higher Board for adoption and to the DIFC Authority, Dubai Financial Services Authority (DFSA) and Dispute Resolution Authority (DRA) for implementation.

Upon implementation, the DIFC Wealth Management Working Group’s new strategy will:

• Place the DIFC at the forefront of jurisdictions which provide modern and flexible structures in the form of companies, trusts and foundations;
• Provide an effective framework to establish sound family governance structures;
• Simplify the DIFC’s current administrative arrangements and costs, without compromising its existing standards;
• Offer an attractive platform for local families to structure their business and succession planning arrangements, particularly if complemented by the measures recommended by the Working Group; and
• Provide a favourable environment for Single Family Offices.

In addition to the high GDP contribution of family offices in the region, it is estimated that $US 1 trillion of assets will be transferred from second generation business families to the third generation over the coming decade.

Chairman of the Wealth Management Working Group, David Russell AM QC, said: “The DIFC’s regulatory and legal infrastructure provides an enabling framework within which family offices can operate. The Wealth Management Work Group’s extensive review, has brought together leaders across regional and international law firms and wealth management companies as well as the Dubai Financial Services Authority.”  

The Working Group includes senior advisers including leading lawyers, accountants, barristers and senior executives of the DIFC Authority and Governor’s Office.

About Dubai International Financial Centre

The Dubai International Financial Centre (DIFC) is the financial hub for the Middle East, Africa and South Asia, providing a world-class platform connecting the region’s markets with the economies of Europe, Asia and the Americas. It also facilitates the growth in South-South trade and investment. An onshore, international financial centre, DIFC provides a stable, mature and secure base for financial institutions to develop their wholesale businesses.

The Centre offers all the elements found in the world’s most successful financial industry ecosystems, including an independent regulator, an independent judicial system with a common-law framework, a global financial exchange, inspiring architecture, powerful, enabling support services and a vibrant business community. The infrastructure within the district features ultra-modern office space, retail outlets, cafes and restaurants, art galleries, residential apartments, public green areas and hotels.

Located midway between the global financial centres of New York, London in the West and Singapore, Hong Kong in the East, DIFC (GMT +4) fills a vital time-zone gap with a workday that bridges the market and business hours of financial centres in both Asia and North America.

In 2015, DIFC launched its 2024 growth strategy, a blueprint for the next decade of growth of the financial hub. This strategy aims to stimulate trade and investment flows along the South-South economic corridor encompassing Africa, Southern Asia and Latin America.

Currently, 1,648 active registered companies operate from the Centre, with a combined workforce of 21,611 professionals.

DIFC continues to pursue expansion into new services and sectors within the Middle East, Africa and South Asia region, an area comprising over 72 countries with an approximate population of 3 billion and nominal GDP of US$7.4 trillion.

For further information, please visit our website: difc.ae, or follow us on Twitter @DIFC.