How to Set Up a Family Office in the UAE (2025 Playbook)

Introduction: Why Wealthy Families Are Choosing the UAE for Family Offices

Over the past decade, the UAE — especially Dubai and Abu Dhabi — has transformed into one of the most attractive destinations for establishing family offices. With its zero-income tax policy, robust financial infrastructure, and pro-investor regulations, more ultra-high-net-worth individuals (UHNWIs) are choosing the UAE as their base for intergenerational wealth management.

This guide provides a comprehensive 2025 roadmap for setting up a compliant, efficient, and future-ready family office in the UAE.

What Is a Family Office?

A family office is a private entity that manages the wealth, investments, tax affairs, succession planning, and lifestyle services of a single family or a small group of related families.

There are two primary types:

• Single Family Office (SFO): Tailored for one ultra-wealthy family
• Multi-Family Office (MFO): Serves multiple families with shared resources

Functions may include:

• Investment management
• Tax planning and compliance
• Real estate and private equity allocation
• Philanthropy and legacy structuring
• Lifestyle concierge and security

Why the UAE Is an Ideal Jurisdiction in 2025

1. Tax Benefits No personal income or capital gains tax No inheritance or estate tax Favorable double tax treaties with 137+ countries
2. Regulatory Clarity Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) both offer dedicated family office licenses Legal structures: Foundations, Holding Companies, Trust Equivalents
3. Lifestyle & Security Political stability Elite education and healthcare Global air connectivity
4. Wealth Migration Policies Long-term Golden Visa programs for investors, family office principals, and skilled professionals

Step-by-Step Guide to Setting Up a Family Office in the UAE

Step 1: Define Your Scope

• SFO or MFO?
• Domestic only, or global reach?
• Operational vs. purely administrative?

Step 2: Choose Your Jurisdiction

• DIFC: More private-equity/hedge fund focused
• ADGM: Family business-friendly, with lower costs

Step 3: Select Legal Structure

• Foundation (ideal for succession and asset protection)
• Holding Company + SPVs
• Outsourced advisory + in-house investment team (hybrid model)

Step 4: Apply for Licenses

• Submit application to DIFC or ADGM
• KYC of family members and beneficiaries
• Define investment scope and governance policies

Step 5: Recruit Professionals

• Wealth manager, legal counsel, accountant, admin support
• Many functions can be outsourced

Step 6: Establish Operations

• Office space in free zone
• Open corporate and investment bank accounts
• Deploy technology stack (CRM, risk, compliance)

Common Mistakes to Avoid

• Using a generic holding company without formal family governance
• Failing to plan for next-generation involvement
• Ignoring cross-border tax implications when family members live abroad
• Underestimating the cost of hiring and compliance

FAQ Section

Q1: How much wealth is typically needed to justify a family office in the UAE?

Generally USD $30 million or more in investable assets. However, lean SFOs can start with less if operations are outsourced.

Q2: Can foreigners own and operate a family office in Dubai or Abu Dhabi?

Yes. There are no nationality restrictions for ownership or operation.

Q3: Is a foundation the same as a trust?

Not exactly. UAE foundations function similarly to common-law trusts, but offer statutory certainty and are more suitable for civil law jurisdictions.

Q4: Do I need to reside in the UAE full-time?

No, but having Golden Visa status or frequent presence improves regulatory transparency and bank relations.

Q5: How long does setup usually take?

Typically 6–12 weeks, including entity registration, compliance clearance, and operational setup.

User Comments

Rahul M. (India): “Our family moved the holding structure to ADGM and it streamlined everything from governance to investment allocation.” Julia N. (UK): “The DIFC foundation gave us control and asset protection without the complexity of offshore trusts.” Ali Z. (Kuwait): “Initially we underestimated the importance of succession planning — now it's central to our strategy.” Max L. (Germany): “Outsourcing back-office functions allowed us to run a lean, efficient operation.” Sophie C. (Singapore): “The UAE was the only place where tax neutrality and high-quality talent came together.”

Editor's Note

The UAE is no longer just a business hub — it’s now a strategic wealth preservation zone for global families. With proper planning, legal structuring, and governance, setting up a family office in Dubai or Abu Dhabi can offer not just financial efficiency but legacy resilience.

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📝 Editors: admin