Business | Banking
DIFC to become hub for family offices
The Dubai International Financial Centre (DIFC) on Tuesday announced new regulations to encourage ultra-wealthy families to establish Single Family Offices (SFOs) at the DIFC.
- Staff Report
- Published: 17:22 June 17, 2008
Dubai: The Dubai International Financial Centre (DIFC) on Tuesday announced new regulations to encourage wealthy families to establish Single Family Offices (SFOs) at the DIFC.
Created in consultation with the Dubai Financial Services Authority, the new regulations specifically address the needs of family-run institutions and create a platform for wealthy families to set up holding companies at the DIFC to manage family wealth and structures anywhere in the world.
Dr Omar Bin Sulaiman, Governor of the DIFC, said: "In the Middle East, where more than 75 per cent of firms are family-run and with total assets in excess of $1 trillion, the need for a specialised legal and regulatory framework is especially acute."
"In contrast to conventional financial institutions, Single Family Offices (SFOs) have no direct public liability as all SFO shareholders are bloodline descendants of a common ancestor. As such, their regulatory requirements differ significantly."
Central to the new regulations, the DIFC has introduced changes to the DIFC SFO platform and has made consequential amendments to other DIFC and DFSA regulations such as the DFSA's General Module and Glossary Module.
The regulations exclude SFOs from many of the regulatory constraints placed on conventional organisations located at the DIFC.
The regulations follow the establishment of the DIFC Family Office initiative, which provides comprehensive infrastructure solutions for family businesses in the region.
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