Legal Guide to Family Offices in the UAE

What is the minimum asset threshold required to open a family office in Dubai?

There is no longer a uniform statutory minimum asset requirement to establish an SFO in the UAE. However, due to administrative costs, physical office requirements, and staffing obligations, an institutional family office structure is typically recommended for families with investable assets exceeding USD 20 million to 30 million.

Can a foreign national use a UAE family office to hold global assets?

Yes. Both the DIFC and ADGM frameworks are specifically designed to allow international assets, including global real estate, offshore corporate shares, and foreign investment portfolios, to be held securely under a UAE-incorporated family office or foundation.

How does the UAE Corporate Tax Law affect Single-Family Offices?

Under Federal Decree-Law No. 47 of 2022, family offices are subject to the corporate tax framework. However, family trusts, foundations, and dedicated holding companies can apply for tax transparent status or explicit exemptions if they meet the strict criteria of an "Exempt Person" or function solely as passive asset-holding vehicles for ultimate beneficiaries.

What is the difference between a family trust and a family foundation in the UAE?

A trust is a contractual arrangement where a settlor transfers asset ownership to a trustee to manage for beneficiaries; it does not have a distinct legal personality. A foundation is a registered corporate entity with its own distinct legal personality, capable of holding assets, entering contracts, and suing or being sued in its own name, while retaining a charter and by-laws.

Can an onshore family office own real estate anywhere in the UAE?

An onshore family office structured under the relevant Emirate's Department of Economy and Tourism can own real estate across the UAE, subject to local property laws. Free zone entities (like those in DIFC or ADGM) can hold mainland real estate through specific Memorandums of Understanding (MOUs) established between the free zone and local land departments.

How does the Family Companies Law of 2022 prevent internal family disputes?

The law allows families to draft legally binding articles that prevent the sale of corporate shares to non-family members without prior right of refusal. It also establishes a dedicated Family Business Dispute Resolution Committee, bypassing public courts to resolve issues confidentially and efficiently.

Is the ultimate beneficial owner information of a family office accessible to the public?

In both the DIFC and ADGM, as well as onshore registries, ultimate beneficial owner (UBO) registers are maintained securely and are not accessible to the general public. This information is shared exclusively with regulatory and law enforcement authorities to satisfy global compliance standards.

Can a Multi-Family Office manage wealth for families not residing in the UAE?

Yes. An MFO licensed by the DFSA in the DIFC or the FSRA in the ADGM can provide wealth management and advisory services to international families, regardless of their residency status, provided all mandatory cross-border regulatory clearances and KYC requirements are met.

What are the operational substance requirements for a family office in the UAE?

Family offices must demonstrate actual operational presence within their chosen jurisdiction. This generally includes maintaining a physical office space, hiring qualified senior executives (such as a senior executive officer or managing director), and conducting core decision-making activities (such as board meetings) within the UAE.

Can a family office issue different classes of shares to family members?

Yes. Under both the onshore Family Companies Law and the corporate laws of the financial free zones (DIFC and ADGM), family offices can structure multiple classes of shares. This allows families to award economic dividends to younger generations while retaining voting rights and management control among senior leadership.