Over the past decade, the United Arab Emirates has emerged one of the leading jurisdictions for private wealth relocation and structuring. The country’s favourable tax environment and modern regulatory infrastructure have attracted a growing number of high-net-worth individuals (HNWIs) and internationally mobile families.
As family wealth becomes increasingly complex and geographically diversified, many families choose to establish family offices – dedicated structures responsible for managing investments, governance, succession planning and administrative matters across the family’s businesses and assets.
Traditionally, family offices in the UAE were primarily established within international financial centres such as DIFC and ADGM, which provide sophisticated legal frameworks based on common law and are widely used for wealth structuring.
However, as demand for family office structures continues to grow, other jurisdictions in the UAE have begun introducing more accessible licensing options designed specifically for private wealth management structures.
One of the most recent developments in this area is the introduction of a Single Family Office licence in the Dubai Multi Commodities Centre (DMCC), providing an additional platform for families seeking to establish a dedicated entity to manage their wealth and family affairs.
DMCC Single Family Office License
One of the most recent developments in the UAE private wealth structuring landscape is the introduction of a Single Family Office (SFO) licence in the DMCC.
The framework allows wealthy families to establish a dedicated entity within the DMCC free zone to manage the financial, administrative and governance affairs of a single family.
Under the DMCC guidelines, an SFO is incorporated as a standard DMCC Free Zone Limited Liability Company with a specific business activity allowing it to manage the wealth, assets and legal affairs of a single family.
The structure is designed to centralise the management of family assets and to coordinate activities across family businesses, entities and investment vehicles.
Scope of Activities:
The licensed activity is “Single Family Office”, which allows the entity to provide a range of services exclusively to the family it serves.
These services may include:
- coordination of wealth and asset management activities
- administrative and accounting support
- management of legal and corporate affairs
- corporate governance and family governance matters
- concierge and operational support services for the family
Importantly, the DMCC Single Family Office cannot provide services to third parties. Its activities must be limited exclusively to the family members, family businesses and related structures such as trusts or foundations.
The SFO may also hold shares in family businesses and other family assets, including interests in trusts or foundations.
Ownership and Family Definition:
The DMCC framework requires that the Single Family Office be 100% owned by members of the same family.
For the purposes of the licence, a “single family” is defined as individuals who are direct descendants of a common parent, including their spouses, for up to three generations, and this definition also includes adopted children.
Ownership of the SFO may be structured either:
- directly by family members, or
- through a corporate holding structure, provided that the ultimate beneficial owners remain members of the same family.
Governance and Staffing:
The governance structure of a DMCC Single Family Office must ensure direct family involvement.
At least one family member must be appointed as a board member or legal representative of the SFO.
While operational staff may include individuals outside the family (for example accountants or administrative staff), professional roles such as lawyers, investment managers or asset managers must be properly qualified and certified.
In general, only family members may sit on the board of the SFO. However, in cases where a family trust exists, a trustee or fiduciary may be appointed as a director in their personal capacity.
Key Restrictions:
The DMCC framework imposes several restrictions designed to preserve the private nature of the structure.
In particular:
- the SFO cannot provide services to other families
- shares of the SFO cannot be transferred outside the family, except in cases of intra-family transfers
- the entity cannot act as a trustee of trusts
However, the SFO may act as a protector or coordinating entity in relation to trusts and foundations administered by regulated fiduciary service providers.
Application Requirements:
- a business plan describing the family structure, assets and services to be provided by the SFO
- proof of at least USD 1 million in investible or liquid assets, confirmed by a regulated financial institution
- documentation confirming family relationships (such as birth or marriage certificates or confirmation from a family lawyer)
- an SFO undertaking letter and questionnaire submitted to DMCC for approval.
Compliance and Ongoing Obligations:
After licensing, the Single Family Office must continue to ensure that it operates strictly within the parameters of the framework.
In particular, the entity must confirm that:
- it continues to serve only a single family
- there have been no material changes in ownership
- the number of family members served remains consistent with the information submitted during the application process
- the scope of services has not changed.
Any such changes must be reported to DMCC.
Other UAE Jurisdictions Offering Family Offices Structures
In addition to DMCC, several other UAE jurisdictions provide frameworks that allow families to establish family office structures. The most commonly used jurisdictions include the Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM) and the Dubai World Trade Centre Free Zone (DWTC).
These jurisdictions differ in their regulatory approach, target clientele and overall ecosystem. While DIFC and ADGM operate as international financial centres with independent common-law frameworks, DWTC provides a more flexible free zone platform for establishing family office entities.
DIFC has long been one of the leading jurisdictions in the region for private wealth structures. The centre offers a sophisticated legal infrastructure including foundations, trusts and holding vehicles which are frequently used alongside family office entities. The DIFC framework is typically utilised by larger international families with significant global assets seeking a highly institutionalised environment for wealth management and governance.
ADGM, located in Abu Dhabi, provides a similar common-law framework and has also developed a strong ecosystem for private wealth structures. Family offices established in ADGM are often combined with foundations, holding companies and special purpose vehicles allowing families to create comprehensive governance and investment structures within a single jurisdiction.
DWTC represents a more flexible alternative within Dubai. The jurisdiction allows both Single Family Offices and Multi-Family Offices and generally provides a more accessible setup compared to financial centres. As a result, DWTC may be suitable for families seeking an operational platform for managing family affairs without the full regulatory framework typically associated with international financial centres.
Together with the newly introduced DMCC framework, these jurisdictions illustrate the continued development of the UAE as a leading destination for global family office structures and private wealth management.
Conclusion
The introduction of the SFO licence in DMCC represents another important step in the UAE’s continued development as a global hub for private wealth structuring. Together with established frameworks in jurisdictions such as DIFC, ADGM and DWTC, the new DMCC regime expands the range of options available to families seeking to centralise the management of their assets, governance and succession planning structures.
As the number of HNWIs relocating to the UAE continues to increase, the availability of multiple family office platforms across different free zones provides families with greater flexibility when designing their wealth management and ownership structures.