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Dubai: The Dubai International Financial Centre (DIFC) said on Tuesday it has created new regulations to encourage family businesses to establish Single Family Offices (SFOs) at the centre.
Created in consultation with the Dubai Financial Services Authority (DFSA), the DIFC Single Family Office (SFO) regulations specifically address the needs of family-run institutions and create a platform for wealthy families to set up holding companies at DIFC to manage private family wealth and family structures anywhere in the world.
"In recent times, family offices have become highly significant on the global economic landscape. In the Middle East, where family-run businesses make up over 75 per cent of firms and have total assets in excess of $1 trillion, the need for a specialised legal and regulatory framework is especially acute," DIFC governor Omar Bin Sulaiman said.
"In contrast to conventional financial institutions, Single Family Offices (SFOs) have no direct public liability as all their shareholders are bloodline descendants of a common ancestor. As such, their regulatory requirements differ significantly. By establishing the new regulations, DIFC is once again reaffirming its commitment to family businesses and the development of DIFC into a hub for local, regional and international family offices," he said.
The enactment of the regulations follows a period of consultation where companies were invited to comment on the proposed laws. Having received highly positive feedback, the new regulations came into effect on Tuesday, the DIFC said.
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