“Family offices contribute heavily to the economy of the UAE, particularly Dubai,” says Robert Mankelow, Managing Partner at Dubai-based wealth managers GSB Private.

Family-owned businesses comprise an estimated 90% of the country’s private sector companies, and 60% of national GDP.

Dubai has always hosted a concentration of generational wealth. Traditionally, that wealth was built in-region. What’s new is a surge of high-net-worth individuals (HNWIs) arriving from overseas.

In a year when more millionaires are moving country than ever before, the UAE is expected to receive more HNWIs – over 6,700 – than anywhere else. That figure is almost double that of the U.S., the UAE’s closest competitor, despite the Emirates having a population barely a thirtieth of the size.

This impressive statistic is testament to the careful work Dubai has put into making itself a safe haven for the world’s wealthy.

Stability in a volatile world

Dubai’s appeal to globally mobile HNWIs is multi-faceted. But the first component is the stability it offers in an increasingly unstable world.

In part that comes from personal safety: Dubai is the fourth safest city in the world, which is a key attraction for wealthy individuals considering where to base their families.

But its coveted political neutrality and a remarkably resilient economy also means the emirate offers a financial haven from the persistent global crises of recent years.

“Dubai’s stable economic environment, with steady growth and diversification efforts, offers a secure place for capital,” says Mankelow.

In fact, the emirate has shown remarkable resilience to shocks that shut down even the most advanced economies. And that resilience continues today, with the growth of the UAE’s economy outperforming that of advanced economies, according to the IMF.

Dubai offers a place where family wealth can not only be protected, but also where it can grow.

Pro-business environment

Dubai and the UAE have successfully diversified away from oil, with non-oil activity comprising 95% and 70% of their respective economies.

Some of that success comes down to pre-existing advantages. “Dubai’s strategic location between Europe, Asia and Africa makes it an ideal hub for international trade and logistics,” says Mankelow.

But the emirate has also cultivated a business-friendly soft infrastructure. Alongside its favorable personal tax rates, corporation tax is an internationally competitive 9% on profits over AED 375,000 ($102,000), and VAT a low 5%.

“Dubai’s ability to attract top talent has fueled huge amounts of business growth and entrepreneurialism.”

— Robert Mankelow, Managing Partner at GSB Private

Cross-border commerce is further smoothed by a raft of double taxation treaties, extensive bilateral trade agreements, zero currency controls, and customs exemptions for free zone-registered businesses.

Mankelow adds that “the city’s increasing ability to attract top talent to the region has fueled huge amounts of business growth and entrepreneurialism.”

This magnetism is partially thanks to the renewable 5-10-year Golden Visas available for talented individuals – and investors with more than AED 2 million ($575,000 approx) invested in Dubai.

Such visas are just one instance of a range of policies tailored to making life easier for the emirate’s wealthy.

Leading wealth management

The Dubai International Finance Centre (DIFC) is the epicenter for wealth management in Dubai.

“Recognised as a strong and stable offshore IFC, it is the region’s pre-eminent financial hub, focused on facilitating private wealth and asset management, catering to HNWI families’ needs, and doing so pragmatically,” says Mankelow.

The center is home to more than 120 of the world’s wealthiest families, with a combined net worth of over $1tn, served by over 350 wealth management firms.

And recent reforms have bolstered its appeal, providing “clarity and confidence to families holding assets and operating in or from the DIFC,” according to Mankelow.

The Family Arrangements Regulations (FAR) simplifies family business structure and governance, as well as establishing clear mechanisms for arbitration, and a robust privacy framework.

It also offers access to benefits and incentives for family businesses, such as the federal Thabat program, which supports family businesses in investing or engaging in innovative activities.

The concomitant Dubai Family Wealth Centre (DFWC) is a world-first, end-to-end service center for family offices, providing extensive advice and support in everything from education, networking, research, and dispute resolution.

With an unprecedented generational wealth transfer on the horizon, a key focus of FAR and DFWC is succession planning, ensuring the next generation is prepared to preserve the family fortune.

Crucially, this includes encouraging gender-neutral inheritance, ensuring wives and daughters are accorded their appropriate ownership, shareholding and leadership roles.

Leading wealth management

Dubai has long been a regional wealth hub. Its evolution has made it into a stable but innovative haven for HNWIs seeking shelter from geopolitical turbulence.

The emirate’s work is far from over. “Dubai’s achievements over the past 30 years are staggering,” says Mankelow. “The government looks set to drive growth at an even more rapid pace going forward.”

And it’s taking a lot of globally mobile millionaires along for the ride.