Dubai hits target in wealth management ambitions

Dubai is fast becoming a global center for wealth management, according to new figures from the emirate’s financial hub, the DIFC.

On 9 September 2018, the Dubai International Financial Center (DIFC) announced that it passed a milestone of 200 firms within the wealth and asset management sectors, representing a 6 percent increase from the same point last year. This now means that 13 out of the top 25 firms in the wealth management sector are now based in Dubai’s leading financial center.

The number of financial funds under management by DIFC entities has jumped by 240 percent over the same yearly period, from a number of 25 in 2018 to the figure of 60 today. This makes the DIFC the largest funds domicile in the region.

According to the CEO of the DIFC – Mr. Arif Amiri – the wealth and asset management sectors are the cornerstone of a thriving financial services industry. And unsurprisingly, the DIFC is seen as the preferred platform for major financial institutions to access investment opportunities and sources of investment across both regional and global markets.

DIFC growth is expected to continue with the introduction of new regulations forming part of their 2024 Strategy which is designed to bolster the already attractive legislative and business environment offered within the financial center. As part of this strategy, Mr. Amiri also added that the flexible structures will continue to benefit the private wealth management and family trust sectors.

The DIFC is committed to a ten-year strategy of trebling in size by 2024, both in terms of the number of member firms and employees, as well as the value of assets under management.

In the first half of 2018, the DIFC attracted three of the biggest names in global finance, Chinese firm Everbright Group and American giants State Street Global Advisers and Berkshire Hathaway Specialty Insurance.

Last month, Fidelity International, the Bermuda-based investment management group, announced it too would be setting up in the DIFC.

According to the DIFC, these companies benefit from three types of fund structures, as well as tried-and-tested special-purpose companies and insurance special-purpose vehicles, used in structured financing transactions or related to entities of substance.

Over the first half of 2018, the DIFC reported a 17 percent rise in new financial institutions registering, bringing the total to 2,003 with a combined workforce of nearly 23,000.

In March of this year, the center enacted two new laws, the first of which provides an appropriate environment for the operations of Trusts within the DIFC, and the second, focusing on the foundations law, a new regime which provides greater certainty and flexibility for private wealth management and charitable institutions.

Please click the following link for more information on the DIFC.

Source: Arab News