The United Arab Emirates has become a renowned country globally for accumulating wealth and relishing a lavish lifestyle. Many ultra-high-net-worth families are choosing to live in and start a new venture in the UAE. In the past few decades, the UAE has worked hard to achieve the tag of one of the most favored business destinations across the globe.
The UAE is considered an ideal place for future-proofing your family’s wealth. There are plenty of reasons that make the UAE a highly preferred location. The country’s favorable tax ecosystem, zero income tax providence, and government support attract families to come and live their desirable lives.
What makes the UAE attractive for family wealth management:
- Tax Advantage: The UAE offers a 0% income tax and no capital gains tax, which significantly reduces the tax burden for any property acquired in its passage through life and for transferring that property to the next generations.
- Friendly regulation: The Dubai International Financial Centre and Abu Dhabi Global Market lower the barrier to entry for family offices, permitting different legal structures and 100% foreign ownership.
- Political Sturdiness: Trust in the long-term wealth plan is enhanced by political stability in the UAE.
- Lavish Lifestyle: Offering a good quality of life with excellent healthcare, education, and luxury lifestyle amenities, it is an attractive place to reside and raise a family.
- Global Connection: Strategically located and well-equipped business infrastructure in the UAE greatly access global markets and investment opportunities.
- Residential Benefits: Different residence options are available in the UAE. The Golden Visa allows holders to stay long-term and conduct business.
- Modern Healthcare & Education System: It is not just a matter of financial planning; building wealth to pass on through generations involves ensuring a bright future for the family. The UAE offers the topmost international schools and colleges to guarantee that the next generation will receive a world-class education. Furthermore, with advanced healthcare facilities and medical developments, families can live a high quality of life, ensuring their long-term well-being.
Why Family Businesses Are the Heartbeat of the United Arab Emirates' Economy?
- The backbone of the economy in the UAE manifests through family enterprises, which represent nearly 60% of the GDP, recruiting more than 80% of the labor in the private sector. The most economic and cultural driver and pillar that primarily traditional enterprises nurture in UAE's scene of entrepreneurship influence.
- Family-run companies are identified as one of the major reasons for the vibrant nature of the UAE economy. They provide livelihood to thousands of individuals across many critical sectors, including retail, real estate, construction, and hospitality. These enterprises have been highly instrumental in the UAE's effort towards diversifying the economy from oil.
- Family businesses have proven to be a pillar in the diversification process through knowledge-based economies as the UAE sets its sight on future development goals to encourage innovation and sustainability. It has the potential to change the entire scenario of realizing long-term goals for the economy and global competitiveness of the UAE.
- The laws of the land effectively regulate the contentious issue of succession in a manner that would provide a procedure for reducing the chances of a firm breakup or internal fights.
- The two financial free zones of the UAE are the Dubai International Financial Centre and the Abu Dhabi Global Market, which have built a legal framework and infrastructure to support high-net-worth individuals and family offices in their development and requirements.
As you have seen, future-proofing a family's wealth entails more than just money matters, as it must also possess a location that sustains its long-term growth, stability, and success. Such is the case when the UAE offers financial benefits that are tax-free, pro-business, politically stable, and a high standard of living.
The United Arab Emirates is the place to protect the legacy from state taxes. This is the best place if you want to offer a better future for your family.
At Markai Corporate Services, we pride ourselves on helping people and businesses navigate the ever-growing landscape of the UAE. From assistance with business setup to wealth management strategies, our expertise ensures that your future is secure. Entrust us with the lifelong creation and safeguarding of your legacy here in the UAE.
