06 Jun Family Office in ADGM – Fortifying Fortunes: Establishing a Legacy Oasis
This article covers the benefits of starting a family office in ADGM.
In recent years, the establishment of family offices has gained considerable popularity among affluent families seeking comprehensive wealth management solutions.
Abu Dhabi is known for its impressive infrastructure, featuring modern skyscrapers, state-of-the-art transportation networks, and world-class facilities. In addition, it is home to iconic landmarks such as the Sheikh Zayed Grand Mosque, the Louvre Abu Dhabi, and the Yas Marina Circuit.
ADGM (Abu Dhabi Global Market):
The Abu Dhabi Global Market (ADGM) presents an attractive jurisdiction for setting up a family office, offering a favorable business environment, robust regulatory framework, and strategic geographical location.
Abu Dhabi offers an opulent and luxurious lifestyle with its extravagant resorts, upscale shopping malls, fine dining establishments, and recreational activities. Residents and visitors can enjoy leisure pursuits such as desert safaris, water sports, and golfing in picturesque settings.
This article explores the key considerations and steps in establishing a family office in ADGM.
Financial Advisory License in UAE:
A family office is a private wealth management advisory firm that assists affluent families in managing their financial affairs, investments, estate planning, and other family-related matters. It offers personalized and comprehensive solutions tailored to the specific needs and goals of the family. In addition, family offices provide services such as investment management, tax planning, philanthropy, family governance, and succession planning.
Advantages of Establishing a Family Office in ADGM Abu Dhabi:
- ADGM has developed a regulatory framework aligned with international best practices, providing a secure operating environment. The Financial Services Regulatory Authority (FSRA) ensures compliance with regulations and safeguards investor interests.
- Abu Dhabi’s strategic location as a financial hub provides access to global markets, facilitating international investments and diversification opportunities for family office clients.
- ADGM offers extensive tax incentives, including exemptions on personal and corporate income taxes and capital gain. This enables families to maximize wealth accumulation and preserve wealth for future generations.
Critical Considerations in Setting Up a Family Office:
- Define Objectives: Clearly define the objectives, scope, and services the family office will provide. For example, determine if the focus will be primarily on investment management or encompass broader wealth management services.
- Governance Structure: Establish a robust governance structure to ensure effective decision-making and management of the family office. Define the roles and responsibilities of family members, professionals, and advisors.
- Investment Strategy: Develop an investment strategy aligned with the family’s risk appetite, financial goals, and values. Consider asset allocation, diversification, and long-term sustainability to preserve and grow the family’s wealth.
- Technology and Infrastructure: Implement systems for portfolio management, reporting, and communication.
Establishing the Family Office in ADGM:
- Company Formation: Determine the appropriate legal structure for the family office based on the family’s objectives. Engage professional services, such as our seasoned team of professionals, for the registration processes.
- Banking and Custody: Establish relationships with reputable banks and custodians to handle the family office’s financial transactions, custody of assets, and settlement of investments. We can assist you with opening bank accounts for your family office.
- Operational Setup: Secure office space and implement appropriate technology infrastructure. Develop policies and procedures for risk management, cybersecurity, and data protection.
Setting up a family office in ADGM offers numerous advantages for high-net-worth families seeking comprehensive wealth management solutions. By leveraging the favorable business environment, robust regulatory framework, tax incentives, and strategic location, families can establish a family office tailored to their unique needs.
Furthermore, by carefully considering key factors and following the necessary steps, families can position themselves for effective wealth preservation, investment management, and intergenerational planning within the thriving financial landscape of ADGM.
Our consultants have helped start countless family offices in ADGM and across the United Arab Emirates. You can contact us for a free consultation so that we can help you in the process!
Also, you might be interested reading about the Top 10 Reasons Why Your Family Office Should be in UAE and Comparison Between Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM).