UAE, An Emerging World-Class Wealth Management Hub

The regulatory framework in the UAE is evolving in tandem with the dynamic market, with regulators making progress in building a robust regulatory environment.

FREMONT, CA: The evolution of the UAE as a wealth planning and structuring center has witnessed rapid and highly positive progress, which does not surprise those living and working in the region. Massive changes, especially in the realm of structuring, have been noted, with a significant shift occurring about three years ago when foundations in the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) emerged as viable options, formalizing the planning outlined in prior MOUs that were known to the market. Subsequently, there has been a substantial increase in the establishment of foundations, signifying exponential growth.

This development enables the proper structuring of UAE assets for residents and non-residents, marking a noteworthy advancement in line with the market's dynamism, while the regulatory environment is gradually aligning with this progress, resulting in significant growth.

The emerging market is witnessing the concurrent evolution of its infrastructure and ecosystem. While acknowledging occasional disparities between regulations and on-ground activities inherent to emerging markets, the regulators for their commendable efforts in constructing the regulatory framework. Having been present in the region for over two decades, such as expanding the corporate services landscape with the proliferation of free zone companies and other corporate entities.

The need for elevated standards emerged within the industry, including implementing minimum training requirements and qualifications. Such standards are being developed, which is anticipated to enhance market growth and elevate client professionalism standards. Furthermore, individuals operating within the DIFC or ADGM must possess advanced skill sets to ensure the provision of suitable solutions and advisory services.

Additionally, regulations on the investment front have been curbing older practices, particularly those involving high commissions, to generate improved outcomes for end clients.

The challenges of conveying new alternatives and regulations to clients in a rapidly evolving environment were addressed.  The significance of the introduction of minimum corporate taxation emphasizes the need for clients to register by year-end in preparation for obligatory filings. The historical perception of Dubai and the UAE as a fly-in, fly-out market with expertise primarily centered in London, asserts that the professional advisory ecosystem has substantially expanded in the past decade. The UAE is a hub for the broader regional marketplace, facilitated by the region's exceptional logistics and connectivity.

The prevailing trend of ensuring that the right individuals with the appropriate expertise are situated in local operations has yielded remarkable results, enabling us to offer top-tier services and guidance. The market has undergone significant transformations, and we anticipate that this trajectory will persist for the foreseeable future.