According to industry experts, “persuasive aspects” like the loosening of firm ownership rules, residency alternatives, and the marketing of golden visas are helping the Emirates draw a substantial number of Indian family offices.
It has been observed that a marked increase in the number of wealthy people and business families moving to the UAE during the global pandemic. However, what was once thought to be a potential knee-jerk response to a global shutdown appears to be a persistent phenomenon that is gaining strength rather than slowing down.
Since January 2020, significant legislation that supports promoting lengthy residency in the UAE has been introduced in quick succession. Family-run enterprises and serious investors are moving to the UAE as a result of new restrictions.
Indian families are moving to Dubai and the UAE in previously unheard-of numbers, building on the city’s long history of having an Indian population.
Since the two countries’ trade agreement was struck last year, India’s non-oil shipments to the UAE have seen double-digit growth, increasing by 14% to USD 5.9 billion in June to August. Nearly 30 percent of all residents in the Emirates are of Indian descent, numbering about 3.5 million.
The family office model is growing in popularity among India’s increase in the number of millionaires and billionaires, allowing them to move their money more easily than ever. Family offices around the world have historically been dominated by families from Europe and the United States. The long-anticipated rise in India’s family office industry is finally materialising.
Celebrities, business owners, and senior managers all aim to maintain, grow, and safeguard their fortune. According to estimates from the industry, India is home to 200 of the 10K family offices worldwide.
Creating this exclusive single branch is expensive; therefore, families with assets worth more than ten billion rupees ($150 million) are typically the only ones who can afford it. Instead, those with fortunes between INR 500 million and INR 5 billion may choose a multi-family agency, which looks out for the interests of multiple families.
Significance of Golden Visa
Investors frequently cite the UAE’s long-term golden visas and accessibility via airlines flying out of Dubai, Abu Dhabi, and Sharjah as its main draws.
According to the Q2-2022 Henley Global Citizens Report, the UAE will welcome an additional 4,000 high net worth individuals by the end of the previous year, defined as those with a net worth of at least $1 million. A significant influx of affluent from India was also mentioned in the report.
Indian families have been embracing jurisdictional diversification in recent years from the perspectives of their personal and corporate wealth. The recent epidemic has increased desire for private wealth managed by single family offices or multi-family offices.
The UAE remains a popular travel destination due to the regulatory framework that is currently in place for both non-financial and financial free zones, as well as the simplicity with which banking platforms can be accessed, the laxity of the rules governing business ownership, the availability of residency options, and the active promo of golden visas.