Dubai (Union) The Dubai International Financial Center (DIFC) has issued a list of new rules and procedures regulating the work of family businesses in the Dubai International Financial Centre, after a 30-day public consultation period. The new regulation establishes a solid legal base for the Family Wealth Center in the newly created Dubai International Financial Centre. The new regulation also provides a practical framework and a pivotal center for family businesses at the regional and international levels, in addition to the high net worth and private wealth owners, which would consolidate the position of the Dubai International Financial Center as a global center for leading financial institutions and companies. Jack Visser, Chief Legal Officer at the Dubai International Financial Center, said: “The Dubai International Financial Center has established itself for nearly two decades as a leading global financial center, by providing a dynamic and comprehensive regulatory and enabling environment to support the success and continuity of family businesses, high net worth individuals and private wealth owners. . The issuance of this new regulation represents an important step that comes within the framework of our commitment to raising the standards of exclusivity and achieving leadership in this sector. By focusing on establishing the principles of transparency, accountability and stability, the regulation provides a comprehensive framework that will allow our clients to carry out their activities with confidence, based on their awareness of the fact that their interests are among our priorities by providing the highest levels of legal and regulatory oversight and oversight. And we, in the Dubai International Financial Center, are proud of our leadership in advancing progress and change, by supporting family businesses, and enabling them to enhance their levels of contribution to economic growth. The new regulation provides comprehensive guidance for the mechanism of operation of family businesses that own assets and operate their business in or from the Dubai International Financial Center, by supporting the process of managing issues related to inheritance procedures, and the transfer of ownership and wealth from one generation to another. The regulations were drafted to take advantage of the organizational structure of family businesses accredited in free zones such as the Dubai International Financial Center, and the authority stipulated in Federal Decree Law No. 37 of 2022 regarding UAE family businesses, to set a family business registry to see the requirements and benefits provided to family businesses that fall within the framework of the law. Emirati family businesses. The new regulation replaced the previous “single-family office” system in the Dubai International Financial Center with the new “family office” system, which can provide services to one family, eliminating the need to register the family office within the category of non-financial business or professions specified within the Dubai Financial Services Authority system. Unless these services are provided to more than one family by business. It is worth noting that individual family offices that are currently registered as (DNFBP) within the category of non-financial business or professions with the Dubai Financial Services Authority, will be able to cancel registration with the Dubai Financial Services Authority in the manner determined by the Dubai Financial Services Authority by following a specific time mechanism. These rules and procedures allow families to manage and operate their companies, preserve their wealth and plan the process of succession of management and transfer of wealth within the Dubai International Financial Center, which would work and adopt these procedures and standards locally and on a broader and more comprehensive scale globally. The regulation also defines the process of establishing systems and programs for certifying and accrediting family businesses and their advisors in the Dubai International Financial Center, in order to support the benefits and incentives expected for family businesses in the United Arab Emirates, in accordance with the applicable federal family business law. The primary objective of the certification system is to ensure that family businesses adhere to the principles of good conduct and governance, and on the other hand to ensure that the system of advisors and experts adhere to high levels of professionalism when advising families.
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