Family Office License in Dubai: What is it, Benefits, Types & More
Published Date:
Jun 6, 2025
Family offices have become increasingly popular in the UAE, particularly in Dubai, among wealthy families. The number of family offices being set up in the UAE or relocating to the region is also on the rise.
The primary function of a family office is managing the assets and affairs of a family. Key functions include coordinating and working alongside other professional financial advisors and service providers.
Over the past few decades, the UAE has maintained a strong reputation as one of the most business-friendly destinations in the world. This is one of the main reasons contributing to the increasing preference for a family office license in the country.
This article provides a comprehensive breakdown of what a family office license is, its popularity in Dubai, UAE, its types, functions, and more.
What is a Family Office License
A family office license is exclusively designed to manage and oversee the investments, wealth, and affairs of high-net-worth individuals or families in the UAE. It is a special license that legally allows the establishment and operation of a family office in the country for the management of financial and personal affairs.
In other words, the purpose of a family office license is to manage the private wealth and assets of a single family or a group of related families. It involves legal advice, financial planning, and sometimes even lifestyle management.
History of Family Office Licenses
Family offices come from a rich history that spans many centuries. Many historians trace the evolution of the family office concept back to the 15th century in Italy, where renowned names like the Medicis from wealthy families relied on professional financial advisors to help them manage their wealth and related legalities.
The modern family office license we know today originated in the late 19th century, particularly with the rise of industrial tycoons like the Rockefellers and Vanderbilts in the United States.
During the early stages, the family office concept was more aligned towards managing investments, taxes, and philanthropic activities for wealthy families. Later, family office licenses expanded to cover a broader range of services, including wealth preservation, family governance, estate planning, education, and concierge services.
It was in the 20th century that a proliferation of family offices emerged, particularly following the economic boom after World War II. Today, as global wealth continues to increase, more families are turning towards a family office license as an effective and legally reliable way to establish dedicated offices that can manage their wealth.
How Does a Family Office License Differ From Regular Permits
A family office license and the overall concept of it are fundamentally different from that of a regular business license. It follows a distinct purpose, structure, and operational scope.
A regular business or trade license is intended for commercial enterprises that wish to sell goods or services to the public anywhere in Dubai or the United Arab Emirates (UAE). It involves trading, manufacturing, or the offering of other professional services such as healthcare, education, or consultancy.
A family office license is more diverse from a regular business license in terms of its purpose, structure, and operational scope. A regular business license is intended for commercial enterprises aiming to provide goods or services to the public, engage in trading activities, manufacturing, or offer professional services such as consultancy or healthcare. These licenses are accompanied by market-specific regulations, tax obligations, and compliance requirements tailored to the nature of the business.
Unlike regular business permits, a family office license does not involve public commercial activities, such as selling products or providing services to external clients. The focus is not on generating revenue through market activities, but instead on wealth preservation, risk mitigation, and succession planning for family-owned assets. Their responsibility is to ensure that the family's financial legacy is protected and efficiently managed across future generations.
The Regulatory Framework for A Family Office License
The regulatory framework for a family office license is also different from that of a regular business license. For example, family offices in financial centres like DIFC (Dubai International Financial Centre) may enjoy tailored reporting requirements and benefit from certain exceptions due to their private nature.
A regular business license should adhere to the standards of the market regulatory framework applicable to all other businesses for a given market or niche, including VAT obligations and customs rights law.
Why Family Office Licenses are Becoming Popular in the UAE
The UAE has over 75% of the Middle East’s family offices, of which more than 50% are in Dubai. The strategic location of the UAE allows family offices established here to tap into approximately US$3 trillion (AED11 trillion) in private wealth within an hour's flight. This is the primary reason why many world-renowned high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals prefer to operate out of Dubai.
Dubai International Financial Centre (DIFC), MEASA’s leading finance epicentre, is the foundation of the dynamic family office ecosystem. More than 300 wealth and asset management enterprises, worth approximately AED 1.65 trillion (US$450 billion) in private wealth, have their offices established in the DIFC.
As part of the D33 (Dubai Economic Agenda) goals, Dubai aims to be one of the world's leading four financial centres. To facilitate this vision, Dubai has consistently improved its ease of doing business for HNWI and UHNWI.
Types of Family Offices
The two main types of family offices are single-family offices and multi-family offices.
Single-Family Office
Single-family office licenses are intended to provide services to just one family, but they can encompass multiple generations or branches of a family under one unit. The services for a single-family office are fully customised, with full control and confidentiality. Due to these dedicated resources, they also incur higher operational costs.
Multi-Family Office
A multi-family office, as the name suggests, focuses on providing services for multiple unrelated families to share the resources and talents of the firm. This helps firms reduce operational costs and increase the scale and diversity of services offered. Compared to a single-family office, they are cost-effective as the resources are shared. However, the services for them are less customised, and are ideal for families who cannot justify a single-family office.
Benefits and Limitations of Single and Multi-Family Offices
Type | Benefits | Limitations |
Single-Family Office (SFO) | - Full control & privacy - Highly customized services - Dedicated to one family's needs | - Very high setup & running costs - Requires substantial wealth to maintain |
Multi-Family Office (MFO) | - Cost-efficient (shared resources) - Access to professional expertise - Lower entry wealth requirement | - Less personalized service - Shared focus among multiple families - Potential confidentiality concerns |
Note - There is also a virtual family office and an embedded family office, but they are less commonly used. Virtual family offices operate remotely or digitally, without a physical office, and embedded family offices are integrated within the family’s main business operations.
Options for Establishing a Family Office in the UAE
As of 2025, only DIFC (Dubai International Financial Centre) and ADGM (Abu Dhabi Global Market) are the official entities dedicated to offering family office licenses in the UAE.
The following free zones do not offer formal family office licenses, but they do provide Holding or Investment Company licenses, which some families use for basic wealth or asset holding purposes.
RAKEZ (Ras Al Khaimah Economic Zone)
DMCC (Dubai Multi Commodities Centre)
IFZA (International Free Zone Authority)
SHAMS (Sharjah Media City)
SRTIP (Sharjah Research, Technology and Innovation Park)
They are also not true to family office structure and do not uphold the standards, regulatory frameworks, and recognition designed explicitly for family offices in the UAE.
