The UAE is fast becoming a preferred base not just for living and working, but for housing entire family wealth structures, according to Ashish Agrawal of Dhruva, Ryan LLC. That shift matters for the growing number of Gulf family businesses now wrestling with how to pass wealth, and control, to the next generation.
"Five to ten years ago, many families treated the UAE primarily as a base for living and doing business, while their wealth-holding structures often sat elsewhere," Agrawal said. "That has changed fundamentally. Families relocating today are not only moving their residence; increasingly, they are bringing their holding structures, investment vehicles and governance with them."
Why the UAE is attracting family wealth
The country's legal and regulatory ecosystem has developed to support this shift. Foundation regimes in the DIFC and ADGM, dedicated wills services, and federal legislation covering family businesses give families frameworks to formalise ownership and succession. Tax clarity around family foundations has been a particular draw, encouraging more families to set up wealth management operations onshore in the UAE rather than elsewhere.
But clarity on tax treatment comes with conditions attached. Family foundations operating under the UAE's corporate tax framework must satisfy ongoing requirements to keep their transparent tax status, meaning families cannot simply set up a structure and forget about it.
The succession mistakes families keep making
Despite the improved infrastructure, succession planning remains a major challenge for family-owned businesses across the Gulf. Agrawal points to a recurring problem: families treat succession as a one-time event instead of an ongoing process.
"The most common mistake is treating succession as an event rather than a process," he said. A related failure, he added, is "transferring ownership without transferring capability" — handing over shares and titles to heirs without preparing them to actually run the business.
Another trap is designing structures around tax efficiency alone, rather than the family's broader goals. "The remedy is straightforward in principle: start early, begin with the family's objectives rather than the structure, integrate legal, tax and governance advice, and review the arrangement regularly," Agrawal said.
Governance gaps carry real financial risk. "Without agreed rules on who decides, how and on what basis, disagreement can quickly become dispute, and disputes are among the fastest ways to erode family wealth," he said. In his view, formal governance now does double duty: "Good governance has therefore become the evidence base that supports a family's tax and legal positions."
A new generation pushes for change
Much of the pressure for more formal structures is coming from younger family members, many educated at global institutions, who are pushing for professionalised family offices, independent advisers and investment committees rather than informal arrangements.
