In the UAE, family businesses embody the nexus of tradition and innovation. They are often characterised by their robust vision, deep-rooted local connections and substantial contributions to the national economy.
The financial influence of these entities is profound, with projections indicating that the wealth generated by ultra-high-net-worth individuals and family offices in the UAE is set to increase by 46 per cent by 2026.
The UAE’s overall financial wealth is expected to continue growing at a compounded annual rate of 6.7 per cent, potentially reaching $1 trillion by 2026, according to the 2023 Global Family Office Compensation Benchmark Report by KPMG and Agreus.
This burgeoning wealth underscores the UAE's appeal as a prime destination for new family offices.
The country's combination of tax advantages, strategic location, robust financial services and high-quality lifestyle amenities attracts wealthy families from across the globe.
With such a significant economic impact, it becomes imperative for these family businesses to adopt strategic measures that secure their future, primarily through professional asset management.
Adapting to a changing economic environment
The UAE’s economy, known for its rapid growth and diversification efforts away from oil dependence, presents opportunities and challenges to family businesses.
These enterprises, traditionally centred around trade, real estate and construction, need to innovate and diversify their investment portfolios.
Asset management firms specialise in navigating these complex landscapes, offering strategic guidance crucial for adapting to economic shifts and capitalising on new opportunities.
Professional management and diversification
Historically, family businesses in the UAE have relied on internal management and traditional investment paths.
However, the need for specialised knowledge in international finance, emerging markets and alternative investments becomes critical as the global economic environment becomes more interconnected and competitive.
Asset management firms bring expertise and resources that can help family businesses diversify their investment portfolios effectively.
This diversification is about spreading risk and exploring new growth areas that complement the core business activities.
Risk management
One of the most significant advantages of teaming up with an asset management firm is the enhanced risk management capability.
Family businesses often face unique challenges, such as the concentration of assets in specific industries or markets, which can expose them to higher volatility and risks.
Asset managers employ sophisticated risk assessment tools and strategies to mitigate these risks, aiming for stability and consistent growth.
This approach is crucial for ensuring the business’s longevity, making it resilient during economic downturns and market fluctuations.
Succession planning
Succession planning remains a critical concern for family businesses in the UAE.
The transition of management and ownership across generations can be fraught with challenges, potentially destabilising an otherwise successful enterprise.
Asset management firms can be crucial in institutionalising the business and setting up structures that ensure smooth transitions and professional governance.
These structures help maintain continuity, safeguard family legacy and align the company with best practices and global standards.
Access to global markets
The UAE's strategic position as a global hub provides a unique advantage to its local businesses.
Asset management firms can leverage this position to tap into international markets and investment opportunities, which might be beyond the reach of individual family enterprises.
This access is invaluable for family businesses looking to globalise their operations and investment strategies, providing a competitive edge in international markets.
Cultural alignment
Understanding the local culture and the family's long-term vision is paramount in managing family assets effectively.
Asset management firms operating in the UAE increasingly know the need to align their services with family businesses’ cultural nuances and specific business philosophies.
They offer customised investment strategies that respect traditional values while pushing towards innovation and modernisation.
As family businesses in the UAE envision their future, the importance of teaming up with adept asset management firms becomes increasingly apparent and vital.
These firms, equipped with deep industry knowledge and a nuanced understanding of global market dynamics, offer more than just financial guidance; they deliver strategic insights crucial for navigating the complexities of today's fast-evolving economic landscape.
Asset management professionals use their extensive experience to help businesses mitigate risks associated with volatile markets and regulatory changes, ensuring stability and continuity.
By partnering with asset management firms, family businesses in the UAE can secure their financial future and embark on a path of sustainable growth and diversification.
This partnership enables them to preserve their identity and core values while expanding their horizons, ensuring they remain competitive and relevant in a globalised world.
Renoy Kundukulam is chief executive of Finmark Capital
Match statistics
Abu Dhabi Harlequins 36 Bahrain 32
Harlequins
Tries: Penalty 2, Stevenson, Teasdale, Semple
Cons: Stevenson 2
Pens: Stevenson
Bahrain
Tries: Wallace 2, Heath, Evans, Behan
Cons: Radley 2
Pen: Radley
Man of the match: Craig Nutt (Harlequins)
Sinopharm vaccine explained
The Sinopharm vaccine was created using techniques that have been around for decades.
“This is an inactivated vaccine. Simply what it means is that the virus is taken, cultured and inactivated," said Dr Nawal Al Kaabi, chair of the UAE's National Covid-19 Clinical Management Committee.
"What is left is a skeleton of the virus so it looks like a virus, but it is not live."
This is then injected into the body.
"The body will recognise it and form antibodies but because it is inactive, we will need more than one dose. The body will not develop immunity with one dose," she said.
"You have to be exposed more than one time to what we call the antigen."
The vaccine should offer protection for at least months, but no one knows how long beyond that.
Dr Al Kaabi said early vaccine volunteers in China were given shots last spring and still have antibodies today.
“Since it is inactivated, it will not last forever," she said.
Springsteen: Deliver Me from Nowhere
Director: Scott Cooper
Starring: Jeremy Allen White, Odessa Young, Jeremy Strong
Rating: 4/5
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Company%20Profile
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The specs
Engine: 3.0-litre 6-cyl turbo
Power: 374hp at 5,500-6,500rpm
Torque: 500Nm from 1,900-5,000rpm
Transmission: 8-speed auto
Fuel consumption: 8.5L/100km
Price: from Dh285,000
On sale: from January 2022
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
