The UAE is rapidly cementing its position as one of the world’s leading destinations for family wealth preservation and succession planning, with wealthy families increasingly choosing the country not just as a place to live, but as a long-term base for their assets, governance structures and investment vehicles.
According to Ashish Agrawal, Partner at Dhruva, a Ryan LLC affiliate, the shift marks a significant evolution in how high-net-worth families approach wealth management in the region. “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.”
The trend has been supported by the UAE’s expanding legal and regulatory ecosystem, including foundation regimes in the DIFC and ADGM, dedicated wills services and federal legislation covering family businesses. Agrawal noted that growing tax clarity around family foundations has also encouraged more families to make the UAE their long-term wealth management hub.
Despite growing awareness, succession planning remains a major challenge for many family-owned businesses across the Gulf. “The most common mistake is treating succession as an event rather than a process,” Agrawal said, warning that many founders delay planning until unforeseen circumstances force action. He added that another frequent error is “transferring ownership without transferring capability,” leaving heirs with assets but insufficient preparation to manage them effectively.Families also risk creating structures driven mainly by tax considerations rather than broader family objectives.
Under the UAE’s corporate tax framework, family foundations must satisfy ongoing conditions to maintain transparent tax treatment. “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,” he said.
As family wealth becomes increasingly complex and spread across multiple jurisdictions, governance has become more important than ever.”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,” Agrawal said.
Strong governance is also becoming essential from a regulatory perspective. Family foundations must demonstrate their purpose, beneficiaries and activities while maintaining qualifying conditions and annual confirmations. “Good governance has therefore become the evidence base that supports a family’s tax and legal positions,” he added.
The next generation is also reshaping the future of family wealth management. Educated in global institutions and increasingly familiar with institutional investment practices, younger family members are pushing for greater professionalisation.”
They tend to ask a different question from their parents: not only how to protect what the family has, but how to keep it relevant for the next thirty years,” Agrawal said.
This influence is driving greater interest in formal governance structures, family offices, independent advisers and investment committees, while also encouraging diversification into technology, private markets and sustainable investments.
Looking ahead, Agrawal believes the Federal Tax Authority’s June 2026 guidance on family foundations will further accelerate the adoption of formal succession structures.”Yes, I expect it to accelerate formalisation,” he said, pointing to greater clarity around multi-tier ownership structures, co-investment arrangements and asset transfers.
Over the next five years, he expects the UAE’s role as a global wealth-management centre to strengthen further, supported by increasingly professional family offices, stronger governance standards and more regular structural reviews.
Source: Khaleej Times