Global riches flood into Dubai: "Bringing fire" Local luxury home trading family office business rise

21st Century Business Herald reporter Chen Zhi Shanghai report

Dubai is becoming a new hot land for the world's rich people.

Recently, Andrew Ammos, director of New World Fortune Research, a global wealth research institution, issued the latest report, stating that more than 4,000 global millionaires are expected to flood into the UAE Dibai, far more than 1,300 in 2019.

In his opinion, this is mainly due to the status of Dubai's international business center and a competitive tax rate.

"In fact, the reason why Dubai attracted the flow of rich global flow also includes Dubai's medical services increasingly perfect, the financial system continues to improve, and the living facilities have been continuously upgraded. Living in the city of life. "The person in charge of a family office management agency revealed to reporters. Among them, more and more Russian rich people regard Dubai as a new platform for overseas asset allocation. Because of the Russian and Ukraine conflict, Western countries have adopted a series of financial sanctions on Russia, making it difficult for Russian rich people to carry out asset allocation in Europe and the United States. But they have no concerns in Dubai. At the same time, with Dubai's full efforts to build a global encrypted digital asset trading center, more and more rich people in the world of encrypted digital assets are also intending to take root in Dubai to develop their own encrypted digital asset industry.

The reporter was informed that more and more global wealthy poured into Dubai, while continuing to bring fire in the local luxury market, it also caused the local family office business to develop.

The person in charge of the above -mentioned family office management agency revealed to reporters that in order to better protect personal wealth security, more and more global rich people have tried to set up a single family office in Dubai to carry out asset global allocation.

"In fact, the local government of Dubai is supporting the development of the local family office worldwide as a new fulcrum that attracts the landing of rich global." He pointed out. In early August, Dubai International Financial Center (DIFC) decided to launch the first local global family business and private wealth centers. I hope to gather more global rich people, promote the development of the Dubai family office business, and gather more resources while providing the world with the rich global rich man with the whole world. Wealth management and wealth inheritance services in orientation.

The reporter learned that many European and American rich people have recently considers the establishment of a single family office in Dubai to carry out asset global allocation because they are worried that European and American countries will continue to increase the taxes of the rich to "subsidize" the increasingly expensive energy costs to the public.

Local luxury home trading with fire

At the end of August, the transaction record of the Dubai mansion again refreshed.

The market rumors of India's second largest richest man and Chairman of the Shinshi Industrial Group Muksh Ambani throwing $ 80 million to buy a seaside villa in Palm Jumeirah, a Palm Jumeirah, the largest amount in the local history A single real estate transaction value.

It is reported that this seaside villa with a valuation of 80 million US dollars has 10 bedrooms and a private spa center. It is held with an interior and outdoor swimming pool. The reason why Muksh Ambani bought this mansion was mainly for his son, and he also plans to spend millions of dollars for renovation and renovation.

"Actually, this mansion trading was completed early this year, but it has been kept confidential until it was announced until recently." A person in charge of an overseas real estate investment intermediary revealed to reporters that as the rich world continued to pour in Dubai, such secrets did not declare Sky price luxury trading will continue to increase. For the reason, the Dubai mansion, which has continued to rise in recent years, is becoming more and more new wealth aversion in the eyes of more and more wealthy global.

Data obtained by the reporter showed that the average price of luxury homes in Dubai reached 10.6%last year, and the price increase of luxury homes in the first quarter of this year rose by 11.3%year -on -year.

Affected by this, many real estate developers are actively restarting some Dubai mansion projects that have been shelved for a long time. After all, the continuous influx of the rich has made the Dubai luxury market not worry about buyers.

According to data released by CBRE (CBRE), in June 2022, the transaction volume of the Dubai residential market increased by about 1/3 year -on -year. As of the past year in June, Dubai's residential transaction volume reached the highest level since 2009. Among them, the average price increase of luxury villas reached 19%, especially the average transaction rate of luxury villas in Zhumeila Palm Island reached a record high.

The person in charge of the overseas real estate investment agency revealed to reporters that the reason why the Dubai mansion was favored by the rich world is also closely related to the local government's introduction of a series of investment visa systems for overseas real estate investors. For example, a 750,000 Dram (about 204,000 US dollars) purchases a local high net worth buying local real estate can get a 2 -year visa; invest 2 million Dilam (about 545,000 US dollars) to buy local high net high net worth of local real estate People can get a 5 -year gold visa.

The reporter was informed that since the beginning of this year, Russian rich people have become the main force for purchasing Dubai luxury homes. In the first six months of this year, their purchase volume in Dubai's mansion is more than 60%higher than before. Because in Western countries adopting a series of financial sanctions against Russia, Dubai real estate, which has the potential to rise, has become a new choice for their overseas asset allocation.

At the same time, the global rich digital asset rich is also keen on buying luxury homes in Dubai, because compared with many countries in the world adopting increasingly strict regulatory measures for crypto digital assets, Dubai still intends to build a global encrypted digital asset trading center, attracting more and more The rich in the field of digital assets settled in the local development cause. Behind the rise of the family office

As the global rich continues to pour into Dubai, the business of the local family office is rapidly flourishing.

The person in charge of the management agency of the aforementioned family office revealed to reporters that the most urgent demand for setting up a family office in Dubai is mainly the three types of global rich people, one is Russian rich, because they want to "transfer" the assets to the third party through the family trust structure, they want to "transfer" the assets to the third parties. Professional organizations are managed to avoid the global allocation of assets in Western sanctions; the second is the rich man in the field of digital assets. They are worried that global encrypted digital asset supervision will cause startups to encounter discounts. The third is that many rich European and American countries are worried that the Western governments will continue to increase taxes to the rich and will make tax planning in advance by setting up a single family office in Dubai.

Professional Financial Consulting CITYWIRE pointed out that the business of the Dubai family office is booming and benefits from the full support of the local government.

In the 10th year of last year, the Dubai World Trade Center (DWTCA) issued a series of new regulations, including the offshore entities founded by a single family office, can manage their global assets, business and investment in the establishment of a new company in the Dubai Free Trade Zone, and obtain it at DWTCA specifies the license to operate the free trade zone. In addition, the new regulations also provide convenience for international professional institutions planned to expand their family office business in Dubai.

In August this year, the Dubai International Finance Center (DIFC) launched the first local global family business and private wealth center.

A private banker who is familiar with the development of the Dubai family office revealed to reporters that the reason why the Dubai government fully supports the development of the family office business on the one hand is to attract more global richest people to settle in Dubai's global allocation and promote Dubai to become a new international international internationally internationally. On the other hand, the financial center also hopes to introduce more professional institutions involved in the inheritance planning of family business, and inherit the plan for local enterprises.

The reporter was informed that in the Middle East, only 20%of family companies are now managed by the third generation of the family, which has led to the increasingly urgent demand for "successor training" of local family companies. Therefore, the Dubai government also hopes that through the introduction of more family offices management agencies, to build a more comprehensive legal framework and regulatory system for standardized and inheritance of family enterprises, help local family companies to complete heritage more efficiently and ensure that the family business is long.

The private bank person revealed to reporters that the current family office management agency will be available in both princes after settling in Dubai. One is to provide professional asset global allocation and offshore family trust services for overseas rich people, and the other is to provide " At the same time, the successor cultivation plan gradually attracted them to migrate some assets to the family office to achieve global allocation of assets.

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