The Finance World Magazine| Edition: March 2023

competitiveness among the six GCC
economies, with gains across the board.
Oman moved up five points to No. 10 in
terms of digital readiness, and Bahrain
moved up six spots to No. 16 among
GCC nations.
The UAE will draw a significant
portion of the $66B in possible FDI
inflows into the Middle East, North
Africa, and Pakistan in 2023, according
to Hatem El Safty, CEO of Business
Link, as foreign investors view the
emirates as an appropriate location
for investment. Due to its business and
visa changes, the UAE is anticipated
to bring in $22B in FDI this year, while
the MENAP area is anticipated to bring
in $56B.
The Index is a study of global logistics
industry sentiment that Agility conducts
each year. This year’s Index includes
750 executives from around the world,
and Agility has released its annual
rankings of the world’s top emerging
markets. Industry executives were
asked to name the most important
drivers of economic diversification for
GCC countries, all of which are trying
to reduce dependence on oil and gas
by accelerating private-sector growth.
They identified a number of factors,
including access to capital, skilled
labor, and a robust infrastructure.
Respondents identified the key factors
as having well-developed technology
development and innovation; a small
business environment that is conducive
to growth; infrastructure development
that supports economic vitality; regional
and global integration that fosters
trade and business ties; a skilled labor
force that is available and willing to
work; ending energy subsidies that
support high costs; and creating career
opportunities for women.
There was a lot of volatility among
the rankings, with conflict and other
problems hurting some countries more
than others. Countries like Ukraine,
Iran, Russia, and Colombia all saw
their rankings decline, while others
like Bangladesh, Pakistan, Jordan,
Sri Lanka, and Ghana all saw their
rankings improve.
On the other hand, Dubai International
Financial Centre has finalized
regulations to enable more familyowned
businesses to start operating
from its Global Family Business and
Private Wealth Centre which opens in
March. The centre will provide a range
of services to help these businesses
succeed, including support from experts
Dubai International
Financial Centre
has finalized
regulations to
enable more
family-owned
businesses to
start operating
from its Global
Family Business
and Private Wealth
Centre.
in finance, accounting, and marketing.
The new regulatory framework
provides a strong foundation for the
new wealth centre. It will govern
how UAE, regional and global familyowned
businesses, and ultra-high net
worth individuals (UHNWI) and private
wealth offices operate from DIFC. This
framework will help to create a more
stable and prosperous environment for
these businesses, and will support the
growth of DIFC as a leading centre for
wealth management.
“The introduction of these new
regulations marks a significant step
forward in our commitment to setting
the standards for excellence in the
industry,” said Jacques Visser, chief
legal officer at DIFC. “With a focus
on transparency, accountability and
stability, these regulations provide
a comprehensive framework that
will allow our clients to operate with
confidence, knowing that their interests
are protected by the highest level of
legal and regulatory oversight.”
Moreover, DIFC Business Incubation
Program is designed to bring family
businesses and ultra-high-net-worth
individuals from the UAE and the
broader MEASA region and beyond to
DIFC. Family-owned businesses are an
important part of the UAE economy,
contributing to a large number of jobs
and helping to drive economic activity.
Their supply chains provide a network
of businesses that help to increase
productivity and efficiency.
In 2021, the UAE Ministry of Economy
announced that it was considering
new policies to help family businesses
grow. These policies could include
providing financial support and training,
developing new marketing strategies,
and promoting family-owned businesses
through public awareness campaigns.
There are more than 460 entities in
DIFC with family structures, accounting
for almost 10% of companies in the
financial hub. This indicates the
importance of family ties in the region.
These entities are responsible for
running businesses belonging to some
of the most prominent families in the
UAE, GCC, Middle East, CIS countries,
India, and China.
If you are already a DIFC family office,
you can choose to move to the new
centre, where you can take advantage
of extra privacy benefits and tailored
services. DIFC anticipates that the
number of family-owned businesses in
the region will grow significantly as a
result of the new wealth centre. This is
an important step forward in fostering
entrepreneurship and economic growth
in DIFC.
Growth in the UAE will be driven by
wealthy individuals who are moving
away from European jurisdictions, such
as Switzerland, France, Italy, Portugal
and the UK, to set up in the country.
The financial wealth of the UAE is
growing rapidly, and is expected to
grow even faster in the future. This
growth is due to the increasing value
of financial and real assets.
The UAE’s financial wealth grew
by 20% in 2021, outpacing growth in
global financial wealth, and the country
accounted for 30% of the total financial
wealth in the GCC, according to BCG
estimates. This growth was largely
due to an influx of more than 2,000
millionaires, which helped the UAE
become the region’s leading source of
financial wealth. Furthermore, the new
regulations establish certification and
accreditation programmes to support
the benefits and incentives planned for
family businesses in the UAE under
the UAE Family Business Law. The
main purpose of the certification and
accreditation regimes is to ensure that
family businesses follow good practices
and are governed properly.
March 2023 www.thefinanceworld.com 25