Rise of family offices: How Dubai and Abu Dhabi became global wealth hubs
In the discreet world of private wealth, few institutions carry as much mystique as the family office. Neither bank nor investment fund, a family office is a bespoke structure designed to preserve, manage and grow the fortunes of the ultra-wealthy across generations. The model is not new, but in recent years one jurisdiction has quietly become the epicentre of global family wealth: the UAE.Dubai and Abu Dhabi have become global hubs where legacy, lifestyle and investment strategy converge. To understand what has led to the UAE becoming a magnet for the ultra high net worth individuals (UHNWIs), KT LUXE spoke to four leading voices shaping the family office ecosystem in the Middle East: Natalia Biryukova, Head of the Family Office at Hauberk Capital; Eoin Reilly, Director of Operations at Human One Global; Joseph Barnett, founder of Reign Investments & Media Solutions; and James Greenwood, CEO of M2. Stay up to date with the latest news. Follow KT on WhatsApp Channels.Every family office is differentNatalia Biryukova, Head of the Family Office at Hauberk Capital, explains family offices tend to fall into two camps: those that focus on protection and preservation — safeguarding assets, ensuring succession planning and maintaining steady growth — and those that pursue active expansion, with scions in their 20s and 30s driving bolder strategies. “The younger generations show far more appetite for alternatives like venture capital and crypto,” she notes, while their parents often favour more traditional assets like real estate and private equity.Eoin Reilly agrees, emphasising that while the purpose of every family office is similar —protecting and growing wealth — the execution differs. “Some are completely streamlined, just focused on investments, while others branch out into philanthropy, governance or even lifestyle support. No two family offices are exactly alike.”That range is indeed striking. Joseph Barnett describes the spectrum as running from “a two-person team to highly institutional offices running direct deals and complex governance. A majority of family offices have fewer than 10 employees, which means they run a tight ship and outsource specialists.” James Greenwood adds that in the Middle East the variety is even greater: “At one end you have lean, founder-led offices, at the other, fully institutional setups with CIOs, risk teams and governance spanning multiple jurisdictions.”Control, independence and legacySo why do the ultra-rich invest in a family office set up instead of simply outsourcing to banks or asset managers? Two simple words: control and independence.“Banks and brokers are paid to sell their own products, which means advice isn’t always in the family’s best interests,” says Biryukova. “A family office, on the contrary, has the 360° view — tax, legal, reputational risk — and acts only for the family, not for a bank’s balance sheet.” Reilly agrees: “Families don’t want to be just another client on a bank’s roster. They want more privacy, flexibility and a structure built entirely around their needs.”Barnett frames it as the “three Cs”: control, coordination and continuity. “Control comes from having a dedicated team that answers only to the family. Coordination means pulling together complex portfolios, be they real estate, trusts, tax or lifestyle, into a single framework. And continuity is about legacy. Only 16 per cent of families transition wealth successfully to the next generation. Without formal succession plans, that number falls dramatically after the third and fourth generations.”And that’s precisely why the UAE, Greenwood points out, has invested in specialised infrastructure like DIFC’s Family Wealth Centre and ADGM’s single-family-office framework. “These platforms let families achieve institutional-grade control while retaining owners while staying family-owned,” he says. Beyond investments: Governance and lifestyleFamily offices today have gone far beyond operating merely as investment vehicles. They act as private enterprises managing every aspect of their clients’ lives and reputation. “A family office always rests on five pillars: succession, investment across diverse asset classes, tax, legal and lifestyle,” says Biryukova. “Lifestyle management often functions like a high-end personal concierge, from property to travel. Philanthropy, too, becomes important when families have a public image to uphold.”Reilly highlights education as a growing priority as family offices increasingly focus on preparing the next generation to manage wealth. The rationale: teaching financial literacy and governance is essential for preserving generational wealth.Barnett calls this the “family enterprise model,” where constitutions, dispute resolutions and grant-making are all handled internally. “It’s not just about investments. Families use their offices for governance, philanthropy and next-gen bootcamps. Cities like Dubai now offer training toolkits to support that.”Greenwood notes that Middle Eastern family offices also tend to manage significant operating-company holdings alongside financial assets, “blending institutional standards with family-controlled governance.”The shift to alternativesIf there is one clear investment trend, it is the growing allocation to alternatives which can make up 25 per cent of a portfolio. “But it depends on the age of the patriarch or matriarch. Younger generations are more inclined toward crypto and VC,” says Biryukova. Reilly sees the same pattern: “There’s been a clear shift. Families are still in public markets but more and more are allocating to private equity, real estate and venture capital.”Barnett puts hard numbers to it: “Alternatives now make up 45–55 per cent of many family office portfolios. Private equity dominates, but crypto is gaining ground. About a third of family offices report some exposure to digital assets.”Greenwood describes it as structural, not cyclical: “Global surveys show family offices running ~45 per cent in alternatives. Digital assets have already moved past the ‘watchlist’ stage; around a third of family offices now invest in crypto. What we’re seeing is a hunger for diversification and innovative ways to deploy capital, from tokenised treasuries to private credit.”Wealth thresholds and the multi-family modelSetting up a dedicated single-family office is not cheap. “You need at least $500 million in assets to justify it,” says Biryukova. “Below that, a multi-family office can be a good solution, but reputation and trusted recommendations are crucial.”Reilly offers a slightly broader range: “Upwards of a few hundred million makes sense for a single-family office. Below that, costs often outweigh the benefits, so a multi-family office is usually the smarter route.”Barnett outlines three tiers: Families worth $50m–$150m tend to run administrative single-family offices with light staff and heavy outsourcing. $150m–$250m families use a hybrid approach with a core team and specialists. At $1bn+, families internalise almost everything.Greenwood agrees that multi-family offices are increasingly attractive, especially for those in the $25m–$50m range. “They offer cost efficiency, consolidated reporting and access to professional planning without the overheads of a dedicated setup.”Why the UAE is attractive Given the above factors influencing the family office set up, it’s clear why the UAE has an edge. And the reasons go beyond tax incentives. “What families ultimately want is stability. The UAE offers absolute security and predictability — priceless qualities for the ultra-wealthy,” says Biryukova. Reilly points to timing and positioning: “The UAE has built up private wealth, created a safe business-friendly hub, and added lifestyle appeal through initiatives like the Golden Visa.”Barnett describes it in three words: “Platform, proximity, policy. The UAE managed Covid better than many countries, proving itself as a secure base. Its location at the crossroads of continents and its transparent governance regimes have made it irresistible.”Greenwood is blunt: “This isn’t a fad; it’s structural. The UAE combines political stability, common-law courts, streamlined family-office regimes and global connectivity. On top of that, it’s leading the world in millionaire inflows. Families aren’t just moving money here; they’re moving decision-making here.”The new capital of legacy From succession bootcamps to digital assets, discreet concierge services to billion-dollar co-investments, family offices have become the ultimate expression of wealth, privacy, and continuity. In the UAE, they are also part of a larger story: how a young nation is reinventing itself as the capital of legacy. As Biryukova puts it, “Family offices go far beyond investment. They integrate governance and reputation management into one cohesive strategy that protects wealth, legacy and lifestyle across generations.” For ultra-wealthy families, it seems the future of legacy has already found its home — in Dubai and Abu Dhabi.
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