Dubai’s financial hub is now home to family offices that control more than $1tn in assets, driven by the influx of high-net worth individuals over the past few years.

“Family businesses contribute significantly to Dubai’s economy,” said Arif Amiri, the chief executive officer of Dubai International Financial Centre Authority. “The DIFC is home to over 120 families and 800 family-related structures and entities who manage more than $1.2tn in assets,” he said at the Future of Finance event in the city.

The United Arab Emirates, of which Dubai is a part, is poised to be the top destination for relocating millionaires this year, according to a report from migration advisory firm Henley & Partners.

The UAE’s appeal for the ultra-wealthy and their investment companies has grown in recent years thanks to a favourable tax-regime, low crime rates and a convenient location at the juncture of multiple continents and time zones. Nigerian billionaire Aliko Dangote is among those setting up a family office in Dubai, Bloomberg News has reported.

Last year, the number of registered foundations — a vehicle commonly used by wealthy families — in Dubai rose by 53%. In neighbouring Abu Dhabi, with its $1.5tn in sovereign wealth funds, the number jumped by 35%, according to wealth advisory firm M/HQ.

At the same time, financial firms have also flocked to both cities, and employee numbers at DIFC surged by two-thirds since 2019 to nearly 44,000 in June. That includes some of the biggest hedge funds, from Millennium Management to Balyasny Asset Management, and the industry employs over 1,000 people in the city.

The DIFC expects a record number of firms to set up this year too, and is building three new office towers to meet the anticipated demand.