Asset management in Dubai has been around for quite some time now. The scope of this business is very broad because the Emirates is home to countless rich people and influencers having properties and assets worth millions of dollars. They all are looking for such services that can handle and manage their assets and help them in increasing them. Read this article to learn from our business setup experts about setting up an asset management company in Dubai and making huge profits out of it.
What is an Asset Management Company?
To begin learning the steps to start this business, we need to define what an asset management company (AMC) is and what its attributions are.
Asset management is the method in which the physical assets of a business are managed and maintained to make sure they stay in their best shape for many years to come. This approach is started inside a company and the business’s assets are considered top priorities.
For managing an asset, it is important to recognize an asset’s lifecycle and comprehend the risks of keeping an asset for management purposes. The lifecycle of an asset is:
- Acquire the asset, get a commission on it, operate it, and dispose of it. The cycle goes on and on.
- An asset management company in Dubai can perform the following activities:
- It assists entrepreneurs to open investment funds in Dubai.
- It helps entrepreneurs to invest in numerous areas of interest on the basis of market fluctuations.
- The advantages of a Dubai asset management company are considered by local and foreign entrepreneurs who are looking to set up investment funds or receive support in this field. An organization like this communicates directly with foreign investors seeking specialized assistance for their assets and properties.
- It knows the ways to manage different investment instruments, depending on the directives that the beneficiaries offer.
- The experience of an investment fund manager and the solutions he/she uses for an investment fund can impact how much returns it brings. An investment fund that is well-analyzed and implemented can deliver higher returns over time.
- Before performing any activity, the first step the asset company takes is risk assessment in the field of investments.
- Prior to any investment fund activity, AMC analyzes the market. It is up to the fund manager to decide whether certain investments should be made or not.
How to Setup an Asset Management Company in Dubai?
Due to the popularity of this type of firm, an entrepreneur can set up an asset management company in Dubai under the limited liability company’s rules. This is the best option for both foreign and local business owners in the UAE. The foundation of an asset management company’s incorporation in Dubai is its Articles of Association. The Articles contain information about the company’s owners, managers, operations, voting rights, fundamental principles, and other company-related factors. Whether you want to incorporate an asset management company from outside the Emirates or are already there for this purpose, RIZ & MONA business setup experts in Dubai can efficiently and easily handle the registration requirements of an AMC in Dubai. Contact us now for more information.
Benefits of Asset Management
The following are some advantages that your company can experience from doing asset management:
- Enhances the organization’s reputation.
- Low ongoing operating costs and initial investment.
- Lessens the assets’ negative environmental effects.
- Extends the lifespan of firm assets by improving their health.
- Low irks involved with operating assets.
- Improves the organization’s adherence to regulations.
What Is a Family Office?
Now you must have a firm grasp of what asset management is all about. This idea has already been included in Dubai’s current business frameworks. In the meantime, a new idea known as the “Family Office” that focuses on managing money for future generations has entered the corporate world of Emirates. Let’s learn what is that.
A family office is somewhat a fresh and novel idea in the field of wealth management. It is a consulting company that works with wealthy clients who are into investing in various projects. They offer specialized approaches to managing a person’s wealth for the long term. In other words, you can assume a family office to be a professional organization created with the goal of managing a person’s money for the protection of their family and future generations. This family-run investment company falls under the following categories:
Single Family Office – SFO
An organizational structure known as a single-family office is one that prioritizes the wealth management of a single rich family. Over several generations, the family has built its overall fortune. The SFO is responsible for certain services including payroll, property management, handling legal matters, everyday bookkeeping, etc.
Multi-Family Office – MFO
The Multi-Family Office – MFO, on the other hand, is a wider variant of the SFO – Single Family Office. It is designed to help more than two families manage all of their wealth and assets by offering them specialized solutions and quick assistance.
Reasons to Incorporate a Family Office in the UAE
The primary reasons why a person should incorporate the Family Office are as follows:
- Better long-term financial management.
- Provides support for the family and keeps track of everyday family costs.
- Confidentiality and privacy regarding the handling of the wealth of a family.
- Assign a manager to oversee the family’s investments and wealth.
What is Private Wealth?
Managing Private Wealth is another component of asset management that contributes to the success of the company. The private wealth management division is an advisory practice that includes both portfolio management and financial planning. The goal of private wealth management is to improve a person’s or family business’s financial status and provide solutions to financial problems. A private wealth manager is given the task to handle the financial jobs and provide each client with a broad variety of financial services and products. Always remember that a helpful hand might assist your business in advance to another level.
Creating an Investment Portfolio
An investment fund manager’s experience and individual expertise are crucial. If you’re considering starting an asset management company in Dubai, UAE, you should think about participating in different activities and implementing the most effective tactics and strategies to serve clients in the best possible way. For an asset management company, developing an investment portfolio is a critical to-do job. The foundation of such a portfolio includes capital markets, risk analysis, financial security, investment types, and many other factors. Financial experts can manage a variety of fund types, including exchange-traded funds, mutual funds, index funds, and much more. Learn how to register an asset management business in Dubai from our team of company formation experts in Dubai.
Why Invest in Dubai, UAE?
Due to the numerous advantages that the business environment of the Emirates provides, Dubai has been a very eye-catching business destination for many years. One of the most significant benefits that the United Arab Emirates gives to businesses is its tax system, which exempts company profits from all taxes. In addition to this advantage, businessmen from around the globe can benefit from the opportunity to register a corporation with a minimum amount of paperwork. Full ownership in Dubai’s free zones and the repatriation of revenues tax-free are also permitted in the UAE.
The laws governing foreign investment in Dubai are incredibly relaxed and give both local and foreign investors the same chances without limitations and distinctions. Following are some figures that illustrate the UAE’s business trajectory:
- You can now own a company in 122 economic activities permitted in the UAE.
- In 2019, the UAE recorded FDI worth over USD 154 billion.
- Doing Business 2020 ranked the UAE 16th out of 190 countries in terms of ease of doing business.
FAQs – Frequently Asked Questions
Can I start my own asset management company?
Yes, you can start your own asset management company in Dubai, UAE. Simply follow the steps given in our guide on asset company formation and you will be on your way to running your business.
How do I become an asset management company?
We have discussed the way to establish your asset management company in Dubai. Go through the complete process to get going with your new company.
How can I start a fund in Dubai?
You can start a fund in Dubai by following a standard procedure. You have the option of either opening public funds or exempt funds in Dubai.
Where do I start with asset management?
You can start your asset management company either in the mainland or the free zone of Dubai.
What are 3 methods that are used to manage asset management?
Following are the methods that are used to manage asset management:
- Cloud-based software
- Auditing assets
- Data reports
Setup an Asset Management Company in Dubai with RIZ & MONA
That is all we have for now on how to setup an asset management company in Dubai. The process to do so is very much straightforward and anyone can do it upon having the necessary information and guidelines.
If you are still confused or want some assistance, you can get in touch with experienced company formation professionals in Dubai like RIZ & MONA. Our business setup experts can help you to start your asset management company in the UAE right now. So, book your free slot today and get going with your new asset management firm in Dubai.