For professionals managing the wealth of an entity or family group, legal certainty and continuity are fundamental pillars. In the United Arab Emirates (UAE), the introduction of Foundations has created a robust ecosystem for those seeking sophisticated structuring alternatives.
OMC Group presents this guide on UAE Foundations as a technical tool designed for asset protection and succession planning, operating under a Common Law legal framework that offers clarity and predictability to international advisors.
The Legal Nature of UAE Foundations
Unlike traditional commercial companies, a foundation in the UAE is an independent legal entity with its own legal personality, but with one key distinction: it has no shareholders.
When evaluating the structure under this guide, the following technical pillars should be considered:
- Legal Personality: The foundation holds assets in its own name, legally separating the founder’s patrimony from the structure’s assets.
- Governance: It is governed by a Council or Board responsible for day-to-day administration, strictly following the founder’s wishes as set out in the Charter and By-laws.
- Purpose: It can be established for specific purposes, whether private (family wealth management) or charitable.
Succession Planning and Wealth Safeguarding
One of the most relevant uses of this structure is its capacity to manage the succession of assets in an orderly manner. In the UAE, foundations allow foreign nationals to establish distribution rules that avoid the automatic application of forced heirship laws, ensuring that the founder’s wishes are precisely fulfilled.
Foundations in this jurisdiction offer solutions for various entity needs:
- Protection Against Creditors: The legal framework establishes mechanisms that may contribute to asset safeguarding against third-party claims, subject to applicable regulations.
- Jurisdictional Flexibility: They can be established in renowned financial centers such as ADGM (Abu Dhabi Global Market) or DIFC (Dubai International Financial Centre), as well as in RAK ICC.
- Asset Holding: They have the technical capacity to own a wide range of assets, including company shares and real estate (subject to the regulations of each registry).
OMC Group’s Support in Dubai
The constitution of a foundation requires precise handling of local registration and compliance requirements. This OMC Group support on the UAE Foundations streamlines the administrative process by providing the necessary information on the statutes and governance required by the relevant authorities.
If your professional team is analyzing how to integrate a UAE Foundation into your global protection strategy, OMC Group is available to provide the technical data and administrative procedures to support your entity’s management.
