ARTICLE
1 May 2025

Family Foundations In The UAE

BLK Partners

Contributor

BLK Partners offers its clients a comprehensive legal service in the Middle East through a team of specialist experts who combine international experience with a deep understanding of local legal regimes, customs, and markets. BLK Partners serves as a unique legal platform composed of client-centric professionals, united by our "Glocal" concept, and dedicated to creating the best legal platform.
Family Foundations in the UAE are emerging as a strategic solution for families seeking to preserve wealth and secure their legacy across generations. By establishing foundations within the DIFC and ADGM...
United Arab Emirates Corporate/Commercial Law

INTRODUCTION

In recent years, the United Arab Emirates (the "UAE") has seen a surge of families of all national and religious backgrounds discovering the unmatched benefits of setting up a family foundation.

Whether you're a high-net-worth individual, part of a family office, a professional advisor, or simply someone who wants peace of mind about the future, understanding and leveraging the family foundation ("Family Foundation") can provide an unparalleled advantage in legacy planning.

By setting up a foundation in the Dubai International Financial Centre ("DIFC") or Abu Dhabi Global

Market ("ADGM") free zones, families and individuals now have access to a powerful, flexible, and private vehicle for managing family wealth across borders and generations.

In an increasingly globalized world, the Family Foundation offers a modern and legally sound approach to preserving family wealth and values. It empowers families to protect their assets, structure succession on their own terms, and maintain privacy while ensuring stability across generations.

WHAT IS A FAMILY FOUNDATION?

A Family Foundation is a legal structure designed to protect and manage assets in line with the founder's long-term vision. It offers a high level of legal and financial protection against external claims, family disputes, or foreign court interference.

This structure also allows ownership of assets to be separated from day-to-day control, while the founder retains full authority over how the assets are managed and distributed.

Unlike companies or trusts, Family Foundations are specifically created for long-term, family-focused goals—such as preserving wealth, supporting future generations, or maintaining family businesses. They can also be established to last indefinitely, offering continuity across generations.

KEY BENEFITS

Asset Protection: Assets transferred to the Family Foundation are protected against external creditors or lawsuits involving the founder.

Succession Planning: Eliminates lengthy probate procedures, avoids forced heirship, and ensures the founder's wishes are respected – an option available to both Muslims and Non-Muslims.

Family Harmony: Clearly defined roles and rules minimise the risk of internal conflict.

Privacy: The names of beneficiaries are not part of any public record.

Legal Certainty: Foundations are governed solely by DIFC law, meaning foreign court rulings or succession laws have no jurisdictional impact.

Philanthropy: Foundations can support charitable causes either as a primary mission or alongside family legacy planning

KEY FUNCTIONS

The Family Foundation serves as a multi-functional novel legal structure within the UAE's framework, including but not limited to:

− Holding assets such as real estate, shares, family businesses, including other assets and investments;

− Defining clear succession and inheritance plans — a solution available to all individuals, offering a distinct alternative to DIFC and ADGM wills;

− Making distributions to family members and/or other designated beneficiaries;

− Providing perpetual continuity during significant life events such as divorce, incapacity, or death;

− Supporting cross-border family structures, ensuring consistent legal control and asset protection against external claims and outside jurisdictions; and

− Major tax benefits depending on the individual's nationality or residency.

Once established, the Foundation can open bank accounts, own real estate, hold shares, and make investments in its own name — without requiring ongoing involvement from individual family members.

COSTS

The costs involved in registering and renewing a Family Foundation are very affordable and costeffective compared to other legal structures, such as trusts and corporations. When weighed against the long-term legal and financial advantages, the setup fees are relatively low starting from as little as USD 300, depending on the structure's complexity and the chosen jurisdiction.

CONCLUSION

The introduction of this innovative legal structure in the UAE has opened up new and accessible opportunities for personal asset management and protection, both for those within the UAE and beyond, regardless of background.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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