What a foundation is

A foundation is a legal entity, like a company, but with no shareholders. The founder gives it assets. A council of at least 2 members runs it. It holds those assets for beneficiaries, or for a stated purpose, under its charter and by-laws. [1][2][3] Families use foundations to:

  • hold shares in a family business
  • hold property
  • keep assets together across generations
  • set out clearly what happens on death or incapacity

The 3 regimes side by side

DIFC ADGM RAK ICC
Law DIFC Foundations Law, DIFC Law No. 3 of 2018 (consolidated March 2024) ADGM Foundations Regulations 2017 RAK ICC Foundations Regulations 2019, amended from 31 July 2025
Registry DIFC Registrar of Companies ADGM Registration Authority RAK ICC Registrar
Courts DIFC Courts ADGM Courts DIFC Courts or ADGM Courts, as the charter chooses
Minimum assets None set in the law USD 100 USD 100
Council At least 2 members At least 2 members At least 2 members
Guardian (oversight) Only for charitable or certain purpose foundations Required once no founder is alive Only for charitable or certain purpose foundations
Registered agent Optional See note below Required, certified by RAK ICC
Registered office In the DIFC In ADGM In the UAE
Holding Dubai property Yes, in foreign-ownership areas Yes, in freehold areas Not confirmed by any official source
Government fees Licence USD 350 a year (law), plus an annual statement fee USD 1,000 first year, then USD 500 a year (Jan 2025 schedule) Registration AED 1,500, renewal AED 1,500, plus a foundation licence of AED 750 a year (2026 schedule)

Sources: [1][2][3][4][5][6][7][20].

A note on ADGM agents. The 2017 regulations make a registered agent optional. ADGM's own brochure says a service provider is required unless the foundation qualifies as exempt. Confirm the current position with ADGM. [2][5]

A fourth option: DMCC Foundations

On 23 September 2026, DMCC announced Foundations Regulations of its own. A DMCC foundation can be established with assets from USD 100. At the time of the announcement, DMCC said onboarding would open in the following weeks. Check with DMCC whether registrations are open before planning on one. [19]

Privacy: what is public?

All 3 keep beneficiaries off the public record. They differ on the rest: [1][2][5][8][9]

  • DIFC: the public register shows the names of founders and council members.
  • ADGM: names are held in a confidential file by the registry. One 2020 ADGM Q&A says the charter itself is public, while the by-laws are private.
  • RAK ICC: accounts are kept and shown to the registrar on request, and are not public.

Regulators and tax authorities can see the full details: the registry or agent holds them, and they can be shared with the authorities. [1][2][3]

Protection from foreign claims

Each law contains "firewall" provisions. A claim under foreign forced-heirship rules, or a foreign court order, doesn't undo assets given to the foundation. [1][2][3][10]

  • RAK ICC, from 31 July 2025: the amendments add a 3-year limit on challenges to transfers into a foundation, and direct officers to disregard conflicting foreign orders. [3][10]
  • DIFC: the protection covers gifts made during the founder's lifetime, not gifts made by will. [1]

We have found no reported case in which a UAE onshore court has ruled on these provisions.

Dubai property

  • DIFC foundations can hold Dubai property outside the DIFC, in areas open to foreign ownership, under a 2018 agreement with the Dubai Land Department. [11]
  • ADGM foundations were brought under a similar arrangement with the Dubai Land Department, for freehold areas. [12]
  • RAK ICC: the Land Department's 2019 agreement covers RAK ICC companies. We have found no official confirmation that it covers RAK ICC foundations. [13]

If Dubai property is the main asset, this rules out a RAK ICC foundation until RAK ICC or the Dubai Land Department confirms otherwise.

Corporate tax

UAE foundations can apply to be treated as tax-transparent under Article 17 of the Corporate Tax Law and Ministerial Decision No. 261 of 2024. The foundation must meet the conditions, and the treatment isn't automatic. Economic substance reporting no longer applies for financial years ending after 31 December 2022. The Federal Tax Authority updated its guide on family foundations on 10 June 2026. [14][15][16]

For Muslim families

ADGM has said its foundations are flexible enough to run in a Shariah-compliant way, if properly structured and confirmed by scholars, but shouldn't be used to get around Shariah succession rules. A Shariah-compliant foundation can be funded during the founder's lifetime through gifts (hibah). The DIFC Court of Appeal, in its January 2021 advisory opinion, declined to decide whether such gifts fall outside Shariah inheritance shares. Take advice before relying on a foundation for this. [9][17][18] A guide to Shariah-compliant succession and waqf is coming soon.

How to choose

  • Dubai property at the centre? The DIFC or ADGM regimes, given their Land Department arrangements.
  • Assets mainly outside Dubai property? Compare the fixed fees: ADGM charges USD 1,000 in the first year, then USD 500; RAK ICC charges AED 1,500 to register, plus a AED 750 annual licence. [7][20]
  • Want the founders' names kept off the public register? The DIFC register shows them; ADGM holds them in a confidential file. [1][2]
  • A family business or holding company to own? Any of the 3 can, depending on where the company is and how it's governed.

How Marlborough Gulf helps

What we do:

  • We compare the options against your family's assets, homes and wishes.
  • We design the structure: the foundation, any holding companies beneath it, and how it fits with your wills.
  • We coordinate the people who set it up.
  • We form and administer RAK ICC companies as a RAK ICC registered agent.

What licensed firms do:

  • DIFC and ADGM foundations are set up by licensed registered agents or service providers.
  • Charters and by-laws are drafted by law firms.

You appoint and contract with each one directly.

Book a consultation

Questions people ask

How much does a DIFC foundation cost?

The law sets a USD 350 annual licence fee. There's also an annual statement fee, and professional fees for drafting and administration come on top. Check the DIFC's current fee table before deciding. [1][6]

Can a RAK ICC foundation own property in Dubai?

We've found no official confirmation. The Dubai Land Department's 2019 arrangement covers RAK ICC companies. [13]

Is a foundation better than a trust?

Neither is better in general. A foundation is a legal entity in its own right, with its own council. A trust isn't: its assets are held by the trustee. DIFC and ADGM foundations can hold Dubai property in the areas open to foreign ownership. [1][11][12]

Are foundation beneficiaries public?

No. In all 3 regimes beneficiaries are kept off the public record. In the DIFC, founders' and council members' names are public. [1][5]

This guide is general information, not legal or tax advice. Laws and fees change. Take advice from qualified lawyers and tax advisers before setting up a foundation.

Related guides

Sources

  1. DIFC Foundations Law, DIFC Law No. 3 of 2018, Consolidated Version No. 3 (March 2024). https://edge.sitecorecloud.io/dubaiintern0078-difcexperie96c5-production-3253/media/project/difcexperiences/difc/difcwebsite/documents/laws--regulations/foundations-law-difc-updated-law-no-3-of-2018_2024.pdf
  2. ADGM Foundations Regulations 2017. https://assets.adgm.com/download/assets/foundations-regulations-2017.pdf/a9b58092643811efb33122e97052245a
  3. RAK ICC Foundations Regulations 2019, as amended 2025 (third-party copy; replace with the rakicc.com text when it can be opened). https://uae.shushin.io/corporatelaw/rak-icc/RAK-ICC-Foundations-Regulations
  4. Hadef & Partners, "New Foundations Law in the DIFC", 6 May 2018. https://hadefpartners.com/news-insights/insights/new-foundations-law-in-the-difc/
  5. ADGM, Foundations Regime brochure. https://assets.adgm.com/download/assets/adgm-foundations-regime.pdf/684f1d16589911efbeb67e2ea82ed3e4
  6. Ancova Associates, foundation costs 2026, 28 Sep 2026 (citing the DIFC fee table of 30 Jul 2026). https://ancova-associates.com/insights/dmcc-foundation-cost-2026
  7. ADGM Registration Authority, Schedule of Fees 2025. https://assets.adgm.com/download/assets/Schedule+of+Fees+2025.pdf/6f25a452823d11ef808c3e0446867bce
  8. Sovereign Group, "RAK ICC Foundation". https://www.sovereigngroup.com/dubai/rak-icc-foundation/
  9. Stephenson Harwood via Legal 500, "Q&A with ADGM on ADGM foundations", 9 Dec 2020. https://www.legal500.com/intelligence/united-arab-emirates/wealth-management/a-wealth-of-advice-questions-and-answers-with-the-abu-dhabi-global-market-on-adgm-foundations
  10. RAK Government Media Office, "RAK ICC strengthens Foundations regime with 2025 legislative enhancements", 19 Aug 2025. https://www.rakmediaoffice.ae/en/media-center/press-releases/rak-icc-strengthens-foundations-regime-with-2025-legislative-enhancements/
  11. Gulf News, "DLD opens investment lane for DIFC entities", 1 Nov 2018. https://gulfnews.com/business/property/dld-opens-investment-lane-for-difc-entities-1.2107712
  12. Stephenson Harwood via Legal 500, "The ownership of real estate in Dubai by ADGM registered entities", 15 Sep 2020. https://www.legal500.com/intelligence/united-arab-emirates/real-estate-and-construction/the-ownership-of-real-estate-in-dubai-by-adgm-registered-entities
  13. Gulf Today, "DLD strengthens ties with RAK government entities", 16 Jul 2019. https://gulftoday.ae/Business/2019/07/16/DLD-strengthens-ties-with--RAK-government-entities
  14. Hadef & Partners, on Ministerial Decision No. 261 of 2024, 20 Nov 2024. https://hadefpartners.com/news-insights/insights/ministry-of-finance-releases-amended-ministerial-decision-on-unincorporated-partnerships-foreign-partnerships-and-family-foundations-announced-november-2024/
  15. Baker McKenzie, "UAE updates corporate tax guidance on family foundations", 17 Jun 2026. https://www.bakermckenzie.com/en/insight/publications/2026/06/uae-updates-corporate-tax-guidance-on-family-foundations
  16. Clyde & Co, "UAE Economic Substance Regulations: discontinued", 21 Oct 2024 (Cabinet Decision No. 98 of 2024). https://www.clydeco.com/en/insights/2024/10/uae-economic-substance-regulations
  17. DIFC Court of Appeal, [2020] DIFC CA 002, advisory opinion, 18 Jan 2021. https://edge.sitecorecloud.io/dubaiintern0078-difcexperie96c5-production-3253/media/project/difcexperiences/difc/difcwebsite/documents/familydocs/ca-002-2020-judgment---18-january-2021.pdf
  18. Ocorian with Ebdaa, "Shari'ah-compliant family foundations in the UAE", 25 Aug 2026. https://www.ocorian.com/knowledge-hub/insights/shariah-compliant-family-foundations-uae
  19. DMCC, "DMCC Establishes Foundations Regulations to Expand Private Wealth and Structuring Offering for Members", 23 Sep 2026. https://dmcc.ae/latest-news/dmcc-establishes-foundations-regulations-to-expand-private-wealth-and-structuring-offering-for-members
  20. RAK ICC, Fee Schedule 2026, effective 1 Jan 2026 (Internet Archive copy). https://web.archive.org/web/20260324061225/https://www.rakicc.com/wp-content/uploads/2026/01/RAK-ICC-Fee-Schedule-2026.pdf