Trusts and foundations in the UAE

Your situation

Most families come to this page with one of these in front of them:

• a family business whose shares are held personally, with no plan for what happens when the founder dies
• property in Dubai, London and elsewhere, each under a different inheritance law
• children in more than one country, or a second marriage
• a wish to keep the family's wealth together for a generation, rather than split it on the first death
• a worry that a court abroad could reach assets held here

A will answers who inherits. A trust or foundation answers who holds the assets, who runs them and on what terms, during life and after it.

Trust or foundation: the difference

Protection from claims abroad

All 3 UAE foundation laws, and the DIFC trust law, carry "firewall" provisions. A gift into the structure is not undone because a foreign law gives a relative a fixed share, and a conflicting foreign judgment is not enforced. The DIFC trust and foundation laws add that a foreign heirship right over a living person's property is not recognised. [1][3][4][5] RAK ICC strengthened its rules on 31 July 2025: a challenge to a foundation or a transfer into it must be brought within 3 years, and officers must ignore foreign court orders. [5]

Two limits. The protection is for lifetime gifts, not for gifts left in a will that is invalid under the law of the person's last home (DIFC Law, Article 13(2)(c)). And none of these provisions has been tested in a UAE onshore court applying UAE law, in particular for a Muslim founder. [3][7]

What it costs to register

Government fees only. Agents', trustees' and lawyers' fees are separate and usually larger.

• DIFC foundation: registration nil; licence USD 350 on setup and each year. [3]
• ADGM foundation: USD 1,000 in the first year, USD 500 a year after. [4]
• RAK ICC foundation: fees are not published officially. Ask for the current schedule.
• Minimum assets: USD 100 at ADGM and RAK ICC. The DIFC law sets no minimum. [3][4][5]

What we do

• We list the family's assets by country, owner and value, and the outcome you want for each.
• We set out whether a trust, a foundation or a holding company suits each asset, and in which registry, with the tax rules of every country involved in view.
• We design the structure and its order: what moves in, when, and what the will still needs to cover.
• We form and administer the UAE companies the structure holds, including RAK ICC companies, and keep their accounts.
• We coordinate the law firm, the registered agent, the trustee you appoint and your tax advisers to one timetable, and review the structure when the law or the family changes.

What a licensed partner does

• A law firm drafts the trust deed or the foundation charter and by-laws.
• A licensed trust company acts as trustee. You appoint it directly.
• A licensed registered agent files a DIFC or ADGM foundation with the registrar. You engage it directly.
• Tax advisers in each country confirm how the structure is taxed there.

You appoint and contract with each one directly. Under a Full Mandate, we run the whole plan.

Related guides

• DIFC, ADGM or RAK ICC foundation: which suits your family? →
• Wills in Dubai and the UAE →
• Inheritance law in the UAE →
• Holding companies in the UAE →

Questions people ask

What is the difference between a trust and a foundation?

A trust is an arrangement in which a trustee owns assets for others. A foundation is a legal entity that owns its own assets and is run by a council. Civil-law countries and the Gulf are more familiar with foundations; common-law countries with trusts. [1][3]

Can a foundation own property in Dubai?

DIFC and ADGM foundations can, in areas open to foreign ownership, under agreements with the Dubai Land Department. No official source confirms the same for RAK ICC foundations. [8]

Does a UAE foundation protect against forced heirship claims?

Each law says a gift into the foundation is not undone by a foreign forced-heirship rule, and that conflicting foreign judgments are not enforced. The rules are designed to protect lifetime gifts and have not been tested in a UAE onshore court. [3][4][5][7]

Who acts as trustee of a family trust in the UAE?

The family appoints the trustee, and a licensed trust company is the usual choice for a professional trustee. Under the federal trust law, the trust is registered with the competent authority in each emirate. [2] Marlborough Gulf does not act as trustee or arrange one.