Main Jurisdictions for Foundations in the UAE (2025 Guide)
Foundations in the UAE have become a leading choice for wealth management, asset protection, family governance, estate planning, and charitable purposes. As global HNWIs, family offices, and international businesses look for secure, tax-efficient, and legally robust jurisdictions, the UAE offers several powerful foundation structures across multiple financial centers.
In this article, Affinitas DMCC explores the main UAE jurisdictions for Foundations, comparing DIFC, ADGM, and RAK ICC, while explaining how these structures can support wealth planning, succession, and family governance.
What Is a UAE Foundation?
A Foundation is a hybrid legal entity that combines elements of a trust and a company. It holds assets independently from its founder and operates according to its charter and bylaws. Foundations are commonly used for:
- Asset protection
- Succession planning
- Family wealth structuring
- Charitable giving
- Holding intellectual property and investments
In the UAE, Foundations are governed under specific legislation depending on the jurisdiction.
Main Jurisdictions for Foundations in the UAE
| Jurisdiction | Authority | Key Laws | Regulatory Body | Popular For |
|---|---|---|---|---|
| DIFC Foundation | Dubai International Financial Centre | DIFC Law No. 3 of 2018 | DIFC Registrar of Foundations | Private wealth, UHNWIs, international families |
| ADGM Foundation | Abu Dhabi Global Market | ADGM Foundation Regulations 2017 | ADGM Registration Authority | Family offices, succession planning |
| RAK ICC Foundation | Ras Al Khaimah International Corporate Centre | RAK ICC Foundation Regulations 2019 | RAK ICC Registrar | Offshore holdings, asset protection, global investors |
DIFC vs ADGM vs RAK ICC
| Feature | DIFC Foundation | ADGM Foundation | RAK ICC Foundation |
|---|---|---|---|
| Governing Law | Common Law (English legal principles) | Common Law (English legal principles) | Common Law-based offshore |
| Disclosure | Private (except regulator) | Private (except regulator) | Private |
| Founder Control | Strong | Flexible | Very flexible |
| Costs | Higher | Moderate | Lower |
| Best For | HNWIs, complex wealth structures | Family offices, succession | Offshore investors, asset protection |
| Public Registry | No | No | No |
| Physical Presence | Optional | Optional | Optional |
| Regulator Reputation | Tier 1 international | Tier 1 international | Growing reputation |
Why UAE Foundations Are Growing in 2025
As of 2025, UAE foundations are experiencing exponential growth due to:
- New corporate tax landscape – Foundations allow ring-fencing assets from operational businesses.
- Global transparency – UAE provides privacy while remaining OECD-compliant.
- Succession planning for international families – UAE’s expat population exceeds 88% (source).
- Growing trust in UAE legal system – DIFC and ADGM courts apply internationally recognized common law.
- Wealth migration from Europe and UK – UK HNWIs are increasingly redomiciling to UAE due to tax changes.
Key Benefits of Foundations in UAE
| Benefit | Details |
|---|---|
| Tax Neutrality | No personal income tax, no capital gains tax, no inheritance tax |
| Asset Protection | Shield personal/family assets from creditors or lawsuits |
| Succession Planning | Smooth intergenerational wealth transfer |
| Confidentiality | Ultimate privacy for family wealth and assets |
| Control | Founders can retain significant influence through bylaws |
| Flexible Beneficiaries | Family members, charities, or other entities can benefit |
Recent Developments (2025)
- DIFC Foundations have grown by over 25% in 2024-2025 (source).
- ADGM Foundations continue to attract European family offices (source).
- RAK ICC Foundations have doubled foreign investment registrations due to their competitive costs.
Who Should Consider a UAE Foundation?
- High-net-worth individuals
- Family offices
- Entrepreneurs with multiple businesses
- Expatriates with UAE residency
- International investors relocating wealth to UAE
- Philanthropists & charities
Step-by-Step Guide: Setting Up a Foundation with Affinitas DMCC
| Step | Action |
|---|---|
| 1️⃣ | Initial consultation and structuring advice |
| 2️⃣ | Selection of the best jurisdiction (DIFC, ADGM, RAK ICC) |
| 3️⃣ | Preparation of charter, bylaws, and founder documentation |
| 4️⃣ | Submission to relevant Registrar |
| 5️⃣ | Foundation establishment and issuance of certificate |
| 6️⃣ | Post-formation compliance and asset transfer assistance |
Why Choose Affinitas DMCC?
Affinitas DMCC is recognized as a leading corporate structuring and tax advisory firm in UAE, offering:
- Personalized jurisdiction selection
- End-to-end support from incorporation to governance
- Legal & tax advisory tailored to UK/EU/UHNWI clients
- Confidential wealth structuring solutions
- SPV + Foundation integration strategies
Frequently Asked Questions (FAQ)
Q1: Which UAE foundation jurisdiction offers the most flexibility?
RAK ICC offers maximum flexibility for asset protection. DIFC and ADGM are better for high-end family governance structures.
Q2: Are UAE foundations subject to corporate tax?
No corporate tax applies to passive wealth-holding foundations. However, economic substance rules may apply if engaging in active business.
Q3: Can non-residents establish UAE foundations?
Yes. UAE allows foreign founders without UAE residency, though residency offers additional benefits.
Q4: Is a local sponsor required for a UAE foundation?
No. Foundations are 100% foreign-owned legal structures.
Q5: Can foundations hold real estate?
Yes, foundations can hold real estate in UAE Freehold Zones, subject to local approvals.
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