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UAE trust: how it works and how to set one up
A UAE trust is a trust under the law of a financial centre in the UAE, DIFC in Dubai or ADGM in Abu Dhabi, where a trustee holds assets for the beneficiaries you name. A trust in Dubai usually follows the DIFC Trust Law. We coordinate the checks, drafting and reporting with a local partner. Ask for a quote.
Reviewed by a senior trust administrator, updated
Key facts
- Governing law
- The 2018 Trust Law governs trusts that choose DIFC law[1]
- Perpetuity period
- A DIFC trust may continue indefinitely; no perpetuity rule applies[1]
- Foreign law rules
- In DIFC, foreign heirship rights are not recognised for trusts (Art. 15)[1]
- Reserved settlor powers
- In DIFC, a settlor may reserve powers to revoke or vary a trust (Art. 84)[1]
- Reporting to authorities
- The UAE takes part in FATCA and the Common Reporting Standard[4]
Numbers in brackets point to the Sources list at the end of this page.
Swipe sideways to see the whole diagram.
- SettlorSets up the structure and transfers assets into it
- transfers assets under a trust deedTrusteeHolds the assets and manages them under the trust deed
- holds and distributesBeneficiariesPeople who benefit from the trust under its terms
- Trustee holds legal titleTrust assetsThe property held in the structure
Roles and notes
| Part of the structure | What it does |
|---|---|
| Settlor | Sets up the structure and transfers assets into it |
| Trustee | Holds the assets and manages them under the trust deed |
| Beneficiaries | People who benefit from the trust under its terms |
| Trust assets | The property held in the structure |
- The settlor signs a written trust deed and names DIFC or ADGM law, then transfers assets to the trustee.
- The trustee holds legal title and keeps the records, minutes and accounts for the beneficiaries.
- A letter of wishes guides the trustee's discretion; it does not bind the trustee.
- A protector, where the deed creates one, holds the powers the deed gives.
- A local partner firm, a law firm and a bank each take a defined role, named in your documents.
What a trust in the UAE is
A trust is a legal relationship set out in a deed, not a company. In the UAE the deed chooses the law of one of two financial centres: DIFC in Dubai or ADGM in Abu Dhabi.
A settlor may choose DIFC law whether or not they live in the DIFC (source: Trust Law, Art. 11).
A discretionary trust is a common choice. The trustee decides distributions under the deed, guided by a letter of wishes that you can update.
Beneficiaries may be named or described as a class, such as your children and their children.
A protector, where the deed creates one, holds the powers the deed gives.
The trustee follows the deed after the settlor steps back, falls ill or dies, so shares in a family company stay with one legal owner, the trustee.
Who a trust in the UAE suits
A UAE structure tends to suit people with a real link to the Gulf. Business families in the region often want shares in a family company and property to pass in an orderly way.
Expatriates who live and work in the UAE often hold assets at home and in the UAE, and want one deed and one set of records for both.
Families in Asia or Europe with a business, property or heirs in the UAE are a third group.
Typical aims are:
- keeping a family company in Dubai or Abu Dhabi under one owner as the generations change;
- holding property or an investment company through a holding company that the trustee owns;
- providing for children who live in different countries;
- writing succession wishes in a deed under DIFC or ADGM law.
A trust is not the right tool for every goal. For some families the first review points to a DIFC or ADGM foundation instead, or to another place.
DIFC: a trust law and a foundation law of its own
DIFC has its own Trust Law, DIFC Law No. 4 of 2018, and its own Foundations Law, DIFC Law No. 3 of 2018.
Under the Trust Law, a DIFC trust may continue indefinitely, and no perpetuity rule applies to it (source: Trust Law).
The same law lets a settlor keep powers to revoke or vary the trust without invalidating it (source: Trust Law, Art. 84).
Foreign heirship rights are not recognised for DIFC trusts (source: Trust Law, Art. 15). Ask a lawyer in each country where your heirs live how a court there sees it.
A DIFC foundation works differently. It is a body corporate separate from its founder (source: Foundations Law, Art. 10).
The foundation holds its property itself. A charter and by-laws set its rules, and a council runs it.
ADGM: a separate framework in Abu Dhabi
ADGM is the second centre, with a framework separate from DIFC’s.
ADGM foundations are governed by the Foundations Regulations 2017 (source: ADGM, Foundations Regulations 2017).
This page states the DIFC trust rules only; your lawyer confirms the ADGM trust rules.
Where the family lives, where the assets sit and which form you want usually decide the centre. Our answer on how to choose between DIFC and ADGM sets out the factors.
Where a trust fits in a wider plan
A trust works beside a will, a family company and the advice of your lawyer. In the UAE it often sits above a holding company.
Families who run a business often place the holding company’s shares in the trust, so the trustee owns the company and the company owns the operating assets.
Our family office structuring service shows how the pieces fit.
Only the assets transferred to the trustee pass under the deed. A villa, a bank account or shares left in your own name follow the succession rules that apply to your estate.
If you or your heirs live outside the UAE, ask a lawyer in each of those countries how far a DIFC or ADGM deed is recognised there.
Choosing between a trust and a foundation
DIFC has a statute for each form, and ADGM has its own Foundations Regulations 2017. The questions that decide the form are practical:
- Do family members want seats on a governing council, or a trustee who decides?
- Will the structure hold a UAE company or property, or assets abroad?
- Should the rules change later, and by whose consent?
- Which form do your lawyer and your bank already work with?
We pass your answers to the law firm, which advises on the form.
Use the side-by-side comparison tool to put the UAE next to another place.
What the trustee does
The trustee must follow the deed, act in the interests of the beneficiaries and keep proper records. In practice the work looks like this:
- holding title to the assets and keeping them separate from its own;
- trustee meetings with minutes for each distribution or major decision;
- accounts and an asset report that we pass to you;
- periodic refresh of identity checks on the people connected to the trust;
- collecting the tax residence forms used for information exchange.
What stays with you is the choice of beneficiaries, the letter of wishes, and either investment decisions or the choice of a professional manager.
We work with a local partner where the work is done in the UAE; your engagement letter sets out its role.
We handle client contact and the checks, and we coordinate the partner, the law firm and the bank. Our trust administration service describes the routes for an existing trust.
The UAE takes part in FATCA and the Common Reporting Standard (source: UAE Ministry of Finance, Automatic exchange of information). The tax and reporting page explains what that means.
Documents and steps to start
The trustee asks for identity documents, evidence of where your money and wealth came from, and the details that go into the deed. A UAE resident adds local papers such as an Emirates ID.
A law firm drafts the deed, or the charter and by-laws for a foundation, with your letter of wishes alongside. You review the draft with your own lawyer.
Timing depends on documents and third parties: the law firm, the bank and, for a foundation, the Registrar. We give you a checklist and show where each step stands.
The step-by-step set-up guide lists every paper and stage. The cost guide explains who charges for what.
Facts we reviewed, with source and date
The DIFC provisions below come from the DIFC statutes. Your lawyer confirms how each one applies to your deed before it is drafted.
| Fact | Where it applies | Source |
|---|---|---|
| A DIFC trust may continue indefinitely; no perpetuity rule applies | DIFC | Trust Law |
| A settlor may choose DIFC law whether or not resident in the DIFC | DIFC | Trust Law, Art. 11 |
| Foreign heirship rights are not recognised for DIFC trusts | DIFC | Trust Law, Art. 15 |
| A DIFC foundation is a body corporate separate from its founder | DIFC | Foundations Law, Art. 10 |
| Foundations are governed by the Foundations Regulations 2017 | ADGM | ADGM Foundations Regulations 2017 |
Basis: the Trust Law and Foundations Law of DIFC (consolidated March 2024), accessed 2026-11-05.
Read the law and features page for the detail, or the answers to common questions first.
You can also browse every place we cover.
When you are ready, request a quote for the UAE. It is an estimate based on what you tell us, not a binding offer, and we confirm it once we have seen the structure and the assets.
Frequently asked questions
Who can set up a trust in the UAE?
A settlor is usually an adult who owns the assets being settled. In the UAE that is often a business owner in the Gulf, an expatriate with assets in several countries, or parents settling assets together. Each settlor names the assets and the beneficiaries, and provides identity and source-of-wealth papers before drafting.
Is a trust in Dubai the same as one in Abu Dhabi?
No. DIFC in Dubai and ADGM in Abu Dhabi are separate financial centres with their own legal frameworks, so the deed, the choice of trustee and any filing depend on the centre you choose. A lawyer compares them against your facts.
How do I start in the UAE?
Send us an enquiry or a quote request with three things: what the structure should do, the assets involved and the countries where your family lives. We reply with the questions for your case, including whether DIFC or ADGM fits better. Nothing is binding at this stage, and the set-up page shows the full sequence.
Should I use a trust or a foundation in the UAE?
It turns on who should run the structure. In a trust, the trustee holds the assets under the deed. A DIFC foundation is a body corporate run by its council under a charter and by-laws, and ADGM has foundation rules of its own. Families who want a governing body they can sit on often look at foundations.
Who can help me start in the UAE?
We coordinate your enquiry, identity checks and documents, working with a local partner whose role your engagement letter sets out. A law firm drafts the deed, a bank holds the account, and your own lawyer and tax adviser review every draft before anything is signed.
Sources
- Trust Law 2018, Dubai International Financial Centre (consolidated March 2024), read 2026-11-05.
- Foundations Law 2018, Dubai International Financial Centre (consolidated March 2024), read 2026-11-05.
- ADGM: Foundations Regulations 2017, read 2026-11-05.
- UAE Ministry of Finance: Automatic exchange of information (FATCA and CRS), read 2026-11-05.