What is a trust in Dubai?

It is a deed under which a trustee holds assets for the beneficiaries you name, usually under the law of DIFC, the Dubai International Financial Centre. The trustee must follow the deed, act in the interests of the beneficiaries and keep proper records. The DIFC Trust Law governs the trust, and the settlor decides at the start which assets go in and who benefits.

A trust is a deed under which a trustee holds assets. A foundation is a separate body corporate with its own charter and council. A DIFC foundation holds its property itself, not on trust for anyone, so the control structure differs.

Read the features of each form

DIFC is the Dubai International Financial Centre, and ADGM is the Abu Dhabi Global Market. They are two UAE financial centres, each with its own legal framework. Which one suits a given trust depends on where assets and people sit, so your lawyer explains the choice for your case.

A settlor can keep some control. DIFC Trust Law lets a settlor reserve powers, such as revoking or varying the trust, without invalidating it. The deed lists which powers apply, and your lawyer checks how far they reach in your case.

Read the features the law allows

Under DIFC Trust Law, a trust may continue indefinitely and no rule against perpetuities applies. The deed can still set an end date, or let the trustee wind the trust up early, for example when the youngest beneficiary reaches a set age.

The trust continues under its deed. The trustee keeps holding the assets for the beneficiaries and follows the deed and the letter of wishes. A deed that gives the settlor a power to revoke is read with the law that governs it, so your lawyer checks it.

Yes. A settlor may choose DIFC law whether or not they live in the DIFC. A non-resident goes through the same identity and source-of-wealth checks, using papers from the home country; documents not in English or Arabic may need a certified translation. A lawyer at home says how the structure is seen there.

See the steps and documents

Four facts usually decide it: where the family lives and works, where the assets sit, whether you want a trust or a foundation, and which centre your lawyer and bank already work with. DIFC has its own Trust Law. This page states the DIFC trust rules only; your lawyer confirms the ADGM trust rules.

No. Under the DIFC Foundations Law, a foundation may, but need not, have a Registered Agent (Art. 24). If you appoint one, its role and fee are named in your documents, and the charter and by-laws the law firm drafts set out what the agent does for the foundation.

Yes. Under the DIFC Foundations Law, the Registrar's Register of foundations is open to inspection (Art. 35). Plan for that if privacy matters to your family, and ask the law firm before filing which details of the foundation and its officers will appear on the Register.

Often a trust can change its governing law or its trustee, if its own terms and the law allow it. Your lawyer first reads the deed and the law that governs it now. We can then coordinate a change of trustee or of governing law.

See trust administration

The trustee holds title to the assets, follows the deed, keeps accounts and minutes, and refreshes identity checks. It decides distributions under the deed, guided by your letter of wishes. It must act in the beneficiaries' interests. It also keeps the beneficiaries informed as the deed requires.

A trust can hold many kinds of assets, including company shares and property. Each asset has its own steps for moving title to the trustee, so the law firm checks the transfer for a UAE company or property before it goes in. Families often hold a business through a holding company whose shares the trustee owns.

Only as far as the deed allows. A DIFC deed can reserve a power to vary it (Art. 84), for example to add a grandchild born later as a beneficiary. Without such a power, change is harder, so decide early what flexibility you want.

It depends on the assets, the structure and where people live. The UAE has a corporate tax regime for financial years beginning on or after 1 June 2023, which can matter for a holding company inside the structure. Your tax adviser says what applies to you.

Read the tax and reporting guide

Bring a list of the assets and where they sit, and say whether you lean towards DIFC or ADGM. Add a passport, an Emirates ID if you have one, and proof of where your wealth came from. Those papers speed up the checks.

See the documents the trustee asks for

Yes. Book a call, and we explain the options, the documents and who takes which role. A call carries no obligation, and we put the next steps in writing afterwards so that your own lawyer and tax adviser can review them.

No. We coordinate the parties and the papers. Legal advice comes from your lawyer and the law firm that drafts the deed, and tax advice, including on UAE corporate tax, comes from your own tax adviser. We send each of them the same drafts we send you.