UAE Trusts and Foundations for Tax-efficient Wealth Preservation

Trusts have been around a long time. Even though the Dubai International Finance Centre (DIFC) and the Abu Dhabi Global Market (ADGM), both free zones with their own bespoke legal systems, only introduced trusts in recent years, trusts and similar legal instruments have a long history spanning multiple legal systems.

The trust most familiar to practitioners and businesspeople alike is probably the English Common Law trust. With its origins in medieval England, where nobles departing on crusades needed to temporarily convey their lands to caretakers, trusts have evolved into a legal instrument that provides for tax-efficient protection and growth of wealth. Similar legal mechanisms exist in Civil Law, such as Sharia Law, such as the waqf.