How to Structure and Protect Your Assets in the UAE
Owning assets in the UAE without an appropriate ownership structure can create unnecessary risks. When ownership is not properly planned, issues such as inheritance claims or legal disputes can become more difficult to manage.
For this reason, ownership is increasingly arranged through dedicated legal entities, which is a straightforward way to keep everything secure and avoid complications down the line.
In the UAE, three primary structures are commonly used for this purpose: a Special Purpose Vehicle (SPV), a Family Foundation, and a Trust. Each serves a different purpose and is suited to different circumstances.
At a Glance
Understanding the Available Structures
SPV — Special Purpose Vehicle
An SPV is a separate legal entity established to hold specific assets, most commonly real estate or investment portfolios. It is typically the simplest and most cost-effective option for investors seeking a dedicated ownership vehicle without the additional features associated with succession planning.
An SPV may be suitable for clients who:
- own one or more properties in the UAE
- require a clear ownership structure that is widely accepted by banks
- focus primarily on holding and managing assets
An SPV allows founders to retain full control and is relatively straightforward to manage. However, it does not replace a will and offers limited support in more complex inheritance or family situations.
Setup cost: USD 7,000–15,000. Annual maintenance: USD 5,000–10,000.
Family Foundation
A Family Foundation is an independent legal entity created to hold and manage assets across generations. It gives founders full control over how their wealth is managed and passed on, with the rules set entirely on their own terms.
A Foundation may be suitable for clients who:
- have children, dependants, or other beneficiaries they wish to provide for
- own real estate, businesses, or investment portfolios in the UAE
- want a clear and enforceable succession plan
- wish to maintain involvement while reducing personal liability exposure
Family Foundations are widely accepted by UAE banks and provide a transparent ownership structure. They can also include a guardian to oversee distributions to minor beneficiaries. For many families, a Foundation offers the most practical balance between protection, flexibility, and cost.
Setup cost: USD 20,000–35,000. Annual maintenance: USD 7,000–15,000.
Trust
A Trust is a legal arrangement in which a licensed trustee holds and manages assets for designated beneficiaries, following the rules set by the founder. Unlike a Foundation or SPV, it does not form a separate legal entity, which makes it the most flexible and private of the three options.
A Trust may be suitable for clients who:
- hold assets across multiple jurisdictions
- have complex family, ownership, or succession arrangements
- require a high level of confidentiality and asset protection
- are comfortable appointing a professional trustee to oversee administration
A Trust is often unnecessary when the ownership structure is straightforward, asset values are relatively modest, or the founder wishes to remain closely involved in day-to-day decision-making. In such cases, a Foundation or SPV is typically the more practical solution.
Setup cost: USD 30,000–60,000+. Annual maintenance: USD 10,000–25,000+.
Jurisdictions: DIFC and ADGM
The Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) are the leading jurisdictions for private wealth structuring in the UAE. Both operate under English common law, maintain independent court systems, and are widely recognised for asset protection and succession planning.
Their legal frameworks provide the certainty and international recognition that private clients, family offices, and professional advisors require.
Key Questions
Is a will still required?
Not always. If assets are placed in a properly structured Foundation or Trust with designated beneficiaries, succession is handled by the structure itself. A will may still be useful in some cases, so legal advice is recommended.
Does the founder retain control?
Yes, if the structure is set up that way. In a Foundation, the founder can stay involved through the council or appoint a protector. In a Trust, control can be limited or guided through the trust deed, including approval rights for major decisions.
What are the tax implications?
The UAE has no personal income tax. However, taxes may apply in the beneficiary’s country of residence or depending on the type of income. It’s important to get tax advice for each situation.
Can UAE real estate be held through these structures?
Yes. Real estate can be owned via a Foundation or an SPV. In Trust setups, property is usually held through an SPV under the trust.
What protection do these structures provide in legal disputes?
They help separate assets from personal ownership. This can offer protection in cases involving creditors, divorce, or legal claims, depending on how the structure is set up.
Who manages the assets?
It depends on the setup. A Foundation is managed by a council or board, often with founder involvement. A Trust is managed by a licensed trustee. An SPV is run by its directors, who may include the founder.
Choosing the Right Structure
The right structure depends on each client’s situation and what they are looking to achieve.
For families with property in the UAE, a Foundation is usually the most practical starting point. Investors focused purely on ownership may find an SPV sufficient. For those with more complex international arrangements, a Trust is worth considering.
Our team works with clients to identify the right setup for their goals. If you would like to explore your options, we are available for an initial consultation.
