The UAE as a Leading Global Hub for Private Wealth Management
Africa Focus
Dipali MaldonadoPartner,Private Client Services
Yara AlmouslyAssociate, Private Client Services
The United Arab Emirates (UAE) has rapidly established itself as a premier jurisdiction for private wealth management, attracting high net worth individuals (HNWIs), and families from around the world. This reputation is underpinned by a sophisticated legal infrastructure, robust regulatory frameworks and a suite of wealth structuring that offer flexibility, asset protection and succession planning advantages. The UAE’s strategic approach to legal, regulatory and lifestyle offerings has positioned it at the forefront of international wealth preservation and legacy planning.
Central to the UAE’s appeal are its two financial freezones: the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM). Both operate under independent legal systems based on English common law, providing a familiar and reliable environment for international clients and practitioners. These jurisdictions provide a familiar, reliable and internationally respected legal framework, supported by specialized courts and modern dispute resolution mechanisms, This legal certainty is crucial for families seeking to establish multi-generational wealth structures as well as serves to enhance investor confidence.
The regulatory environment in the UAE recognizes the importance of confidentiality, control and long-term sustainability in wealth planning. The frameworks allow principals to retain certain powers or influence over the administration of assets, without compromising the legal integrity of structures.
The UAE offers a diverse range of wealth structuring solutions designed to meet the complex needs of HNWIs and families. Among the most prominent vehicles are foundations, trusts, and family offices, all of which are supported by modern and internationally aligned regulatory frameworks within the DIFC and ADGM.
Foundations Foundations have gained significant popularity due to their ability to combine the benefits of a corporate entity with the traditional asset protection features associated with trusts. Operating as standalone legal persons, foundations can hold assets, enter into contracts, and serve specific purposes — whether private, charitable, or mixed — without being subject to ownership by shareholders. This structure allows founders to maintain a degree of influence over the administration and distribution of assets through the appointment of council members and the establishment of reserved powers. Both the DIFC and ADGM offer sophisticated foundations regimes, although practitioners must be mindful of nuanced differences concerning governance obligations, confidentiality provisions, and reporting requirements.
From a fiscal perspective, UAE foundations—being recognized as standalone legal persons and fall within the scope of the UAE Corporate Tax regime by default. The Corporate Tax Law (Federal Decree-Law No. 47 of 2022) applies to juridical persons carrying on business in the UAE; accordingly, if a foundation engages in commercial activity or holds assets generating active income, it may be liable to the standard 9% corporate income tax, subject to relevant thresholds. However, the law also provides a deliberate carve-out for qualifying private wealth structures, including foundations, when used for non-commercial purposes such as family succession, asset protection, and long-term wealth preservation. In such cases, the foundation may seek classification as a Family Foundation and to be treated as tax transparent, i.e. not a taxable person, provided it satisfies specific regulatory criteria and submits a formal application to the Federal Tax Authority (FTA).
An additional development introduced under Ministerial Decision No. 261 of 2024 allows further flexibility through the recognition of Unincorporated Partnership status under Article 17 of the Corporate Tax Law. A juridical person wholly owned and controlled by a Family Foundation that has itself been granted such status may also apply for the same tax-transparent treatment, provided it meets all regulatory conditions. This provision effectively enables a "look-through" approach across multiple tiers of ownership, allowing subsidiary entities to be treated as tax-transparent when part of a compliant foundation structure. This facilitates the creation of layered foundation-led holding structures, enabling consolidation of wealth and governance across generations without unnecessary corporate tax exposure at intermediate levels.
That said, eligibility for and maintenance of Family Foundation status requires ongoing compliance with the FTA’s governance, reporting, and disclosure obligations. Foundations and their controlled entities must maintain accurate records regarding asset types, income sources, management decisions, and beneficiary interests. Moreover, founders and beneficiaries residing outside the UAE must also consider the potential tax implications in their jurisdictions of residency or domicile, as income or gains attributed to them may give rise to additional reporting or tax liabilities abroad.
This regulatory evolution underscores the UAE’s commitment to offering sophisticated, tax-efficient solutions for legacy planning while aligning with international standards of transparency and accountability.
Trusts Trusts are another cornerstone of wealth management within the UAE’s common law centers. Both DIFC and ADGM recognize and regulate trusts in a manner consistent with international best practices. Trusts established within these jurisdictions afford settlors considerable flexibility, allowing for the appointment of protectors, retention of certain powers, and the tailoring of beneficiary rights. Trust structures are particularly effective for asset protection purposes, succession planning, and managing family dynamics, particularly where discretion and confidentiality are paramount. Importantly, the enforceability of trusts is reinforced by the sophisticated and independent court systems in both financial centers.
From a tax perspective, the treatment of trusts in the UAE depends largely on how the trust is structured and the activities it undertakes. Where a trust structure involves a Private Trust Company (PTC) or operates through a corporate vehicle that engages in business-like activities, the entity may fall within the scope of the UAE Corporate Tax Law, and become subject to the standard 9% corporate tax rate if applicable thresholds are met. However, where a trust is established primarily for private wealth management, succession planning, or family investment purposes, and does not conduct commercial activities, it may be eligible to apply for the Family Foundation status under the UAE corporate tax framework. This exemption is aimed at preserving the integrity of family-owned wealth vehicles and reflects the UAE's broader policy objective of positioning itself as a competitive and supportive jurisdiction for private wealth and legacy planning. As such, with appropriate structuring and purpose-aligned documentation, trusts in the UAE can continue to benefit from favorable tax treatment while remaining fully compliant with local regulations.
Family Offices Family offices represent an increasingly important element of the UAE's wealth management landscape. In 2023, the DIFC introduced a dedicated Family Arrangements regime, providing clear and flexible frameworks for the establishment of single family offices (SFOs) and removing the requirement for SFOs to be registered with the DIFC’s regulator, the DFSA (note that multi family offices (MFOs) are required to be registered with he DFSA). Meanwhile, the ADGM supports both single and multi-family offices under its broader commercial licensing regime. Family offices in the UAE benefit from a strategic location, tax efficiency, regulatory support, and access to a deep pool of financial and professional services.
From a tax perspective, SFOs structured as corporate entities are in principle subject to the UAE Corporate Tax Law,. However, where such entities are registered within a free zone and carry out "Qualifying Activities" as defined under Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023, they may be eligible for the 0% corporate tax rate on qualifying income.
In practice, many SFO functions—such as managing proprietary investments, holding shares in other entities, or overseeing family-owned assets—can fall within the scope of qualifying activities, provided the entity meets the relevant substance and arm’s length requirements, maintains adequate economic presence in the UAE, and refrains from generating non-qualifying income. Additionally, where an SFO is used solely for internal wealth oversight and does not engage in commercial transactions with third parties, the structure may be considered non-commercial and potentially eligible for exempt person status - similar to foundations or trusts used for private wealth purposes. The careful classification and structuring of SFO activities are therefore critical to ensuring the preservation of tax neutrality.
Restricted Scope Companies & Funds In addition to foundations, trusts, and family offices, the UAE offers other sophisticated wealth structuring vehicles, including Restricted Scope Companies (RSCs) in ADGM and fund structures in both the DIFC ADGM.
RSCs are designed to provide enhanced privacy and flexibility for HNWIs and families. RSCs are subject to lighter disclosure and reporting requirements compared to standard companies, making them particularly attractive for holding private assets, managing family investments, or serving as special purpose vehicles within broader wealth structures. Their limited public disclosure obligations and tailored governance frameworks allow families to maintain confidentiality while benefiting from the robust legal environment of ADGM.
From a tax perspective, Similar to SFO, RSCs would also fall within the scope of UAE corporate tax regime and may benefit from the 0% rate provided they are registered in a free zone, meet the relevant substance requirements, and undertake qualifying activities within the scope of the applicable legislation.
Meanwhile, both DIFC and ADGM have developed internationally aligned fund regimes that cater to a wide range of investment and wealth management objectives. These jurisdictions offer various fund types, including private funds, qualified investor funds, and exempt funds, each with distinct regulatory requirements and investor eligibility criteria. The flexibility of these fund structures enables families and HNWIs to pool assets, diversify investments, and implement bespoke governance arrangements, all within a tax-efficient and well-regulated environment. Funds established in the DIFC and ADGM benefit from strong investor protection measures, independent oversight, and access to a deep pool of professional service providers, making them ideal vehicles for collective investment, succession planning, and intergenerational wealth transfer.
The UAE offers a favorable tax environment for investment funds, with the possibility of full exemption from corporate tax. To qualify, funds must meet certain conditions and obtain approval from the FTA.
In recent years, the UAE has made significant strides in adopting and implementing international standards of transparency and accountability. This includes robust anti-money laundering (AML) and counter-terrorism financing (CTF) measures, as well as participation in global information-sharing initiatives such as the Common Reporting Standard (CRS). These developments are designed to enhance the jurisdiction’s credibility, ensure compliance with global best practices, and maintain its attractiveness as a reputable financial center.
While the UAE continues to offer a high degree of privacy compared to many other jurisdictions, the need to comply with international transparency standards means that families must carefully balance their confidentiality objectives with the requirements for regulatory compliance. Absolute confidentiality is no longer feasible in the context of global information-sharing initiatives. Instead, the focus has shifted to achieving a balance between privacy and compliance, with an emphasis on transparency, robust governance, and proactive risk management, thereby enhancing the UAE’s reputation as a credible and sustainable hub for international wealth.
While the UAE continues to offer a high degree of privacy compared to many other jurisdictions, the need to comply with international transparency standards means that families must carefully balance their confidentiality objectives with the requirements for regulatory compliance.
The UAE’s preeminence as a destination for wealth management can be attributed to a combination of favorable fiscal policies, legal certainty, and socio-economic stability.
Fiscal Advantages The UAE offers a highly competitive tax environment for individuals and family enterprises. There is no personal income tax on salary, investment income, or capital gains, 0% withholding taxes on dividends, interest or royalties and no restrictions on repatriation of profits. Furthermore, inheritance and estate taxes are not levied, allowing for the efficient transfer of wealth between generations. While the UAE has introduced a corporate income tax at a rate of 9% (applicable from 2023 onwards), various exemptions apply, particularly for entities engaged solely in the holding of passive investments or for structures falling below the income threshold. Notably, the 0% withholding taxes on dividends, interest, and royalties enhances the efficiency of cross-border wealth structuring, supported further by the UAE’s extensive network of double tax treaties.
Legal Certainty and Regulatory Sophistication The DIFC and ADGM offer independent, internationally respected legal frameworks based on English common law principles, ensuring a high degree of legal certainty and predictability. The availability of specialist courts, alternative dispute resolution mechanisms, and a regulatory environment that prioritizes transparency and best practice standards further strengthens the UAE’s offering.
Lifestyle and Connectivity Beyond legal and regulatory considerations, the UAE’s appeal is bolstered by its high standard of living, quality of life, and strategic geographic location. The country offers world-class infrastructure, advanced healthcare and education, and direct air connectivity to over 100 countries. Initiatives such as the Golden Visa program provide long-term residency options, further enhancing the UAE’s attractiveness as a residence for HNWIs and their families.
Flexibility in Structuring The UAE’s flexible regulatory environment allows for bespoke solutions tailored to the specific needs of each HNWI or family. Whether establishing a standalone DIFC Foundation, an ADGM Trust governed by a family charter, or a family office coordinating multi-jurisdictional assets, the UAE offers structures that can be adapted over time to meet evolving family and business dynamics.
The UAE stands out as a premier global hub for private wealth management, offering a unique combination of robust legal frameworks, flexible and sophisticated structuring options, and a progressive, low-tax environment. Through its internationally respected financial free zones, the DIFC and ADGM, the UAE provides HNWIs and families with the tools and regulatory certainty needed to preserve, protect, and grow their wealth across generations. By aligning with international transparency standards while maintaining a strong focus on privacy, governance, and compliance, the UAE continues to attract global families seeking a secure, adaptable, and future-proof jurisdiction for their legacy planning and wealth consolidation needs.
For further information,please contact Dipali Maldonado and Yara Almously.
Published in October 2025
