The trust is one of the oldest arrangements through which wealthy families used to protect their assets. It first appeared in the United Kingdom, however it rapidly expanded all over the world. The Sharia Law in the UAE does not provide for the creation of trust, but considering its emirate has its own regulations Dubai has acknowledged the trust and enabled the Trust Law in 2005. This law was first amended in 2007 and then 2010. One can set up a trust only in Dubai International Financial Centre (DIFC), one of the most reputable free zones of the emirate.
Our company incorporation agents in Dubai can offer more information on the Trust Law.
Requirements for setting up a trust in Dubai
Creating a trust in Dubai is not difficult, as the DIFC Authority, the main body in charge of the recognition and registration of trusts, does not impose restrictions to those interested in using this type of entity to protect their estates. Both local and foreign citizens are welcome to establish trusts in the Dubai International Financial Centre Free Zone. Moreover, they can set up the following types of trusts:
- charitable trusts;
- non-charitable trusts;
- express trusts;
- protective trusts.
Our Dubai company formation consultants can explain the differences between the types of trusts enumerated above.
How to establish a trust in Dubai
There are two ways of creating a trust in Dubai:
- by drafting a will;
- by preparing a deed of trust, also known as a codicil.
It should be noted that establishing a trust in DIFC implies a settlor – the person creating the trust, a trustee- the person or company in charge with the administration of the trust, the beneficiary or beneficiaries- those benefitting from the assets held in the trust.
The Dubai legislation allows for the trust to be established for a limited or unlimited period of time, but it also provides for its termination prior to the time settled in the deed. Dubai trusts must be registered with the DIFC Authority and any issue which could appear will be handled by the DIFC Court of Law.
For full information on how to settle a trust in Dubai, please feel free to contact us. Our local agents can also help those who want to open a company in Dubai.