How To Set Up A Trust In Dubai (2025 Playbook)

By Author: Radiantbiz
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1) Executive Snapshot: Why a UAE trust in 2025

Asset protection, succession that actually works across jurisdictions, and serious privacy—without the melodrama. The UAE now recognizes trusts at the federal level and also offers two common-law zones (DIFC and ADGM) with trust frameworks purpose-built for global families. Translation: you can structure cleanly, govern tightly, and sleep better.
UAE Legislation

2) Pick Your Playground: Mainland (Federal Law) vs. DIFC vs. ADGM
2.1 Scope and governing law

Federal (Mainland) trust: Federal Decree-Law No. 31 of 2023 confers separate legal personality on a trust and requires initial registration; the law expressly carves out Financial Free Zones (they run their own regimes).
UAE Legislation

DIFC trust: Governed by DIFC Trust Law (No. 4 of 2018), with 2024 “firewall” enhancements that insulate assets from certain foreign heirship and creditor claims. Common-law courts, English drafting style, predictable jurisprudence.
rivistataf.eu
step.org

ADGM trust: Trusts (Special Provisions) Regulations 2016 enable robust ...
... private trusts, including non-charitable purpose trusts; ADGM is also moving toward greater official access to certain trust particulars (regulator-only), enhancing transparency without going fully public.
Abu Dhabi Global Market
ADGM

2.2 Confidentiality and registries

Mainland trusts require registration with a competent authority and a “Record”; DIFC trusts typically are not publicly registered, supporting confidentiality, though authorities can verify particulars when legitimately requested. ADGM currently has no public trust register; a 2024 consultation considers a regulator-accessible register of certain trust information.
UAE Legislation
Ocorian
GSL Law & Consulting
Abu Dhabi Global Market

3) Trust Archetypes & Use Cases

Inter vivos discretionary family trusts for multi-generational wealth, fixed-interest trusts for predictable distributions, and purpose trusts for holding operating companies or collectibles. In DIFC/ADGM, trusts can even house digital assets and IP alongside traditional portfolios.
Ocorian

4) The Cast: Settlor, Trustee, Beneficiaries, Protector

The settlor seeds the corpus; the trustee holds legal title and owes fiduciary duties; the beneficiaries enjoy equitable interests; the protector—when appointed—monitors, consents to major acts, or can even replace a trustee under express powers. UAE federal law codifies these roles and allows explicit protector powers (and prohibitions) in the instrument.
UAE Legislation

5) Pre-Setup Readiness: KYC, source of wealth, asset inventory

Banks and registrars expect a clean provenance of funds, corporate charts for any contributed shares, and valuation support for hard assets. Assemble IDs, utility bills, tax IDs where relevant, corporate constitutions, board resolutions, and a schedule of assets with lex situs notes.

6) Drafting the Trust Instrument: Non-negotiables and smart clauses

A compliant instrument in the UAE must be in writing, signed, registered (mainland), and specify purpose, beneficiaries (or a mechanism), property description, duration, trustee appointment, and powers. Advanced drafting adds reserved powers, investment committee mechanics, protector consent matrices, and distribution waterfalls.
UAE Legislation

7) Registration & Approvals: Who stamps what, where

Mainland: Instrument approved by the competent authority, then recorded; the trust gains legal personality from initial registration. Court supervision is available for gaps and disputes.
UAE Legislation

DIFC: No public register for private trusts; follow trust-law formalities and trustee acceptance. 2024 firewall provisions strengthen asset insulation against foreign judgments.
Ocorian
step.org

ADGM: Create per 2016 Regulations; no public register; regulator access to particulars under proposed amendments.
Abu Dhabi Global Market
+1

8) Banking & Brokerage Onboarding: Practicalities that bite

Open accounts in the trustee’s name “as trustee of [Trust Name].” Expect enhanced due diligence on beneficiaries and controllers, CRS/FATCA classifications, and—where portfolios are managed—an investment policy statement signed by the trustee (and sometimes the protector).

9) Funding the Trust: Cash, shares, and Dubai real estate

Cash/securities: Simple assignment or subscription from settlor to trustee with clear asset schedules.

Operating companies: Board/shareholder resolutions, updated statutory registers, and filings in the place of incorporation.

Dubai real estate: Title is issued by the Dubai Land Department (DLD). DIFC-based entities, notably foundations, may own DLD-registered property under a DLD–DIFC MoU; where using trusts, title typically sits with the trustee or an SPV due to registration realities. Many families therefore park property in a DIFC foundation that the trust controls. Proceed with specialist counsel: market practice and agency policy evolve.
Dubai Land Department
Al Tamimi & Company
turtl.tamimi.com

Caution: Some guides still state a “trust cannot own property in Dubai.” What matters is who DLD will register as owner—usually a recognized juridical person (e.g., foundation or company) or a trustee on trust. Structure accordingly.
Baker McKenzie Resource Hub

10) Tax & Reporting: Corporate Tax era, exemptions, and VAT edge cases

The UAE introduced federal Corporate Tax at a 9% headline rate for financial years starting on/after 1 June 2023. Juridical persons are within scope; family-wealth vehicles may qualify for special treatment if they meet strict conditions (the “family foundation” style relief). Individuals remain outside CT unless running a business; VAT arises only on taxable supplies. Obtain bespoke advice before trading within a trust or foundation.
UAE Ministry of Finance
UAE
PwC Tax Summaries
Curtis, Mallet-Prevost, Colt & Mosle LLP

11) Governance Architecture: Investment policy, protector powers, letters of wishes

Codify a crisp IPS, escalation thresholds, and reporting cadence. Use a protector for negative consents (e.g., change of trustee, distributions to minors, risky transactions). A non-binding, confidential letter of wishes guides the trustee—useful, human, and future-proof.

12) Ongoing Compliance: UBO, AML, records, and audits

UAE entities must maintain and (where required) file Ultimate Beneficial Owner details; 2023 updates supersede earlier rules and tighten definitions. Expect AML-caliber record-keeping for trustees, plus regulator-only visibility in the free zones to meet international standards. Keep minute books, distribution consents, and annual statements pristine.
UAE Legislation
Central Bank Rulebook
PwC

13) Cross-Border Documents: Apostille myth vs. MOFAIC reality

The UAE is not an Apostille Convention country. Foreign documents bound for UAE use go through embassy/legalization chains and MOFAIC attestation (now with more digital touchpoints). Plan lead times for notarizations, legalizations, and translations.
Ministry of Foreign Affairs UAE
VFS Global

14) Amend, Re-paper, or Exit: How a trust evolves—or ends

Well-drafted UAE trusts allow amendments or partial/total revocation if the instrument reserves that power; termination routes include expiry, purpose achieved, unanimous (eligible) beneficiaries, or court order. Distribution on winding-up follows the instrument or reverts to the settlor/heirs if silent—after settling liabilities.
UAE Legislation

15) Pitfalls to Dodge: Hard-won lessons

Drafting with no reserved powers, then regretting it.

Funding property before aligning with DLD mechanics.

Treating CT/VAT as “someone else’s problem.”

Neglecting UBO updates after a family event.

Mixing personal and trust expenses—an auditor’s feast.

16) Quick Timeline & Document Pack

Week 1–2: scoping, KYC, term-sheet, trustee selection.
Week 3–4: instrument drafting, IPS, protector letter.
Week 5–6: sign-off, (mainland) approvals/recording, bank onboarding.
Week 7+: asset transfers, registers updated, distribution cadence live.
Pack: IDs, PoA (if any), SoW/SoF, corporate docs, valuations, translations, legalization proofs, IPS, letter of wishes, trustee acceptance.

17) Trust vs. Foundation: When to pick each

Choose a trust for equitable-title flexibility, discretionary distributions, and cross-border lineage planning. Choose a foundation when you need a local juridical titleholder (e.g., DLD property), board-style governance, or clearer CT treatment under “family foundation” guidance. Many families deploy both: the foundation owns operating assets; the trust holds the foundation interests.
Al Tamimi & Company
Curtis, Mallet-Prevost, Colt & Mosle LLP

Step-by-Step Setup (Actionable Cheatsheet)

Select jurisdiction (Mainland vs DIFC vs ADGM) based on asset mix, court preference, and confidentiality needs.
UAE Legislation
Abu Dhabi Global Market

Engage a professional trustee (or corporate trustee/SPV) and define fee/governance economics.

Draft the instrument with mandatory federal/DIFC/ADGM elements; add reserved powers and protector scope.
UAE Legislation

Register/record where required (mainland), or complete free-zone formalities (DIFC/ADGM).
UAE Legislation

Open accounts and approve an IPS.

Transfer assets—shares by instrument and registry filings; Dubai real estate via DLD-compliant route (often foundation or trustee/SPV).
Dubai Land Department
Al Tamimi & Company

Map tax & filings under CT (and any elections/reliefs available).
UAE Ministry of Finance

Set compliance cadences for UBO/AML and internal reporting.
UAE Legislation

If done right, a Dubai trust isn’t just paperwork—it’s a durable governance engine. Build it once, maintain it lightly, and let it compound calm.