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A key benefit is the ability to ensure a high level of confidentiality for the founders, beneficiaries, and asset structure.
Foundations can be established in three UAE free zones: DIFC, RAK ICC, and ADGM. Note that ADGM foundations are limited to purposes such as education and treatment of family members.
Based on the foundation's specific goals and asset framework, one of three free zones is selected for its establishment. The optimal corporate governance system is then designed individually for each case.
The minimum share capital required to set up a foundation is USD 100. While a foundation can own real estate, it is restricted to the Emirate where it is established or abroad. For example, an ADGM foundation may own property in Abu Dhabi or internationally but not in Dubai.
The governance of a foundation is handled by its council. For foundations established for charitable purposes, trustees also participate in the governance.
Information about the management and beneficiaries of a foundation is disclosed only to the relevant free zone authorities.
Public registers in ADGM and DIFC display limited information, such as the foundation’s name, establishment date, address, and status. They do not disclose details about founders, beneficiaries, council members, or trustees. RAK ICC does not maintain a public register.
Founder
The founder has the authority to make changes to the foundation’s objectives, statutes, beneficiaries, or its governing bodies, as well as to terminate its activities.
Council
A foundation’s council, typically with at least
two members, manages its assets and ensures beneficiaries' interests are served. Council members are appointed by the founder at the foundation's inception, with the founder often being one of the members.
Guardian
For charitable foundations, a guardian oversees the council’s activities, and the founder may serve as the guardian unless they are part of the council.
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