On 23 September 2026, DMCC, Dubai’s largest free zone, enacted its Foundations Regulations. It becomes the fourth place in the UAE where you can set up a foundation, after DIFC, ADGM and RAK ICC.
This is not a charity. A UAE foundation is a legal “container” that holds family assets and passes them on to the next generation. Below: what DMCC announced, and what a foundation actually does for you — in tables and plain language.
- What happened? You can now set up a foundation in DMCC (the UAE’s fourth regime: DIFC, ADGM, RAK ICC, DMCC). Minimum assets US$100; onboarding opens within weeks
- What is a foundation? A legal entity with no shareholders. Assets are held in its name and run for the family under rules the founder sets
- Biggest benefit: when the founder dies there is no account freeze and no probate — the assets simply carry on for the family
- Caveats: running costs start in the thousands of dollars a year and year one can reach five figures; for smaller estates a DIFC will is often enough; home-country taxes still apply
What DMCC announced
| Regulations enacted | 23 September 2026 (announced 12 June 2026) |
|---|---|
| Applications open | Guidance and digital onboarding “in the coming weeks” |
| Minimum assets | US$100 |
| Legal status | Separate legal entity, distinct from founder, council, guardian and beneficiaries; holds assets in its own name |
| Founder’s powers | Investment decisions, appointments and beneficiary designations can be reserved to the founder or a nominee |
| Asset protection | “Firewall” against foreign forced-heirship rules and inconsistent foreign judgments; fraudulent transfers are not protected |
| Registered agent | Optional if the foundation has a registered office in DMCC |
| Courts | DIFC Courts by default; three-year limitation period for specified claims |
Ahmed Bin Sulayem, DMCC’s Executive Chairman and CEO, called it “a modern and internationally aligned regime”. It completes a sequence: SPV and holding-company licences (2025), the DMCC Wealth Hub (September 2025) and the FinX financial hub (November 2025). DMCC hosts more than 25,000 companies.
What a foundation is, in three minutes
Once assets go in, the legal owner is the foundation, not you. So if something happens to you, the assets are not part of your estate, and they are ring-fenced from personal troubles such as divorce, debt or litigation. Everything runs by the rules you wrote into the charter and by-laws.
The four roles
Company, trust or foundation?
| Company | Trust | Foundation | |
|---|---|---|---|
| Legal personality | Yes | No (trustee owns) | Yes |
| Who owns the assets | Shareholders | Trustee | The foundation itself |
| On death | Shares pass through the estate | Generally outside (depends on terms) | Outside the estate |
| Term limit | None | Often capped | None (can be perpetual) |
| Best for | Running a business | Succession in common-law countries | Holding and passing on UAE assets |
Two documents set the rules. The Charter is public: name, purpose, basic structure. The By-laws are private: who gets what, and when. The family detail lives in the by-laws, out of public view.
Seven benefits of a UAE foundation
Foundation assets are not part of the estate: no account freeze, no court process. Distributions and management continue as written.
Shields assets from foreign forced-heirship rules and inconsistent foreign judgments. Transfers made to defraud creditors are not protected.
Can be perpetual: hold property for good and let the rent support children and grandchildren.
Who decides, who receives how much and when, who may sell the business — written into the by-laws instead of left to memory.
Only the charter basics are public. Beneficiaries and distribution rules are not, and there is no shareholder register.
UAE corporate tax (9%) applies in principle, but a “family foundation” can apply to be tax-transparent: income is treated as the beneficiaries’ own and, for individuals, is generally not taxed.
DIFC and ADGM foundations can register Dubai freehold property in their own name under DLD memoranda. DMCC foundations: awaiting guidance.
If the owner dies: personal name vs foundation
| Held personally | Held by a foundation | |
|---|---|---|
| Bank accounts | Generally frozen | Continue as the foundation’s accounts |
| Property and rent | Locked until re-registered | The foundation keeps managing |
| Process | Court process (a will helps, but still takes time) | No probate |
| Who receives | Without a will: statutory shares (Sharia for Muslims; civil personal-status law for non-Muslims) | As written in the by-laws |
| Shares in a business | Split among heirs | Held together by the foundation |
A registered DIFC or ADJD will lets you choose who inherits — but the gap between death and the end of the process remains. A foundation removes that gap altogether.
On moving property in: transferring a property you already own into a foundation is often processed at DLD’s gift-registration rate (0.125% of valuation, minimum AED 2,000) rather than the 4% sale fee — though DLD decides the rate case by case.
DIFC vs ADGM vs RAK ICC vs DMCC
More than 3,000 foundations are registered across the UAE; DIFC, the most established, reached 1,409 at the end of June 2026 (+67% year on year).
| DIFC | ADGM | RAK ICC | DMCC | |
|---|---|---|---|---|
| Since | 2018 | 2017 | 2019 | Sept 2026 |
| Where | Dubai | Abu Dhabi | Ras Al Khaimah | Dubai (JLT) |
| Courts | DIFC Courts (common law) | ADGM Courts (common law) | DIFC or ADGM Courts by election | DIFC Courts by default |
| Minimum assets | None set in law | US$100 | US$100 | US$100 |
| Registered agent | Optional | Required | Required | Optional with a DMCC office |
| Dubai property | Yes (DLD memorandum) | Yes (DLD memorandum) | Confirm case by case | Awaiting guidance |
| Registered | 1,409 (end June 2026) | — | — | New |
Sources: regulator publications; M/HQ, “DMCC Foundation Regulations 2026”; Enterprise (24 Sept 2026); Ancova Associates, “DIFC Foundation 2026”. As of 5 October 2026; requirements and fees may change.
DMCC’s regime is brand new; its fee schedule and day-to-day practice are still being set. Unless you are in a hurry, wait for the guidance and then compare all four.
Who needs a foundation — and who just needs a will
- Several properties, operating companies or financial assets in the UAE
- Heirs living in different countries
- Planning a business succession or family governance
- Want assets insulated from forced-heirship rules at home
- Intend to hold assets across generations without selling
- UAE assets are one or two apartments and a bank account
- It is clear who should inherit
- You do not want annual running costs
- → See our inheritance & succession support for wills
What it costs (DIFC example)
| Registry fees | About US$350 in year one, then about US$650 a year |
|---|---|
| Registered office (mandatory) | Roughly US$6,000 a year |
| Drafting, council and guardian fees, annual compliance | Varies; all in, year one can run into five figures |
| Adding property | DLD fee (often the 0.125% gift rate, min AED 2,000) plus NOC costs |
How to set one up: six steps
- Define the purpose and list the assetsWhy (succession, business continuity, protection) and what goes in (property, shares, accounts)
- Choose the regimeDIFC, ADGM, RAK ICC or DMCC. If property is the main asset, check the DLD track record
- Draft the charter and by-lawsCouncil members, guardian or not, beneficiaries and conditions, reserved powers. A lawyer is effectively essential
- RegisterApply to the regulator, arrange the registered office or agent, submit KYC. DIFC’s service standard is a few working days
- Move the assets inProperty re-registered at DLD (NOC, fees), accounts opened in the foundation’s name, share registers updated
- Keep it compliant every yearAnnual confirmation and licence renewal, accounts, corporate-tax registration and, where applicable, the family-foundation confirmation
When property goes into a foundation, we handle the property side — selection, purchase and the DLD transfer — and our partner law firms design the foundation. Start with the first question: should this property sit in a foundation, or be held personally with a will?
FAQ
When can a DMCC foundation be set up?
The regulations were enacted on 23 September 2026, and DMCC says guidance and digital onboarding will launch “in the coming weeks”. As of this article (5 October 2026) the fee schedule and forms had not been published.
Can a non-resident set up a UAE foundation?
Yes. Non-resident individuals and companies can be founders; KYC documents are required.
Does a foundation remove home-country inheritance tax?
No. A UAE foundation does not change the inheritance, estate or gift tax rules of your country of residence or citizenship, and moving assets into one can itself have tax consequences there. Take cross-border tax advice first.
Foundation or a DIFC will — which do I need?
A will decides who receives what after death and is inexpensive. A foundation moves assets into a separate entity during your lifetime and manages them indefinitely, removing probate altogether, but with running costs. Few assets and clear heirs: a will. Multiple assets, a business or heirs in several countries: consider a foundation.
Can a foundation buy Dubai property directly?
DIFC and ADGM foundations can register freehold property in their own name under memoranda with DLD — both new purchases and transfers from personal ownership. For RAK ICC foundations, confirm registrability with DLD case by case; for DMCC foundations the procedure will need to be confirmed in the forthcoming guidance.
Who runs the foundation after the founder dies?
The council continues under the charter and by-laws, overseen by the guardian. The charter sets out whether the founder’s reserved powers pass to a named successor or lapse.
This article is general information based on public sources as of 5 October 2026 — DMCC’s announcements of 12 June and 23 September 2026, reporting by Gulf Daily News, Enterprise and Economy Middle East, and regime analyses by M/HQ and Ancova Associates. It is not legal or tax advice. Requirements, fees and tax treatment change, and outcomes depend on individual circumstances; please confirm with a UAE lawyer and a cross-border tax adviser before acting. SAMURAI REAL ESTATE is a real-estate brokerage; foundation and legal work is carried out by our partner law firms.