New laws aim to improve Dubai International Financial Centre's private wealth management and succession planning platforms
Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum has enacted two new laws that aim to improve and expand Dubai International Financial Centre's (DIFC) private wealth management and succession planning platforms.
Both the Trust Law and Foundations Law are in line with the previous recommendations of the DIFC’s Wealth Management Working Group and follow extensive consultation with industry professionals and family business networks both regionally and globally.
In addition to serving families in their wealth and succession planning, the laws will be serve the financial services community in structured financing transactions in creating insolvency remote and orphan structures.
Essa Kazim, governor of Dubai International Financial Centre, said: “Providing a world-class legal and regulatory environment has always been a key priority for us at DIFC. We constantly explore new ways to shape the financial landscape in the region.
"Insights from our clients, industry and Wealth Management Working Group have been reflected in the laws which have been enacted to ensure the DIFC community, which is the largest in the MEASA region, can continue to explore new ways to grow.”
The new Trust Law No. 4 of 2018 provides an appropriate environment for the operation of trusts in DIFC, taking into account the requirements of local families, particularly in the context of succession planning.
The new Foundations Law No.3 of 2018 introduces a completely new regime to promote better creditor protection, succession planning and lifetime private wealth planning solutions for family businesses. It also provides greater certainty and flexibility for private wealth management and charitable institutions.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.