Why UAE families are turning to foundations to safeguard their assets

New research from DIFC Innovation Hub, Julius Baer, and Euroclear shows that the Middle East is approaching a wealth transfer exceeding $1 trillion by 2030. While this regional shift is significant, the growth in the UAE is even more accelerated, with domestic financial wealth on course to exceed $1 trillion in 2026. Despite this, a significant gap remains in how individuals and families prepare for the future of their personal wealth. The “Navigating the Future of Inheritance” report found that 24 per cent of asset holders lack a formal plan for their personal and investment assets. While 84 per cent believe their commercial businesses are well-structured for transition, private wealth remains vulnerable to legal and administrative delays.

Addressing the planning gap

Reluctance to formalize inheritance often stems from perceived complexity; 53 per cent of families find organising and allocating assets too time-consuming. Additionally, 73 per cent of asset holders are hesitant to discuss legacy scenarios, even with close advisors.

Momentum, a leading UAE-based corporate services provider whose leadership team has established over a 100 Foundations, notes that this hesitation leads to hurdles. Without a clear structure, estates often face probate processes lasting up to 12 months on average, restricting family access to assets during critical periods.

“We hear the same concerns time and again. Families know they should be planning, but the conversation feels too uncomfortable to start. The hesitation is understandable — nobody wants to plan for something they hope never happens. But we have spent years working through these situations, and the right structure makes all the difference. That depth of understanding is what we bring to every family,” said Sharjeel Akhtar, Managing Partner of Momentum.

Foundations as a solution for legacy preservation

While digital tools for wealth transfer are emerging, they are not yet widely accessible. For families requiring immediate action, Foundations provide a proven, practical solution.

Unlike a simple will, a Foundation is a separate legal entity that holds assets in its own name. This allows for a seamless transition of wealth because assets do not enter the local court probate system upon the passing of the founder. For those with international interests, Foundations also consolidate real estate and global investment portfolios into a single, governed structure.

RAK International Corporate Centre (RAK ICC) is one of the UAE's leading structuring jurisdictions and a primary registration authority for Foundations in the region. Its framework provides a clear, accessible legal structure for individuals and families across the UAE. “Anyone building assets in the UAE, whether it is real estate, a company, shares, or growing wealth, should be thinking about a Foundation. Ask yourself: do I have something worth protecting? If the answer is yes, the next step is getting the right protections in place. Experienced players like Momentum help to guide you through this process,” said Sandra Marie Louw, CEO of RAK ICC.

Beyond the ease of transfer, a Foundation that is correctly structured and managed may provide certain efficiencies under the UAE Corporate Tax regime, particularly for specific holding and investment activities.

Securing long-term continuity

With $123 billion in regional wealth set to be held in probate for over six months, and another $49 billion at risk of going unclaimed by 2030, the need for early planning is clear. By using Foundations, families can ensure their wealth is preserved and managed exactly according to their wishes.