Dubai: UAE’s Ministry of Finance on Wednesday said that a Decree-Law regarding Trusts was an important addition to the advanced legislative structure of the UAE.
The law supports the wealth management sector and provides new mechanisms to manage wealth and funds. It also encourages the allocation of charitable Trusts.
“The Ministry of Finance issued the Trust Law to create legal tools that enable companies or people who own various capital and financial rights to hand over these wealth and rights as a financial trust to a Trustee who is entrusted with managing and developing said funds,” said Younis Al Khoori, Undersecretary of Ministry of Finance.
“This is done through a special document called a Trust Deed, and it is recorded electronically to reflect the assets – whether movable or property. After that, the existence of Trust rights is indicated in the official records of those assets,” he added.
Al Khoori noted that the Decree-Law will raise the efficiency of financial legislation and policies in the country, and will offer a competitive environment that keeps pace with the latest economies that are based on both business and technology.
He also noted that while all members of society will benefit from the law, family-owned companies in particular will be able to plan on a long-term basis the continuity of their companies’ assets.
The Decree-Law provides an integrated system that enables them to manage their wealth as trusts by qualified and experienced persons or institutions, called the ‘Trustee.’
The law also establishes a section for ‘Private Trusts,’ which are set up for performing different forms of securities trading that are accepted in the financial markets. These include the acquisition and trading of securities and the investment therein. Private Trusts are also trusts set up to establish pension funds or guaranteeing availability of benefits for the Beneficiaries in return for regular contributions paid to the Private Trust.
“The Ministry of Finance continues to work and cooperate with all relevant authorities to devise appropriate financial and monetary policies,” said Al Khoori.