DMCC Introduces New Foundations Regulations

Dubai Multi Commodities Centre (DMCC) has formally established new Foundations Regulations, introducing a legal framework for the establishment of Foundations within DMCC.

The framework is intended for individuals, families, family offices, entrepreneurs, business owners, and private wealth clients seeking a structured approach to long-term asset ownership, succession planning, wealth preservation, and governance.

A DMCC Foundation is a separate legal entity that can hold and manage assets in accordance with its stated objectives and governance arrangements.

Key features of the new framework include:

• Separate legal personality: A DMCC Foundation is legally separate from its Founder, Council Members, Guardian, and Beneficiaries.
• Ownership and management of assets: A Foundation may hold, own, and manage assets in accordance with its stated objectives and governance framework.
• Succession and continuity: The structure can support succession planning, wealth preservation, and continuity across generations.
• Flexible governance: Founders may establish tailored provisions governing decision-making, asset management, beneficiaries, and distributions.
• Reserved powers: Certain powers may be retained by the Founder or another designated person, including powers relating to investments, appointments, and beneficiaries.
• Continued Founder involvement: The framework allows Founders to combine long-term asset planning with an appropriate level of ongoing involvement.

Complementing DMCC’s existing SPV and Holding Company offerings, the Foundation regime provides a further option for long-term asset ownership, governance, and succession planning.

While the DMCC Foundations Regulations have now been introduced, DMCC has indicated that supporting guidance and its digital onboarding process will be introduced in the coming weeks.

Sunita Singh-Dalal, Partner and Head of Private Wealth & Family Offices, commented:

“The introduction of the DMCC Foundations Regulations is a positive step that may encourage business owners to take steps to protect and preserve the ownership of their family businesses in a tax-efficient and sustainable manner.

This is a welcomed development that is expected to have a positive impact on the economy.”

Our Private Wealth & Family Offices team is available to advise businesses and families on how they may benefit from the solutions available under the new framework.