UAE Foundations: JAFZA accepting DIFC Foundations as Direct Shareholder

What’s new
After the Dubai International Financial Centre (DIFC) and Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA) has become the latest key Dubai jurisdiction to formally allow DIFC Foundations as incorporators and/or direct holders of shares in registered entities.

 

Why does it matter
The acceptance of Foundations as direct shareholders of JAFZA entities is a game-changer for the structuring of Real Estate assets in the Emirate. Aside from being one of the largest and most reputable free zones in the region, JAFZA – via offshore companies (JAFZA IBCs) – has long been considered the go-to option for the registration of Dubai real estate
(see fact sheet – UAE Private Wealth Series IV: Structuring Dubai Real Estate). The confirmed compatibility of JAFZA structures and DIFC Foundations addresses pressing legacy planning and asset protection concerns of many investors/entrepreneurs that could otherwise only be addressed through a full restructuring / real estate conveyance.Foundations are self-owned structures with a personality distinct from their founder’s. Compatible with all UAE asset classes (real estate, shares, portfolios), they enable entrepreneurs and their families to consolidate and keep control over income-generating assets and investments, while protecting them from potential threats – i.e. creditors attacks, probate. They are equally effective for Muslims and non-Muslims.

 

JAFZA’s practice confirmation is timely, as it coincides with the DIFC introducing a number of economic boosting measures in response to the COVID-19 pandemic (View the UAE Stimulus Tracker here), incl. a waiver of registration fees for foundations and prescribed scope companies.

Throughout the years you focused on your business and assets growth. But have you thought about the optimization of your high-value assets’ and operating business’ protection? Have you accounted for third party attacks? Do you plan to leave your business to your family?

There was never a better time to restructure UAE assets! And M/HQ Team is here to help.

So get in touch with team M/HQ for a comprehensive approach on your asset protection/legacy planning strategy.

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