Knightsbridge Group is a licensed legal, corporate, immigration and wealth planning advisory firm with offices in Dubai, London and Istanbul. We help families, entrepreneurs and family offices structure and protect their wealth, including establishing and administering foundations across the UAE’s leading jurisdictions. As an authorised registered agent for RAK ICC, we work with foundation regimes every day, and we have been following the DMCC framework closely since it was announced.

Dubai Multi Commodities Centre (DMCC) has formally established its Foundations Regulations. The new framework adds a dedicated wealth planning vehicle to one of the UAE’s largest free zones. It allows a foundation to be set up with initial assets from just USD 100, so the structure is open to a much wider range of families and business owners.

What is a DMCC Foundation?

A foundation is a legal entity created to hold and manage assets for defined purposes or beneficiaries. It sits somewhere between a company and a trust. Like a company, it has its own legal personality. Like a trust, it exists to benefit others according to rules set by the person who created it.

Under the DMCC regulations, a foundation is legally separate from its founder, its councillors (who manage it), its guardian (who oversees it) and its beneficiaries. This separation is what makes foundations useful for succession planning. The assets belong to the foundation itself, not to any individual, so ownership does not need to pass through probate when a family member dies.

Key features of the framework

• Low entry point. Foundations can be established with initial assets from USD 100.
• Founder-defined rules. The founder sets the provisions covering beneficiaries, asset management, distributions, governance and decision-making.
• Retained powers. Certain powers can be kept by the founder or other designated people, including investment decisions, appointments and matters relating to beneficiaries.
• Designed for the long term. The framework is intended for long-term asset holding, inheritance and succession planning, wealth preservation and transfers between generations.
• Built on consultation. DMCC developed the regulations after market consultation and benchmarking against established foundation regimes internationally.

Part of a wider DMCC wealth platform

The foundation regime is the latest step in DMCC’s private wealth offering. The free zone introduced Special Purpose Vehicle and Holding Company licences in 2025. Its wider ecosystem includes the DMCC Wealth Hub and DMCC FinX.

DMCC Executive Chairman and CEO Ahmed bin Sulayem described the regulations as “an important step in the continued expansion of DMCC’s private wealth offering”. He said foundations would sit alongside the free zone’s SPV and HoldCo structures, creating a broader platform for structuring and preserving capital from Dubai.

In practice, a family could hold operating companies through a DMCC HoldCo, place specific assets in SPVs, and sit a foundation at the top of the structure to govern ownership and succession.

How DMCC Foundations compare with other UAE options

The UAE already has well-established foundation regimes in the DIFC, ADGM and RAK ICC. The DMCC framework adds choice rather than replacing them. The right jurisdiction depends on the family’s assets, where they live, and how much legal certainty they need.

• DIFC and ADGM operate under common law with their own courts. They are often preferred for larger or more complex family structures, cross-border assets, and cases where courts are expected to recognise the foundation internationally.
• RAK ICC is widely used for cost-effective holding and succession structures. It is especially suited to holding UAE real estate and international assets.
• DMCC will appeal to families and businesses already operating in DMCC, and to those who want their holding companies, SPVs and foundation within one free zone.

Points to check before establishing a DMCC Foundation

The framework is promising, but it is new. Families should confirm the following before committing assets:

1. Dispute resolution and applicable law. DMCC does not have its own courts, unlike DIFC and ADGM. Families should understand which courts would hear a dispute over the foundation, and how its rules would be interpreted.
2. Protection against forced heirship. For families with cross-border heirs, the key question is whether the regulations protect the foundation’s rules from challenge under foreign inheritance laws or UAE succession rules.
3. Total cost of ownership. The USD 100 minimum refers to initial assets, not running costs. Licensing, registered office, administration and annual compliance fees will apply.
4. UAE corporate tax treatment. Foundations can apply to be treated as tax transparent Qualifying Family Foundations under UAE Corporate Tax law, subject to conditions. This needs to be planned from the outset.
5. Asset transfers. Moving assets into the foundation, particularly Dubai real estate or shares in operating companies, may carry registration, transfer and consent requirements.

DMCC has said that guidance on establishing and administering a foundation, together with a streamlined digital onboarding process, will be released in the coming weeks. Several of these points should become clearer once that guidance is published.

Who should consider a DMCC Foundation?

The framework is aimed at high-net-worth individuals, family offices, entrepreneurs and international private wealth clients who want to structure and manage their assets from Dubai. It is likely to be most relevant for:

• Business owners with existing DMCC companies who want to plan succession
• Families seeking a Dubai-based vehicle for holding investments across generations
• Entrepreneurs who want to separate personal wealth from operating businesses
• Family offices consolidating holding structures within a single free zone

Plan your foundation with Knightsbridge Group

A foundation is only as effective as its charter, its governance and the jurisdiction behind it. Knightsbridge Group advises on DMCC, DIFC, ADGM and RAK ICC foundations. We help clients compare the options, draft foundation charters and by-laws, transfer assets, and provide ongoing administration. Contact our team in Dubai to arrange a confidential consultation on structuring your family’s wealth.