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Dubai Trusts

As early as the 7th to 9th century there have been concepts of charitable trusts already in existence in the Islamic world and perhaps this is where the medieval knights first got the idea and subsequently brought the idea back to Britain.  However, in a turn of events in 2005 Dubai introduced the Anglo-Saxon form of a family trust.  The Dubai Trust Law 2005 is only effective within the Dubai International Finance Centre which is free to create its own laws and regulatory framework entirely independently from the laws of mainland UAE, with its own courts that operate in English.  Although relatively new the Dubai Trust law is very modern and draws on legislation from several leading offshore jurisdictions for trusts.

One issue that Dubai has, is that its trusts strive to comply with the laws of Islam in order to be Sharia friendly, whilst trying to incorporate flexible asset protection which avoid the complexities of Sharia’s forced heirship provisions.  It is possible to have a Sharia compliant trust which offers asset protection from creditors, divorce and seizure by politically unstable regimes.  One important aspect of the trust is that it enables the entire family to benefit whilst protecting against fragmentation, which can often result from the forced heirship rules.

Dubai’s attractiveness for foreign investors along with its friendly tax practises and high level of confidentiality make it a consideration when looking to establish a trust.  However, if you are looking to set up a trust there are a variety of jurisdictions available each with their own positive and negative points, our advisors are more than happy to discuss your needs with you in order to suggest the best possible location for establishing your offshore trust.

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