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A Comprehensive Guide to Asset Protection


Asset Protection in UAE

As the UAE continues to become a hotspot of wealth and asset management in the international finance landscape, it is essential for expatriates and non-Muslims with assets in the region to consider their asset planning options. It is crucial to Protect your assets in the UAE in order to preserve the legacy in the UAE. 

If you have invested in a property or a business in the United Arab Emirates as a residence or an overseas investor,  you are required to safeguard these assets for the future. If you do not know anything about how you can protect these assets in the United Arab Emirates, then you are required to invest some minutes in this article.

The article is going to aims to provide you with a comprehensive guide that will cover every crucial aspect of Succession And Asset Protection In The UAE. Furthermore, we will provide you with several methods that you may adopt in order to achieve Asset Protection in UAE


Top options to protect your asset in the UAE

Whether it is a business investment or property investment, protecting your assets is very crucial in the United Arab Emirates. However, most people do not know anything about how they can perform Succession And Asset Protection In The UAE. Here is the list of top methods or options that you may adopt to protect your assets in the UAE:

Asset Protection

1. Make a DIFC will.

The DIFC court will service was developed in order to provide the non-muslim community who own assets in the UAE with charity, and indeed, they are required to avoid applying Sharia law along with transferring their laws following their own intention after death. This lets non-Muslim expatriates to develop will under regulations resembling those of England and Wales and offers testamentary freedom for the Sharia law system of compelled heirship.

If you are older than 21 and non-muslim, you are allowed to register your DIFC Will in the United Arab Emirates. In order to draft your will,  you will need a draftsman who is registered with DIFC. You are allowed to transfer your asset as you notice fit by registering a DIFC Will, and the method is additional instanter and more efficient than it is for non-DIFC Wills.


2. Offshore company formation

An offshore company serves as a legal corporation developed outside the jurisdiction of the home country. Still, it intends to engage in numerous business operations whose outcomes are overseen by the controlling company. 

You can incorporate an offshore organization in a nation with robust tax benefits, like the UAE, whether you are an investor looking for international investment opportunities, a startup looking to increase revenue while maximizing tax obligation, or a business owner looking to preserve your asset. 

While adhering to the laws of the jurisdiction where the offshore company is developed and the law of your home nation, setting up an offshore company entails developing your own business outside of your home country. 

There are numerous jurisdictions have enacted rules that benefit offshore companies.  They come with their own set of company rules and their tax system due to the fact that these companies are self-governed. These countries are generally free to select their tax policies, including corporate tax rates. They are allowed to freely incorporate, operate, and own a business for foreign nationals. 

The most essential consideration is to choose the most offshore jurisdiction on the basis of your business operation, the convenience of access to offshore activities, banking requirements, and the market. 


3. Trust and company transfer

The trust serves as a powerful tool that can help you to Protect your assets in the UAE. The tool allows you to transfer legal ownership of your asset into a protected entity while retaining beneficial ownership. The best thing about this tool is that it enables effective asset planning, protects assets from potential creditors, and boosts smooth wealth transfer to future generations.

It is essential to know that there is no option for the mainland in Dubai. However, you are allowed to explore alternative structuring options through mechanisms, like DIFC and offshore trust. Asset and property transfer into a holding company or trust will ensure sufficient security, facilitating privacy, control, and administration, thereby protecting assets for future generations. 


4. Create a foundation 

The UAE, which is a civil law jurisdiction, allows you to establish a foundation. The foundation serves as a legal entity that holds an asset on behalf of the beneficiaries. The purposes, assets, and organization are governed by Foundation charters and bylaws. 

In addition to being registered as a legal entity and possessing its legal personality, these foundations come with similar trust in that they have the potential to separate legal and beneficial interests. It is essential to remember that foundations do not have shareholders. However, founders can continue to exercise their control over their organization. Hence, creating a foundation serves as a robust method to  Protect your assets in the UAE.


5. ADJD Wills 

Abu Dhabi Judicial Department (“ADJD”) Wills Registry operates under the Emirate of Abu Dhabi laws. The will is a dedicated registry responsible for registration of Wills for Muslim and Non-Muslim expats which sits under the purview of the on-shore Arabic language courts in the Emirate of Abu Dhabi.

The ADJD Wills Registry operates under the jurisdiction of civil law. It is essential to note that if you are a Muslim or Non-Muslim from any country in the world, then you are also eligible for this will. There is one more thing that you must know is that the will only applies to foreigners. The citizens of the UAE or Emiratis are not eligible for this will.

An ADJD Will ensure that UAE Shariah law will not be applied to the estate of a non-Muslim. Therefore, ADJD Will is an ideal method in order to achieve Succession And Asset Protection In The UAE.


How Flying Colour can help you?

Flying Colour has a team of experts who understand the importance of protecting your assets in the UAE. We can provide you with valuable assistance that can help you to protect your assets. Furthermore, we can also guide you on the best and easiest method to protect your investment.  

To learn more about Protecting your assets in the UAE, book a free consultation with one of Flyingcolour team advisors, simply call +971 50 5585305 or send WhatsApp messages to +971 4 4542366. you can also drop an email to info (at) flyingcolour (dot) com.

*Please note that this article was published on 25/01/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.

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