One of the most reputable financial hubs in the UAE,
Abu Dhabi Global Market (ADGM), introduced Foundations as a reliable and adaptable alternative to more conventional vehicles like holding companies or trusts. Since then, they have become a preferred choice for high-net-worth families, business owners, and investors looking to safeguard assets while planning for the future.
ADGM Foundations are increasingly recognized as a solution for individuals and families seeking enhanced control and security in asset management amid global wealth complexities. A modern legal structure designed to protect wealth, support succession planning, and simplify governance.
What exactly is an ADGM Foundation?
An ADGM Foundation is a standalone legal entity that holds assets, manages wealth, and supports long-term planning objectives. It is governed by a council, has no shareholders, and may have beneficiaries who are eventually supposed to profit from its assets. The structure provides a combination of privacy, control, and continuity, qualities that businesses and families frequently find crucial when managing cross-border assets and multigenerational wealth.
Key uses of ADGM Foundations
Wealth Preservation and Succession Planning - Foundations provide a reliable mechanism for transferring wealth from one generation to the next. Founders can make sure their legacy stays true to their principles long after they retire by creating clear policies and governance documents.
Asset Protection - An ADGM Foundation protects wealth from future risks like disputes, creditor claims, or unanticipated business challenges by legally separating personal and foundation assets.
Holding and Consolidating Assets - Real estate, investments, intellectual property, and shares in operating companies can be consolidated within a single foundation, streamlining management and reporting.
Philanthropy and Charitable Activities - Foundations can be structured to support charitable causes, ensuring consistent and transparent contributions to social, cultural, or educational initiatives.
Benefits of setting up an ADGM Foundation
- Strong Legal and Regulatory Framework - ADGM operates under English common law, offering global investors familiarity and confidence.
- High Level of confidentiality - Council members and beneficiaries do not appear on public records, ensuring privacy for families and businesses.
- Perpetual Existence - Foundations are not tied to the lifespan of the founder, making them ideal for long-term planning.
- Flexible Governance - Founders can retain significant influence through reserved powers, while still delegating day-to-day control.
- Tax Efficiency - ADGM Foundations can be set up to maximize cross-border tax exposure and gain from a competitive tax environment.
Compliance Requirements - Although they are adaptable, Foundations must abide by ADGM's continuing rules, which include
- Maintaining accurate records and accounts
- Appointing a licensed registered agent
- Operating in line with anti-money laundering (AML) standards
- Ensuring council members meet fiduciary obligations
Adhering to these rules ensures transparency, credibility, and long-term stability.
ADGM Foundations offer a robust framework for individuals and businesses seeking structure and security from succession planning to asset protection. For guidance on setting up and managing a compliant, future-ready foundation, Alliott UAE
provides expert advisory and end-to-end support. The expert team at Alliott UAE combine decades of experience with deep technical expertise in IFRS and UAE-specific regulatory frameworks.
