UAE Trends and Developments Contributed by: Yann Mrazek, Kath Zagatti, Hermione Harrison and Ksenia Shvalova, M/HQ Corporate Services Ltd
The UAE combines regulatory clarity, global market connectivity and long-term residency stability. In prac- tice, many family office structures operate under com- mercial licensing regimes where activities are confined to managing proprietary family capital. Where activi- ties extend beyond proprietary management – par- ticularly where investment services are provided to third parties – regulated financial services frameworks may become relevant. This distinction between pro- prietary capital management and regulated third-party services enables families to structure their activities proportionately, aligning regulatory status with opera- tional complexity and counterparty expectations. From a structuring perspective, families frequently adopt a layered model comprising a foundation or holding vehicle at ownership level, a family office entity responsible for investment oversight and gov- ernance implementation, and underlying investment platforms or special purpose vehicles through which capital is deployed. The separation of ownership, management and asset-holding functions enhances transparency, risk segregation and operational clarity, while reinforcing the distinction between governance and day-to-day investment execution. Increased scrutiny of lightly supervised family office regimes in other established financial centres has led families to prioritise regulatory certainty and reputa- tional stability. The availability of recognised supervi- sory frameworks and established judicial infrastruc- ture is particularly relevant for banking relationships, cross-border counterparties and institutional co- investment arrangements. The migration of family offices should therefore be understood not merely as relocation, but as part of the maturation of private wealth structures, reflecting a shift from informal, personality-driven capital manage- ment toward structured and institutionally recognised governance models. Corporate tax and structural alignment The introduction of Federal Decree Law No 47 of 2022 on the Taxation of Corporations and Businesses mate- rially reshaped the structural analysis required in UAE succession and legacy planning in the UAE. Although the UAE continues not to impose inheritance or estate
taxes, corporate tax applies to entities carrying on business activities or generating income that falls within the scope of the law. Succession planning is therefore no longer concerned solely with governance continuity and asset protec- tion. Families must also consider tax status, sub- stance requirements and reporting obligations when establishing or maintaining holding vehicles, founda- tions and family offices. Depending on the nature and scale of activities, exemptions or preferential treat- ments may be available, subject to statutory condi- tions and qualification criteria. The introduction of the corporate tax regime has rein- forced the need for structural clarity, documented decision-making and a clearer distinction between governance functions and operational activities. Enti- ties must ensure that their constitutional purpose, actual activities and reported position are aligned. The regime reflects the UAE’s broader alignment with international standards while the continued absence of inheritance or estate taxation underscores a policy environment supportive of long-term capital preserva- Digital assets now form a material component of many private portfolios, with cryptocurrency holdings and tokenised investments requiring explicit succession planning. Unlike traditional assets, digital holdings depend on secure access credentials and clearly defined fiduciary authority. Without appropriate gov- ernance and access protocols, they may become per- manently inaccessible. tion and orderly generational transition. Digital assets and succession planning Structured succession strategies increasingly incorpo- rate digital asset inventories, custodial arrangements and governance provisions addressing access, recov- ery and oversight. The UAE’s regulatory engagement with virtual assets and related technologies reflects responsiveness to evolving asset classes within the broader private wealth framework, reinforcing its posi- tioning as a jurisdiction attentive to emerging structur- ing requirements.
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