ADGM launches structure aimed at ultra-wealthy

The Abu Dhabi Global Market (ADGM) has established a regulatory structure that is expected to help ultra-wealthy families establish trust-like investment vehicles.

ADGM, a financial free zone in Abu Dhabi, says the structures, called foundations, are like trusts but have their own legal identity, making them similar to companies but without shareholders.

In a statement, ADGM says investors can use the structures for a variety of purposes, “including family succession planning, tax planning, asset protection, wealth management and corporate structuring, without relying on foreign regimes and practices”.

“The introduction of a foundations regime in Abu Dhabi represents a first,” said Filippo Noseda, partner at law firm Mishcon De Reya. “It is expected that the new ADGM Foundation Regulations will appeal to international clients with interests in the region, as well as local families who wish to find a suitable vehicle to deal with family succession and family governance with the help of local practitioners.”

With initiatives such as the foundations regime, ADGM is hoping to convince private banks and wealth managers to use Abu Dhabi as a domicile rather than rely on investment vehicles established elsewhere.

©2017 funds global mena

Related Articles