UAE targets family offices with private trusts law

RegulationsThe UAE has introduced legal recognition for private trusts in a bid to support its growing wealth management market. The Ministry of Finance’s (MoF) Decree Law 19 allows capital owners to manage their wealth as a financial trust and to appoint qualified wealth managers. According to the ministry, the move will create greater investment protection, which will in turn make the make the country’s wealth management sector more attractive and more competitive. While the concept of an investment trust that recognises the separation of legal and beneficial ownership is well established in common law, it is a new feature in UAE’s legal framework. According to a MoF statement, the decree is designed to appeal to family offices especially. “The MoF issued the trust law to create legal tools that enable companies or people who own various capital and financial rights to hand over these wealth and rights as a financial trust to a trustee who is entrusted with managing and developing said funds,” said Younis Haji Al Khoori, undersecretary at the MoF. “This is done through a special document called a trust deed, and it is recorded electronically to reflect the assets – whether movable or property. After that, the existence of trust rights is indicated in the official records of those assets.” The latest law follows the October 2020 introduction of the Federal Decree Law on Financial Covenants, which was also designed to bolster the wealth management industry by aligning its regulatory framework with global practice. © 2021 funds global mena

Executive Interviews

INTERVIEW: ‘Financing is the blood of Iran’s economy’

Amid a fresh wave of American sanctions, Romil Patel spoke to Meysam Hamedi, director of financial markets and instruments at Iran’s Securities & Exchange Organization (SEO).

INTERVIEW: Totally mega

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...

INTERVIEW: Protecting the investment

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.

EXECUTIVE INTERVIEW: A natural interest in the topic

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.


Middle East Investor Roundtable 2020: Dimensions of diversification

Investors in the Middle East consider the tools that will be needed to navigate the Covid-19 crisis, the continued appetite for dividend and why it’s all about tech. Chaired by Romil Patel.

South Africa asset management roundtable: Global rebound on ice

Experts discuss the investment implications of the coronavirus pandemic, a delayed rebound in global growth and dealing with South Africa’s energy issues head on. Chaired by Romil Patel in Cape Town.

South African roundtable: Taking the bull by the horns

Our panel discusses Chinese investment in Africa, financial institutions’ contribution to economic sustainability and regulatory concerns. Chaired by Romil Patel in Cape Town.

ROUNDTABLE: Hooked to the global caravan

With the MENA region at a tipping point, our panellists talk about economic diversification, the impact of regulation and the delayed Saudi Aramco listing. Chaired by Romil Patel in Dubai.