New laws issued to add to DIFC platforms

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as the Ruler of Dubai, issued two new laws that aim to improve and expand the Dubai International Financial Centre’s (DIFC) private wealth management and succession planning platforms.

Both the Trust Law and Foundations Law are in line with the previous recommendations of the DIFC’s Wealth Management Working Group and are the product of global benchmarking and extensive consultation with industry professionals and family business networks both regionally and globally. The new laws have been welcomed by academics and practitioners for setting a new global standard. In addition to serving families in their wealth and succession planning, the laws will be equally adept at serving the financial services community in structured financing transactions in creating insolvency remote and orphan structures.

Eisa Kazim, Governor of Dubai International Financial Centre, said: “Providing a world-class legal and regulatory environment has always been a key priority for us at DIFC. We constantly explore new ways to shape the financial landscape in the region. Insights from our clients, industry and Wealth Management Working Group have been reflected in the laws which have been enacted to ensure the DIFC community, which is the largest in the Measa region, can continue to explore new ways to grow.” The new Trust Law No 4 of 2018 is a self-contained enhancement of the DIFC Trust Law in line with international best practice. The law provides an appropriate environment for the operation of trusts in DIFC, taking into account the requirements of local families, particularly in succession planning.