DMCC Foundations Framework for Dubai Wealth Planning

The DMCC Foundations framework could become an important addition to Dubai’s private wealth structuring options for family offices, entrepreneurs and investors. Gulf News reported on 12 June 2026 that DMCC is preparing a proposed Foundations framework in its free zone, currently in the final stages of regulatory review. If introduced, the framework is expected to support succession planning and long-term wealth governance.

What the DMCC Foundations framework could add

The practical appeal is clear. Many family wealth structures need safeguards that are difficult to manage through personal ownership alone. These usually include:

• clear ownership rules
• decision-making continuity
• asset protection

A foundation can help separate the holding and governance of assets from day-to-day family decisions. This can be useful where wealth must pass across generations, where family members live in different jurisdictions or where the assets include operating businesses, investment portfolios or real estate.

The proposed DMCC Foundations framework appears to sit within a broader trend in the UAE, where private clients and family offices are paying closer attention to succession, governance and tax visibility. The key point is that a structure should not only hold assets. It should also explain who controls decisions, how powers are exercised and how the next generation can benefit without unnecessary uncertainty.

A practical governance layer

Families should avoid choosing a structure based only on its label. A foundation, holding company, trust or special purpose vehicle can each serve different functions. The starting point should be the family’s commercial and personal objective.

For that reason, the proposed framework may be useful where a family needs governance documents and succession rules to work alongside an asset holding strategy. It may also support investors who want a Dubai-based structure within a recognised free zone environment. Where clients are assessing whether a foundation, holding company or SPV best fits their objectives, WellTax can support the initial UAE tax and accounting review before a structure is chosen.

At this stage, the proposal should be read as an early planning signal, not as a final rulebook. Families should wait for the detailed DMCC framework before making structural changes.

How family offices and investors should assess the proposal

For families with UAE assets or cross-border holdings, the proposed framework may be relevant where ownership continuity is harder than the asset purchase itself. Investors should review asset ownership, control rights and tax visibility before selecting a structure.

Planning area	Why it matters	Practical question
Succession	Helps reduce uncertainty when wealth passes between generations	Who should benefit, and when?
Governance	Clarifies who can make, approve or block decisions	Who should control key powers?
Asset protection	Can support longer-term preservation of family wealth	Which assets need separation or ring-fencing?
Tax and accounting	Determines reporting, documentation and compliance requirements	What records and filings may be needed?

Main planning questions

The review should be practical and evidence based. Before adopting any structure, families and investors should consider:

1. Objective: confirm whether the priority is succession, investment holding, asset protection, governance or family administration.
2. Assets: map what will be held, where those assets are located and whether any transfer steps, registrations or lender approvals may arise.
3. Control: decide who can appoint, remove, approve or veto decisions under the structure.
4. Compliance: assess accounting, Corporate Tax, VAT, transfer pricing and reporting requirements.

Investors considering a DMCC entity more broadly may also find our DMCC Freezone Explained guide useful, particularly where the structure may sit alongside an operating company, holding company or investment vehicle.

For clients already considering a DMCC entity, WellTax can support the comparison between an operating company, holding company and family wealth structure from a UAE tax and reporting perspective.

UAE tax points linked to the DMCC Foundations framework

The tax point is not simply whether a foundation exists. The treatment of any private wealth structure depends on the final legal framework, the assets held, the persons involved and the way the structure is managed. For family offices, this means Corporate Tax analysis, record keeping and beneficiary review should be considered from the beginning.

The proposed DMCC Foundations framework may provide a new legal structuring route, but it should not be assessed in isolation. A family may also need to consider whether the structure interacts with an operating business, a holding company, a real estate portfolio or cross-border investments. Our article on family office Dubai, family foundations and UAE Corporate Tax explains how these areas can connect in practice.

Related-party payments and documentation

Related-party and connected-person matters may also become relevant where several payments occur within a family group, for example:

• management fees
• director remuneration
• service charges

These payments should be reviewed before the structure is implemented. The analysis may need to cover who provides the service, whether the amount is commercially supportable and how the arrangement is recorded. This is especially relevant where the family structure sits alongside operating companies or investment vehicles.

For UAE matters, WellTax can support clients with Corporate Tax, accounting and connected-person analysis before a family office, foundation, holding company or investment vehicle is implemented or amended. The key is to align structure, governance and tax compliance before assets are moved, not after issues have already appeared.

Written by Lorenzo Tosonotti, CIMA Dip Ma, Partner & FTA Tax Agent, WellTax.