Shari’ah-compliant family foundations in the UAE

The rapid growth of private wealth in the Gulf Cooperation Council (GCC), together with increasing cross-border asset ownership and the expansion of family offices, has transformed the way Muslim families approach long-term wealth preservation and succession planning.

In response, the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) have established modern foundation regimes that provide founders with sophisticated governance structures capable of holding family businesses, investment portfolios, real estate and other strategic assets across generations.

In partnership with Ebdaa Islamic Finance Consultancy, Ocorian has prepared this report to examine the practical Shari’ah considerations involved in establishing and administering family foundations in the DIFC and ADGM. It focuses on wealth structuring, succession planning and governance, offering advisers, family offices and Islamic finance practitioners a framework for aligning modern foundation law with established principles of Islamic jurisprudence.

Key findings in this report:

• DIFC and ADGM foundations as Shari’ah wealth structuring vehicles
• Funding the foundation: Hibah (gift), ownership and effective transfer
• Governance and constitutional drafting: Embedding Shari’ah into the foundation
• Reserved powers and founder control
• Drafting the Charter and By-Laws
• Shari’ah governance framework
• Practical structuring considerations for family offices and advisers
• Key takeaways on aligning modern wealth structures with Shari’ah principles
• Shari’ah structuring checklist for DIFC and ADGM family foundations

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