In Brief

1. The July 2025 RAK ICC Foundation amendments introduced firewall provisions, a three-year limitation on transfer challenges, and duress protections relevant to family wealth structures.

2. RAK ICC's private registry means UBO data is held by the regulator but not publicly accessible — a distinction from jurisdictions moving toward open registries.

3. A layered structure using a RAK ICC Foundation, holding company, and RAKEZ subsidiary can replicate much of a DIFC-based family office's functionality at lower annual cost.

family office · RAK ICC · DIFC · wealth structuring · foundation · multi-generational planning

Why some families look beyond DIFC and ADGM

The Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) remain strong jurisdictions for family offices, particularly for families with assets well above USD 100 million and a need for the prestige and judicial infrastructure those centres offer. For families in the USD 10–100 million range, the annual cost of maintaining a regulated presence in a financial free zone can be disproportionate to the benefits. RAK ICC has gained attention because the July 2025 amendments to its Foundations Regulations introduced protections directly relevant to wealth preservation. These provisions, combined with lower annual fees and a private registry model, make RAK ICC a credible option for families whose priorities are asset protection, succession planning, and privacy rather than regulated financial services activity.

The 2025 Foundation amendments

The amendments effective 31 July 2025 addressed three areas. The firewall provisions under Regulations 7(1) and 7(5) state that a RAK ICC Foundation is governed exclusively by the laws of Ras Al Khaimah. If a court in another jurisdiction issues a judgment — a divorce settlement, forced heirship claim, or creditor seizure — that judgment won't be recognised or enforced by RAK courts if it conflicts with the RAK ICC Regulations. Regulation 68A introduced a three-year statute of limitations. Once 36 months pass since the establishment of a Foundation or a transfer of assets into it, challenges to that transfer are time-barred. Regulation 25A addresses duress: if a Council Member or Guardian is coerced into acting against the Foundation's governing documents, the law requires that instruction to be disregarded and the coerced individual is automatically disqualified from acting.

Privacy under the UBO framework

Under Cabinet Decision No. 109 of 2023, the UAE maintains a centralised UBO register. All entities must disclose their beneficial ownership to the relevant authorities. But RAK ICC operates a private registry. UBO data is held by the registrar and shared with regulators and law enforcement as required — it is not accessible to the public, competitors, or through a general registry search.

A three-tier family structure

A common approach uses three layers. At the top, a RAK ICC Foundation holds the family's governance charter and succession rules. Below that, a holding company owns specific asset classes — property, investment portfolios, or equity stakes. At the operational level, a RAKEZ subsidiary provides substance: a physical office, trade license, and residency visas. The RAKEZ subsidiary handles day-to-day banking. Family members can be sponsored for residency visas, including 10-year Golden Visas where property-backing requirements are met, or two-year investor and manager visas.

Tax treatment under Article 17

Under Article 17 of the CT Law, a RAK ICC Foundation can apply to the FTA for tax-transparent treatment — meaning the Foundation isn't a taxable person. Income is 'looked through' to the beneficiaries. Since the UAE doesn't tax individuals on personal investment income or capital gains, the effective rate on passive income flowing to individual beneficiaries can remain at 0%, provided the structure is correctly maintained and the FTA has approved the election.

Tax transparency requires an FTA application Article 17 treatment is not automatic. The Foundation must meet the criteria to be treated as an unincorporated partnership for tax purposes. Professional tax advice should be obtained before assuming this treatment applies.

Segregated Portfolio Companies for diverse assets

For families holding assets with different risk profiles, RAK ICC offers the Segregated Portfolio Company (SPC). This is a single entity where assets and liabilities are divided into separate 'cells'. If one cell incurs losses or faces claims, creditors can't access assets in another, even though they sit within the same corporate structure. The SPC allows management of diverse investments under one licence while maintaining internal separation between risk categories.

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This article is for general informational purposes only and does not constitute legal, tax, or financial advice. Readers should seek professional advice tailored to their specific circumstances. Information is current as of March 2026 and may be subject to change.