In brief
- Individuals with private wealth between $5 million and $30 million often lack a dedicated institutional framework, sitting between retail banking and full Single Family Office structures in the DIFC or ADGM.
- The RAK International Corporate Centre (RAK ICC) Foundation provides a common-law-based holding vehicle that delivers asset protection and succession planning at roughly 20% of the cost of a regulated financial centre structure.
- The July 2025 RAK ICC Foundation Amendments introduced statutory firewall protections, a duress clause, and a three-year limitation period for challenges to asset transfers. A growing number of private clients sit in a structural gap. Those with assets above $100 million typically set up a Single Family Office (SFO) within the Dubai International Financial Centre (DIFC) or the Abu Dhabi Global Market (ADGM); those below $5 million rely on retail private banking. But clients in the $5 million to $30 million range need the same protections for asset preservation and succession planning as ultra-high-net-worth individuals, without the regulatory cost and operational overhead of a fully regulated financial hub. The RAK ICC Foundation fills that gap.
What the RAK ICC Foundation structure looks like in practice The RAK ICC Foundation is a separate legal entity (a juridical person) distinct from its founder and beneficiaries. Unlike a trust, which creates a fiduciary relationship, a Foundation can enter into contracts, hold assets, and be party to legal proceedings in its own name. For private wealth arrangements, it acts as the ultimate parent entity in a multi-tiered holding structure. The governance layer sits at the top. The Foundation is governed by a Charter and By-Laws that replace the traditional will. A Council manages the Foundation; this Council can include the client and their professional advisors, which ensures continuity of management across generations. Below the Foundation sits an investment layer. A RAK ICC Business Company (BC) is established as a subsidiary, and this entity holds bankable assets: global brokerage accounts, private equity interests, and other financial instruments. For clients with property portfolios, individual special purpose vehicles (SPVs) can be placed under the BC. This isolates real estate liabilities from the broader family estate.
What this means for wealth managers and legal advisors
For law firms and wealth managers, the RAK ICC Foundation allows the delivery of institutional-grade wealth structuring without referring mid-tier clients to competitors who offer regulated SFO solutions. The white-label model is straightforward: the Registered Agent handles back-office incorporation and compliance, while the primary advisor retains the strategic client relationship. Advisors can take formal roles within the structure. A wealth manager or lawyer may be appointed to the Foundation Council, providing a governance and investment oversight function. The Foundation can also appoint an Enforcer to ensure the Council adheres to the Charter and By-Laws; this adds a layer of fiduciary-style accountability that clients familiar with trust structures will recognise. Succession planning is built into the architecture. The By-Laws can include precise trigger events (such as incapacity or death of the founder) that activate an immediate transition of control to the next generation. This avoids the delays and public exposure of probate proceedings. The next step for mid-tier wealth structuring
This article is for general informational purposes only and does not constitute legal advice. Readers should seek professional advice tailored to their specific circumstances. Information is current as of the publication date and may be subject to change. Different rules may apply in different jurisdictions within the UAE.
