Feb 06, 2020
Investment vehicles for the UAE
The UAE (United Arab Emirates) is not only an attractive holiday location but also a very attractive investment location with many opportunities, ranging from property to businesses.
With the laws as they stand in the UAE you require a local presence or in other words a local investment vehicle, one of the best ways to do this is to create an offshore investment fund, these are generally legal entities within themselves that are managed by a team of trustees.
In this article we will have a look at 2 types of investment modules
The first type we are going to look at is the offshore company, these are companies that are setup for the sole purpose of investment and ownership of entities within the UAE, these are run just like any other company and are formed in a similar way, the main difference is that when generating the new company you will require a local presence within the company.
There are a few different companies that offer you this ability, of Dubai company formation, one of the most respected and well used is Global Wealth Services, with many years of experience working with foreign nationals and guiding them through what can sometimes be a difficult to understand process
The second type we are going to look at is the offshore foundation in Dubai, much like the first type above these are setup in the same sort of way, the main difference is that these types of investment vehicle are declared as legal entities that have a board of trustees.
The process for setting these up are very similar, again you have a lot of companies that can help you go down this route of investment.
This type of investment opportunity was created and introduced in 2019 and is aimed at protecting your company and its assets from frivolous claims from foreign nationals and entities.
“Holding assets personally may leave you at a severe disadvantage. In a world filled with lawsuits, creditors, legal battles, and malpractice suits protecting your assets in a safe, tax neutral and political stable jurisdiction is more important than ever.” – GWS
- Privacy (founder’s wishes are not publicly registered)
- No foreign judgment against the foundation and its founders will be acknowledged
- Heirship Right conferred by Foreign Law in relation to the property of a living person shall not be recognized by UAE courts
- Perpetual concept for long-term planning
- Succession planning for personal estates, business ownership and assets
- Estate planning to avoid forced heirship
- Reducing personal net worth to minimize legal damages (compensation) risks
- Eliminating property transfer-related taxes
- Extending horizon for investment opportunities by acquiring assets through a ‘person’ other than yourself
- Accumulating portfolio income (annuities, interest, royalties, dividends, returns)
- Recognized in all common and civil law jurisdictions
- Inheritance tax planning
- Separation of voting and economic benefits
- Employee share option schemes
- Pension funds
- Wealth Protection
No matter which vehicle type you choose you can rest assured that when using a company such as GWS will work with you and for you in the best possible way, so why not stop putting off investing in the UAE when it is now just so easy to do