DMCC Enters the Foundations Arena — But Questions Remain

The Dubai Multi Commodities Centre (DMCC) formally established its new Foundations Regulations, introducing a dedicated private wealth and structuring vehicle designed to attract high-net-worth individuals (HNIs), ultra-high-net-worth individuals (UHNWIs), family offices, and entrepreneurs to its growing ecosystem. The announcement marks a significant expansion of the free zone’s offering and signals DMCC’s ambition to compete directly with established foundation regimes in the UAE.

The move did not come out of nowhere. DMCC first signaled its intention to introduce a foundations framework back in June 2026, and the formal establishment of the regulations follows what the authority describes as extensive market consultation, international benchmarking, and a comparative review of leading foundation regimes worldwide. The pace of development from announcement to enacted regulations in just a few months underscores the urgency DMCC places on positioning itself as a comprehensive platform for private capital.

Under the new regime, a DMCC Foundation is recognized as a legal entity separate from its founder, councilors, guardian, and beneficiaries. This is a familiar architecture for those acquainted with foundation structures in other jurisdictions. The framework enables assets to be held and managed in accordance with the foundation’s stated objectives and governance arrangements, providing a structured mechanism for long-term asset holding, succession planning, wealth preservation, and intergenerational continuity. Founders retain significant flexibility in how a foundation is structured: they can establish provisions covering beneficiaries, asset management and distribution, governance and decision-making arrangements, and may reserve certain powers to themselves or other designated persons, including powers relating to investment decisions, appointments, and beneficiary designations.

A notable feature of the new regime is its accessibility. DMCC Foundations can be established with initial assets starting from as little as USD 100, a remarkably low threshold that is clearly designed to lower the barrier to entry and encourage early adoption. The foundation vehicle is positioned as distinct from the DMCC Foundation that oversees the free zone’s philanthropic activities — this is a private wealth and structuring tool, pure and simple.

The introduction of foundations also builds on DMCC’s broader expansion into private wealth and capital structuring. In 2025, DMCC introduced Special Purpose Vehicle (SPV) and Holding Company (HoldCo) licences, broadening the range of structures available to its members. Foundations now sit alongside those structures as a further option designed specifically around long-term continuity, asset ownership, and governance.

It is worth noting that DMCC is not the first to offer foundations in the UAE. The Abu Dhabi Global Market (ADGM) pioneered the region’s first foundations regime in 2017, followed by the Dubai International Financial Centre (DIFC) in 2018, and the RAK International Corporate Centre (RAK ICC). All three operate under common law systems and have developed mature, internationally recognised frameworks for private wealth structuring, complete with their own courts and established regulatory ecosystems. DMCC’s entry into this space therefore represents a new competitor in an already active market and one that will inevitably be measured against jurisdictions with nearly a decade of operational experience.

And herein lies the critical question that practitioners and prospective clients should be asking: what comes next? While the regulations are now formally in place, DMCC has acknowledged that the supporting guidance for establishing and administering a foundation will only be introduced “in the coming weeks”. The full, detailed application requirements have not yet been published. At this stage, prospective applicants can register their interest, but the practical mechanics of setting up a DMCC Foundation remain to be seen. Based on DMCC’s existing frameworks, one can expect the process to broadly involve preparing KYC and AML documentation, securing DMCC approval, contributing assets, and furnishing details of the founder, beneficiaries, councillors, and other relevant parties but until the guidelines are formally released, this remains an informed expectation rather than confirmed procedure.

However, as a firm that regularly advises clients on structuring decisions across the UAE’s free zones, we would counsel a measure of patience. Significant questions remain around how the regulations will operate in practice, what the detailed guidelines will look like, and how the DMCC regime will compare in substance and application to the established frameworks offered by the DIFC, ADGM, and RAK ICC. Until the full operational infrastructure is in place, it is difficult to offer definitive guidance on whether DMCC represents the optimal choice for a particular client’s foundation needs, particularly when competing jurisdictions offer proven track records, dedicated courts, and years of regulatory refinement.

We will be monitoring developments closely as DMCC rolls out its supporting guidance and onboarding processes. The landscape is evolving rapidly, and having the right guidance at this stage can make all the difference.