As the UAE prepares to celebrate Eid Al Etihad and reflects on more than fifty years of national progress, fresh data from Sovereign PPG, a leading provider of business formation and corporate services in the region, reveals a 38.5% rise in the establishment of foundation structures in 2025. The surge comes as unprecedented numbers of high-net-worth families and family offices continue to relocate to the Emirates, reinforcing the country’s status as a top global hub for wealth migration and long-term financial planning.
Sovereign PPG is encouraging families to reassess their succession strategies and governance arrangements before the end of the year to ensure their assets are appropriately structured and future generations are fully protected. Based on exclusive insights from its client base, the firm anticipates a further acceleration in demand, with foundation setups expected to climb even more sharply in 2026 as families move towards compliant, future-ready wealth management solutions.
The UAE’s designation of 2026 as the ‘Year of Family’ further highlights the growing emphasis on safeguarding wealth, strengthening governance, and ensuring sustainable intergenerational stability. This national focus is expected to fuel additional growth in foundations, family offices and related structuring services across the Emirates.
Growth Driven by UAE Residency Programmes
The increase in demand is being fuelled by the UAE’s long-term residency and retirement programmes, the Golden Visa scheme, and its reputation for safety, stability, and ease of doing business. Foundations – distinctive legal structures recognised under UAE law – are increasingly becoming the preferred choice for families seeking to preserve wealth, ensure business continuity, and manage succession across generations.
“As we celebrate Eid Al Etihad, it’s a fitting moment to recognise the leadership that has made the UAE one of the world’s most secure and attractive destinations for global capital,” said Simon Gordon, Managing Director – Middle East, at Sovereign PPG. “But, as more wealth enters the country, families need to move beyond property investment and residency. True long-term success depends on how well assets are structured, succession is managed, and future generations are protected. Foundations provide an effective, modern solution to achieve this.”
Sovereign PPG is urging families to review their succession and governance frameworks before the end of the year, ensuring assets are optimally structured and future generations are safeguarded. With exclusive client insights pointing to continued momentum, the firm expects the number of foundation structures established in the UAE to rise sharply in 2026, reflecting a broader shift toward compliant, future-proof wealth management.
A Modern Approach to Wealth Preservation
Foundations combine the privacy and flexibility of a trust with the governance and legal benefits of a corporate structure. They allow families to consolidate and protect diverse assets – including property, operating companies, investments, and digital holdings – within a single vehicle, while enabling seamless wealth transfer to heirs and bypassing local inheritance laws. They can also be integrated into broader corporate tax strategies and qualify for tax-transparent treatment under UAE regulations.
“In the last three years, we’ve seen demand for foundations grow exponentially – up 222.9% overall and 38.5% this year alone,” added Gordon. “Interest is strongest among current UAE residents (62.2%), followed by internationally mobile families, particularly from the UK, Germany, India, France and South Africa, who are drawn by the UAE’s tax advantages, robust legal system, and stable financial environment. We are also seeing strong uptake among second-generation wealth holders seeking transparent structures that align with global compliance standards.”
The surge in interest is also reflected in client engagement: in a recent Sovereign PPG webinar with 187 potential clients exploring DIFC licenses, 25% of participants identified foundations as their primary area of interest, followed by holding companies (16%), family offices (14%), prescribed company SPVs (14%), and fintech licences (13%). This underlines the strong appetite among high-net-worth families and entrepreneurs for modern, structured solutions to preserve wealth and plan for succession.
Year-End 2025: A Strategic Moment for Review
With the UAE coming towards the end of its first full year under the new corporate tax regime, Sovereign PPG is advising high-net-worth families, entrepreneurs, and business owners to use year-end 2025 as a strategic opportunity to review their structures and ensure they remain fit for purpose.
“Families that fail to plan risk losing control, liquidity, and efficiency when generational changes occur,” said Gordon. “Year-end provides the perfect opportunity to assess governance frameworks, optimise tax positions, and ensure assets are secure for the future. Those who act now will enter 2026 from a position of strength.”
Supporting the UAE’s Long-Term Vision
The rapid adoption of foundations also aligns with the UAE’s broader economic agenda. By enabling family-owned businesses and investors to plan for the long term, foundations contribute directly to Vision 2031, which aims to position the Emirates as a global centre for wealth management, innovation, and investment.
This resonates with the spirit of the recently launched National Family Growth Agenda 2031, which highlights the importance of strong family structures as a cornerstone of national progress. As the UAE continues to attract and nurture both Emirati and expatriate families, the growing use of foundation structures reflects a shared commitment to long-term stability, continuity, and prosperity.
“The UAE’s leadership has created an environment where global wealth feels protected and welcome,” Gordon concluded. “Now, it’s about ensuring that same level of stability and foresight is embedded within each family’s legacy plans.”
