RAK ICC enhances foundations regime with key legal safeguards

RAS AL KHAIMAH, UAE - Ras Al Khaimah International Corporate Centre (RAK ICC) has implemented significant amendments to its Foundations Regulations 2019, effective July 31, 2025, strengthening legal protections for wealth structuring and asset management.

The updates include enhanced firewall provisions to shield assets from foreign judgments that conflict with UAE law, and a new three-year statute of limitations on challenges to foundation establishment or asset transfers.

The amendments also limit creditor fraud claims to specific assets involved and only in cases where transfers rendered the founder insolvent. Foundation officers are now required to disregard foreign orders that contradict RAK ICC regulations, preserving governance autonomy.

Additionally, the revised regulations clarify that assets held in trust by a foundation are legally separate from foundation property, ensuring clear asset segregation. The arbitration framework has been expanded to grant tribunals court-like powers for more efficient and confidential dispute resolution.

RAK ICC Foundations are utilized for succession planning, family governance, and consolidating diverse assets under a single legal entity. These structures serve high-net-worth individuals, entrepreneurs, and family offices both within the UAE and internationally.

The changes represent one of the most substantial updates to the foundations regime since its introduction in 2019, according to the press release statement from RAK ICC. The organization positions these amendments as part of its strategy to maintain a forward-looking regulatory environment that meets global standards while addressing specific client needs.

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