ADGM Trusts Regulations

Supplements the English law of trusts applied in ADGM through the Application of English Law Regulations 2015 with ADGM-specific provisions, including protection of ADGM-law trusts and dispositions into trust against challenge under foreign forced-heirship or similar rules. The full text is published in the ADGM rulebook hosted by Thomson Reuters.

Summary

The Trusts (Special Provisions) Regulations 2016 are the ADGM statute that overlays English trust law with provisions tailored to international wealth structuring. In ADGM the law of trusts is English common law and equity, applied directly through the Application of English Law Regulations 2015 together with certain English statutes; the 2016 Regulations add the ADGM-specific rules. The creation, validity and interpretation of trusts, trustees' duties and beneficiaries' rights therefore draw on established English authority, applied by the ADGM Courts subject to ADGM legislation.

A trust is not a separate legal entity but a relationship under which a settlor transfers property to a trustee to hold for beneficiaries or for a purpose. No registration is required; an express trust is normally recorded in a deed, though it may arise orally or by conduct if the three certainties (intention, subject matter and objects) are present. An ADGM foundation, by contrast, is incorporated with separate legal personality.

The central provision the portal attributes to the Regulations is protection from foreign-law claims: no trust governed by ADGM law, and no disposition of property into such a trust that is valid under ADGM law, is void, voidable or defective by reference to foreign law. Foreign laws that do not recognise trusts or that impose heirship rights do not affect the validity of an ADGM trust, the settlor's capacity or the rights of trustees and beneficiaries, and foreign judgments inconsistent with these principles are not recognised or enforced in ADGM. The ADGM Court may still decline to uphold arrangements that are fraudulent, sham or contrary to ADGM public policy.

ADGM law also permits non-charitable purpose trusts, that is trusts without beneficiaries, provided the purposes are sufficiently certain, lawful and not contrary to public policy, an enforcer is appointed to enforce them, and the trust instrument provides for termination and distribution of surplus assets. A settlor may also appoint a protector with powers to change the governing law, remove or appoint trustees, add or exclude beneficiaries and veto trustee actions. Foreign trusts are interpreted under their own governing law but are unenforceable in ADGM to the extent they contravene ADGM law or public policy.

Anyone carrying on trust business by way of profession in or from ADGM is subject to FSRA licensing, conduct standards and AML obligations. Trustees in the UAE must also hold beneficial ownership information on trust assets and on any entity involved under Federal Decree-Law No. 10 of 2025 and Cabinet Resolution No. 134 of 2025, during the appointment and for five years after it ends, and disclose their status and the beneficial owners when asked by regulators, financial institutions and non-financial businesses. The Regulations are in force; the full text is in the ADGM rulebook.

Since 24 April 2026 a new section 5 bars creating or operating an ADGM-law trust as a non-profit organisation; trustees in default face fines up to level 8.

Who it applies to

Settlors, trustees, protectors, enforcers and beneficiaries of trusts governed by ADGM law, trustees carrying on trust business by way of profession in or from ADGM, and foreign trusts to the extent they are relied on in ADGM.

Contents

English official text in 9 sections. Open the full text or jump to a provision:

1. Section 1 — Limitations in foreign law
2. Section 2 — Heirship rights
3. Section 3 — Foreign judgments
4. Section 4 — Non-charitable purpose trusts
5. Section 5 — Restriction on non-profit organisation activities
6. Section 6 — Protectors
7. Section 7 — Enforceability of a foreign trust
8. Section 8 — Interpretation
9. Section 9 — Short title, extent and commencement

Key provisions

Obligations and deadlines

• Record the trust in a written declaration or deed that satisfies the three certainties, especially where land is settled.
• Appoint an independent enforcer for any non-charitable purpose trust.
• Obtain FSRA authorisation before carrying on trust business by way of profession in or from ADGM.
• Hold accurate beneficial ownership information on trust assets and connected entities during the trusteeship and for five years after.
• Disclose trustee status and beneficial owners to regulators, banks and DNFBPs on request.
• Do not create or operate an ADGM-law trust for a non-profit organisation purpose (section 5, from 24 April 2026).

Penalties

Section 5, inserted in April 2026, makes it a contravention to create or operate an ADGM-law trust for a non-profit organisation purpose: each trustee in default, and the directors, officers and controllers of a corporate trustee, is liable to a fine up to level 8 on the fines scale in Schedule 1 of the Administrative Regulations 2025. Beyond that, the ADGM Court may refuse to uphold arrangements that are fraudulent, sham or contrary to ADGM public policy, and trustees who fail the beneficial ownership duties face the sanctions of the federal AML law.

History and citations

“Cites” and “Cited by” are built automatically from references in the full texts held in this library; they cover only instruments in the library.

Related instruments

Related Polaris services

• ADGM Company Formation — Abu Dhabi
• Foundation Services DIFC ADGM
• Holding Structures UAE Cyprus Switzerland