RAK ICC solidifies its governing structure with 2025 legal amendments
Ras Al Khaimah International Corporate Centre (RAK ICC) Strengthens Foundations Regulations
The Ras Al Khaimah International Corporate Centre (RAK ICC) has announced significant amendments to its Foundations Regulations 2019, effective from 31st July 2025. These changes aim to provide more robust and secure solutions for wealth management and long-term planning.
The key changes include the introduction of firewall provisions that enhance confidentiality and protect foundation assets from third-party claims. These provisions ensure that assets held within RAK ICC Foundations are legally distinct and separate from foundation property, providing clear asset segregation.
To further bolster asset protection, a three-year statute of limitations has been introduced, limiting challenges to establishment or asset transfers to three years. Creditor fraud claims are now limited to the specific asset involved and only if rendering the founder insolvent. Additionally, duress and officer protections have been strengthened, nullifying actions taken under foreign legal coercion.
The amendments also address governance integrity and operational resilience. Officers of a RAK ICC Foundation are now obligated to disregard foreign orders inconsistent with RAK ICC law, safeguarding the autonomy of the foundation's decision-making. Private Trustee Foundation Provisions have been clarified to ensure asset segregation and fiduciary integrity for property held in trust by a foundation.
Dispute resolution has been strengthened with arbitration provisions expanded to grant tribunals court-like powers. This allows disputes to be resolved privately with court-level powers, efficiently, confidentially, and in line with international best practices.
RAK ICC Foundations are widely recognized for their flexibility, confidentiality, and legal robustness. These enhancements significantly strengthen asset protection, governance, and dispute resolution within the foundations regime, making RAK ICC foundations more robust vehicles for long-term wealth structuring.
These regulatory improvements reflect the jurisdiction's commitment to supporting sophisticated wealth planning strategies that balance control, privacy, and long-term security. RAK ICC serves high-net-worth individuals, entrepreneurs, and businesses seeking flexible and secure solutions for long-term business and wealth management.
Collectively, these changes bolster the UAE's position as a reputable, flexible, and investor-friendly jurisdiction for wealth structuring. They provide increased legal certainty and stronger protective safeguards, supporting family offices, entrepreneurs, and investors in preserving and transferring wealth across generations within a stable and internationally compliant framework.
In summary, the 2025 legislative enhancements to RAK ICC foundations enhance the UAE's attractiveness for sophisticated wealth planning by combining best-practice asset protection mechanisms with an effective governance and dispute resolution system. RAK ICC is cementing its position in the UAE as a trusted partner for those seeking secure, adaptable, and internationally compliant solutions for wealth preservation and intergenerational planning.
[1] RAK ICC Press Release
[2] Arabian Business
[3] International Investment
- The amendments to Ras Al Khaimah International Corporate Centre (RAK ICC) Foundations Regulations 2019, effective from 31st July 2025, are designed to provide more secure solutions for wealth management and long-term planning in the business sector, particularly for high-net-worth individuals and businesses.
- The changes in the RAK ICC Foundations regulations, such as the introduction of firewall provisions and limitations on creditor fraud claims, strengthen financial asset protection and governance, making RAK ICC foundations more robust vehicles for long-term business and wealth management.
