The growing role of foundations in the UAE

When you think of a foundation, the Gates Foundation is probably one of the first to come to mind. Launched by Bill and Melinda Gates in 2000, it’s known for its global philanthropic impact, having granted over $53 billion to date. With figures like that, it’s easy to assume foundations are only for the ultra-rich.

But that is no longer the case. In the UAE particularly, foundations are stepping into the spotlight as powerful tools for families looking to preserve wealth, manage complexity, and build lasting legacies.

Why foundations are gaining ground

At its core, a foundation is an independent legal entity that can hold and manage a wide range of assets, from investment portfolios and property to company shareholdings. But its real power lies in its flexibility. At a time when family dynamics are evolving, wealth is increasingly global, and priorities often span across growth and giving, foundations offer a structured yet adaptable way to manage it all.

Legacy is no longer just about passing on money. It’s about the continuity of family values, preparing the next generation, and building something that lasts.

Unlike some structures, foundations can own assets directly, make investment decisions, and operate independently from personal wealth. For founders, this means more control and wider options. The founder can sit on the foundation’s council, help shape its direction, and still benefit from its activities, something other structures simply don’t allow. This is one reason foundations are becoming an increasingly popular choice in the UAE.

Who is using foundations and why

The UAE has emerged as a global hub for wealthy people and foundations are a part of that story. With a robust legal framework and cultural alignment with the values of privacy, discretion, and long-term thinking, the UAE offers an ideal environment to set up a foundation.

For families with significant assets, foundations offer strong governance without rigidity. They’re structured enough to provide clarity, yet flexible enough to evolve with changing family needs, business goals, or philanthropic ambitions.

Foundations are a popular tool for many people, including entrepreneurs, family business owners, and philanthropists who want to ensure their wealth does more than just sit still. Some use foundations to manage family investments. Others use them to set rules for future wealth distributions or to support charitable causes. But the common theme is that they all want a structure that can grow with them.

Because priorities shift, markets move, and regulations change, a well-managed foundation, with the right guidance, can be a flexible, living part of a family’s long-term wealth strategy.

A strategy for success

Setting up a foundation is just the beginning. It takes the right mix of legal and financial guidance to make sure it’s built to support your long-term goals. Too often, families go through the legal motions, create a bank account and then pause, unsure of what their next steps are. The structure exists, but there’s no plan for how to grow the assets, support the mission, or adapt over time.

Without a clear investment strategy, the foundation’s potential is left on the table. The ability to grow wealth, fund causes, or support future generations depends on more than just good paperwork, it requires smart financial management.

This is where the foundation council comes in. As the governing body, it can make decisions and work with professional advisers to align investments with the foundation’s goals, whether that’s preserving capital, generating income, or funding philanthropic activities.

A wealth planner’s role in this process is to help you design a wealth plan, including an investment strategy, that reflects not just financial objectives, but also the foundation’s broader purpose. That means understanding governance, regulation, and the cultural context that shapes decision-making in the region.

From vision to legacy

Still going strong 25 years later, the Gates Foundation is a good example of how a foundation can be shaped entirely around the founder’s vision. But the rise of foundations in regions like the UAE signals a broader shift. One where families are looking for structures that offer both longevity and agility. For those serious about preserving and growing wealth across generations, foundations are becoming increasingly popular.

Of course, a successful foundation starts with the right legal setup, but it shouldn’t end there. Where the wealth is held, how it’s invested, and what it’s meant to achieve are all incredibly important for its success. That’s why working with a skilled wealth planner is essential.

Foundations aren’t just about structure, they’re about strategy and with the right support, they can become one of the most powerful tools for building a legacy that lasts.