Federal Decree by Law No. (31) of 2023 Concerning Trust

Purpose and legislative background

The decree-law modernises the UAE's federal trust framework by recognising the trust as a separately registered legal person, clarifying the rights and duties of the principal trust actors, and establishing registration and supervisory mechanisms.

The official source reviewed on 31 August 2026 continues to publish the 2023 decree-law. The related-legislation page lists Cabinet Resolution No. (137) of 2023 and Cabinet Resolution No. (141) of 2023 as important implementing instruments.

Scope and who it applies to

• Settlors creating a trust under the federal trust framework.
• Trustees and professional trustees.
• Professional legal persons acting as trustees where permitted.
• Beneficiaries and trust protectors.
• Competent local authorities responsible for validating and registering trust instruments.
• Persons dealing with property registered in the name of a trust.

Key definitions

• Trust: a legal person established through a trust instrument under the decree-law for the trust purpose.
• Settlor: the natural or legal person who creates the trust and transfers property to it.
• Trustee: the person appointed to exercise the authorities and powers stated in the trust instrument and the law.
• Beneficiary: a person entitled or potentially entitled to rights, distributions or trust property under the trust instrument.
• Trust Protector: a person appointed to protect the trust where the instrument provides for that role.
• Competent Authority: the local authority in the relevant Emirate responsible for validation and registration functions under the law.

Main rights and obligations

• The settlor must complete required transfers and provide trust-property records within the statutory framework.
• Trustees must exercise their powers according to the trust instrument and the decree-law and must protect the trust property.
• Trustees must avoid unauthorised conflicts and must account for their administration of the trust.
• Beneficiary rights are governed by the trust instrument subject to mandatory provisions of the decree-law.
• Registration requirements must be satisfied for the trust instrument and relevant trust-property dealings.

Procedures and compliance

1. Determine whether the federal law or a financial free-zone trust regime governs the proposed structure.
2. Draft the trust instrument with all mandatory statutory particulars.
3. Obtain the trust-validity approval/certificate required by the competent authority.
4. Complete initial registration in the trust record.
5. Transfer and register trust assets through the relevant federal or local asset registry.
6. Maintain trustee records, accounts, beneficiary records and amendment registrations.

Deadlines and time limits

• Article 11 contains a six-month period for specified settlor transfers unless the trust instrument provides otherwise.
• Article 16 contains a 20-working-day notice framework for trustee resignation/relief in the circumstances stated by the article, subject to its exceptions.
• The law took effect after publication; the package records 30 September 2023 as the verified effective date.

Enforcement, violations and penalties

The law provides judicial and regulatory remedies and includes criminal penalties for specified misconduct. Before stating a penalty for a real dispute, the exact current article and any applicable Cabinet resolution should be checked.

Important distinction: Penalties and enforcement powers must be taken from the enacted article and any current implementing resolution. Practical commentary in this file explains the framework but does not create additional duties or sanctions.

Practical scenarios

1. A family establishing a federal trust should first confirm that the intended jurisdiction is not a financial free zone with its own trust legislation.
2. A trustee wishing to resign should follow the trust instrument and the statutory notice and handover rules rather than simply ceasing to act.
3. A trust acquiring real property should coordinate the trust registration with the land registry so title and trust records are aligned.
4. A professional trustee should confirm that its licence and status meet the requirements of the 2023 implementing resolutions.

Amendments and related legislation

The official source reviewed on 31 August 2026 continues to publish the 2023 decree-law. The related-legislation page lists Cabinet Resolution No. (137) of 2023 and Cabinet Resolution No. (141) of 2023 as important implementing instruments.

What businesses and individuals should check

• Check whether the trust falls under a financial free-zone regime before applying the federal law.
• A trust instrument should be reviewed against the mandatory statutory particulars before registration.
• Asset transfers and asset-register entries must be coordinated with the competent property registry or authority.
• Professional trustees should verify licensing and registration requirements under the relevant Cabinet resolutions.
• When a trustee changes, closing accounts, custody of documents and transfer of control over trust assets should be documented carefully.
• Confirm the current version of the principal law and any implementing resolutions on the date the issue arises.
• Check whether a federal, local-Emirate or financial/free-zone rule changes the applicable regulatory perimeter.
• Keep the official source reference used for any compliance or procedural decision.

When legal advice may be useful

Professional interpretation may be useful where the applicable legal regime is disputed, a licensing or jurisdictional boundary is unclear, a transitional rule affects an existing right, a procedural deadline may expire, or a penalty/enforcement measure is possible.

Information status

Research checked on 2026-08-31. This page is general legal information and should be re-verified against the official UAE source before use in a transaction, proceeding or compliance decision.