UAE Reinforces Its Position As A Global Hub For Smart Asset Structuring

(MENAFN- Khaleej Times)

As global investors continue to reassess how and where they structure their assets, the United Arab Emirates remains one of the most attractive and forward-thinking jurisdictions worldwide. With regulatory clarity, strong governance frameworks, and a long-term economic vision, the UAE continues to offer an environment where well-planned investment structures can thrive.

According to Ahmed El Naggar, Founder and CEO of Elnaggar & Partners and Founder of the Emirates Legal Network, the UAE's evolving regulatory landscape is encouraging investors to adopt more thoughtful, compliant, and sustainable asset structuring strategies.

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“The UAE has entered a mature phase of regulation,” El Naggar said.“This is not a limitation-it is a strength. Investors who understand the rules and structure their assets properly are finding the UAE to be one of the most stable and predictable jurisdictions globally.”

El Naggar explains that effective asset structuring begins with clarity of purpose. Real estate portfolios, operating businesses, holding companies, and cross-border investments all carry different risk profiles and regulatory implications. Nationality, residency, tax exposure, asset type, and long-term objectives must be assessed together rather than in isolation.

In practice, many investors adopt complex family or group structures that combine operating companies, real estate special purpose vehicles (SPVs), free zone entities, and foreign companies, often consolidated under a single foundation or holding structure. While these arrangements may appear efficient on paper, they can become fragile if not supported by coordinated legal, tax, financial, and governance advice.

“The biggest issues arise when structures are built without considering how they will function in real life-banking compliance, reporting obligations, substance requirements, and daily operations,” El Naggar noted.

Recent regulatory developments-including the introduction of corporate tax, clearer tax residency rules, and increased financial transparency through international information exchange-have made governance and compliance central considerations for investors. What worked in previous decades may no longer be appropriate in today's environment.

At the same time, the UAE continues to offer compelling advantages: full foreign ownership, long-term residency programs, efficient company formation processes, advanced digital infrastructure, and increasingly predictable courts and regulators.

This balance of opportunity and regulation has led many advisors to recommend restructuring existing arrangements. However, El Naggar warns that acting too quickly can create significant risk.

“Some investors rush to dissolve entities or allow structures to lapse without properly transferring ownership rights, contracts, or banking authority,” he said.“When assets are involved, continuity is critical. The cost of fixing poorly handled transitions is almost always far higher than the cost of proper planning.”

El Naggar emphasizes that the most successful structuring decisions are made deliberately, with a long-term perspective and input from aligned advisors.

“The message is simple,” he concluded.“Pause. Clarify your objectives. Understand the implications. Then decide. In the UAE, smart structuring is not about speed-it's about foresight.”

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