Federal Decree by Law No (31) of 2023 Concerning Trust (finance and banking law)

Article (1) 
Definitions  
In application of the provisions of this Law by Decree, the following words and phrases shall 
have the meanings assigned to each of them, unless the context otherwise requires:  
State  :  United Arab Emirates . 
Minister  : Minister of Finance.  
Competent 
Authority  : The local authority in the concerned Emirate competent with 
verifying the validity of the Trust Instrument created in that 
Emirate and registering it, in accordance with the provisions of 
Articles (42) and (44) of this Law by Decree,  respectively.  
Person  :  Natural or legal person.  
Trust  : The legal person established by virtue of the Trust Instrument in 
accordance with the provisions of this Law by Decree to achieve 
the purpose of the Trust.  
Settlor  : A natural or legal person who creates the Trust and transfers its  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  2 
 property thereto in accordance with the provisions of this Law by 
Decree.  
Trustee  : A natural person, including the Professional Trustee, or a 
profession legal person, appointed in acco rdance with the Trust 
Instrument, to whom the authorities and powers identified in the 
Trust Instrument and the provisions of this Law by Decree are 
transferred to achieve the purpose of the Trust.  
Professional 
Trustee  : A natural person licensed to car ry out the duties of the Trustee 
according to the provisions of this Law by Decree or the 
legalisation in force in the State . 
Professional 
legal person  : A legal person licensed in the State, including in any of the 
financial free zones, which is allowe d by the licence to carry out 
the authorities and powers of the professional trustee.  
Trust 
Instrument  : A written document prepared by the Settlor to determine the terms 
and conditions relating to the Trust, including any amendments to 
those terms and conditions.  
Terms of the 
Trust 
Instrument  : Terms stipulated in the Trust Instrument that express the will of 
the Settlor and how to enforce and manage the Trust . 
Trust 
Property  : Any movable or immovable property owned by the Trust, 
including any interests related thereto or deemed a part thereof 
and any existing or possible right, inside or outside State. The Trust 
Property includes Dividends of the Trust in accordance with what  
is specified by the Trust Instrument.  
Dividends of 
the Trust  : All returns, interest, revenue and any profit resulting from an 
investment or use or disposal of any of elements of the Trust 
Property . 
Beneficiary  : The person entitled to a personal ri ght by virtue of the Trust 
Instrument, including the person entitled to or may be entitled to, 
in accordance with the Trust Instrument obtaining dividends or  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  3 
 property of the Trust; and any person to whom the trustee has the 
power to grant the dividends of the trust, including granting the 
security right in his favour on the property of the Trust.  
Record  : A database maintained by the Competent Authority for registering 
and documenting the Trust Instrument and any amendments 
thereto.  
Purpose of 
the Trust  : The purpose for which the trust is created in accordance with the 
provisions of Clause (1) of article (6) of the Law by Decree.  
Trust 
Protector  : A person appointed by the Settlor to protect the Trust, or 
appointed in accordance with the mechanism determined by the 
Trust Instrument . 
Interested 
Party  : The Settlor, Trustee, Beneficiary, the legal representative of the 
Beneficiary, or the Trust Protector.  
Competent 
Court  : A court having the competence according to the Civil Procedures 
Law.  
Trust's 
Validity 
Certificate  : A certificate issued by the Competent Authority in accordance with 
the provisions of Clause (2) of article (42) of this Law by Decree.  
Registration 
Cer tificate  : An official certificate issued by the Competent Authority in 
accordance with the provisions of Clause (4) of article (44) of this 
Law by Decree.  
Financial 
Free Zones  : Free zones specified by virtue of the provisi ons of Federal Law No. 
(8) of 2004 Concerning the Financial Free Zones.  
Initial 
Registration  : The first procedure of registering the relevant Trust Instrument in 
the Record and issuing a registration certificate, excluding any 
subsequent registration of any amendment to the Trust Instrument 
in the Record.  
  
 
  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  4

Article (2) 
Scope of Application of the  Law by Decree  
1. The provisions of this Law by Decree shall apply to every trust created in accordance 
with its provisions, except for the Financial Free Zones that have legislation to regulate 
the Trust created therein.  
2. The Trust shall be subject to the provisions of the Trust Instrument, the provisions of this Law by Decree, its preamble, and the resolutions issued pursuant thereto, and not to any 
other legislation.

Article (3) 
Legal Personality of Trust and Ownership of Trust Property  
1. The Trust shall acquire the legal personality as of the initial registration date and shall 
have financial and administrative independence and the right to litigation, and shall be 
represented by the Trustee.  
2. Neither the Settlor  nor the Trustee, nor their heirs or successors, are considered owners 
of the Trust Property and its Dividends, and the Trust, its Property or Dividends do not 
enter the estate of any of them in the event of death or in bankruptcy or liquidation 
procedures taken against any of them.  
3. The ownership of the Trust Property shall be transferred to the Trust once they are 
transferred to the Trust in accordance with the rules.  
  
Chapter Two  
Creation of the Trust

Article (4) 
Trust Property Requirements  
1. The property transferred to the Trust must meet the following conditions:  
a. The property must be owned by the Settlor, who has the right to dispose thereof 
personally or through his legal representative, in accordance with the provisions of 
this Law by Decree and any other legislation in force in the State.   
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 b. The property that will be transferred to the Trust must be disposable and free of any 
established right of a third party. If the property is associated with an established 
right of a third party,  the ownership of such property shall be transferred to the Trust 
associated with this right.  
c. The property must be specific or specifiable, and include property that will be 
realized in the future.  
2. The transfer of the Settlor's property to the Tr ust is not a condition for its creation.  
3. The Trust Property shall not subject to any financial disclosure by the Trustee unless  
such disclosure is made by the Trustee in his capacity or in implementation of an order 
from a Competent Court or in accordance with the legislation in force in the State.

Article (5)  
Trust Instrument  
1. The Trust Instrument shall fulfil the following conditions:  
a. It must be approved by the Competent Authority in accordance with article (42) of 
this Law by Decree.  
b. It must be executed in a written form, and signed by the Settlor or each Settlor if they are multiple, in accordance with the procedures approved by the Competent 
Authority. If the person appointed as Trustee, or one of the Trustees if they are 
multiple, accepts his appointment in the manner specified in Clause (1/A) of Article 
(15) of th is Law by Decree, the Trust Instrument may also be signed by that person.  
c. It must be registered in the Record according to article (44) of this Law by Decree.  
2. The Trust Instrument must include the following data:  
a. Declaration of the Settlor's will to create the Trust.  
b. Determination of the beneficiary of the Trust, or the mechanism of determining him.  
c. Determination of the Trust Property or a statement of its description in a manner that 
enables it to be ide ntified.  
d. Determination of the Trust period and, in the event the period is not determined, the 
Trust shall be deemed for life unless otherwise is established from the circumstances 
as assessed by the Competent Court.   
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 e. Determination of the name by which the Trust shall be known.  
f. Naming the Trustee or the mechanism of naming him to work in such capacity.  
g. Determination of the authorities and powers of the Trustee.  
3. In the event of the absence of either of the data mentioned in the Clause (2) of this 
Article, except Paragraph (D) of Clause (2), the Trust Instrument shall be void.  
4. The Trust Instrument may include:  
a. Detailed data on determining the Beneficiary and the portion allocated for each 
Beneficia ry, if they are multiple.  
b. Whether the Beneficiary's share is a portion of the Dividends of the Trust Property or 
a portion of the Trust Property itself.  
c. The power of the Trustee to accommodate the interest of Beneficiaries when distributing the Trust Property to them without violation of the terms of the Trust 
Instrument.  
d. Determination of the conditions related to the management of the Trust Property.  
e. Method of appointment, dismissal and replacement of the Trustee and any resulting 
effects.  
f. Effects resulting from the termination of the Trust.  
g. Any other matters with regard to implementation of duties of Trustee or regulation of 
the relationship between him and the Settlor, the Beneficiary or the Trust Protector.  
h. Method of appointment of the Trust Protector and his powers.  
i. A description of the purpose of the Trust.  
j. Any other matters that may be included in the Trust Instrument according to the 
provisions of this Law by Decree.  
5. The registration of the Trust Instrument after reviewing the structure, terms, conditions, and clauses of the Trust Instrument and the is suance by the Competent Authority of a 
Trust validity and enforceability certificate, is considered an argument on all party of the 
validity and enforceability of the Trust unless its invalidity is proven in accordance with 
the provisions of article (39) o f this Law by Decree.  
6. The Trust Instrument and any document related thereto shall be written in Arabic or in 
any other language, provided it is accompanied by a certified translation into Arabic; and  
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 in the event of a dispute, the original language in  which the Trust Instrument is written 
shall prevail.

Article (6)  
Purpose of the Trust  
The purpose of the Trust stated in the Trust Instrument must be clearly defined, legitimate 
and achievable.

Article (7) 
Increasing Trust Property  
1. The Settlor may add additional property to the Trust, unless the Trust Instrument 
stipulates otherwise.  
2. The Trust Dividends shall be attached to the Trust Property.

Article (8) 
Trust Period  
1. Subject to Clause (2/D) of article (5) of this Law by Decree, the end of the Trust period 
may be linked to an incident or a legitimate, specified and feasible reason, provided this 
is expressly stated in the Trust Instrument.  
2. If a period is set for th e Trust and the Trust Instrument does not stipulate the mechanism 
for distributing the Trust Property at the end of such period, the Competent Court may, 
upon the request of any Interested Party, and subject to the provisions of article (41) of 
this Law by  Decree, or issue a decision to distribute it.  
  
Chapter Three  
Settlor

Article (9) 
Conditions of Settlor  
1. If the Settlor is a natural person, he must meet the performance eligibility conditions in  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  8 
 accordance with the provisions of the Federal Civil Transactions Law.  
2. If the Settlor is a legal person, a decision shall be issued from the Competent Authority to 
dispose of its property according to the incorporation documents of that person, and the 
legislation applicable in the State.

Article (10)  
Multiple Settlors  
1. If there are multiple Settlors:  
a. They shall take all decisions unanimously, without cons ideration to the contribution 
of each Settlor to the Instrument Property, unless the Trust Instrument stipulates otherwise.  
b. Each Settlor shall carry out his powers in accordance with the terms of the Trust 
Instrument.  
2. Each Settlor may delegate any of his powers granted thereto according to the provisions 
of this law by Decree to another person, unless the Trust Instrument stipulates 
otherwise.

Article (11)  
Obligations of the Settlor  
The Settlor shall be committed to:  
1. Transferring the property to the Trust and transfer the authorities and powers to the 
Trustee within a period not exceeding six (6) months as of the date of Initial Registration, 
unless the Trust Instrument stipulates otherwise.  
2. Delivering all do cuments, instruments and data related to the Trust Property to the 
Trustee within the period stipulated in Clause (1) of this Article, unless the Trust 
Instrument stipulates otherwise.  
  
 
  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  9

Article (12)  
Powers of the Settlor  
1. The Settlor may keep for himself the following powers related to the Trust if the Trust 
Instrument expressly allows it:  
a. Termination of the Trust or revoking it in whole or in part.  
b. Amendment or change of the Trust purpose. In this case, it is per missible to specify in 
the Trust Instrument a certain period within which no amendment or change is 
allowed, and the Settlor may make amendments or changes after this period ends, 
provided this takes place during his life if he is a natural person.  
c. Amendment of either of terms of the Trust Instrument in whole or in part, including 
the cases stipulated in this Law by Decree.  
d. The addition of a new Beneficiary or the exclusion of any Beneficiary from the Trust, 
the amendment of the rights of any Bene ficiary, or the development of terms related 
to determining Beneficiaries or their entitlement to the Trust Dividends, permanently 
or temporary. It is permissible to specify in the Trust Instrument the party with the right to carry out the power stipulated  in this Article and any other related terms.  
e. The appointment or dismissal of the Trustee, Trust Protector or any other person appointed or given authorities or powers by virtue of the provisions of this Law by 
Decree.  
f. Change of the Trustee's obligations as stipulated by the Trust Instrument and the 
restriction of the Trustee carrying out any of his authorities or powers and the registration thereof by written consent from the Settlor or any other person 
determined in th e Trust Instrument.  
g. Issuance of instructions to the Trustee with regard to the management, disposal, 
method of use, exploitation or investment of the Trust Property, or the appointment or delegation of any person to do so, and any registration relatin g to any amendment 
to the Trust Instrument.  
2. The Settlor's exercise of any of the authorities and powers stipulated in Clause (1) of this 
Article shall not be effective against the Trustee except as of the date on which the 
Settlor or his representativ e notifies him thereof in writing, and any actions carried out  
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 by the Trustee in good faith before receiving this notification shall be considered valid.  
 
Chapter Four  
Trustee

Article (13)  
Condition for Appointing the Trustee  
1. The Trustee who is a natural p erson must meet the following conditions:  
a. To have the eligibility of performance according to the legislation applicable in the 
State.  
b. To be of good character and conduct and to have never been convicted of a crime or 
misdemeanour against honour or integrity, unless he has been rehabilitated; and this 
shall be proven by virtue of a criminal case investigation certificate or something 
simi lar issued by the competent authorities in the State.  
2. If the Trustee is a legal person, it must be a Professional Legal Trustee.  
3. Professional Legal Persons and Professional Trustees shall be licensed by each Emirate in 
accordance with the licensing requirements and procedures determined by a Cabinet 
Resolution upon on the Minister's proposal and in coordination with the competent authorities.  
4. The Settlor may be both a Trustee and a Beneficiary.

Article (14)  
Multiple Trustees  
1. The Trust may have one Trustee or more as stipulated by the Trust Instrument.  
2. If the Trust Instrument does not specify the number of Trustees, the Trust shall have one 
Trustee, and the Settlor shall reserve the right to add one or more Trustees if the  Trust 
Instrument stipulates that, and he also has the right to grant this power to the Trustee Protector.  
3. If there are multiple Trustees, the Trust Instrument must stipulate the following:  
a. Distribution of authorities and powers related to the Tr ust between more than one  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  11 
 Trustee.  
b. The responsibility of each Trustee for his actions and dispositions within the limits of 
his authorities and powers specified in the Trust Instrument.  
The Settlor may appoint one of the Trustees, in the event of mult iple Trustees, as the main 
Trustee to carry out the authorities and powers stipulated in the Trust Instrument or in this 
Law by Decree.  
1. In the event of multiple Trustees, if the Trust Instrument does not stipulate the method of 
managing the Trust bet ween them and making decisions related to the Trust, they must 
work together, and their decisions shall be taken in writing by an ordinary majority, except in cases where an urgent action is required to achieve the purpose of the Trust, or 
where the requir ed action does not require an exchange of opinions, such as the receipt 
or repayment of a debt, so that any Trustee may take the appropriate decision.  
2. Subject to the provisions of the Trust Instrument, in the event of multiple Trustees, any 
opposing Trustee shall have the right to object to the decision issued by the majority of Trustees, and his objection shall be recorded in writing in the decision its elf. 
3. In the event of multiple Trustees, if the Trust Instrument does not specify the duties of each of them, they will be jointly responsible for the damage incurred by the Trust if it 
results from a joint fault.  
4. In the event that one of the Trus tees ceases to be eligible to assume his duties, the 
remaining Trustees shall carry out their usual duties until a new Trustee is appointed.  
5. In the event of multiple trusts, Trustees shall not be jointly liable for what one of them 
does if he exceeds his authorities and powers stipulated in the Trust Instrument or is 
arbitrary in its implementation.

Article (15)  
Accepting or Rejecting the Appointment of Trustee  
1. The person who has been named Trustee may accept or reject his appointment in this capacity, and any of the following is considered acceptance by him if he fulfils any of the 
following within a period specified by the Settlor in the Trust Instrument, or within ten 
(10) working days as of the date of Initial Registration if the Trust Instrum ent does not  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  12 
 stipulate that period:  
a. If the nominated person expressly consents to this appointment.  
b. The signature of the nominated person on the Trust Instrument, if he is a natural 
person, or the signature of the legally authorised person in the case of a legal person.  
c. The transfer of authorities and powers over the Trust Property to the nominated 
person and the commencement of performing his obligations as Trustee.  
2. Any person who has been named Trustee is considered as rejecting of this appointment 
in any of the following cases within a period specified by the Settlor in the Trust 
Instrument, or within ten (10) working days as of the date of Initial Registration if the 
Trust Instrument does not stipulate that period:  
a. If the nominated person expressly rejects his appointment.  
b. If the appointed person does not express his acceptance or rejection of the appointment.  
3. The express acceptance or rejection of the appointment shall be sent by any written 
means to the Settlor. In the event of the death of the Settlor, the acceptance or rejection 
of the appointment shall be sent to any other appointed Trustee exercising his d uties 
over the same Trust or to any other person who has the power to appoint the Trustee in 
accordance with what stipulated in the Trust Instrument.  
4. The Trust Instrument may stipulate the appointment of an alternative Trustee or the 
method for select ing an alternative Trustee, in the event that the named Trustee rejects 
or is deemed to reject the appointment.  
5. The transfer of the property of the Settlor to the Trust shall not be completed except after 
naming a person as Trustee and after he accept s his appointment in this capacity in 
accordance with Clause (1) of this Article. In the event of multiple Trustees, at least one Trustee must accept his appointment in this capacity in accordance with Clause (1) of 
this Article.

Article (16)  
Trustee's Resignation, Relief from Duty, or Suspension  
1. The Trustee may resign or request to be relieved from his position as Trustee after  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  13 
 accepting his duties.  
2. Subject to the provisions of the Trust Instrument, the resignation or request to be 
relieved shall be submitted by any written means to the Settlor or the Trust Protector in 
the event of the death or loss of capacity of the Settlor at least twenty (20) working days 
before the effective date of the resignation or request to be relieved from the duty, 
unless The Trust Instrument specifies a shorter period or the remaining Trustees 
unanimously agree to a shorter period for the resignation or relief from duty to take effect.  
3. The person who has authority to appoint the Trustee must respond to a request for his resignation or relief by any written means within ten (10) working days as of the date of 
receipt of the request. The request for resignation or request for relief is dee med 
accepted if there is no response within the specified period.  
4. If the Trust Instrument does not regulate the terms and conditions of the resignation or 
relief of the Trustee from his duties, or if the Trustee refuses to accept the resignation or relief from duties, the Trustee must submit the relevant request to the Competent Court 
to issue a decision thereon, and if the Competent Court finds out that the purpose of the resignation is to disrupt the implementation of the Trust, it shall issue a decision to reject 
the resignation, and obligate him to pay the damages resulting from that.  
5. In the event of the death of the Settlor or his loss of legal capacity, the Settlor or the Trust 
Protector may dismiss the Trustee for ceasing the performance of his duties for a period 
exceeding three (3) months, even if the reasons for that are justified, unless the Trust 
Instrument stipulates otherwise, and if the Settlor or the Trust Protector is unable to 
dismiss the Trustee in accordance with the provisions o f this Clause, any relevant party 
may request the Competent Court to issue a decision to dismiss the Trustee due to his cease to perform his duties for a period exceeding three (3) months, even if the reasons 
for that are justified.  
6. If the concerned T rustee commits a deliberate error or breaches his obligations 
stipulated in the Trust Instrument or this Law by Decree, the Settlor or the Trust 
Protector, in the event of the death of the Settlor or loss of his legal capacity, and upon the request of the remaining Trustees, if multiple, may order to suspend the Trustee from  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  14 
 practising his authorities and powers or to fulfil his obligations for the period he 
determines so as not to harm the purpose of the Trust; and in the event of multiple 
Trustees, the Tr ustee who has been suspended from work in accordance with the 
provisions of this Clause shall have the right to object to the decision of the Settlor or the 
Trust Protector, as the case may be, and he must provide written notification of his 
objection to t he remaining Trustees.

Article (17)  
Dismissal of Trustee  
Any of the Trustees shall be dismissed or a request to replace any of the members of the 
board of directors of the Trustee shall be made if the Trustee is a legal person for any of the 
reasons specif ied in the Trust Instrument, in accordance with the following:  
1. The Settlor during his lifetime.  
2. The Trust Protector in the event of the death or loss of legal capacity of the Settlor.  
3. The remaining Trustees, if multiple, after the death of the Settlor, in the event that there is no Trust Protector.  
4. The Competent Court upon the request of any interested party, in the event that the 
Trustee cannot be dismissed in accordance with the provisions of clauses (1), (2) and (3) 
of this Article.

Article (18)  
Expiry of Trustee's Powers 
1. The powers of the Trustee shall expire in any of the following cases:  
a. Upon his death or loss of legal capacity if the Trustee is a natural person.  
b. Upon liquidating his activity or declaring its bankruptcy if the Trustee is a legal 
person.  
c. Upon the expiration of the term of his appointment as specified in the Trust 
Instrument.  
d. Upon cancelling the Trustee's licence if he is a Professional T rustee or a Professional 
Legal Person.   
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 2. Subject to the terms of the Trust Instrument, and in the event that the powers of the 
Trustee expire in accordance with Clause (1) of this Article and there is no appointed 
Trustee to assume the duties related to  the Trust, the Competent Court shall assign the 
management of the Trust to a temporary Trustee or one or more Professional Legal 
Persons until a new Trustee is appointed in accordance with the Trust Instrument or in 
accordance with the provisions of this Law by Decree in the event that the Trust 
Instrument does not include the method for appointing a new Trustee; and the Trust 
shall remain under the management of the Professional Trustee or the Professional Legal 
Person appointed temporarily until the new Trustee assumes his duties.  
3. In the event of the expiry of the Trustee's capacity in accordance with Clause (1) of this 
Article, and the terms and mechanism for replacing the Trustee are not specified in the 
Trust Instrument, the Competent Court shall be responsible, upon the request of any 
interested party, to appoint a new Trustee.  
4. Any person appointed as replacement Trustee in accordance with Clause (3) of this Article shall enjoy all the authorities and powers that the replaced Trustee had, unless 
otherwise is stipulated in the Trust Instrument or in the decision of the Competent C ourt 
that has appointed the replacement Trustee.  
5. The Trustee whose capacity has expired, or his heirs or successors, must hand over all 
documents related to the Trust to the new Trustee in accordance with Clause (3) of this Article.  
6. The replaceme nt of the Trustee shall not prejudice any obligation imposed by any other 
applicable law regarding the consideration of dispositions made by the former Trustee in 
relation to the Trust.

Article (19)  
Effect of Expiry of Trustee's Powers  
1. If the powers o f the Trustee expire for any reason and no other Trustee is appointed, the 
Trust shall be effective until a new Trustee is appointed in accordance with the 
provisions of this Law by Decree, unless the Trust Instrument stipulates otherwise.  
2. If the powers of the Trustee expire for any reason other than death or loss of legal  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  16 
 capacity, he must submit to both the Settlor and the Trust Protector or the Competent 
Court, if he was appointed by it, an audited final account of the Trust accompanied by all 
data,  papers and documents related to the work he has undertaken in favour of the 
Trust. He shall be considered a custodian of the Trust Property until he completes the 
delivery of all supporting information and documents in his possession; and he must 
take the necessary measures to transfer the rights over the Trust Property to the new 
Trustee or the other Trustees, if multiple, as soon as possible.  
3. If the powers of the Trustee expire due to death or loss of legal capacity, the heirs of the 
Trustee or the legal representative of the Trustee, as the case may be, must notify the 
Competent Court or any of the other Trustees, if multiple, of the death of their testator or 
loss of his legal capacity within forty (40) working business days as of the date of death or loss of legal capacity or as of the date of their knowledge of the Trust if they were not 
aware of it, and the Competent Court shall notify the Settlor, the Trust Protector and the 
Beneficiary of the death of the Trustee or the loss of his legal capacity.  
4. In the event of the death of the Trustee or his loss of legal capacity, his heirs or his legal 
representative, as the case may be, are obligated to transfer the Trust Property in their 
custody to a new Trustee in accordance with the provisions of the Trust Instrument or 
pursuant to a decision from the Competent Court.  
5. If the Trustee is a legal person and its capacity expires, the Compete nt Court may decide 
that the person appointed by that legal person shall continue as Trustee.  
6. If the heirs of the deceased Trustee do not have legal capacity, their legal representative 
must implement the obligations stipulated in Clause (3) and Claus e (4) of this Article.  
7. In the event of multiple Trustees, and the expiry of the capacity of Trustee for one or 
more of the Trustees, the Trustee continuing in his position shall have all the authorities 
and powers over the Trust Property, and he must fulfil all obligations until a new Trustee 
is appointed.  
8. The expiry of the capacity of Trustee for any reason shall not affect the continuation of 
the Trust unless the Trust Instrument stipulates otherwise, provided that the new 
Trustee, after his app ointment, shall exercise all the authorities and powers of the former 
Trustee by force of law without the need for any action, excuse or notification.   
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 9. The new Trustee must take the necessary measures to obligate any former trustee to 
return and deliver the Trust Property, unless the Trust Instrument stipulates otherwise. 
The new Trustee must demand compensation from the former Trustee for any damage 
resu lting from any breach he caused during the period of his term, or in accordance with 
the provisions of this Law by Decree.

Article (20)  
Trustee Fees and Trust Management Expenses  
1. The Trustee is entitled to fees for carrying out the tasks specified in the Trust Instrument, in accordance with the provisions stipulated in the Trust Instrument.  
2. The Trust Instrument must specify the person who has the right to determine the Trustee's fees or to modify them by increase or decrease at any time after the creation of 
the Trust. In the event that the Trust Instrument does not specify the Trustee's fees or a 
mechanism for determining them, the fees may be determined or modified with the written consent of all Beneficiaries, or in the absence of such consent, by virtue of a 
decision issued by the Competent Court at the request of any interested party.  
3. It is permissible to stipulate in the Trust Instrument that the Trustee's fees are determined on the basis of a percentage of what the Trust benefits achieve during the 
year, after deducting all expenses and fees, or in accordance with any other mechanism 
specified in the Trust Instrument.  
4. It is permissible to stipulate in the Trust Instrument that the Trustee has the right to recover the reasonable expenses he incurs due to the management of the Trust directly 
from the Trust Property. If the Trust Ins trument does not stipulate that, the Trustee may 
submit a request to the Competent Court to issue a decision to dispose of the Trust 
Property to obtain compensation for those expenses.

Article (21)  
Authorities and Powers of Trustee  
1. The Tr ustee shall have all authorities and powers over the Trust Property, and he may 
manage, use and dispose of it in all types of dispositions, and he may open bank  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  18 
 accounts in the name of the Trust, unless this right is restricted by the Trust Instrument 
or the provisions of this Law by Decree.  
2. If the Trust Instrument includes a provision restricting the Trustee from disposing of the Trust Property, the Competent Court may, in the event of the death of the Settlor and the Trust Protector or their loss of legal capacity, at the request of the Trustee or the 
Beneficiary, grant the Trustee the authority to dispose of the Trust Property, and in this 
case this is required to be linked to the extent that achieves the purpose of the Trust.  
3. It is permissible to expressly stipulate in the Trust Instrument that the Trustee is granted 
discretionary authority regarding determining each Beneficiary's share of the dividends resulting from the Trust Property and the manner and time of its distribution.  
4. If the im plementation of any of the terms of the Trust Instrument or any of the 
provisions of this Law by Decree requires amending the authorities and powers of the 
Trustee, the Trustee may, in the event of the death or loss of legal capacity of the Settlor 
and Tru st Protector, submit a request to the Competent Court to issue a decision, and the 
Competent Court may issue the decision that achieves the purpose of the Trust.  
5. In the event that a legal person is appointed as Trustee, the decisions related to the management of the Trust shall be taken in accordance with the Trust Instrument. If the 
Trust Instrument does not specify who has the authority to make such decisions, such decisions shall be taken by the authority competent to manage the legal person, such as the board of directors or its equivalent, as determined by its articles of association or the 
applicable laws.

Article (22)  
Delegation of Trustee's Authorities and Powers  
1. The Trustee may not authorise another person to carry out any of his duties, whether 
that person is also a Trustee or another party, except in any of the following cases:  
a. If the Trust Instrument stipulates that.  
b. If all Beneficiaries consent to that and the Trust Instrument allows them the same.  
c. If the authorisation is necessary to enable the Trustee to perform his duties.  
d. If the Competent Court approves the authorisation.   
Federal Decree by Law No. (31) of 2023 On Concerning Trust  19 
 e. If one of the Trustees is temporarily unable to exercise his duties due to an 
emergency, he may authorise one of the other Trustees to carry out those duties.  
f. If the Trustee is a Professional Legal Person and has a board of directors or something similar, and he authorises any person to carry out the duties of the Trustee; in which case, the Trustee and its board of directors shall be jointly 
responsible for any breach of the Trust Instrument by the authorised person.  
2. The Trustee may not authorise  another person to perform any tasks beyond those 
assigned thereto by virtue of the Trust Instrument or the provisions of this Law by 
Decree.  
3. The scope and conditions of the authorisation must be determined in accordance with 
achieving the interests, purposes and conditions of the Trust, and the person authorised 
by the Trustee must fulfil the specific and required obligations and exercise the 
authorities and powers of the Trustee in a manner that achieves the purpose of the Trust.  
4. If the Trust In strument allows the Trustee to authorise any person on his behalf without 
specifying the authorised person, the Trustee shall only be liable personally for his error 
in choosing or his error in the instructions he issued to this authorised person.  
5. The  provisions stipulated in this Law by Decree relating to the responsibility of the 
Trustee for his actions shall apply to the person authorised in accordance with this 
Article.  
6. If the Trustee authorises others to carry out some of his duties in violation of the terms of 
the Trust Instrument, he shall be responsible for the work of the authorised person as if 
this work had been issued by him personally; and in this case, the Trust ee and the 
authorised person shall be jointly responsible for the duties of the Trustee.

Article (23)  
Obligations of the Trustee 
The Trustee shall:  
1. Cooperate with the Settlor with regard to transferring authorities and powers over the Trust Property t o him, taking into account the period specified in Clause (1) of Article 
(11) of this Law by Decree.   
Federal Decree by Law No. (31) of 2023 On Concerning Trust  20 
 2. Perform his obligations and exercise his authorities and powers in accordance with the 
terms of the Trust Instrument and the provisions of this Law by  Decree.  
3. Exercise due diligence in exercising his authorities, powers and duties, preserve the Trust Property and their value, and dispose thereof in accordance with the terms of the Trust Instrument and the provisions of this Law by Decree.  
4. Exercise his duties to achieve the purpose of the Trust, and he must preserve, develop 
and dispose of the Trust Property in a way that benefits the purpose of the Trust.  
5. Carry out all procedures and take all reasonable legal and physical measures to c ontrol 
investment operations, preserve and protect the Trust Property, and protect any rights 
related thereto. For this purpose, the Trustee may appoint any advisors, experts, 
technicians, lawyers, financial, economic, and legal advisors and agents as he d eems 
appropriate to help him in performing his duties; and he may determine and pay the fees 
of each of them, and shall have any other right stipulated in the Trust Instrument in this 
regard.  
6. Represent the interests of the Trust and any legal requirem ents related to the Trust 
before all authorities, including any authority competent to record any transaction involving the Trust Property.  
7. Exercise his duties to achieve the purpose of the Trust through preserving, developing and disposing of the Tru st Property in a way that achieves the purpose of the Trust, 
subject to what the Trust Instrument.  
8. Disclose his capacity as a Trustee, and that the funds that are the subject of his actions are Trust funds when he carries out any contract or transaction related to the Trust.  
9. Keep a record of all the Trust Property, and keep the Trust Property independently from 
his personal property and any other property that he manages, enabling him to identify 
it from his property or any other property.  
10. Keep, maintain and disclose books and records in accordance with the provisions of this 
Law by Decree.  
11. Notify the Settlor or Beneficiaries in the event of the death or loss of legal capacity of the Settlor and the Trust Protector if he becomes aware  of the existence of any matter that 
would materially affect the value of the Trust Property or its investments.   
Federal Decree by Law No. (31) of 2023 On Concerning Trust  21 
 12. Disclose in writing any direct or indirect personal interest that conflicts with the 
requirements of his exercise of the duties of the T rustee. Disclosure shall be made 
immediately upon his knowledge of such interest to the Settlor, the Trust Protector, the remaining Trustees and the Beneficiaries, and in the event of the death of the creator and Trust Protector or their loss of legal capacity, to the Competent Court; and in this case, 
the Trustee must refrain from participating in any decision regarding any action that 
might lead to a conflict of interest. In the event of a single Trustee, the Settlor or the Trust 
Protector may, in the eve nt of the death of the Settlor or loss of capacity, appoint a 
Profession Trustee to carry out transactions affected by conflict of interest, subject to the 
provisions stipulated in the Trust Instrument.  
13. Answer any inquiry directed thereto by the Set tlor or the Trust Protector in the event of 
the death or loss of legal capacity of the Settlor, or the remaining Trustees, if multiple, or 
any interested party, regarding the report issued thereby in accordance with the 
provisions of article (25) of this L aw by Decree.  
14. Perform any other obligations stipulated in this Law by Decree.

Article (24)  
Restrictions on Trustee  
Without prejudice to the provisions of the Trust Instrument, the Trustee may not:  
1. Use the Trust Property for his benefit and personal benefit, or unlawfully achieve 
financial gains as a result of carrying out his obligations.  
2. Cause or allow others to use, benefit from, or make financial gains from the Trust Property, directly or in directly, in violation of the Trust Instrument.  
3. Exploit the powers of the Trustee to harm the interests of the Beneficiaries or the purpose of the Trust.  
4. Charge the Trust with any expenses other than the reasonable expenses necessary to 
manage the Trust.  
  
   
Federal Decree by Law No. (31) of 2023 On Concerning Trust  22

Article (25) 
Reporting  
The Trust Instrument must stipulate the Trustee's obligation to prepare a report specifying 
the data and information that must be included, and the persons to whom the report shall 
be submitted, provided that the report indicates the market value of the Trust Property, any 
circumstances or facts that would affect this value by increase or decrease, and any matters 
or facts that may affect the rights of the Beneficiary or the terms of management or 
investment of the Trust Prop erty, as well as an appendix of the costs and expenses paid for 
the management of the Trust or the preservation of its property.

Article (26) 
Record Keeping and Disclosure  
1. The Trustee must keep and maintain paper and electronic accounting books and records 
audited by an independent auditor of the Trust, including the following:  
a. All transfers of property, debts, acquisitions, disbursements and other transactions 
relating  to the Trust and Trust Property.  
b. Complete and accurate information about the condition and value of Trust Property.  
c. The financial status of the Trust periodically, every three (3) months, or according to 
the duration of the Trust, whichever is less.  
2. The Trustee must maintain the Trust accounts and records separately from the accounts 
and records of any other work he carries out.  
3. The Trustee is obligated to maintain all accounting records by any means possible for a 
period of three (3) years, and if the Trustee is a legal person, this period shall be ten (10) years starting as of the year in which the Trust expires or is terminated . 
4. It is permissible to stipulate in the Trust Instrument that the Trustee is obligated to 
appoint an external auditor for the Trust. In the absence of such a provision in the Trust 
Instrument, the Competent Court may appoint an external auditor for th e Trust if that 
achieves the purpose of the Trust, and the Competent Court may determine the necessary expenses for that.  
5. The Trustee is obligated to keep a record that includes the following information:   
Federal Decree by Law No. (31) of 2023 On Concerning Trust  23 
 a. The full name, address, and nationality o f the Trustee, Settlor, Beneficiary, and Trust 
Protector.  
b. The date on which the Trustee is appointed, the date he stops working, and any 
conditions or restrictions on the authorities and powers of the Trustee.  
c. A copy of the Trust Instrument provided by the Settlor.  
d. A copy of the Trust Validity Certificate and registration certificate provided by the 
Settlor.  
6. Unless the Trust Instrument stipulates otherwise, any interested party may request access to the Trust accounts, and the Trustee must provide them with an annual audited 
account of the Trust Property within three (3) months as of the beginning of the fiscal 
year following the date of the creation of the Trust, unless the Trust Instrument or 
subsequent agreement stipulates or the nature of dealing in Trust Property requires 
otherwise.  
7. Unless the Trust Instrument stipulates otherwise, the Trustee may not  disclose the 
reason for making any of his decisions under his authorities and powers, or the 
implementation of a duty assigned thereto, or the method of exercising those authorities 
and powers except to the Settlor, the Trust Protector, or to the remainin g of the Trustees, 
if multiple.

Article (27)  
Independence of Trustee  
The Trustee shall exercise his authorities and powers specified in the Trust Instrument and 
the provisions of this Law by Decree without interference or direction from the Settlor, 
unless the Trust Instrument stipulates otherwise.

Article (28)  
 Responsibilit y of Trustee  
1. The Trustee shall bear responsibility for any loss or destruction of the value of the Trust 
Property  as a result of his breach of the terms of the Trust Instrument, or due to his 
intentional error, or as a result of his gross negligence in managing the Trust. If more  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  24 
 than one Trustee participates in breaching the Trust, the responsibility shall be joint 
among them.  
2. If the Trustee disposes of the Trust Property in a manner that conflicts with the requirements of good faith and the disposee is aware of that, the disposition shall be null, and the two parties must restore the situation to what it was be fore the disposition 
was made if that is possible.  
3. If the Trust Instrument stipulates the sale of any part of the Trust Property within a certain period, and the Trustee extends that period for a reason he deems in the interest 
of the Beneficiary, the  burden of the Trustee falls on the Trustee to prove that extending 
the term was in the interest of the Beneficiary; otherwise, he must compensate to the 
extent of the decrease in the value of the sale or damage incurred by the Beneficiary.  
4. The Truste e shall be liable for any damage to the Trust caused thereby as a result of 
fraud, bad faith or grave negligence.  
5. If the Trust Property are damaged for any of the reasons stipulated in Clause (1) of this 
Article, the Trustee is obligated to compensate . 
6. The Competent Court may compensate the Trustee from the Trust Property for any damages incurred thereby as a result of his work as Trustee.  
7. The Professional Legal Person, if it is appointed as a Trustee or any person, board, director, or board of directors representing it, shall bear the full responsibility and obligations of the appointed Professional Trustee by virtue of this Law by Decree.  
8. Lawsuits shall be filed by or against the Trust in the name of the Trust and the Trustee in 
its capacity as Trustee.  
9. The Trustee shall represent the Trust before the courts, government agencies, and third parties. In the event that a Professional Legal Person is appointed as Trustee, and this 
person has a board of directors or something similar, the board or someone authorised 
by the board shall represent the Trust before courts, government agencies, or third 
parties.  
  
 
  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  25

Article (29)  
Cases of Non -Res ponsibility of Trustee  
1. Any provision of the Trust that exempts the Trustee in whole or in part from personal 
responsibility resulting from fraud, bad faith, grave negligence, or wilful error shall be 
void.  
2. Without prejudice to any of the provisions of this Law by Decree, the Trustee shall not be held responsible for any breach of his duties towards the Trust in any of the following 
cases:  
a. If the breach has occurred by any other person before the Trustee was appointed as 
Trustee.  
b. If the breach is caused by another Trustee in the event of multiple Trustees, unless 
the primary Trustee concerned has contributed to the breach, or has known of the 
occurrence of the breach by the other Trustee and has not taken legal measures to stop the breach in a timely manner.  
c. If he acts in good faith, honestly, and reasonably in accordance with the Trust 
Instrument and the provisions of this Law by D ecree.  
d. If the Trust Instrument stipulates that the Trustee is exempted from liability or compensation as a result of breach of the Trust; however, the previous exemption 
condition shall not be taken into account if the breach attributed to the Trustee  
involves fraud, bad faith, grave, or wilful error.  
e. Any other cases stipulated in the Trust Instrument or any of the legislation in force in 
the State.  
 
Chapter Five  
Beneficiary

Article (30)  
 Determining the Beneficiary  
1. The Beneficiary of the Trust must be identified either through his name or capacity, or by reference to his current or future kinship with the Settlor, or by stipulating in the Trust  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  26 
 Instrument the mechanism for identifying the Beneficiary of the Trust.  
2. If the Beneficiary is a natural person, he must be identified by name, or by affiliation to a 
group or legal person, the class, degree of kinship, or by his connection to a specific 
person, whether that person was alive when the Trust was created or not , or by his 
connection to a class with certain characteristics that may be determined in the future.  
3. It is permissible to stipulate in the Trust Instrument a specification of different shares for the Beneficiaries of the Trust benefits.  
4. It is per missible to stipulate in the Trust Instrument specific conditions to the 
Beneficiary's entitlement to or exclusion thereof from obtaining the Trust Dividends, whether temporarily or permanently.  
5. The Beneficiary may not claim the Trustee for any of his  rights to the Trust Property that 
have not been added to the Trust Property.  
6. If the Trust Instrument does not determine the Beneficiary or the mechanism for determining the Beneficiary, the Trust shall be void.  
7. The Settlor or Trustee may be a Beneficiary.

Article (31)  
The Beneficiary's Right to Trust Dividends  
1. The Beneficiary shall have the right to receive the Trust Dividends, and he has the right to demand that the Trustee fulfil the obligations stipulated in the Trust Instrument and 
the provisions of this Law by Decree and to preserve the rights of the Beneficiary related 
to the Trust Property with any person, whether that person knows or is supposed to 
know about the Trust.  
2. If the Trust Instrument specifies the rights of the Beneficiaries without specifying the share of each of them, the Dividends of the  Trust will be divided equally among them, 
taking into account any restrictions contained therein in the Trust Instrument and the 
provisions of this Law by Decree.  
3. The Beneficiary's share of the Dividends of the Trust after he has been entitled theret o 
and after it has been paid it thereto is considered part of his financial liability, taking into account any restrictions in this regard in the Trust Instrument and the provisions of this  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  27 
 Law by Decree.  
4. If there are multiple or successive Beneficiar ies and one of them has the right to use or 
exploit any part of the Trust Property in accordance with the terms of the Trust 
Instrument, his use or exploitation thereof must be in a way that does not result in the destruction of the Trust Property or causing a permanent defect thereto, and if it 
becomes clear to the Trustee that the Beneficiary does not comply with that, he must 
take the necessary measures to prevent this from occurring or from continuing to occur.  
5. It is permissible to stipulate in the Trust Instrument to deprive the Beneficiary of his 
share of the Dividends of the Trust or to suspend it for a limited period, or until a certain 
event occurs, if the Beneficiary becomes insolvent or bankrupt or his pro perty is subject 
to precautionary attachment for the benefit of his creditors, taking into account any restrictions in this regard in the Trust Instrument and the provisions of this Law by 
Decree.  
6. It is permissible to stipulate in the Trust Instrument  that Beneficiary's share of the 
Dividends of the Trust may be collected and delivered to him after a certain period or 
after a certain event occurs. If the Trust Instrument does not stipulate the foregoing, the 
Trustee may request the Competent Court to a llow the collection of the Beneficiary's 
share if that achieves the purpose of the Trust.  
7. The right to benefit from and collect the Dividends of the Trust may be related to a legitimate, specific and realisable event or cause stipulated in the Trust I nstrument.

Article (32)  
The Beneficiary Assignment of His Right to the Dividends of the Trust  
1. The Beneficiary who has reached the age of puberty or the legal representative of the incapacitated Beneficiary may refuse or give up, for the benefit of t he Trust, all or part of 
his rights arising by virtue of the Trust Instrument or the provisions of this Law by Decree, even if he has previously received some of them, and the assignment of the right may be for a specific period or a permanent, and it is n ot permissible to retract it if the 
Beneficiary completely assigns his right.  
2. If the Trust Instrument stipulates a specific period for the Beneficiary to accept the Trust  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  28 
 made for his benefit and that period passes without accepting it, this is considered a 
rejection of the Trust by the Beneficiary who has reached the age of puberty . 
3. If the Beneficiary rejects the Dividends accruing to his benefit from the Trust, the property received from the Dividends of the Trust shall return to the Settlor, unless the Trust Instrument stipulates otherwise.  
4. The Beneficiary's assignment o f his right to the Dividends of the Trust must be in writing 
and submitted to the Settlor or the Trustee in accordance with the terms of the Trust Instrument, and the Competent Authority must be notified. The representative of the 
incapacitated Beneficiary  may also submit a request to the Competent Court to approve 
this Beneficiary's assignment of his right to the Dividends of the Trust.

Article (33)  
The Beneficiary's Creditors Rights to Trust Property  
Subject to the applicable legislation and the provision s of the Trust Instrument, the rights of 
third party creditors of the Beneficiary are limited to the Beneficiary's share of the Trust Dividends in accordance with what is stipulated in the Trust Instrument and do not extend 
to any other part of the Trust P roperty or any right against the Settlor, the Trust Protector, or 
the Trustee.  
  
Chapter Six 
Trust Protector

Article (34)  
Appointment of Trust Protector  
1. The Settlor may appoint a Trust Protector or stipulate in the Trust Instrument the method of appointing him, specify his powers, and grant him the right to review the performance 
of the Trustee and demand that he carries out his duties and prosecute him if  the Trustee 
does not commit to his duties and perform his duties. It is also permissible to stipulate in 
the Trust Instrument that the Trust Protector is granted the power to appoint a Trustee or 
add another Trustee, and dismiss the appointed Trustee and appoint a new Trustee to  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  29 
 replace him, and determine the Trustee's fees or other powers of the Trust Protector.  
2. It is permissible to stipulate in the Trust Instrument that the Trustee obtains the approval 
of the Trust Protector when exercising any of h is authorities and powers. If the Trust 
Instrument stipulates this, the Trustee will not be responsible for any losses resulting 
from his exercise of those authorities or powers.  
3. The Settlor may be appointed as the Trust Protector, but the Trustee may  not be its 
Protector.  
4. The Trust Protector shall not be considered a Trustee merely by exercising the powers 
stipulated in the Trust Instrument or this Law by Decree.  
5. The Trust Protector shall be granted fees for providing his services and shall be 
compensated for any related expenses incurred while exercising his powers in 
accordance with the provisions of the Trust Instrument. If the Trust Instrument does not 
specify the value of these fees or compensation, the Trust Protector may request the 
Competent Court to determine a fair amount for the fees and expenses incurred thereby.

Article (35)  
Trust Protector Restrictions 
Subject to the provisions of this Law by Decree and the Trust Instrument, the Trust Protector 
is prohibited from doing any of the following:  
1. Putting himself in any position that conflicts with the requirements of his duties.  
2. Unlawfully benefiting or making financial gains, directly or indirectly, because of his 
appointment as Trust Protector.  
3. Allowing or causing any other person to be directly or indirectly enriched by the Trust, in 
violation of the Trust Instrument.  
4. Concluding deals with the Trustee for his own account, or any transac tions related to the 
Trust Property that lead to his benefit or the Trustee's benefit, directly or indirectly.

Article (36)  
Expiry of Trust Protector's Powers  
1. The Trust Protector may resign from his position, pursuant to a written notice submitted  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  30 
 to the Settlor or to the person who has the right to appoint him in accordance with what 
the Trust Instrument specifies. The resignation shall be effective as of the d ate of its 
submission, unless the Trust Instrument stipulates otherwise.  
2. If the Trust Instrument does not specify the person who has the right to accept the resignation of the Trust Protector and appoint a replacement, the resignation request 
shall be  submitted to the Competent Court with a copy to the Trustee, and the 
Competent Court may accept or reject the resignation according to the circumstances 
and interest of the Trust and appoint a new Trust Protector.  
3. Subject to the provisions of the Tru st Instrument, the Trust Protector loses his capacity as 
a Trust Protector if any of the following occurs:  
a. If he is dismissed from his position in accordance with the provisions of the Trust Instrument, and if the Trust Instrument does not stipulate t he conditions for the 
dismissal of the Trust Protector, then his dismissal shall be pursuant to a decision issued by the Competent Court at the request of an interested party.  
b. If his resignation is accepted.  
c. If a condition in the contract that causes him to be dismissed from his position or lose his powers is fulfilled.  
d. If he accepts his appointment as Trustee.  
  
Chapter Seven  
Competent Court

Article (37)  
Authorities of Competent court  
1. The Competent Court shall have jurisdiction over matters related to the Trust, as stipulated in this Law by Decree.  
2. The Competent Court may, upon the request of any interested party, decide on matters related to the Trust that are not expressly stipulated in this Law by Decree or in the Trust Instrument.  
   
Federal Decree by Law No. (31) of 2023 On Concerning Trust  31 
 Chapter Eight  
Withdrawal from, Amendment, Nullification and Termination of the Trust

Article (38)  
Withdrawal from the Trust and Amendment of the Trust Instrument  
1. Subject to the provisions of Clause (2) of this Article, the Settlor or his authorised 
representative during his lifetime may withdraw from the Trust in whole or in part, or 
amend the Trust Instrument by notifying both the Competent Authority and the Trust ee 
of such amendment or withdrawal, provided that the right of the Settlor to withdrawal 
or amendment is explicitly stated in the Trust Instrument, and any amendment to the 
terms of the Trust Instrument or withdrawal from the Trust does not affect any legitimate 
act carried out by the Trustee relating to the Trust before he receives the notification to 
amend the Trust Instrument or withdraw from the Trust.  
2. It is not permissible to withdraw from the Trust or any part thereof if the Trust is used to guar antee rights entitled to others.

Article (39)  
Nullification of Trust  
1. The Competent Court may, at the request of any interested party or the Law by Decree enforcement authorities, as the case may be, may nullify the Trust in any of the following 
cases:  
a. If the Court decides that the creation of the Trust was the result of forgery or was 
carried out under the influence of coercion or fault or was carried out by means of 
fraud or deception, or based on incorrect data in violation of the Trust Instrumen t 
and the provisions of this Law by Decree. Coercion, fault, fraud or deception is 
refuted if the Trust Instrument is registered in the Record with the Competent 
Authority after the issuance of The Trust Validity Certificate, unless evidence is 
presented t o the court proving otherwise.  
b. If it is proven that the purpose of the Trust is the evasion of the Settlor from paying debts, taxes, or any other financial obligations that must be paid.   
Federal Decree by Law No. (31) of 2023 On Concerning Trust  32 
 c. If it is proven that the purpose of the Trust does not comply with the provisions 
stipulated in the Trust Instrument, and the Settlor, with the knowledge of the Trustee, 
falsely tells the Competent Authority or any other party that the ownership of the 
Trust Property has been transferred to the Trust, while in fact the Settlor retains 
ownership of this property.  
2. In the event that a ruling is issued to nullify the Trust by the Competent Court, the Trust Property shall be transferred to the Settlor or to  his heirs in the event of his death, 
without prejudice to the rights of bona fide third parties.

Article (40)  
End of Trust  
1. The Trust shall end in any of the following cases:  
a. Withdrawal from the Trust or part thereof by the Settlor or whomever he  delegates 
this authority thereto during his lifetime if the Trust Instrument stipulates that this is permissible.  
b. Expiry of Trust Period.  
c. Achieving the purpose of the Trust when necessary.  
d. Based on a written request submitted to the Trustee from all current Beneficiaries if 
permitted in the Trust Instrument, and provided that the Beneficiaries have the 
eligibility of performance and have full right to the Trust Property.  
e. If the Settlor or Trustee and Trust Protector (if any) decide that continuation of the 
Trust is no longer feasible to achieve the purpose of the Trust and would be 
financially burdensome on the Trust Property.  
2. The Trust may be terminated by a decision of the Compete nt Court, at the request of any 
interested party, in any of the following cases:  
a. If the Trust Property is insufficient to cover the costs necessary for the continuation 
of the Trust.  
b. If there is no Beneficiary or any person deemed to be a Benefic iary of the Trust 
according to the terms of the Trust Instrument.  
   
Federal Decree by Law No. (31) of 2023 On Concerning Trust  33

Article (41) 
Consequences of End of the Trust  
1. When it ends, the Property of the Trust shall be disposed of accordin g to the method of 
disposal stipulated in the Trust Instrument. If the Trust Instrument does not specify the 
method of disposal, the Trust Property shall be returned to the Settlor if he is alive, or to 
his heirs if it ends after his death.  
2. The Truste e must request the Competent Court to issue a decision to terminate the Trust 
in any of the following cases:  
a. If the Trust Instrument does not stipulate the method of distributing the Trust Property.  
b. If the Trustee is unable to distribute the Trus t Property according to the terms of the 
Trust Instrument due to the absence of a Beneficiary, or if it is not possible to identify 
a Beneficiary, or when the purpose of the Trust is achieved.  
3. The Trustee must pay all the financial obligations of the Trust before distributing the 
Trust Property, and he may keep part of the Trust Property in order to sell it, or obtain 
appropriate guarantees, to cover any expenses he bears or may bear in the future related 
to the management of the Trust, or to guarantee  any present, future, conditional or 
unconditional liabilities that may arise from the Trust.  
4. If the right of one of the Beneficiaries to the Dividends of the T rust expires, the effects of 
the termination apply to that Beneficiary without prejudice to the rights of the remaining 
Beneficiaries.  
 
Chapter Nine  
Approval and Registration of Trust

Article (42)  
Approval of Trust  
1. The Trust Instrument shall be approved and registered by the Competent Authority in 
the relevant Emirate in accordance with the mechanism issued by the Cabinet, based on 
the Minister's proposal, to approve and register the Trust Instrument.   
Federal Decree by Law No. (31) of 2023 On Concerning Trust  34 
 2. The Competent Authority shall:  
a. Review the structure, terms and conditions of the Trust Instrument presented to it by 
the Settlor, before completing the creation process, with the intention of expressing 
an opinion on the extent to which it is compatible with the provisions of this Law b y 
Decree and does not conflict with the public order in the State.  
b. Issue the Trust Validity Certificate after verifying that the Trust Instrument is 
compatible with the provisions of this Law by Decree, in preparation for registering 
the Trust Instrument and any subsequent amendments thereto in accordance with 
article (44 ) of this Law by Decree.  
3. The Trust shall be deemed to have been properly created in accordance with the 
provisions of this Law by Decree upon the adoption of the Trust Instrument and the 
completion of the Initial Registration procedures.

Article (43)  
Record  
1. Subject to the provisions of Clause (2) of this Article, a record shall be established by a decision of the Competent Authority in each Emirate and maintained by the Competent 
Authority in that Emirate.  
2. The Cabinet shall issue, based on the Minister's proposal, a decision relating to the 
Record specifying the following:  
a. Framework of the registration procedures.  
b. Data to be included in the Record.  
c. Documents that must be issued upon completion of registration procedures.  
d. Any other matters related to the establishment and management of the Record.

Article (44)  
Registration of Trust Instrument  
1. After issuing the Trust Validity Certificate in accordance with Clause (2) of article (42) of 
this Law by Decree, the Settlor m ust submit a request to the Competent Authority to 
register the Trust Instrument in the Record, and provide all the information necessary for  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  35 
 this registration and requested by the Competent Authority.  
2. The effects of the Trust Instrument shall take ef fect in accordance with the provisions of 
this Law by Decree as soon as the Initial Registration is completed, and any amendment 
to the Trust Instrument shall have its effects in accordance with the provisions of this Law by Decree once the procedures for registering that amendment in the Record are 
completed.  
3. The Competent Authority shall complete the Initial Registration after receiving and reviewing the following:  
a. The Trust Validity Certificate issued by the Competent Authority in accordance with article (42) of this Law by Decree.  
b. The Settlor signing the Trust Instrument before the Competent Authority.  
4. The Competent Authority shall issue a registration ce rtificate stating that the Trust 
Instrument has been registered in the Record. This registration certificate and the registered Trust Instrument shall be considered an official document in accordance with the provisions of the local and federal legislation  in force in the State and shall be 
evidence of proof unless it is proven that either of them has been forged by the legally prescribed methods.  
5. The provisions of Clause (3) of this Article apply to amendments to the Trust Instrument.

Article (45)  
Reg istration of Trust Property  
1. Any transactions occurring on Trust Property in the name of the Trust shall be entered in 
the official records of this property in accordance with the federal or local legislation in 
force in the State.  
2. Subject to the terms of the Trust Instrument, the Trustee shall have all authorities and 
powers over the Trust Property, including, but not limited to, the following:  
a. Any power to transfer ownership of Trust Property according to the Trust Instrument.  
b. The authority to sign documents relating to Trust Property, without the need for the 
consent of the Settlor or Beneficiary.  
   
Federal Decree by Law No. (31) of 2023 On Concerning Trust  36

Article (46)  
Accessing the Record and Obtaining a Certified Certificate thereof  
1. Subject to the relevant provisions of the  Trust Instrument, the Settlor, the Trustee, and 
the Trust Protector, as the case may be, have the right to view the Record related to the 
Trust and obtain from the Competent Authority a certified certificate of the data or 
information recorded in the Reco rd. 
2. It is not permissible to disclose any data or information entered in the Record in cases 
other than those stipulated in Clause (1) of this Article, unless this is in implementation 
of an order issued by the Competent Court and in a manner that doe s not conflict with 
the provisions of the Trust Instrument.

Article (47)  
Confidentiality  
1. The Trustee is prohibited from disclosing to any person any data, information or 
documents related to the Trust or its accounts except in any of the following cases:  
a. If the disclosure is within the limits stipulated in the Trust Instrument or this Law  by 
Decree.  
b. If the nature of the transactions related to the Trust requires disclosure.  
c. Based on an order issued by the Competent Court.  
2. The Trust Instrument may stipulate conditions and controls that specify the scope of the 
Beneficiaries o r the Trust holder's access to specific details in the Trust Instrument, 
including details related to the method of distributing the benefits of the Trust to the 
Beneficiaries, and the controls for the Trustee to make his decisions.

Article (48)  
Respect of the Trust  
1. The Trust is deemed to have been created pursuant to the Trust Instrument immediately 
upon completion of the Initial Registration.  
2. A Trust created in one of the Emirates of the State shall be respected by all other  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  37 
 emirates, regardless of where the Trust Property are located.  
 
Chapter Ten   
Penalties

Article (49)  
Applying the severer penalty  
The penalties stipulated in this Law by Decree sh all not prejudice any severer penalty 
stipulated by any other law.

Article (50)  
Penalty for Harming the Trust or Settlor and Violating Certain Provisions of 
this Law by Decree  
Without prejudice to civil liability, a penalty of imprisonment and/or a fine no t exceeding 
one million (1,000,000) AED shall be imposed on anyone who causes damage to the Trust, 
the Settlor, or any Beneficiary as a result of wilfully violating the provisions of clauses (2) 
and (4) of article (19), Clause (1) of article (22), Clauses (1) and (12) of article (23), article (24), Clauses (1), (2), (3), and (6) of article (26), article (35), or Clause (1) of article (47), of 
this Law by Decree.

Article (51)  
Penalty for Impersonating the Trustee  
Without prejudice to civil liability, a penalty of imprisonment and/or a fine not exceeding 
five thousand (500,000) AED shall be imposed on anyone who acts without a capacity or 
presents himself as a Trustee and exercises his powers in this capacity, and h e shall be liable 
for the acts he committed while impersonating the Trustee.  
  
 
 
  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  38 
 Chapter Eleven  
Supplementary and Final Provisions

Article (52)  
Non -Hearing of the Lawsuit  
1. The lawsuit filed by any interested party against the Trustee regarding the Trustee's 
breach of his obligations against that Beneficiary shall not be heard after three (3) years 
have passed as of the date of his receipt of the Trust's external auditor's report or as of 
the date on which he learned of the breach of the Trust, whichever is earlier.  
2. In cases where the Beneficiary is a minor, the calculation of the period referred to in 
Clause (1) of this Article starts as of the date on which the minor reaches the age of 
puberty.  
3. The lawsuit of the Trustee against another Trustee, in th e event of multiple Trustees, or 
against any former Trustee, for breach of the Trust shall not be heard after three (3) years 
have passed as of the date of expiration of his appointment as Trustee in accordance 
with the provisions of this Law by Decree.  
4. No other lawsuit against the Trustee for any breach of the Trust shall be heard after 
fifteen (15) years have passed as of the date of breach of the Trust.  
5. As an exception to the provisions of the Clauses of this Article, the expiry of the periods specified in this Article shall not prevent the Competent Court from:  
a. Hearing the lawsuit case of fraud or deception against the Trustee, if the fraud is 
commi tted by him or by a third party and the Trustee is aware of it when the 
disposition has been made or if he must have inevitably known about it.  
b. Hearing the lawsuit to recover the Trust Property that he transferred to himself or to 
others in violation of the terms of the Trust Instrument or the provisions of this Law 
by Decree.

Article (53)  
Resolutions Necessary to Implement the Provisions of this Resolution.  
The Cabinet shall, upon the presentation of the Minister, issue the Resolutions necessary to  
Federal Decree by Law No. (31) of 2023 On Concerning Trust  39 
 implement the provisions of this Resolution.

Article (54)  
Repeals  
1. Federal Decree by Law No. (19) of 2020 Concerning Trust shall be repealed, and the 
resolutions issued in implementation thereof shall continue to be in force to the extent 
that they do not conflict with the provisions of this Law by Decree, until resolutions that 
replace them are issued in accordance with the provisions of this Law by Decree.  
2. Any provision that violates or contrad icts the provisions of this Law by Decree shall be 
repealed.

Article (55)  
Publication and Entry Into Force of Law by Decree  
This Law by Decree shall be published in the Official Gazette and shall enter into force as of 
the day following the date of its publication.  
  
 
 
  
 
Mohammed Bin Zayed Al Nahyan  
President of the United Arab Emirates  
 
Issued by us at the Palace of the Presidency in Abu Dhabi  on: 
25 September 2023 AD . 
Corresponding to: 10 Rabi' I 1445 A.H.