Asset Structuring and Ownership Frameworks
Family businesses and private clients often build their asset structures over time, reflecting the organic growth of the business and the accumulation of investments across different sectors and jurisdictions.
While these structures may function effectively in stable conditions, periods of uncertainty can highlight areas where ownership frameworks may benefit from review.
In many cases, assets are held across multiple entities, including operating companies, holding companies and investment vehicles. These structures may span several jurisdictions, each with its own legal and regulatory considerations. Over time, this can result in fragmented ownership arrangements that may be more complex than originally intended.
Reviewing how assets are structured and held can assist families in ensuring that their arrangements remain aligned with long-term objectives.
Key considerations include:
- whether ownership structures provide clarity in relation to control and decision-making
- whether assets are appropriately segregated from a risk management perspective
- whether structures allow for efficient management of investments across jurisdictions
- whether existing arrangements support long-term succession planning
In the UAE, families may consider the use of holding structures or foundations to centralise ownership and provide a more coherent governance framework. These structures can assist in consolidating control while also facilitating long-term planning.
The objective of such arrangements is typically not to introduce additional complexity, but to ensure that ownership structures are fit for purpose and aligned with the family’s strategic priorities.
Asset structuring may also intersect with regulatory and compliance considerations, particularly where assets are held across multiple jurisdictions. Ensuring that structures remain compliant with applicable laws and reporting requirements is an important part of maintaining operational continuity.
In addition, families may wish to consider whether their structures allow for sufficient flexibility. As businesses evolve and new investments are made, the ability to adapt ownership arrangements can be an important factor in long-term sustainability.
For internationally mobile families, it is also relevant to ensure that structures are coordinated across jurisdictions. Differences in legal frameworks can create challenges if ownership arrangements are not aligned or clearly documented.
A periodic review of asset structures can therefore help identify areas where consolidation, simplification or restructuring may be beneficial.
CVML advises family businesses and private clients on asset structuring, corporate governance and cross-border ownership arrangements in the UAE.
If you or your organisation would like to discuss any aspect of this guidance note further, please don’t hesitate to reach out to your usual CVML contact, or email:
Perla Baaklini, Associate, CVML (p.baaklini@cvml.ae)