In a matter of days, the COVID-19 Pandemic has had a dramatic effect on regional businesses.
The slowdown is palatable across most industries. Delayed payments will inevitably put extraordinary stress on cash flow reserves and businesses as a whole.
Many entrepreneurs are being forced to take drastic risk-mitigating measures in an attempt to weather the storm, hoping for better days. Waves of redundancy have already started.
But what if these steps are insufficient or a turnaround is slow to come?
Businesses will be forced to shut down, opening the door to creditors’ attacks. This risk is compounded, where personal guarantees have been provided. More than their business, entrepreneurs may lose it all. In the current environment, nobody is safe.
Earlier this year, M/HQ raised awareness about the importance of regularly revaluating one’s corporate structure as well as planning ahead and protecting what has been built.
It is not too late to protect high-value assets against attacks. And UAE Foundations are the answer!
A Foundation is an independent legal entity with a distinct personality, separate from its founder. Compatible with all UAE asset classes (real estate, shares, portfolios), foundations enable the entrepreneur and his family to consolidate and keep control over income-generating assets and investments while protecting them from potential threats – i.e., creditors attacks, probate.
Remarkably, domestic UAE Foundations are equally effective for Muslims and non-Muslims.
ADGM/DIFC Foundations have gained substantial momentum over the past 12 months. The 100 foundations milestone was reached in February. We project this overall number to triple annually going forward.
There was never a better time to re-structure/protect high-value assets. Unlike in business, entrepreneurs should take no chances of shielding what they have built.
Forget Bull or Bear time. When it comes to valuable assets, it is time to think and act like a Hedgehog.
Who we are
We are a multi-services platform catering to a broad spectrum of clients – from individual entrepreneurs and local SMEs to wealthy international families to established blue-chip companies and multinationals. Our one-stop-shop offering is unique in the Middle East: a holistic and cross-disciplinary combination of a market-leading corporate services firm, a law firm’s specialist expertise, and a regulatory & compliance services practice, all through one single platform.
By
Yann Mrazek
Managing Partner
M/HQ
