Law No. (8) of 2023 Concerning the Private Portfolio

Article 1 — In the implementation of the provisions of this law, the following words and ¶

phrases shall have the meanings corresponding thereto unless the context
requires otherwise:
State : The United Arab Emirates.
Emirate : The Emirate of Abu Dhabi.
Committee : The Private Portfolio Accreditation Committee.
Concerned
Authority
: The Department of Economic Development - Abu
Dhabi or any other entity determined by a resolution of
the Executive Council.
Registrar : The Registrar of the Private Portfolio with the concerned
authority.
Person : The natural or corporate person.
Private Portfolio : The corporate person established according to the Creation
Deed to receive and own money, having the purpose to
invest and employ the movable and immovable property of
that person in accordance with the rules and conditions
determined by the Creation Deed to achieve an interest for
the Beneficiary or to achieve a special purpose, pursuant
to the provisions of this Law. The Private Portfolio shall be
considered one of the principal real rights.

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Private Portfolio
Creator
: A person who creates a Private Portfolio and provides its
funds in accordance with the provisions of this Law.
Private Portfolio
Custodian
: The person appointed by virtue of the Creation Deed, and to
whom the authorities and powers specified in the Creation
Deed and the provisions of this Law are transferred, to
achieve the purpose of the Private Portfolio. This shall
include the Professional Private Portfolio Custodian and the
Professional Corporate Person.
Professional
Private Portfolio
Custodian
: A natural person licensed to exercise the functions of
a Private Portfolio Custodian in accordance with the
provisions of this Law.
Professional
Corporate Person
: A corporate person incorporated in the Emirate, including
any of the financial free zones in the Emirate, whose licence
allows it to exercise the powers and authorities of the Private
Portfolio Custodian.
Creation Deed : A written or electronic document made by the Private
Portfolio Creator to create the Private Portfolio and organise
its terms and conditions, and signed by the Private Portfolio
Creator before the Registrar.
Terms of Creation
Deed
: The terms stipulated in the Creation Deed that express
the will of the Private Portfolio Creator and how the Private
Portfolio will be implemented.
Private Portfolio
Funds
: Any movable or immovable property, and what is associated
with it or considered among its requirements, and any
existing or potential right, existing inside or outside the
State. The Private Portfolio Funds shall include all movable
and immovable property and rights that are added to the
Private Portfolio from time to time, including the benefits of
the Private Portfolio, as determined by the Creation Deed.
Private Portfolio
Benefits
: All returns, interests, proceeds and any revenue resulting
from investing, exploiting or disposing of any of the Private
Portfolio Funds.

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Beneficiary : The person having a personal right according to the
Creation Deed, including the person stipulated by the
Creation Deed as included or may be included in obtaining
the Private Portfolio Benefits or Funds, and any person to
whom the Private Portfolio Custodian has the authority to
grant him from the Private Portfolio Benefits, in a manner
that does not conflict with the provisions contained in the
Creation Deed, including the guarantee right in his favour
on its funds.
Register : The Private Portfolio register created and maintained by the
Concerned Authority for the registration and documentation
of the Creation Deed and any amendments thereto.
Private Portfolio
Purpose
: The objective for which the Private Portfolio is created.
Private Portfolio
Protector
: The natural or corporate person who may be appointed
by the Private Portfolio Creator in accordance with the
provisions of the Creation Deed, or who is appointed in
accordance with the mechanism specified by the Creation
Deed for the appointment thereof to protect the Private
Portfolio.
Interested Party : The Private Portfolio Creator, the Private Portfolio Custodian,
the Beneficiary, or the legal representative of the Beneficiary.
It also includes the Private Portfolio Protector within the
limits of his powers in accordance with the provisions of
this Law.
Competent Court : The Court established in the Judicial Department in
accordance with the provisions of Article (50) of this Law.

Article 2 — Scope of Validity of the Law ¶

The provisions of this Law shall apply to any Private Portfolio established in
accordance with the provisions thereof in the Emirate, excluding the trust or
Private Portfolio established in the financial free zones in the Emirate, if those
areas have a private trust or portfolio in accordance with the legislations in
force therein.

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Article 3 — Legal Nature of the Private Portfolio and Ownership of its Funds ¶

The Private Portfolio shall acquire corporate personality and have financial
and administrative independence and the right to litigate in this capacity.
It shall be represented by the Private Portfolio Custodian. Ownership of the
Private Portfolio Funds shall be transferred to the Private Portfolio upon
registration of the Creation Deed with the Registrar in accordance with the
provisions of this Law.
Chapter 2
Creation of the Private Portfolio

Article 4 — Means of Creation of the Private Portfolio ¶

The Private Portfolio shall be incorporated through the following means:
1. Documenting the Private Portfolio Creation Deed.
2. Transferring funds from a valid and existing Private Portfolio in accordance
with the provisions of this Law to another Private Portfolio. After the funds
are transferred, the Private Portfolio shall be subject to the conditions
stipulated in the Creation Deed to which the funds are transferred.

Article 5 — Conditions of Creation of the Private Portfolio ¶

1. Subject to the condition of registration in the Register stipulated in this
Law, the following conditions shall be met for the creation of the Private
Portfolio:
a. The Private Portfolio Creator shall have full capacity according to
the provisions of the aforementioned Civil Transactions Law if he is a
natural person, and if it is a corporate person, then a decision shall be
issued by the competent authority to dispose of its funds, such as the
Board of Directors or the General Assembly and others, as determined
by the establishing documents which that corporate person is subject
thereto.

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b. The Private Portfolio Creator shall be the owner, directly or indirectly,
of the funds whose ownership is transferred to the Private Portfolio or
the funds that he shall have the right to dispose thereof in accordance
with the provisions of this Law or the legislations in force in the State.
c. Specifying the Beneficiary of the Private Portfolio in the Creation
Deed, or specifying the mechanism by which that Beneficiary will be
determined in the future.
d. Specifying the Private Portfolio Custodian, or that may be possible to
specify him to act as a Private Portfolio Custodian upon his appointment.
e. The money allocated to the Private Portfolio shall be of what may be
disposed of and free from any inalienable right of a third party. In the
event where the money is associated with an inalienable right of a third
party, the ownership of that money shall be transferred to the Private
Portfolio associated with this right. Nevertheless, the disposal of the
money associated with an inalienable right of a third party shall not be
considered valid and enforceable except after notifying that third party
of the intention to conduct the disposal by means of a registered letter
with acknowledgement of receipt or by one of the electronic means,
and obtaining his approval of the procedure.
f. The money allocated to the Private Portfolio shall be identifiable or
capable of being identified, and it may be from what will be acquired in
the future.
2. If any of the aforementioned conditions are not met, the Private Portfolio
shall be invalid.

Article 6 — Creation Deed ¶

1. The Creation Deed shall be registered in the Register in accordance with
the provisions of this Law, it shall be in writing, and includes the following:
a. Announcement by the Private Portfolio Creator of his intention to

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create the Private Portfolio.
b. Specifying the Beneficiary of the Private Portfolio, or that he is
specifiable in case he is not specifically specified upon the creation of
the Private Portfolio.
c. Specifying the nature of the Private Portfolio Funds, or their basic
descriptions in a way that enables determining their nature.
d. Specifying the duration of the Private Portfolio, and in the event where
the period is not specified, the Private Portfolio shall be considered
permanent, unless the circumstances of the case indicate otherwise.
e. Specifying the name by which the Private Portfolio is known.
f. Specifying the powers and authorities of the Private Portfolio Custodian.
2. In the event where any of the information referred to in the previous clause
is missing, the Creation Deed shall be invalid.
3. The Creation Deed may include the following:
a. Detailed data regarding the identification of the Beneficiary and the
specified share for each Beneficiary in case of multiple Beneficiaries,
and whether the share of any Beneficiary is a share of the benefits
and revenue of the Private Portfolio Funds or a share of the funds of
the Private Portfolio itself, and the authority of the Private Portfolio
Custodian to take into account the interest of the Beneficiaries when
distributing the Private Portfolio Funds on them, without prejudice to
the provisions of the Creation Deed.
b. Specifying the conditions for dealing with the Private Portfolio Funds.
c. The method of appointing, dismissing and replacing the Private Portfolio
Custodian and any implications thereof.
d. The consequences of the expiration of the Private Portfolio.
e. Any other matters related to the implementation of the duties of the
Private Portfolio Custodian or regulating the relationship between him
and each of the Private Portfolio Creator, the Beneficiary, and the
Private Portfolio Protector.

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f. The method of appointing the Private Portfolio Protector and his
powers.
g. Any other issues that may be included in the Creation Deed in
accordance with the provisions of this Law.
4. The terms of Creation Deed shall be final, enforceable, and binding on all
interested parties.
5. The Creation Deed and any document related thereto shall be made in
Arabic or any other language, provided that it is accompanied by an
approved legal translation into Arabic. In the event of discrepancies, the
original language in which the Creation Deed was made shall prevail.

Article 7 — Private Portfolio Purpose ¶

The purpose of creating a Private Portfolio shall not violate the provisions
of this Law, and it shall be possible and clearly specified.

Article 8 — Increase of the Private Portfolio Funds ¶

1. The Private Portfolio Creator may add funds to the Private Portfolio
Funds to achieve the purposes of the Private Portfolio or the interest of the
Beneficiary, unless the Creation Deed stipulates otherwise.
2. The Private Portfolio Benefits shall be added to the Private Portfolio Funds.

Article 9 — Duration of the Private Portfolio ¶

The beginning or end of the Private Portfolio duration may be linked to a
specific legitimate and achievable event or reason, provided that this is
expressly mentioned in the Creation Deed.

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Chapter 3
Private Portfolio Creator

Article 10 — Several Private Portfolio Creators ¶

1. If there are more than one Private Portfolio Creator, decisions shall be
taken among them unanimously, unless the Creation Deed provides for
another mechanism.
2. The Private Portfolio Creator may delegate any of the powers to another
person in accordance with the provisions of this Law, unless the Creation
Deed stipulates otherwise.

Article 11 — Obligations of the Private Portfolio Creator ¶

1. The Private Portfolio Creator shall transfer funds to the Private Portfolio,
along with all powers and authorities attached to it to the Private Portfolio
Custodian within a period not exceeding (6) six months from the date of
entering the Private Portfolio in the Register, unless the Creation Deed
stipulates otherwise.
2. The Private Portfolio Creator shall also hand over all documents, papers,
and data related to the Private Portfolio Funds to the Private Portfolio
Custodian within the period stipulated in the previous clause, unless the
Creation Deed stipulates otherwise.

Article 12 — Powers of the Private Portfolio Creator ¶

1. The Private Portfolio Creator may reserve for himself powers related to the
Private Portfolio, provided that this is expressly mentioned in the Creation
Deed.
2. The Creation Deed shall provide for the following powers in the event
where the Private Portfolio Creator reserves them for himself:
a. Termination or revocation of the Private Portfolio, in whole or in part,
unless the Private Portfolio is irrevocable.

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b. Amending or changing the purposes of the Private Portfolio, and in this
case, it shall be permissible to stipulate the suspension of the power
to make the amendment or change for a certain period, so that the
Private Portfolio Creator exercises the power to amend or change after
the lapse of that period, provided that this is done during his lifetime.
c. Amending any of the terms of the Creation Deed, in whole or in part.
d. Adding a new Beneficiary, excluding any Beneficiary from the Private
Portfolio, amending the rights of any Beneficiary, or setting conditions
related to determining the Beneficiaries or their entitlement to the
Private Portfolio Benefits, permanently or temporarily. The Creation
Deed may stipulate who has the right to exercise this power and any
other related conditions.
e. Appointing or dismissing the Private Portfolio Custodian, the Private
Portfolio Protector, or any other person appointed or granted powers
or authorities under the Creation Deed or the provisions of this Law
relating to the Private Portfolio.
f. Changing the obligations of the Private Portfolio Custodian stipulated
in the Creation Deed, and restricting the Private Portfolio Custodian's
exercise of any powers or authorities and make that conditioned on
the written approval of the Private Portfolio Creator or any other person
specified in the Creation Deed.
g. Issuing instructions directed to the Private Portfolio Custodian
regarding managing, disposing of, using, exploiting, or investing the
Private Portfolio Funds, as well as appointing or authorising any person
to do so.
3. In the event where any of the powers and authorities stipulated in Clause
(2) of this Article are amended, they shall not be enforced against the
Private Portfolio Custodian except from the date he is notified of the same
in writing. Any actions he performs in good faith prior to receiving this
notification shall be deemed valid.

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Chapter 4
Private Portfolio Custodian

Article 13 — Terms of Appointment of a Private Portfolio Custodian ¶

1. The following conditions shall be met if the Private Portfolio Custodian is
a natural person:
a. He shall be of full legal capacity in accordance with the legislations in
force in the State.
b. He shall be of good conduct and reputation and not previously convicted
of a felony or crime involving moral turpitude or dishonesty unless he
has been rehabilitated.
2. The following conditions shall be met if the Private Portfolio Custodian is
a corporate person:
a. It shall take one of the forms of the commercial companies in accordance
with the legislations in force in the State, or to be a corporate person
registered in one of the financial free zones in the State and whose
license allows it to practice the activity of Private Portfolio Custodian.
b. Its licence shall allow it to act as a Private Portfolio Custodian in
accordance with the provisions of this Law, and a decision shall be
issued by the Chairman of the Department of Economic Development
stipulating the conditions that shall be met by a corporate person to
practice the activities of a Professional Corporate Person.
3. A Professional Corporate Person, if appointed as a Private Portfolio
Custodian, shall carry out its duties as a Professional Corporate Person,
while assuming all the responsibilities stipulated in this Law. The
Professional Corporate Person and any person, Board, Director or Board
of Directors it represents shall bear all the responsibility imposed by this
Law and other relevant legislations on the appointed Professional Private
Portfolio Custodian.
4. Lawsuits shall be filed against or by the Private Portfolio, in the name of

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the Private Portfolio and the Private Portfolio Custodian, in his capacity as
custodian of the Private Portfolio.
5. The Private Portfolio shall be represented by the Private Portfolio Custodian
before the judiciary, governmental entities and third parties, and in the
event where a Professional Corporate Person is appointed as a Private
Portfolio Custodian and this person has a Board of Directors or the
like, then the Board, or whomever the Board delegates, shall represent
the Private Portfolio before the judiciary, governmental entities or third
parties.
6. The Private Portfolio Creator may be the Private Portfolio Custodian, the
Private Portfolio Protector, and one of the Beneficiaries.

Article 14 — Several Private Portfolio Custodians ¶

1. The Private Portfolio may have one or more Private Portfolio Custodians as
stipulated in the Creation Deed.
2. In the event where the number of Private Portfolio Custodians is not
specified, the Private Portfolio shall have one Private Portfolio Custodian,
and the Private Portfolio Creator may reserve the right to add one or more
Private Portfolio Custodians if this is stipulated in the Creation Deed. He
may also grant this authority to the Private Portfolio Protector.
3. In the event of several Private Portfolio Custodians, it shall be permissible
to stipulate the following in the Creation Deed:
a. Distribution of powers and authorities related to the Private Portfolio
between more than Private Portfolio Custodian.
b. Appointing one of the Private Portfolio Custodians as the first Private
Portfolio Custodian to exercise the powers and authorities stipulated
in the Creation Deed or in this Law.
c. Each Private Portfolio Custodian shall be responsible for his actions
and conduct within the limits of his powers and authorities specified in
the Creation Deed.

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4. If there are several Private Portfolio Custodians and the Creation Deed did
not provide for the method of managing the Private Portfolio between
them and the method of taking decisions related to the Private Portfolio,
they shall act jointly and their decisions shall be taken by numerical
majority, except in cases where an urgent action is required to protect
the interest of the Beneficiary or the purpose of the Private Portfolio or
the required procedure does not require an exchange of opinion, such as
the collection or payment of a debt.
5. If there are several Private Portfolio Custodians and the Creation Deed
did not specify the duties of each of them, they shall be jointly liable for
the damage that befalls the Private Portfolio if it results from a mutual
mistake on their part.
6. In the event where the capacity of one of the Private Portfolio Custodians
ceases to exist, the remaining Private Portfolio Custodians shall carry out
their usual duties until a new Private Portfolio Custodian is appointed.
7. In case of several Private Portfolio Custodians, they shall not be jointly
liable for what one of them did if he exceeded his powers and authorities
set forth in the Creation Deed or was arbitrary in their implementation.
8. In the event where a Professional Corporate Person is appointed as a Private
Portfolio Custodian and that Professional Corporate Person has a Board
of Directors or the like, then the decisions related to the management
of the Private Portfolio shall be issued in accordance with the Creation
Deed or the incorporation document of that corporate person.

Article 15 — Acceptance or Rejection of Appointment of the Private Portfolio Custodian ¶

1. The person designated as the Private Portfolio Custodian may accept his
appointment in this capacity, and any of the following shall be considered
as acceptance by him:
a. His signature on the Creation Deed if he is a natural person, or the
signature of the legally authorised person on the Creation Deed in

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case of a corporate person.
b. The transfer of powers and authorities over the Private Portfolio Funds
to him and the commencement of performing his obligations as the
Private Portfolio Custodian.
c. Being aware of the appointment and not taking any action indicating
his rejection or acceptance of the appointment.
The commitment of the Private Portfolio Custodian shall not be deemed
fulfilled unless he is enabled to exercise the powers and authorities
over the Private Portfolio Funds in a manner that does not conflict with
the Creation Deed.
2. Any person who has been designated as the Private Portfolio Custodian
may reject to be appointed in this capacity, and he is considered to be
refusing to do so if he does not express his acceptance within the period
specified by the Private Portfolio Creator to accept the appointment, or if
he states his rejection expressly.
3. The rejection of appointment shall be sent by any written means to the
Private Portfolio Creator, including electronic means.
In the event of death of the Private Portfolio Creator, the rejection of
appointment shall be sent to any other appointed Private Portfolio
Custodian who exercises his duties on the same Private Portfolio, or
to any other person who has the power to appoint the Private Portfolio
Custodian as stipulated in the Creation Deed.
4. The Creation Deed may stipulate the designation of an alternative Private
Portfolio Custodian, or the method of selecting an alternative Private
Portfolio Custodian, in the event where the designated Private Portfolio
Custodian refuses to accept the appointment.
5. The person who refuses to continue his appointment as a Private Portfolio
Custodian after the transfer of powers and authorities over the Private
Portfolio Funds to him, shall preserve the Private Portfolio Funds until
the transfer of those powers and authorities to the Private Portfolio
Creator, or to another Private Portfolio Custodian. He shall be entitled

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to compensation for all the costs incurred by him, and shall not bear any
responsibility arising from his preservation of the Private Portfolio Funds
that he took over during that period, except in cases of fraud or gross
mistake.

Article 16 — Resignation and Suspension of the Private Portfolio Custodian ¶

1. The Private Portfolio Custodian may resign or request to be relieved of his
position as Private Portfolio Custodian after accepting his duties.
2. The resignation or request for relief from position shall be submitted by
written notice to the Private Portfolio Creator, or the Private Portfolio
Protector in the event of death or incapacity of the Private Portfolio
Creator, including by any electronic means, to any person having the
power to appoint the Private Portfolio Custodian, prior to a period not
less than (20) working days from the effective date of the resignation or
the request for relief from position unless the Creation Deed specifies a
shorter period or the remaining Private Portfolio Custodians unanimously
agree upon a shorter period for the resignation or relief to take effect.
3. The person who has the authority to appoint the Private Portfolio
Custodian shall respond to the latter’s resignation request within a period
not exceeding (10) working days from the date of his being aware of the
request, and this includes any electronic means, and the resignation shall
be considered legally acceptable in the event where he does not notify
him in writing of its acceptance.
4. In the event where the Creation Deed does not regulate the terms and
conditions for the resignation or relief from position of the Private Portfolio
Custodian, or in the event of refusal to accept the resignation or relief,
the Private Portfolio Custodian may submit a request for resignation
to the Competent Court to issue a decision in this regard, and if the
Competent Court finds that the purpose of the resignation is to disrupt the
implementation of the Private Portfolio, it shall issue a decision rejecting

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the resignation, and obliging him to pay the damages resulting therefrom.
5. The Private Portfolio Creator, or Private Portfolio Protector in the event
of the death or incapacity of the Private Portfolio Creator, may dismiss
the Private Portfolio Custodian because he has ceased to perform his
duties for a period of more than three months, even if the reasons for his
interruption are justified, unless the Creation Deed stipulates otherwise.
6. The Private Portfolio Creator, and in the event of his death or loss of
capacity, the Private Portfolio Custodian may, at the request of the rest
of the Custodians in case of several Custodians, order the suspension
of any of the Private Portfolio Custodians from exercising his powers
and authorities or fulfilling his obligations for the period he specifies so
that it does not harm the purpose of the Private Portfolio, and that if
the concerned custodian commits an intentional mistake or breaches his
obligations stipulated in the Creation Deed or this Law.

Article 17 — Dismissal of the Private Portfolio Custodian ¶

The Private Portfolio Creator, in the event of his life, and the Private Portfolio
Custodian, in the event of the death or incapacity of the Private Portfolio
Creator, or the rest of the custodians in the event of several custodians, after
the death of the Private Portfolio Creator and in the absence of a Private
Portfolio Protector, may dismiss any of the Private Portfolio Custodians or
replace any of the members of the Board in charge of managing and running
the affairs of the Private Portfolio Custodian if the latter is a corporate
person, for any of the reasons specified in the Creation Deed.

Article 18 — Demise of the Capacity of Private Portfolio Custodian ¶

1. The capacity of the Private Portfolio Custodian shall be demised after his
death or loss of capacity if he is a natural person, liquidation of its activity
or declaration of bankruptcy if it is a corporate person, expiration of his

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appointment period if his appointment period is specified in the Creation
Deed, or revocation of his licence if he is a Professional Private Portfolio
Custodian, and the Private Portfolio shall be transferred to the rest of the
Private Portfolio Custodians in case of several custodians.
2. Subject to the terms of the Creation Deed, in the event where the
capacity of the Private Portfolio Custodian is demised and there is no
Private Portfolio Custodian appointed to assume the functions related
to the Private Portfolio, the Competent Court shall, in the event of death
or incapacity of the Private Portfolio Creator and the Private Portfolio
Protector, entrust the management of the Private Portfolio to one or more
Professional Private Portfolio Custodians on a temporary basis until a new
Private Portfolio Custodian is appointed in accordance with the provisions
of the Creation Deed or in accordance with the provisions of this Law
in the event where the Creation Deed does not include the method of
appointing a new Custodian. The Private Portfolio shall remain existing
until the new Private Portfolio Custodian assumes his duties.
3. In the event where the capacity of the Private Portfolio Custodian is
demised, and the Creation Deed does not specify who has the right to
replace the Private Portfolio Custodian and the mechanism for the same,
the Competent Court may, in the event of death or incapacity of the Private
Portfolio Creator and the Private Portfolio Protector, based on the request
of any interested party, appoint a new Private Portfolio Custodian.
4. Any person appointed as an alternative Private Portfolio Custodian shall
enjoy all the powers and authorities that were enjoyed by the replaced
Private Portfolio Custodian, unless otherwise provided in the Creation
Deed or in the decision of the Competent Court that appointed the
alternative Private Portfolio Custodian.
5. The Private Portfolio Custodian whose capacity has expired, shall deliver
all documents related to the Private Portfolio to the new Private Portfolio
Custodian.
6. The replacement of the Private Portfolio Custodian shall not prejudice any

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obligation imposed by any other law regarding the consideration of the
dispositions entered into by the former Private Portfolio Custodian on the
Private Portfolio Funds.

Article 19 — Consequences of Demise of the Capacity of Private Portfolio Custodian ¶

In the event of death or incapacity of the Private Portfolio Creator and the
Private Portfolio Protector, the following provisions shall apply in the event of
demise of the capacity of the Private Portfolio Custodian, unless the Creation
Deed stipulates otherwise:
1. If the capacity of a Private Portfolio Custodian is demised for any reason,
and no other Private Portfolio Custodian is appointed, the Private
Portfolio shall be valid until a Private Portfolio Custodian is appointed
in accordance with the provisions of this Law, unless the Creation Deed
stipulates otherwise.
2. In the event of demise of the capacity of the Private Portfolio Custodian
for any reason other than death or loss of capacity, he shall submit to
each of the Private Portfolio Creator, the Beneficiaries and the Private
Portfolio Protector, or the Competent Court if appointed by the Competent
Court, a final account of the Private Portfolio audited or reviewed by
an independent auditor and accompanied by all the data, papers and
documents related to the work he carried out in favour of the Private
Portfolio, and he shall be considered a custodian of the Private Portfolio
Funds until he completes handing over his current work, and shall take
the necessary measures to transfer the rights over the Private Portfolio
Funds to the new Private Portfolio Custodian or other Private Portfolio
Custodians, in case of several custodians, as soon as possible.
3. If the capacity of the Private Portfolio Custodian is demised with death or
loss of capacity, the heirs or guardian of the Private Portfolio Custodian
shall notify the Competent Court or any of the other Private Portfolio
Custodians, in case of several custodians, of the death or loss of capacity

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of their legate within (40) forty working days from the date of death or
from the date of their being aware of the Private Portfolio if they were not
aware of it earlier, and the Competent Court shall notify each of the Private
Portfolio Creator, the Private Portfolio Protector and the Beneficiary, of
the death or incapacity of the Private Portfolio Custodian.
4. In the event of death or incapacity of the Private Portfolio Custodian, his
heirs or guardian shall transfer the Private Portfolio Funds in their custody
to a new Private Portfolio Custodian in accordance with the provisions of
the Creation Deed or pursuant to a decision of the Competent Court.
5. If the Private Portfolio Custodian was a corporate person and its capacity
is demised, the Competent Court may decide that the person appointed
by that corporate person continue to be the Private Portfolio Custodian.
6. If the heirs of the deceased Private Portfolio Custodian do not have the
legal capacity, their guardian, trustee or custodian shall implement the
obligations stipulated in Clause (3) and Clause (4) of this Article.
7. In the event of multiple Private Portfolio Custodians, and the capacity of
one or more of the Private Portfolio Custodians is demisedPrivate Portfolio
, the Private Portfolio Custodian who continues in his position shall have
all powers and authorities over the Private Portfolio Funds, and shall meet
all obligations until the appointment of the Private Portfolio Custodian to
be appointed.
8. The demise of the capacity of the Private Portfolio Custodian for any
reason shall not affect the continuity of the Private Portfolio unless the
Creation Deed stipulates otherwise, provided that the new Private Portfolio
Custodian, after his appointment, exercises all the powers and authorities
of the previous Private Portfolio Custodian by force of law without the
need for any procedure, warning or prior notification.
9. The new Private Portfolio Custodian shall take the necessary measures
to oblige any previous Private Portfolio Custodian to return and hand
over the Private Portfolio Funds, unless otherwise stipulated in the terms
of the Creation Deed, and the new Private Portfolio Custodian shall

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demand compensation from the previous Private Portfolio Custodian for
any damage resulting from any breach caused during the period of his
assignment, or in accordance with the provisions of this Law.

Article 20 — Fees and Expenses of the Private Portfolio Custodian ¶

1. The Private Portfolio Custodian shall be entitled to fees for carrying out
the tasks specified in the Creation Deed, and these fees shall be specified
according to the mechanism stipulated in the Creation Deed.
2. The Private Portfolio Creator shall have the right to determine the fees
of the Private Portfolio Custodian, increase or decrease them at any
time after the creation of the Private Portfolio if he reserves this right for
himself in the Creation Deed. In the event where the Creation Deed does
not specify the fees of the Private Portfolio Custodian or the mechanism
for specifying them, the fees may be determined or amended by virtue of
the written consent of all Beneficiaries, or by a decision of the Competent
Court.
3. The Creation Deed may specify the fees of the Private Portfolio Custodian
on the basis of a percentage of the Private Portfolio benefits during the
year, after deducting all expenses and fees, or according to any other
mechanism specified in the Creation Deed.
4. It shall be permissible to stipulate in the Creation Deed the right of the
Private Portfolio Custodian to recover the reasonable expenses incurred
by him due to managing the Private Portfolio directly from the Private
Portfolio Funds, and in the event where this is not stipulated in the
Creation Deed, the Private Portfolio Custodian may submit a request
to the Competent Court to obtain a decision to dispose of the Private
Portfolio Funds to obtain a consideration for such expenses.

Article 21 — Powers and Authorities of the Private Portfolio Custodian ¶

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1. The Private Portfolio Custodian shall have all the powers and authorities
over the Private Portfolio Funds and may manage, use and dispose of
them in all manners, and he may open bank accounts in the name of the
Private Portfolio, unless this right is restricted by the Creation Deed or in
this Law.
2. If the Creation Deed includes what is restricting the Private Portfolio
Custodian from disposing of the Private Portfolio Funds, the Competent
Court may, in the event of death or incapacity of the Private Portfolio
Creator and the Private Portfolio Protector, based on the request of the
Private Portfolio Custodian or the Beneficiary, grant the Private Portfolio
Custodian the authority to dispose of the Private Portfolio Funds. In this
case, this shall be related to the extent that achieves the purpose of its
creation and the interest of the Beneficiary.
3. It shall be permissible to expressly stipulate in the Creation Deed that the
Private Portfolio Custodian be granted discretionary authority regarding
determining the share of each Beneficiary of the benefits resulting from
the Private Portfolio Funds and the method and time of their distribution.
4. If the implementation of any of the conditions of the Creation Deed or
any of the provisions of this Law requires amending the powers and
authorities of the Private Portfolio Custodian, the Custodian may, in the
event of death or incapacity of the Private Portfolio Creator and the Private
Portfolio Protector, submit a request to the Competent Court to obtain a
decision. The Competent Court may issue the decision that achieves the
purpose of the Private Portfolio or the interest of the Beneficiaries.

Article 22 — Deputising or Delegating the Powers and Authorities of the Private Portfolio ¶

Custodian
1. The Private Portfolio Custodian may not delegate or authorise another
Person to carry out any of his duties, whether that person is a Private
Portfolio Custodian with him or a third party, with the exception of the

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following cases:
a. If the Creation Deed stipulates the same.
b. If all the Beneficiaries agree and the Creation Deed allows them to do
so.
c. If the deputation or delegation is necessary to enable the Private
Portfolio Custodian to perform his duties.
d. If the Competent Court agrees upon the same.
e. If one of the Private Portfolio Custodians is temporarily unable to
perform his duties due to an emergency reason, he may delegate one
of the other Private Portfolio Custodians to carry out those tasks.
f. If the Private Portfolio Custodian is a Professional Corporate Person and
has a Board of Directors or the like, the Private Portfolio Custodian may
in this case delegate any person to carry out the tasks of the Private
Portfolio Custodian, and the Private Portfolio Custodian and its Board
of Directors shall be jointly liable for any breach by the authorised
person of the provisions of the Creation Deed.
2. The scope and conditions of deputation or delegation shall be specified
achieve the interests, objectives and conditions of the Private Portfolio,
and the person delegated or authorised by the Private Portfolio Custodian
shall meet the specific and required obligations and exercise the powers
and authorities of the Private Portfolio Custodian in the interest of the
Beneficiaries and the purpose of the Private Portfolio.
3. If the Creation Deed allows the Private Portfolio Custodian to delegate
or authorise any person on his behalf without specifying the person of
the representative or the delegate, then the Private Portfolio Custodian
shall not be responsible in a personal capacity except for his mistake in
choosing his representative or his mistake in the instructions he issued
to him.
4. The provisions stipulated in this Law and related to the responsibility of
the Private Portfolio Custodian for his actions and conduct shall apply to
the representative or delegate under this Article.

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5. If the Private Portfolio Custodian delegated or authorised others to carry
out some of his tasks in violation of the conditions of the Creation Deed,
he shall be responsible for the work of the representative or delegate as if
this work had been carried out by him personally. In this case, the Private
Portfolio Custodian and delegate or representative shall be jointly liable.

Article 23 — Obligations of the Private Portfolio Custodian ¶

The Private Portfolio Custodian shall:
1. Initiate, within a reasonable period of his appointment, to complete the
transfer and enable the powers and authorities over the Private Portfolio
Funds to him, taking into account the period specified in Clause (1) of
Article (11) of this Law.
2. Perform his obligations and exercise his powers and authorities in
accordance with the conditions of the Creation Deed and the provisions
of this Law.
3. Exercise the necessary care as a person who is keen to implement his
powers, authorities and duties, to preserve the Private Portfolio Funds
and their value, and to dispose of them in accordance with the terms of
the Creation Deed and the provisions of this Law.
4. Exercise his duties to achieve the interest of the Beneficiaries and the
purpose of creation of the Private Portfolio, and he shall preserve,
develop and dispose of the Private Portfolio Funds for the benefit of the
Beneficiaries and the purpose of the Private Portfolio.
5. Carry out all procedures and take all reasonable legal and material acts to
control investment operations, preserve and protect the Private Portfolio
Funds, and protect any rights pertaining thereto. For this purpose, he
may appoint whomever he deems appropriate among the consultants,
houses of expertise, technicians, lawyers, financial, economic and legal
advisors, and agents to assist him in performing his duties. He shall
have the right to determine their fees and pay each of them.

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6. Represent the interests of the Private Portfolio and any legal requirements
related to the Private Portfolio before everyone, including any competent
entity to register or record any transaction received on the Private
Portfolio Funds.
7. In the event where there is more than one Beneficiary or more than one
Purpose for the Private Portfolio, he shall exercise his tasks to achieve
the interest of the Beneficiaries and the purpose of creation of the
Private Portfolio, by preserving, developing and disposing of the Private
Portfolio Funds in a way that achieves the benefit of the Beneficiaries
and the purpose of creation of the Private Portfolio.
8. Disclose his capacity as a Private Portfolio Custodian, and that the
funds subject to disposal are the Private Portfolio Funds, including the
contracts and transactions he concludes with others for the interest of
the Private Portfolio.
9. Keep a record of all the Private Portfolio Funds, and keep Private Portfolio
Funds separate from his personal funds and any other funds he manages
in a manner that facilitates identification of them from among his funds
or any other funds.
10. Hold, keep and disclose books and records in accordance with the
provisions of this Law.
11. Notify each of the Private Portfolio Creator or the Private Portfolio
Protector, or the Beneficiaries in the event of the death or incapacity
of the Private Portfolio Creator and the Private Portfolio Protector, if he
becomes aware of any matter that may affect the value of the Private
Portfolio Funds or their investments.
12. Disclose in writing any direct or indirect personal interest that conflicts
with the requirements of his exercise of the tasks of the Private Portfolio
Custodian, and disclosure shall be made immediately upon his knowledge
of this interest to the Private Portfolio Creator or the Private Portfolio
Protector, to the rest of the other Private Portfolio Custodians, or to
the Competent Court in the event of death or incapacity of the Private

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Portfolio Creator and the Private Portfolio Protector. In such event, he
shall refrain from participating in taking any decision regarding the act
that affects the conflict of interest. The Private Portfolio Creator and
the Private Portfolio Protector may, in the event of death or incapacity
of the Private Portfolio Creator, appoint a Professional Private Portfolio
Custodian to undertake the disposition subject of the disclosure, if
the Private Portfolio Custodian is single, provided that the provisions
specified in the Creation Deed are observed.
13. Answer any inquiry made by the Private Portfolio Creator, the Private
Portfolio Protector or the rest of the Custodians (if there are several
Custodians) in the event of death or incapacity of the Private Portfolio
Creator, or any party having an interest therein.
14. Any other obligations stipulated by the Law or the Creation Deed.

Article 24 — Prohibited Acts of the Private Portfolio Custodian ¶

Without prejudice to the Creation Deed, the Private Portfolio Custodian shall
not:
1. Use the Private Portfolio Funds for his personal benefit, or unjustly enrich
himself as a result of his implementation of his obligations.
2. Cause or allow others to use, benefit from, or enrich from the Private
Portfolio Funds, directly or indirectly, in violation of the Creation Deed.
3. Exploit the capacity of the Private Portfolio Custodian to harm the interests
of the Beneficiaries or the purpose of the Private Portfolio.
4. Charge the Private Portfolio with any expenses other than reasonable
expenses necessary for managing the Private Portfolio.

Article 25 — Report ¶

It shall be permissible to stipulate in the Creation Deed the obligation of
the Private Portfolio Custodian to issue a report specifying the data and

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information that it shall include, and the persons to whom the report is
submitted, provided that the report indicates the market value of the Private
Portfolio Funds and any circumstances or facts that may affect this value
by increase or decrease, and any issues or facts that may affect the rights
of the Beneficiary or the conditions for managing or investing the Private
Portfolio Funds, as well as an appendix to the expenses and expenditures
that were paid in order to manage the Private Portfolio or maintain its funds.

Article 26 — Record Keeping and Disclosure ¶

1. The Private Portfolio Custodian shall keep and maintain paper and
electronic books and accounting records audited by an independent
auditor for the Private Portfolio, including the following:
a. All money transfers, debts, acquisitions, expenses and other transactions
related to the Private Portfolio and its funds.
b. Complete and accurate information about the status and value of the
Private Portfolio Funds.
c. The financial position of the Private Portfolio on a regular basis every
three months, or according to the duration of the Private Portfolio,
whichever is shorter.
2. The Private Portfolio Custodian shall keep the accounts and records of the
Private Portfolio separately from the accounts and records of any other
act that he performs.
3. The Private Portfolio Custodian shall maintain all accounting records
by any possible means for a period of (3) three years, and in case of
Professional Private Portfolio Custodian for a period of (10) ten years,
starting from the year of expiry or termination of the Private Portfolio.
4. It shall be permissible to stipulate in the Creation Deed the commitment
of the Private Portfolio Custodian to appoint an external auditor for the
Private Portfolio.
5. The Private Portfolio Custodian shall maintain a record containing the
following information:

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a. The full name, address, and nationality of the Private Portfolio Custodian,
Private Portfolio Creator, Beneficiary, and Private Portfolio Protector.
b. The date of appointment of the Private Portfolio Custodian and the
date of his cessation of work, and any conditions or restrictions on the
powers and authorities of the Private Portfolio Custodian.
c. A true copy of the Creation Deed.
d. A copy of the Private Portfolio entry in the Register stipulated in Article
(42) of this Law.
6. Unless otherwise stated in the Creation Deed, any interested party may
request access to the accounts of the Private Portfolio, and the Private
Portfolio Custodian shall submit to them an annual audited account
regarding the Private Portfolio Funds within (3) three months from the
beginning of the fiscal year following the date of creation of the Private
Portfolio, unless the Creation Deed or the subsequent agreement
stipulates otherwise, or if the nature of dealing in the Private Portfolio
Funds requires otherwise.
7. Unless otherwise stipulated in the Creation Deed, the Private Portfolio
Custodian may not disclose the reason for taking any of his decisions
under his powers and authorities, his implementation of a duty entrusted
to him, or the method of exercising those powers and authorities.

Article 27 — Independence of the Private Portfolio Custodian ¶

The Private Portfolio Custodian shall exercise his powers and authorities
specified in the Creation Deed and the provisions of this Law without
interference or direction from the Private Portfolio Creator or any of the
Beneficiaries, unless the Creation Deed states otherwise.

Article 28 — Liability of the Private Portfolio Custodian ¶

1. The Private Portfolio Custodian shall be liable for any loss or destruction

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of the value of the Private Portfolio Funds as a result of his breach of the
terms of the Creation Deed, due to his wilful mistake, or as a result of
his gross negligence in managing the Private Portfolio. If more than one
Private Portfolio Custodian participates in harming the Private Portfolio,
they shall be jointly liable.
2. If the Private Portfolio Custodian disposes of the Private Portfolio Funds
in a way that contradicts the bona fide requirements, and the one who
received the funds is aware of the same, then the disposal is null and
both parties shall restore the situation to what it was before the disposal,
if possible.
3. If the Creation Deed stipulates the sale of any part of the Private Portfolio
Funds within a specific period, and the Private Portfolio Custodian extends
that period for a reason he deems to be in the interest of the Beneficiary,
the burden of proof that the extension of the period was in the interest of
the Beneficiary falls on the Private Portfolio Custodian, otherwise he shall
compensate for the decrease in the sale value or the damage incurred by
the Beneficiary.
4. The Private Portfolio Custodian shall be liable for any damage to the Private
Portfolio caused by him as a result of fraud, bad faith or gross negligence.
5. If the Private Portfolio Funds were damaged for any of the reasons
stipulated in Clause (1) of this Article, the Private Portfolio Custodian
shall be obligated to compensate.
6. The Private Portfolio Funds shall not be considered part of the financial
estate of the Private Portfolio Creator or the financial estate of the Private
Portfolio Custodian, and it shall not be permissible to seek compensation
from the Private Portfolio Funds for a claim on the person of the Private
Portfolio Creator or the Private Portfolio Custodian. The Private Portfolio
Funds shall not be included in the inheritance of the Private Portfolio
Creator or the Private Portfolio Custodian, nor the bankruptcy of any of
them, nor the liquidation of their activities. The creditors of the Private
Portfolio Creator or the Private Portfolio Custodian shall not have the

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right to recourse on the Private Portfolio Funds, except that it shall be
permissible to seize the wages specified for the Private Portfolio Custodian
within the limits of what is due to him in the Private Portfolio.
7. The Competent Court may compensate the Private Portfolio Custodian
from the Private Portfolio Funds for any damages incurred by him as a
result of his work as a Private Portfolio Custodian.

Article 29 — Cases of Non-Liability of the Private Portfolio Custodian ¶

The Private Portfolio Custodian shall not be liable for any breach of the
Private Portfolio in the following cases:
1. If the breach occurred by any other person prior to his appointment as the
Private Portfolio Custodian.
2. If another Private Portfolio Custodian causes the breach in the event of
several Private Portfolio Custodians, unless the Private Portfolio Custodian
has contributed to the breach, or was aware of the occurrence of the
breach by the other Private Portfolio Custodian and did not take legal
procedures to stop the breach within a reasonable time.
3. If he acted in good faith, honestly and reasonably in accordance with the
Creation Deed and this Law.
4. If the Creation Deed provides for exempting the Private Portfolio
Custodian from liability or compensation as a result of a breach of the
Private Portfolio, however, the previous exemption condition shall not be
taken into consideration if the breach attributed to the Private Portfolio
Custodian involves forgery, bad faith or gross negligence.
5. Any other cases stipulated in the Creation Deed.
Chapter 5
Beneficiary of the Private Portfolio

Article 30 — Determination of the Beneficiary ¶

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1. The Beneficiary of the Private Portfolio shall be determined by name,
capacity, or by reference to kinship relationship, in a thorough manner,
whether he is existing or is likely to exist in the future.
2. If the Beneficiary is a natural person, he shall be determined by name,
or by affiliation with a group, corporate personality, category, degree of
kinship, or other, or by his association with a specific person, whether or
not that person was alive when the Private Portfolio was created, or by
his association with a specific category with its characteristics that may
be determined in the future.
3. The Creation Deed may state specific conditions for entitlement or
exclusion of the Beneficiary from obtaining the Private Portfolio benefits,
whether temporarily or permanently.
4. The Beneficiary may not claim from the Private Portfolio Custodian any
right he has in the Private Portfolio Funds that has not been added to the
Private Portfolio Funds.
5. In the event where the Beneficiary or the mechanism for determining the
Beneficiary is not specified in the Creation Deed, the Private Portfolio
shall be invalid.
6. The Private Portfolio Creator may be the Private Portfolio Custodian and
one of the Beneficiaries. The Private Portfolio custodian may also be one
of the Beneficiaries.

Article 31 — Right of the Beneficiary to the Private Portfolio Benefits ¶

1. The Beneficiary shall have the right to obtain the Private Portfolio Benefits,
and may demand the Private Portfolio Custodian to meet the obligations
stipulated in the Creation Deed and the provisions of this Law and to
preserve the rights of the Beneficiary related to the Private Portfolio
Funds with any person, whether that person was aware or was supposed
to be aware of the Private Portfolio.
2. If the Creation Deed specifies rights for the Beneficiaries without specifying
the share of each of them, the Private Portfolio Benefits shall be divided

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equally between them, taking into account any restriction in the Creation
Deed and the provisions of this Law.
3. The Beneficiary’s share of the Private Portfolio Benefits, after being
entitled to him and paid to him, shall be considered part of his financial
state, subject to any restriction on the same in the Creation Deed and the
provisions of this Law.
4. If there are multiple or successive Beneficiaries and one of them has
the right to use or exploit any part of the Private Portfolio Funds in
accordance with the terms of the Creation Deed, his use or exploitation
of them shall be in a manner that does not result in the destruction of the
Private Portfolio Funds or cause a permanent defect in the same. If the
Private Portfolio Custodian finds out that the Beneficiary does not comply
with the same, he shall take the necessary measures to prevent such
occurrence or continuation thereof.
5. It shall be permissible to stipulate in the Creation Deed that the
Beneficiary be deprived of his share of the Private Portfolio Benefits or its
suspension for a specified period or until a specific incident is achieved,
if the Beneficiary becomes insolvent or bankrupt or his money is seized
in a precautionary manner in favour of his creditors. In this regard, any
restriction contained in the Creation Deed and the provisions of this Law
shall be taken into consideration.
6. It shall be permissible to stipulate in the Creation Deed the possibility of
cumulating the Beneficiary’s share of the Private Portfolio Benefits and
handing it over to him after a certain period or after the achievement of
a specific incident. If the Creation Deed does not stipulate the same, the
Private Portfolio Custodian may request the Competent Court to allow the
cumulation of the Beneficiary's share if this achieves the interest of the
Beneficiary and achieves the Private Portfolio purpose.

Article 32 — Beneficiary’s Waiver of his Right to the Private Portfolio Benefits ¶

1. The Beneficiary who has reached the age of maturity or who is authorised

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to do so, may refuse or relinquish for the benefit of the Private Portfolio, all
or part of his rights that arise under the Creation Deed or this Law, even
if he previously received some of them. The waiver may be limited to a
specific period or a final waiver of the right, and it shall not be permissible
to withdraw such decision if the Beneficiary waives his right in a final
manner.
2. If the Creation Deed stipulates a specific period for the acceptance of
the Private Portfolio that was made for the interest of the Beneficiary
who has reached the age of maturity and such period lapses without
acceptance, this shall be considered as rejection of the Private Portfolio
by such Beneficiary.
3. If the Beneficiary rejects the benefits achieved for his benefit from the
Private Portfolio, the funds obtained from the Private Portfolio Benefits
shall be returned to the Private Portfolio, unless the Creation Deed
stipulates otherwise.
4. The Beneficiary's waiver of his right to the Private Portfolio Benefits shall
be in writing and submitted to the Private Portfolio Creator or the Private
Portfolio custodian in accordance with the terms of the Creation Deed
and he shall notify the Registrar of the waiver. The guardian, custodian
or trustee may submit a request to the Competent Court to approve the
waiver by the Beneficiary if the Beneficiary is not of full legal capacity.

Article 33 — Rights of the Beneficiary's Creditors in the Private Portfolio Funds ¶

Subject to the relevant legislations, the rights of third parties shall be limited
to the share of the Beneficiary of the Private Portfolio Benefits as determined
in the Creation Deed, and shall not extend to any other part of the Private
Portfolio Funds or any right towards the Private Portfolio Custodian.

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Chapter 6
Private Portfolio Private Portfolio Protector

Article 34 — Appointment of the Private Portfolio Private Portfolio Protector ¶

1. The Private Portfolio Creator may appoint the Private Portfolio Protector
and stipulate in the Creation Deed the method of appointing the Private
Portfolio Protector and determining his powers, granting him the right
to review the performance of the Private Portfolio Custodian, ask him
to carry out his duties and file a lawsuit against him in the event where
the Private Portfolio Custodian does not comply with his duties and
perform his obligations. It may also be stipulated in the Creation Deed to
grant the Private Portfolio Protector the authority to appoint the Private
Portfolio Custodian or add another Private Portfolio Custodian, dismiss
the appointed Private Portfolio Custodian, appoint a new Private Portfolio
Custodian to replace him, determine the fees of the Private Portfolio
Custodian, or other powers.
2. The Creation Deed may stipulate obtaining the approval of the Private
Portfolio Protector when the Private Portfolio Custodian exercises any of
his powers and authorities. If the Creation Deed stipulates the same, the
Private Portfolio Custodian shall not be liable for any losses resulting from
his exercise of such powers or authorities.
3. The Private Portfolio Creator may be appointed as the Private Portfolio
Protector, but the Private Portfolio Custodian may not be the Protector
thereof.
4. The Private Portfolio Protector shall not be considered a Private Portfolio
Custodian simply because he exercises the powers stipulated in the
Creation Deed or this Law.
5. The Private Portfolio Protector shall be granted fees in consideration of
the provision of his services if the Creation Deed stipulates the same, and
the Creation Deed may specify a mechanism for calculating such fees.
If the Creation Deed does not stipulate the fees of the Private Portfolio
Protector, the Competent Court may, at the request of the Private Portfolio
Protector, determine such fees.

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Article 35 — Prohibited Acts of the Private Portfolio Protector ¶

Subject to the provisions of the Creation Deed, the Private Portfolio Protector
shall not:
1. Place himself in any position that conflicts with the requirements of his
duties.
2. Benefit or enrich, directly or indirectly, due to his appointment as the
Private Portfolio Protector.
3. Allow or cause any other person to be enriched, directly or indirectly, from
the Private Portfolio.
4. Conclude deals with the Private Portfolio Custodian for his own account,
or any transactions related to the Private Portfolio funds that result into
his benefit or the Private Portfolio Custodian benefit, directly or indirectly.

Article 36 — Termination of Capacity of the Private Portfolio Protector ¶

1. The Private Portfolio Protector (if any) may resign from his position, by
virtue of a written notification submitted to the person who has the right
to appoint him according to what is specified in the Creation Deed. The
resignation shall be effective from the date of its submission, unless the
Creation Deed stipulates otherwise.
2. If the Creation Deed does not specify the person who has the right to
accept the resignation of the Private Portfolio Protector and appoint an
alternative thereof, the resignation request shall be submitted to the
Competent Court, with a copy to the Private Portfolio Custodian. The
Competent Court may accept or reject the resignation according to the
circumstances and interest of the Private Portfolio and appoint a new
Private Portfolio Protector.
3. Subject to the provisions of the Private Portfolio Creation Deed, the Private
Portfolio Protector shall lose his capacity as the protector of the Private
Portfolio in the event of any of the following:

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a. If he is dismissed from his position in accordance with the provisions
of the Creation Deed.
b. If he is dismissed from his position by the Competent Court in
accordance with the provisions of this Law.
c. In case of acceptance of his resignation.
d. In the event where a condition is met in the Private Portfolio that causes
him to be dismissed from his position or to lose his capacity.
e. If he accepts his appointment as the Private Portfolio Custodian.
Chapter 7
Revocation, Modification, Invalidation and Termination of the Private
Portfolio

Article 37 — Revocation of the Private Portfolio and Modification of its Terms ¶

1. The Private Portfolio Creator or his delegate during his life, may revoke the
Private Portfolio in whole or in part, modify its terms, or modify any power
or authority granted in the Creation Deed, provided that the right of the
Private Portfolio Creator to revoke or modify the Creation Deed is proven.
Modifying or revoking the terms of the Creation Deed, or exercising any
of the powers and authorities stipulated in the Creation Deed, shall not
affect any lawful act done by the Private Portfolio Custodian in relation to
the Private Portfolio prior to receiving notification with acknowledgement
of receipt of the modification or revocation of the Private Portfolio.
2. It shall not be permissible to exercise the power of revocation of the Private
Portfolio or any part thereof in the event where the Private Portfolio was
used to guarantee rights accrued to others.

Article 38 — Nullification of the Private Portfolio ¶

1. The Competent Court may, upon the request of any interested party or
law enforcement entities, as the case may be, nullify the Private Portfolio
in any of the following cases:

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a. One of the nullification reasons stipulated in this Law has been occurred.
b. If a judgement is issued by the Competent Court stating that the Private
Portfolio was created under the influence of coercion or by mistake,
or it was carried out by fraud or forgery, based on incorrect data in
violation of the Creation Deed and the provisions of this Law. Coercion,
error, fraud, or forgery shall not exist in the event of registration of the
Creation Deed in the Register, unless evidence is submitted to the
court confirming the same.
c. If it is proved that the purpose of its creation was to evade the Private
Portfolio Creator from paying debts, taxes or any other payable financial
obligations.
2. In the event of a judgement to nullify the Private Portfolio, the Private
Portfolio Funds shall devolve to the Private Portfolio Creator or to his heirs
in the event of his death, without prejudice to the rights of bona fide third
parties.

Article 39 — Termination of the Private Portfolio ¶

1. The Private Portfolio shall be terminated in any of the following cases:
a. The Private Portfolio Creator revoke the Private Portfolio in the event
where the Creation Deed stipulates that this is permissible.
b. Expiry of the duration of the Private Portfolio.
c. If the Creation Deed permits the termination of the Private Portfolio
based on a written request submitted to the Private Portfolio Custodian
from all existing Beneficiaries, provided that the Beneficiaries have full
capacity and have full rights to the Private Portfolio Funds.
d. If the Private Portfolio Custodian and the Private Portfolio Protector
(if any) decide that the continuity of the Private Portfolio is no longer
feasible to enable it to achieve its purposes and objectives and that
its continuity will be financially burdensome for the Private Portfolio
Funds.

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2. The Private Portfolio may be terminated by a decision of the Competent
Court, at the request of any interested party, in any of the following cases:
a. If the Private Portfolio Funds are not sufficient to cover the costs
necessary for the continuity of the Private Portfolio.
b. In the event of absence of a Beneficiary or any person who is considered
a Beneficiary from the Private Portfolio, in accordance with the terms
of the Creation Deed of the Private Portfolio.

Article 40 — Consequences of the Termination of the Private Portfolio ¶

1. The Private Portfolio Funds shall be distributed, upon its termination,
according to the method of distribution determined by the Creation Deed,
and if the Creation Deed does not specify the method of distribution,
then the Private Portfolio Funds shall be returned to the Private Portfolio
Creator if the Private Portfolio is terminated during his life or to his heirs
if it is terminated after his death.
2. The Private Portfolio Custodian shall request the Competent Court to
issue a decision to terminate the Private Portfolio in any of the following
two cases:
a. If the Creation Deed does not stipulate the method of distributing the
Private Portfolio Funds.
b. If the Private Portfolio Custodian is unable to distribute the Private
Portfolio Funds according to the terms of the Creation Deed due to
the absence of a Beneficiary or the inability to determine a Beneficiary.
3. The Private Portfolio Custodian shall pay all the financial obligations of
the Private Portfolio before distributing the Private Portfolio Funds, and
he may keep some of the Private Portfolio Funds in order to sell them, or
obtain appropriate guarantees to cover any expenses incurred by him or
that he may incur in the future related to managing the Private Portfolio,
or to secure any liabilities, present or future, conditional or unconditional,
that may be incurred by the Private Portfolio.

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4. If the right of one of the Beneficiaries to the Private Portfolio Benefits
expires, the effects of the termination shall apply to that Beneficiary,
without prejudice to the rights of the rest of the Beneficiaries.
Chapter 8
Accreditation and Registration of the Private Portfolio

Article 41 — The Committee ¶

A permanent committee called the "Private Portfolio Accreditation
Committee" shall be formed by a resolution of the Chairman of the
Department of Economic Development, headed by a senior employee of the
Department of Economic Development and the membership of four experts
and consultants as follows:
a. Two members from the Judicial Department nominated by the Judicial
Department.
b. Two members from the Department of Finance nominated by the
Department of Finance.
The Private Portfolio Accreditation Committee shall entrusted with the
following:
1. Review the structure, terms and conditions of the Private Portfolio
presented to it by its Creator, prior to the completion of the creation
process, with the aim of expressing an opinion on the extent to which
it is compatible with the provisions of the Law and does not contradict
the public policy in the State. Determining shares for the Beneficiaries
in the Creation Deed that are different from any shares determined
by any legislation in force in the Emirate shall not be considered as
violation of public policy.
2. Issue a validity certificate of the Private Portfolio, so that it can be
registered by the Registrar.
3. Any other related tasks assigned to the Committee by the Chairman of
the Department of Economic Development.

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4. The Chairman of the Department of Economic Development, after
coordination with the Judicial Department and the Department of
Finance, shall issue the decisions regulating the functions of the
committee, the procedures to be followed before it, and the fees that
shall be collected before providing the service.

Article 42 — Register ¶

A register shall be established in the Department of Economic Development
in the Emirate to record the Creation Deed. A decision shall be issued by the
Chairman of the Department of Finance to organise the Register. The decision
shall include the method of operation of the Register, the mechanism for
organising it, the procedures followed, the conditions related to registration
in it and its use, the data to be included in it, the papers and documents
issued by it, the methods of entering any modification to the Creation Deed
and the electronic means of using the same, and any other data necessary
to achieve the purpose of registering the Creation Deed.

Article 43 — Registration of the Private Portfolio in the Register ¶

1. The Private Portfolio Creator, or the Private Portfolio Custodian, as the
case may be, shall submit a request to register the Creation Deed in the
Register, while providing all information necessary to update the Register.
2. The Private Portfolio and any amendments thereto shall enter into force,
and their effects shall be in accordance with the provisions of this Law,
once the procedures for registering the Creation Deed in the Register are
completed in accordance with the provisions of this Law.
3. An official certificate shall be issued by the Concerned Authority stating
that the Creation Deed has been registered in the Register. This certificate
and the Creation Deed shall be considered an official document in
accordance with the provisions of the local and federal legislations in

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force in the Emirate and shall be an evidence against all unless it is proven
that either of them has been forged by the legally prescribed methods.
4. The registration of the Creation Deed after reviewing the structure,
terms, conditions, and clauses of the Private Portfolio that are presented
to the Committee by the Private Portfolio Creator in accordance with
the provisions of Article (41) of this Law and the opinion issued by the
Committee regarding the compatibility of the Private Portfolio and the
Creation Deed with the provisions of this Law and their non-conflict with
the public policy in the State, as well as the issuance by the Committee
of a certificate of validity and enforcement of the Private Portfolio, shall
be considered conclusive evidence binding on the courts in the Emirate
that the Creation Deed and its provisions, the Private Portfolio and the
distribution of shares do not conflict with the legislations in force in the
Emirate or with the public policy in the State.

Article 44 — Registration of the Private Portfolio Funds in Official Registers ¶

Subject to Article (43) of this Law, any legal transactions that occur on the
movable and immovable Private Portfolio Funds in the name of the Private
Portfolio or any of the companies wholly owned by the Private Portfolio shall
be recorded in the official registers of each of these funds in accordance
with the federal or local legislations in force in the Emirate. In all cases, it
shall not be necessary for the validity of the creation or enforcement of the
Private Portfolio to register the Private Portfolio Funds or any modifications
thereto in the Register.
The Private Portfolio Custodian shall have all powers and authorities over the
Private Portfolio Funds, including any act of transfer of ownership according
to the Creation Deed. The Private Portfolio Custodian shall have the authority
to sign documents related to the disposal of the Private Portfolio Funds,
without the need for the intervention of the Private Portfolio Creator or the
Beneficiary.

Article 45 — Perusing the Register and Obtaining an Authenticated Certificate thereof ¶

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1. Each of the Private Portfolio Creator, the Private Portfolio Custodian,
and the Private Portfolio Protector, as the case may be, may peruse the
Register with respect to the Private Portfolio, and obtain an authenticated
certificate of the data or information recorded in the Register, subject to
any related conditions stipulated in the Creation Deed and this Law.
2. It shall not be permissible to disclose any data or information recorded
in the Register 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 or the Public Prosecution.

Article 46 — Confidentiality ¶

1. The Private Portfolio Custodian shall be prohibited from disclosing to any
person any data, information or documents related to the Private Portfolio
or its accounts except within the limits stipulated in the Creation Deed,
this Law or as required by the nature of transactions related to the Private
Portfolio or pursuant to a judicial order.
2. As an exception to Clause (1) of this Article, the Creation Deed may
stipulate the terms and conditions that specify the scope for the
Beneficiaries or the Private Portfolio Protector to have access to specific
details in the Private Portfolio, including details related to the method of
distributing the Private Portfolio Benefits to the Beneficiaries, and the
terms of decision-making by the Private Portfolio Custodian.
Chapter 9
Penalties

Article 47 — Most Severe Penalty ¶

The penalties provided for in this Law shall be without prejudice to any more
severe penalty provided for in any other law.

Article 48 — Penalty for harming to the Private Portfolio or the Private Portfolio Creator ¶

and Violation of some Articles of this Law

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Without prejudice to civil liability, whoever violates or causes damage to the
Private Portfolio, the Private Portfolio Creator, or any Beneficiary as a result
of his wilful violation of the provisions of Clauses (2), (3), (4), (6) and (9) of
Article (19), Article (22), Clauses (1), (3), (8), (9), (11) and (12) of Article
(23), Clauses (1), (2), (3), (5) and (6) of Article (26), Article (35), Clause (2)
of Article (45), or Article (46) of this Law, shall be punished by imprisonment
and/or a fine not exceeding (1,000,000) one million Dirhams.

Article 49 — Penalty for False Impersonation of the Private Portfolio Custodian and ¶

Violation of Clause (5) of Article (18)
Without prejudice to civil liability, whoever deliberately impersonates the
Private Portfolio Custodian and exercises his powers in this capacity, or
violates the provisions of Clause (5) of Article (18) of this Law, shall be
punished by imprisonment for a period not exceeding one year and/or a
fine not exceeding (500,000) five hundred thousand Dirhams.
Chapter 10
Supplementary and Final Provisions

Article 50 — Competent Court ¶

A specialised court called the “Private Portfolio Court” shall be established
in the Judiciary Department, which exclusively handles disputes arising
from the application of the provisions of this Law, with regard to the Private
Portfolio created according to its provisions, or its Creation Deed.

Article 51 — Subjection of the Private Portfolio to the Provisions of the Law ¶

The Private Portfolio shall not be considered a “trust” within the meaning
specified in Federal Law by Decree No. (19) of 2020 concerning Trust and
any amendments thereto, or laws replacing the same. The Private Portfolio
shall be subject to the provisions of this Law and the resolutions issued
pursuant thereto and to the Creation Deed only with no other legislations.

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Article 52 — Time Limitation of the Lawsuit ¶

1. A lawsuit filed by any interested party against the Private Portfolio
Custodian for the Private Portfolio Custodian's breach of his obligations
towards that Beneficiary shall not be heard after the lapse of (3) three
years from the date of receiving the external auditor report of the Private
Portfolio or from the date of being aware of the breach of the Private
Portfolio, whichever is earlier.
2. In cases where the Beneficiary is a minor, the period referred to in Clause
(1) of this Article shall be calculated from the date on which the minor
reaches the age of maturity.
3. The lawsuit of the Private Portfolio Custodian against another Private
Portfolio Custodian in the event of several Private Portfolio Custodians, or
any former Private Portfolio Custodian, shall not be heard for breaching
the Private Portfolio after the lapse of (3) three years from the date
of termination of his appointment as Private Portfolio Custodian in
accordance with the provisions of this Law.
4. No other lawsuit shall be heard against the Private Portfolio Custodian
for any breach of the Private Portfolio after the lapse of (15) fifteen years
from the date of breach of the Private Portfolio.
5. As an exception to the provisions of the Clauses contained in this Article,
the time limitation shall not preclude the following:
a. Hearing a lawsuit of fraud or deceit against the Private Portfolio
Custodian, if the acts of fraud were committed by him or by a third
party and the Private Portfolio Custodian was aware of it when the act
was committed or he should have known about it inevitably.
b. Hearing a lawsuit to redeem the Private Portfolio Funds that he
transferred to himself or to a third party in violation of the terms of the
Creation Deed or the provisions of this Law.

Article 53 — Electronic Means ¶

Within the scope of the binding force of the electronic means stipulated in
this Law, the terms and conditions stipulated in aforementioned Federal Law

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by Decree No. (46) of 2021 and the legislations regulating the same, shall
be observed.

Article 54 — Fees ¶

The Executive Council, based on a proposal by the Chairman of the
Department of Finance, in coordination with the Department of Economic
Development, shall issue a resolution specifying the fees arising from the
application of the provisions of this Law.

Article 55 — Resolutions Necessary for the Implementation of the Provisions of this Law ¶

The Chairman of the Department of Economic Development, after
coordination with the Department of Finance, shall issue the necessary
resolutions to implement the provisions of this Law.

Article 56 — Abrogation of the Contrary Provision ¶

Any provision that is contrary to the provisions of this Law shall be repealed.

Article 57 — Publication and Entry into Effect of the Law ¶

This Law shall be published in the Official Gazette and become effective on
the day following the date of publication thereof.
Mohamed bin Zayed Al Nahyan
Ruler of Abu Dhabi
Issued by us in Abu Dhabi
Date: 14 March 2023
Corresponding to: 22 Shaaban 1444 Hijri

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