Private equity (PE) is in the attention of numerous entrepreneurs who want to establish funds and raise capital for different projects, many of them related to technology, acquisitions, and even the development of new company products. International investors interested in private equity in Dubai can discuss this topic with our company formation agents in Dubai who can manage the formalities in this sense.
What is private equity in Dubai?
Private equity is considered an investment fund, or a financing form destined to varied companies, mostly with history and background. There are private equity firms established with the scope of business investment for value increase, developments and profits. We present you a few attributes of private equity firms that you should consider and analyze:
- There are similarities between PE firms and venture capital (VC) firms, due to the type of investments that can be made.
- PE firms can own 50% or more in invested companies in Dubai.
- Private equity investors deal with limited partners to raise capital and form a fund.
- If the fundraising target is achieved, the private equity fund is closed, and the capital is invested in a company or more.
- A private equity fund can be subject to investments ranging from USD 250,000 to USD 25 million.
- Limited partners are entitled to receive a share of the profits if the investment is successful.
Private equity is considered a great type of investment strategy that can be easily directed to startups in Dubai, but also companies with history on the market. International entrepreneurs interested in this type of investment fund can discuss further details with our specialists in company formation in Dubai.
Differences between PE and VC
Besides similarities, there are also differences between private equity and venture capital. For instance, a VC is often directed to IT companies or other activities developed in this sector, while a PE is normally selected by experienced investors for specific companies.
What is private equity EFT?
Private equity exchange-traded funds (EFT) trace an index of companies publicly traded that invest in PE. There are specific management expenses, however, there are no minimum investment requirements. If you need more details on this topic, please get in touch with our company formation agents in Dubai. Our specialists can help both local and foreign entrepreneurs start a company in Dubai.
Support for investors interested in private equity in Dubai
If you believe that it is time to have a private equity fund you are invited to get in touch with our team of company formation agents in Dubai who have experience in this field. One of our consultants can guide you throughout the registration of a PE by managing all the formalities implicated. Plus, you can benefit from guidance and support right from the start, in order to make the proper decision for the type of investment you want to make, respecting the applicable rules and regulations.
Making investments in Dubai
Dubai is a top business destination, preferred for the multitude of possibilities offered and the numerous advantages. The financial field is certainly prolific and hosts a large number of companies with foreign capital that enjoy huge profits and more.
Dubai offers the possibility to develop a business in special economic zones where the taxation system is almost non-existent, and the company owners enjoy both 100% ownership and other benefits. There is no corporate income tax for companies established in Dubai’s special economic zones.
In addition, the experienced workforce, the simplified process of registering a company, access to international business markets, well-developed infrastructure, and the possibility of developing the activities and the company in a relatively short time are some of the top features of the business climate in Dubai.
We also present some statistical data about the economic and business direction of the UAE:
- In matters of total FDIs, UAE registered around USD 154 billion in 2019.
- About USD 14 billion represented the total value of the greenfield investments in UAE in the same year.
- The 2020 Doing Business report ranked UAE 16th out of 190 worldwide economies due to simplified business procedures.
- UAE’s domestic market is connected at an international level with important players to serve the best business climate for investors and entrepreneurs.
- There are more than 122 economic activities where 100% ownership is accepted in UAE.
Entrepreneurs interested in private equity in Dubai can contact our company formation specialists in Dubai for information and assistance.