Dubai has established itself on the global investment funds industry through the Dubai International Financial Centre Free Zone (DIFC) which is the emirate’s most developed and attractive economic zone when it comes to setting up an investment fund.
Foreign investors interested in creating an investment fund in the UAE can choose Dubai or DIFC in order to benefit from various incentives. Our company formation consultants in Dubai can offer information on the legislation related to the establishment of an investment fund.
Types of investment funds acknowledged in Dubai
The Collective Investment Fund Regime is the main law providing for the creation of a fund in Dubai International Financial Centre. The DIFC Authority recognized the following types of funds:
- local or domestic funds;
- external funds;
- foreign funds.
Local funds can further be divided into:
- public funds;
- exempt funds;
- qualified investor funds.
No matter the type of fund one wants to set up in Dubai or DIFC, it should be noted that a fund manager or an asset manager must be appointed to administer the fund. With respect to the opening of the Dubai investment fund, a prospectus must be drafted and filed with the Financial Authority in Dubai or the DIFC Authority for approval.
Our Dubai company formation agents can offer more information on the types of funds mentioned above.
How to register an investment fund in Dubai
As mentioned above, the investment fund can be established following the preparation and approval of its prospectus. Prior to these steps, the investor must select and register a vehicle that will be used for the administration of the fund. The 3 types of vehicles recognized by the authorities are:
- the investment company;
- the investment trust;
- the investment partnership.
These types of entities must be registered with the Dubai Economic Development Board. The minimum amount required to set up a qualified investment fund is 1 million USD. Also, the fund must have at least 50 qualified investors in order to be set up.
For full information on the requirements related to the establishment of investment funds, please contact us. Our company incorporation agents in Dubai can also assist with the company formation procedure.