Investors interested in opening an investment fund in Dubai enjoy a modern regulatory regime for the types of available funds. Dubai’s fund system is consistent with current international standards. The Dubai International Financial Center (DIFC) is the main place for a Dubai-based fund. The Dubai Financial Services Authority (DFSA) is the regulating agency of the DIFC and the one that imposes the rules and regulations for investment funds, investment restrictions and transaction requirements.
Main categories of UAE investment funds
The regulatory framework applicable in UAE offers the following types of investment vehicles: mutual funds, equity mutual funds, fixed income mutual funds, hybrid mutual funds, exchange traded funds and hedge funds. A common way to start an investment project in this country is by registering a hedge 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.
What are the main documents for starting a UAE fund?
The registration documents necessary for a UAE fund, regardless if it is set up as an open-ended structure or as a closed-ended vehicle, are the same. The documentation necessary is rather extensive and it is advisable to seek professional representation during the registration of the fund, considering that the documents have to be submitted in an Arabic version. Some of the required documents are presented below:
- A completed application form required for the issuance of the license;
- The prospectus and the Key Investor Information Document (KIID);
- Information on the selected legal entity for the fund, as well as information on its corporate structure;
- Presentation of the legal responsibilities of the applicant and the fund’s internal procedures;
- The fund’s prospectus, its main statutory document, must be written in Arabic and must contain information on all aspects of the fund.
How to register an investment fund in Dubai
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 which 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.