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Dubai regulator eases rules for private equity fund managers

20 Aug 2014

dubai-5_sqDubai’s financial regulator has amended the region’s financial rules to attract more fund managers, including private equity funds.

This week the Dubai Financial Services Authority (DFSA) announced that it has amended the Collective Investment Law 2010 to allow the creation of a new category of fund, called a Qualified Investor Fund (QIF), which will include private equity and hedge funds.

The QIF would be available to professional investors willing to make an investment of at least $500,000 with a maximum of 50 investors per fund. This is lowered from a previous minimum investment of $1m.

The new QIF rules also stipulate lower regulation of funds specifically designed for higher net worth investors.

The new rules, which take effect from tomorrow (August 21), are designed to attract more investment into Dubai from richer and more risk-tolerant investors.

To accommodate fund managers the DFSA is also consulting on lowering both the authorisation and annual fees from $10,000 to $5,000. This will be decided in 2015.

The body stated, “One the basis of the recent benchmarking exercise with other comparable jurisdictions, the DFSA has concluded that regulatory costs of setting up and carrying on certain types of fund management business in the DIFC appear to be relatively high.”

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