Open an Investment Fund in Dubai

Entrepreneurs who want to open an investment fund in Dubai enjoy a modern regulatory regime for the types of available funds. Our lawyers are at your service if you want to create an investment vehicle and need registration support.

Quick Facts
Legislation applicable	Fund rules of the Capital Market Authority (formerly SCA); in DIFC, the DIFC Collective Investment Law No. 2 of 2010
Types of funds that can be set up in Dubai	– Islamic funds, – real estate investment funds, – equity funds, – hedge funds, – exempt funds, etc.
Legal forms of the investment vehicle	– private limited liability company, – public company, – partnership
Types of investors accepted	Professional, qualified, non-professional, non-qualified investors.
Authorization requirement (YES/NO)	Yes, however, exceptions also apply.
Issuing authority	Capital Market Authority (federal; formerly the Securities and Commodities Authority - SCA), or the DFSA in DIFC
Possibility to create foreign funds in Dubai (YES/NO)	Yes
Share capital requirements	The minimum amount depends on the legal form used to create the fund.
Registration steps	– documents drafting, – legal vehicle incorporation with the Department of Economy and Tourism (DET), – CMA (formerly SCA) authorization
Registration documents	– the Private Placement Agreement, the prospectus, – the company’s Certificate of Incorporation, – the investor subscription agreement, – the contract with the management company
Special free zone (if any)	Dubai International Financial Centre
Taxation of investment funds in Dubai	9% corporate tax, however, exemptions also apply, provided specific conditions are met.
Registration timeframe (approx.)	3 to 6 months
Advantages of starting a fund in Dubai	– full foreign ownership for certain structures, – stable economy, – access to dedicated free zones
Support in launching an investment fund in Dubai (YES/NO)	Yes, our Dubai lawyers can assist with the creation of investment funds.

Can I set up an investment fund in Dubai if I am a foreigner?

Yes.

What are the steps to open an investment fund in Dubai?

choose the type of investment fund and its jurisdiction;
prepare the documents for registration (they depend on the legal structure of the fund);
appoint a fund manager (a licensed manager must be nominated);
obtain approval from the regulatory authority (it depends on the jurisdiction);
open a bank account for fund operations.

What are the jurisdictions where I can set up an investment fund in Dubai?

You can choose between:

Mainland Dubai, in which case approval must be obtained from the Capital Market Authority (formerly the Securities and Commodities Authority);
Dubai International Financial Centre, with approval from the Dubai Financial Services Authority.

Here is also an infographic on how to create an investment fund:

What types of investment funds can I open in Dubai?

Exempt funds, which require a minimum investment of USD 50,000, and which allow a maximum number of 100 investors;
Public funds, which are created as open-ended structures, and can pool capital from retail, professional, and institutional investors without a minimum investment amount and limitations on the number of participants;
Qualified investors funds, which can raise capital from high-net-worth individuals, institutional and experienced investors. They require a minimum investment of USD 500,000 per participant, and the maximum number of investors accepted is 50.

As for the special funds in Dubai, these include the following:

Islamic funds: set up and managed according to the Shari’a system;
hedge funds;
property funds;
private equity funds;
real estate investment trusts (property funds).

What are the documents required to open an investment fund in Dubai?

fund prospectus or private placement memorandum;
investment management agreement;
subscription contracts;
a business plan;
details of the owner(s);
the agreement for investment management;
compliance documentation (anti-money laundering and know-your-client rules).

Our law firm in Dubai can offer more information on the documents required to create a fund in the Emirates.

We have prepared a video about how to open an investment fund in Dubai:

Can I operate a foreign fund in Dubai?

Yes, there are no restrictions for foreign investors interested in setting up investment funds in Dubai. Overseas funds can also operate in this Emirate. International investment funds must first obtain permission from the Capital Market Authority (formerly SCA).

The foreign fund must meet two requirements before the CMA will approve it:

it must be created in a foreign country and be supervised by a body that is the equivalent of the CMA;
it must have a license in its home country to promote units for an initial public offering.

For more information, please contact our law firm in Dubai. Our lawyers can also help you open a company in Dubai with no minimum share capital required for an LLC.