The Dubai International Financial Centre (DIFC) is one of the world’s top financial hubs, attracting investors, asset managers, and businesses from across the globe. It offers a secure and transparent environment to establish investment funds in Dubai that meet international standards.

If you’re a business owner, entrepreneur, or investor looking to set up a regulated investment fund in the UAE, here’s a simple, step-by-step guide to how DIFC fund setup works, without the complicated legal jargon.

What is an Investment Fund?

In simple terms, an investment fund is a pool of money collected from investors to invest in assets such as shares, bonds, real estate, or private projects. The aim is to grow the investment and share the returns among investors.

Why Set Up an Investment Fund in the DIFC?

1. International Reputation: DIFC operates under an English common law framework and is regulated by the Dubai Financial Services Authority (DFSA), making it a trusted jurisdiction for global investors.
2. Tax Benefits: Zero tax on income and profits for DIFC funds.
3. Strategic Location: Access to markets in the Middle East, Africa, and South Asia.
4. Investor Confidence:Transparent regulations, investor protection, and a strong legal system.

Types of Funds in the DIFC

DIFC offers different fund structures depending on your target investors and investment strategy:

1. Public Funds: Available to retail investors; higher regulatory oversight.
2. Exempt Funds: For professional investors with minimum investment requirements; faster approvals.
3. Qualified Investor Funds (QIFs): For institutional or experienced investors; quickest set-up and lighter regulations.

Step-by-Step Guide to DIFC Fund Setup

Step 1: Choose Your Fund Type Select from Public, Exempt, or Qualified Investor Funds based on your target investors and goals.

Step 2: Appoint Key Roles You’ll need a DFSA-licensed fund manager, a custodian to safeguard assets, and a fund administrator.

Step 3: Prepare Fund Documents Create an offering document that outlines your investment strategy, risk factors, fees, and investor rights.

Step 4: Apply to the DFSA Submit your application for review. For Exempt Funds and QIFs, approval can take as little as 6 weeks.

Step 5: Launch Your Fund Once licensed, you can market your fund and begin accepting investments.

Key Takeaways

Setting up a fund in the DIFC is not just for global financial institutions, it’s also an opportunity for regional entrepreneurs and businesses seeking a regulated, tax-efficient investment vehicle in Dubai. With the right advisory partner, the process can be fast, compliant, and investor-friendly, especially for professional or qualified investor funds.

At MBG Corporate Services, we guide you through every stage, from structuring and DFSA licensing to documentation and compliance, so you can focus on growing your fund.

Thinking about a DIFC fund setup? Contact MBG Corporate Services today to get started.