Fund Setup in UAE

The United Arab Emirates (UAE) has become one of the leading destinations for fund formation in the Middle East due to its robust financial ecosystem, international connectivity, and business-friendly regulations. The country offers a stable currency, unrestricted capital movement, and access to global investors. With strong frameworks in place, the UAE provides an attractive environment for setting up investment funds that cater to both regional and international markets.

Service Overview

Fund setup in the UAE involves choosing the right regulatory jurisdiction and structuring the fund in accordance with applicable rules. The three primary jurisdictions are:

Securities and Commodities Authority (SCA) – regulates onshore funds.
Dubai International Financial Centre (DIFC) – regulated by the Dubai Financial Services Authority (DFSA).
Abu Dhabi Global Market (ADGM) – regulated by the Financial Services Regulatory Authority (FSRA).

Each jurisdiction offers distinct frameworks with specific requirements for fund managers, licensing, capital adequacy, and governance. The choice depends on the type of investors targeted, investment strategy, and distribution model.

Types of Funds in the UAE

The UAE recognises a range of investment vehicles suitable for different investor categories. Common structures include:

Private Equity Funds – focus on direct investment in companies, often with a long-term horizon.
Venture Capital Funds – designed to support early-stage and high-growth businesses.
Hedge Funds – utilise diverse strategies for risk management and returns.
Alternative Investment Funds – cover non-traditional assets such as commodities, infrastructure, or specialised projects.
Mutual Funds – pooled structures for diversified investment across asset classes.
Real Estate Funds – target property and development projects in the UAE and abroad.
Offshore Funds – set up for international investors with favourable tax benefits.
Shariah-Compliant Funds – structured in line with Islamic finance principles.
Family Office Funds – tailored vehicles for managing family wealth and succession planning.

Funds may be structured as public funds, exempt funds, or qualified investor funds, depending on the investor base and regulatory requirements.

We offer a range of flexible, fixed fee packages that can be customised to accomodate your particular legal needs.

Solutions for Fund Setup

Establishing a fund in the UAE involves several steps, which vary by jurisdiction. Common elements include:

Drafting a Private Placement Memorandum (PPM) and Articles of Association.
Appointing a licensed fund manager and custodian.
Registering with the appropriate regulatory authority (SCA, DFSA, or FSRA).
Obtaining necessary approvals for distribution and marketing.
Establishing governance frameworks, compliance systems, and ongoing reporting mechanisms.

Benefits of Fund Setup in the UAE

Setting up a fund in the UAE offers a range of advantages:

Strong regulatory environment with globally recognised standards.
Access to a diverse pool of regional and international investors.
Economic and political stability with a well-established financial sector.
Free movement of capital and 100% foreign ownership in designated zones.
Availability of both conventional and Shariah-compliant structures.
Growing presence of institutional investors and rising assets under management in DIFC and ADGM.
Strategic geographic location bridging Asia, Europe, and Africa.

Regulatory Comparison: Mainland UAE, DIFC & ADGM

Mainland UAE (SCA) – Primarily for public and retail funds with strong oversight from the Securities and Commodities Authority.
DIFC (DFSA) – Known for international standards, suitable for private funds, hedge funds, and venture capital vehicles.
ADGM (FSRA) – Flexible structures aligned with common law, often preferred for private equity and alternative investment funds.

Each jurisdiction has its own licensing processes, investor protection measures, and reporting obligations, which should be carefully assessed before choosing the most suitable option.

Private Equity Fund Setup in UAE

Venture Capital Fund Setup in UAE

Hedge Fund Registration in UAE

Alternative Investment Fund (AIF) Registration UAE

Mutual Fund Registration in UAE

Real Estate Fund (REIT/InvIT) Setup in UAE

DIFC Fund Setup in UAE

ADGM Fund Formation in UAE

Shariah-Compliant Fund Setup in UAE

Family Office Fund Structuring in UAE

Required Documentation & Compliance

Setting up a fund in the UAE requires detailed documentation and adherence to compliance standards. Key documents include:

Private Placement Memorandum (PPM).
Articles of Association or equivalent.
Fund Management Agreement.
Custodian and administrator agreements.
Regulatory filings and disclosure statements.

Compliance involves regular audits, submission of annual reports, anti-money laundering (AML) procedures, and adherence to investor protection guidelines.

Setting Up a Fund in the UAE: Process Overview

Select the jurisdiction based on investor base and strategy.
Prepare the fund structure and draft required documents.
Appoint a licensed fund manager, custodian, and administrator.
Submit applications to the regulatory authority for approval.
Complete legal registrations and operational setup.
Begin capital raising, marketing, and investment activities.

Fund setup in the UAE is a structured process that requires careful consideration of regulatory frameworks, investor categories, and fund strategies. Ronin Legal supports businesses and investors in navigating these requirements effectively.