How to Structure an Investment Fund in the UAE

How to Structure an Investment Fund in the UAE

After overcoming the COVID-19 pandemic quickly and becoming one of the most open countries in the post-pandemic era, the United Arab Emirates has proven a high level of security and financial stability which has attracted high and ultra-high net worth individuals to secure their assets.

In addition to being the second-largest Gulf Economy, the United Arab Emirates holds an advantage of having a friendly tax environment where some jurisdictions allow companies to pay 0% tax on profits for the first 50 years. With the current revival in the tourist industry and the booming real estate market surpassing pre-pandemic economic milestones, the UAE has become a desirable jurisdiction to invest in.

Best jurisdictions to structure and investment fund in UAE

To structure an investment fund in the UAE, one should choose one jurisdiction to secure its assets. The Abu Dhabi Global Market (“ADGM”) and the Dubai International Financial Centre (“DIFC”) are two financial free zones in which investment zones are incorporated.

Due to its international standards and frameworks built on the English Common Law, the ADGM has gained popularity over the years for investment funds matters. This jurisdiction is regulated by Abu Dhabi’s Financial Services Regulatory Authority (“FRSA”).

The DIFC, on the other hand, has gained traction over the last few years for those looking for an attractive jurisdiction to set up investment funds in the GCC region. The Dubai Financial Services Authority (“DFSA”) is in charge of regulating this jurisdiction.

To select the optimal jurisdiction for each case, one should have comprehensive experience in the investment fund industry, knowledge of the fund life cycles and technical know-hows on structuring an optimal investment fund in both jurisdictions. Investors should also consider the permitted structures, reporting requirements, eligible investors and custodians, minimum subscription and offering, financial authorities’ fees, and the timeline for application, incorporation and launch stage.

Legal Advice on Structuring Investment Funds in Dubai and Abu Dhabi

Legal consultants such as lecocqassociate can offer valuable advice on how to structure an investment fund in the UAE. They can provide advice regarding fund jurisdiction, fund formation, drafting the prospectus and other required documents for structuring an Abu Dhabi (specifically ADGM), mainland or Dubai investment fund (in the DIFC).

Lecocqassociate has a presence in the ADMG as a Legal Consultancy and the DIFC as a Structuring Advisory Practice. In addition to advising on favorable fund jurisdictions, formation and structure, they coordinate with the competent financial services regulatory authorities, provide General Partners for funds, advise on marketing, exit strategies, and re-domiciliation of funds as well as introduce professional asset managers.

Lecocqassociate can offer vast financial regulation advice in the UAE and overseas. The company worked with notable crypto firms, and structured and incorporated the UAE’s first crypto-token investment fund.

The team comprises culturally and linguistically diverse professionals with a proven track record in the legal landscape. They possess integrity, emotional intelligence and creativity to built tailor-made solutions to any case.

Hooriya Qazal Rajput leads the firm in the UAE. She has over 12 years of experience successfully structuring private banks and investment funds for ultra-high net worth family offices and individuals in the United Arab Emirates. She specializes in advising on the structuring and set up of regulated entities, including investment fund structures. Hooriya Qazal Rajput is a University of London graduate with a Mutual Fund Management Post Graduate Diploma from FitzWilliam Group, London.