18 April 2006 — New Laws for Collective Investment Funds in DIFC
Legislation to regulate the managed funds industry within the DIFC has been enacted by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai.
The Collective Investment Law 2006 was sponsored by the Dubai Financial Services Authority which has also issued detailed Collective Investment Rules. This Law sets out the framework for regulating funds and permits the operation of various types and categories of collective investment funds in the DIFC including property funds, Islamic funds, hedge funds, fund of funds and private equity funds.
Mr. David Knott, the Chief Executive of the DFSA, predicted that the new law and rules will open the way for a major new financial sector within the DIFC:
"This package of legislation follows extensive consultation between the DFSA and the managed funds industry over recent months. The result is a tailor-made regime that will meet demand for a modern, well regulated Centre for funds management and administration within the Middle East."
By allowing for flexibility and innovation within a prudent regulatory framework the DIFC is now established as an ideal operating environment for the managed funds industry" added Mr. Knott.
Dr. Habib Al Mulla, Chairman of the DFSA stated:
"The implementation of this law is one of the DFSA's final steps in establishing regulation across a broad range of financial activities within the DIFC. The addition of the funds industry will be a further stimulant to the DIFC's expansion and to its growing reputation as the domicile of choice for financial services in the region."