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DIFC Launches Qualifying Investor Funds

by Lorys Charalambous, Lowtax.net, Cyprus
21 October, 2014

The Dubai International Financial Center (DIFC), a free zone in the United Arab Emirates (UAE), has introduced a new Qualified Investor Fund (QIF) regime.

Under the finalized rules, a QIF may have no more than 50 investors who must make a minimum investment of USD500,000. In addition, QIFs may only offer units to professional and institutional investors by way of private placement.

The introduction of the new fund category is intended to improve the attractiveness of the Dubai International Financial Center for funds business, by easing oversight on persons seen to be sufficiently experienced as investors. The category was sought after inquiries concerning the existing Exempt Fund category, which has a lower minimum subscription limit of USD50,000 and is subject to greater scrutiny.

Amendments to the Collective Investment Law 2010 to introduce the new fund category were enacted on July 24, 2014. The revised law came into force on August 21, 2014 and relevant changes to the Collective Investment Rules (CIR) Module of the DFSA Rulebook came into effect on the same day. The new fund category is immediately available for use.

The free zone offers firms zero percent income tax guaranteed for 50 years, 100 percent foreign ownership, no exchange controls, and a legal system based on English common law.


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