THE LARGEST FUND CENTRE IN THE REGION

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1 difc.ae THE LARGEST FUND CENTRE IN THE REGION

2 WE UNDERSTAND WHAT S IMPORTANT TO YOU We understand there are numerous important criteria that impact your fund domiciliation decision making process. Our offering and experience makes us your natural choice. THE DIFC IS THE REGION S LEADING FUND DOMICILE The DIFC has developed an effective legislative and business environment that allows our clients to take advantage of investment opportunities across regional and global markets. DIFC is the location of choice for approximately 200 Wealth & Asset Management firms. INVESTOR CONFIDENCE Regulatory oversight Controls on fund and the manager Common law framework Due diligence on marketing of funds LEGAL AND REGULATORY SYSTEM UK Common law Commercial familiarity World-class regulatory framework through the Dubai Financial Services Authority (DFSA) SUPPORT AND CHOICE Availability of Fund Service Providers Fund Administrators Regulated Fund Functionaries INVESTOR CONFIDENCE LEGAL AND REGULATORY SYSTEM SUPPORT AND CHOICE TAX BENEFITS FAST TRACK PROCESSING Custodians Lawyers Auditors TAX BENEFITS Zero rate of tax for 50 years guarantees tax free transfer of profit, capital or assets from 2004 Zero rated tax for employees FAST TRACK PROCESSING QIF Fast Track Fund approved in two business days, which is highly competitive in comparison with other fund domiciles 02 03

3 FUND STRUCTURES In common with other popular fund domiciles globally, the DIFC caters for the creation and regulation of three types of DIFC-domiciled funds: Public Funds Exempt Funds Qualified Investor Funds (QIF) Public Fund Exempt Fund QIF Investor requirements Professional Clients and Retail Clients Professional Clients only Manner of offering Private placement and public offering Private placement only Maximum number of investors Unlimited Minimum subscription N/A USD 50,000 USD 500,000 Regulatory approval Involved regulation Lighter approach Light touch Prospectus requirement Yes: Detailed prescribed disclosure content Yes: Limited prescribed disclosure content Very limited: Information memorandum Permitted to list on exchange Yes No Given the light touch approach of the DFSA with respect to QIFs and the relative speed in setting up QIFs, a number of regional managers have recently chosen to domicile funds in the DIFC as QIFs, rather than in other offshore or tax-free jurisdictions

4 FUND TYPES, VEHICLES AND STRUCTURES The DIFC framework supports both domestic and foreign funds. DOMESTIC FUNDS Fund manager based in DIFC or foreign manager Fund set up and domiciled in DIFC Can be marketed within DIFC and from the Centre FOREIGN FUNDS Fund manager based in DIFC or foreign manager Not set up or domiciled in DIFC Can be marketed within DIFC and from the Centre EXTENSIVE RANGE OF FUND TYPES Islamic Funds Hedge Funds Private Equity Funds Money Market Funds Property Funds Real Estate Investment Trusts We have an established and tested framework which supports fund managers to decide on their fund vehicles and structures. These include: Investment trusts Limited partnerships Master and feeder fund structures Open or close ended investment companies Protected cell companies and incorporated cell companies Restricted scope companies Umbrella funds 06 07

5 APPLYING FOR A LICENSE With simple and straightforward licensing, registration and regulation, setting up and operating in DIFC is fast and efficient. STAGE 1 Provide DIFC with letter of intent STAGE 2 Discussion with DFSA/DIFC Authority on particulars of fund: Exempt Fund Form or Qualified Investor Fund Form Draft Fund Constitution Draft Information Memorandum (IM) for the Fund DFSA Fees STAGE 3 Submit application document to DFSA STAGE 4 Submit application documents to DIFC Registrar of Company (ROC) for legal entity and fund vehicle STAGE 5 DFSA issues Principal Approval ROC issues Commercial Licence Government Services issues Visas DFSA issues Full Licence STAGE 6 DFSA issues consent notification for QIF Fund (Note: this step does not apply to other licence types) 08 09

6 CONSIDERING THE DIFC? WE ARE NOW EVEN MORE COST EFFECTIVE If your business is considering the DIFC, we are now more cost effective than ever. Our most popular approach to managing funds domiciled in the DIFC is through a Qualified Investment Fund Manager licence. GET IN TOUCH We appreciate that moving or setting up a new jurisdiction and fund domicile can be a complex one, so we work with a range of independent advisors who can help. Our specialised team offer no-obligation help. For more information, please contact: setup@difc.ae, we ll get back to you within 48 hours. DIFC, THE LEADING FUND DOMICILE IN THE REGION World class regulation Large multi-lingual workforce Availability of service providers Experienced fund set-up and structuring capabilities Worldwide acceptance of DIFC Funds QIF application approval process can be just two days 10 11

7 Join the conversation T E. setup@difc.ae GATEWAY TO GROWTH ADVANCE. ENGAGE. ENJOY. WAM 07/17