The Dubai International Financial Centre introduces new rules to expand access to flexible investment frameworks

To strengthen its investment activity appeal, the Dubai International Financial Centre (DIFC) has rolled out new regulations that expand the framework for how investors can manage capital within its jurisdiction.

The DIFC is an independent economic free zone in Dubai, UAE.  Established in 2004, it serves as a financial hub for companies operating throughout the Middle East, Africa, and South Asia markets. It is regulated by the Dubai Financial Services Authority (DFSA), an independent regulator, and by its own court system, both exclusive to the zone. Among others, the DIFC offers companies 100% foreign ownership, allowing international investors to own their own entities without requiring a local partner, as well as a zero per cent corporate tax rate on qualifying income.

The new regulations, entitled the Variable Capital Company (VCC) regulations, aim to enhance investment structuring and asset management options for proprietary investments. The key characteristics of the VCC include structural flexibility, adaptable share capital, clear asset segregation, and a flexible approach to dividend distribution.

With the new VCC regime, DIFC hopes to attract complex proprietary portfolio, family owner business and multi-asset holdings.