Dubai’s financial hub is set to attract at least three new funds by the end of the year as a new, lighter-touch policy starts to reap rewards.
It will come as a boost to the Dubai International Financial Centre (DIFC), which is seeking to attract more funds targeting high net worth individuals.
The DIFC formally launched the Qualified Investor Fund (QIF) structure last week after the plan was formally approved in August.
Two Dubai-based law firms said they were undertaking the preparatory work for new funds using the structure, with a view to launching them before the end of the year.
Hardeep Plahe, a Dubai-based partner with Gibson, Dunn & Crutcher, said that his firm had already begun working on a fund targeting such investors on behalf of a GCC-based institution, looking to offer it before the end of the year.
“We were working on a fund [targeting high-end investors] before the new structure was announced,” said Mr Plahe. “The QIF regime came through and has made it a lot easier to set up the fund, particularly given the type of investors the fund is aimed at.”
Chris Harren, a national partner with Dechert in Dubai, said that his firm was working on two funds using the QIF structure, declining to give details about the institutions involved. Both funds are set to be launched before the end of the year.
The QIF structure is designed to be offered only through private placement to experienced investors, with a minimum investment of US$500,000 per investor and a maximum of 50 people per fund.
Crucially, QIFs will be subject to far less stringent regulation than the DIFC’s existing fund structures, with no requirement to file interim reports on their operations and the ability to invest in funds of funds, among other exemptions.
The introduction of the new structure follows a realisation by the DIFC that its pre-existing funds regime had put too heavy a compliance burden on institutions looking to offer lightly regulated funds to professional investors – common in jurisdictions such as the Cayman Islands – that do not require the same regulatory protection as retail clients.
Faced with such regulatory and compliance requirements, only 11 funds have been domiciled in the DIFC to date, although this is set to change rapidly, said Mr Plahe.
“I’m optimistic that this new structure is going to be the catalyst the DIFC needs for another influx of fund managers and funds,” he said, noting that several parties including private equity houses had already approached his firm about the possibility of establishing funds using the new structure.
“I wouldn’t be surprised if this time next year we’ll have another 20 funds set up.”
The new structure is a sign of Dubai’s desire to compete with major global fund domiciles such as Luxembourg and the Cayman Islands, and of the DIFC’s commitment to adapting to market demand, said Ben Bruton, the managing partner of Eversheds in the UAE.
“The changes appear to acknowledge the challenge of making sure that the regulatory burden in the DIFC is sufficiently light to be attractive for fund managers from a cost of entry perspective, while ensuring that investors have the protections that come with a robust regulatory framework,” he said.
jeverington@thenational.ae
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UAE currency: the story behind the money in your pockets
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
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Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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Sheer grandeur
The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.
A clear distinction between the residences and the Raffles hotel with the amenities operated separately.
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
'Laal Kaptaan'
Director: Navdeep Singh
Stars: Saif Ali Khan, Manav Vij, Deepak Dobriyal, Zoya Hussain
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
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Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Name: Steppi
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Launched: February 2020
Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year
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What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
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AT4 Ultimate, as tested
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Napoleon
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Anghami
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Investors: MEVP, du, Mobily, MBC, Samena Capital
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UAE v Oman - abandoned
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Avengers 3: Infinity War: an American superhero film released in 2018 and based on the Marvel Comics story.
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Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
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Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
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South Africa 66 (Tries: De Allende, Nkosi, Reinach (3), Gelant, Steyn, Brits, Willemse; Cons: Jantjies 8)
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