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Dubai making financial regulations easier for business sector

The Dubai International Financial Centre, DIFC, is set to make structuring and financing faster, economical, and more flexible. Under a newly introduced regime, structures such as Intermediate Special Purpose Vehicles and Special Purpose Companies will now be classified as ‘Prescribed Companies’.

The new prescribed companies regime expands the previous regime to also allow certain firms to establish themselves in the DIFC with more flexible office requirements.

These include firms are either regulated by the Dubai Financial Services Authority or a recognised International Financial Services Regulator. FinTech firms, Family Offices, Holding and Investment Companies, as well as Aviation Companies and firms involved in structured finance will also be eligible to establish a prescribed company in the centre.

The annual licencing fee for these companies has also been reduced to US$1,000, with an incorporation fee of $100.

Regarding the new regime, Jacques Visser, Chief Legal Officer, DIFC Authority, said, “The new Prescribed Companies regime is a very positive regulatory development that is going to make the DIFC an even more accessible jurisdiction for businesses looking to tap into the MEASA opportunity. By replacing Intermediate Special Purpose Vehicles and Special Purpose Companies regimes with a unified, simplified and more expansive regime with a very competitive cost-structure, we are well aligned with the international best practices, while also ensuring local market needs are met.”

The DIFC is committed to continuously enhancing its legislative infrastructure in order to give its business community the certainty and access they need to capture opportunities within the MEASA region, while operating through Dubai.

Following the recent enactment of the new DIFC Insolvency and Employment Laws, the Prescribed Companies regime will further enhance the legal and regulatory framework at the Centre, which remains the most sophisticated and business-friendly Common Law jurisdiction in the region. The new regime was unveiled during a session with Law Firms and Corporate Service Providers at the DIFC Conference Centre earlier today, in a bid to obtain market feedback on the legislative proposal, which is currently under public consultation.

Source: WAM

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