DIFC: A Premier Choice for Fund Setups in the Middle East

Oct 07, 2024

Articles


The Dubai International Financial Centre (DIFC) continues to solidify its position as a global leader for businesses looking to expand into the Middle East, Africa, and South Asia (MEASA). Offering access to over 3 billion people across these regions, DIFC presents unparalleled opportunities for firms involved in investment management, wealth preservation, and capital growth. As of H1 2024, DIFC’s performance includes over 6,000 registered firms, with assets under management (AuM) growing by 58% from a year prior, surpassing USD 700 billion.

Why Choose DIFC for Your Investment Structures?

DIFC provides numerous advantages, making it the ideal jurisdiction for establishing funds and managing investments. Key benefits include:

  • Tax-Neutral Environment: DIFC operates as a tax-free zone, offering significant cost savings, enhancing return on investment, and making it an attractive location for those looking to expand internationally.

  • Regulatory & Legal Excellence: Overseen by the Dubai Financial Services Authority (DFSA), DIFC is compliant with global regulatory standards, including IOSCO, and operates under a proven judicial system with an English Common Law framework, ensuring that businesses can operate with confidence, knowing their investments are secure and well-regulated.

  • Rapid Growth & Opportunities: As the largest financial hub in the region, DIFC leads in growth and innovation, with a concentration of firms unmatched across MEASA. In H1 2024, there was a 24% growth in new company registrations, with substantial gains in FinTech and innovation sectors, which have grown by 33% year-on-year. In addition, the number of funds marketed in or from DIFC has surged to 10,032, up from 7,641—a substantial 31% increase. 

  • Growing Talent Pool & Workforce Expansion: DIFC companies continue to draw top talent globally, creating 4,647 new jobs in 1 year, bringing the total workforce to 43,787—a 12% increase from the first half of last year. This expansion not only bolsters the local workforce but also enhances access to a highly-skilled, diverse talent pool, giving DIFC businesses a competitive edge in an increasingly globalized market.

  • Destination for Wealth Management & Family Offices: DIFC hosts over 600 entities connected to family businesses, including 120 of the world’s wealthiest families, managing a combined net worth of $1.2 trillion. This makes DIFC an exceptional platform for family offices, wealth management firms, and investment professionals looking to serve high-net-worth individuals (HNWIs) and secure global investments.

  • Largest Financial Innovation Ecosystem in the Region: DIFC’s Innovation Hub stands as the largest financial innovation ecosystem in the MEASA region, home to more than 1,000 tech and growth-stage firms. With a vibrant community that includes digital labs, venture capital firms, and regulatory entities, the Innovation Hub fosters groundbreaking advancements across sectors such as FinTech.

How ATG Fund Services Supports Your Business in DIFC

At ATG Fund Services, we assist businesses in setting up their investment structures in DIFC, offering tailored solutions that ensure regulatory compliance and optimized operations in this premier financial hub.

We offer a comprehensive suite of fund administration services from fund structuring and licensing, transfer agency and investor relations, fund accounting and NAV calculations, fund management support, and reporting and compliance. As a trusted partner, we coordinate all fund stakeholders seamlessly.

Partnering with ATG Fund Services allows you to unlock DIFC’s full potential, capitalizing on its tax-neutral environment, regulatory excellence, and access to global markets.

Additional Resources 

For additional resources and publications on this subject, please consult:

•    ATG Fund Services Website  
•    ATG Fund Services Brochure 

Contact Us

This publication should be used as a source of general information only. It is not intended to give a definitive statement of the law. For a FREE Initial Consultation to discuss the specifics of your enquiry please contact Andreas Athinodorou on + 357 22057570 or andreas.athinodorou@atgfunds.com.

 

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