DIFC To Explore Opportunities In Regional Funds Industry

by Lorys Charalambous, Tax-News.com, Cyprus

26 August 2008

The Dubai International Financial Centre (DIFC) will host an industry seminar to shed light on how financial services companies can unlock the vast opportunities emerging in the Middle East's funds and investment management sector.

At the half-day seminar to be held on 27th August, officials from the DIFC Authority, the Dubai Financial Services Authority (DFSA) and leading global and regional companies will explain how companies can take advantage of the regulatory and business environment offered by DIFC, to start new ventures or grow their business in this rapidly growing sector.

Apart from market opportunities and regulations, the seminar will also cover the topic of taxation. Currently, there is a highly attractive tax regime for companies operating in Dubai, which does not levy corporate income tax (except for banks and oil companies), withholding taxes or import duties. Taxation in the DIFC, which has been granted a high degree of autonomy from the central government, is set out in Article 14 of Law No. 9 of 2004, but in common with the tax holidays offered to investors within other free zones such as the Jebel Ali Free Zone and the Dubai Internet City, the DIFC provides for a 50-year tax relief.

Other presentations at the upcoming seminar will cover fund administration, disclosure requirements and investment protection. Industry professionals will also be able to get a detailed understanding of the process of domiciling a fund in DIFC.

Nasser Al Shaali, CEO of DIFC Authority commented: "As the region's economy grows, both private and institutional wealth have seen exponential increase. This, combined with the availability of a sophisticated financial infrastructure, has created a huge untapped market for funds and investment management services in the region. The seminar provides a great opportunity for financial industry professionals to understand how DIFC can support companies in making the most of opportunities in this sector."

Regulatory developments that have opened new avenues for funds and investment management companies will be a key focus. Ian Johnston , Managing Director - Policy and Legal Services, Dubai Financial Services Authority (DFSA), stated: "The DFSA issued a Hedge Fund Code of Practice last year in the wake of enhanced industry and regulatory focus on hedge funds. While there are a number of industry-based Hedge Fund Codes, the DFSA's Code is the first of its kind to be issued by a regulator reflecting our commitment to risk-based regulation".

In addition to officials of the DIFC Authority and the DFSA, senior representatives of PricewaterhouseCoopers Coopers, Walker's Dubai, Mashreq Capital and Praesidium will speak at the event.

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