Dubai Ready To Launch Hedge Funds This Year

by Lorys Charalambous, Tax-News.com, Cyprus

03 March 2005

A legislative framework that will allow hedge funds to be launched in Dubai is expected to be put in place later in the year, according to David King, acting chief executive of the Dubai Financial Services Authority.

According to the Khaleej Times, in his inaugural speech to the 2005 Hedge Fund World Middle East Conference on Tuesday, Mr King stated that asset management and hedge fund registration has been identified as a potential growth area within the Dubai International Financial Centre (DIFC).

“The DIFC is seeking to attract funds business here,” Mr King told delegates.

“Accordingly, DFSA is currently in the process of drafting a Collective Investments Law and Collective Investment Funds Rules, based upon internationally recognised best practice standards, and drawing upon the experiences of other, successful jurisdictions," he added.

Mr King went on to explain that the DFSA is expecting to sign Memoranda of Understanding with regulators both within the United Arab Emirates and internationally, in order to share information, and is seeking membership of several international regulatory organisations.

The DFSA has already been accepted by the International Association of Insurance Supervisors (IAIS), and the Islamic Financial Services Board (IFSB). It has also adopted the standards set by multinational organisations such as the FATF, the OECD, the Bank of International Settlements, and International Accounting Standards Board (IASB).

Mr King announced that: “Business activities established in the DIFC will embrace the complete financial services spectrum including banking, asset management, funds activities, a capital market, reinsurance, Islamic finance, a regional financial exchange, and other exchanges specialising in commodity trading activities.”

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