The UAE’s financial regulators have come together to reach an agreement on facilitating the licensing of domestic funds by each authority for promotion across the UAE, it was announced on Tuesday.
According to the state-run WAM news agency, the Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA) of the Dubai International Financial Centre (DIFC) and the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) signed the agreement on Tuesday in the presence of UAE Minister of the Economy Sultan bin Saeed Al Mansouri.
“Signing this agreement and implementing its provisions will foster the relations between the three authorities,” he said. “It will facilitate the licensing and promoting of investment funds to attract foreign investment.”
Al Mansouri added that the agreement “will also pave the way for savings to be directed towards new financial instruments such as investment funds and activate a number of financial services and activities related to investment funds such as custodian, investment management, and promoting, as well as the management of investment funds.”
As part of the agreement, the various entities confirmed that licensed funds can be promoted in or from the UAE’s financial free zones. Each regulator will establish a notification and registration facility to promote and sell domestic funds under a single license.
The agreement is expected to provide greater protection to investors as a result of the improved exchange of regulatory information, as well as help stimulate the development of the domestic investment funds market by encouraging the incorporation of new funds and facilitating the ease of doing business in the UAE.
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