Dubai
- Modern Multipurpose Centre

The Dubai International Financial Centre was conceived by the Government of Dubai for the benefit of the UAE and the wider region as a whole. Its remit is to create a regional capital market, offering investors and issuers of capital world-class regulations and standards. Its hallmarks are: integrity, transparency and efficiency.

The DIFC was originally developed after an extensive study of leading global centres, including Switzerland. By identifying and then implementing the best legal, regulatory and administrative systems from around the world, the DIFC is already recognised as a leading financial centre. But unlike ‘offshore’ tax havens, the DIFC is a fully fledged ‘onshore’ capital market, comparable to Hong Kong, London and New York.


Dubai International Financial Centre (DIFC)

The DIFC is the world's newest international financial centre. It aims to develop the same stature as New York, London and Hong Kong.

It primarily serves the vast region between Western Europe and East Asia.

Since it opened in September 2004, the DIFC has attracted high calibre firms from around the globe as well as its region. A world-class stock exchange, the Dubai International Financial Exchange (DIFX), opened in the DIFC in September 2005.

The DIFC is a 110-acre free zone. It is part of the larger vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, together with the Government of Dubai, to create an environment for progress and economic development in the UAE and the wider region.
www.difc.ae


Financial Sectors

The DIFC focuses on several sectors of financial activity: Banking Services (Investment Banking, Corporate Banking & Private Banking); Capital Markets (Equity, Debt Instruments, Derivatives and Commodity Trading); Asset Management and Fund Registration; Insurance and Re-insurance; Islamic Finance & Professional Service Providers.

Financial institutions may apply for licences in the above sectors. Firms operating in the DIFC are eligible for benefits such as a zero tax rate on profits, 100 per cent foreign ownership, no restrictions on foreign exchange or repatriation of capital, operational support and business continuity facilities.

Financial services in the DIFC are regulated to international standards by the Dubai Financial Services Authority (DFSA).



Hedge fund code of practice

The Dubai Financial Services Authority (DFSA) today (December 11 2007) issued its Hedge Fund Code of Practice (Code), the first of its kind to be issued by a regulator and a landmark code in the regulation of the international Hedge Fund industry.

The Code sets out best practice standards for Operators of Hedge Funds in the Dubai International Financial Centre (DIFC).

The DFSA’s initiative to issue a Code of Practice comes in the wake of enhanced industry and regulatory focus on Hedge Funds. The Code addresses some specific risks that are associated with Hedge Funds and reflects the DFSA’s commitment to risk-based regulation.

The issuance of the Code follows several months of consultation with industry professionals and international regulators who were invited to comment on the proposed rules and offer their opinions on the Code of Practice.

There are nine high-level principles in the Code, which cover areas of key operational, management and market-related risks, particularly in the areas such as valuation of assets, back office functions and exposure to market risks.

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. Having received highly positive feedback throughout the consultation period, DFSA are confident that the Code will provide investors and Hedge Fund Managers with a backdrop for the successful development of Hedge Funds in the DIFC by ensuring the industry has the necessary regulations in place to prosper. This initiative reflects DFSA's commitment to the continued development of the DIFC as an attractive and well-regulated environment for Hedge Fund Operators and prospective investors.”



Family Office

A Family Office is a private office set up by a single family with the sole purpose of managing the wealth and assets of that family.

Dubai International Financial Centre (DIFC) has won an international award for the ‘Best Government Initiative’ at the Society of Trust and Estate Practitioners (STEP) Private Client Awards 2007. Judges were impressed by the DIFC’s new Family Office Initiative, which is establishing a legal and regulatory framework for Family Offices working in the centre. A Family Office is currently not recognized by any other jurisdiction, however this new legislation will define a Family Office in a legal capacity for the first time.

A Family Office is a private office set up by a single family with the sole purpose of managing the wealth and assets of that family. It is used by a growing number of wealthy families to both safeguard the assets today and plan for the next generation. The challenges facing families, their businesses and assets are becoming more complex. By setting up a Family Office, families obtain expert guidance from in-house professionals on a wide range of issues.

The DIFC, the world’s fastest growing financial centre, was shortlisted along with established names – Isle of Man Government, Bahamas Financial Services Board and British Virgin Islands International Finance Centre.

Dubai International Financial Centre (DIFC)

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