Investment Fund in the UAE

A legally regulated mechanism for attracting investments and collective capital management.

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Investment Funds in the UAE

A regulated mechanism for raising capital and managing assets collectively. An investment fund pools investor capital under a licensed Fund Manager. Strategies can target equities, fixed income, real estate, private equity, Shariah-compliant products and ESG assets.

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Fund regulation in the UAE

Jurisdiction	Regulator	Core rules
Mainland	SCA (Securities & Commodities Authority)	Investment Funds Regulation (1/R.M. 2016, as amended)
DIFC	DFSA (Dubai Financial Services Authority)	DIFC Collective Investment Law No. 2 of 2010
ADGM	FSRA (Financial Services Regulatory Authority)	FSRA Fund Rules under the FSMR

Key features of a UAE fund

Parameter	Description
Legal form	Unit Trust / Investment Company / Limited Partnership
Fund Manager	Mandatory — licensed by SCA / DFSA / FSRA
Custodian	Asset custodian required
Units	Represent an investor’s proportional interest in the fund
Taxation	Generally 0%, subject to structure and jurisdiction
Financial reporting	Annual audit and compliance are mandatory

Types of investment funds

Fund type	Description
Public Fund	Available to the wider public; public offering allowed
Private Fund	For qualified/professional investors (typical minimum ~USD 500K)
Real Estate Fund	Invests in income-generating or development real estate
Shariah Fund	Compliant with Islamic finance principles
Umbrella Fund	Multiple sub-funds under one umbrella structure

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How funds differ from other vehicles

Vehicle	Investors	Purpose	Licence/license	Income
Investment Fund	✅ Yes	Collective investment	✅ Required	Pro rata via units
SPV	❌ No	Asset holding	❌ Not required	None
Foundation	❌ No	Estate/asset protection	❌ Not required	Per by-laws
Holding Co.	❌ No	Asset management	✅ Business licence/license	Dividends/equity returns

HowTo: Setting up an investment fund in the UAE

Apply for and obtain the fund licence/licence from SCA / DFSA / FSRA.
Appoint a licensed Fund Manager.
Appoint the Custodian and Administrator.
Prepare the Offering Memorandum / Prospectus.
Implement AML, KYC, ESR and UBO procedures.
Arrange annual audit and investor reporting.

MIRAD services

Prepare documentation and secure the fund licence/license.
Register/appoint the Fund Manager, Custodian and Auditor.
Design the fund’s legal and tax model.
Ensure compliance with SCA, DFSA and FSRA rules.
Build international structures (SPV, Foundation, Nominee).
Launch real-estate, Shariah and ESG fund strategies.

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