DIFC predicts major fund flows following new lawsPress Release09 May 2006 11:04 am
The Dubai International Financial Centre (DIFC) has predicted that it could become one of the world’s leading funds centres following the enactment of The Collective Investment Law 2006.
Dr Omar Bin Sulaiman, Director General of the DIFC, added: “The funds sector is central to the financial services industry and to the global economy. The DIFC and its regulator, the DFSA, have worked extremely hard to create the right environment for the industry to come to the DIFC, and we believe that now we have achieved this, the flood gates will open and that fund managers and administrators will see the unique benefits of the DIFC and the region.”
“Collective investments, in the broadest sense, covers all funds including mutual funds, property funds, Islamic funds, hedge funds, fund of funds and private equity funds,” explained Sandy Shipton, Head of Asset Management at DIFC. “The enactment of this law is the final piece in the jigsaw that creates a world class domicile for the funds industry here in the DIFC.”
The legislation to regulate the managed funds industry within the DIFC has been enacted by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai.
“The new Law completes the Regulatory Law governing the Asset Management industry within DIFC and will, over time, lead to the DIFC becoming a leading internationally recognised Funds Centre,” added Shipton.
The size of the funds industry globally amounts to many trillions of dollars, with pension funds making up perhaps a third of this sum. The USA and Europe account for over 85% of this market. The Middle East region has never had a funds industry, but the new DIFC law puts in place the regulatory and legal environment that will enable the funds industry to establish and grow in this region.
Sandy Shipton also highlighted the regulatory advantage enjoyed by DIFC as another driver of the industry: ”DIFC’s funds offering differs from other centres, in particular those “offshore” locations which lack the credibility of being onshore, transparent, and regulated to international standards, as the DIFC is.”