Leave your contact details to request consultation

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form.

+971 55 158 3500

Fund Setup

Unlock Global Investment Potential

start exploring

Foundation Setup

Trust Setup

Main Corporate Services & Private Clients Corporate Setup Fund Setup

Funds in the UAE are collective investment vehicles designed to pool capital from various investors to achieve shared objectives, such as capital growth, income generation, or a mix of both.

Where Can Funds Be Established in the UAE?

Mainland
UAE

Regulated by the Securities and Commodities Authority (SCA) and governed by federal laws.

Dubai International Financial Centre (DIFC)

Overseen by the Dubai Financial Services Authority (DFSA) under specialized free-zone regulations.

Abu Dhabi Global Market (ADGM)

Governed by the Financial Services Regulatory Authority (FSRA) under its own regulatory framework.

Types of Funds in the UAE

Exempt Funds

Managed by professionals who have full authority to make investment decisions in line with agreed objectives and risk tolerances.

Minimum investment in DIFC and ADGM: USD 50,000.

Maximum investors per fund in DIFC and ADGM: 100.

Public Funds

Open-ended funds aimed at consolidating capital from retail, institutional, and professional investors by public offer.

No minimum investment threshold.

Qualified Investor Funds - QIFs

Tailored for high-net-worth individuals (HNWIs), institutional investors, and sophisticated clients capable of handling higher risks.

Minimum investment in DIFC and ADGM: USD 500,000 per investor.

Maximum investors per fund in DIFC and ADGM: 50.

Corporate Governance

Fund Manager

Should be appropriately licensed to manage a fund.

Manages the Fund and its property to reach investment objectives.

Administrator

Appointed by the Fund Manager, could be the Fund Manager itself or a registered service provider.

Responsible for the day-to-day operational and administrative management of investment funds, including maintaining the funds’ records.

Custodian

Appointed by the Fund Manager, should be separate legal entity from the Fund Manager.

Takes legal title of a fund’s property & safeguards fund assets.

Steps to Set Up Fund in the UAE

Determine Fund Type & Jurisdiction

Choose a fund structure and select an appropriate jurisdiction, considering the fund's target market and objectives.

Appoint Fund Manager

Appoint a licensed fund manager who will appoint members of the other governing bodies (such as administrators and custodians), auditors and the other key personnel.
Ensure compliance with regulatory requirements, including anti-money laundering and counter-terrorism measures.

Prepare Fund Documentation

Depending on the type of the fund — draft necessary documents such as a private placement memorandum or a fund prospectus, an investment management agreement, a subscription agreement and operational policies.

Obtain Regulatory Approval

Secure approval from the relevant regulatory body and complete fund registration.

Set Up Operational Accounts

Open a corporate bank account and engage essential service providers to manage fund operations effectively.

To read more about opening of a corporate bank account in the UAE,
‍press here.

FAQ

What is Fund Setup in the UAE and why is it beneficial?

Fund Setup in the UAE is the process of creating an investment fund in the financial free zones of DIFC (Dubai) or ADGM (Abu Dhabi), obtaining a regulator’s license, and gaining the ability to raise capital from international investors.

The UAE offers two leading world-class financial centers:

DIFC (Dubai International Financial Centre) – established in 2004, ranked among the top 12 global financial centers according to GFCI 37 (2025)
ADGM (Abu Dhabi Global Market) – a modern jurisdiction with an advanced regulatory framework

Key advantages:

100% foreign ownership – full control without local partners
0% corporate and income tax – when regulatory requirements are met
Full capital repatriation – no restrictions on fund withdrawals
World-class regulation – DFSA (DIFC) and FSRA (ADGM) follow international standards
Legal system based on English law – transparent and familiar to international investors
Strategic location – time zone between Europe and Asia, providing access to MEASA markets (Middle East, Africa, South Asia)

Practical example:

A London-based private equity fund launched a Qualified Investor Fund in DIFC to access GCC markets. Within 18 months, it raised $75 million from 35 regional investors, leveraging tax benefits and access to local deal flow.

What is the difference between DIFC and ADGM for Fund Setup?

Both centers offer similar advantages, but DIFC is more mature with a larger ecosystem (20+ years), while ADGM provides more flexible conditions for startups and venture funds.

Criteria	DIFC	ADGM
Regulator	DFSA (Dubai Financial Services Authority)	FSRA (Financial Services Regulatory Authority)
Legal system	Adapted English common law	Direct application of English law
Ecosystem	5,000+ companies, 40,000+ professionals	4,500+ companies, growing ecosystem
Office costs	Generally higher (premium Dubai locations)	Generally 15–25% lower
Licensing timeline	12–16 weeks for Category 3C Fund Manager	6–10 weeks for In-Principle Approval
Minimum capital (Fund Manager)	AED 1–3M (depending on category)	AED 800K–2M
Venture incentives	Standard conditions	$1,500 over 3 years for VC Fund Managers
Judicial system	DIFC Courts (independent, mixed panel of judges)	ADGM Courts (direct application of English law, eCourts digital platform)

How much does it cost and how long does it take to set up a fund in the UAE?

Minimal scenario (ADGM Exempt Fund):

Year 1: $80,000–$120,000
Annual expenses: $168,000–$250,000

Standard scenario (DIFC QIF):

Year 1: $130,000–$200,000
Annual expenses: $220,000–$350,000

Timelines:

Fund Type	DIFC	ADGM
Exempt Fund	8–12 weeks	8–10 weeks
Qualified Investor Fund (QIF)	14–18 weeks	12–16 weeks
Public Fund	18–24 weeks	16–22 weeks

Practical example:

A European hedge fund manager launched an ADGM QIF in 11 weeks for $145,000, using pre-approved templates and outsourced compliance.

Other Expertise

Corporate Administration

Bank & Brokerage
Accounts

Residency & Visas

Tax Advisory & Accounting

Legalization & Consular
Support

Powers of Attorney & Wills

Labor Matters Support