Expects DIFC to become a key domicile for the global funds industry

Dubai, 18 July 2006

Apex Fund Services, one of the world's fastest growing fund administrators*, today became the first administrator to be given approval by the Dubai Financial Services Authority (DFSA) to operate from the Dubai International Financial Centre (DIFC).

Peter Hughes, Managing Director of Apex Fund Services, said:

"We expect the DIFC to become a key domicile for the global funds industry following enactment of the Collective Investment Law 2006 - the Middle East's first regulatory framework for the funds industry. 'Being the first fund administrator at the DIFC increases our ability to provide an enhanced level of service to a wider range of clients".

The Law, enacted in May by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and Ruler of Dubai, lays the foundation for growth of a regional funds industry. As the DFSA is recognised by the UK Financial Services Authority and the US Securities and Exchanges Commission, it also allows funds domiciled in the DIFC to market themselves internationally.

Data show demand for investment and asset management services in the region is high. The Merrill Lynch/Cap Gemini High Net World Wealth Report 2005 predicts that from 2004-2009 the number of high net worth individuals in the Middle East will grow at a rate of 9.1 per cent each year - the highest growth rate from any region in the world. Gulf GDP growth is also strong, rising 45% from US$415bn in 2002 to $602bn in 2005, according to Credit Suisse.

There are currently 15 asset management firms with licenses to operate from the DIFC, while three funds have applied for licenses under the Collective Investment Law 2006.

"Funds require an independent administrator to comply with international best-practice and regulatory standards. Apex Fund Services fulfils this requirement, ensuring funds domiciled in the DIFC have access to a world-class service provider with integrated accounting systems, web-based client reporting and highly trained and experienced staff", added Hughes.

Apex Fund Services will move its headquarters from Bermuda but will maintain an office there to continue servicing its local clients.

Assem O. Kabesh, Chief Business Development Officer and Board Member at the DIFC, says the arrival of Apex Fund Services will encourage more funds to domicile themselves at the DIFC.

"World-class service providers such as Apex Fund Services are necessary to ensure stakeholders receive independent performance assessments and quality administrative services. We expect Apex to benefit from the strong interest seen in the DIFC from funds around the world", he said.

*Apex Fund Services was named the sixth fastest growing fund administrator in the world by HFM Week in 2005

-Ends-

Notes to Editors:
Apex Fund Services 
Apex Fund Services provides net asset value calculations, maintenance of financial records, the provision of corporate secretaries and directors, management services and shareholder records for offshore funds and companies. It combines a mixture of dedicated resources and state-of-the art technology, which results in a fast and efficient service in all areas of the global offshore fund administration business. Apex Funds Service is headquartered in Bermuda, with offices in Dubai, Mauritius and Cyprus.

About the DIFC:
The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services.

In just over one year, more than a hundred top international institutions have joined the DIFC as members. They operate in an open environment complemented with world-class regulations and standards. The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. In addition their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards. 

The DIFC is made up of the following core bodies:

1. The DIFC Authority (DIFCA) - Responsible for the Companies and Security Registries and attracting financial as well as non-financial institutions to set up in the DIFC. The DIFC Authority is also responsible for developing the financial services industry. (www.difc.ae)

2. The Dubai Financial Services Authority (DFSA) - An independent, unitary regulatory authority, responsible for the regulation of all DIFC operations. Its principle-based primary legislation is modeled on that used in London and New York, and its regulatory regime operates to standards that meet or exceed those in major financial centres.   (www.dfsa.ae)

3. The DIFC Courts - An independent court system set up to uphold the provisions of DIFC laws and regulations, the courts provide comprehensive legal redress in civil and commercial matters within the DIFC. The DIFC Courts system is especially designed to deal with all of sophisticated transactions that will be conducted within DIFC. The DIFC Court laws, based on the common law, not only sets out the jurisdiction of the court but also provides for a dispute resolution services, including arbitration and mediation, thus allowing for the independent administration of justice in the DIFC. ( www.difccourts.ae )

4. DIFC Investments- The creation of DIFC Investments will result in the allocation to it of all non public administration activities previously carried out by DIFC Authority. This will include amongst other things all commercial and other activities such as the operation and management of any current and future subsidiaries, the development of the centre's investment strategy and relevant policies and any other strategic investments or alliances which will further the goals and objectives of the Dubai International Financial Centre and contribute to the fulfillment of the Centre's vision. Some of the companies and organizations that DIFC Investments owns include:

1. The Dubai International Financial Exchange (DIFX) The DIFX is the region's first international financial exchange for equities, bonds, Islamic products, funds, index products and (subject to regulatory approval) derivatives. The target areas of the DIFX for seeking issuers include the Middle East and North Africa, as well as South Africa, Turkey and the Indian sub-continent. The regulator of the DIFX is the Dubai Financial Services Authority. The DIFX is located in the Dubai International Financial Centre (DIFC) and its owner is the DIFC Authority. (www.difx.ae)

2. Hawkamah - the first Institute for Corporate Governance in the region is being set up by a group of international institutions, including the Dubai International Financial Centre (DIFC), Organisation for Economic Cooperation and Development (OECD), UAE Ministry of Finance and Industry, Centre for International Private Enterprise (CIPE), International Finance Corporation (IFC), the Union of Arab Banks (UAB), Dubai School of Government (DSG), Young Arab Leaders (YAL), and the Institute of Management Development (IMD). (www.hawkamah.org)  capital and investment opportunities.

Media enquiries:
Peter Hughes
Apex Fund Services
+1 441 292 2739
Amira Abdulla
Dubai International Financial Centre
Tel: +9714 362 2433

Tim Harrison/Lavina Chatterjee
Asda'a Financial Practice
Tel: + 9714 3355969
Mob: 050-5097631; 050-4506911
Email: tim.harrison@asdaa.com
l.chatterjee@asdaa.com

© Press Release 2006