Dubai: Dubai International Financial Centre (DIFC), the leading international financial hub in the Middle East, Africa and South Asia (MEASA) region, has made structuring and financing faster, economical, and more flexible. Under a newly introduced regime, structures such as Intermediate Special Purpose Vehicles (ISPVs) and Special Purpose Companies (SPCs) will now be classified as Prescribed Companies.
The new Prescribed Companies regime expands the previous regime to also allow certain firms to establish themselves in the DIFC with more flexible office requirements. These include firms that are either regulated by Dubai Financial Services Authority (DFSA) or a recognised International Financial Services Regulator. FinTech firms, Family Offices, Holding and Investment Companies, as well as Aviation Companies and firms involved in structured finance will also be eligible to establish a Prescribed Company in the Centre.
Furthermore, the annual licensing fee for Prescribed Companies has been reduced to US$1,000, with an incorporation fee of US$100.
Jacques Visser, Chief Legal Officer, DIFC Authority commented: “The new Prescribed Companies regime is a very positive regulatory development that is going to make the DIFC an even more accessible jurisdiction for businesses looking to tap into the MEASA opportunity. By replacing Intermediate Special Purpose Vehicles and Special Purpose Companies regimes with a unified, simplified and more expansive regime with a very competitive cost-structure, we are well aligned with international best practices while also ensuring local market needs are met.”
DIFC is committed to continuously enhancing its legislative infrastructure in order to give its business community the certainty and access they need to capture the opportunities within the MEASA region, through Dubai.
Following the recent enactment of the new DIFC Insolvency and Employment Laws, the Prescribed Companies regime will further enhance the legal and regulatory framework at the Centre, which remains the most sophisticated and business-friendly Common Law jurisdiction in the region. The new regime was unveiled during a session with Law Firms and Corporate Service Providers (CSPs) at DIFC Conference Centre earlier today to obtain market feedback on the legislative proposal, which is currently under public consultation.
About Dubai International Financial Centre
Dubai International Financial Centre (DIFC) is one of the world’s most advanced financial centres, and the leading financial hub for the Middle East, Africa and South Asia (MEASA), which comprises 72 countries with an approximate population of 3 billion and a nominal GDP of USD 7.7 trillion.
With a 15-year track record of facilitating trade and investment flows across the MEASA region, the Centre connects these fast-growing markets with the economies of Asia, Europe and the Americas through Dubai.
DIFC is home to an internationally recognised, independent regulator and a proven judicial system with an English common law framework, as well as the region’s largest financial ecosystem of more than 24,000 professionals working across over 2,100 active registered companies – making up the largest and most diverse pool of industry talent in the region.
The Centre’s vision is to drive the future of finance. Today, it offers one of the region’s most comprehensive FinTech and venture capital environments, including cost-effective licensing solutions, fit-for-purpose regulation, innovative accelerator programmes, and funding for growth-stage start-ups.
Comprising a variety of world-renowned retail and dining venues, a dynamic art and culture scene, residential apartments, hotels and public spaces, DIFC continues to be one of Dubai’s most sought-after business and lifestyle destinations.
For further information, please visit our website: difc.ae, or follow us on Twitter @DIFC.
For media enquiries, please contact:
Dubai International Financial Centre Authority
Senior Manager, Communications
Tel: +971 4 362 2453
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