Financial services such as investment management are typically provided in the UAE through three establishments:

• Onshore in the UAE (i.e., outside of a designated free zone)
• the Dubai International Financial Centre (DIFC), and the Abu Dhabi Global Market (ADGM) each with its own set of rules and regulations.

The DIFC and the recently established ADGM are economic free zones within the UAE that were established to encourage foreign investment by providing attractive concessions and a number of investment incentives, such as a 0% tax rate and the ability to own a 100% subsidiary.

• Onshore UAE:

The SCA\’s (Emirates Securities and Commodities Authority) Investment Management Regulations define \’investment management\’ as the management of securities portfolios for third-party accounts or the management of mutual funds in accordance with the investment objectives and policies defined in the investment management agreement between the investment manager and its client.

• DIFC:

The Dubai Financial Services Authority (DFSA) is the independent regulator for all financial and ancillary services provided by the DIFC, including investment management.According to the Regulatory Law, financial services may only be provided in the DIFC by firms that have been authorized and licensed by the DFSA. The General Module of the DFSA Rulebook defines managing a collective investment fund as being legally accountable to the unitholders in a fund for the management of property held for or within a fund under the fund\’s constitution; and establishing, managing, or otherwise operating or winding up a collective investment fund.

• ADGM:

The ADGM financial services regulations (the Regulations) were enacted in October 2015. Firms conducting financial services business in the ADGM, such as investment management, are subject to licensing by both the ADGM (in terms of the requirement to hold a commercial license) and the ADGM Financial Services Regulatory Authority under the Regulations (in respect of the financial services licensing).The Regulations include two major prohibitions: providing financial services without a license or exemption, and making an unauthorized financial promotion

The ADGM has also sought to be a regional hub for real estate asset management, introducing a popular private real estate investment trust (REIT) regime.