Establishing a Public Fund in Abu Dhabi in 2024
Abu Dhabi has established itself as a global hub for business and innovation, boasting a thriving financial sector, supported by the prestigious Abu Dhabi Global Market (ADGM). It ranks among the world’s foremost financial centers, offering businesses a robust and regulated infrastructure for conducting a wide range of financial activities.
Playing a pivotal role within ADGM, the Financial Services Regulatory Authority (FSRA) operates as an independent entity responsible for overseeing financial services activities. Together, they uphold rigorous standards to maintain stability, transparency, and adherence to international best practices, thereby creating a safe and stable environment that supports long-term economic growth.
Essentially, a Public Fund is established and domiciled in ADGM, marketed in or from the jurisdiction, with an ADGM-based or foreign fund manager, falling under the Domestic Funds category.
Throughout this article, the SALVUS Investment Funds Licensing team, showcases the numerous benefits of establishing a Public Fund in Abu Dhabi, along with the information required in addressing the following:
1. Why establish a Public Fund in Abu Dhabi?
2. Public Fund Key Features
3. Application and Annual Fees
4. How can SALVUS support your Public Fund application?
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1. Why establish a Public Fund in Abu Dhabi?
Establishing a Public Fund in Abu Dhabi leverages the United Arab Emirates’ (UAE) robust regulatory environment and strategic advantages in the global financial landscape. Abu Dhabi is recognized as a rapidly expanding hub for financial technology (FinTech), fostering innovation and credibility in the sector. The ADGM along with FSRA play a pivotal role in this ecosystem, ensuring adherence to a legal framework modeled after global financial centers, which promotes stability and security for investors venturing into cutting-edge sectors.
Moreover, firms benefit from Abu Dhabi’s favorable tax regime, including no personal or corporate income tax over extended periods and double taxation treaties with numerous countries, making it an attractive destination for international investment.
ADGM operates under a legal system based on English Common Law, supplemented by its civil and commercial laws, offering clarity and predictability for businesses. The absence of restrictions on foreign talent, capital repatriation, and currency exchange controls further enhances Abu Dhabi’s appeal as a business-friendly environment.
Geographically, Abu Dhabi’s strategic location at the crossroads of the Middle East, Africa, and South Asia (MEASA) positions it as a key destination for FinTech investments. Last but not least, the UAE’s strong economic ties with major global economies facilitate access to diverse markets and global economic policies, providing investors with opportunities to capitalize on international trends.
2. Public Fund Key Features
The features of a Public Fund, indicating the different services and requirements, are as follows:
| Features | Public Fund |
|---|---|
| Legal Form | – Open or Closed Ended Investment Company – Limited Investment Partnership – Investment Trust |
| Eligible Investors | - Professional - Retail |
| Number of Investors | Unlimited |
| Minimum Initial Investment per person | Not subject to minimum initial investment requirement |
| Fund Manager Capital Requirements | 150,000 USD |
| FSRA Registration or Notification | Registration required |
| Placement of Units | Public |
| Prospectus | Required to be submitted to the FSRA before registration |
| Regulatory Oversight arrangements | One of: – Oversight Committee – Eligible Custodian or Trustee of the Fund |
| Investment and Borrowing Requirements | Restricted |
| Fund Manager | - Mandatory appointment - Must apply for registration of the Fund |
Contact us via email at info@salvusfunds.com if you are interested in establishing a Public Fund with FSRA in ADGM or if you would like more information about our UAE licensing services; our SALVUS Investment Funds Licensing team is ready to answer your questions.
3. Application and Annual Fees
The FSRA application and annual fees payable by the Fund Manager, or the person proposing to be the Fund Manager for registering a Public Fund, depend on if the Public Fund is an Umbrella Fund or not and on the number of additional sub-funds.
In addition, further costs may apply if an authorized person or a Fund Manager is filing a Prospectus or a supplementary/replacement Prospectus with the FSRA, respectively.
4. How can SALVUS support your Public Fund application?
The SALVUS Investment Funds Licensing team brings a wealth of experience in establishing investment funds with various business models and goals. Our advanced project management strategies are customized to ensure the selection of the most appropriate type and structure of investment fund that aligns perfectly with your business objectives and vision.
Acting as a reliable intermediary between the regulatory authority and your applying firm, we streamline the registration process by coordinating the collection and submission of all required information and documentation. Additionally, our expertise includes assisting you in building a competent team and strategically distributing your financial resources between personnel and technology.
After successfully establishing your Public Fund, our Regulatory Compliance team is prepared to assist you in meeting all post-registration regulatory requirements.
Contact us at info@salvusfunds.com if you are interested in establishing a Public Fund with FSRA in ADGM or if you would like more information about our UAE licensing services; our SALVUS Investment Funds Licensing team is ready to answer your questions.
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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.