The DIFC is one of the two Financial Free Zones within the UAE with its own civil and commercial laws. At the heart of the DIFC model is an independent risk-based regulator, the Dubai Financial Services Authority (DFSA), which grants licenses and regulates the activities of all banking and financial institutions in DIFC. As a financial free zone with an independent jurisdiction, DIFC has three independent authorities:
- Dubai Financial Services Authority (DFSA);
- Dubai International Financial center Authority (DIFCA) and;
- DIFC Courts operating under English common law;
These three authorities ensure that DIFC offers a highly professional yet business-friendly environment operating with the best practices and recognized by all the major financial centers across the world.
The DIFC Regulatory regime for Funds has been designed to meet international standards for regulation and, where required, to provide adequate investor protection.
The DFSA has provided a facilitative, business-friendly regulatory framework while remaining compliant with the International Organisation of Securities Commission’s (IOSCO) principles for regulating Funds.