The Securities and Commodities Authority of the United Arab Emirates (“SCA”) has confirmed in writing that Cayman funds can now be registered with SCA for private offering in the UAE. In February, SCA stopped allowing the registration of Cayman funds for private offering.
General rules applicable to the registration of foreign funds with SCA for private offering will apply to Cayman funds. In particular, fund managers will be required to (i) appoint a locally licensed promoter, and (ii) pay an initial registration fee of AED12,000. SCA will take approximately five business days to review and approve the registration application.
SCA has also confirmed that an offering to “government-related” investors1 will be exempt from the rules applicable to the marketing of foreign funds in the UAE.
SCA has expressed its intention to introduce a requirement for a minimum subscription amount of AED500,000 per investor for foreign funds registered with SCA for private offering in the UAE but no regulation has been issued yet.
Footnotes
1) “Government-related” investors include federal or local governments, government institutions and agencies, or companies wholly owned by any of them.
