Dubai plans to significantly reform its financial regulatory rules to attract more hedge funds.

According to a report by Bloomberg on March 21, Deep Tide TechFlow has announced that Dubai is considering significant adjustments to its regulations for fund managers to further enhance the city's status as an emerging hedge fund hub.

A spokesperson for the Dubai Financial Services Authority (DFSA) stated that the agency is conducting a comprehensive review of a series of regulatory provisions in Dubai, aiming to eliminate unnecessary regulatory burdens and lower market entry thresholds. It is reported that the DFSA plans to lower capital thresholds, reduce emergency funding requirements, and remove the need for regulatory approval for executive appointments. This will be the largest regulatory reform in nearly 20 years, expected to be implemented as early as 2026.

Currently, Dubai has attracted over 70 hedge funds, most of which manage assets exceeding $1 billion. The proposed reforms will apply to holders of DFSA Class 3 licenses, including lowering the minimum capital requirement to $140,000, with small local funds potentially dropping to $40,000, further reducing the barriers to establishing new funds. Additionally, certain positions, such as compliance officers and financial officers, can be appointed by the firms themselves without prior regulatory approval.