The Dubai Financial Services Authority (DFSA) plans to relax regulations on hedge funds to attract more funds to Dubai. According to Bloomberg, the DFSA is considering lowering capital thresholds, reducing emergency fund requirements, and eliminating regulatory approval for senior management appointments. This would be the most significant regulatory reform in nearly 20 years, expected to be implemented as early as 2026. Currently, there are over 70 hedge funds in Dubai, most managing assets exceeding 1 billion dollars. The proposed reforms will apply to DFSA Class 3 license holders, such as lowering the minimum capital to 140 thousand dollars for smaller local funds down to 40 thousand dollars, further reducing the entry barrier for new fund establishments. Additionally, some positions, such as compliance officers and chief financial officers, will be independently appointed by the company without prior regulatory approval.

PANews reported on March 21 that according to Bloomberg, the Dubai Financial Services Authority (DFSA) is considering lowering capital thresholds, reducing emergency funding requirements, and removing the need for regulatory approval for senior management appointments to enhance Dubai's attractiveness to hedge funds. This will be the most substantial regulatory reform in nearly 20 years and will be implemented as early as 2026.
 There are currently more than 70 hedge funds in Dubai, most of which manage more than $1 billion in assets. The proposed reforms will be implemented for DFSA Category 3 license holders, such as reducing the minimum capital to $140,000 and small local funds to $40,000, further lowering the threshold for new fund establishment. In addition, some positions such as compliance officers and financial officers will be appointed by companies independently without prior regulatory approval.

Dubai Plans to Relax Regulations to Attract More Hedge Funds