Dubai International Financial Centre has enacted new Variable Capital Company Regulations, introducing a flexible corporate vehicle aimed at strengthening DIFC’s appeal as a global hub for sophisticated investment structures and proprietary asset management.
The new regulations significantly broaden the range of investment structuring and asset management options available to investors, particularly those seeking efficient vehicles for proprietary investment activities. Under the framework, VCCs will not require authorisation from the Dubai Financial Services Authority or the appointment of a regulated fund manager, unless they conduct regulated financial services.
Jacques Visser, Chief Legal Officer at DIFC Authority, said the regulations further advance DIFC’s position as a leading international financial centre while catering to a wide spectrum of applicants through a regime designed to support strong compliance and operational integrity.
Following a public consultation, the regulations allow any applicant to establish a VCC in DIFC, provided a Corporate Service Provider is appointed to handle administrative, compliance, and regulatory liaison functions with the Registrar of Companies. This requirement does not apply to exempt VCCs controlled by DIFC Registered Persons, Authorised Firms, government entities, or publicly listed companies.
VCCs may be set up as standalone companies or as umbrella structures with incorporated or segregated cells, enabling asset segregation and tailored investment strategies within a single legal framework. Share capital will be aligned to net asset value, allowing efficient issuance and redemption of shares and facilitating capital inflows and outflows.
The regulations also permit distributions from capital, subject to net asset value, rather than limiting payouts to profits.
The VCC model is expected to attract family-owned businesses, high-value multi-asset holdings, and complex proprietary portfolios seeking consolidated management, operational efficiency, and enhanced structuring flexibility within DIFC.
News Source: Emirates News Agency
