Dubai Plans Major Regulatory Reforms to Attract Hedge Funds

According to PANews, the Dubai Financial Services Authority (DFSA) is considering significant regulatory changes to enhance the city's appeal to hedge funds. These changes, which could be the most substantial in nearly two decades, are expected to be implemented as early as 2026. The proposed reforms include lowering capital thresholds, reducing emergency fund requirements, and eliminating the need for regulatory approval for executive appointments. Currently, Dubai hosts over 70 hedge funds, most managing assets exceeding $1 billion. The reforms aim to impact DFSA's Category 3 license holders by reducing the minimum capital requirement to $140,000 and lowering it further to $40,000 for small local funds, thereby easing the establishment of new funds. Additionally, positions such as compliance officers and financial officers could be appointed by companies without prior regulatory approval, streamlining operations for hedge funds in Dubai.