Asset Management in Dubai

With Dubai emerging as a top global financial hub, starting an asset management company in Dubai is an attractive option for financial entrepreneurs . The Emirate offers a dynamic business environment for both institutional and individual investors. It’s strategic location, tax rebates, good infrastructure, and business-friendly policies further facilitate financial companies to establish a foothold in the financial sector.

Asset management in Dubai has grown rapidly over the last decade, drawing international investment firms and business advisors to Dubai. In this article, we will discuss about asset management, its importance, regulatory framework, and the role of Dubai International Financial Centre (DIFC) in detail.

What is Asset Management in Dubai?

Business advisors in Dubai use asset management as a strategy to diversify assets and improve their clients' portfolios and finances. This procedure requires identifying markets, analysing risks, and developing plans for buying or selling financial instruments.

Asset management companies in Dubai can diversify portfolios by collaborating with a number of investors. This reduces the risk of putting money in a single financial instrument as well as provides access to high value options with better prospects for capital appreciation.

Importance of Asset Management in Dubai

A vast range of investment products such as mutual funds, exchange-traded funds (ETFs), private equity funds, and real estate investment trusts (REITs), are now part of Dubai's asset management industry. It has led investors to focus more on income-generating assets. Let us look at how asset management company formation in Dubai is beneficial for both investors and the market.

• Maximise Returns

Asset management companies help in optimal asset utilisation. This form of effective asset management leads to higher returns on investments.

• Helps in Economic Growth

As asset managers understand the importance of asset management in income generation, it boosts business growth and contributes to Dubai's vibrant economy.

• Reduce Financial Risks

Financial and operational risks can be identified and reduced with the aid of strategic asset planning and management. With asset managers helping diversify funds, you are secured from not losing your money by investing in a single source.

• Enhances Transparency

Asset management in Dubai promotes accountability and trust. Through accurate asset tracking and reporting, it enhances transparency in both public and private companies.

• Promotes Stability

Long-term stability through identification, assessment, and mitigation of risks can be ensured through asset management.

Regulatory Framework for Asset Management in Dubai

If planning to set up an asset management business in Dubai, you have to comply with the regulatory requirements set by Dubai authorities. These regulatory authorities ensure that the asset management companies follow the international best practices in a bid to promote transparency and offer investor protection.

The Dubai Financial Services Authority (DFSA), which oversees DIFC free zone and the UAE Securities and Commodities Authority (SCA) are the two main regulators that keep a tab on Dubai's financial markets. Given its independent legal system and strong regulatory framework, it is an ideal destination for business incorporation.

Role of Dubai International Financial Centre in Asset Management

For many businesses interested in asset and wealth management in Dubai, DIFC free zine is perfect for Dubai free zone company formation. All forms of public, private, Sharia-compliant, and qualified funds can be developed, distributed, and managed by asset management companies in DIFC. Let us shed light on why DIFC is ideal for asset management firms in Dubai:

• The strategic location of the free zone provides access to both regional and international markets.
• The robust and independent legal system founded on English common law and strong regulatory framework help companies get justice soon, in case of frauds and discrepancies.
• Starting an asset management company in the free zone offers a tax-efficient business environment.
• The world-class infrastructure and skilled workforce provides a competitive edge to wealth management in Dubai.
• DIFC free zone provides three types of set up options to asset managers:

1. Representative Office: The asset managers in this setting help present details about one or more financial services or products. Such offices also engage in promotional activities.
2. Category 3C: Under this option, firms engage in activities like managing collective investment funds and assets, providing custody services, and providing trust services as a trustee of an express trust.
3. Category 4:Such firms engage in activities like arranging credit, deals in investments, advising on financial products, providing fund administration, and providing trust services other than as a trustee of an express trust, among other related services.

Why Choose Commitbiz?

The future of investment in the UAE will be significantly shaped by asset management in Dubai as it develops. The Emirate presents a strong combination of opportunity, stability, and growth potential for both financial institutions and investors. Due to strategic initiatives, regulatory support, and technological advancements, asset management companies in Dubai is a great opportunity for entrepreneurs. Contact us if you are interested in setting up your own asset management firm. With more than 17 years of experience, Commitbiz can help in incorporating a business in Dubai as well as help with other business-related services like accounting, asset management, and visa services, among others.