The United Arab Emirates (UAE) continues to be a leading financial hub, attracting businesses, investors, and entrepreneurs from across the globe. With DIFC (Dubai International Financial Centre) and ADGM (Abu Dhabi Global Market) offering robust regulatory frameworks, setting up a financial services firm in these jurisdictions requires strategic planning and expert guidance.
Why DIFC and ADGM?
Both DIFC and ADGM are internationally recognized financial free zones governed by independent legal and regulatory frameworks. These jurisdictions provide 100% foreign ownership, tax efficiency, a strong legal system, and access to global financial markets.
Choosing the right jurisdiction depends on several factors, including the nature of business activities, regulatory requirements, and long-term business objectives.
Current Landscape of DIFC and ADGM
By September 2024, DIFC was home to over 400 wealth and asset management firms, including 44 hedge funds each managing assets exceeding $1 billion, reflecting a significant 58% increase from the previous year - https://www.difc.ae/whats-on/news/difc-pioneers-new-initiatives-to-support-influx-of-wealth-and-asset-management-firms
Similarly, the Abu Dhabi Global Market (ADGM) has experienced remarkable growth. By the end of June 2024, ADGM had issued 1,271 new licenses, marking a 20% increase from the prior year. The number of fund and asset managers operating within ADGM reached 112, collectively managing 141 funds. Notably, ADGM recorded a 226% surge in assets under management in the first half of 2024 compared to the same period in 2023
https://www.adgm.com/media/announcements/adgm-continues-rapid-growth
Both DFSA and FSRA play a crucial role in upholding the integrity of the UAE's financial ecosystem. These regulators are known for their transparent, business-friendly, and globally aligned regulatory approaches, making DIFC and ADGM attractive destinations for financial institutions.
The Company Formation Process in DIFC and ADGM
Setting up a company in DIFC or ADGM requires meticulous regulatory approvals, documentation, and compliance adherence.
The key steps include:
Choosing the Right Structure: Companies can be structured as Limited Liability Companies (LLCs), Branch Offices, Investment Firms, or Fund Management Entities, depending on the business model.
Regulatory Approvals & Licensing: Firms engaged in financial services, investment advisory, or asset management must obtain the necessary approvals from DFSA (for DIFC) or FSRA (for ADGM).
Compliance & Governance: Both financial centers require firms to implement strong corporate governance, AML/KYC frameworks, and risk management policies.
Office Space & Infrastructure: Firms must secure approved office space within the jurisdiction, ensuring compliance with local operational guidelines.
Our Expertise at VelthRad Consultants
Company Formation & Structuring: Advising on the most efficient legal and operational structure for businesses.
Regulatory Business Plans & Licensing: Assisting with documentation, policies, and regulatory approvals for DFSA and FSRA licensing.
Ongoing Compliance & Governance Support: Ensuring businesses stay compliant with DIFC and ADGM regulations, including audits, reporting, and risk assessments.
Talent Acquisition & HR Solutions: Helping firms recruit skilled professionals who understand the regulatory landscape.
IT Infrastructure & Cybersecurity: Providing tailored IT solutions that align with DFSA and ADGM’s technology risk guidelines.
At VelthRad Consultants, we work closely with our clients to ensure they meet and exceed the compliance standards required by these regulators, paving the way for sustainable growth and operational efficiency.
Have questions about DIFC or ADGM company formation? Get in touch through our contact form or call us today for personalized expert advice.
