The financial regulators of the United Arab Emirates announced today that they had reached an agreement for facilitating the licensing of domestic funds by each authority for promotion across the UAE.
The Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA) and the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) signed the regulatory agreement in Dubai on Tuesday.
The agreement was signed by Obaid al-Zaabi, CEO of the SCA; Bryan Stirewalt, chief executive of the DFSA and Richard Teng, CEO of the FSRA.
Following the signing, Sultan al-Mansoori, the UAE’s minister of the economy and chairman of the SCA, said: “Signing this agreement and implementing its provisions will foster the relations between the three authorities. It will facilitate the licensing and promoting of investment funds to attract foreign investment.
“It will also pave the way for savings to be directed towards new financial instruments such as investment funds and activate a number of financial services and activities related to investment funds such as custodian, investment management, and promoting, as well as the management of investment funds.”
The minister added that the agreement is designed to encourage foreign licensed firms in financial free zones based in other countries to move to the UAE market.
In a statement the Dubai International Financial Centre (DIFC) said the “agreement seeks to provide the appropriate environment for the investment of savings and funds in securities in line with the objectives of the country’s economic development.”
Ahmed Ali al-Sayegh, minister of state and chairman of ADGM said: “We welcome this partnership to strengthen UAE’s position as an international financial and business hub. This collaboration will enable greater number of current and new market participants, investors and institutions to access growth opportunities in the UAE and wider region and support the growth of the capital markets.”
Saeb Eigner, chairman of the DFSA, said: “Cooperating with our fellow regulators in the UAE and around the world is a cornerstone of our regulatory approach and has been a key factor in establishing and maintaining trust and confidence in our international financial centre.”