The mutual recognition of the licensing and promotion of investment funds in the UAE

Media IN/ Abu Dhabi 11-03-2019 / WAM
The Securities and Commodities Authority (ESCA), the Financial Services Regulatory Authority (ADSM) of the Abu Dhabi Global Market (ADX) and the Dubai Financial Services Authority (DFSA) today announced a new mutual recognition mechanism for licensing local funds.
The mutual recognition mechanism – which has been subject to intensive public consultation since its signing in November 2018 – allows funds licensed by either of the three entities to promote their products in the UAE.
Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the Board of Directors of the Securities and Commodities Authority, said that the Authority is keen to develop the financial services sector and support the long-term economic growth of the country. He pointed out that the implementation of the mutual exchange agreement between the Securities and Commodities Authority The Dubai Financial Services Authority (DIFC) and the Dubai Financial Services Authority (DIFC) as a regulatory mechanism for the mutual promotion and supervision of established mutual fund funds is an important step to encourage the development of investment fund markets to achieve diversification in Its investment and investment products.
He pointed out that the effective implementation of the mutual recognition agreement will enhance the UAE’s position as an international financial center and a platform for entrepreneurship. This cooperation will allow new market leaders, investors and companies to expand and grow in the UAE markets. Which is suitable for the investment of savings and funds in securities in line with the objectives of the economic development of the State.
For his part, Dr. Obaid Saif Al Zaabi, Chief Executive of the Authority said that the signing of the agreement by the three regulators in November will have an impact on the organization of the promotion of funds within the country which contributes to attract foreign investments and open the way to channel savings to new financial instruments such as units “With the introduction of the agreement, we will see positive impacts on the revitalization of a range of financial services and activities related to investment funds such as custodian, investment management, promotion and management services of investment funds,” he said.
“The market is witnessing an increasing demand for investment funds by the business and investment community. The mutual recognition system will in turn provide more opportunities for investors to grow easily and effectively and will contribute to enhancing the country’s diversification strategy,” said Ahmed bin Ali Al Sayegh, UAE Minister of State and Chairman of the Abu Dhabi Global Market. Attract more investors and companies and increase the flow of foreign direct investment to support economic development in the region. ”
Saeb Egnner, Chairman of the Dubai Financial Services Authority, said: “We strive to maintain an environment that contributes to strengthening cooperation with other regulators in the UAE and we are committed to supporting the development of the financial services sector as well as participating in stimulating economic growth in the UAE. , By promoting the development of local funds markets.
We would like to emphasize our keenness to support the creation of a stronger and more diversified financial market through a regulatory framework that is capable of adapting to the changes and characterized by strength and robustness. This move will strengthen our harmony with the vision of wise leadership in the UAE to transform the UAE into a global financial center for international investment. “