Dubai International Financial Centre enacts Variable Capital Company Regulations establishing a VCC regime for proprietary investment

Dubai International Financial Centre has enacted new Variable Capital Company (VCC) Regulations, introducing a corporate vehicle aimed at broadening investment structuring and asset management options for proprietary investment within the DIFC. The VCC framework is designed for proprietary investment activities and, unless the vehicle undertakes regulated financial services activities, does not require Dubai Financial Services Authority authorisation or a regulated fund manager. Following public consultation, eligibility has been expanded so any applicant may establish a VCC in the DIFC if it appoints a Corporate Service Provider to handle administration, compliance and liaison with the Registrar of Companies, while exempt VCCs controlled by DIFC Registered Persons, Authorised Firms, government entities or publicly listed companies are not required to appoint a Corporate Service Provider. Key features include use as a standalone company or umbrella with incorporated or segregated cells, variable share capital aligned to net asset value for issuing and redeeming shares, the ability to make distributions from capital based on net asset value, and asset and liability ringfencing across cells. The Regulations were enacted on 09 February 2026.