Mutual Investment Fund
Explore investment funds in the UAE, including regulations, key features, and types. Learn how to launch a fund with MIRAD's expert services.
Investment Funds in the UAE
A regulated mechanism for raising capital and managing assets collectively. An investment fund pools investor capital under a licensed Fund Manager. Strategies can target equities, fixed income, real estate, private equity, Shariah-compliant products and ESG assets.
Fund regulation in the UAE
| Jurisdiction | Regulator | Core rules |
| Mainland | SCA (Securities & Commodities Authority) | Investment Funds Regulation (1/R.M. 2016, as amended) |
| DIFC | DFSA (Dubai Financial Services Authority) | DIFC Collective Investment Law No. 2 of 2010 |
| ADGM | FSRA (Financial Services Regulatory Authority) | FSRA Fund Rules under the FSMR |
Key features of a UAE fund
| Parameter | Description |
| Legal form | Unit Trust / Investment Company / Limited Partnership |
| Fund Manager | Mandatory — licensed by SCA / DFSA / FSRA |
| Custodian | Asset custodian required |
| Units | Represent an investor’s proportional interest in the fund |
| Taxation | Generally 0%, subject to structure and jurisdiction |
| Financial reporting | Annual audit and compliance are mandatory |
Types of investment funds
| Fund type | Description |
| Public Fund | Available to the wider public; public offering allowed |
| Private Fund | For qualified/professional investors (typical minimum ~USD 500K) |
| Real Estate Fund | Invests in income-generating or development real estate |
| Shariah Fund | Compliant with Islamic finance principles |
| Umbrella Fund | Multiple sub-funds under one umbrella structure |
Want to launch an investment fund in the UAE — legally and transparently?
MIRAD delivers a turnkey fund setup: from licensing to go-to-market.
Book a consultationHow funds differ from other vehicles
| Vehicle | Investors | Purpose | Licence/licence | Income |
| Investment Fund | ✅ Yes | Collective investment | ✅ Required | Pro rata via units |
| SPV | ❌ No | Asset holding | ❌ Not required | None |
| Foundation | ❌ No | Estate/asset protection | ❌ Not required | Per by-laws |
| Holding Co. | ❌ No | Asset management | ✅ Business licence/licence | Dividends/equity returns |
HowTo: Setting up an investment fund in the UAE
- Apply for and obtain the fund licence/licence from SCA / DFSA / FSRA.
- Appoint a licensed Fund Manager.
- Appoint the Custodian and Administrator.
- Prepare the Offering Memorandum / Prospectus.
- Implement AML, KYC, ESR and UBO procedures.
- Arrange annual audit and investor reporting.
MIRAD services
- Prepare documentation and secure the fund licence/licence.
- Register/appoint the Fund Manager, Custodian and Auditor.
- Design the fund’s legal and tax model.
- Ensure compliance with SCA, DFSA and FSRA rules.
- Build international structures (SPV, Foundation, Nominee).
- Launch real-estate, Shariah and ESG fund strategies.
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