DIFC has introduced the Venture Studio Regulations, which is the first legal framework globally for regulating venture building. The purpose of this move is to encourage the development of innovative start-ups and scale-ups in the region, with DIFC as its base.
After a 30-day public consultation period in February 2023, the DIFC Authority’s Board of Directors has enacted the Venture Studio Regulations, which provides a legislative framework for venture building and supports the DIFC Launchpad.
The regulations establish legal certainty around the venture-building model and clarify how venture studios, entrepreneurs, and start-ups interact with each other and the wider market.
Additionally, the regulations streamline the process of doing business within the venture studio model by introducing specific operational measures that will enable the incubation of new business ideas, sponsor entrepreneurs, and reduce costs for scaling new businesses. The Venture Studio Regulations became effective on April 26, 2023.
Jacques Visser, Chief Legal Officer at DIFC, commented: “We are pleased to announce the enactment of the DIFC Venture Studio Regulations, 2023. The Regulations provide the first legislative framework for venture building globally, forming a tailored ecosystem for venture building, entrepreneurs, start-ups and investors to operate from the DIFC.”
Additionally, DIFC has announced its plan to amend the Data Protection Regulations, which aims to improve the current data protection framework in DIFC. The details about the proposed amendments are available in Consultation Paper No 2 of 2023, and they are currently open for a 30-day public consultation period until May 17, 2023. Moreover, minor changes have been made to the Prescribed Companies Regulations to align the definition of “Family” for Family Operated Businesses with the recently enacted DIFC Family Arrangements Regulations.
