Dubai International Financial Centre (DIFC) has introduced new Variable Capital Company (VCC) Regulations aimed at significantly expanding investment structuring capabilities and enhancing asset management flexibility for proprietary investments within the centre.
The updated framework allows VCCs to be established for proprietary investment purposes without requiring separate authorisation from the Dubai Financial Services Authority, provided they are not conducting regulated financial services activities. This move simplifies the setup process while maintaining regulatory clarity.
According to DIFC Authority, the introduction of the regime reinforces the centre’s position as a leading global hub for sophisticated investment vehicles. The framework has been designed to accommodate a broad range of investor needs while upholding robust governance and compliance standards.
The regulations widen eligibility criteria, enabling a diverse pool of applicants to establish a VCC in DIFC, subject to the appointment of a Corporate Service Provider to ensure proper administration and regulatory oversight.
However, certain entities — including DIFC-registered firms, authorised financial institutions, government-related entities and publicly listed companies — are exempt from the requirement to appoint a Corporate Service Provider when forming a VCC.
The VCC structure is expected to attract family offices, institutional investors and multi-asset portfolio managers seeking operational flexibility, consolidated management and efficient capital structuring under a single corporate vehicle.
