(MENAFN) The UAE plans to implement new investment fund rules, which analysts say could hamper the Gulf state's ambitions to become a financial hub, Reuters reported.
The Securities and Commodities Authority (SCA) will apply the new rules to firms based in Dubai International Financial Center (DIFC).
The new rules include minimum capital requirements for new domestic funds and guidelines on promoting and offering foreign funds in the UAE.
The authority has classified funds created inside the free zone as 'foreign funds', which were previously operating under offshore laws.
The new rules require foreign funds' offerings to go through a local promoter like banks and investment firms. Promoters must be licensed by the central bank.
The upcoming rules have raised concerns that they might prompt some funds to look to more competitive free zones to set up there.
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