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    Starting an Assets Management Company in Dubai, UAE: A Guide

    Posted by admin Posted in Blog

    Jan 26 2024 at 12:10pm

    Starting an asset management company in Dubai, UAE can be a lucrative venture for investors looking to establish a foothold in the region’s rapidly growing financial sector. Dubai’s strategic location, favourable tax policies, and business-friendly environment make it an attractive destination for investors looking to expand their portfolio.

    To start an asset management company in Dubai, investors must first familiarise themselves with the legal and regulatory requirements. This typically involves registering the company with the relevant authorities, obtaining the necessary licenses, and complying with the local laws and regulations. Additionally, investors must have a solid understanding of the local market and the various investment opportunities available to them.

    Once the legal and regulatory requirements are met, investors can begin building their asset management company in Dubai. This involves hiring a team of experienced professionals, developing a sound investment strategy, and building a strong network of clients and partners. With the right approach, investors can establish a successful asset management company in Dubai and take advantage of the region’s growing financial sector.

    Understanding the UAE asset management landscape

    Regulatory framework

    Starting an asset management company in Dubai requires an understanding of the regulatory framework that governs the industry. The UAE is known for having a business-friendly environment, and the asset management industry is no exception. The country has a well-established regulatory framework designed to promote transparency, accountability, and investor protection.

    The Securities and Commodities Authority (SCA) is the primary regulatory body that oversees the asset management industry in the UAE. The SCA is responsible for issuing licenses to asset management companies and ensuring they comply with the relevant laws and regulations. The SCA also regulates the activities of fund managers, investment advisors, and other professionals in the asset management industry.

    Market overview

    The asset management industry in the UAE is rapidly growing, driven by the country’s economic development and increasing demand for investment products. The UAE is home to a large number of high-net-worth individuals and institutional investors, which creates a significant demand for asset management services.

    According to a report by KPMG, the total assets under management (AUM) in the UAE reached $424 billion in 2021, with an average annual growth rate of 6.5% over the past five years. The report also notes that the UAE’s asset management industry is expected to continue growing in the coming years, driven by favourable economic conditions and a growing demand for investment products.

    In summary, the UAE asset management landscape is characterised by a well-established regulatory framework and a rapidly growing market. Entrepreneurs looking to start an asset management company in Dubai need to understand the regulatory requirements and market dynamics to succeed in this industry.

    Establishing your company

    When starting an asset management company in Dubai, a few key steps need to be taken to establish your business. These steps include choosing a business structure, completing the registration process, and obtaining necessary licenses.

    Choosing a business structure

    The first step in establishing your asset management company is to choose a business structure. In Dubai, the most common business structure for asset management companies is a limited liability company (LLC). An LLC provides many benefits, including limited liability protection for the company’s owners and a flexible management structure.

    Registration process

    Once you have chosen your business structure, the next step is to complete the registration process. This process involves several steps, including:

    • Choosing a company name and obtaining approval from the Department of Economic Development (DED)
    • Drafting and signing the company’s memorandum of association (MOA) and articles of association (AOA)
    • Obtaining a trade license from the DED
    • Registering with the Dubai Chamber of Commerce and Industry (DCCI)
    • Registering with the Dubai Financial Services Authority (DFSA) if you plan to offer financial services

    Obtaining Necessary Licenses

    In addition to obtaining a trade license, asset management companies in Dubai may need to obtain additional licenses depending on the services they plan to offer. For example, if your company plans to offer investment advice or manage investment funds, you may need to obtain a license from the Securities and Commodities Authority (SCA).

    It is important to note that the requirements for obtaining licenses can vary depending on the type of license and the services being offered. You should consult with a business consultant or legal professional to ensure you meet all necessary requirements.

    By following these steps, you can establish your asset management company in Dubai and begin offering your services to clients.

    Operational setup

    Starting an asset management company in Dubai requires a well-planned operational setup. This section will discuss the key aspects of setting up an operational framework for an asset management company.

    Office location

    The office’s location is a crucial factor in the success of the asset management company. Dubai provides various options for office locations, such as free zones, business centres, and commercial buildings. A free zone offers various benefits, including 100% foreign ownership, tax exemptions, and easy company registration. Business centres provide fully furnished offices with flexible lease agreements, while commercial buildings offer more space and customisation options.

    Hiring qualified personnel

    An asset management company requires a team of qualified personnel to provide excellent services to clients. The company should hire professionals with experience in asset management, finance, and investment banking. The team should include portfolio managers, analysts, traders, and support staff. The company should also provide regular training to its employees to keep them updated with the latest industry trends.

    Technology and infrastructure

    The asset management company should invest in technology and infrastructure to provide efficient services to its clients. The company should use advanced software for portfolio management, risk analysis, and reporting. The company should also have robust IT infrastructure, including servers, network devices, and security systems, to ensure the security and confidentiality of client data.

    In summary, setting up an operational framework for an asset management company in Dubai requires careful planning and execution. The company should select the right office location, hire qualified personnel, and invest in technology and infrastructure to provide excellent services to its clients.

    Marketing and Growth Strategies

    Building a client base

    When starting an asset management company in Dubai, building a strong client base is essential for growth and success. One effective strategy is to target high-net-worth individuals and institutional investors, such as pension funds and endowments. These clients typically have significant assets to invest and may be seeking specialised investment strategies.

    To attract clients, it is vital to have a clear value proposition and differentiate your company from competitors. This can be achieved by offering unique investment products or services, providing exceptional customer service, and demonstrating a track record of success.

    Branding and networking

    Branding and networking are also essential components of marketing and growth strategies for asset management companies in Dubai. Developing a strong brand can help differentiate your company from competitors and build client trust. This can be achieved through a consistent visual identity, messaging, and reputation management.

    Networking is also critical for building relationships with potential clients and industry professionals. Attending conferences, joining industry associations, and participating in online forums can help increase visibility and credibility.

    Compliance and risk management

    Compliance and risk management are essential components of any asset management company’s marketing and growth strategy. Dubai has strict regulations governing the asset management industry, and failure to comply can result in significant financial and reputational damage.

    To ensure compliance, it is important to develop robust policies and procedures for managing risk and adhering to regulatory requirements. This can include conducting thorough due diligence on potential clients, implementing strong internal controls, and regularly reviewing and updating compliance policies.

    In summary, building a solid client base, developing a strong brand, networking, and ensuring compliance and risk management are all crucial components of marketing and growth strategies for asset management companies in Dubai. By implementing these strategies effectively, companies can differentiate themselves from competitors, build trust with clients, and achieve long-term success.

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