New laws on formation of investment trusts

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has enacted new investment laws for Dubai"s financial free zone that will enable collective funds to be set up as investment trusts.

A statement from the Dubai Financial Services Authority, the regulator for the Dubai International Financial Centre, said the laws the Investment Trust Law, the Collective Investment Law Amendment Law (Investment Trust) and the Regulatory Law Amendment Law (Investment Trust) were enacted on August 1.

The Investment Trust Law allows people setting up collective investment funds in the DIFC an additional structure in the form of an investment trust.

Previously, domestic funds which were offered to the public, i.e. public funds, could only be structured as an investment company or an investment partnership. These funds can now be structured as an investment trust. The Investment Trust structure may also be used by private domestic funds.