Dubai’s DFSA, EU Regulators Tie Up To Hike Investment Flows

The regulators will supervise fund managers operating between the Dubai International Financial Centre and Europe.

The Dubai Financial Services Authority (DFSA) announced that it has entered into 26 supervisory co-operation agreements with European Union (EU) and European Economic Area (EEA) securities regulators.

Under the agreements, signed last month, regulators will supervise fund managers operating across borders, between the Dubai International Financial Centre (DIFC) and Europe, said a statement.

The agreements will also allow fund managers in the DIFC to manage and market Alternative Investment Funds (AIFs) to professional investors in the EEA. AIFs include hedge funds, private equity funds and real estate funds.

“Managing and marketing such funds into Europe will allow DIFC-based fund managers access to a greater pool of investors,” the statement said.

The DFSA negotiated the agreements with the European Securities and Markets Authority (ESMA).

The EU signatories include France, UK, Netherlands, Ireland, Portugal, Spain, Italy, Luxembourg, Cyprus, Sweden, Finland, Denmark, Norway, Iceland, Liechtenstein, Hungary, Malta, Lithuania, Greece, Belgium, Bulgaria, Poland, Estonia, Latvia, Czech Republic and Romania.

Ian Johnston, CEO of the DFSA said: “The DFSA’s efforts to improve cross-border opportunities will further facilitate investment flows and will benefit investors and the funds industry.”

The DFSA currently has bi-lateral agreements with 13 of its European counterparts.

Trade ties between the EU and the UAE are very strong, with the Emirates among the top 10 international export destinations for the European Union outside the EEA.

Bilateral trade volumes during the first half of 2012 reached around Dhs74.397 billion, and stood at Dhs146.772 billion in 2011.