Fund Managers & Asset Management Firms

Fund & Asset Managers (Category 3C) in DIFC and ADGM

DIFC and ADGM are the UAE’s leading hubs for setting up fund managers and asset management firms. A Category 3C licence allows firms to manage collective investment funds and portfolios for professional clients, making it one of the most sought-after licences in the region.

Scope of Activities:

  • Manage funds and investment portfolios.

  • Advise on financial products.

  • Provide discretionary and non-discretionary portfolio management.

Benefits

  • Access to international investors under globally recognised regulatory frameworks.

  • Ability to structure funds (private, public, venture, real estate, etc.).

  • Strong investor protection and credibility with counterparties.

  • Full foreign ownership, tax efficiency, and no currency restrictions.

Mandatory Functions:

  • Senior Executive Officer (UAE resident).

  • Compliance Officer / MLRO (dual-hat allowed).

  • Finance Officer, Risk Officer, Independent Director (outsourcing allowed).

  • Internal & External Audit (mandatory, DFSA/FSRA approved).

FAQs
What are the Capital Requirements?

  1. DIFC : Base Capital of US $500,000

    Except :

    1. if the only Financial Service referred to in Rule 1.3.5(a) which the Authorised Firm is authorised to carry on is Managing a Collective Investment Fund, in which case its Base Capital Requirement is:

      1. US $140,000, if it manages any Public Fund or Credit Fund; or

      2. US $40,000 otherwise; or

    2. if the only Financial Service referred to in Rule 1.3.5(a) which the Authorised Firm is authorised to carry on is Managing Assets or Managing a Profit Sharing Investment Account (which is a PSIAr), in which case its Base Capital Requirement is US $140,000; or

    3. if an Authorised Firm is authorised to carry on more than one of the Financial Services referred to in (1) or (2) and it is not authorised to carry on any other Financial Service referred to in Rule 1.3.5(a), in which case its Base Capital Requirement is US $140,000.

  2. ADGM : Base Capital Requirement of US $250,000

    Except :

    1. If the only Regulated Activity referred to in Rule 1.3.5(a) which the Authorised Person is authorised to carry on is Managing a Collective Investment Fund, in which case its Base Capital Requirement is:

      1. US $150,000, if it manages any Public Fund or other type of fund available to retail clients; or

      2. US $50,000, if it manages a Fund other than those specified in (a).

    2. If the Authorised Person has a Financial Services Permission to carry out the Regulated Activity of Issuing a Fiat-Referenced Token, its Base Capital Requirement is US $2,000,000.

What does the timeline look like?

Typically, 7 - 10 months, depending on business plan, regulatory approvals, and staffing.

Why Setup in the DIFC?

  • Lower capital requirement (USD 140k vs USD 250k).

  • Lower annual licence fees and setup costs.

  • Faster approval timelines (7 - 9 months).

  • Established global ecosystem (5,000+ firms, USD 700bn AUM).

Why Setup in the ADGM?

  • Direct application of English law.

  • Progressive and innovation-friendly regulation.

  • Access to GCC sovereign wealth funds and Abu Dhabi investor base.

  • Growing financial centre (3,000+ entities, 226% AUM growth in H1 2024).

Back to Setup Navigator

VelthRad Consultants

Where your business journey meets seasoned guidance and seamless execution.
Let us make your business dreams a reality!
Contact us