DIFC Launches Consultation on Proposed Variable Capital Company (VCC) Regulations
The Dubai International Financial Centre (DIFC), the region’s leading financial hub, has released Consultation Paper No. 2 of 2025, proposing a new Variable Capital Company (VCC) regulatory framework. This initiative aims to expand the Centre’s appeal to private investors by providing greater flexibility in structuring proprietary investment vehicles.
Variable Capital Company Regulations
The proposed VCC structure is a corporate vehicle tailored for proprietary investments, including complex holding strategies and asset consolidation. Importantly, unless the VCC engages in regulated financial services, it will not require authorisation from the Dubai Financial Services Authority (DFSA) or appointment of a regulated fund manager. This feature significantly reduces regulatory and operational burdens for eligible users.
Key features of the proposed VCC Regulations:
Who may benefit?
The proposed VCC model will be of particular interest to:
- Family offices seeking consolidated structures
- High-net-worth individuals and private investors with diverse asset classes
- Managers of secondaries structures and complex investment portfolios;
These users can benefit from cost-efficient governance and enhanced structuring flexibility within the DIFC ecosystem.
Further details regarding the proposed VCC Regulations can be found in Consultation Paper No. 2 of 2025. The DIFC has opened a 30-day public consultation, with feedback due by 24 July 2025. Interested stakeholders are encouraged to review the full draft and submit comments via the DIFC website.
This blog is for informational purposes only and does not constitute legal or regulatory advice.
