Keynotes:

DIFC ArtNights epitomizes Dubai’s fusion of finance and art, with its 17th edition showcasing a vibrant canvas of creativity. Offering seamless establishment processes and direct access to an elite clientele, DIFC stands as a prestigious art hub, drawing in enthusiasts from all corners to set up a new retail business or art galleries in DIFC.

Within the vibrant heartbeat of Dubai, the Dubai International Financial Centre (DIFC) has evolved into more than just a financial hub – it’s a thriving canvas for the arts. Art galleries, since the inception of DIFC, have played a pivotal role in shaping the district’s character, offering an enticing gateway to wealthy and high-net-worth clients. Reflecting this, the 17th edition of DIFC ArtNights is marked by a burst of creativity, featuring mesmerizing artworks in an open-air gallery, engaging panel discussions, a FLTRD Fashion Pop-Up, and enchanting musical performances. This biannual event is all about transforming the pedestrian-only Gate Village district into a vibrant kaleidoscope of music, art shows, delectable food offerings, and an array of captivating events. It’s a celebration that draws in art enthusiasts from all corners.

It is not about just art, but a magical blend of art and finance as establishing a new retail business or art gallery in the DIFC is a swift and uncomplicated process. DIFC, a vibrant community of retail and lifestyle, stands as the unparalleled financial hub in the region, providing a hassle-free commercial licensing and operational environment that is well-suited for various art gallery concepts.

Advantages of setting up a new retail business or art galleries in DIFC:

1. Seamless Establishment Process: Setting up shop in DIFC is easy as the Centre, known for its efficiency, offers a straightforward commercial licensing and operating environment – a crucial factor for art galleries looking to establish a presence quickly.

2. Direct Access to Elite Clientele: DIFC’s status as the unrivaled financial hub of the region provides art galleries with a golden opportunity – direct access to both wealthy and high-net-worth clientele. This unique advantage sets the stage for a flourishing art market within the district.

3. Recognition as an Art Hub: DIFC isn’t just a financial powerhouse; it’s also a recognized art hub in Dubai. The synergy between finance and art is evident, creating an environment that appeals to those seeking a prestigious and internationally acclaimed location for their galleries.

Learn about the Law and Its Significance!

Understanding the Law of Data Protection in DIFC

As Personal Data Processing is a key factor, brushing up your knowledge about the Law of Data Protection in DIFC which gives an ample amount of protection to your personal data. Dubai International Financial Centre paved the way for data protection by adopting its most recent DIFC Data Protection Law (DP Law) No. 5 of 2020 for personal data processing. Like the Abu Dhabi Global Market (ADGM) Data Protection Regulations, the DIFC DP Law appoints a Commissioner of Data Protection as the supervisory authority. While both entities share common goals, they differ in the roles of Data Controllers and Data Processors.

The story of penalty in Law of Data Protection in DIFC

There was a non-compliance of a consulting firm to the DIFC DP law by not providing valid notice to data subjects, specifically contacts of new or existing employees, about the collection and use of their information for marketing purposes. The consulting used the personal Email addresses for direct marketing purposes without the knowledge of data subjects which is a breach of privacy and contravention to the DIFC DP law. A monetary penalty was imposed on the firm, amounting to $15,000 because of its non-compliance with the DIFC Data Protection Law.

Key Players in Law of Data Protection in DIFC: Data Subject, DPIA, and DPO:

· Data Subject: Individuals to whom personal data relates.
· DPIA (Data Protection Impact Assessments): Conducted for high-risk data processing, revealing potential risks to data subjects’ rights.
· DPO (Data Protection Officer): Oversees compliance, liaises with the Commissioner, conducts assessments, and manages DPIAs for high-risk processing activities.

Now, if a Data Breach happens, What’s Next?

In the event of a data breach, the Data Controller serves as the primary point of contact. It is the responsibility of the Data Controller to promptly notify the Commissioner of any breach involving personal data that puts the confidentiality, security, or privacy of a data subject at risk. Furthermore, the Controller must extend this notification obligation to the affected data subject if the breach is likely to pose a threat to their security or rights. This two-tiered notification process ensures transparency and timely communication in the face of potential risks to individuals’ personal information. Such measures align with the principles of the DIFC Data Protection Law, emphasizing the importance of swift action to mitigate the impact of data breaches on data subjects.

Penalties for Non-Compliance: While the DIFC DP Law specifies fines ranging from $10,000 to $100,000 for non-compliance, the Commissioner may impose fines beyond this range, deeming them reasonable and proportionate.

Tips to Comply with the Law of Data Protection in DIFC.

1. Clearly define lawful bases for processing personal and sensitive data.
2. Specify legitimate interests for transparent data processing.
3. Outline DPO duties and responsibilities.
4. Transfer data outside DIFC only to jurisdictions with adequate protection levels.
5. Inform data subjects when obtaining their personal data.
6. Clarify responsibilities among joint controllers, processors, and sub-processors.
7. Ensure data subjects’ rights are respected.
8. Promptly notify the Commissioner and data subjects of any personally identifiable information breaches.

MS’s Commitment to Data Protection in DIFC

In an era where personal data protection is paramount, understanding and complying with regulations like the DIFC DP Law is crucial. The above-mentioned case serves as a reminder that non-compliance can lead to significant penalties. As an advocate for data protection, MS emphasizes adherence to the DIFC DP Law to avoid penalties. Staying informed and implementing best practices are key to navigating the complex landscape of data protection in the DIFC.

click on the link to see a graphical presentation of the DIFC data protection carousel:
https://www.linkedin.com/feed/update/urn:li:activity:7159906525535211520

DIFC positioned as the central hub for Hedge
Funds in the region

Hedge funds are showing increasing interest in Dubai as a gateway to the region, looking to establish a presence in DIFC – a rising global hub for alternative investments and hedge funds. DIFC also boasts a unique offering of ecosystem benefits, particularly for hedge funds, in addition to additional regulatory, infrastructure, and environmental advantages at the emirate level. DIFC has more than 60 hedge funds already registered or in the pipeline and 55% of DIFC-based hedge funds originate from US & UK. The migration of hedge funds to DIFC from other global and regional centres reinforces Dubai’s reputation as the region’s leading financial centre and business capital. It also reflects the emirate’s ability to attract top talent and provide access to large concentrations of public and private capital.

The Dubai Financial Services Authority (DFSA), which is globally recognized for its transparency and governance, has always been an accessible and collaborative regulator. While overseeing the DIFC jurisdiction for almost 20 years now, the DFSA frequently consults with the industry, unlike markets where funds have continued to become frustrated by slow and rigid approaches

“DIFC is delighted to welcome our new hedge fund clients to the Centre thereby continuing our remarkable growth as a rising global hub for hedge funds and certainly the region’s largest hedge fund market. Our new clients will manage and grow their business by attracting top global talent and by tapping into deep pools of public and private capital accessible in, and from Dubai.”

Salmaan Jaffery, Chief Business Development Officer, DIFC Authority,

Alongside an environment of ambitious innovation, the DIFC ecosystem also provides the perfect set of partners for funds and their portfolio managers looking to establish in Dubai. Hedge funds can hit the ground running with unparalleled access to high-caliber professional advisors, including law firms, consultancies, and tax specialists within the Centre

DIFC’s world-class ecosystem and infrastructure to support hedge fund capabilities

DIFC is the largest financial services ecosystem in the region and has become a preferred destination for financial institutions from all sectors. It is widely regarded as being on par with the world’s leading financial centres.
Financial institutions, hedge funds included, recognize DIFC’s governmental support, ease of doing business, market-leading operating environment, innovation offering, depth of ecosystem, and forward-thinking legal and regulatory framework. The quality and range of DIFC’s independent regulation, common law framework, supportive infrastructure, and tax-friendly regime make it an ideal base to satisfy the region’s rapidly growing demand for financial and business services.

A regulatory framework that fosters facilitation and aligns seamlessly with international standards.

DIFC’s regulatory model centres on an independent risk-based regulator, the Dubai Financial Services Authority (DFSA), closely modeled on legislation employed in London and New York. In addition to granting licenses, the DFSA regulates all financial institutions, including hedge funds, in DIFC and oversees a legislative system that is consistent with English Common law – the global standard for financial services. The regulator also consults on prospective regulations with industry stakeholders. DIFC has its own set of civil and commercial laws and regulations, in addition to an independent judicial system represented by DIFC Courts, which have exclusive jurisdiction over all civil and commercial disputes arising within DIFC and relating to DIFC-registered entities. The Centre has also made several enhancements for hedge fund clients looking to domicile both their manager and funds at DIFC. It waives DIFC registration costs, reduces regulatory capital, and lowers regulatory fees by as much as 60–80 percent. Hedge funds based in DIFC can be set up as Qualified Investor Funds, Public Funds, or Exempt Funds. The latter are subject to lower regulation in DIFC as they are open to accredited or professional clients only. These funds are also subject to lower base capital requirements – USD 70,000 as opposed to USD 500,000 for public funds – and a fast-track application process which the DFSA aims to complete within five days.

Hedge Funds in DIFC

The Fund Manager of a Hedge Fund is responsible for ensuring that risks associated with the Fund are adequately managed by:

Ensuring that there is adequate segregation of duties between the investment function and the Fund valuation process;

Observing best practice standards and guidance issued by the DFSA, in particular, the DFSA Hedge Fund Code of Practice; and

Observing the requirements that relate to the appointment of prime brokers with authority to combine the assets of the Fund with any other assets, which can only be done in respect of Exempt Funds, and not Public Funds.

DFSA Hedge fund can be a Public Fund or a Professional Fund

Public Funds

Public Funds are open to Retail Clients (as defined by the DIFC), and hence subject to higher levels of regulation. The other features of a Public Fund in the DIFC are:

1. No minimum subscription limit.
2. Units are offered to the general public.
3. Can have any number of unit-holders.
4. Have to comply with IOSCO principles.

Exempt Funds

Exempt Funds are open only to Professional Clients (as defined by the DIFC). The other features of an EF are:

1. Minimum subscription of US$ 50,000.
2. Units are offered to persons only by way of a Private Placement.

Qualified Investor Funds

Qualified Investor Funds are open only to Professional Clients (as defined by the DIFC). The other features of a QIF are:

1. Minimum subscription of US$ 500,000.
2. Units are offered to persons only by way of a Private Placement.

How MS can help you in DIFC?

We offer end-to-end support for Hedge Fund license applications, guiding you through the entire process. From initial consultations to authorization assistance and the preparation of legal documentation, MS Facilitators ensure your application aligns seamlessly with the DFSA Rulebook, guaranteeing comprehensiveness and compliance.

Our comprehensive services encompass:

The business landscape in the United Arab Emirates (UAE) is witnessing a profound transformation with the enactment of the Dubai International Financial Centre (DIFC) Family Arrangements Regulations. This regulatory evolution, effective from January 31, 2023, marks a decisive shift from the Single-Family Office (SFO) regime, aligning seamlessly with the recently introduced UAE Family Business Law. In this blog post, we delve into the intricacies of these regulations and their implications on the landscape of family businesses within the DIFC.

A Strategic Transition:

The journey begins with a graceful transition for Single Family Offices (SFOs) as they evolve into Family Offices under the new regulations. The transition period, extending until January 31, 2024, provides entities with the necessary time to adapt to the regulatory nuances.

Simplified Registration Process:

Noteworthy is the simplification of the registration process. Family Offices are no longer bound to register as Designated Non-Financial Businesses or Professions (DNFBP) with the Dubai Financial Services Authority (DFSA). However, the landscape is nuanced for multi-family offices, necessitating DFSA authorization and licensing for those engaging in financial services for multiple families.

Certification and Accreditation Programs:

Recognizing the unique needs of family businesses, the DIFC introduces certification and accreditation programs. These programs are designed to fortify the support system for family businesses and their advisors, aligning with the overarching goals of the UAE Family Business Law.

Flexibility for Single Families:

The regulations extend flexibility for Single Families, allowing Family Entities or Family Offices to operate beyond the DIFC’s jurisdiction. This flexibility is contingent upon demonstrating a substantial presence in the UAE and appointing a Corporate Service Provider as a registered agent in the DIFC.

Confidentiality at the Forefront:

Confidentiality takes centre stage in the regulatory landscape. The DIFC maintains a special Family Businesses register, offering a private repository for sensitive information, shielding it from public disclosure. This move underscores a commitment to safeguarding the proprietary details of family businesses.

Licensing Requirements and Minimum Net Asset:

To be licensed as a Family Office, entities must meet specific criteria. Submission of relevant documentation and maintaining a minimum net asset requirement of USD 50 million are central to the licensing process. The assessment of net assets can be determined through fair market value or a book value assessment.

Alternative Dispute Resolution (ADR):

The regulations lay a robust foundation for Alternative Dispute Resolution (ADR) within Family Structures. This provision allows for arbitration to resolve disputes, aligning with the UAE Family Business Law’s emphasis on establishing committees in each Emirate to oversee family business disputes.

In conclusion, the DIFC Family Arrangements Regulations emerge not merely as a legal framework but as a strategic commitment by the DIFC to nurture the growth and success of family businesses in the region. As the DIFC launches the Global Family Business and Private Family Wealth Centre, it underscores its dedication to providing unparalleled support for family businesses, ultra-high net worth individuals, and private wealth offices operating within its jurisdiction. These regulations set the stage for a more transparent, flexible, and supportive environment, reflecting the evolving needs of family businesses in the dynamic landscape of the DIFC.

How MS can help?

MS stands as the premier service provider in DIFC, offering a suite of tailored solutions for family offices. Our expertise spans advisory, meticulous family office formation, streamlined re-domicile services, and efficient management/administration. Elevate your experience with our bespoke concierge services, ensuring unparalleled support. With a commitment to excellence, MS is your trusted partner, providing comprehensive, integrated solutions that empower and advance family offices in the dynamic landscape of the Dubai International Financial Centre.

Pioneering Financial Evolution with AI, Big Data, and Cloud

As we enter 2024, the financial landscape is evolving at an unprecedented pace, driven by the transformative forces of Artificial Intelligence (AI), Big Data, and Cloud technology. At the heart of this evolution, DIFC emerges as a thriving hub, empowering financial service providers with unparalleled opportunities.

“The world of finance is undergoing significant transformation as innovation continues to revolutionize the industry. During 2024, we expect AI, Big Data and Cloud to play a significant role in driving the future of finance.” –

Arif Amiri ( Chief Executive Officer of DIFC Authority )

DIFC: A Nexus of Innovation

The journey of digital economies, initiated in the 1990s and accelerated during the dot com boom, saw a resurgence around 2001. Today, technology remains the backbone for facilitating information, goods, and service exchanges in digital economies. Governments and financial centers, like Dubai International Financial Centre (DIFC), create frameworks and regulations to stimulate financial innovation.

Sandboxes, prevalent in the Middle East, provide a safe space for organizations to test new ideas. The pandemic has further fuelled the adoption of digital technology, with Dubai and the wider UAE at the forefront of embracing a digital strategy. DIFC, hosting over 800 companies, prioritizes innovation and identifies three trends shaping the future of finance: Artificial Intelligence (AI), Data, and Cloud.

Deploying AI

AI plays a pivotal role in the finance industry, particularly in combatting financial crime. Collaborations like the Mastercard Global Cyber Forward program with DIFC focus on enhancing readiness against cyber threats, incorporating AI elements. Additionally, DIFC’s Dubai AI and Web3 Campus launched the Artificial Intelligence Transformation Programme, a flexible corporate accelerator aimed at future-proofing regional businesses by boosting their AI capabilities. This initiative not only strengthens Dubai’s global competitiveness but also fosters talent, encourages innovation, and propels economic growth.

Data Mastery

Data’s pivotal role in digitizing financial services is evident, shaping risk assessment, sales modeling, pricing, marketing, relationships, and decision-making. DIFC, envisioning the future of finance, pioneered the first data privacy regulations in the Middle East, Africa, and South Asia, encompassing AI and machine learning. With 20 years of financial prominence, DIFC’s advanced data privacy laws and robust IP protection for innovative solutions set regional benchmarks. Ethical data processing, especially in AI and machine learning, remains a priority, with ongoing efforts for testing use cases through consultation, inspection, and supervision.

Accelerating Cloud Migration in Finance

While cloud technology, offering remote access to storage and data assets, seems ideal for the finance sector, its adoption has been relatively slow due to complexities. Early adopters are typically digital-first new banks or traditional banks undergoing significant digital transformations. Migrating to the cloud necessitates education and cross-team integration, involving product development, marketing, risk, compliance, and IT teams. Despite some still opting for data centers, many financial players embrace cloud technologies for data storage, reaping benefits like organizational restructuring, operational efficiency, informed decision-making, and enhanced product planning. For finance leaders, understanding the potential of AI, data, and cloud is vital for driving strategic innovation in the future of finance.

The DIFC Advantage in 2024

DIFC isn’t just a location; it’s an ecosystem that fosters collaboration and innovation. In 2024, companies within the DIFC community benefit from a collaborative environment where ideas converge, partnerships flourish, and synergies abound. This ecosystem-driven approach propels DIFC to the forefront of global financial innovation.

As we navigate the transformative landscape of 2024, DIFC stands as a testament to the symbiotic relationship between innovation and financial excellence. The integration of AI, Big Data, and Cloud within the DIFC ecosystem propels companies into the future, allowing them to not only adapt to change but to thrive in it. In the heart of Dubai, DIFC remains the epicenter of financial evolution, where cutting-edge technology and a progressive mindset converge to shape the future of finance.

How Can MS Elevate Your Journey in 2024?

At MS, we understand the pulse of innovation and are here to guide you through every step. Our comprehensive suite of services, ranging from strategic advisory, seamless business setup, and compliance services to robust FO & MLRO solutions, as well as top-notch accounting & tax services, is designed to be your compass in navigating this transformative era. Let’s not just adapt to change, but lead the change together. Elevate your financial endeavors with MS, where expertise meets innovation.