DIFC: Consultation on Variable Capital Company Regulations

Gulf Today, 25 June 2025: DIFC has launched a public consultation on the newly proposed Variable Capital Company (VCC) Regulations, designed to provide flexible investment structuring options within the DIFC.

The proposed regulations allow the establishment of VCCs as either standalone companies or umbrella structures with incorporated or segregated cells. This setup will offer adaptability on share capital and asset segregation without needing authorisation from DFSA, unless the entity is engaging in regulated financial activities.

The VCC framework is specifically tailored to facilitate proprietary investment activities, making it particularly suitable for family-owned enterprises, multi-asset holdings, and complex investment portfolios seeking efficient asset management and diverse structuring. Important features include flexible share capital equivalent to net asset value, allowing for efficient issuance and redemption of shares, and asset segregation to facilitate distinct investment strategies and risk profiles.

The adoption of these VCC Regulations is expected to provide legal clarity and structural advantages for potential investors within the DIFC, making it an attractive option for diverse asset management strategies.

Once finalised, the VCC Regulations will empower investors to benefit from economies of scale and centralised management, reinforcing DIFC’s reputation as a leading jurisdiction for financial services.

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DIFC: New Law Enhances Courts’ Jurisdiction and Introduces Mediation Centre

A new law has been enacted to regulate the judicial and administrative functions of the Dubai International Financial Centre (DIFC) Courts.

The law clearly defines the jurisdictional scope of the DIFC Courts, which include the Court of Appeal, the Court of First Instance, and the Small Claims Tribunal.

It also establishes a procedural framework for appointing the Chief Justice and the Director of the Courts, detailing their roles and responsibilities.

A notable feature of the new law is the introduction of a Mediation Centre.

This facility provides an alternative dispute resolution pathway, allowing parties to resolve disputes amicably with the assistance of mediators registered with the DIFC Courts.

Under the new provisions, the DIFC Courts have exclusive jurisdiction over civil, commercial, and labour claims involving DIFC bodies or institutions.

This jurisdiction applies whether the claims are filed by or against these entities or if they are a party to the proceedings.

The law also addresses various aspects of court operations, including litigation and evidence procedures, handling urgent matters, enforcement, and exceptions to the compensation bond requirement.

It further covers technical defects, procedural errors, and statutes of limitations, ensuring a comprehensive legal framework for the DIFC Courts.

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