UAE financial bodies launch passporting facility, enabling country-wide investment fund promotion
The UAE financial regulators have announced the launch of a new fund passporting facility to help promote investment fund in the country.
In a statement, the Emirates Securities and Commodities Authority, ESCA, the Financial Services Regulatory Authority, FSRA, of Abu Dhabi Global Market, ADGM, and the Dubai Financial Services Authority, DFSA, said that following the enactment of relevant legislation and rules, a new fund passporting facility is now available.
The passporting facility, which has been the subject of extensive public consultation since November 2018, will facilitate the promotion of the funds licensed by each authority across the UAE.
Commenting on the announcement, Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the Board of Directors of ESCA, said that the Authority has endeavoured to develop the financial services sector and support the long-term economic growth of the UAE. "The implementation of the recently signed 'Passporting Agreement' as a regulatory mechanism for the mutual promotion and oversight of investment funds established in the different jurisdictions within the UAE is an important step to inspire the development of the mutual funds' market so as to achieve the goal of having more diversified investment opportunities and products," he added.
The Minister noted that the implementation of the Passporting Agreement will enhance the UAE's position as an international financial centre and a platform for entrepreneurship. "This cooperation will allow new market leaders, investors and companies to expand and grow in the UAE markets, which supports the ESCA efforts and initiatives in providing the appropriate climate for the investment of savings and funds in securities in line with the objectives of the UAE economic development process," Al Mansouri continued.
On his part, Dr. Obaid Saif Al Zaabi, ESCA Chief Executive Officer, noted that the signing of the Agreement by the three regulators in November 2018, was clearly demonstrated in facilitating the promotion of investment funds in the UAE, which in turn helps in attracting more foreign investment and in providing more options for channelling savings to new financial instruments such as mutual funds. He explained that once the passporting agreement implementation phase is completed, all parties will witness an increasing momentum on the group of financial services and activities related to investment funds such as custodies, investment management, and promotion.
Ahmed Ali Al Sayegh, Minister of State and Chairman of ADGM, said, "There has been an accelerating demand and appetite for a greater variety of domestic funds in the UAE by the investment community. The new passporting regime enables investors to access growth opportunities with greater ease and efficiency. It will also bolster the UAE’s economic diversification strategy and attract more foreign direct investments and new investors and institutions to participate and support the growth of our economy and the development of the region."
The new funds passporting rules and regulations are publicly available and uploaded on the Authorities’ respective websites.
Follow Emirates 24|7 on Google News.