DIFC Proposes New VCC Regulations for Investment Flexibility
Dubai International Financial Centre (DIFC), the global financial hub in the Middle East, Africa and South Asia (MEASA) region, has announced plans to introduce new Variable Capital Company (VCC) Regulations.
The proposed regulations aim to enhance investment structuring and asset management for proprietary investment activities within the DIFC.
Jacques Visser, Chief Legal Officer at DIFC Authority, revealed the launch of a public consultation for the proposed regime. He stated that the new VCC model offers a flexible share capital structure designed to support proprietary investment strategies.
The VCC framework is tailored for proprietary investments and does not require authorisation from the Dubai Financial Services Authority (DFSA) or the appointment of a regulated fund manager unless the company engages in regulated financial services. This makes the VCC an efficient vehicle for investors seeking flexibility and lower procedural burdens.
Key features of the proposed VCC Regulations include: Flexible structure options, allowing standalone companies or umbrella entities with incorporated or segregated cells
Share capital equal to net asset value, enabling efficient share issuance and redemptions
Distributions allowed from capital, not limited to profits
Asset and strategy segregation with centralised management benefits
DIFC reported that the VCC model may particularly benefit family-owned businesses, high-value multi-asset holdings, and complex proprietary investment portfolios such as secondaries structures.
The proposed regulations are detailed in Consultation Paper No. 2 of 2025. The public consultation will remain open for 30 days, with comments accepted until 24 July 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Business
34 minutes ago
- Gulf Business
Dubai PropTech Hub launches at DIFC Innovation Hub
Image: DIFC The DIFC Innovation Hub and Dubai Land Department (DLD) have launched the The Dubai PropTech Hub is expected to support more than 200 PropTech start-ups and scale-ups, generate over 3,000 jobs, and attract $300m in investment by 2030. The hub will offer startups customised licensing, purpose-built workspaces, advanced incubators, and access to joint pilots and venture-building initiatives. A comprehensive support system will help fast-track innovation from concept to commercialisation, while participants can benefit from early-stage incubators and global thought leadership programmes. Under the directives of Hamdan bin Mohammed, DIFC and Dubai Land Department have launched the Dubai PropTech Hub at the DIFC Innovation Hub. As the region's first PropTech hub, the initiative will bring together the entire real estate value chain, introducing a new model for… — Dubai Media Office (@DXBMediaOffice) Proptech Hub is a natural extension of REES 'DIFC is proud to unveil the Dubai PropTech Hub and provide a world-class financial and regulatory environment that supports real estate innovation,' said Essa Kazim, governor of DIFC. 'This landmark initiative fast-tracks the expansion of the proptech market in Dubai and positions the emirate as a global leader in real estate innovation.' Omar Hamad BuShehab, director general of Dubai Land Department, added, 'This hub is a natural extension of the Real Estate Evolution Space Initiative ('REES') launched by DLD to support the innovation ecosystem. We are enhancing Dubai's global competitiveness and offering a smarter, more connected approach to real estate investment and development.' The PropTech Hub adopts a multi-stakeholder collaboration model, bringing together regulators, developers, investors, and service providers. Founding partners include leading developers such as Binghatti, Majid Al Futtaim, Sobha Realty, Union Properties, and infrastructure provider Transguard, which is currently exploring AI-powered smart building and security applications through DIFC-led pilots. By leveraging advanced technologies, the Dubai PropTech Hub aims to create a more accessible, transparent, and tech-enabled property market for residents, investors, and global stakeholders.
Sharjah 24
14 hours ago
- Sharjah 24
Arada sells signature penthouse at Akala for AED125m
Spanning two floors at the top of one of Akala's 220-metre twin towers, The Observatory offers panoramic, unblocked views of the Burj Khalifa, Downtown Dubai, DIFC and the Zabeel area. Featuring six bedrooms, The Observatory is also notable for a number of design features including an expansive Grand Room that showcases the views, public and private wings, an art gallery and a rooftop terrace with private pool and jacuzzi. 23,000 square feet in size At over 23,000 square feet in size, The Observatory is larger than any apartment ever sold in the DIFC, and is also the biggest apartment sold in Dubai so far this year. Located between Index Tower and Central Park Towers, the AED5 billion Akala project is underpinned by a precision wellness ecosystem that integrates advanced diagnostics, performance therapies and a curated hospitality model to deliver measurable health outcomes. Ahmed Alkhoshaibi, Group CEO of Arada, said: 'We have positioned Akala as the world's most advanced wellness residences, and this sale underscores the strength of demand for a new category of real estate, which is intentional, intelligent and focused on long-term wellbeing. In addition, the high value of this penthouse, which is rare for a non-waterfront property, speaks to the strength of Akala's location, product quality and brand positioning.' 534 branded residences at Akala The 534 branded residences at Akala, as well as the ultra-luxury five-star hotel located in the same complex, incorporate built-in wellness features, including air and water purification systems, circadian lighting, organic sleep systems and intelligent climate zoning. Shared amenities span more than 13,000 square metres and include a clinical wellness centre, spa, high-performance gym and studios, as well as the Akala Spa. Akala also features a unique 'weightless' service environment, combining AI-enabled hospitality, wellness concierges, in-home treatments and curated meal plans. Akala is LEED Gold and WELL Silver precertified and is the first location in a global pipeline of wellness-focused residences and retreats planned under the Akala brand. Construction on Akala will begin in 2026 and is scheduled to be completed by the end of 2029.
Arabian Post
21 hours ago
- Arabian Post
Business Bay's Off‑Plan Triumph Ushers New Investment Wave
Business Bay achieved over AED 4.5 billion in off‑plan real estate sales during the second quarter of 2025, completing more than 1,900 transactions and cementing its reputation as a premier residential and investment epicentre in Dubai. Contributing 5 per cent of the emirate's total real estate sales value, while representing only 3 per cent of transaction volume, the district demonstrated its enduring appeal and pricing power amid a booming market. Dubai's overall property market reached AED 66.8 billion in sales across 18,700 transactions in May 2025, marking a notable 44 per cent year‑on‑year rise in value and a 6 per cent increase in volume. Business Bay clearly emerged as a key driver of that momentum. Strategically positioned between Downtown Dubai and Dubai Canal, Business Bay offers direct connectivity via Sheikh Zayed Road and Dubai Metro, along with proximity to DIFC and upscale hospitality hubs. That prime placement, combined with high‑rise lifestyle offerings and strong potential yields, continues to draw interest from both domestic and international investors. ADVERTISEMENT Developers are responding with a series of branded‑residence and design‑led launches aimed at high‑net‑worth individuals and global buyers. A notable example is QUBE Development's partnership with The Lux Collective on an exclusive luxury residential project, now under construction in the district's core. Analysts also point to evolving buyer preferences and macro‑economic tailwinds. Condor Developers' chairman V. Sivaprasad highlighted that off‑plan purchases remain attractive due to flexible payment structures, competitive pricing versus ready properties, and anticipated returns in high‑growth neighbourhoods such as Business Bay, Downtown, Marina and Jumeirah Village Circle. Data from CBRE reinforces this trend, reporting a more than 46 per cent year‑on‑year growth in off‑plan sales during the first five months of 2025 in Dubai and underlining demand for branded and design‑forward developments. Knight Frank's UAE Property Market Review records a 22 per cent year‑on‑year rise in off‑plan prices in Business Bay for Q2 2025, surpassing the broader Dubai average of 15 per cent increase. Analysts attribute this to enhanced waterfront offerings, branded launches and sustained inflow of international high‑net‑worth individuals drawn by tax‑free structures and investor‑friendly visa policies. Further supporting demand, the UAE's Golden Visa initiative — granting long‑term residency to investors and skilled professionals — continues to be a compelling driver in off‑plan sales. Developers are increasingly designing projects to align with the AED 2 million investment threshold required for visa eligibility, enabling investors to combine real estate gains with residency benefits. Market watchers caution against potential headwinds such as inflation, global interest rate changes and geopolitical uncertainties. However, Dubai's economic stability, currency peg, robust fiscal policy and sustained foreign investment inflows appear to mitigate these risks. Experts anticipate that off‑plan momentum will persist into the latter half of 2025, especially in core districts such as Business Bay, Mohammed Bin Rashid City and Dubai Creek Harbour. Beyond residential demand, the city's commercial and retail off‑plan sectors are gaining traction, backed by rising office rents and limited Grade‑A inventory. Firms such as JLL and Knight Frank report strong resilience in office demand, especially in DIFC, Downtown and Business Bay, with commercial off‑plan developments increasingly targeting foreign investors and visa‑eligible buyers. Population growth is also catalysing demand across both segments. Dubai's population exceeded 3.7 million in early 2025, prompting a rise in businesses and infrastructure development. Commercial and residential off‑plan schemes alike are being launched with extended payment plans and branded offerings to satisfy investor appetite. Development firms are exploring innovative financing mechanisms, such as Danube Properties' '1 per cent monthly' plan, enabling buyers to pay 20 per cent upfront, with the remaining 80 per cent distributed across monthly instalments. That model has improved affordability and drawn middle‑income investors, expanding Dubai's target buyer base.
