The Emirates Security and Commodities Authority (”ESCA”) have implemented their new UAE Investment Funds Regulation (the “Regulations”).

In the past, the offer of units in a foreign fund to a limited number of known sophisticated investors in the UAE was tolerated without triggering any licensing and registration requirements with the UAE Central Bank, as there were no formal regulations governing this practice. The new Regulations transfer regulatory responsibility for the licensing and marketing of investment funds from the UAE Central Bank to ESCA and are aimed at protecting investors. However, the Regulations do provide the Central Bank with authority in the area of control and inspection of the financial status of investment funds.

These Regulations deal with two different issues:

• Establishment and licensing of domestic investment funds

• The promotion and offering of foreign funds in the UAE

Please see full Alert below for further information.