10 Leaves

This episode is also available as a blog post: https://10leaves.ae/publications/difc/difc-venture-studio-launchpad-license

The DIFC has now announced the launch of the first global “Venture Studio Launchpad” to assist with the growth of the UAE’s financial ecosystem, and to be a growth partner and business enabler to venture studios, allowing them to set up and scale from the DIFC. The Proposed Venture Studio Regulations provide the legal and regulatory framework under which venture studios, and similar arrangements, and any “spin-off” entities formed by venture studios, can establish and operate in the DIFC. This initiative complements the existing DIFC Venture Fund Manager Framework, and the DIFC Innovation licenseinitiatives, which together will serve to make the DIFC the leading destination for both innovators and their funding partners.

This episode is also available as a blog post: https://10leaves.ae/publications/difc/difc-venture-studio-framework 

Last year, the DIFC announced the launch of the first global “Venture Studio Launchpad” to assist with the growth of the UAE’s financial ecosystem, and to be a growth partner and business enabler to venture studios, allowing them to set up and scale from the DIFC. The Proposed Venture Studio Regulations provide the legal and regulatory framework under which venture studios, and similar arrangements, and any “spin-off” entities formed by venture studios, can establish and operate in the DIFC. This initiative complements the existing DIFC Venture Fund Manager Framework, and the DIFC Innovation license initiatives, which together will serve to make the DIFC the leading destination for both innovators and their funding partners.

The proposed venture studio model enables venture studios to establish a company in the DIFC that acts as both a holding and operating vehicle (“Venture Studio”), licensed to incubate new business ideas (each a “Venture”) and, if they reach a minimum viable product (“MVP”) stage, to convert the Ventures to newly incorporated Venture Studio entities (each a “Venture Studio Company”).

This episode is part of the 10 Academy training series.

Here is a bit about how we at 10 Leaves can help you.

We provide turnkey services for getting authorised, and staying authorised. Our GRC team is at hand to help you with ongoing compliances, prudential reporting and risk management. We also assist you with maintaining good corporate governance in the Firm, one aspect that is much overlooked by most firms that we have consulted. In addition to this, we help with accounting and bookkeeping activities and filing of VAT returns on a regular basis. The newly-issued Tax Laws may also be relevant to the Firm and we will assist you in registering with the authorities and creating tax efficiencies for the business.

Well, that’s it for today. Thank you for listening, and do get in touch with us by writing in to us at [email protected]. Do also visit our website at www.10leaves.ae.

Do contact us for further details!

Wikipedia defines a holding company as “a company that owns other companies' outstanding stock.”

In short, a holding company consolidates investments, be it shares in other companies or property, under a common umbrella, for ease of management and reporting. Such companies do not usually carry out a trade or service – they merely manage existing investments. The management team of the holding company also seeks to make new investments, based on certain pre-determined criteria, to expand their existing portfolios.

The ADGM offers both passive and operational holding companies. ADGM SPVs can only act as passive holding companies, and so cannot avail visas or functional office space in the centre. The advantage is that where there is no operational requirement, an ADGM SPV can act as a holding structure for a relatively low cost, and offer flexibility at the same time.

The SPV in the ADGM can hold any types of securities, including bonds, listed or unlisted shares in downstream entities, stocks, real estate worldwide, cash and commodities, loans, and intangible assets such as Intellectual Property and Patents.

This episode is part of the 10 Academy training series.

Here is a bit about how we at 10 Leaves can help you.

We provide turnkey services for getting authorised, and staying authorised. Our GRC team is at hand to help you with ongoing compliances, prudential reporting and risk management. We also assist you with maintaining good corporate governance in the Firm, one aspect that is much overlooked by most firms that we have consulted. In addition to this, we help with accounting and bookkeeping activities and filing of VAT returns on a regular basis. The newly-issued Tax Laws may also be relevant to the Firm and we will assist you in registering with the authorities and creating tax efficiencies for the business.

Well, that’s it for today. Thank you for listening, and do get in touch with us by writing in to us at [email protected]. Do also visit our website at www.10leaves.ae.

Do contact us for further details!

This episode is part of the 10 Academy training series. 

Here is a bit about how we at 10 Leaves can help you.

We provide turnkey services for getting authorised, and staying authorised. Our GRC team is at hand to help you with ongoing compliances, prudential reporting and risk management. We also assist you with maintaining good corporate governance in the Firm, one aspect that is much overlooked by most firms that we have consulted. In addition to this, we help with accounting and bookkeeping activities and filing of VAT returns on a regular basis. The newly-issued Tax Laws may also be relevant to the Firm and we will assist you in registering with the authorities and creating tax efficiencies for the business.

Well, that’s it for today. Thank you for listening, and do get in touch with us by writing in to us at [email protected]. Do also visit our website at www.10leaves.ae.

Do contact us for further details!

This episode is part of the 10 Academy training series. Do contact us for further details!

This episode is also available as a blog post: https://10leaves.wordpress.com/2022/07/10/emi-licenses-in-the-difc/

Firms interested in carrying out Money Service activities from the DIFC are required to submit applications to the Dubai Financial Services Authority, or DFSA.

The DFSA, for the purposes of authorisation and supervision, categorises money services business activities based on the type of money services being carried out, and the minimum base capital required.

The DFSA categorises the range of activities that comprise the Money Services Business into two groups: 1) Arranging and Advising on Money Services and 2) Providing Money Services.

Providing Money Services (includes issuing payment instruments, providing money transmission, issuing stored value and providing or operating a payment account).

This episode is also available as a blog post: https://10leaves.ae/publications/difc/credit-funds-in-the-difc

What is a credit fund?

Credit funds are collective investment funds that use fund property (i.e., investors’ money) either to originate, or to purchase, loans, or both. The limited options for borrowing from banks in certain markets have led to the increase in the opportunity for fund managers to provide private credit, through specialize credit funds.

Fund managers have been able to obtain access to reliable deal flow directly from targeted market segments, making use of underlying collateral, as well as gaining access to lending transactions with banks and purchasing loan portfolios from banks and other loan originators.

What does DFSA consider a Credit Fund?

Credit Funds are a specialist class of funds in the DIFC, in which investor’s money can be used for the direct purchase of loans or purchase of loan portfolios. To be a Credit Fund, at least 90% of the Fund Property should be used for either loan origination or loan portfolio acquisition. These funds can be Exempt Funds or Qualified Investor Funds, but not Retail Funds. They can be set up as Investment Companies or Limited Partnerships. The Investment Trust structure is not permissible for Credit Funds in the DIFC. Also, such funds would have to be closed-ended, with a maximum tenure of 10 years, and cannot have leverage of more than 10% of the Fund’s Net Asset Value.

This episode is also available as a blog post: https://10leaves.ae/publications/blockchain-crypto/registering-and-licensing-defi-and-dapps-in-the-difc

How to register a DeFi or DApp project in the DIFC

The Middle East has seen a flurry of tech-related activity in the recent years. Tech companies are characterized by rapid ideation followed by implementation at an equally rapid pace. Another commonality is that most tech companies start small, and then ramp up quickly upon securing funding. However, managing costs at the onset is critical, especially in the first year, so as to ensure that the tech startup does not fold before it manages to attract its first round of seed/angel investments.

A fledgling tech ecosystem needs good support from all quarters, and here is where the Dubai International Financial Centre has come to play an important part. Recognising the difficulties faced by early-stage technology companies, the DIFC made a lot of changes to create and accommodate a startup ecosystem in its award-winning onshore financial centre.

What is the DIFC?

The Dubai International Financial Centre, or DIFC, is a leading financial hub in the region for business, fintech, and lifestyle. Setup in 2004, the DIFC has grown to be one of the top 10 onshore financial centres in the world. It brought in a paradigm change in the region, by adopting a Common Law framework, with an independent regulator (DFSA) and an independent English language Common Law judiciary – DIFC Courts.

Since then, the DIFC District has matured into more than just a place to work – it is now a lifestyle destination, with retail outlets, cafes and restaurants, art galleries, residential apartments, public green areas and hotels dotting the landscape.