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Sample report — for illustration

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A real report, generated for an illustrative fund-management expansion scenario — same structure, same depth, same scoring methodology you'd receive for your own business. Jurisdiction recommendation, side-by-side cost comparison, a licensing roadmap, and ongoing compliance obligations, all sourced from Scout's live regulatory database rather than generic templates.

Arakan Advisory Engine · Sample Engagement Report
Asset Manager Licence Expansion — Fund Management
Type: Expansion Advisory
Jurisdiction: DIFC, Dubai
Generated: Illustrative sample
● Complete
Executive Summary

This advisory report was commissioned to determine the optimal jurisdiction for a fund management licence expansion in the UAE. Based on comprehensive analysis, we decisively recommend establishment within the Dubai International Financial Centre (DIFC), achieving a leading composite score of 72/100.

The DIFC's DFSA licensing framework is the only pathway for regulated fund management and collective investment fund activities in Dubai. Total estimated Year 1 establishment cost is AED 137,000. The DFSA licensing process typically takes 4–9 months and requires a detailed business plan, compliance framework, and minimum regulatory capital of AED 500,000+.

Immediate next steps: initiate pre-application dialogue with the DFSA and begin drafting the regulatory business plan.

1
Engagement Profile

Client is an existing licensed financial services firm in the UAE, authorised for asset management and arranging custody. The firm seeks to expand permissions to include establishment and management of a Collective Investment Fund, requiring a Variation of Permission (VOP) application with the DFSA or FSRA.

Engagement Type
Expansion Advisory
Customer Type
Hybrid
Target Market
Mixed
UBO Nationality
India, UAE
Preferred Emirate
Dubai
Zone Preference
Free Zone
Projected Revenue
AED 3M – 50M
Headcount (Year 1)
11 – 25
Workforce
All Permanent
Ownership Structure
Mixed
Timeline
Normal
Office Type
Private Office
2
Jurisdiction Recommendation
Dubai International Financial Centre
DIFC · Dubai · Regulated by DFSA
#1 Recommended
72
/ 100

For a fund management business expanding into collective investment fund activity, the DIFC is the definitive choice. It is the only jurisdiction in Dubai where a DFSA licence — mandatory for this activity — can be obtained. Beyond regulatory necessity, the DIFC's institutional credibility, English common law courts, and established ecosystem of legal, audit, and banking counterparties make it the strongest platform for attracting sophisticated investors.

The regulatory pathway requires applying for a DFSA Category 3C or Category 3D licence (fund manager / managing collective investment funds), or submitting a Variation of Permission if already DFSA-licensed. Minimum capital requirements are typically AED 500,000 – AED 2,000,000 depending on activity scope.

Strengths
  • Only Dubai jurisdiction with DFSA fund management licence
  • Premier MENA institutional investor recognition
  • 100% foreign ownership
  • English common law — DIFC Courts
  • Deep financial services talent pool
Considerations
  • Higher setup and operating cost vs. conventional free zones
  • DFSA licensing: 4–9 months, intensive process
  • Minimum regulatory capital: AED 500K–2M
#1
Dubai International Financial Centre
DIFC · Dubai · DFSA regulated
AED 137,000
Year 1 Cost
10–20w
Setup Time
72/100
#2
Abu Dhabi Global Market
ADGM · Abu Dhabi · FSRA regulated
AED 115,000
Year 1 Cost
10–18w
Setup Time
70/100

ADGM is a strong alternative — particularly for Abu Dhabi-based mandates or family office structures. Its FSRA licence framework mirrors the DFSA and the slightly lower cost (AED 115,000 vs AED 137,000) may be relevant if Abu Dhabi investor relationships are the primary focus. For a Dubai-centric fund distribution strategy, DIFC's deeper ecosystem outweighs the cost differential.

3
Cost Summary
ZoneLicenceRegistrationOffice (Annual)VisasTotal Year 1
DIFCAED 25,000AED 10,000AED 75,000AED 27,000AED 137,000
ADGMAED 20,000AED 8,000AED 60,000AED 27,000AED 115,000

All figures are indicative Year 1 totals based on published fee schedules. Actual costs may vary based on activity scope, office size, and DFSA/FSRA processing fees. DFSA regulatory capital (AED 500K+) is separate from these establishment costs.

4
Licensing & Registration Roadmap
DFSA — Pre-Application & Business Plan
Est. 4–6 weeks
  1. Engage DFSA pre-application team to confirm Category 3C/3D scope and discuss the proposed fund structure (~2w)
  2. Draft the regulatory business plan: target investors, fund strategy, AUM projections, and risk framework (~3w)
  3. Prepare compliance and risk management framework documentation required for submission (~2w, in parallel)
DFSA — Formal Application & Authorisation
Est. 3–6 months
  1. Submit formal application (INP for new licence, or Variation of Permission if already DFSA-authorised)
  2. Respond to DFSA information requests and clarifications during review (typically 2–3 rounds)
  3. Deposit minimum regulatory capital (AED 500,000–2,000,000 depending on scope) upon in-principle approval
  4. Receive final authorisation and Financial Services Permission covering the new activity
DIFC Registrar — Corporate Registration
✓ 100% Foreign OwnershipEst. 2 weeks
  1. Reserve trade name and submit incorporation documents to the DIFC Registrar of Companies
  2. Execute lease for DIFC office space (required before licence issuance)
  3. Obtain DIFC commercial licence, then proceed to visa and establishment card processing
5
Post-Setup Compliance Obligations
Corporate Tax — Registration & Filing
Registration with the FTA is due within 3 months of licence issuance. Annual CT return must be filed within 9 months of financial year-end. Non-compliance results in significant FTA penalties.
DFSA Prudential & Regulatory Reporting
Ongoing prudential returns, annual audited financial statements, and notification of material changes (key personnel, controllers, fund launches) must be filed with the DFSA per the applicable Category 3C/3D reporting calendar.
Annual Licence & Lease Renewal
Trade licence must be renewed annually with the DIFC licensing authority before expiry. Operating with an expired licence can lead to fines, service suspension, and potential business termination.
UBO Register — Filing & Maintenance
Initial filing due within 60 days of licence issuance. Updates required within 15 days of any ownership change. Must be re-confirmed at each annual renewal. Non-compliance may result in fines and licence suspension.
MOHRE — Employment Contract Registration
Every employee contract must be formally registered via Tasheel. Failure to register can result in MOHRE fines and complications with employee visa processing.
Wages Protection System (WPS)
All salaries must be processed through WPS within 15 days of the monthly due date. Non-payment or delay can lead to MOHRE penalties, work permit suspensions, and legal action.
AML/CFT Compliance Programme
Maintain an active AML/CFT policy, appoint a Money Laundering Reporting Officer (MLRO), and conduct periodic independent audits as required for DFSA-regulated fund managers.
6
Scoring Methodology
40%
Activity & Market Suitability
Zone suitability flags + client profile match
25%
Cost Efficiency
Year 1 total cost relative to all zones
20%
Setup Speed
Minimum setup weeks relative to all zones
15%
Jurisdiction Preference
Client's stated free zone / mainland preference

All AED figures sourced from Scout's live regulatory database (jurisdictions / jurisdiction_packages). Composite scores are computed deterministically from verified fee data.

This is an illustrative sample report generated by the Arakan Advisory Engine for a fund-management expansion scenario. It is intended to demonstrate report structure and depth, not to serve as advice for any specific business. It does not constitute legal advice. Regulatory requirements and fee schedules are subject to change — verify with the relevant authority before relying on specific figures.

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