How to Launch a Private Equity Firm in Dubai: A UK Professional's Guide

Dubai is rapidly becoming a regional hub for private equity and asset management firms due to its tax-neutral environment, international legal infrastructure, and growing access to institutional capital. For UK investors looking to expand globally, establishing a regulated PE firm in either DIFC or ADGM offers a clear path to legitimacy, bankability, and investor confidence. This blog covers legal formation, license types, fund structures, and capital requirements — plus how to align your firm with regional expectations.

Both DIFC and ADGM operate under English Common Law and offer internationally credible fund frameworks — but each has different licensing approaches and sector positioning. DIFC is often preferred by firms focused on asset management, financial services, and access to Dubai’s financial community. It offers licenses via the Dubai Financial Services Authority (DFSA), including Fund Manager, Investment Advisor, and Arranger categories. ADGM, on the other hand, is increasingly chosen for family office structures, venture capital funds, and cross-border PE vehicles, offering flexibility in fund setup and SPV structuring under the Financial Services Regulatory Authority (FSRA). For UK founders, ADGM may offer faster sandbox approvals and simplified capital structures for emerging managers. DIFC is optimal for fund passporting and deeper regional integration.

Private equity firms in the UAE typically follow a General Partner / Limited Partner (GP/LP) model, although SPV or holding company routes are also viable. In both ADGM and DIFC, you can register a private company limited by shares as the fund management entity, with a regulated fund (Qualified Investor Fund or Exempt Fund) underneath. You’ll also need a Fund Manager license and potentially an Arranging/Advisory license depending on your activities. Many UK founders choose to structure the GP in the UAE while maintaining LPs abroad — which enables capital aggregation without duplicating tax burdens. You’ll need to prepare a full fund prospectus, governance documents, and investor onboarding protocols.

Licensing a PE firm in DIFC or ADGM is not plug-and-play — it requires submission of a detailed regulatory application, including:- Founders’ credentials and “fit & proper” background- Operating budget for 12+ months- Governance and compliance structure- AML/KYC policies and risk matrix- Business plan and targeted investor baseMinimum capital depends on activity:- Advisory / Arranging License: ~$10,000–$50,000- Fund Manager License: ~$70,000+ plus operating reservesFunds are typically launched as Qualified Investor Funds (QIF) or Exempt Funds, requiring minimum ticket sizes of $50,000–$500,000 per investor, and limitations on number of LPs.

Post-licensing, you’ll need to establish corporate banking, fund administration, and legal documentation in line with global best practices. Mashreq, ADCB, FAB, and international players like Standard Chartered support licensed DIFC/ADGM entities. You’ll also need a UAE-based Compliance Officer and MLRO. Fund administration can be handled by licensed third parties such as Apex, Maples, or local DFSA/FSRA-approved entities. If your LPs are based in the UK or EU, ensure your fund documents reflect tax neutrality, investor KYC/AML readiness, and exit provisions that align with cross-border regulation. A strong fund admin stack improves credibility with family offices, DFIs, and sovereign LPs.

The UAE offers 0% capital gains and 0% withholding tax for properly structured entities, alongside no personal income tax. Its geopolitical neutrality, time zone positioning, and fast-expanding pool of regional wealth make it an ideal base for UK PE professionals looking to access Middle East, Africa, and South Asia markets. Compared to launching in the UK, where FCA registration is more expensive and heavily taxed, the UAE provides faster regulatory timelines, access to local LPs (including sovereigns), and lower overhead for first-time fund managers. Additionally, Dubai’s personal lifestyle appeal — low tax, premium infrastructure, and family migration options — make it a compelling launchpad.