​​How to Set up an Asset Management Company in Dubai?

Dubai, in the United Arab Emirates, is a Middle Eastern success story of fortunes, creativity, and job opportunities. Thus, it has become an attraction for business people and investors worldwide due to the dynamic business climate, favorable location, and liberal policies. In the last three years, the Emirate of Dubai has solidified as one of the wanted hubs for growing and matured fintech composed of many domestic and global players trying to disrupt the financial services market. Thus, embracing new technologies and bolstering the economic infrastructure, there has never been a better time to register an asset management company in Dubai, United Arab Emirates.

As a result, Dubai has been able to achieve a lot in terms of transforming into a healthy enrichment fintech hub by observing some of these trends and developments. Thus, a Gulf Business article revealed that Dubai is actively developing its fintech center, as it already promotes cooperation, inspires innovation, and offers favorable conditions for fintech startups.

What is an Asset Management Company?

To begin with the steps on how to start this business we first have to understand what an asset management company (AMC) is and what the company’s responsibilities are.

Asset management on the other hand is the system by which the properties or tangible resources of the business are maintained in the best condition they can prove for many coming years. It is initiated within a company and the business’s assets are some of the most valuable assets in this approach.

In the management of an asset, there is a need to appreciate an asset’s life cycle and understand the hazards of holding an asset for management. The lifecycle of an asset is:

• Buy it, earn on it, use it, and sell it. It follows that the cycle goes on and on.
• An asset management company in Dubai can perform the following activities:
• It helps businessmen who want to establish investment companies in Dubai.
• It aids entrepreneurs to invest in many aspects of interest based on market trends.
• The benefits of having an asset management company in Dubai are looked at by the permissible local and foreign businessmen who want to establish investment funds or get help in this area. An organization of this nature deals directly with foreign investors who require such a service for their investment in other countries and other distinctive properties.
• It understands the methods of operating various investment securities based on the instructions provided by the beneficiaries.
• This is how an investment fund manager impacts his/her experience as well as the solutions used for an investment fund regarding the returns that it gets. Consequently, it is established that an appropriate investment fund analysis coupled with successful implementation earns better capacity and returns in the long run.
• The first action of the asset company is risk identification in the field of investment before it engages in any activity.
• Before any activity connected with investment funds, AMC has market research. The final decision as to whether some of this investment should be made or not is for the fund manager to make.

Requirements for Getting the Asset Management Company License in UAE

Starting the process of introducing investing and financial firms in the UAE can be a challenging process. This part describes the basic conditions for obtaining an investment business license in Dubai, highlighting the imperative need for the consultant. The legal framework that prescribes the operations of investment companies in the UAE demands an appreciation of financial, legal, and compliance issues.

Certain requirements are as follows; minimum share capital of one million UAE dirhams, one UAE national director, and a trade license from the respective government. It is at this stage that specialized help is needed to deal with these standards and their compliance to keep from hitting a catastrophic wall. Thus, the involvement of such specialists who know the rules in the UAE is crucial for the proper and legal launch of an investment company in Dubai.

How can I get a license for Investment and finance companies in the UAE?

Here are the stages to obtaining a license for an asset management company in Dubai:

1. Select the proper jurisdiction

Some of the EEA and other economic zones and emirates in the mainland UAE provide investment and finance licenses. Some specific rules and plans are required to be followed in each jurisdiction so it is necessary to choose the best for your company.

2. Register your business

To carry out the chosen business, it is necessary to incorporate the company in the selected jurisdiction and register it with the corresponding legislation. In most cases, one has to fill out an application form provide proof of identity/ residence, and pay application fees.

3. Obtain a license

After registering the business one receives the license from the right department or legal body. Licensing procedure also differs from one jurisdiction to the other but usually involves the following factors; application, and proofs of solvency, among others.

4. Adhere to regulations

It is noteworthy that upon getting the license, one is expected to follow the legal provisions set by the government. Among the requirements of a corporation is to pay taxes, file reports annually and ensure compliance at all costs.

Benefits of Asset Management Company in Dubai

The following are some advantages that your company can experience from doing asset management:

• Enhances the organization’s reputation.
• Little variable cost with regards to operation cost and capital cost.
• Minimizes the impact of the assets on the environment to a negative scale.
• Enhances the firm’s health of assets which in turn increases its useful life.
• Little rises were associated with the running of assets.
• Enhances the sector and the organization’s overall observance of the legal requirements.

The Criteria of Choosing Appropriate Free Zone

It is essential to understand the free zones when starting an investment company in Dubai to select the right one for the business. Free zones provide many advantages and are designated for the financial and investment sectors.

1. Dubai International Financial Centre (DIFC)

The DIFC is globally accredited as a premier financial city characterized by; advanced facilities, favorable legal structures and sound legal environment. Through it various business group, it provides diverse financial services like asset management, private equity and wealth management. The DIFC sustained in a business-friendly environment where all the top-notch financial institutions and international professionals thrive to be part of.

2. Abu Dhabi Global Market (ADGM):

The ADGM is one of the well-known free zones that surround the capital city of the United Arab Emirates that offers a good place for investment companies. This company is strategically focused on various forms of financial management and processing including; fund management, asset servicing, financial advisory services and innovations. The ADGM has particularly earned immense reputation for its creativity, strict regulations, and a wide pool of investors.

3. International Freezone Authority (IFZA):

Hence, if investments are related to foreign investment or if a company is to become a shareholder of a UAE mainland company, a company registered in IFZA free trade zone that is specially designed for international trade and investment would adequately suit such purposes.

It is also evident that UAE is one of the most preferable countries for investment and finance businesses. The country has many advantages which include it has a stable economy has competent human resource, and the position of the country is strategic.

Cost of Establishing an Asset Management Company in Dubai.

The cost of founding an asset management company in Dubai ranges from AED 21,000 to AED 350,000. The expenses vary greatly depending on a number of crucial aspects, including the size of the business, the chosen jurisdiction (Mainland or Free Zone), and the unique operational requirements. To help you understand the financial commitment required, below is a breakdown of the probable costs associated with starting an asset management firm in this dynamic city:

Initial Investment Costs:

• Licensing and registration: The key fundamental of entering any business form in Dubai is to acquire the appropriate trade license for the asset management company. The fees differ with respect to the type of license required, and the legal structure of the company as a free zone entity or a Mainland entity. Normally, the licensing fees may go up to a range starting from AED 10,000 up to AED 60,000.
  
• Premises: Another requirement found in some legal zones of Dubai is the need to have a physical office. The cost depends with the area and size of the office. Business-friendly districts afford a small office for an annual rent of, at least, AED 30 000.
  
• Legal and consultancy fees: Hiring the services of professionals in legal matters as well as in the establishment of businesses is highly advised. Normally, these fees range from a AED 15,000 to AED 40,000 depending on the services needed.

Ongoing Operational Costs:

• Staffing: To maximize profits asset management company should have a team of professionals. The cost factor here depends on the staff; qualifications of the staff and number of staffs. If it is a foundational team, possible annual costs may be around AED 250,000.
  
• Utilities and maintenance: Internet and electricity expenses for the offices will be around AED 3000 to AED 6000 depending on the size of the offices and the extent of utilization. Self-managed premises may also be required to pay several other charges namely; Maintenance fees will however, vary depending on the specifics of the premises.
  
• Technology and equipment: AM firms need to have a strong IT support to function effectively, consisting of the IT software aimed at AM, adequate security, and efficient IT equipment. At this stage, some of the costs may include furniture, fixtures and equipment which may cost between AED 30,000 to AED 150,000.

The cost of setting up an asset management company in Dubai is steep, which is due to the status of Dubai as an emerging international financial city. Nevertheless, the favorable stand of Dubai for regulatory frame, geostrategic position and their status as the entrance to the emerging markets open large opportunities for asset management firms to grow laurels and net incomes. Bizdaddy can offer detailed information on financial strategies that will be consultations for these businessmen for their new found interest in Dubai’s asset management industry.

FAQs

Can I start Own Asset Management Company in Dubai?

Absolutely, it is possible to open your own asset management company in Dubai, UAE. So just stick to the outlined procedure of asset company formation presented in our article and you will soon be running your business.

What must one do to be an asset management company in Dubai?

In this hull, we have outlined how you would set up your asset management company in Dubai. Follow the whole process to start with your new business.

What are the procedures of forming a fund in Dubai?

Dubai is also next to start a fund through a standard procedure that is explained next. Depending on the nature of the scheme you have, you can opt to open either public funds in Dubai or an exempt fund.

What strategy do I begin with for asset management company in Dubai?

You can commence your asset management company either in the mainland or in the free zone of Dubai.

What are three techniques that are applied when it comes to the management of assets?

Following are the methods that are used to manage asset management:Following are the methods that are used to manage asset management:

• Cloud-based software
• Auditing assets
• Data reports
  

Setup an Asset Management Company in Dubai with Bizdaddy

The above elucidates on how to establish an Asset Management Company in Dubai so this is all that we have for you. The process to do so is very much simple and anyone can do it once they get the information ab themselves and the guidelines provided.

If the above information has left you a little bit confused or if you are in need of help, you can get in touch with experienced company formation services in Dubai such as Bizdaddy. Contact our business setup consultants today to help you in really starting your asset management company in the UAE. Thus, don’t wait for the chance to initiate your new asset management firm in Dubai and register for the free slot at this early stage.