The regulations, which technically came into force in 2016, require asset managers to register foreign mutual funds for distribution by approved local partners if they wish to sell them to UAE residents.
Officially all funds promoted in the UAE must now be registered with the SCA, and the new rules require fund managers to pay an initial fee of AED35,000 (£7,658, $9,527, €8,986) per fund, plus an annual registration renewal charge of AED7,500.
The fees are fund specific and are incurred for each new fund to be promoted in the UAE.
The new regulations were expected to have a dramatic effect on the number of funds offered on international platforms and within life insurance wrappers, though the industry has to date been awaiting more guidance from the regulator before making any decisions on which funds to register or re-register.
Goldman Sachs range
GSAM has operated in the UAE for over 10 years, focusing on institutional investors and select private banks.
It’s newly-registered fund range includes equity, fixed income, multi asset and alternative investment solutions, drawing on GSAM’s global investment expertise.
Oliver Rahe, GSAM’s head of third party distribution for MEA, said: “The global market volatility and low yield environment underscores the need for established and innovative investment solutions that deliver diversified sources of income and rigorous risk management.
“We are delighted by the approval from the regulator to allow foreign asset managers to register foreign funds and we look forward to meeting the needs of retail investors in the UAE through our range of products.”
Funds offered include the GS US Real Estate Balanced Portfolio, which is a diversified multi-asset fund offering exposure to the US housing market and the GS Global Multi Manager Alternatives Portfolio, an absolute return strategy which provides access to a select range of leading alternative managers.
