CMA Decision No. 9/Chairman of 2016 · UAE Federal
Chairman decision regulating investment funds from 2016, replaced by the Investment Funds Regulation issued by Decision No. 01/Chairman of 2023 and now listed by the CMA among superseded regulations.
Decision No. 9/Chairman of 2016 was the Securities and Commodities Authority's Investment Funds Regulations, the framework for licensing UAE public and private funds and registering foreign funds for promotion. Issued in Abu Dhabi on 6 June 2016 under Federal Law No. 4 of 2000, it took effect the day after publication in the Official Gazette (Article 45) and repealed Board Decision No. 37 of 2012 (Article 42). Later amendments deleted the management company articles (Articles 23 to 32) and added a definition of qualified investor tied to the Regulations Manual of the Financial Activities. It was replaced by the Investment Funds Regulation issued by Decision No. 01/Chairman of 2023, and the Capital Market Authority now lists it among superseded regulations.
Article 2 applied it to investment funds and related parties and excluded joint bank accounts, insurance and employee schemes, reverse solicitation and government funds. Article 3 required a licence, decided within 30 days, before any promotion or subscription; Article 5 gave a licensed fund its own legal personality, with assets ring-fenced for unitholders. Article 9 barred open-ended public funds from lending and limited borrowing to 10% of assets (15% with approval). Article 13 required IFRS accounts, audited half-yearly within 30 days and annually within three months. Article 15 capped a closed-ended fund's exposure to one issuer at 10%, and Article 16 limited its borrowing to 30% of net asset value.
Article 34 required a minimum subscription of AED 180 thousand per investor in a private fund and a 30-business-day licensing decision. Article 35 barred promotion of a foreign fund unless registered with the Authority through a licensed local promoter. Article 40 set warnings, fines, suspension and cancellation.
Public and private investment funds established in the UAE outside the financial free zones, their management companies, founders, boards and related parties, and foreign funds promoted in the UAE through local promoters, between August 2016 and the 2023 replacement.
English official text in 39 articles. Open the full text or jump to a provision:
| Article 2 | Applies to investment funds and related parties; excludes joint bank accounts, group insurance, employee incentive schemes, reverse solicitation initiated by a UAE investor and funds of federal or local government bodies. |
| Article 3 | Fund licence applied for with prospectus and key investor information document; decided within 30 days; no announcement, promotion or subscription before the Authority approves. |
| Article 5 | A licensed fund has its own legal personality and financial liability; its assets secure unitholders' rights and may not be pledged, lent or attached for debts of any other entity. |
| Article 9 | Open-ended public funds may not lend cash and may borrow only up to 10% of assets to buy property or temporarily, or up to 15% with Authority approval. |
| Article 13 | Accounts under IFRS; audited half-yearly reports within 30 days and audited annual report within three months of period end; reports published in Arabic. |
| Article 16 | Closed-ended public fund units are listed and traded, redeemed only as the prospectus states or on termination, and borrowing may not exceed 30% of net asset value. |
| Article 34 | Private fund founded by a licensed manager or qualifying founders; minimum subscription AED 180 thousand per investor; licensing decision within 30 business days; prospectus changes effective five business days after notice. |
| Article 35 | No foreign investment fund may be promoted in the State unless registered with the Authority and contracted with a licensed local promoter; registration renewed annually. |
Article 40 allowed the Authority to warn and order correction, impose a fine up to the maximum in the Law, suspend a licence, approval or registration for up to one year, or cancel it, including a public fund that had not started business within 12 months of licensing. Employees of a self-managed fund faced warning, suspension of up to two months or loss of accreditation.
Funds that our clients' groups launched or invested in between 2016 and 2023 were often formed under this decision, and their prospectuses and constitutional documents still cite it. When we restructure a holding or family vehicle that owns fund units, or a client asks whether its investment club amounts to a fund, we check the documents against the current Investment Funds Regulation that replaced it. Polaris is not licensed by the CMA and does not manage or promote funds. We explain whether an arrangement needs CMA licensing, coordinate with the licensed fund manager or adviser, and keep the investing entity's corporate, UBO and AML records in order.
| Cites | Former Listing of Securities Regulations · Former SCA Law |
“Cites” and “Cited by” are built automatically from references in the full texts held in this library; they cover only instruments in the library.
Investment Funds Regulation
Comprehensive regulation of local investment funds: establishing and licensing public and private funds, fund obligations, unitholder rights, change of fund manager, conv…
Former Promotion and Introduction Regulation
Chairman decision organising the promotion and introduction of financial products, now listed by the CMA among superseded regulations.
Former Investment Management Regulation
Board regulation on investment management, repealed by the Regulations Manual of the Financial Activities issued by Decision No. 13/Chairman of 2021.
Regulations Manual of the Financial Activities (Rulebook)
Issues the Regulations Manual of the Financial Activities (the CMA rulebook): licensing categories and requirements for financial activities, approved jobs, business cond…
Foreign Fund Promotion Status Regularisation
Limits promotion of foreign fund units in the State to private offerings to professional investors and counterparties under the Regulations Manual, and sets the steps exi…
Former SCA Law
Former federal law establishing the Emirates Securities and Commodities Authority and Market and regulating licensing, listing, trading and disclosure in the securities m…
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