SCA Updates – Public Offering of Foreign Funds in the UAE – Extension of the Grace Period

The Securities and Commodities Authority of the United Arab Emirates (“SCA”) has announced that the grace period granted to foreign funds registered with SCA for a public offering has now been extended to 31 March 2024, provided that such foreign funds were registered with SCA for a public offering on or before 31 December 2022.

Fund managers will be required to submit an application to SCA and pay the renewal fees on a pro rata basis up to 31 March 2024.

In January, SCA prohibited foreign funds from being publicly offered in the UAE but granted a grace period until 30 June 2023 for foreign funds that were already registered with SCA for a public offer, subject to certain conditions.

Foreign funds that were not registered with SCA for a public offering on or before 31 December 2022 may no longer be registered for a public offering. Except as noted above, foreign funds may only be promoted in the UAE on a private placement basis to Professional Investors and must be registered with SCA for a private offering.
 

More from Dechert

1. SCA Updates Regulations – Marketing Foreign Funds in the UAE Onpoint can be found here.

2. SCA Updates: Marketing Cayman Funds in the UAE OnPoint can be found here.