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The United Arab Emirates features a dual-track judicial structure that governs employment relationships: the Federal jurisdiction (Mainland) regulated by Federal Decree-Law No. (33) of 2021 Concerning the Regulation of Labour Relations, and the independent Common Law jurisdiction of financial free zones, represented by the DIFC Employment Law No. (2) of 2019. This guide delineates the fundamental statutory differences to support multinational corporations, small- and medium-s

The growth of private wealth, family businesses and international investment structures in the UAE has increased the need for effective mechanisms to hold assets, manage succession and establish long-term governance arrangements. The Dubai International Financial Centre (“DIFC”) Foundation is one such structure. Established under the DIFC Foundations Law No. 3 of 2018 (the “Foundations Law”), a Foundation is a separate legal entity that may hold assets, pursue specified objec

The Dubai International Financial Centre Authority (DIFCA) has issued a consolidated update to the Prescribed Company Regulations (Consolidated Version No. 5), which took effect on 24 July 2026. For founders, investors, and groups using DIFC holding structures, here's a short, practical summary of what the regime requires. What Is a Prescribed Company? A DIFC Prescribed Company (PC) is a special-purpose holding vehicle incorporated under Article 132 of the DIFC Companies Law.

The DIFC has introduced a new corporate structure for proprietary investments designed to provide greater flexibility for investment holding, asset segregation and multi-vehicle structures. The Variable Capital Company (“VCC”) regime, introduced under the DIFC Variable Capital Company Regulations 2026 (the “VCC Regulations”), allows a private company to operate with variable share capital and, where required, establish multiple cells within a single corporate framework. The s

Companies established in the UAE mainland, UAE free zones and the Dubai International Financial Centre (DIFC) face overlapping but not identical compliance obligations. The central question is usually whether the entity must prepare annual financial statements, obtain an annual audit, or both. The answer depends on the legal form, the licensing authority, the business activity, and, in some cases, the company’s tax position and constitutional documents. As a working rule, eve

Setting Up in the DIFC: Choosing the Right Corporate Structure for Your Business and Investments The Dubai International Financial Centre (“DIFC”) has developed into one of the leading financial and business centres in the region, providing companies, investors and families with access to an independent common law legal system, internationally recognized courts and a broad range of corporate structures. While the DIFC was originally established primarily as a financial centre

On 7 July 2026, the Dubai Financial Services Authority (DFSA) published Consultation Paper No. 173, proposing what is arguably the most significant reform of the DIFC Collective Investment Funds framework since the regime was comprehensively reviewed in 2010. The proposals reflect the substantial evolution of the DIFC funds and asset management industry and mark a broader shift towards a more flexible, risk-based and disclosure-focused regulatory framework. Some of the ke