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February 25, 2026
The Dubai International Financial Centre (“DIFC”) has introduced new Variable Capital Company (“VCC”) Regulations, introducing a flexible vehicle aimed at enhancing investment structuring and asset management options within the centre. The VCC regime provides asset managers, family offices, private equity firms, and institutional investors with a modern and adaptable structure tailored to meet evolving market needs. By introducing greater operational and capital flexibility, the regulations aim to strengthen investor confidence while supporting a dynamic and growth-oriented financial ecosystem within DIFC.
Commenting on the development, Jacques Visser, chief legal officer, DIFC Authority, said:
“DIFC Authority is excited to announce the enactment of its Variable Capital Company Regulations. The Variable Capital Company Regulations advance DIFC’s position as a global hub for sophisticated investment structures. The VCC regime also caters to a wide spectrum of applicants, supported by Corporate Service Providers to ensure strong compliance and operational integrity across the sector.”
A VCC may be established either as a standalone investment vehicle or as an umbrella structure. The VCC structure allows share capital to vary in accordance with the company’s net asset value (NAV). This enables subscriptions and redemptions to be processed more efficiently and permits distributions to be paid out of capital, subject to NAV-based valuation mechanisms. Such flexibility aligns the corporate structure more closely with the operational realities of investment funds.
The introduction of the VCC regime reflects DIFC’s continued efforts to innovate and remain competitive among leading global financial centres. By offering a structure that combines regulatory oversight with operational flexibility, DIFC aims to attract a broader spectrum of fund sponsors and asset managers seeking a robust yet adaptable investment platform. With the enactment of the VCC Regulations, DIFC expands its suite of corporate and fund vehicles, reinforcing its reputation as a jurisdiction capable of accommodating complex, cross-border investment strategies within a well-regulated environment.
