The Abu Dhabi Global Market (ADGM) has launched a new regulatory framework for private credit funds.
The new rules issued by the Financial Services Regulatory Authority (FRSA) will allow funds and fund managers based in the ADGM to originate and invest in private credit.
The move comes after neighbouring UAE regulator, the Dubai Financial Services Authority (DFSA), implemented its own framework for private credit funds back in June 2022.
The introduction of the new rules has been welcomed by the legal community in the region, not least because it provides market participants with some much-needed clarity.
According to law firm Morgan Lewis, it is not yet clear whether the FRSA’s approach will “encourage or discourage” the formation of credit funds in the ADGM, “but the new rules will provide welcome clarity on the FSRA’s approach to an increasingly popular asset class”.
At the same time, the UAE government has introduced a cabinet resolution to expand the ADGM’s jurisdiction as a financial free zone based on what it states is increased demand from financial services companies choosing to base offices in Abu Dhabi.
The UAE government has issued a cabinet resolution to expand the jurisdiction of international financial centre Abu Dhabi Global Market (ADGM) as part of its economic vision. The expanded jurisdiction will now include Al Reem Island.
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