9 February 2026 saw the Dubai International Financial Centre (DIFC) formally enact its Variable Capital Company (VCC) Regulations, marking an important milestone both for the jurisdiction and for international asset owners and managers seeking flexible and efficient investment structuring options.
What is the DIFC VCC?
The DIFC VCC is an innovative corporate structure designed to offer flexibility and efficiency to private capital investment managers, family offices and private wealth-holders globally. It provides enhanced governance, streamlined fund administration and multi-jurisdictional structuring, making it a compelling choice for those seeking robust corporate solutions in the region.
Who is the DIFC VCC for?
Dubai’s VCC has been purposebuilt to accommodate a wide range of strategies and investor profiles. Its introduction is expected to generate strong interest from single and multifamily offices, private investment companies and institutional investors seeking:
- Scalable multiasset or multistrategy structures
- Ringfenced investment portfolios for different family branches or objectives
- Efficient crossborder asset consolidation
- Lowercost, lightly regulated proprietary investment vehicles
- Access to the DIFC’s common-law foundation, global connectivity and proven track record in financial regulation
Key features and benefits of the DIFC VCC
The DIFC VCC’s defining feature is its ability to operate as either a standalone entity or an umbrella structure with legally segregated subfunds (cells). This design provides significant benefits for fund managers and private wealth clients who require consolidation, scalability and clear risk separation.
Other notable features include:
- Variable capital, with share capital tied to the net asset value (NAV)
- Ease of share issuance and redemption, suitable for openended strategies
- Distributions payable from capital, supporting enhanced liquidity management
- Strong asset ringfencing, ensuring separation of assets and liabilities across cells
- Reduced procedural requirements for faster formation and simplified administration
What are the regulatory requirements?
A key advantage for private wealth owners and family offices is that VCCs set up solely for proprietary investment purposes do not require authorisation from the Dubai Financial Services Authority (DFSA). This offers a costeffective and operationally efficient alternative to fully regulated fund structures.
Where the VCC is used to conduct regulated financial services, such as managing a collective investment scheme for thirdparty investors, DFSA approval will be required in line with existing regulatory expectations.
All VCCs must appoint a corporate service provider (CSP) unless they are controlled by certain DIFCregistered or authorised entities, ensuring governance standards are maintained from inception onwards.
Contact us to discuss the DIFC VCC
At IQ-EQ, we’ve been closely involved in the evolution of VCC structures globally, including in Singapore, and we welcome the introduction of the VCC framework within the DIFC. With our established presence in the UAE and deep experience supporting asset owners and managers across the Middle East, we’re well positioned to assist clients in evaluating and adopting the VCC for their investment and family office needs.
Our services include:
- VCC establishment and corporate secretarial support
- CSP services in line with DIFC requirements
- Fund administration, accounting and NAV oversight
- Governance and compliance support
- Multijurisdictional structuring for families and private capital investors
To explore how the DIFC VCC could support your investment or family office objectives, please contact our team here or using the team details below. We’d be delighted to discuss your requirements and help you assess the most effective structure for your needs.
